☒ | 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 Symbol | Name of each exchange | ||
Class A Common Stock, par value $.001 per share | GNW | New York Stock Exchange |
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Item 4. | 145 | |||||
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Item 6. | ||||||
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Investments: | ||||||||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $52,280 and $52,611 and allowance for credit losses of $0 as of March 31, 2022 and December 31, 2021) | $ | 55,027 | $ | 60,480 | ||||||||||||
Fixed maturity securities available-for-sale, 51,248 and $52,611 and allowance for credit losses of $— as of June 30, 2022 and December 31, 2021) | $ | 49,286 | $ | 60,480 | ||||||||||||
Equity securities, at fair value | 230 | 198 | 243 | 198 | ||||||||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4 as of March 31, 2022 and December 31, 2021) | 6,938 | 6,856 | ||||||||||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4 as of June 30, 2022 and December 31, 2021) | 7,088 | 6,856 | ||||||||||||||
Less: Allowance for credit losses | (25 | ) | (26 | ) | (23 | ) | (26 | ) | ||||||||
Commercial mortgage loans, net | 6,913 | 6,830 | 7,065 | 6,830 | ||||||||||||
Policy loans | 2,028 | 2,050 | 2,178 | 2,050 | ||||||||||||
Limited partnerships | 2,007 | 1,900 | 2,123 | 1,900 | ||||||||||||
Other invested assets | 671 | 820 | 573 | 820 | ||||||||||||
Total investments | 66,876 | 72,278 | 61,468 | 72,278 | ||||||||||||
Cash, cash equivalents and restricted cash | 1,291 | 1,571 | 1,724 | 1,571 | ||||||||||||
Accrued investment income | 696 | 647 | 553 | 647 | ||||||||||||
Deferred acquisition costs | 1,310 | 1,146 | 2,314 | 1,146 | ||||||||||||
Intangible assets | 159 | 143 | 236 | 143 | ||||||||||||
Reinsurance recoverable | 16,821 | 16,868 | 16,691 | 16,868 | ||||||||||||
Less: Allowance for credit losses | (57 | ) | (55 | ) | (60 | ) | (55 | ) | ||||||||
Reinsurance recoverable, net | 16,764 | 16,813 | 16,631 | 16,813 | ||||||||||||
Other assets | 440 | 388 | 412 | 388 | ||||||||||||
Deferred tax asset | 421 | 119 | 1,047 | 119 | ||||||||||||
Separate account assets | 5,530 | 6,066 | 4,683 | 6,066 | ||||||||||||
Total assets | $ | 93,487 | $ | 99,171 | $ | 89,068 | $ | 99,171 | ||||||||
Liabilities and equity | ||||||||||||||||
Liabilities: | ||||||||||||||||
Future policy benefits | $ | 38,897 | $ | 41,528 | $ | 38,133 | $ | 41,528 | ||||||||
Policyholder account balances | 18,197 | 19,354 | 17,907 | 19,354 | ||||||||||||
Liability for policy and contract claims | 11,833 | 11,841 | 11,915 | 11,841 | ||||||||||||
Unearned premiums | 639 | 672 | 614 | 672 | ||||||||||||
Other liabilities | 1,416 | 1,511 | 1,468 | 1,511 | ||||||||||||
Long-term borrowings | 1,819 | 1,899 | 1,773 | 1,899 | ||||||||||||
Separate account liabilities | 5,530 | 6,066 | 4,683 | 6,066 | ||||||||||||
Liabilities related to discontinued operations | 4 | 34 | 4 | 34 | ||||||||||||
Total liabilities | 78,335 | 82,905 | 76,497 | 82,905 | ||||||||||||
Commitments and contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Equity: | ||||||||||||||||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 598 million and 596 million shares issued as of March 31, 2022 and December 31, 2021, respectively; 510 million and 508 million shares outstanding as of March 31, 2022 and December 31, 2021, respectively | 1 | 1 | ||||||||||||||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 600 million and 596 million shares issued as of June 30, 2022 and December 31, 2021, respectively; 508 million shares outstanding as of June 30, 2022 and December 31, 2021 | 1 | 1 | ||||||||||||||
Additional paid-in capital | 11,857 | 11,858 | 11,859 | 11,858 | ||||||||||||
Accumulated other comprehensive income (loss) | 2,610 | 3,861 | (145 | ) | 3,861 | |||||||||||
Retained earnings | 2,639 | 2,490 | 2,820 | 2,490 | ||||||||||||
Treasury stock, at cost (88 million shares as of March 31, 2022 and December 31, 2021) | (2,700 | ) | (2,700 | ) | ||||||||||||
Treasury stock, at cost (92 million and 88 million shares as of June 30, 2022 and December 31, 2021, respectively) | (2,715 | ) | (2,700 | ) | ||||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 14,407 | 15,510 | 11,820 | 15,510 | ||||||||||||
Noncontrolling interests | 745 | 756 | 751 | 756 | ||||||||||||
Total equity | 15,152 | 16,266 | 12,571 | 16,266 | ||||||||||||
Total liabilities and equity | $ | 93,487 | $ | 99,171 | $ | 89,068 | $ | 99,171 | ||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Premiums | $ | 931 | $ | 968 | $ | 927 | $ | 947 | $ | 1,858 | $ | 1,915 | ||||||||||||
Net investment income | 764 | 801 | 787 | 844 | 1,551 | 1,645 | ||||||||||||||||||
Net investment gains (losses) | 28 | 33 | 8 | 70 | 36 | 103 | ||||||||||||||||||
Policy fees and other income | 169 | 183 | 159 | 180 | 328 | 363 | ||||||||||||||||||
Total revenues | 1,892 | 1,985 | 1,881 | 2,041 | 3,773 | 4,026 | ||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||
Benefits and other changes in policy reserves | 1,139 | 1,218 | 764 | 1,161 | 1,903 | 2,379 | ||||||||||||||||||
Interest credited | 125 | 131 | 125 | 127 | 250 | 258 | ||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 271 | 275 | 589 | 304 | 860 | 579 | ||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 92 | 77 | 84 | 86 | 176 | 163 | ||||||||||||||||||
Interest expense | 26 | 51 | 26 | 43 | 52 | 94 | ||||||||||||||||||
Total benefits and expenses | 1,653 | 1,752 | 1,588 | 1,721 | 3,241 | 3,473 | ||||||||||||||||||
Income from continuing operations before income taxes | 239 | 233 | 293 | 320 | 532 | 553 | ||||||||||||||||||
Provision for income taxes | 58 | 59 | 73 | 75 | 131 | 134 | ||||||||||||||||||
Income from continuing operations | 181 | 174 | 220 | 245 | 401 | 419 | ||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (2 | ) | 21 | (1 | ) | (5 | ) | (3 | ) | 16 | ||||||||||||||
Net income | 179 | 195 | 219 | 240 | 398 | 435 | ||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 30 | 0 | 38 | — | 68 | — | ||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 8 | — | — | — | 8 | ||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 149 | $ | 187 | $ | 181 | $ | 240 | $ | 330 | $ | 427 | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 151 | $ | 174 | $ | 182 | $ | 245 | $ | 333 | $ | 419 | ||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | (2 | ) | 13 | (1 | ) | (5 | ) | (3 | ) | 8 | ||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 149 | $ | 187 | $ | 181 | $ | 240 | $ | 330 | $ | 427 | ||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.35 | $ | 0.36 | $ | 0.48 | $ | 0.65 | $ | 0.83 | ||||||||||||
Diluted | $ | 0.29 | $ | 0.34 | $ | 0.36 | $ | 0.47 | $ | 0.65 | $ | 0.82 | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.37 | $ | 0.36 | $ | 0.47 | $ | 0.65 | $ | 0.84 | ||||||||||||
Diluted | $ | 0.29 | $ | 0.37 | $ | 0.35 | $ | 0.47 | $ | 0.64 | $ | 0.83 | ||||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||
Basic | 508.3 | 506.0 | 509.0 | 507.0 | 508.6 | 506.5 | ||||||||||||||||||
Diluted | 517.4 | 513.8 | 514.2 | 515.0 | 515.8 | 514.4 | ||||||||||||||||||
Three months ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
Net income | $ | 179 | $ | 195 | ||||
Other comprehensive income (loss), net of taxes: | ||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (1,051 | ) | (322 | ) | ||||
Net unrealized gains (losses) on securities with an allowance for credit losses | 0 | 2 | ||||||
Derivatives qualifying as hedges | (236 | ) | (419 | ) | ||||
Foreign currency translation and other adjustments | (5 | ) | 136 | |||||
Total other comprehensive income (loss) | (1,292 | ) | (603 | ) | ||||
Total comprehensive loss | (1,113 | ) | (408 | ) | ||||
Less: comprehensive income (loss) attributable to noncontrolling interests | (11 | ) | 155 | |||||
Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders | $ | (1,102 | ) | $ | (563 | ) | ||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Net income | $ | 219 | $ | 240 | $ | 398 | $ | 435 | ||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (2,432 | ) | (58 | ) | (3,483 | ) | (380 | ) | ||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | — | 4 | — | 6 | ||||||||||||
Derivatives qualifying as hedges | (344 | ) | 211 | (580 | ) | (208 | ) | |||||||||
Foreign currency translation and other adjustments | (7 | ) | 2 | (12 | ) | 138 | ||||||||||
Total other comprehensive income (loss) | (2,783 | ) | 159 | (4,075 | ) | (444 | ) | |||||||||
Total comprehensive income (loss) | (2,564 | ) | 399 | (3,677 | ) | (9 | ) | |||||||||
Less: comprehensive income (loss) attributable to noncontrolling interests | 10 | — | (1 | ) | 155 | |||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (2,574 | ) | $ | 399 | $ | (3,676 | ) | $ | (164 | ) | |||||
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022 | $ | 1 | $ | 11,857 | $ | 2,610 | $ | 2,639 | $ | (2,700 | ) | $ | 14,407 | $ | 745 | $ | 15,152 | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 181 | — | 181 | 38 | 219 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | (2,755 | ) | — | — | (2,755 | ) | (28 | ) | (2,783 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | (2,574 | ) | 10 | (2,564 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (15 | ) | (15 | ) | — | (15 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 2 | — | — | — | 2 | — | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of June 30, 2022 | $ | 1 | $ | 11,859 | $ | (145 | ) | $ | 2,820 | $ | (2,715 | ) | $ | 11,820 | $ | 751 | $ | 12,571 | ||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Three months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Genworth | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | Financial, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | other | Treasury | Inc.’s | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common | paid-in | comprehensive | Retained | stock, at | stockholders’ | Noncontrolling | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
stock | capital | income (loss) | earnings | cost | equity | interests | equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2021 | $ | 1 | $ | 11,858 | $ | 3,861 | $ | 2,490 | $ | (2,700 | ) | $ | 15,510 | $ | 756 | $ | 16,266 | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of March 31, 2021 | $ | 1 | $ | 12,011 | $ | 3,675 | $ | 1,771 | $ | (2,700 | ) | $ | 14,758 | $ | — | $ | 14,758 | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 149 | 0 | 149 | 30 | 179 | — | — | — | 240 | — | 240 | — | 240 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | 0 | 0 | (1,251 | ) | 0 | 0 | (1,251 | ) | (41 | ) | (1,292 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive loss | (1,102 | ) | (11 | ) | (1,113 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | 159 | — | — | 159 | — | 159 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | 399 | — | 399 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | (1 | ) | 0 | 0 | 0 | (1 | ) | 0 | (1 | ) | — | 7 | — | — | — | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||
Balances as of March 31, 2022 | $ | 1 | $ | 11,857 | $ | 2,610 | $ | 2,639 | $ | (2,700 | ) | $ | 14,407 | $ | 745 | $ | 15,152 | |||||||||||||||||||||||||||||||||||||||||||||||
Balances as of June 30, 2021 | $ | 1 | $ | 12,018 | $ | 3,834 | $ | 2,011 | $ | (2,700 | ) | $ | 15,164 | $ | — | $ | 15,164 | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Genworth | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated | Financial, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | other | Treasury | Inc.’s | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common | paid-in | comprehensive | Retained | stock, at | stockholders’ | Noncontrolling | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
stock | capital | income (loss) | earnings | cost | equity | interests | 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 | 187 | 0 | 187 | 8 | 195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | 0 | 0 | (750 | ) | 0 | 0 | (750 | ) | 147 | (603 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | (563 | ) | 155 | (408 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other | 0 | 3 | 0 | 0 | 0 | 3 | 0 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of March 31, 2021 | $ | 1 | $ | 12,011 | $ | 3,675 | $ | 1,771 | $ | (2,700 | ) | $ | 14,758 | $ | 0 | $ | 14,758 | |||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||
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, 2021 | $ | 1 | $ | 11,858 | $ | 3,861 | $ | 2,490 | $ | (2,700 | ) | $ | 15,510 | $ | 756 | $ | 16,266 | |||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 330 | — | 330 | 68 | 398 | ||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | (4,006 | ) | — | — | (4,006 | ) | (69 | ) | (4,075 | ) | ||||||||||||||||||||
Total comprehensive loss | (3,676 | ) | (1 | ) | (3,677 | ) | ||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | — | — | — | — | (15 | ) | (15 | ) | — | (15 | ) | |||||||||||||||||||||
Dividends to noncontrolling interests | — | — | — | — | — | — | (4 | ) | (4 | ) | ||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 1 | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||
Balances as of June 30, 2022 | $ | 1 | $ | 11,859 | $ | (145 | ) | $ | 2,820 | $ | (2,715 | ) | $ | 11,820 | $ | 751 | $ | 12,571 | ||||||||||||||
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 | — | — | — | — | — | — | (657 | ) | (657 | ) | ||||||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 427 | — | 427 | 8 | 435 | ||||||||||||||||||||||||
Other comprehensive income (loss), net of taxes | — | — | (591 | ) | — | — | (591 | ) | 147 | (444 | ) | |||||||||||||||||||||
Total comprehensive income (loss) | (164 | ) | 155 | (9 | ) | |||||||||||||||||||||||||||
Stock-based compensation expense and exercises and other | — | 10 | — | — | — | 10 | — | 10 | ||||||||||||||||||||||||
Balances as of June 30, 2021 | $ | 1 | $ | 12,018 | $ | 3,834 | $ | 2,011 | $ | (2,700 | ) | $ | 15,164 | $ | — | $ | 15,164 | |||||||||||||||
Three months ended | ||||||||
March 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from (used by) operating activities: | ||||||||
Net income | $ | 179 | $ | 195 | ||||
Less (income) loss from discontinued operations, net of taxes | 2 | (21 | ) | |||||
Adjustments to reconcile net income to net cash used by operating activities: | ||||||||
Amortization of fixed maturity securities discounts and premiums | (34 | ) | (32 | ) | ||||
Net investment (gains) losses | (28 | ) | (33 | ) | ||||
Charges assessed to policyholders | (150 | ) | (159 | ) | ||||
Acquisition costs deferred | (2 | ) | (2 | ) | ||||
Amortization of deferred acquisition costs and intangibles | 92 | 77 | ||||||
Deferred income taxes | 57 | 59 | ||||||
Derivative instruments, limited partnerships and other | (105 | ) | (113 | ) | ||||
Stock-based compensation expense | 10 | 11 | ||||||
Change in certain assets and liabilities: | ||||||||
Accrued investment income and other assets | (43 | ) | (58 | ) | ||||
Insurance reserves | 249 | 326 | ||||||
Current tax liabilities | 0 | (4 | ) | |||||
Other liabilities, policy and contract claims and other policy-related balances | (289 | ) | (319 | ) | ||||
Cash used by operating activities — discontinued operations | (30 | ) | (174 | ) | ||||
Net cash used by operating activities | (92 | ) | (247 | ) | ||||
Cash flows from (used by) investing activities: | ||||||||
Proceeds from maturities and repayments of investments: | ||||||||
Fixed maturity securities | 730 | 1,031 | ||||||
Commercial mortgage loans | 115 | 129 | ||||||
Limited partnerships and other invested assets | 51 | 44 | ||||||
Proceeds from sales of investments: | ||||||||
Fixed maturity and equity securities | 581 | 777 | ||||||
Purchases and originations of investments: | ||||||||
Fixed maturity and equity securities | (969 | ) | (1,647 | ) | ||||
Commercial mortgage loans | (197 | ) | (142 | ) | ||||
Limited partnerships and other invested assets | (137 | ) | (91 | ) | ||||
Short-term investments, net | (50 | ) | 28 | |||||
Policy loans, net | 14 | 3 | ||||||
Proceeds from sale of business, net of cash transferred | 0 | 270 | ||||||
Cash used by investing activities — discontinued operations | 0 | (67 | ) | |||||
Net cash from investing activities | 138 | 335 | ||||||
Cash flows from (used by) financing activities: | ||||||||
Deposits to universal life and investment contracts | 159 | 176 | ||||||
Withdrawals from universal life and investment contracts | (418 | ) | (578 | ) | ||||
Repayment and repurchase of long-term debt | (82 | ) | (470 | ) | ||||
Other, net | 15 | 92 | ||||||
Net cash used by financing activities | (326 | ) | (780 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $0 and $(1) related to discontinued operations) | 0 | 0 | ||||||
Net change in cash, cash equivalents and restricted cash | (280 | ) | (692 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 1,571 | 2,656 | ||||||
Cash, cash equivalents and restricted cash at end of period | 1,291 | 1,964 | ||||||
Less cash, cash equivalents and restricted cash of discontinued operations at end of period | 0 | 0 | ||||||
Cash, cash equivalents and restricted cash of continuing operations at end of period | $ | 1,291 | $ | 1,964 | ||||
Six months ended June 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from (used by) operating activities: | ||||||||
Net income | $ | 398 | $ | 435 | ||||
Less (income) loss from discontinued operations, net of taxes | 3 | (16 | ) | |||||
Adjustments to reconcile net income to net cash from operating activities: | ||||||||
Amortization of fixed maturity securities discounts and premiums | (84 | ) | (80 | ) | ||||
Net investment (gains) losses | (36 | ) | (103 | ) | ||||
Charges assessed to policyholders | (292 | ) | (317 | ) | ||||
Acquisition costs deferred | (1 | ) | (3 | ) | ||||
Amortization of deferred acquisition costs and intangibles | 176 | 163 | ||||||
Deferred income taxes | 128 | 132 | ||||||
Derivative instruments, limited partnerships and other | (163 | ) | (189 | ) | ||||
Stock-based compensation expense | 20 | 25 | ||||||
Change in certain assets and liabilities: | ||||||||
Accrued investment income and other assets | (70 | ) | (69 | ) | ||||
Insurance reserves | 494 | 507 | ||||||
Current tax liabilities | — | (4 | ) | |||||
Other liabilities, policy and contract claims and other policy-related balances | (205 | ) | (60 | ) | ||||
Cash used by operating activities—discontinued operations | (31 | ) | (192 | ) | ||||
Net cash from operating activities | 337 | 229 | ||||||
Cash flows from (used by) investing activities: | ||||||||
Proceeds from maturities and repayments of investments: | ||||||||
Fixed maturity securities | 1,495 | 2,220 | ||||||
Commercial mortgage loans | 314 | 392 | ||||||
Limited partnerships and other invested assets | 99 | 107 | ||||||
Proceeds from sales of investments: | ||||||||
Fixed maturity and equity securities | 1,302 | 1,306 | ||||||
Purchases and originations of investments: | ||||||||
Fixed maturity and equity securities | (1,800 | ) | (2,868 | ) | ||||
Commercial mortgage loans | (568 | ) | (531 | ) | ||||
Limited partnerships and other invested assets | (297 | ) | (240 | ) | ||||
Short-term investments, net | (24 | ) | (76 | ) | ||||
Policy loans, net | 14 | 28 | ||||||
Proceeds from sale of business, net of cash transferred | — | 270 | ||||||
Cash used by investing activities—discontinued operations | — | (67 | ) | |||||
Net cash from investing activities | 535 | 541 | ||||||
Cash flows from (used by) financing activities: | ||||||||
Deposits to universal life and investment contracts | 314 | 349 | ||||||
Withdrawals from universal life and investment contracts | (779 | ) | (1,143 | ) | ||||
Repayment and repurchase of long-term debt | (130 | ) | (484 | ) | ||||
Dividends paid to noncontrolling interests | (4 | ) | — | |||||
Treasury stock acquired in connection with share repurchases | (15 | ) | — | |||||
Other, net | (105 | ) | 65 | |||||
Net cash used by financing activities | (719 | ) | (1,213 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $— and $(1) related to discontinued operations) | — | 1 | ||||||
Net change in cash, cash equivalents and restricted cash | 153 | (442 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 1,571 | 2,656 | ||||||
Cash, cash equivalents and restricted cash at end of period | 1,724 | 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 | $ | 1,724 | $ | 2,214 | ||||
Three months ended | ||||||||
March 31, | ||||||||
(Amounts in millions, except per share amounts) | 2022 | 2021 | ||||||
Weighted-average shares used in basic earnings per share calculations | 508.3 | 506.0 | ||||||
Potentially dilutive securities: | ||||||||
Stock options, restricted stock units and other equity-based compensation | 9.1 | 7.8 | ||||||
Weighted-average shares used in diluted earnings per share calculations | 517.4 | 513.8 | ||||||
Income from continuing operations: | ||||||||
Income from continuing operations | $ | 181 | $ | 174 | ||||
Less: net income from continuing operations attributable to noncontrolling interests | 30 | 0 | ||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 151 | $ | 174 | ||||
Basic per share | $ | 0.30 | $ | 0.35 | ||||
Diluted per share | $ | 0.29 | $ | 0.34 | ||||
Income (loss) from discontinued operations: | ||||||||
Income (loss) from discontinued operations, net of taxes | $ | (2 | ) | $ | 21 | |||
Less: net income (loss) from discontinued operations attributable to noncontrolling interests | 0 | 8 | ||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | $ | (2 | ) | $ | 13 | |||
Basic per share | $ | 0 | $ | 0.02 | ||||
Diluted per share | $ | 0 | $ | 0.02 | ||||
Net income: | ||||||||
Income from continuing operations | $ | 181 | $ | 174 | ||||
Income (loss) from discontinued operations, net of taxes | (2 | ) | 21 | |||||
Net income | 179 | 195 | ||||||
Less: net income attributable to noncontrolling interests | 30 | 8 | ||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 149 | $ | 187 | ||||
Basic per share (1) | $ | 0.29 | $ | 0.37 | ||||
Diluted per share (1) | $ | 0.29 | $ | 0.37 | ||||
Three months ended March 31, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Fixed maturity securities—taxable | $ | 580 | $ | 599 | ||||
Fixed maturity securities—non-taxable | 1 | 2 | ||||||
Equity securities | 2 | 3 | ||||||
Commercial mortgage loans | 81 | 78 | ||||||
Policy loans | 50 | 50 | ||||||
Limited partnerships | 7 | 31 | ||||||
Other invested assets | 63 | 58 | ||||||
Gross investment income before expenses and fees | 784 | 821 | ||||||
Expenses and fees | (20 | ) | (20 | ) | ||||
Net investment income | $ | 764 | $ | 801 | ||||
Three months ended March 31, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Realized investment gains (losses): | ||||||||
Available-for-sale fixed maturity securities: | ||||||||
Realized gains | $ | 10 | $ | 7 | ||||
Realized losses | (18 | ) | (3 | ) | ||||
Net realized gains (losses) on available-for-sale fixed maturity securities | (8 | ) | 4 | |||||
Net realized gains (losses) on equity securities sold | 0 | (5 | ) | |||||
Net realized gains (losses) on limited partnerships | 0 | 3 | ||||||
Total net realized investment gains (losses) | (8 | ) | 2 | |||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities | 0 | (2 | ) | |||||
Write-down of available-for-sale fixed maturity securities (1) | (2 | ) | (1 | ) | ||||
Net unrealized gains (losses) on equity securities still held | (6 | ) | (8 | ) | ||||
Net unrealized gains (losses) on limited partnerships | 35 | 34 | ||||||
Commercial mortgage loans | 1 | (1 | ) | |||||
Derivative instruments (2) | 4 | 8 | ||||||
Other | 4 | 1 | ||||||
Net investment gains (losses) | $ | 28 | $ | 33 | ||||
(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 | $ | 2 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3 | ||||||||||||||||
Commercial mortgage-backed | 3 | 0 | 0 | 0 | 0 | (3 | ) | 0 | 0 | |||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 4 | $ | 0 | $ | 2 | $ | 0 | $ | 0 | $ | (3 | ) | $ | 0 | $ | 3 | |||||||||||||||
(Amounts in millions) | March 31, 2022 | December 31, 2021 | ||||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses (1) | $ | 2,747 | $ | 7,869 | ||||
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses (1) | 0 | 0 | ||||||
Adjustments to DAC, present value of future profits, sales inducements, benefit reserves and policyholder contract balances | (1,700 | ) | (5,487 | ) | ||||
Income taxes, net | (223 | ) | (507 | ) | ||||
Net unrealized investment gains (losses) | 824 | 1,875 | ||||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | (26 | ) | 15 | |||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | $ | 850 | $ | 1,860 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Weighted-average shares used in basic earnings per share calculations | 509.0 | 507.0 | 508.6 | 506.5 | ||||||||||||
Potentially dilutive securities: | ||||||||||||||||
Stock options, restricted stock units and other equity-based awards | 5.2 | 8.0 | 7.2 | 7.9 | ||||||||||||
Weighted-average shares used in diluted earnings per share calculations | 514.2 | 515.0 | 515.8 | 514.4 | ||||||||||||
Income from continuing operations: | ||||||||||||||||
Income from continuing operations | $ | 220 | $ | 245 | $ | 401 | $ | 419 | ||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 38 | — | 68 | — | ||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 182 | $ | 245 | $ | 333 | $ | 419 | ||||||||
Basic per share | $ | 0.36 | $ | 0.48 | $ | 0.65 | $ | 0.83 | ||||||||
Diluted per share | $ | 0.36 | $ | 0.47 | $ | 0.65 | $ | 0.82 | ||||||||
Income (loss) from discontinued operations: | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | $ | (1 | ) | $ | (5 | ) | $ | (3 | ) | $ | 16 | |||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | 8 | ||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | $ | (1 | ) | $ | (5 | ) | $ | (3 | ) | $ | 8 | |||||
Basic per share | $ | — | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.02 | ||||||
Diluted per share | $ | — | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.02 | ||||||
Net income: | ||||||||||||||||
Income from continuing operations | $ | 220 | $ | 245 | $ | 401 | $ | 419 | ||||||||
Income (loss) from discontinued operations, net of taxes | (1 | ) | (5 | ) | (3 | ) | 16 | |||||||||
Net income | 219 | 240 | 398 | 435 | ||||||||||||
Less: net income attributable to noncontrolling interests | 38 | — | 68 | 8 | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 181 | $ | 240 | $ | 330 | $ | 427 | ||||||||
Basic per share (1) | $ | 0.36 | $ | 0.47 | $ | 0.65 | $ | 0.84 | ||||||||
Diluted per share (1) | $ | 0.35 | $ | 0.47 | $ | 0.64 | $ | 0.83 | ||||||||
(1) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Fixed maturity securities—taxable | $ | 578 | $ | 608 | $ | 1,158 | $ | 1,207 | ||||||||
Fixed maturity securities—non-taxable | 1 | 1 | 2 | 3 | ||||||||||||
Equity securities | 2 | 2 | 4 | 5 | ||||||||||||
Commercial mortgage loans | 78 | 103 | 159 | 181 | ||||||||||||
Policy loans | 51 | 40 | 101 | 90 | ||||||||||||
Limited partnerships | 32 | 54 | 39 | 85 | ||||||||||||
Other invested assets | 66 | 58 | 129 | 116 | ||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 1 | — | 1 | — | ||||||||||||
Gross investment income before expenses and fees | 809 | 866 | 1,593 | 1,687 | ||||||||||||
Expenses and fees | (22 | ) | (22 | ) | (42 | ) | (42 | ) | ||||||||
Net investment income | $ | 787 | $ | 844 | $ | 1,551 | $ | 1,645 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Realized investment gains (losses): | ||||||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||
Realized gains | $ | 5 | $ | 5 | $ | 15 | $ | 12 | ||||||||
Realized losses | (9 | ) | (4 | ) | (27 | ) | (7 | ) | ||||||||
Net realized gains (losses) on available-for-sale | (4 | ) | 1 | (12 | ) | 5 | ||||||||||
Net realized gains (losses) on equity securities sold | — | (2 | ) | — | (7 | ) | ||||||||||
Net realized gains (losses) on limited partnerships | — | — | — | 3 | ||||||||||||
Total net realized investment gains (losses) | (4 | ) | (1 | ) | (12 | ) | 1 | |||||||||
Net change in allowance for credit losses on available-for-sale | — | (4 | ) | — | (6 | ) | ||||||||||
Write-down of available-for-sale (1) | — | — | (2 | ) | (1 | ) | ||||||||||
Net unrealized gains (losses) on equity securities still held | (27 | ) | 6 | (33 | ) | (2 | ) | |||||||||
Net unrealized gains (losses) on limited partnerships | 24 | 65 | 59 | 99 | ||||||||||||
Commercial mortgage loans | 2 | (1 | ) | 3 | (2 | ) | ||||||||||
Derivative instruments (2) | 9 | 4 | 13 | 12 | ||||||||||||
Other | 4 | 1 | 8 | 2 | ||||||||||||
Net investment gains (losses) | $ | 8 | $ | 70 | $ | 36 | $ | 103 | ||||||||
(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). |
(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 | $ | 3 | $ | — | $ | 4 | $ | (7 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Total available-for-sale fixed maturity securities | $ | 3 | $ | — | $ | 4 | $ | (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 | $ | — | $ | 6 | $ | (7 | ) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Commercial mortgage-backed | 3 | — | — | — | — | (3 | ) | — | — | |||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 4 | $ | — | $ | 6 | $ | (7 | ) | $ | — | $ | (3 | ) | $ | — | $ | — | ||||||||||||||
(Amounts in millions) | June 30, 2022 | December 31, 2021 | ||||||
Net unrealized gains (losses) on fixed maturity securities without an allowance for credit losses (1) | $ | (1,961 | ) | $ | 7,869 | |||
Net unrealized gains (losses) on fixed maturity securities with an allowance for credit losses (1) | — | — | ||||||
Adjustments to DAC, present value of future profits, sales inducements, benefit reserves and policyholder contract balances | (17 | ) | (5,487 | ) | ||||
Income taxes, net | 370 | (507 | ) | |||||
Net unrealized investment gains (losses) | (1,608 | ) | 1,875 | |||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | (54 | ) | 15 | |||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | $ | (1,554 | ) | $ | 1,860 | |||
(1) | Excludes foreign exchange. |
As of or for the three months ended June 30, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Beginning balance | $ | 850 | $ | 1,919 | ||||
Unrealized gains (losses) arising during the period: | ||||||||
Unrealized gains (losses) on fixed maturity securities | (4,713 | ) | 1,774 | |||||
Adjustment to deferred acquisition costs | 1,082 | 42 | ||||||
Adjustment to present value of future profits | 80 | 1 | ||||||
Adjustment to sales inducements | 2 | 2 | ||||||
Adjustment to benefit reserves | 519 | (1,887 | ) | |||||
Provision for income taxes | 594 | 14 | ||||||
Change in unrealized gains (losses) on investment securities | (2,436 | ) | (54 | ) | ||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $(1) and $— | 4 | — | ||||||
Change in net unrealized investment gains (losses) | (2,432 | ) | (54 | ) | ||||
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | (28 | ) | — | |||||
Ending balance | $ | (1,554 | ) | $ | 1,865 | |||
As of or for the six months ended June 30, | ||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Beginning balance | $ | 1,860 | $ | 2,214 | $ | 1,860 | $ | 2,214 | ||||||||
Unrealized gains (losses) arising during the period: | ||||||||||||||||
Unrealized gains (losses) on fixed maturity securities | (5,130 | ) | (3,383 | ) | (9,843 | ) | (1,609 | ) | ||||||||
Adjustment to DAC | 237 | (174 | ) | |||||||||||||
Adjustment to deferred acquisition costs | 1,319 | (132 | ) | |||||||||||||
Adjustment to present value of future profits | 1 | 1 | 81 | 2 | ||||||||||||
Adjustment to sales inducements | 22 | 3 | 24 | 5 | ||||||||||||
Adjustment to benefit reserves and policyholder contract balances | 3,527 | 3,145 | ||||||||||||||
Adjustment to benefit reserves | 4,046 | 1,258 | ||||||||||||||
Provision for income taxes | 286 | 92 | 880 | 106 | ||||||||||||
Change in unrealized gains (losses) on investment securities | (1,057 | ) | (316 | ) | (3,493 | ) | (370 | ) | ||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $(2) and $1 | 6 | (4 | ) | |||||||||||||
Reclassification adjustments to net investment (gains) losses, net of taxes of $ (3) and $1 | 10 | (4 | ) | |||||||||||||
Change in net unrealized investment gains (losses) | (1,051 | ) | (320 | ) | (3,483 | ) | (374 | ) | ||||||||
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | (41 | ) | (25 | ) | (69 | ) | (25 | ) | ||||||||
Ending balance | $ | 850 | $ | 1,919 | $ | (1,554 | ) | $ | 1,865 | |||||||
(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 | $ | 3,356 | $ | 744 | $ | (3 | ) | $ | 0 | $ | 4,097 | $ | 3,387 | $ | 274 | $ | (34 | ) | $ | — | $ | 3,627 | ||||||||||||||||||
State and political subdivisions | 3,009 | 206 | (81 | ) | 0 | 3,134 | 2,971 | 74 | (196 | ) | — | 2,849 | ||||||||||||||||||||||||||||
Non-U.S. government | 778 | 48 | (42 | ) | 0 | 784 | 762 | 17 | (97 | ) | — | 682 | ||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,345 | 355 | (66 | ) | 0 | 4,634 | 4,253 | 135 | (285 | ) | — | 4,103 | ||||||||||||||||||||||||||||
Energy | 2,572 | 175 | (48 | ) | 0 | 2,699 | 2,496 | 54 | (173 | ) | — | 2,377 | ||||||||||||||||||||||||||||
Finance and insurance | 8,026 | 406 | (203 | ) | 0 | 8,229 | 7,947 | 126 | (604 | ) | — | 7,469 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 5,070 | 488 | (70 | ) | 0 | 5,488 | 4,912 | 172 | (292 | ) | — | 4,792 | ||||||||||||||||||||||||||||
Technology and communications | 3,371 | 213 | (87 | ) | 0 | 3,497 | 3,224 | 60 | (260 | ) | — | 3,024 | ||||||||||||||||||||||||||||
Industrial | 1,301 | 73 | (26 | ) | 0 | 1,348 | 1,263 | 22 | (98 | ) | — | 1,187 | ||||||||||||||||||||||||||||
Capital goods | 2,346 | 205 | (39 | ) | 0 | 2,512 | 2,326 | 77 | (145 | ) | — | 2,258 | ||||||||||||||||||||||||||||
Consumer—cyclical | 1,725 | 86 | (44 | ) | 0 | 1,767 | 1,679 | 27 | (125 | ) | — | 1,581 | ||||||||||||||||||||||||||||
Transportation | 1,133 | 124 | (9 | ) | 0 | 1,248 | 1,113 | 52 | (61 | ) | — | 1,104 | ||||||||||||||||||||||||||||
Other | 381 | 24 | (4 | ) | 0 | 401 | 353 | 8 | (13 | ) | — | 348 | ||||||||||||||||||||||||||||
Total U.S. corporate | 30,270 | 2,149 | (596 | ) | 0 | 31,823 | 29,566 | 733 | (2,056 | ) | — | 28,243 | ||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 874 | 19 | (15 | ) | 0 | 878 | 864 | 3 | (57 | ) | — | 810 | ||||||||||||||||||||||||||||
Energy | 1,158 | 102 | (19 | ) | 0 | 1,241 | 1,123 | 36 | (62 | ) | — | 1,097 | ||||||||||||||||||||||||||||
Finance and insurance | 2,129 | 132 | (70 | ) | 0 | 2,191 | 2,103 | 62 | (153 | ) | — | 2,012 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 665 | 28 | (22 | ) | 0 | 671 | 630 | 4 | (64 | ) | — | 570 | ||||||||||||||||||||||||||||
Technology and communications | 1,055 | 61 | (17 | ) | 0 | 1,099 | 1,007 | 10 | (74 | ) | — | 943 | ||||||||||||||||||||||||||||
Industrial | 918 | 56 | (21 | ) | 0 | 953 | 903 | 21 | (63 | ) | — | 861 | ||||||||||||||||||||||||||||
Capital goods | 610 | 25 | (16 | ) | 0 | 619 | 609 | 6 | (50 | ) | — | 565 | ||||||||||||||||||||||||||||
Consumer—cyclical | 316 | 5 | (9 | ) | 0 | 312 | 314 | — | (29 | ) | — | 285 | ||||||||||||||||||||||||||||
Transportation | 392 | 38 | (7 | ) | 0 | 423 | 392 | 20 | (22 | ) | — | 390 | ||||||||||||||||||||||||||||
Other | 996 | 86 | (16 | ) | 0 | 1,066 | 960 | 39 | (50 | ) | — | 949 | ||||||||||||||||||||||||||||
Total non-U.S. corporate | 9,113 | 552 | (212 | ) | 0 | 9,453 | 8,905 | 201 | (624 | ) | — | 8,482 | ||||||||||||||||||||||||||||
Residential mortgage-backed | 1,277 | 57 | (14 | ) | 0 | 1,320 | 1,214 | 36 | (37 | ) | — | 1,213 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,369 | 36 | (44 | ) | 0 | 2,361 | 2,272 | 7 | (142 | ) | — | 2,137 | ||||||||||||||||||||||||||||
Other asset-backed | 2,108 | 7 | (60 | ) | 0 | 2,055 | 2,171 | 1 | (119 | ) | — | 2,053 | ||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 52,280 | $ | 3,799 | $ | (1,052 | ) | $ | 0 | $ | 55,027 | $ | 51,248 | $ | 1,343 | $ | (3,305 | ) | $ | — | $ | 49,286 | ||||||||||||||||||
(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 | $ | 3,368 | $ | 1,184 | $ | 0 | $ | 0 | $ | 4,552 | $ | 3,368 | $ | 1,184 | $ | — | $ | — | $ | 4,552 | ||||||||||||||||||||
State and political subdivisions | 2,982 | 474 | (6 | ) | 0 | 3,450 | 2,982 | 474 | (6 | ) | — | 3,450 | ||||||||||||||||||||||||||||
Non-U.S. government | 762 | 86 | (13 | ) | 0 | 835 | 762 | 86 | (13 | ) | — | 835 | ||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,330 | 783 | (9 | ) | 0 | 5,104 | 4,330 | 783 | (9 | ) | — | 5,104 | ||||||||||||||||||||||||||||
Energy | 2,581 | 363 | (10 | ) | 0 | 2,934 | 2,581 | 363 | (10 | ) | — | 2,934 | ||||||||||||||||||||||||||||
Finance and insurance | 8,003 | 1,012 | (24 | ) | 0 | 8,991 | 8,003 | 1,012 | (24 | ) | — | 8,991 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 5,138 | 1,029 | (8 | ) | 0 | 6,159 | 5,138 | 1,029 | (8 | ) | — | 6,159 | ||||||||||||||||||||||||||||
Technology and communications | 3,345 | 476 | (13 | ) | 0 | 3,808 | 3,345 | 476 | (13 | ) | — | 3,808 | ||||||||||||||||||||||||||||
Industrial | 1,322 | 175 | (3 | ) | 0 | 1,494 | 1,322 | 175 | (3 | ) | — | 1,494 | ||||||||||||||||||||||||||||
Capital goods | 2,334 | 415 | (4 | ) | 0 | 2,745 | 2,334 | 415 | (4 | ) | — | 2,745 | ||||||||||||||||||||||||||||
Consumer—cyclical | 1,703 | 203 | (7 | ) | 0 | 1,899 | 1,703 | 203 | (7 | ) | — | 1,899 | ||||||||||||||||||||||||||||
Transportation | 1,122 | 249 | 0 | 0 | 1,371 | 1,122 | 249 | — | — | 1,371 | ||||||||||||||||||||||||||||||
Other | 379 | 41 | (1 | ) | 0 | 419 | 379 | 41 | (1 | ) | — | 419 | ||||||||||||||||||||||||||||
Total U.S. corporate | 30,257 | 4,746 | (79 | ) | 0 | 34,924 | 30,257 | 4,746 | (79 | ) | — | 34,924 | ||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 867 | 63 | (2 | ) | 0 | 928 | 867 | 63 | (2 | ) | — | 928 | ||||||||||||||||||||||||||||
Energy | 1,194 | 190 | (1 | ) | 0 | 1,383 | 1,194 | 190 | (1 | ) | — | 1,383 | ||||||||||||||||||||||||||||
Finance and insurance | 2,171 | 270 | (9 | ) | 0 | 2,432 | 2,171 | 270 | (9 | ) | — | 2,432 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 664 | 81 | (2 | ) | 0 | 743 | 664 | 81 | (2 | ) | — | 743 | ||||||||||||||||||||||||||||
Technology and communications | 1,085 | 166 | (1 | ) | 0 | 1,250 | 1,085 | 166 | (1 | ) | — | 1,250 | ||||||||||||||||||||||||||||
Industrial | 933 | 117 | (3 | ) | 0 | 1,047 | 933 | 117 | (3 | ) | — | 1,047 | ||||||||||||||||||||||||||||
Capital goods | 640 | 66 | (1 | ) | 0 | 705 | 640 | 66 | (1 | ) | — | 705 | ||||||||||||||||||||||||||||
Consumer—cyclical | 316 | 27 | (2 | ) | 0 | 341 | 316 | 27 | (2 | ) | — | 341 | ||||||||||||||||||||||||||||
Transportation | 422 | 68 | (1 | ) | 0 | 489 | 422 | 68 | (1 | ) | — | 489 | ||||||||||||||||||||||||||||
Other | 1,052 | 169 | (4 | ) | 0 | 1,217 | 1,052 | 169 | (4 | ) | — | 1,217 | ||||||||||||||||||||||||||||
Total non-U.S. corporate | 9,344 | 1,217 | (26 | ) | 0 | 10,535 | 9,344 | 1,217 | (26 | ) | — | 10,535 | ||||||||||||||||||||||||||||
Residential mortgage-backed | 1,325 | 116 | (1 | ) | 0 | 1,440 | 1,325 | 116 | (1 | ) | — | 1,440 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,435 | 152 | (3 | ) | 0 | 2,584 | 2,435 | 152 | (3 | ) | — | 2,584 | ||||||||||||||||||||||||||||
Other asset-backed | 2,138 | 29 | (7 | ) | 0 | 2,160 | 2,138 | 29 | (7 | ) | — | 2,160 | ||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 52,611 | $ | 8,004 | $ | (135 | ) | $ | 0 | $ | 60,480 | $ | 52,611 | $ | 8,004 | $ | (135 | ) | $ | — | $ | 60,480 | ||||||||||||||||||
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 of 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 | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government, agencies and government-sponsored enterprises | $ | 67 | $ | (2 | ) | 17 | $ | 10 | $ | (1 | ) | 3 | $ | 77 | $ | (3 | ) | 20 | $ | 797 | $ | (33 | ) | 49 | $ | 10 | $ | (1 | ) | 3 | $ | 807 | $ | (34 | ) | 52 | ||||||||||||||||||||||||||||||||||||
State and political subdivisions | 902 | (78 | ) | 157 | 25 | (3 | ) | 5 | 927 | (81 | ) | 162 | 1,531 | (193 | ) | 272 | 25 | (3 | ) | 5 | 1,556 | (196 | ) | 277 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government | 305 | (27 | ) | 46 | 80 | (15 | ) | 10 | 385 | (42 | ) | 56 | 389 | (73 | ) | 64 | 73 | (24 | ) | 12 | 462 | (97 | ) | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate | 8,109 | (505 | ) | 995 | 627 | (91 | ) | 65 | 8,736 | (596 | ) | 1,060 | 17,949 | (1,896 | ) | 2,235 | 622 | (160 | ) | 72 | 18,571 | (2,056 | ) | 2,307 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate | 2,672 | (173 | ) | 355 | 258 | (39 | ) | 31 | 2,930 | (212 | ) | 386 | 5,407 | (558 | ) | 691 | 248 | (66 | ) | 35 | 5,655 | (624 | ) | 726 | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 304 | (13 | ) | 78 | 5 | (1 | ) | 5 | 309 | (14 | ) | 83 | 474 | (36 | ) | 121 | 4 | (1 | ) | 5 | 478 | (37 | ) | 126 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 1,098 | (40 | ) | 160 | 43 | (4 | ) | 6 | 1,141 | (44 | ) | 166 | 1,882 | (137 | ) | 265 | 42 | (5 | ) | 6 | 1,924 | (142 | ) | 271 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed | 1,500 | (57 | ) | 254 | 66 | (3 | ) | 15 | 1,566 | (60 | ) | 269 | 1,798 | (113 | ) | 319 | 78 | (6 | ) | 19 | 1,876 | (119 | ) | 338 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 14,957 | $ | (895 | ) | 2,062 | $ | 1,114 | $ | (157 | ) | 140 | $ | 16,071 | $ | (1,052 | ) | 2,202 | $ | 30,227 | $ | (3,039 | ) | 4,016 | $ | 1,102 | $ | (266 | ) | 157 | $ | 31,329 | $ | (3,305 | ) | 4,173 | ||||||||||||||||||||||||||||||||||||
% Below cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
<20% Below cost | $ | 14,957 | $ | (895 | ) | 2,062 | $ | 1,066 | $ | (142 | ) | 134 | $ | 16,023 | $ | (1,037 | ) | 2,196 | $ | 28,164 | $ | (2,402 | ) | 3,756 | $ | 627 | $ | (101 | ) | 98 | $ | 28,791 | $ | (2,503 | ) | 3,854 | ||||||||||||||||||||||||||||||||||||
20%-50% Below cost | 0 | 0 | 0 | 48 | (15 | ) | 6 | 48 | (15 | ) | 6 | 2,063 | (637 | ) | 260 | 475 | (165 | ) | 59 | 2,538 | (802 | ) | 319 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 14,957 | $ | (895 | ) | 2,062 | $ | 1,114 | $ | (157 | ) | 140 | $ | 16,071 | $ | (1,052 | ) | 2,202 | $ | 30,227 | $ | (3,039 | ) | 4,016 | $ | 1,102 | $ | (266 | ) | 157 | $ | 31,329 | $ | (3,305 | ) | 4,173 | ||||||||||||||||||||||||||||||||||||
Investment grade | $ | 13,796 | $ | (823 | ) | 1,896 | $ | 1,031 | $ | (140 | ) | 129 | $ | 14,827 | $ | (963 | ) | 2,025 | $ | 28,568 | $ | (2,801 | ) | 3,763 | $ | 1,023 | $ | (241 | ) | 144 | $ | 29,591 | $ | (3,042 | ) | 3,907 | ||||||||||||||||||||||||||||||||||||
Below investment grade | 1,161 | (72 | ) | 166 | 83 | (17 | ) | 11 | 1,244 | (89 | ) | 177 | 1,659 | (238 | ) | 253 | 79 | (25 | ) | 13 | 1,738 | (263 | ) | 266 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 14,957 | $ | (895 | ) | 2,062 | $ | 1,114 | $ | (157 | ) | 140 | $ | 16,071 | $ | (1,052 | ) | 2,202 | $ | 30,227 | $ | (3,039 | ) | 4,016 | $ | 1,102 | $ | (266 | ) | 157 | $ | 31,329 | $ | (3,305 | ) | 4,173 | ||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | 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 | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | $ | 1,089 | $ | (56 | ) | 142 | $ | 59 | $ | (10 | ) | 13 | $ | 1,148 | $ | (66 | ) | 155 | ||||||||||||||||||
Energy | 740 | (40 | ) | 87 | 63 | (8 | ) | 7 | 803 | (48 | ) | 94 | ||||||||||||||||||||||||
Finance and insurance | 2,529 | (173 | ) | 293 | 203 | (30 | ) | 17 | 2,732 | (203 | ) | 310 | ||||||||||||||||||||||||
Consumer—non-cyclical | 916 | (56 | ) | 109 | 86 | (14 | ) | 7 | 1,002 | (70 | ) | 116 | ||||||||||||||||||||||||
Technology and communications | 1,094 | (73 | ) | 147 | 93 | (14 | ) | 8 | 1,187 | (87 | ) | 155 | ||||||||||||||||||||||||
Industrial | 361 | (26 | ) | 46 | 0 | 0 | 0 | 361 | (26 | ) | 46 | |||||||||||||||||||||||||
Capital goods | 553 | (35 | ) | 65 | 27 | (4 | ) | 4 | 580 | (39 | ) | 69 | ||||||||||||||||||||||||
Consumer—cyclical | 507 | (34 | ) | 65 | 78 | (10 | ) | 7 | 585 | (44 | ) | 72 | ||||||||||||||||||||||||
Transportation | 247 | (9 | ) | 32 | 0 | 0 | 0 | 247 | (9 | ) | 32 | |||||||||||||||||||||||||
Other | 73 | (3 | ) | 9 | 18 | (1 | ) | 2 | 91 | (4 | ) | 11 | ||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 8,109 | (505 | ) | 995 | 627 | (91 | ) | 65 | 8,736 | (596 | ) | 1,060 | ||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | 272 | (13 | ) | 28 | 12 | (2 | ) | 1 | 284 | (15 | ) | 29 | ||||||||||||||||||||||||
Energy | 291 | (18 | ) | 27 | 4 | (1 | ) | 1 | 295 | (19 | ) | 28 | ||||||||||||||||||||||||
Finance and insurance | 685 | (47 | ) | 96 | 157 | (23 | ) | 16 | 842 | (70 | ) | 112 | ||||||||||||||||||||||||
Consumer—non-cyclical | 253 | (21 | ) | 32 | 6 | (1 | ) | 1 | 259 | (22 | ) | 33 | ||||||||||||||||||||||||
Technology and communications | 269 | (17 | ) | 41 | 0 | 0 | 0 | 269 | (17 | ) | 41 | |||||||||||||||||||||||||
Industrial | 274 | (19 | ) | 35 | 18 | (2 | ) | 2 | 292 | (21 | ) | 37 | ||||||||||||||||||||||||
Capital goods | 231 | (16 | ) | 30 | 0 | 0 | 0 | 231 | (16 | ) | 30 | |||||||||||||||||||||||||
Consumer—cyclical | 128 | (7 | ) | 25 | 20 | (2 | ) | 4 | 148 | (9 | ) | 29 | ||||||||||||||||||||||||
Transportation | 125 | (7 | ) | 19 | 0 | 0 | 0 | 125 | (7 | ) | 19 | |||||||||||||||||||||||||
Other | 144 | (8 | ) | 22 | 41 | (8 | ) | 6 | 185 | (16 | ) | 28 | ||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 2,672 | (173 | ) | 355 | 258 | (39 | ) | 31 | 2,930 | (212 | ) | 386 | ||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 10,781 | $ | (678 | ) | 1,350 | $ | 885 | $ | (130 | ) | 96 | $ | 11,666 | $ | (808 | ) | 1,446 | ||||||||||||||||||
Less than 12 months | 12 months or more | Total | ||||||||||||||||||||||||||||||||||
(Dollar amounts in millions) | 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 | ||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | $ | 2,176 | $ | (268 | ) | 301 | $ | 56 | $ | (17 | ) | 15 | $ | 2,232 | $ | (285 | ) | 316 | ||||||||||||||||||
Energy | 1,534 | (162 | ) | 205 | 53 | (11 | ) | 6 | 1,587 | (173 | ) | 211 | ||||||||||||||||||||||||
Finance and insurance | 5,276 | (554 | ) | 637 | 183 | (50 | ) | 17 | 5,459 | (604 | ) | 654 | ||||||||||||||||||||||||
Consumer—non-cyclical | 2,657 | (268 | ) | 284 | 76 | (24 | ) | 7 | 2,733 | (292 | ) | 291 | ||||||||||||||||||||||||
Technology and communications | 2,192 | (227 | ) | 282 | 123 | (33 | ) | 11 | 2,315 | (260 | ) | 293 | ||||||||||||||||||||||||
Industrial | 805 | (96 | ) | 101 | 11 | (2 | ) | 1 | 816 | (98 | ) | 102 | ||||||||||||||||||||||||
Capital goods | 1,340 | (138 | ) | 162 | 24 | (7 | ) | 4 | 1,364 | (145 | ) | 166 | ||||||||||||||||||||||||
Consumer—cyclical | 1,107 | (111 | ) | 156 | 73 | (14 | ) | 7 | 1,180 | (125 | ) | 163 | ||||||||||||||||||||||||
Transportation | 716 | (60 | ) | 87 | 5 | (1 | ) | 2 | 721 | (61 | ) | 89 | ||||||||||||||||||||||||
Other | 146 | (12 | ) | 20 | 18 | (1 | ) | 2 | 164 | (13 | ) | 22 | ||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 17,949 | (1,896 | ) | 2,235 | 622 | (160 | ) | 72 | 18,571 | (2,056 | ) | 2,307 | ||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||
Utilities | 596 | (51 | ) | 63 | 21 | (6 | ) | 3 | 617 | (57 | ) | 66 | ||||||||||||||||||||||||
Energy | 608 | (61 | ) | 65 | 4 | (1 | ) | 1 | 612 | (62 | ) | 66 | ||||||||||||||||||||||||
Finance and insurance | 1,282 | (117 | ) | 190 | 144 | (36 | ) | 16 | 1,426 | (153 | ) | 206 | ||||||||||||||||||||||||
Consumer—non-cyclical | 480 | (61 | ) | 51 | 8 | (3 | ) | 4 | 488 | (64 | ) | 55 | ||||||||||||||||||||||||
Technology and communications | 704 | (74 | ) | 83 | — | — | — | 704 | (74 | ) | 83 | |||||||||||||||||||||||||
Industrial | 475 | (58 | ) | 68 | 16 | (5 | ) | 2 | 491 | (63 | ) | 70 | ||||||||||||||||||||||||
Capital goods | 428 | (50 | ) | 54 | — | — | — | 428 | (50 | ) | 54 | |||||||||||||||||||||||||
Consumer—cyclical | 236 | (26 | ) | 38 | 19 | (3 | ) | 4 | 255 | (29 | ) | 42 | ||||||||||||||||||||||||
Transportation | 195 | (22 | ) | 25 | — | — | — | 195 | (22 | ) | 25 | |||||||||||||||||||||||||
Other | 403 | (38 | ) | 54 | 36 | (12 | ) | 5 | 439 | (50 | ) | 59 | ||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 5,407 | (558 | ) | 691 | 248 | (66 | ) | 35 | 5,655 | (624 | ) | 726 | ||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 23,356 | $ | (2,454 | ) | 2,926 | $ | 870 | $ | (226 | ) | 107 | $ | 24,226 | $ | (2,680 | ) | 3,033 | ||||||||||||||||||
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 of 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 | 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 | $ | 339 | $ | (6 | ) | 67 | $ | 0 | $ | 0 | 0 | $ | 339 | $ | (6 | ) | 67 | $ | 339 | $ | (6 | ) | 67 | $ | — | $ | — | — | $ | 339 | $ | (6 | ) | 67 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. government | 173 | (9 | ) | 28 | 19 | (4 | ) | 1 | 192 | (13 | ) | 29 | 173 | (9 | ) | 28 | 19 | (4 | ) | 1 | 192 | (13 | ) | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate | 2,593 | (64 | ) | 266 | 196 | (15 | ) | 22 | 2,789 | (79 | ) | 288 | 2,593 | (64 | ) | 266 | 196 | (15 | ) | 22 | 2,789 | (79 | ) | 288 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate | 912 | (21 | ) | 124 | 62 | (5 | ) | 8 | 974 | (26 | ) | 132 | 912 | (21 | ) | 124 | 62 | (5 | ) | 8 | 974 | (26 | ) | 132 | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 97 | (1 | ) | 22 | 0 | 0 | 0 | 97 | (1 | ) | 22 | 97 | (1 | ) | 22 | — | — | — | 97 | (1 | ) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 113 | (2 | ) | 17 | 31 | (1 | ) | 4 | 144 | (3 | ) | 21 | 113 | (2 | ) | 17 | 31 | (1 | ) | 4 | 144 | (3 | ) | 21 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed | 764 | (7 | ) | 111 | 0 | 0 | 0 | 764 | (7 | ) | 111 | 764 | (7 | ) | 111 | — | — | — | 764 | (7 | ) | 111 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 4,991 | $ | (110 | ) | 635 | $ | 308 | $ | (25 | ) | 35 | $ | 5,299 | $ | (135 | ) | 670 | $ | 4,991 | $ | (110 | ) | 635 | $ | 308 | $ | (25 | ) | 35 | $ | 5,299 | $ | (135 | ) | 670 | ||||||||||||||||||||||||||||||||||||
% Below cost: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
<20% Below cost | $ | 4,991 | $ | (110 | ) | 635 | $ | 297 | $ | (20 | ) | 33 | $ | 5,288 | $ | (130 | ) | 668 | $ | 4,991 | $ | (110 | ) | 635 | $ | 297 | $ | (20 | ) | 33 | $ | 5,288 | $ | (130 | ) | 668 | ||||||||||||||||||||||||||||||||||||
20%-50% Below cost | 0 | 0 | 0 | 11 | (5 | ) | 2 | 11 | (5 | ) | 2 | — | — | — | 11 | (5 | ) | 2 | 11 | (5 | ) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 4,991 | $ | (110 | ) | 635 | $ | 308 | $ | (25 | ) | 35 | $ | 5,299 | $ | (135 | ) | 670 | $ | 4,991 | $ | (110 | ) | 635 | $ | 308 | $ | (25 | ) | 35 | $ | 5,299 | $ | (135 | ) | 670 | ||||||||||||||||||||||||||||||||||||
Investment grade | $ | 4,644 | $ | (101 | ) | 587 | $ | 241 | $ | (12 | ) | 25 | $ | 4,885 | $ | (113 | ) | 612 | $ | 4,644 | $ | (101 | ) | 587 | $ | 241 | $ | (12 | ) | 25 | $ | 4,885 | $ | (113 | ) | 612 | ||||||||||||||||||||||||||||||||||||
Below investment grade | 347 | (9 | ) | 48 | 67 | (13 | ) | 10 | 414 | (22 | ) | 58 | 347 | (9 | ) | 48 | 67 | (13 | ) | 10 | 414 | (22 | ) | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for fixed maturity securities in an unrealized loss position | $ | 4,991 | $ | (110 | ) | 635 | $ | 308 | $ | (25 | ) | 35 | $ | 5,299 | $ | (135 | ) | 670 | $ | 4,991 | $ | (110 | ) | 635 | $ | 308 | $ | (25 | ) | 35 | $ | 5,299 | $ | (135 | ) | 670 | ||||||||||||||||||||||||||||||||||||
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 of 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 | Fair value | Gross unrealized losses | Number of securities | Fair value | Gross unrealized losses | Number of securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | $ | 211 | $ | (7 | ) | 32 | $ | 29 | $ | (2 | ) | 7 | $ | 240 | $ | (9 | ) | 39 | $ | 211 | $ | (7 | ) | 32 | $ | 29 | $ | (2 | ) | 7 | $ | 240 | $ | (9 | ) | 39 | ||||||||||||||||||||||||||||||||||||
Energy | 166 | (3 | ) | 18 | 25 | (7 | ) | 4 | 191 | (10 | ) | 22 | 166 | (3 | ) | 18 | 25 | (7 | ) | 4 | 191 | (10 | ) | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance | 960 | (22 | ) | 89 | 62 | (2 | ) | 3 | 1,022 | (24 | ) | 92 | 960 | (22 | ) | 89 | 62 | (2 | ) | 3 | 1,022 | (24 | ) | 92 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 296 | (7 | ) | 30 | 14 | (1 | ) | 2 | 310 | (8 | ) | 32 | 296 | (7 | ) | 30 | 14 | (1 | ) | 2 | 310 | (8 | ) | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications | 378 | (12 | ) | 37 | 29 | (1 | ) | 2 | 407 | (13 | ) | 39 | 378 | (12 | ) | 37 | 29 | (1 | ) | 2 | 407 | (13 | ) | 39 | ||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 143 | (3 | ) | 18 | 0 | 0 | 0 | 143 | (3 | ) | 18 | 143 | (3 | ) | 18 | — | — | — | 143 | (3 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods | 171 | (3 | ) | 16 | 18 | (1 | ) | 2 | 189 | (4 | ) | 18 | 171 | (3 | ) | 16 | 18 | (1 | ) | 2 | 189 | (4 | ) | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 268 | (7 | ) | 26 | 0 | 0 | 0 | 268 | (7 | ) | 26 | 268 | (7 | ) | 26 | — | — | — | 268 | (7 | ) | 26 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 0 | 0 | 0 | 19 | (1 | ) | 2 | 19 | (1 | ) | 2 | — | — | — | 19 | (1 | ) | 2 | 19 | (1 | ) | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal, U.S. corporate securities | 2,593 | (64 | ) | 266 | 196 | (15 | ) | 22 | 2,789 | (79 | ) | 288 | 2,593 | (64 | ) | 266 | 196 | (15 | ) | 22 | 2,789 | (79 | ) | 288 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 69 | (2 | ) | 9 | 0 | 0 | 0 | 69 | (2 | ) | 9 | 69 | (2 | ) | 9 | — | — | — | 69 | (2 | ) | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | 64 | (1 | ) | 10 | 0 | 0 | 0 | 64 | (1 | ) | 10 | 64 | (1 | ) | 10 | — | — | — | 64 | (1 | ) | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance | 366 | (8 | ) | 43 | 18 | (1 | ) | 2 | 384 | (9 | ) | 45 | 366 | (8 | ) | 43 | 18 | (1 | ) | 2 | 384 | (9 | ) | 45 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 67 | (1 | ) | 12 | 6 | (1 | ) | 1 | 73 | (2 | ) | 13 | 67 | (1 | ) | 12 | 6 | (1 | ) | 1 | 73 | (2 | ) | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications | 48 | (1 | ) | 8 | 0 | 0 | 0 | 48 | (1 | ) | 8 | 48 | (1 | ) | 8 | — | — | — | 48 | (1 | ) | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 122 | (3 | ) | 14 | 0 | 0 | 0 | 122 | (3 | ) | 14 | 122 | (3 | ) | 14 | — | — | — | 122 | (3 | ) | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods | 78 | (1 | ) | 8 | 0 | 0 | 0 | 78 | (1 | ) | 8 | 78 | (1 | ) | 8 | — | — | — | 78 | (1 | ) | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 22 | (1 | ) | 8 | 15 | (1 | ) | 3 | 37 | (2 | ) | 11 | 22 | (1 | ) | 8 | 15 | (1 | ) | 3 | 37 | (2 | ) | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | 37 | (1 | ) | 7 | 0 | 0 | 0 | 37 | (1 | ) | 7 | 37 | (1 | ) | 7 | — | — | — | 37 | (1 | ) | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 39 | (2 | ) | 5 | 23 | (2 | ) | 2 | 62 | (4 | ) | 7 | 39 | (2 | ) | 5 | 23 | (2 | ) | 2 | 62 | (4 | ) | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal, non-U.S. corporate securities | 912 | (21 | ) | 124 | 62 | (5 | ) | 8 | 974 | (26 | ) | 132 | 912 | (21 | ) | 124 | 62 | (5 | ) | 8 | 974 | (26 | ) | 132 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total for corporate securities in an unrealized loss position | $ | 3,505 | $ | (85 | ) | 390 | $ | 258 | $ | (20 | ) | 30 | $ | 3,763 | $ | (105 | ) | 420 | $ | 3,505 | $ | (85 | ) | 390 | $ | 258 | $ | (20 | ) | 30 | $ | 3,763 | $ | (105 | ) | 420 | ||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Amortized cost or cost | Fair value | Amortized cost or cost | Fair value | ||||||||||||
Due one year or less | $ | 1,407 | $ | 1,420 | $ | 1,310 | $ | 1,314 | ||||||||
Due after one year through five years | 8,339 | 8,501 | 8,078 | 7,958 | ||||||||||||
Due after five years through ten years | 13,771 | 13,943 | 13,602 | 12,765 | ||||||||||||
Due after ten years | 23,009 | 25,427 | 22,601 | 21,846 | ||||||||||||
Subtotal | 46,526 | 49,291 | 45,591 | 43,883 | ||||||||||||
Residential mortgage-backed | 1,277 | 1,320 | 1,214 | 1,213 | ||||||||||||
Commercial mortgage-backed | 2,369 | 2,361 | 2,272 | 2,137 | ||||||||||||
Other asset-backed | 2,108 | 2,055 | 2,171 | 2,053 | ||||||||||||
Total | $ | 52,280 | $ | 55,027 | $ | 51,248 | $ | 49,286 | ||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Property type: | ||||||||||||||||
Retail | $ | 2,837 | 41 | % | $ | 2,774 | 40 | % | ||||||||
Office | 1,527 | 22 | 1,526 | 22 | ||||||||||||
Industrial | 1,461 | 21 | 1,420 | 21 | ||||||||||||
Apartments | 577 | 8 | 585 | 9 | ||||||||||||
Mixed use | 327 | 5 | 330 | 5 | ||||||||||||
Other | 209 | 3 | 221 | 3 | ||||||||||||
Subtotal | 6,938 | 100 | % | 6,856 | 100 | % | ||||||||||
Allowance for credit losses | (25 | ) | (26 | ) | ||||||||||||
Total | $ | 6,913 | $ | 6,830 | ||||||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Property type: | ||||||||||||||||
Retail | $ | 2,901 | 41 | % | $ | 2,774 | 40 | % | ||||||||
Industrial | 1,532 | 22 | 1,420 | 21 | ||||||||||||
Office | 1,512 | 21 | 1,526 | 22 | ||||||||||||
Apartments | 578 | 8 | 585 | 9 | ||||||||||||
Mixed use | 350 | 5 | 330 | 5 | ||||||||||||
Other | 215 | 3 | 221 | 3 | ||||||||||||
Subtotal | 7,088 | 100 | % | 6,856 | 100 | % | ||||||||||
Allowance for credit losses | (23 | ) | (26 | ) | ||||||||||||
Total | $ | 7,065 | $ | 6,830 | ||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Geographic region: | ||||||||||||||||
South Atlantic | $ | 1,806 | 26 | % | $ | 1,770 | 26 | % | ||||||||
Pacific | 1,357 | 20 | 1,360 | 20 | ||||||||||||
Middle Atlantic | 964 | 14 | 964 | 14 | ||||||||||||
Mountain | 932 | 13 | 892 | 13 | ||||||||||||
West South Central | 493 | 7 | 483 | 7 | ||||||||||||
West North Central | 466 | 7 | 461 | 7 | ||||||||||||
East North Central | 464 | 7 | 465 | 7 | ||||||||||||
New England | 235 | 3 | 237 | 3 | ||||||||||||
East South Central | 221 | 3 | 224 | 3 | ||||||||||||
Subtotal | 6,938 | 100 | % | 6,856 | 100 | % | ||||||||||
Allowance for credit losses | (25 | ) | (26 | ) | ||||||||||||
Total | $ | 6,913 | $ | 6,830 | ||||||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | ||||||||||||
Geographic region: | ||||||||||||||||
South Atlantic | $ | 1,816 | 26 | % | $ | 1,770 | 26 | % | ||||||||
Pacific | 1,391 | 20 | 1,360 | 20 | ||||||||||||
Middle Atlantic | 990 | 14 | 964 | 14 | ||||||||||||
Mountain | 967 | 14 | 892 | 13 | ||||||||||||
West South Central | 556 | 8 | 483 | 7 | ||||||||||||
East North Central | 469 | 6 | 465 | 7 | ||||||||||||
West North Central | 462 | 6 | 461 | 7 | ||||||||||||
East South Central | 227 | 3 | 224 | 3 | ||||||||||||
New England | 210 | 3 | 237 | 3 | ||||||||||||
Subtotal | 7,088 | 100 | % | 6,856 | 100 | % | ||||||||||
Allowance for credit losses | (23 | ) | (26 | ) | ||||||||||||
Total | $ | 7,065 | $ | 6,830 | ||||||||||||
Three months ended March 31, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Allowance for credit losses: | ||||||||
Beginning balance | $ | 26 | $ | 31 | ||||
Provision | (1 | ) | 1 | |||||
Write-offs | 0 | 0 | ||||||
Recoveries | 0 | 0 | ||||||
Ending balance | $ | 25 | $ | 32 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Allowance for credit losses: | ||||||||||||||||
Beginning balance | $ | 25 | $ | 32 | $ | 26 | $ | 31 | ||||||||
Provision | (3 | ) | 1 | (4 | ) | 2 | ||||||||||
Write-offs | — | — | — | — | ||||||||||||
Recoveries | 1 | — | 1 | — | ||||||||||||
Ending balance | $ | 23 | $ | 33 | $ | 23 | $ | 33 | ||||||||
(Amounts in millions) | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 and prior | Total | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 and prior | Total | ||||||||||||||||||||||||||||||||||||||||||
Debt-to-value: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 0 | $ | 23 | $ | 72 | $ | 60 | $ | 161 | $ | 2,136 | $ | 2,452 | ||||||||||||||||||||||||||||||||||||||||||
51% - 60% | 0 | 40 | 30 | 161 | 272 | 991 | 1,494 | |||||||||||||||||||||||||||||||||||||||||||||||||
61% - 75% | 197 | 884 | 420 | 505 | 438 | 526 | 2,970 | |||||||||||||||||||||||||||||||||||||||||||||||||
76% - 100% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||
0%—50% | $ | 2 | $ | 25 | $ | 72 | $ | 62 | $ | 165 | $ | 2,062 | $ | 2,388 | ||||||||||||||||||||||||||||||||||||||||||
51%—60% | 31 | 37 | 33 | 178 | 293 | 934 | 1,506 | |||||||||||||||||||||||||||||||||||||||||||||||||
61%—75% | 532 | 875 | 414 | 482 | 394 | 497 | 3,194 | |||||||||||||||||||||||||||||||||||||||||||||||||
76%—100% | — | — | — �� | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 100% | 0 | 0 | 0 | 0 | 0 | 22 | 22 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 197 | $ | 947 | $ | 522 | $ | 726 | $ | 871 | $ | 3,675 | $ | 6,938 | $ | 565 | $ | 937 | $ | 519 | $ | 722 | $ | 852 | $ | 3,493 | $ | 7,088 | ||||||||||||||||||||||||||||
Debt service coverage ratio: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 1.00 | $ | 0 | $ | 0 | $ | 10 | $ | 19 | $ | 41 | $ | 150 | $ | 220 | $ | — | $ | — | $ | 10 | $ | 19 | $ | 40 | $ | 114 | $ | 183 | ||||||||||||||||||||||||||||
1.00 - 1.25 | 13 | 2 | 69 | 73 | 75 | 317 | 549 | |||||||||||||||||||||||||||||||||||||||||||||||||
1.26 - 1.50 | 20 | 118 | 32 | 167 | 134 | 333 | 804 | |||||||||||||||||||||||||||||||||||||||||||||||||
1.51 - 2.00 | 148 | 724 | 219 | 269 | 441 | 1,270 | 3,071 | |||||||||||||||||||||||||||||||||||||||||||||||||
1.00—1.25 | 13 | 2 | 69 | 72 | 74 | 296 | 526 | |||||||||||||||||||||||||||||||||||||||||||||||||
1.26—1.50 | 138 | 117 | 31 | 166 | 133 | 318 | 903 | |||||||||||||||||||||||||||||||||||||||||||||||||
1.51—2.00 | 368 | 716 | 217 | 268 | 425 | 1,248 | 3,242 | |||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 2.00 | 16 | 103 | 192 | 198 | 180 | 1,605 | 2,294 | 46 | 102 | 192 | 197 | 180 | 1,517 | 2,234 | ||||||||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 197 | $ | 947 | $ | 522 | $ | 726 | $ | 871 | $ | 3,675 | $ | 6,938 | $ | 565 | $ | 937 | $ | 519 | $ | 722 | $ | 852 | $ | 3,493 | $ | 7,088 | ||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||
(Amounts in millions) | 0% - 50% | 51% - 60% | 61% - 75% | 76% - 100% | Greater than 100% | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 849 | $ | 594 | $ | 1,394 | $ | 0 | $ | 0 | $ | 2,837 | ||||||||||||
Office | 492 | 387 | 626 | 0 | 22 | 1,527 | ||||||||||||||||||
Industrial | 738 | 233 | 490 | 0 | 0 | 1,461 | ||||||||||||||||||
Apartments | 196 | 99 | 282 | 0 | 0 | 577 | ||||||||||||||||||
Mixed use | 121 | 67 | 139 | 0 | 0 | 327 | ||||||||||||||||||
Other | 56 | 114 | 39 | 0 | 0 | 209 | ||||||||||||||||||
Total amortized cost | $ | 2,452 | $ | 1,494 | $ | 2,970 | $ | 0 | $ | 22 | $ | 6,938 | ||||||||||||
% of total | 35 | % | 22 | % | 43 | % | 0 | % | 0 | % | 100 | % | ||||||||||||
Weighted-average debt service coverage ratio | 2.35 | 1.84 | 1.62 | 0 | 0 | 1.92 | ||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||
(Amounts in millions) | 0%—50% | 51%—60% | 61%—75% | 76%—100% | Greater than 100% | Total | ||||||||||||||||||
Property type: | ||||||||||||||||||||||||
Retail | $ | 838 | $ | 598 | $ | 1,465 | $ | — | $ | — | $ | 2,901 | ||||||||||||
Industrial | 720 | 229 | 583 | — | — | 1,532 | ||||||||||||||||||
Office | 472 | 389 | 651 | — | — | 1,512 | ||||||||||||||||||
Apartments | 184 | 96 | 298 | — | — | 578 | ||||||||||||||||||
Mixed use | 118 | 74 | 158 | — | — | 350 | ||||||||||||||||||
Other | 56 | 120 | 39 | — | — | 215 | ||||||||||||||||||
Total amortized cost | $ | 2,388 | $ | 1,506 | $ | 3,194 | $ | — | $ | — | $ | 7,088 | ||||||||||||
% of total | 34 | % | 21 | % | 45 | % | — | % | — | % | 100 | % | ||||||||||||
Weighted-average debt service coverage ratio | 2.34 | 1.88 | 1.61 | — | — | 1.91 | ||||||||||||||||||
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(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 | $ | 853 | $ | 611 | $ | 1,310 | $ | 0 | $ | 0 | $ | 2,774 | $ | 853 | $ | 611 | $ | 1,310 | $ | — | $ | — | $ | 2,774 | ||||||||||||||||||||||||
Industrial | 745 | 240 | 435 | — | — | 1,420 | ||||||||||||||||||||||||||||||||||||||||||
Office | 505 | 395 | 604 | 0 | 22 | 1,526 | 505 | 395 | 604 | — | 22 | 1,526 | ||||||||||||||||||||||||||||||||||||
Industrial | 745 | 240 | 435 | 0 | 0 | 1,420 | ||||||||||||||||||||||||||||||||||||||||||
Apartments | 200 | 102 | 283 | 0 | 0 | 585 | 200 | 102 | 283 | — | — | 585 | ||||||||||||||||||||||||||||||||||||
Mixed use | 120 | 70 | 140 | 0 | 0 | 330 | 120 | 70 | 140 | — | — | 330 | ||||||||||||||||||||||||||||||||||||
Other | 57 | 121 | 43 | 0 | 0 | 221 | 57 | 121 | 43 | — | — | 221 | ||||||||||||||||||||||||||||||||||||
Total amortized cost | $ | 2,480 | $ | 1,539 | $ | 2,815 | $ | 0 | $ | 22 | $ | 6,856 | $ | 2,480 | $ | 1,539 | $ | 2,815 | $ | — | $ | 22 | $ | 6,856 | ||||||||||||||||||||||||
% of total | 36 | % | 23 | % | 41 | % | 0 | % | 0 | % | 100 | % | 36 | % | 23 | % | 41 | % | — | % | — | % | 100 | % | ||||||||||||||||||||||||
Weighted-average debt service coverage ratio | 2.36 | 1.83 | 1.61 | 0 | 0.68 | 1.93 | 2.36 | 1.83 | 1.61 | — | 0.68 | 1.93 | ||||||||||||||||||||||||||||||||||||
March 31, 2022 | ||||||||||||||||||||||||
(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 | $ | 100 | $ | 157 | $ | 426 | $ | 1,441 | $ | 713 | $ | 2,837 | ||||||||||||
Office | 67 | 108 | 165 | 609 | 578 | 1,527 | ||||||||||||||||||
Industrial | 8 | 77 | 80 | 629 | 667 | 1,461 | ||||||||||||||||||
Apartments | 17 | 62 | 77 | 230 | 191 | 577 | ||||||||||||||||||
Mixed use | 23 | 31 | 40 | 118 | 115 | 327 | ||||||||||||||||||
Other | 5 | 114 | 16 | 44 | 30 | 209 | ||||||||||||||||||
Total amortized cost | $ | 220 | $ | 549 | $ | 804 | $ | 3,071 | $ | 2,294 | $ | 6,938 | ||||||||||||
% of total | 3 | % | 8 | % | 12 | % | 44 | % | 33 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 68 | % | 60 | % | 62 | % | 60 | % | 44 | % | 55 | % | ||||||||||||
June 30, 2022 | ||||||||||||||||||||||||
(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 | $ | 94 | $ | 150 | $ | 429 | $ | 1,534 | $ | 694 | $ | 2,901 | ||||||||||||
Industrial | 6 | 76 | 134 | 663 | 653 | 1,532 | ||||||||||||||||||
Office | 38 | 106 | 179 | 630 | 559 | 1,512 | ||||||||||||||||||
Apartments | 17 | 62 | 84 | 239 | 176 | 578 | ||||||||||||||||||
Mixed use | 23 | 31 | 40 | 137 | 119 | 350 | ||||||||||||||||||
Other | 5 | 101 | 37 | 39 | 33 | 215 | ||||||||||||||||||
Total amortized cost | $ | 183 | $ | 526 | $ | 903 | $ | 3,242 | $ | 2,234 | $ | 7,088 | ||||||||||||
% of total | 3 | % | 7 | % | 13 | % | 46 | % | 31 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 60 | % | 60 | % | 63 | % | 61 | % | 44 | % | 56 | % | ||||||||||||
December 31, 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 | $ | 102 | $ | 166 | $ | 405 | $ | 1,375 | $ | 726 | $ | 2,774 | ||||||||||||
Industrial | 9 | 64 | 82 | 599 | 666 | 1,420 | ||||||||||||||||||
Office | 67 | 109 | 167 | 593 | 590 | 1,526 | ||||||||||||||||||
Apartments | 17 | 62 | 84 | 225 | 197 | 585 | ||||||||||||||||||
Mixed use | 24 | 32 | 40 | 118 | 116 | 330 | ||||||||||||||||||
Other | 4 | 126 | 13 | 48 | 30 | 221 | ||||||||||||||||||
Total amortized cost | $ | 223 | $ | 559 | $ | 791 | $ | 2,958 | $ | 2,325 | $ | 6,856 | ||||||||||||
% of total | 3 | % | 8 | % | 12 | % | 43 | % | 34 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 68 | % | 61 | % | 61 | % | 60 | % | 43 | % | 55 | % | ||||||||||||
December 31, 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 | $ | 102 | $ | 166 | $ | 405 | $ | 1,375 | $ | 726 | $ | 2,774 | ||||||||||||
Office | 67 | 109 | 167 | 593 | 590 | 1,526 | ||||||||||||||||||
Industrial | 9 | 64 | 82 | 599 | 666 | 1,420 | ||||||||||||||||||
Apartments | 17 | 62 | 84 | 225 | 197 | 585 | ||||||||||||||||||
Mixed use | 24 | 32 | 40 | 118 | 116 | 330 | ||||||||||||||||||
Other | 4 | 126 | 13 | 48 | 30 | 221 | ||||||||||||||||||
Total amortized cost | $ | 223 | $ | 559 | $ | 791 | $ | 2,958 | $ | 2,325 | $ | 6,856 | ||||||||||||
% of total | 3 | % | 8 | % | 12 | % | 43 | % | 34 | % | 100 | % | ||||||||||||
Weighted-average debt-to-value | 68 | % | 61 | % | 61 | % | 60 | % | 43 | % | 55 | % | ||||||||||||
Derivative assets | Derivative liabilities | |||||||||||||||||||
Fair value | Fair value | |||||||||||||||||||
(Amounts in millions) | Balance sheet classification | June 30, 2022 | December 31, 2021 | Balance sheet classification | June 30, 2022 | December 31, 2021 | ||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | Other invested assets | $ | 30 | $ | 364 | Other liabilities | $ | 342 | $ | 26 | ||||||||||
Foreign currency swaps | Other invested assets | 17 | 6 | Other liabilities | — | — | ||||||||||||||
Total cash flow hedges | 47 | 370 | 342 | 26 | ||||||||||||||||
Total derivatives designated as hedges | 47 | 370 | 342 | 26 | ||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Equity index options | Other invested assets | 30 | 42 | Other liabilities | — | — | ||||||||||||||
Financial futures | Other invested assets | — | — | Other liabilities | — | — | ||||||||||||||
Other foreign currency contracts | Other invested assets | — | 2 | Other liabilities | — | — | ||||||||||||||
GMWB embedded derivatives | Reinsurance recoverable (1) | 19 | 19 | Policyholder account balances (2) | 277 | 271 | ||||||||||||||
Fixed index annuity embedded derivatives | Other assets | — | — | Policyholder account balances (3) | 233 | 294 | ||||||||||||||
Indexed universal life embedded derivatives | Reinsurance recoverable | — | — | Policyholder account balances (4) | 16 | 25 | ||||||||||||||
Total derivatives not designated as hedges | 49 | 63 | 526 | 590 | ||||||||||||||||
Total derivatives | $ | 96 | $ | 433 | $ | 868 | $ | 616 | ||||||||||||
(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 classification | March 31, 2022 | December 31, 2021 | Balance sheet classification | March 31, 2022 | December 31, 2021 | ||||||||||||||||||
Derivatives designated as | ||||||||||||||||||||||||
hedges | ||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||
Interest rate swaps | Other invested assets | $ | 162 | $ | 364 | Other liabilities | $ | 76 | $ | 26 | ||||||||||||||
Foreign currency swaps | Other invested assets | 5 | 6 | Other liabilities | 1 | 0 | ||||||||||||||||||
Total cash flow hedges | 167 | 370 | 77 | 26 | ||||||||||||||||||||
Total derivatives designated as hedges | 167 | 370 | 77 | 26 | ||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||
Equity index options | Other invested assets | 30 | 42 | Other liabilities | 0 | �� | 0 | |||||||||||||||||
Financial futures | Other invested assets | 0 | 0 | Other liabilities | 0 | 0 | ||||||||||||||||||
Other foreign currency contracts | Other invested assets | 0 | 2 | Other liabilities | 0 | 0 | ||||||||||||||||||
GMWB embedded derivatives | Reinsurance recoverable (1) | | 17 | 19 | Policyholder account balances (2) | | 243 | 271 | ||||||||||||||||
Fixed index annuity embedded derivatives | Other assets | 0 | 0 | Policyholder account balances (3) | | 261 | 294 | |||||||||||||||||
Indexed universal life embedded derivatives | Reinsurance recoverable | | 0 | 0 | Policyholder account balances (4) | | 21 | 25 | ||||||||||||||||
Total derivatives not designated as hedges | 47 | 63 | 525 | 590 | ||||||||||||||||||||
Total derivatives | $ | 214 | $ | 433 | $ | 602 | $ | 616 | ||||||||||||||||
(Notional in millions) | Measurement | December 31, 2021 | Additions | Maturities/ terminations | March 31, 2022 | |||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | Notional | $ | 7,653 | $ | 0 | $ | (58 | ) | $ | 7,595 | ||||||||||
Foreign currency swaps | Notional | 127 | 0 | 0 | 127 | |||||||||||||||
Total cash flow hedges | 7,780 | 0 | (58 | ) | 7,722 | |||||||||||||||
Total derivatives designated as hedges | 7,780 | 0 | (58 | ) | 7,722 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Equity index options | Notional | 1,446 | 300 | (368 | ) | 1,378 | ||||||||||||||
Financial futures | Notional | 946 | 994 | (1,042 | ) | 898 | ||||||||||||||
Other foreign currency contracts | Notional | 83 | 0 | (59 | ) | 24 | ||||||||||||||
Total derivatives not designated as hedges | 2,475 | 1,294 | (1,469 | ) | 2,300 | |||||||||||||||
Total derivatives | $ | 10,255 | $ | 1,294 | $ | (1,527 | ) | $ | 10,022 | |||||||||||
(Number of policies) | Measurement | December 31, 2021 | Additions | Maturities/ terminations | March 31, 2022 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
GMWB embedded derivatives | Policies | 21,804 | 0 | (477 | ) | 21,327 | ||||||||||||||
Fixed index annuity embedded derivatives | Policies | 9,344 | 0 | (568 | ) | 8,776 | ||||||||||||||
Indexed universal life embedded derivatives | Policies | 806 | 0 | (7 | ) | 799 |
(Notional in millions) | Measurement | December 31, 2021 | Additions | Maturities/ terminations | June 30, 2022 | |||||||||||||||
Derivatives designated as hedges | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||
Interest rate swaps | Notional | $ | 7,653 | $ | 262 | $ | (102 | ) | $ | 7,813 | ||||||||||
Foreign currency swaps | Notional | 127 | — | — | 127 | |||||||||||||||
Total cash flow hedges | 7,780 | 262 | (102 | ) | 7,940 | |||||||||||||||
Total derivatives designated as hedges | 7,780 | 262 | (102 | ) | 7,940 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
Equity index options | Notional | 1,446 | 495 | (628 | ) | 1,313 | ||||||||||||||
Financial futures | Notional | 946 | 1,973 | (1,969 | ) | 950 | ||||||||||||||
Other foreign currency contracts | Notional | 83 | — | (83 | ) | — | ||||||||||||||
Total derivatives not designated as hedges | 2,475 | 2,468 | (2,680 | ) | 2,263 | |||||||||||||||
Total derivatives | $ | 10,255 | $ | 2,730 | $ | (2,782 | ) | $ | 10,203 | |||||||||||
(Number of policies) | Measurement | December 31, 2021 | Additions | Maturities/ terminations | June 30, 2022 | |||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||
GMWB embedded derivatives | Policies | 21,804 | — | (906 | ) | 20,898 | ||||||||||||||
Fixed index annuity embedded derivatives | Policies | 9,344 | — | (1,055 | ) | 8,289 | ||||||||||||||
Indexed universal life embedded derivatives | Policies | 806 | — | (20 | ) | 786 |
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||||||
Interest rate swaps hedging assets | $ | (250 | ) | $ | 55 | Net investment income | | $ | 0 | Net investment gains (losses) | | |||||||||
Interest rate swaps hedging assets | 0 | 2 | Net investment gains (losses) | | 0 | Net investment gains (losses) | | |||||||||||||
Interest rate swaps hedging liabilities | 0 | (1 | ) | Interest expense | | 0 | Net investment gains (losses) | | ||||||||||||
Foreign currency swaps | (2 | ) | 1 | Net investment income | | 0 | Net investment gains (losses) | | ||||||||||||
Total | $ | (252 | ) | $ | 57 | $ | 0 | |||||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | (405 | ) | $ | 57 | Net investment income | $ | — | Net investment gains (losses) | |||||||
Interest rate swaps hedging liabilities | — | (1 | ) | Interest expense | — | Net investment gains (losses) | ||||||||||
Foreign currency swaps | 14 | — | Net investment income | — | Net investment gains (losses) | |||||||||||
Total | $ | (391 | ) | $ | 56 | $ | — | |||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | (529 | ) | $ | 52 | Net investment income | $ | 0 | Net investment gains (losses) | |||||||
Interest rate swaps hedging liabilities | 44 | 0 | Interest expense | 0 | Net investment gains (losses) | |||||||||||
Foreign currency swaps | (2 | ) | 0 | Net investment income | 0 | Net investment gains (losses) | ||||||||||
Total | $ | (487 | ) | $ | 52 | $ | 0 | |||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | 314 | $ | 52 | Net investment income | $ | — | Net investment gains (losses) | ||||||||
Interest rate swaps hedging liabilities | (8 | ) | — | Interest expense | — | Net investment gains (losses) | ||||||||||
Foreign currency swaps | 3 | — | Net investment income | — | Net investment gains (losses) | |||||||||||
Total | $ | 309 | $ | 52 | $ | — | ||||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | (655 | ) | $ | 112 | Net investment income | $ | — | Net investment gains (losses) | |||||||
Interest rate swaps hedging assets | — | 2 | Net investment gains (losses) | — | Net investment gains (losses) | |||||||||||
Interest rate swaps hedging liabilities | — | (2 | ) | Interest expense | — | Net investment gains (losses) | ||||||||||
Foreign currency swaps | 12 | 1 | Net investment income | — | Net investment gains (losses) | |||||||||||
Total | $ | (643 | ) | $ | 113 | $ | — | |||||||||
(Amounts in millions) | Gain (loss) recognized in OCI | Gain (loss) reclassified into net income from OCI | Classification of gain (loss) reclassified into net income | Gain (loss) recognized in net income | Classification of gain (loss) recognized in net income | |||||||||||
Interest rate swaps hedging assets | $ | (215 | ) | $ | 104 | Net investment income | $ | — | Net investment gains (losses) | |||||||
Interest rate swaps hedging liabilities | 36 | — | Interest expense | — | Net investment gains (losses) | |||||||||||
Foreign currency swaps | 1 | — | Net investment income | — | Net investment gains (losses) | |||||||||||
Total | $ | (178 | ) | $ | 104 | $ | — | |||||||||
Three months ended March 31, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Derivatives qualifying as effective accounting hedges as of January 1 | $ | 2,025 | $ | 2,211 | ||||
Current period increases (decreases) in fair value, net of deferred taxes of $53 and $102 | (199 | ) | (385 | ) | ||||
Reclassification to net (income), net of deferred taxes of $20 and $18 | (37 | ) | (34 | ) | ||||
Derivatives qualifying as effective accounting hedges as of March 31 | $ | 1,789 | $ | 1,792 | ||||
Three months ended June 30, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Derivatives qualifying as effective accounting hedges as of April 1 | $ | 1,789 | $ | 1,792 | ||||
Current period increases (decreases) in fair value, net of deferred taxes of $84 and $(64) | (307 | ) | 245 | |||||
Reclassification to net (income), net of deferred taxes of $19 and $18 | (37 | ) | (34 | ) | ||||
Derivatives qualifying as effective accounting hedges as of June 30 | $ | 1,445 | $ | 2,003 | ||||
Six months ended June 30, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Derivatives qualifying as effective accounting hedges as of January 1 | $ | 2,025 | $ | 2,211 | ||||
Current period increases (decreases) in fair value, net of deferred taxes of $137 and $38 | (506 | ) | (140 | ) | ||||
Reclassification to net (income), net of deferred taxes of $39 and $36 | (74 | ) | (68 | ) | ||||
Derivatives qualifying as effective accounting hedges as of June 30 | $ | 1,445 | $ | 2,003 | ||||
Three months ended March 31, | Classification of gain (loss) recognized in net income | |||||||||
(Amounts in millions) | 2022 | 2021 | ||||||||
Interest rate swaps | $ | 0 | $ | 4 | Net investment gains (losses) | |||||
Equity index options | (6 | ) | 3 | Net investment gains (losses) | ||||||
Financial futures | (47 | ) | (110 | ) | Net investment gains (losses) | |||||
GMWB embedded derivatives | 32 | 105 | Net investment gains (losses) | |||||||
Fixed index annuity embedded derivatives | 12 | (4 | ) | Net investment gains (losses) | ||||||
Indexed universal life embedded derivatives | 11 | 10 | Net investment gains (losses) | |||||||
Total derivatives not designated as hedges | $ | 2 | $ | 8 | ||||||
Three months ended June 30, | Classification of gain (loss) recognized in net income | |||||||||||
(Amounts in millions) | 2022 | 2021 | ||||||||||
Interest rate swaps | $ | — | $ | (1 | ) | Net investment gains (losses) | ||||||
Equity index options | (1 | ) | 6 | Net investment gains (losses) | ||||||||
Financial futures | 17 | 8 | Net investment gains (losses) | |||||||||
GMWB embedded derivatives | (26 | ) | 2 | Net investment gains (losses) | ||||||||
Fixed index annuity embedded derivatives | 11 | (14 | ) | Net investment gains (losses) | ||||||||
Indexed universal life embedded derivatives | 8 | 3 | Net investment gains (losses) | |||||||||
Total derivatives not designated as hedges | $ | 9 | $ | 4 | ||||||||
Six months ended June 30, | Classification of gain (loss) recognized in net income | |||||||||||
(Amounts in millions) | 2022 | 2021 | ||||||||||
Interest rate swaps | $ | — | $ | 3 | Net investment gains (losses) | |||||||
Equity index options | (7 | ) | 9 | Net investment gains (losses) | ||||||||
Financial futures | (30 | ) | (102 | ) | Net investment gains (losses) | |||||||
GMWB embedded derivatives | 6 | 107 | Net investment gains (losses) | |||||||||
Fixed index annuity embedded derivatives | 23 | (18 | ) | Net investment gains (losses) | ||||||||
Indexed universal life embedded derivatives | 19 | 13 | Net investment gains (losses) | |||||||||
Total derivatives not designated as hedges | $ | 11 | $ | 12 | ||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||
(Amounts in millions) | 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 | $ | 198 | $ | 77 | $ | 121 | $ | 414 | $ | 26 | $ | 388 | ||||||||||||
Gross amounts offset in the balance sheet | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Net amounts presented in the balance sheet | 198 | 77 | 121 | 414 | 26 | 388 | ||||||||||||||||||
Gross amounts not offset in the balance sheet: | ||||||||||||||||||||||||
Financial instruments (2) | (49 | ) | (49 | ) | 0 | (20 | ) | (20 | ) | 0 | ||||||||||||||
Collateral received | (110 | ) | 0 | (110 | ) | (308 | ) | 0 | (308 | ) | ||||||||||||||
Collateral pledged | 0 | (567 | ) | 567 | 0 | (536 | ) | 536 | ||||||||||||||||
Over collateralization | 13 | 539 | (526 | ) | 2 | 530 | (528 | ) | ||||||||||||||||
Net amount | $ | 52 | $ | 0 | $ | 52 | $ | 88 | $ | 0 | $ | 88 | ||||||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||
(Amounts in millions) | 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 | $ | 77 | $ | 342 | $ | (265 | ) | $ | 414 | $ | 26 | $ | 388 | |||||||||||
Gross amounts offset in the balance sheet | — | — | — | — | — | — | ||||||||||||||||||
Net amounts presented in the balance sheet | 77 | 342 | (265 | ) | 414 | 26 | 388 | |||||||||||||||||
Gross amounts not offset in the balance sheet: | ||||||||||||||||||||||||
Financial instruments (2) | (24 | ) | (24 | ) | — | (20 | ) | (20 | ) | — | ||||||||||||||
Collateral received | (41 | ) | — | (41 | ) | (308 | ) | — | (308 | ) | ||||||||||||||
Collateral pledged | — | (825 | ) | 825 | — | (536 | ) | 536 | ||||||||||||||||
Over collateralization | — | 507 | (507 | ) | 2 | 530 | (528 | ) | ||||||||||||||||
Net amount | $ | 12 | $ | — | $ | 12 | $ | 88 | $ | — | $ | 88 | ||||||||||||
(1) |
(2) | 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 counterparty. |
(Amounts in millions) | Fair value | Primary methodologies | Significant inputs | |||||
U.S. government, agencies | $ | 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 | $ | 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 | $ | 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 | $ | 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 | $ | 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 | $ | 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 | $ | Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial | 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 | $ | 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 |
• | Internal models: A portion of our state and political subdivisions, U.S. corporate, non-U.S. corporate, residential mortgage-backed and other asset-backed securities are valued using internal models. The primary inputs to the valuation of the bond population include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, duration, call provisions, issuer rating, benchmark yields and credit spreads. Certain private fixed maturity securities are valued using an internal model using market observable inputs such as the interest rate yield curve, as well as published credit spreads for similar securities, which includes significant unobservable inputs. Additionally, we may apply certain price caps and liquidity premiums in the valuation of private fixed maturity securities. Price caps are established using inputs from market participants. For structured securities, the primary inputs to the valuation include quoted prices for identical assets, or similar assets in markets that are not active, contractual cash flows, weighted-average coupon, weighted-average maturity, issuer rating, structure of the security, expected prepayment speeds and volumes, collateral type, current and forecasted loss severity, average delinquency rates, vintage of the loans, geographic region, debt service coverage ratios, payment priority with the tranche, benchmark yields and credit spreads. The fair value of our Level 3 fixed maturity securities priced using internal models was $ 3,019 million as of June 30, 2022. |
March 31, 2022 | June 30, 2022 | |||||||||||||||||||||||||||||||||||||||
(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 | $ | 4,097 | $ | 0 | $ | 4,097 | $ | 0 | $ | 0 | $ | 3,627 | $ | — | $ | 3,627 | $ | — | $ | — | ||||||||||||||||||||
State and political subdivisions | 3,134 | 0 | 3,063 | 71 | 0 | 2,849 | — | 2,786 | 63 | — | ||||||||||||||||||||||||||||||
Non-U.S. government | 784 | 0 | 783 | 1 | 0 | 682 | — | 679 | 3 | — | ||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,634 | 0 | 3,722 | 912 | 0 | 4,103 | — | 3,293 | 810 | — | ||||||||||||||||||||||||||||||
Energy | 2,699 | 0 | 2,627 | 72 | 0 | 2,377 | — | 2,255 | 122 | — | ||||||||||||||||||||||||||||||
Finance and insurance | 8,229 | 0 | 7,553 | 676 | 0 | 7,469 | — | 6,815 | 654 | — | ||||||||||||||||||||||||||||||
Consumer—non-cyclical | 5,488 | 0 | 5,396 | 92 | 0 | 4,792 | — | 4,706 | 86 | — | ||||||||||||||||||||||||||||||
Technology and communications | 3,497 | 0 | 3,469 | 28 | 0 | 3,024 | — | 2,999 | 25 | — | ||||||||||||||||||||||||||||||
Industrial | 1,348 | 0 | 1,313 | 35 | 0 | 1,187 | — | 1,154 | 33 | — | ||||||||||||||||||||||||||||||
Capital goods | 2,512 | 0 | 2,471 | 41 | 0 | 2,258 | — | 2,220 | 38 | — | ||||||||||||||||||||||||||||||
Consumer—cyclical | 1,767 | 0 | 1,640 | 127 | 0 | 1,581 | — | 1,462 | 119 | — | ||||||||||||||||||||||||||||||
Transportation | 1,248 | 0 | 1,184 | 64 | 0 | 1,104 | — | 1,048 | 56 | — | ||||||||||||||||||||||||||||||
Other | 401 | 0 | 179 | 222 | 0 | 348 | — | 141 | 207 | — | ||||||||||||||||||||||||||||||
Total U.S. corporate | 31,823 | 0 | 29,554 | 2,269 | 0 | 28,243 | — | 26,093 | 2,150 | — | ||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 878 | 0 | 544 | 334 | 0 | 810 | — | 501 | 309 | — | ||||||||||||||||||||||||||||||
Energy | 1,241 | 0 | 1,103 | 138 | 0 | 1,097 | — | 964 | 133 | — | ||||||||||||||||||||||||||||||
Finance and insurance | 2,191 | 0 | 2,048 | 143 | 0 | 2,012 | — | 1,880 | 132 | — | ||||||||||||||||||||||||||||||
Consumer—non-cyclical | 671 | 0 | 611 | 60 | 0 | 570 | — | 503 | 67 | — | ||||||||||||||||||||||||||||||
Technology and communications | 1,099 | 0 | 1,072 | 27 | 0 | 943 | — | 917 | 26 | — | ||||||||||||||||||||||||||||||
Industrial | 953 | 0 | 879 | 74 | 0 | 861 | — | 792 | 69 | — | ||||||||||||||||||||||||||||||
Capital goods | 619 | 0 | 487 | 132 | 0 | 565 | — | 450 | 115 | — | ||||||||||||||||||||||||||||||
Consumer—cyclical | 312 | 0 | 226 | 86 | 0 | 285 | — | 206 | 79 | — | ||||||||||||||||||||||||||||||
Transportation | 423 | 0 | 401 | 22 | 0 | 390 | — | 369 | 21 | — | ||||||||||||||||||||||||||||||
Other | 1,066 | 0 | 1,042 | 24 | 0 | 949 | — | 927 | 22 | — | ||||||||||||||||||||||||||||||
Total non-U.S. corporate | 9,453 | 0 | 8,413 | 1,040 | 0 | 8,482 | — | 7,509 | 973 | — | ||||||||||||||||||||||||||||||
Residential mortgage-backed | 1,320 | 0 | 1,287 | 33 | 0 | 1,213 | — | 1,183 | 30 | — | ||||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,361 | 0 | 2,346 | 15 | 0 | 2,137 | — | 2,123 | 14 | — | ||||||||||||||||||||||||||||||
Other asset-backed | 2,055 | 0 | 1,955 | 100 | 0 | 2,053 | — | 1,924 | 129 | — | ||||||||||||||||||||||||||||||
Total fixed maturity securities | 55,027 | 0 | 51,498 | 3,529 | 0 | 49,286 | — | 45,924 | 3,362 | — | ||||||||||||||||||||||||||||||
Equity securities | 230 | 137 | 57 | 36 | 0 | 243 | 158 | 50 | 35 | — | ||||||||||||||||||||||||||||||
Limited partnerships | 1,558 | 0 | 0 | 26 | 1,532 | 1,649 | — | — | 23 | 1,626 | ||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 162 | 0 | 162 | 0 | 0 | 30 | — | 30 | — | — | ||||||||||||||||||||||||||||||
Foreign currency swaps | 5 | 0 | 5 | 0 | 0 | 17 | — | 17 | — | — | ||||||||||||||||||||||||||||||
Equity index options | 30 | 0 | 0 | 30 | 0 | 30 | — | — | 30 | — | ||||||||||||||||||||||||||||||
Total derivative assets | 197 | 0 | 167 | 30 | 0 | 77 | — | 47 | 30 | — | ||||||||||||||||||||||||||||||
Short-term investments | 76 | 0 | 76 | 0 | 0 | 50 | — | 50 | — | — | ||||||||||||||||||||||||||||||
Total other invested assets | 273 | 0 | 243 | 30 | 0 | 127 | — | 97 | 30 | — | ||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 17 | 0 | 0 | 17 | 0 | 19 | — | — | 19 | — | ||||||||||||||||||||||||||||||
Separate account assets | 5,530 | 5,530 | 0 | 0 | 0 | 4,683 | 4,683 | — | — | — | ||||||||||||||||||||||||||||||
Total assets | $ | 62,635 | $ | 5,667 | $ | 51,798 | $ | 3,638 | $ | 1,532 | $ | 56,007 | $ | 4,841 | $ | 46,071 | $ | 3,469 | $ | 1,626 | ||||||||||||||||||||
(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, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
(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 | $ | 4,552 | $ | 0 | $ | 4,552 | $ | 0 | $ | 0 | $ | 4,552 | $ | — | $ | 4,552 | $ | — | $ | — | ||||||||||||||||||||
State and political subdivisions | 3,450 | 0 | 3,368 | 82 | 0 | 3,450 | — | 3,368 | 82 | — | ||||||||||||||||||||||||||||||
Non-U.S. government | 835 | 0 | 833 | 2 | 0 | 835 | — | 833 | 2 | — | ||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 5,104 | 0 | 4,154 | 950 | 0 | 5,104 | — | 4,154 | 950 | — | ||||||||||||||||||||||||||||||
Energy | 2,934 | 0 | 2,858 | 76 | 0 | 2,934 | — | 2,858 | 76 | — | ||||||||||||||||||||||||||||||
Finance and insurance | 8,991 | 0 | 8,306 | 685 | 0 | 8,991 | — | 8,306 | 685 | — | ||||||||||||||||||||||||||||||
Consumer—non-cyclical | 6,159 | 0 | 6,055 | 104 | 0 | 6,159 | — | 6,055 | 104 | — | ||||||||||||||||||||||||||||||
Technology and communications | 3,808 | 0 | 3,779 | 29 | 0 | 3,808 | — | 3,779 | 29 | — | ||||||||||||||||||||||||||||||
Industrial | 1,494 | 0 | 1,457 | 37 | 0 | 1,494 | — | 1,457 | 37 | — | ||||||||||||||||||||||||||||||
Capital goods | 2,745 | 0 | 2,700 | 45 | 0 | 2,745 | — | 2,700 | 45 | — | ||||||||||||||||||||||||||||||
Consumer—cyclical | 1,899 | 0 | 1,762 | 137 | 0 | 1,899 | — | 1,762 | 137 | — | ||||||||||||||||||||||||||||||
Transportation | 1,371 | 0 | 1,307 | 64 | 0 | 1,371 | — | 1,307 | 64 | — | ||||||||||||||||||||||||||||||
Other | 419 | 0 | 165 | 254 | 0 | 419 | — | 165 | 254 | — | ||||||||||||||||||||||||||||||
Total U.S. corporate | 34,924 | 0 | 32,543 | 2,381 | 0 | 34,924 | — | 32,543 | 2,381 | — | ||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 928 | 0 | 583 | 345 | 0 | 928 | — | 583 | 345 | — | ||||||||||||||||||||||||||||||
Energy | 1,383 | 0 | 1,238 | 145 | 0 | 1,383 | — | 1,238 | 145 | — | ||||||||||||||||||||||||||||||
Finance and insurance | 2,432 | 0 | 2,272 | 160 | 0 | 2,432 | — | 2,272 | 160 | — | ||||||||||||||||||||||||||||||
Consumer—non-cyclical | 743 | 0 | 680 | 63 | 0 | 743 | — | 680 | 63 | — | ||||||||||||||||||||||||||||||
Technology and communications | 1,250 | 0 | 1,222 | 28 | 0 | 1,250 | — | 1,222 | 28 | — | ||||||||||||||||||||||||||||||
Industrial | 1,047 | 0 | 954 | 93 | 0 | 1,047 | — | 954 | 93 | — | ||||||||||||||||||||||||||||||
Capital goods | 705 | 0 | 532 | 173 | 0 | 705 | — | 532 | 173 | — | ||||||||||||||||||||||||||||||
Consumer—cyclical | 341 | 0 | 265 | 76 | 0 | 341 | — | 265 | 76 | — | ||||||||||||||||||||||||||||||
Transportation | 489 | 0 | 436 | 53 | 0 | 489 | — | 436 | 53 | — | ||||||||||||||||||||||||||||||
Other | 1,217 | 0 | 1,191 | 26 | 0 | 1,217 | — | 1,191 | 26 | — | ||||||||||||||||||||||||||||||
Total non-U.S. corporate | 10,535 | 0 | 9,373 | 1,162 | 0 | 10,535 | — | 9,373 | 1,162 | — | ||||||||||||||||||||||||||||||
Residential mortgage-backed | 1,440 | 0 | 1,413 | 27 | 0 | 1,440 | — | 1,413 | 27 | — | ||||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,584 | 0 | 2,568 | 16 | 0 | 2,584 | — | 2,568 | 16 | — | ||||||||||||||||||||||||||||||
Other asset-backed | 2,160 | 0 | 2,022 | 138 | 0 | 2,160 | — | 2,022 | 138 | — | ||||||||||||||||||||||||||||||
Total fixed maturity securities | 60,480 | 0 | 56,672 | 3,808 | 0 | 60,480 | — | 56,672 | 3,808 | — | ||||||||||||||||||||||||||||||
Equity securities | 198 | 101 | 60 | 37 | 0 | 198 | 101 | 60 | 37 | — | ||||||||||||||||||||||||||||||
Limited partnerships | 1,462 | 0 | 0 | 26 | 1,436 | 1,462 | — | — | 26 | 1,436 | ||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 364 | 0 | 364 | 0 | 0 | 364 | — | 364 | — | — | ||||||||||||||||||||||||||||||
Foreign currency swaps | 6 | 0 | 6 | 0 | 0 | 6 | — | 6 | — | — | ||||||||||||||||||||||||||||||
Equity index options | 42 | 0 | 0 | 42 | 0 | 42 | — | — | 42 | — | ||||||||||||||||||||||||||||||
Other foreign currency contracts | 2 | 0 | 2 | 0 | 0 | 2 | — | 2 | — | — | ||||||||||||||||||||||||||||||
Total derivative assets | 414 | 0 | 372 | 42 | 0 | 414 | — | 372 | 42 | — | ||||||||||||||||||||||||||||||
Short-term investments | 26 | 0 | 26 | 0 | 0 | 26 | — | 26 | — | — | ||||||||||||||||||||||||||||||
Total other invested assets | 440 | 0 | 398 | 42 | 0 | 440 | — | 398 | 42 | — | ||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 19 | 0 | 0 | 19 | 0 | 19 | — | — | 19 | — | ||||||||||||||||||||||||||||||
Separate account assets | 6,066 | 6,066 | 0 | 0 | 0 | 6,066 | 6,066 | — | — | — | ||||||||||||||||||||||||||||||
Total assets | $ | 68,665 | $ | 6,167 | $ | 57,130 | $ | 3,932 | $ | 1,436 | $ | 68,665 | $ | 6,167 | $ | 57,130 | $ | 3,932 | $ | 1,436 | ||||||||||||||||||||
(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. |
Beginning balance as of January 1, 2022 | Total realized and unrealized gains (losses) | Ending balance as of March 31, 2022 | Total gains (losses) attributable to assets still held | Beginning balance as of April 1, 2022 | Total realized and unrealized gains (losses) | Ending balance as of June 30, 2022 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1 ) | Included in net income | Included in OCI | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 82 | $ | 1 | $ | (12 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 71 | $ | 1 | $ | (12 | ) | $ | 71 | $ | 1 | $ | (9 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 63 | $ | 1 | $ | (9 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government | 2 | 0 | 0 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | — | — | 2 | — | — | — | — | — | 3 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 950 | 0 | (73 | ) | 35 | 0 | 0 | 0 | 0 | 0 | 912 | 0 | (73 | ) | 912 | — | (92 | ) | — | — | — | (1 | ) | 2 | (11 | ) | 810 | — | (92 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | 76 | 0 | (4 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 72 | 0 | (4 | ) | 72 | — | (11 | ) | — | — | — | (7 | ) | 68 | — | 122 | — | (11 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance | 685 | 0 | (56 | ) | 66 | 0 | 0 | (2 | ) | 0 | (17 | ) | 676 | 0 | (55 | ) | 676 | — | (67 | ) | 85 | — | — | (1 | ) | — | (39 | ) | 654 | — | (61 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 104 | 0 | (5 | ) | 0 | 0 | 0 | (7 | ) | 0 | 0 | 92 | 0 | (6 | ) | 92 | — | (6 | ) | — | — | — | — | — | — | 86 | — | (5 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications | 29 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | (1 | ) | 28 | — | (3 | ) | — | — | — | — | — | — | 25 | — | (3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 37 | 0 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 35 | 0 | (2 | ) | 35 | — | (2 | ) | — | — | — | — | — | — | 33 | — | (2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods | 45 | 0 | (4 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 41 | 0 | (3 | ) | 41 | — | (3 | ) | — | — | — | — | — | — | 38 | — | (3 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 137 | 0 | (8 | ) | 0 | 0 | 0 | (2 | ) | 0 | 0 | 127 | 0 | (8 | ) | 127 | — | (7 | ) | — | — | — | (1 | ) | — | — | 119 | — | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | 64 | 0 | (3 | ) | 5 | 0 | 0 | (2 | ) | 0 | 0 | 64 | 0 | (3 | ) | 64 | — | (3 | ) | — | — | — | (1 | ) | — | (4 | ) | 56 | — | (3 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 254 | 0 | (11 | ) | 0 | 0 | 0 | (4 | ) | 0 | (17 | ) | 222 | 0 | (10 | ) | 222 | — | (12 | ) | — | — | — | (3 | ) | — | — | 207 | — | (12 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,381 | 0 | (167 | ) | 106 | 0 | 0 | (17 | ) | 0 | (34 | ) | 2,269 | 0 | (165 | ) | 2,269 | — | (206 | ) | 85 | — | — | (14 | ) | 70 | (54 | ) | 2,150 | — | (199 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 345 | 0 | (21 | ) | 10 | 0 | 0 | 0 | 0 | 0 | 334 | 0 | (21 | ) | 334 | — | (25 | ) | — | — | — | — | — | — | 309 | — | (24 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Energy | 145 | 0 | (7 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 138 | 0 | (7 | ) | 138 | — | (7 | ) | 3 | — | — | (1 | ) | — | — | 133 | — | (8 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance and insurance | 160 | 1 | (18 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 143 | 1 | (18 | ) | 143 | 1 | (12 | ) | — | — | — | — | — | — | 132 | 1 | (12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 63 | 0 | (3 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 60 | 0 | (3 | ) | 60 | — | (4 | ) | — | — | — | — | 11 | — | 67 | — | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Technology and communications | 28 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 27 | 0 | (1 | ) | 27 | — | (1 | ) | — | — | — | — | — | — | 26 | — | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 93 | 0 | (6 | ) | 0 | 0 | 0 | 0 | 0 | (13 | ) | 74 | 0 | (4 | ) | 74 | — | (4 | ) | — | — | — | — | — | (1 | ) | 69 | — | (5 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital goods | 173 | 0 | (8 | ) | 0 | 0 | 0 | (33 | ) | 0 | 0 | 132 | 0 | (8 | ) | 132 | — | (7 | ) | — | (10 | ) | — | — | — | — | 115 | — | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 76 | 0 | (7 | ) | 0 | 0 | 0 | 0 | 17 | 0 | 86 | 0 | (7 | ) | 86 | — | (7 | ) | — | — | — | — | — | — | 79 | — | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transportation | 53 | 0 | (2 | ) | 0 | 0 | 0 | (29 | ) | 0 | 0 | 22 | 0 | (2 | ) | 22 | — | (1 | ) | — | — | — | — | — | — | 21 | — | (1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 26 | 0 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 24 | 0 | (2 | ) | 24 | — | (2 | ) | — | — | — | — | — | — | 22 | — | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,162 | 1 | (75 | ) | 10 | 0 | 0 | (62 | ) | 17 | (13 | ) | 1,040 | 1 | (73 | ) | 1,040 | 1 | (70 | ) | 3 | (10 | ) | — | (1 | ) | 11 | (1 | ) | 973 | 1 | (70 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 27 | 0 | (1 | ) | 9 | 0 | 0 | (1 | ) | 4 | (5 | ) | 33 | 0 | 0 | 33 | — | (2 | ) | 4 | — | — | (1 | ) | — | (4 | ) | 30 | — | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 16 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 15 | 0 | (1 | ) | 15 | — | (1 | ) | — | — | — | — | — | — | 14 | — | (2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed | 138 | 0 | (7 | ) | 6 | 0 | 0 | (3 | ) | 0 | (34 | ) | 100 | 0 | (5 | ) | 100 | — | (5 | ) | 40 | (6 | ) | — | — | — | — | 129 | — | (5 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,808 | 2 | (263 | ) | 131 | (1 | ) | 0 | (83 | ) | 21 | (86 | ) | 3,529 | 2 | (256 | ) | 3,529 | 2 | (293 | ) | 134 | (16 | ) | — | (16 | ) | 81 | (59 | ) | 3,362 | 2 | (287 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | 37 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1 | ) | 36 | 0 | 0 | 36 | — | — | — | (1 | ) | — | — | — | — | 35 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited partnerships | 26 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 26 | 0 | 0 | 26 | (3 | ) | — | — | — | — | — | — | — | 23 | (3 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 42 | (6 | ) | 0 | 5 | 0 | 0 | (11 | ) | 0 | 0 | 30 | (3 | ) | 0 | 30 | (1 | ) | — | 3 | — | — | (2 | ) | — | — | 30 | (4 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivative assets | 42 | (6 | ) | 0 | 5 | 0 | 0 | (11 | ) | 0 | 0 | 30 | (3 | ) | 0 | 30 | (1 | ) | — | 3 | — | — | (2 | ) | — | — | 30 | (4 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other invested assets | 42 | (6 | ) | 0 | 5 | 0 | 0 | (11 | ) | 0 | 0 | 30 | (3 | ) | 0 | 30 | (1 | ) | — | 3 | — | — | (2 | ) | — | — | 30 | (4 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 19 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17 | (2 | ) | 0 | 17 | 2 | — | — | — | — | — | — | — | 19 | 2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,932 | $ | (6 | ) | $ | (263 | ) | $ | 136 | $ | (1 | ) | $ | 0 | $ | (94 | ) | $ | 21 | $ | (87 | ) | $ | 3,638 | $ | (3 | ) | $ | (256 | ) | $ | 3,638 | $ | — | $ | (293 | ) | $ | 137 | $ | (17 | ) | $ | — | $ | (18 | ) | $ | 81 | $ | (59 | ) | $ | 3,469 | $ | (3 | ) | $ | (287 | ) | |||||||||||||||||||||||||||||||||||
(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. |
Beginning balance as of January 1, 2021 | Total realized and unrealized gains (losses) | Ending balance as of March 31, 2021 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 66 | $ | 1 | $ | 1 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 68 | $ | 1 | $ | 1 | ||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 842 | 0 | (30 | ) | 8 | 0 | 0 | (13 | ) | 0 | (14 | ) | 793 | 0 | (29 | ) | ||||||||||||||||||||||||||||||||
Energy | 128 | 0 | (4 | ) | 0 | 0 | 0 | (2 | ) | 0 | 0 | 122 | 0 | (4 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 607 | 0 | (22 | ) | 18 | 0 | 0 | (17 | ) | 17 | (6 | ) | 597 | 0 | (22 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 109 | 0 | (3 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 106 | 0 | (3 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 47 | 0 | (2 | ) | 12 | 0 | 0 | 0 | 4 | (21 | ) | 40 | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
Industrial | 40 | 0 | 0 | 0 | 0 | 0 | (20 | ) | 0 | 0 | 20 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Capital goods | 60 | 0 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 58 | 0 | (2 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 150 | 0 | (2 | ) | 0 | 0 | 0 | (1 | ) | 0 | 0 | 147 | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
Transportation | 70 | 0 | (1 | ) | 0 | 0 | 0 | (2 | ) | 0 | 0 | 67 | 0 | (1 | ) | |||||||||||||||||||||||||||||||||
Other | 219 | 0 | (2 | ) | 0 | 0 | 0 | (3 | ) | 6 | (20 | ) | 200 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,272 | 0 | (68 | ) | 38 | 0 | 0 | (58 | ) | 27 | (61 | ) | 2,150 | 0 | (66 | ) | ||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 352 | 0 | (7 | ) | 30 | 0 | 0 | 0 | 0 | 0 | 375 | 0 | (7 | ) | ||||||||||||||||||||||||||||||||||
Energy | 245 | 0 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 243 | 0 | (2 | ) | ||||||||||||||||||||||||||||||||||
Finance and insurance | 305 | 1 | (16 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 290 | 1 | (16 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 67 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 66 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Industrial | 95 | 0 | (2 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 93 | 0 | (2 | ) | ||||||||||||||||||||||||||||||||||
Capital goods | 178 | 0 | (3 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 175 | 0 | (3 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 146 | 0 | (2 | ) | 16 | 0 | 0 | 0 | 0 | (16 | ) | 144 | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
Transportation | 109 | 0 | (1 | ) | 0 | 0 | 0 | (19 | ) | 0 | (7 | ) | 82 | 0 | (1 | ) | ||||||||||||||||||||||||||||||||
Other | 83 | 0 | (2 | ) | 0 | 0 | 0 | (1 | ) | 0 | 0 | 80 | 0 | (2 | ) | |||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,608 | 1 | (36 | ) | 46 | 0 | 0 | (20 | ) | 0 | (23 | ) | 1,576 | 1 | (36 | ) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed | 14 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 13 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 20 | 0 | (1 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 19 | 0 | (2 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 109 | 0 | 0 | 3 | 0 | 0 | (4 | ) | 2 | (14 | ) | 96 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 4,089 | 2 | (105 | ) | 87 | 0 | 0 | (82 | ) | 29 | (98 | ) | 3,922 | 2 | (103 | ) | ||||||||||||||||||||||||||||||||
Equity securities | 51 | 0 | 0 | 0 | (8 | ) | 0 | 0 | 0 | 0 | 43 | 0 | 0 | |||||||||||||||||||||||||||||||||||
Limited partnerships | 17 | 0 | 0 | 8 | 0 | 0 | 0 | 0 | 0 | 25 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 63 | 3 | 0 | 5 | 0 | 0 | (18 | ) | 0 | 0 | 53 | 2 | 0 | |||||||||||||||||||||||||||||||||||
Total derivative assets | 63 | 3 | 0 | 5 | 0 | 0 | (18 | ) | 0 | 0 | 53 | 2 | 0 | |||||||||||||||||||||||||||||||||||
Total other invested assets | 63 | 3 | 0 | 5 | 0 | 0 | (18 | ) | 0 | 0 | 53 | 2 | 0 | |||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 26 | (8 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18 | (8 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,246 | $ | (3 | ) | $ | (105 | ) | $ | 100 | $ | (8 | ) | $ | 0 | $ | (100 | ) | $ | 29 | $ | (98 | ) | $ | 4,061 | $ | (4 | ) | $ | (103 | ) | |||||||||||||||||
Beginning balance as of April 1, 2021 | Total realized and unrealized gains (losses) | Ending balance as of June 30, 2021 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 68 | $ | 1 | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 75 | $ | 1 | $ | 6 | ||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 793 | — | 23 | 8 | — | — | (1 | ) | 19 | — | 842 | — | 23 | |||||||||||||||||||||||||||||||||||
Energy | 122 | — | 8 | — | — | — | (1 | ) | — | (52 | ) | 77 | — | 4 | ||||||||||||||||||||||||||||||||||
Finance and insurance | 597 | — | 17 | 55 | — | — | (8 | ) | — | — | 661 | — | 17 | |||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 106 | — | 2 | — | — | — | (2 | ) | 3 | — | 109 | — | 1 | |||||||||||||||||||||||||||||||||||
Technology and communications | 40 | — | 2 | — | — | — | — | — | (12 | ) | 30 | — | 1 | |||||||||||||||||||||||||||||||||||
Industrial | 20 | — | — | — | — | — | — | — | — | 20 | — | — | ||||||||||||||||||||||||||||||||||||
Capital goods | 58 | — | 1 | — | — | — | — | — | — | 59 | — | 1 | ||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 147 | — | 1 | — | — | — | (1 | ) | — | (8 | ) | 139 | — | 1 | ||||||||||||||||||||||||||||||||||
Transportation | 67 | — | 1 | — | — | — | (1 | ) | — | — | 67 | — | 1 | |||||||||||||||||||||||||||||||||||
Other | 200 | — | — | — | — | — | (2 | ) | — | — | 198 | — | 1 | |||||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,150 | — | 55 | 63 | — | — | (16 | ) | 22 | (72 | ) | 2,202 | — | 50 | ||||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 375 | — | 5 | — | — | — | (8 | ) | — | (24 | ) | 348 | — | 4 | ||||||||||||||||||||||||||||||||||
Energy | 243 | — | 10 | — | — | — | (22 | ) | — | (79 | ) | 152 | — | 5 | ||||||||||||||||||||||||||||||||||
Finance and insurance | 290 | — | 17 | — | (2 | ) | — | (52 | ) | — | (51 | ) | 202 | 1 | 5 | |||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 66 | — | — | 8 | — | — | — | — | — | 74 | — | — | ||||||||||||||||||||||||||||||||||||
Technology and communications | 28 | — | — | — | — | — | — | — | — | 28 | — | — | ||||||||||||||||||||||||||||||||||||
Industrial | 93 | — | 1 | — | — | — | — | — | — | 94 | — | 1 | ||||||||||||||||||||||||||||||||||||
Capital goods | 175 | — | 1 | 5 | — | — | — | — | — | 181 | — | 2 | ||||||||||||||||||||||||||||||||||||
Consumer—cyclical | 144 | — | 2 | 1 | — | — | — | — | — | 147 | — | 2 | ||||||||||||||||||||||||||||||||||||
Transportation | 82 | — | 1 | — | — | — | — | — | — | 83 | — | 2 | ||||||||||||||||||||||||||||||||||||
Other | 80 | — | 1 | — | — | — | (13 | ) | — | (15 | ) | 53 | — | 1 | ||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,576 | — | 38 | 14 | (2 | ) | — | (95 | ) | — | (169 | ) | 1,362 | 1 | 22 | |||||||||||||||||||||||||||||||||
Residential mortgage-backed | 13 | — | 1 | — | — | — | (1 | ) | — | — | 13 | — | — | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 19 | — | — | 1 | — | — | — | — | — | 20 | — | 1 | ||||||||||||||||||||||||||||||||||||
Other asset-backed | 96 | — | 1 | — | — | — | (5 | ) | — | (4 | ) | 88 | — | 1 | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,922 | 1 | 101 | 78 | (2 | ) | — | (117 | ) | 22 | (245 | ) | 3,760 | 2 | 80 | |||||||||||||||||||||||||||||||||
Equity securities | 43 | — | — | — | — | — | (5 | ) | — | — | 38 | — | — | |||||||||||||||||||||||||||||||||||
Limited partnerships | 25 | 1 | — | — | — | — | — | — | — | 26 | 1 | — | ||||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 53 | 6 | — | 5 | — | — | (17 | ) | — | — | 47 | 2 | — | |||||||||||||||||||||||||||||||||||
Total derivative assets | 53 | 6 | — | 5 | — | — | (17 | ) | — | — | 47 | 2 | — | |||||||||||||||||||||||||||||||||||
Total other invested assets | 53 | 6 | — | 5 | — | — | (17 | ) | — | — | 47 | 2 | — | |||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 18 | (1 | ) | — | — | — | 1 | — | — | — | 18 | (1 | ) | — | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,061 | $ | 7 | $ | 101 | $ | 83 | $ | (2 | ) | $ | 1 | $ | (139 | ) | $ | 22 | $ | (245 | ) | $ | 3,889 | $ | 4 | $ | 80 | |||||||||||||||||||||
(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. |
Beginning balance as of January 1, 2022 | Total realized and unrealized gains (losses) | Ending balance as of June 30, 2022 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 82 | $ | 2 | $ | (21 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 63 | $ | 2 | $ | (21 | ) | ||||||||||||||||||||||
Non-U.S. government | 2 | — | — | 2 | (1 | ) | — | — | — | — | 3 | — | — | |||||||||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 950 | — | (165 | ) | 35 | — | — | (1 | ) | 2 | (11 | ) | 810 | — | (165 | ) | ||||||||||||||||||||||||||||||||
Energy | 76 | — | (15 | ) | — | — | — | (7 | ) | 68 | — | 122 | — | (15 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 685 | — | (123 | ) | 151 | — | — | (3 | ) | — | (56 | ) | 654 | — | (116 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 104 | — | (11 | ) | — | — | — | (7 | ) | — | — | 86 | — | (11 | ) | |||||||||||||||||||||||||||||||||
Technology and communications | 29 | — | (4 | ) | — | — | — | — | — | — | 25 | — | (4 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 37 | — | (4 | ) | — | — | — | — | — | — | 33 | — | (4 | ) | ||||||||||||||||||||||||||||||||||
Capital goods | 45 | — | (7 | ) | — | — | — | — | — | — | 38 | — | (6 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 137 | — | (15 | ) | — | — | — | (3 | ) | — | — | 119 | — | (15 | ) | |||||||||||||||||||||||||||||||||
Transportation | 64 | — | (6 | ) | 5 | — | — | (3 | ) | — | (4 | ) | 56 | — | (6 | ) | ||||||||||||||||||||||||||||||||
Other | 254 | — | (23 | ) | — | — | — | (7 | ) | — | (17 | ) | 207 | — | (22 | ) | ||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,381 | — | (373 | ) | 191 | — | — | (31 | ) | 70 | (88 | ) | 2,150 | — | (364 | ) | ||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 345 | — | (46 | ) | 10 | — | — | — | — | — | 309 | — | (45 | ) | ||||||||||||||||||||||||||||||||||
Energy | 145 | — | (14 | ) | 3 | — | — | (1 | ) | — | — | 133 | — | (15 | ) | |||||||||||||||||||||||||||||||||
Finance and insurance | 160 | 2 | (30 | ) | — | — | — | — | — | — | 132 | 2 | (30 | ) | ||||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 63 | — | (7 | ) | — | — | — | — | 11 | — | 67 | — | (7 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 28 | — | (2 | ) | — | — | — | — | — | — | 26 | — | (2 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 93 | — | (10 | ) | — | — | — | — | — | (14 | ) | 69 | — | (9 | ) | |||||||||||||||||||||||||||||||||
Capital goods | 173 | — | (15 | ) | — | (10 | ) | — | (33 | ) | — | — | 115 | — | (15 | ) | ||||||||||||||||||||||||||||||||
Consumer—cyclical | 76 | — | (14 | ) | — | — | — | — | 17 | — | 79 | — | (14 | ) | ||||||||||||||||||||||||||||||||||
Transportation | 53 | — | (3 | ) | — | — | — | (29 | ) | — | — | 21 | — | (3 | ) | |||||||||||||||||||||||||||||||||
Other | 26 | — | (4 | ) | — | — | — | — | — | — | 22 | — | (3 | ) | ||||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,162 | 2 | (145 | ) | 13 | (10 | ) | — | (63 | ) | 28 | (14 | ) | 973 | 2 | (143 | ) | |||||||||||||||||||||||||||||||
Residential mortgage-backed | 27 | — | (3 | ) | 13 | — | — | (2 | ) | 4 | (9 | ) | 30 | — | (2 | ) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 16 | — | (2 | ) | — | — | — | — | — | — | 14 | — | (3 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 138 | — | (12 | ) | 46 | (6 | ) | — | (3 | ) | — | (34 | ) | 129 | — | (10 | ) | |||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,808 | 4 | (556 | ) | 265 | (17 | ) | — | (99 | ) | 102 | (145 | ) | 3,362 | 4 | (543 | ) | |||||||||||||||||||||||||||||||
Equity securities | 37 | — | — | — | (1 | ) | — | — | — | (1 | ) | 35 | — | — | ||||||||||||||||||||||||||||||||||
Limited partnerships | 26 | (3 | ) | — | — | — | — | — | — | — | 23 | (3 | ) | — | ||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 42 | (7 | ) | — | 8 | — | — | (13 | ) | — | — | 30 | 2 | — | ||||||||||||||||||||||||||||||||||
Total derivative assets | 42 | (7 | ) | — | 8 | — | — | (13 | ) | — | — | 30 | 2 | — | ||||||||||||||||||||||||||||||||||
Total other invested assets | 42 | (7 | ) | — | 8 | — | — | (13 | ) | — | — | 30 | 2 | — | ||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 19 | — | — | — | — | — | — | — | — | 19 | — | — | ||||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 3,932 | $ | (6 | ) | $ | (556 | ) | $ | 273 | $ | (18 | ) | $ | — | $ | (112 | ) | $ | 102 | $ | (146 | ) | $ | 3,469 | $ | 3 | $ | (543 | ) | ||||||||||||||||||
(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. |
Beginning balance as of January 1, 2021 | Total realized and unrealized gains (losses) | Ending balance as of June 30, 2021 | Total gains (losses) attributable to assets still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net income | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 (1) | Transfer out of Level 3 (1) | Included in net income | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | $ | 66 | $ | 2 | $ | 7 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 75 | $ | 2 | $ | 7 | ||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 842 | — | (7 | ) | 16 | — | — | (14 | ) | 19 | (14 | ) | 842 | — | (6 | ) | ||||||||||||||||||||||||||||||||
Energy | 128 | — | 4 | — | — | — | (3 | ) | — | (52 | ) | 77 | — | — | ||||||||||||||||||||||||||||||||||
Finance and insurance | 607 | — | (5 | ) | 73 | — | — | (25 | ) | 17 | (6 | ) | 661 | — | (5 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 109 | — | (1 | ) | — | — | — | (2 | ) | 3 | — | 109 | — | (2 | ) | |||||||||||||||||||||||||||||||||
Technology and communications | 47 | — | — | 12 | — | — | — | 4 | (33 | ) | 30 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Industrial | 40 | — | — | — | — | — | (20 | ) | — | — | 20 | — | — | |||||||||||||||||||||||||||||||||||
Capital goods | 60 | — | (1 | ) | — | — | — | — | — | — | 59 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 150 | — | (1 | ) | — | — | — | (2 | ) | — | (8 | ) | 139 | — | (1 | ) | ||||||||||||||||||||||||||||||||
Transportation | 70 | — | — | — | — | — | (3 | ) | — | — | 67 | — | — | |||||||||||||||||||||||||||||||||||
Other | 219 | — | (2 | ) | — | — | — | (5 | ) | 6 | (20 | ) | 198 | — | — | |||||||||||||||||||||||||||||||||
Total U.S. corporate | 2,272 | — | (13 | ) | 101 | — | — | (74 | ) | 49 | (133 | ) | 2,202 | — | (16 | ) | ||||||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||||||||||
Utilities | 352 | — | (2 | ) | 30 | — | — | (8 | ) | — | (24 | ) | 348 | — | (3 | ) | ||||||||||||||||||||||||||||||||
Energy | 245 | — | 8 | — | — | — | (22 | ) | — | (79 | ) | 152 | — | 3 | ||||||||||||||||||||||||||||||||||
Finance and insurance | 305 | 1 | 1 | — | (2 | ) | — | (52 | ) | — | (51 | ) | 202 | 2 | (11 | ) | ||||||||||||||||||||||||||||||||
Consumer—non-cyclical | 67 | — | (1 | ) | 8 | — | — | — | — | — | 74 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Technology and communications | 28 | — | — | — | — | — | — | — | — | 28 | — | — | ||||||||||||||||||||||||||||||||||||
Industrial | 95 | — | (1 | ) | — | — | — | — | — | — | 94 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Capital goods | 178 | — | (2 | ) | 5 | — | — | — | — | — | 181 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Consumer—cyclical | 146 | — | — | 17 | — | — | — | — | (16 | ) | 147 | — | — | |||||||||||||||||||||||||||||||||||
Transportation | 109 | — | — | — | — | — | (19 | ) | — | (7 | ) | 83 | — | 1 | ||||||||||||||||||||||||||||||||||
Other | 83 | — | (1 | ) | — | — | — | (14 | ) | — | (15 | ) | 53 | — | (1 | ) | ||||||||||||||||||||||||||||||||
Total non-U.S. corporate | 1,608 | 1 | 2 | 60 | (2 | ) | — | (115 | ) | — | (192 | ) | 1,362 | 2 | (14 | ) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed | 14 | — | — | — | — | — | (1 | ) | — | — | 13 | — | — | |||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 20 | — | (1 | ) | 1 | — | — | — | — | — | 20 | — | (1 | ) | ||||||||||||||||||||||||||||||||||
Other asset-backed | 109 | — | 1 | 3 | — | — | (9 | ) | 2 | (18 | ) | 88 | — | 1 | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 4,089 | 3 | (4 | ) | 165 | (2 | ) | — | (199 | ) | 51 | (343 | ) | 3,760 | 4 | (23 | ) | |||||||||||||||||||||||||||||||
Equity securities | 51 | — | — | — | (8 | ) | — | (5 | ) | — | — | 38 | — | — | ||||||||||||||||||||||||||||||||||
Limited partnerships | 17 | 1 | — | 8 | — | — | — | — | — | 26 | 1 | — | ||||||||||||||||||||||||||||||||||||
Other invested assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Equity index options | 63 | 9 | — | 10 | — | — | (35 | ) | — | — | 47 | 4 | — | |||||||||||||||||||||||||||||||||||
Total derivative assets | 63 | 9 | — | 10 | — | — | (35 | ) | — | — | 47 | 4 | — | |||||||||||||||||||||||||||||||||||
Total other invested assets | 63 | 9 | — | 10 | — | — | (35 | ) | — | — | 47 | 4 | — | |||||||||||||||||||||||||||||||||||
Reinsurance recoverable (2) | 26 | (9 | ) | — | — | — | 1 | — | — | — | 18 | (9 | ) | — | ||||||||||||||||||||||||||||||||||
Total Level 3 assets | $ | 4,246 | $ | 4 | $ | (4 | ) | $ | 183 | $ | (10 | ) | $ | 1 | $ | (239 | ) | $ | 51 | $ | (343 | ) | $ | 3,889 | $ | — | $ | (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. |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Total realized and unrealized gains (losses) included in net income: | ||||||||||||||||||||||||
Net investment income | $ | 2 | $ | 2 | $ | 2 | $ | 1 | $ | 4 | $ | 3 | ||||||||||||
Net investment gains (losses) | (8 | ) | (5 | ) | (2 | ) | 6 | (10 | ) | 1 | ||||||||||||||
Total | $ | (6 | ) | $ | (3 | ) | $ | — | $ | 7 | $ | (6 | ) | $ | 4 | |||||||||
Net gains (losses) included in net income attributable to assets still held: | ||||||||||||||||||||||||
Total gains (losses) included in net income attributable to assets still held: | ||||||||||||||||||||||||
Net investment income | $ | 2 | $ | 2 | $ | 2 | $ | 2 | $ | 4 | $ | 4 | ||||||||||||
Net investment gains (losses) | (5 | ) | (6 | ) | (5 | ) | 2 | (1 | ) | (4 | ) | |||||||||||||
Total | $ | (3 | ) | $ | (4 | ) | $ | (3 | ) | $ | 4 | $ | 3 | $ | — | |||||||||
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||
Fixed maturity securities: | ||||||||||||
U.S. corporate: | ||||||||||||
Utilities | Internal models | $ | 880 | Credit spreads | 49bps - 227bps | 148bps | ||||||
Energy | Internal models | 57 | Credit spreads | 108bps - 248bps | 173bps | |||||||
Finance and insurance | Internal models | 670 | Credit spreads | 54bps - 218bps | 158bps | |||||||
Consumer—non-cyclical | Internal models | 92 | Credit spreads | 54bps - 248bps | 132bps | |||||||
Technology and communications | Internal models | 27 | Credit spreads | 87bps - 162bps | 133bps | |||||||
Industrial | Internal models | 35 | Credit spreads | 98bps - 203bps | 136bps | |||||||
Capital goods | Internal models | 41 | Credit spreads | 67bps - 190bps | 145bps | |||||||
Consumer—cyclical | Internal models | 127 | Credit spreads | 85bps - 184bps | 137bps | |||||||
Transportation | Internal models | 53 | Credit spreads | 32bps - 156bps | 103bps | |||||||
Other | Internal models | 158 | Credit spreads | 90bps - 170bps | 109bps | |||||||
Total U.S. corporate | Internal models | $ | 2,140 | Credit spreads | 32bps - 248bps | 146bps | ||||||
Non-U.S. corporate: | ||||||||||||
Utilities | Internal models | $ | 333 | Credit spreads | 75bps - 218bps | 129bps | ||||||
Energy | Internal models | 129 | Credit spreads | 83bps - 203bps | 138bps | |||||||
Finance and insurance | Internal models | 143 | Credit spreads | 88bps - 150bps | 135bps | |||||||
Consumer—non-cyclical | Internal models | 58 | Credit spreads | 54bps - 154bps | 103bps | |||||||
Technology and communications | Internal models | 27 | Credit spreads | 83bps - 139bps | 108bps | |||||||
Industrial | Internal models | 74 | Credit spreads | 67bps - 182bps | 113bps | |||||||
Capital goods | Internal models | 132 | Credit spreads | 54bps - 236bps | 137bps | |||||||
Consumer—cyclical | Internal models | 57 | Credit spreads | 98bps - 203bps | 137bps | |||||||
Transportation | Internal models | 21 | Credit spreads | 126bps - 203bps | 141bps | |||||||
Other | Internal models | 24 | Credit spreads | 55bps - 130bps | 106bps | |||||||
Total non-U.S. corporate | Internal models | $ | 998 | Credit spreads | 54bps - 236bps | 129bps | ||||||
Derivative assets: | ||||||||||||
Equity index options | Discounted cash flows | $ | 30 | Equity index volatility | 6% - 56% | 21% |
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | Internal models | $ | 781 | Credit spreads | 57bps - 316bps | 175bps | ||||||||||||||
Energy | Internal models | 46 | Credit spreads | 166bps - 306bps | 229bps | |||||||||||||||
Finance and insurance | Internal models | 649 | Credit spreads | 75bps - 322bps | 218bps | |||||||||||||||
Consumer— non-cyclical | Internal models | 86 | Credit spreads | 72bps - 306bps | 171bps | |||||||||||||||
Technology and communications | Internal models | 25 | Credit spreads | 128bps - 184bps | 163bps | |||||||||||||||
Industrial | Internal models | 33 | Credit spreads | 159bps - 308bps | 227bps | |||||||||||||||
Capital goods | Internal models | 38 | Credit spreads | 97bps - 263bps | 185bps | |||||||||||||||
Consumer—cyclical | Internal models | 119 | Credit spreads | 107bps - 244bps | 180bps | |||||||||||||||
Transportation | Internal models | 47 | Credit spreads | 41bps - 210bps | 143bps | |||||||||||||||
Other | Internal models | 149 | Credit spreads | 116bps - 219bps | 140bps | |||||||||||||||
Total U.S. corporate | Internal models | $ | 1,973 | Credit spreads | 41bps - 322bps | 188bps | ||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | Internal models | $ | 309 | Credit spreads | 87bps - 290bps | 167bps | ||||||||||||||
Energy | Internal models | 124 | Credit spreads | 123bps - 263bps | 191bps | |||||||||||||||
Finance and insurance | Internal models | 131 | Credit spreads | 122bps - 216bps | 172bps | |||||||||||||||
Consumer— non-cyclical | Internal models | 66 | Credit spreads | 72bps - 248bps | 161bps | |||||||||||||||
Technology and communications | Internal models | 26 | Credit spreads | 123bps - 207bps | 164bps | |||||||||||||||
Industrial | Internal models | 69 | Credit spreads | 97bps - 225bps | 153bps | |||||||||||||||
Capital goods | Internal models | 115 | Credit spreads | 72bps - 306bps | 200bps | |||||||||||||||
Consumer—cyclical | Internal models | 52 | Credit spreads | 159bps - 260bps | 198bps | |||||||||||||||
Transportation | Internal models | 20 | Credit spreads | 185bps - 219bps | 189bps | |||||||||||||||
Other | Internal models | 22 | Credit spreads | 86bps - 161bps | 135bps | |||||||||||||||
Total non-U.S. corporate | Internal models | $ | 934 | Credit spreads | 72bps - 306bps | 175bps | ||||||||||||||
Derivative assets: | ||||||||||||||||||||
Equity index options | Discounted cash flows | | $ | 30 | Equity index volatility | | 6% - 35% | 19% |
(1) | Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities and by notional for derivative assets. |
March 31, 2022 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
GMWB embedded derivatives (1) | $ | 243 | $ | 0 | $ | 0 | $ | 243 | ||||||||
Fixed index annuity embedded derivatives | 261 | 0 | 0 | 261 | ||||||||||||
Indexed universal life embedded derivatives | 21 | 0 | 0 | 21 | ||||||||||||
Total policyholder account balances | 525 | 0 | 0 | 525 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 76 | 0 | 76 | 0 | ||||||||||||
Foreign currency swaps | 1 | 0 | 1 | 0 | ||||||||||||
Total derivative liabilities | 77 | 0 | 77 | 0 | ||||||||||||
Total liabilities | $ | 602 | $ | 0 | $ | 77 | $ | 525 | ||||||||
June 30, 2022 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
GMWB embedded derivatives (1) | $ | 277 | $ | — | $ | — | $ | 277 | ||||||||
Fixed index annuity embedded derivatives | 233 | — | — | 233 | ||||||||||||
Indexed universal life embedded derivatives | 16 | — | — | 16 | ||||||||||||
Total policyholder account balances | 526 | — | — | 526 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 342 | — | 342 | — | ||||||||||||
Total derivative liabilities | 342 | — | 342 | — | ||||||||||||
Total liabilities | $ | 868 | $ | — | $ | 342 | $ | 526 | ||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
December 31, 2021 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
GMWB embedded derivatives (1) | $ | 271 | $ | 0 | $ | 0 | $ | 271 | ||||||||
Fixed index annuity embedded derivatives | 294 | 0 | 0 | 294 | ||||||||||||
Indexed universal life embedded derivatives | 25 | 0 | 0 | 25 | ||||||||||||
Total policyholder account balances | 590 | 0 | 0 | 590 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 26 | 0 | 26 | 0 | ||||||||||||
Total derivative liabilities | 26 | 0 | 26 | 0 | ||||||||||||
Total liabilities | $ | 616 | $ | 0 | $ | 26 | $ | 590 | ||||||||
December 31, 2021 | ||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities | ||||||||||||||||
Policyholder account balances: | ||||||||||||||||
GMWB embedded derivatives (1) | $ | 271 | $ | — | $ | — | $ | 271 | ||||||||
Fixed index annuity embedded derivatives | 294 | — | — | 294 | ||||||||||||
Indexed universal life embedded derivatives | 25 | — | — | 25 | ||||||||||||
Total policyholder account balances | 590 | — | — | 590 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Interest rate swaps | 26 | — | 26 | — | ||||||||||||
Total derivative liabilities | 26 | — | 26 | — | ||||||||||||
Total liabilities | $ | 616 | $ | — | $ | 26 | $ | 590 | ||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of April 1, 2022 | Total realized and unrealized (gains) losses | Ending balance as of June 30, 2022 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 243 | $ | 28 | $ | — | $ | — | $ | — | $ | 6 | $ | — | $ | — | $ | — | $ | 277 | $ | 31 | $ | — | ||||||||||||||||||||||||
Fixed index annuity embedded derivatives | 261 | (11 | ) | — | — | — | — | (17 | ) | — | — | 233 | (11 | ) | — | |||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 21 | (8 | ) | — | — | — | 3 | — | — | — | 16 | (8 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 525 | 9 | — | — | — | 9 | (17 | ) | — | — | 526 | 12 | — | |||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 525 | $ | 9 | $ | — | $ | — | $ | — | $ | 9 | $ | (17 | ) | $ | — | $ | — | $ | 526 | $ | 12 | $ | — | |||||||||||||||||||||||
(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 | Ending balance as of June 30, 2021 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 272 | $ | (3 | ) | $ | — | $ | — | $ | — | $ | 6 | $ | — | $ | — | $ | — | $ | 275 | $ | (4 | ) | $ | — | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 362 | 14 | — | — | — | — | (37 | ) | — | — | 339 | 14 | — | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 23 | (3 | ) | — | — | — | 4 | — | — | — | 24 | (3 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 657 | 8 | — | — | — | 10 | (37 | ) | — | — | 638 | 7 | — | |||||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 657 | $ | 8 | $ | — | $ | — | $ | — | $ | 10 | $ | (37 | ) | $ | — | $ | — | $ | 638 | $ | 7 | $ | — | |||||||||||||||||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Beginning balance as of January 1, 2022 | Total realized and unrealized (gains) losses | Ending balance as of March 31, 2022 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 271 | $ | (34 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 0 | $ | 243 | $ | (30 | ) | $ | 0 | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 294 | (12 | ) | 0 | 0 | 0 | 0 | (20 | ) | 0 | (1 | ) | 261 | (12 | ) | 0 | ||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 25 | (11 | ) | 0 | 0 | 0 | 7 | 0 | 0 | 0 | 21 | (11 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 590 | (57 | ) | 0 | 0 | 0 | 13 | (20 | ) | 0 | (1 | ) | 525 | (53 | ) | 0 | ||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 590 | $ | (57 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 13 | $ | (20 | ) | $ | 0 | $ | (1 | ) | $ | 525 | $ | (53 | ) | $ | 0 | ||||||||||||||||||||
Beginning balance as of January 1, 2022 | Total realized and unrealized (gains) losses | Ending balance as of June 30, 2022 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 271 | $ | (6 | ) | $ | — | $ | — | $ | — | $ | 12 | $ | — | $ | — | $ | — | $ | 277 | $ | 1 | $ | — | |||||||||||||||||||||||
Fixed index annuity embedded derivatives | 294 | (23 | ) | — | — | — | — | (37 | ) | — | (1 | ) | 233 | (23 | ) | — | ||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 25 | (19 | ) | — | — | — | 10 | — | — | — | 16 | (19 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 590 | (48 | ) | — | — | — | 22 | (37 | ) | — | (1 | ) | 526 | (41 | ) | — | ||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 590 | $ | (48 | ) | $ | — | $ | — | $ | — | $ | 22 | $ | (37 | ) | $ | — | $ | (1 | ) | $ | 526 | $ | (41 | ) | $ | — | ||||||||||||||||||||
(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 | Ending balance as of March 31, 2021 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 379 | $ | (113 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 6 | $ | 0 | $ | 0 | $ | 0 | $ | 272 | $ | (107 | ) | $ | 0 | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 399 | 4 | 0 | 0 | 0 | 0 | (41 | ) | 0 | 0 | 362 | 4 | 0 | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 26 | (10 | ) | 0 | 0 | 0 | 7 | 0 | 0 | 0 | 23 | (10 | ) | 0 | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 804 | (119 | ) | 0 | 0 | 0 | 13 | (41 | ) | 0 | 0 | 657 | (113 | ) | 0 | |||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 804 | $ | (119 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 13 | $ | (41 | ) | $ | 0 | $ | 0 | $ | 657 | $ | (113 | ) | $ | 0 | |||||||||||||||||||||
Beginning balance as of January 1, 2021 | Total realized and unrealized (gains) losses | Ending balance as of June 30, 2021 | Total (gains) losses attributable to liabilities still held | |||||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Included in net (income) | Included in OCI | Purchases | Sales | Issuances | Settlements | Transfer into Level 3 | Transfer out of Level 3 | Included in net (income) | Included in OCI | ||||||||||||||||||||||||||||||||||||||
Policyholder account balances: | ||||||||||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives (1) | $ | 379 | $ | (116 | ) | $ | — | $ | — | $ | — | $ | 12 | $ | — | $ | — | $ | — | $ | 275 | $ | (111 | ) | $ | — | ||||||||||||||||||||||
Fixed index annuity embedded derivatives | 399 | 18 | — | — | — | — | (78 | ) | — | — | 339 | 18 | — | |||||||||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | 26 | (13 | ) | — | — | — | 11 | — | — | — | 24 | (13 | ) | — | ||||||||||||||||||||||||||||||||||
Total policyholder account balances | 804 | (111 | ) | — | — | — | 23 | (78 | ) | — | — | 638 | (106 | ) | — | |||||||||||||||||||||||||||||||||
Total Level 3 liabilities | $ | 804 | $ | (111 | ) | $ | — | $ | — | $ | — | $ | 23 | $ | (78 | ) | $ | — | $ | — | $ | 638 | $ | (106 | ) | $ | — | |||||||||||||||||||||
(1) | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
(Amounts in millions) | 2022 | 2021 | ||||||
Total realized and unrealized (gains) losses included in net (income): | ||||||||
Net investment income | $ | 0 | $ | 0 | ||||
Net investment (gains) losses | (57 | ) | (119 | ) | ||||
Total | $ | (57 | ) | $ | (119 | ) | ||
Total (gains) losses included in net (income) attributable to liabilities still held: | ||||||||
Net investment income | $ | 0 | $ | 0 | ||||
Net investment (gains) losses | (53 | ) | (113 | ) | ||||
Total | $ | (53 | ) | $ | (113 | ) | ||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Total realized and unrealized (gains) losses included in net (income): | ||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | ||||||||
Net investment (gains) losses | 9 | 8 | (48 | ) | (111 | ) | ||||||||||
Total | $ | 9 | $ | 8 | $ | (48 | ) | $ | (111 | ) | ||||||
Total (gains) losses included in net (income) attributable to liabilities still held: | ||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | ||||||||
Net investment (gains) losses | 12 | 7 | (41 | ) | (106 | ) | ||||||||||
Total | $ | 12 | $ | 7 | $ | (41 | ) | $ | (106 | ) | ||||||
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||||||||||
Policyholder account balances: | ||||||||||||||||||||
| Withdrawal utilization rate | | 61% - 89% | 77% | ||||||||||||||||
Lapse rate | 2% - 9% | 4% | ||||||||||||||||||
| Non-performance risk (credit spreads) | | 23bps - 83bps | 66bps | ||||||||||||||||
GMWB embedded derivatives (2) | | Stochastic cash flow model | | $243 | | Equity index volatility | | 18% - 27% | 23% | |||||||||||
Fixed index annuity embedded derivatives | | Option budget method | | $261 | | Expected future interest credited | | 0% - 3% | 1% | |||||||||||
Indexed universal life embedded derivatives | | Option budget method | | $21 | | Expected future interest credited | | 3% - 12% | 5% |
(Amounts in millions) | Valuation technique | Fair value | Unobservable input | Range | Weighted-average (1) | |||||||
Policyholder account balances: | ||||||||||||
Withdrawal utilization rate | 61% - 88% | 77% | ||||||||||
Lapse rate | 2% - 9% | 3% | ||||||||||
Non-performance risk (credit spreads) | 36bps -83bps | 69bps | ||||||||||
GMWB embedded derivatives (2) | Stochastic cash flow model | $ | 277 | Equity index volatility | 20% - 29% | 24% | ||||||
Fixed index annuity embedded derivatives | Option budget method | $ | 233 | Expected future interest credited | — | 1% | ||||||
Indexed universal life embedded derivatives | Option budget method | $ | 16 | Expected future interest credited | 3% - 14% | 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. |
March 31, 2022 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1) | $ | 6,913 | $ | 6,983 | $ | 0 | $ | 22 | $ | 6,961 | |||||||||||||
Bank loan investments | (1) | 381 | 384 | 0 | 0 | 384 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 1,819 | 1,587 | 0 | 1,587 | 0 | ||||||||||||||||||
Investment contracts | (1) | 8,327 | 8,582 | 0 | 0 | 8,582 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund bank loan investments | 108 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Ordinary course of business lending commitments | 95 | 0 | 0 | 0 | 0 | 0 |
June 30, 2022 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1) | $ | 7,065 | $ | 6,679 | $ | — | $ | — | $ | 6,679 | |||||||||||||
Bank loan investments | (1) | 406 | 402 | — | — | 402 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 1,773 | 1,336 | — | 1,336 | — | ||||||||||||||||||
Investment contracts | (1) | 8,071 | 8,146 | — | — | 8,146 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund bank loan investments | 75 | — | — | — | — | — | ||||||||||||||||||
Ordinary course of business lending commitments | 88 | — | — | — | — | — |
(1) | These financial instruments do not have notional amounts. |
December 31, 2021 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1) | $ | 6,830 | $ | 7,224 | $ | 0 | $ | 0 | $ | 7,224 | |||||||||||||
Bank loan investments | (1) | 363 | 370 | 0 | 0 | 370 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 1,899 | 1,767 | 0 | 1,767 | 0 | ||||||||||||||||||
Investment contracts | (1) | 8,657 | 9,352 | 0 | 0 | 9,352 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund bank loan investments | 141 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Ordinary course of business lending commitments | 125 | 0 | 0 | 0 | 0 | 0 |
December 31, 2021 | ||||||||||||||||||||||||
Notional amount | Carrying amount | Fair value | ||||||||||||||||||||||
(Amounts in millions) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Commercial mortgage loans, net | (1) | $ | 6,830 | $ | 7,224 | $ | — | $ | — | $ | 7,224 | |||||||||||||
Bank loan investments | (1) | 363 | 370 | — | — | 370 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Long-term borrowings | (1) | 1,899 | 1,767 | — | 1,767 | — | ||||||||||||||||||
Investment contracts | (1) | 8,657 | 9,352 | — | — | 9,352 | ||||||||||||||||||
Other firm commitments: | ||||||||||||||||||||||||
Commitments to fund bank loan investments | 141 | — | — | — | — | — | ||||||||||||||||||
Ordinary course of business lending commitments | 125 | — | — | — | — | — |
(1) | These financial instruments do not have notional amounts. |
March 31, 2022 | December 31, 2021 | |||||||||||||||
(Amounts in millions) | Carrying value | Commitments to fund | Carrying value | Commitments to fund | ||||||||||||
Limited partnerships accounted for at NAV: | ||||||||||||||||
Private equity funds (1) | $ | 1,405 | $ | 975 | $ | 1,312 | $ | 950 | ||||||||
Real estate funds (2) | 72 | 117 | 67 | 101 | ||||||||||||
Infrastructure funds (3) | 55 | 13 | 57 | 13 | ||||||||||||
Total limited partnerships accounted for at NAV | 1,532 | 1,105 | 1,436 | 1,064 | ||||||||||||
Limited partnerships accounted for at fair value | 26 | 1 | 26 | 1 | ||||||||||||
Limited partnerships accounted for under equity method of accounting | 448 | 203 | 437 | 120 | ||||||||||||
Low-income housing tax credits (4) | 1 | 0 | 1 | 0 | ||||||||||||
Total | $ | 2,007 | $ | 1,309 | $ | 1,900 | $ | 1,185 | ||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||||
(Amounts in millions) | Carrying value | Commitments to fund | Carrying value | Commitments to fund | ||||||||||||
Limited partnerships accounted for at NAV: | ||||||||||||||||
Private equity funds (1) | $ | 1,483 | $ | 1,080 | $ | 1,312 | $ | 950 | ||||||||
Real estate funds (2) | 84 | 145 | 67 | 101 | ||||||||||||
Infrastructure funds (3) | 59 | 11 | 57 | 13 | ||||||||||||
Total limited partnerships accounted for at NAV | 1,626 | 1,236 | 1,436 | 1,064 | ||||||||||||
Limited partnerships accounted for at fair value | 23 | 1 | 26 | 1 | ||||||||||||
Limited partnerships accounted for under equity method of accounting | 473 | 172 | 437 | 120 | ||||||||||||
Low-income housing tax credits(4) | 1 | — | 1 | — | ||||||||||||
Total | $ | 2,123 | $ | 1,409 | $ | 1,900 | $ | 1,185 | ||||||||
(1) | This class employs various investment strategies such as leveraged buyout, growth equity, venture capital and mezzanine financing, generally investing in debt or equity positions directly in companies or assets of various sizes across diverse industries globally, primarily concentrated in North America. |
(2) | This class invests in real estate in North America, Europe and Asia via direct property ownership, joint ventures, mortgages and investments in debt and equity instruments. |
(3) | This class invests in the debt or equity of cash flow generating assets diversified across a variety of industries, including transportation, energy infrastructure, renewable power, social infrastructure, power generation, water, telecommunications and other regulated entities globally. |
(4) | Relates to limited partnership investments that invest in affordable housing projects that qualify for the Low-Income Housing Tax Credit and are accounted for using the proportional amortization method. |
As of or for the six months ended June 30, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Unamortized beginning balance | $ | 2,438 | $ | 2,809 | ||||
Costs deferred | 1 | 3 | ||||||
Amortization, net of interest accretion | (152 | ) | (146 | ) | ||||
Unamortized ending balance | 2,287 | 2,666 | ||||||
Accumulated effect of net unrealized investment (gains) losses | 27 | (1,454 | ) | |||||
Ending balance | $ | 2,314 | $ | 1,212 | ||||
As of or for the three months ended March 31, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Beginning balance | $ | 11,841 | $ | 11,486 | ||||
Less reinsurance recoverables | (2,388 | ) | (2,431 | ) | ||||
Net beginning balance | 9,453 | 9,055 | ||||||
Incurred related to insured events of: | ||||||||
Current year | 1,094 | 1,054 | ||||||
Prior years | (293 | ) | (229 | ) | ||||
Total incurred | 801 | 825 | ||||||
Paid related to insured events of: | ||||||||
Current year | (202 | ) | (197 | ) | ||||
Prior years | (675 | ) | (725 | ) | ||||
Total paid | (877 | ) | (922 | ) | ||||
Interest on liability for policy and contract claims | 103 | 101 | ||||||
Net ending balance | 9,480 | 9,059 | ||||||
Add reinsurance recoverables | 2,353 | 2,356 | ||||||
Ending balance | $ | 11,833 | $ | 11,415 | ||||
As of or for the six months ended June 30, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Beginning balance | $ | 11,841 | $ | 11,486 | ||||
Less reinsurance recoverables | (2,388 | ) | (2,431 | ) | ||||
Net beginning balance | 9,453 | 9,055 | ||||||
Incurred related to insured events of: | ||||||||
Current year | 2,047 | 1,991 | ||||||
Prior years | (483 | ) | (332 | ) | ||||
Total incurred | 1,564 | 1,659 | ||||||
Paid related to insured events of: | ||||||||
Current year | (412 | ) | (477 | ) | ||||
Prior years | (1,250 | ) | (1,255 | ) | ||||
Total paid | (1,662 | ) | (1,732 | ) | ||||
Interest on liability for policy and contract claims | 207 | 202 | ||||||
Net ending balance | 9,562 | 9,184 | ||||||
Add reinsurance recoverables | 2,353 | 2,362 | ||||||
Ending balance | $ | 11,915 | $ | 11,546 | ||||
(Amounts in millions) | March 31, 2022 | December 31, 2021 | ||||||
Genworth Holdings (1) | ||||||||
4.80% Senior Notes, due 2024 | $ | 200 | $ | 282 | ||||
6.50% Senior Notes, due 2034 | 298 | 298 | ||||||
Floating Rate Junior Subordinated Notes, due 2066 | 598 | 598 | ||||||
Subtotal | 1,096 | 1,178 | ||||||
Bond consent fees | (11 | ) | (12 | ) | ||||
Deferred borrowing charges | (7 | ) | (7 | ) | ||||
Total Genworth Holdings | 1,078 | 1,159 | ||||||
Enact Holdings | ||||||||
6.50% Senior Notes, due 2025 (2) | 750 | 750 | ||||||
Deferred borrowing charges | (9 | ) | (10 | ) | ||||
Total Enact Holdings | 741 | 740 | ||||||
Total | $ | 1,819 | $ | 1,899 | ||||
(Amounts in millions) | June 30, 2022 | December 31, 2021 | ||||||
Genworth Holdings (1) | ||||||||
4.80% Senior Notes, due 2024 | $ | 152 | $ | 282 | ||||
6.50% Senior Notes, due 2034 | 298 | 298 | ||||||
Floating Rate Junior Subordinated Notes, due 2066 | 598 | 598 | ||||||
Subtotal | 1,048 | 1,178 | ||||||
Bond consent fees | (11 | ) | (12 | ) | ||||
Deferred borrowing charges | (6 | ) | (7 | ) | ||||
Total Genworth Holdings | 1,031 | 1,159 | ||||||
Enact Holdings | ||||||||
6.50% Senior Notes, due 2025 (2) | 750 | 750 | ||||||
Deferred borrowing charges | (8 | ) | (10 | ) | ||||
Total Enact Holdings | 742 | 740 | ||||||
Total | $ | 1,773 | $ | 1,899 | ||||
(1) | Genworth Holdings has 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) | Senior notes issued by Enact Holdings, |
Three months ended March 31, | ||||||||
2022 | 2021 | |||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | ||||
Increase in rate resulting from: | ||||||||
Tax on income from terminated swaps | 2.8 | 4.1 | ||||||
Other, net | 0.5 | 0.2 | ||||||
Effective rate | 24.3 | % | 25.3 | % | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Statutory U.S. federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | 21.0 | % | ||||||||
Increase in rate resulting from: | ||||||||||||||||
Tax on income from terminated swaps | 2.9 | 2.1 | 2.9 | 2.9 | ||||||||||||
Other, net | 1.0 | 0.3 | 0.7 | 0.3 | ||||||||||||
Effective rate | 24.9 | % | 23.4 | % | 24.6 | % | 24.2 | % | ||||||||
Three months ended March 31, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Revenues: | ||||||||
Enact segment | $ | 270 | $ | 288 | ||||
U.S. Life Insurance segment: | ||||||||
Long-term care insurance | 1,109 | 1,140 | ||||||
Life insurance | 339 | 348 | ||||||
Fixed annuities | 116 | 132 | ||||||
U.S. Life Insurance segment | 1,564 | 1,620 | ||||||
Runoff segment | 66 | 76 | ||||||
Corporate and Other activities | (8 | ) | 1 | |||||
Total revenues | $ | 1,892 | $ | 1,985 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenues: | ||||||||||||||||
Enact segment | $ | 273 | $ | 276 | $ | 543 | $ | 564 | ||||||||
U.S. Life Insurance segment: | ||||||||||||||||
Long-term care insurance | 1,119 | 1,226 | 2,228 | 2,366 | ||||||||||||
Life insurance | 310 | 329 | 649 | 677 | ||||||||||||
Fixed annuities | 92 | 122 | 208 | 254 | ||||||||||||
U.S. Life Insurance segment | 1,521 | 1,677 | 3,085 | 3,297 | ||||||||||||
Runoff segment | 70 | 88 | 136 | 164 | ||||||||||||
Corporate and Other activities | 17 | — | 9 | 1 | ||||||||||||
Total revenues | $ | 1,881 | $ | 2,041 | $ | 3,773 | $ | 4,026 | ||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 181 | $ | 240 | $ | 330 | $ | 427 | ||||||||
Add: net income from continuing operations attributable to noncontrolling interests | 38 | — | 68 | — | ||||||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | — | — | — | 8 | ||||||||||||
Net income | 219 | 240 | 398 | 435 | ||||||||||||
Less: income (loss) from discontinued operations, net of taxes | (1 | ) | (5 | ) | (3 | ) | 16 | |||||||||
Income from continuing operations | 220 | 245 | 401 | 419 | ||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 38 | — | 68 | — | ||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 182 | 245 | 333 | 419 | ||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses, net (1) | (10 | ) | (70 | ) | (38 | ) | (103 | ) | ||||||||
(Gains) losses on early extinguishment of debt | 1 | — | 4 | 4 | ||||||||||||
Expenses related to restructuring | 1 | 5 | 1 | 26 | ||||||||||||
Taxes on adjustments | 2 | 14 | 7 | 16 | ||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 176 | $ | 194 | $ | 307 | $ | 362 | ||||||||
Three months ended March 31, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 149 | $ | 187 | ||||
Add: net income from continuing operations attributable to noncontrolling interests | 30 | 0 | ||||||
Add: net income from discontinued operations attributable to noncontrolling interests | 0 | 8 | ||||||
Net income | 179 | 195 | ||||||
Less: income (loss) from discontinued operations, net of taxes | (2 | ) | 21 | |||||
Income from continuing operations | 181 | 174 | ||||||
Less: net income from continuing operations attributable to noncontrolling interests | 30 | 0 | ||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 151 | 174 | ||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||
Net investment (gains) losses, net | (28 | ) | (33 | ) | ||||
(Gains) losses on early extinguishment of debt | 3 | 4 | ||||||
Expenses related to restructuring | 0 | 21 | ||||||
Taxes on adjustments | 5 | 2 | ||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 131 | $ | 168 | ||||
(1) | For the three and six months ended June 30, 2022, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(2) million. |
Three months ended March 31, | ||||||||
(Amounts in millions) | 2022 | 2021 | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||
Enact segment | $ | 135 | $ | 126 | ||||
U.S. Life Insurance segment: | ||||||||
Long-term care insurance | 59 | 95 | ||||||
Life insurance | (79 | ) | (63 | ) | ||||
Fixed annuities | 16 | 30 | ||||||
U.S. Life Insurance segment | (4 | ) | 62 | |||||
Runoff segment | 9 | 12 | ||||||
Corporate and Other activities | (9 | ) | (32 | ) | ||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 131 | $ | 168 | ||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’scommon stockholders: | ||||||||||||||||
Enact segment | $ | 167 | $ | 135 | $ | 302 | $ | 261 | ||||||||
U.S. Life Insurance segment: | ||||||||||||||||
Long-term care insurance | 34 | 98 | 93 | 193 | ||||||||||||
Life insurance | (34 | ) | (40 | ) | (113 | ) | (103 | ) | ||||||||
Fixed annuities | 21 | 13 | 37 | 43 | ||||||||||||
U.S. Life Insurance segment | 21 | 71 | 17 | 133 | ||||||||||||
Runoff segment | 2 | 15 | 11 | 27 | ||||||||||||
Corporate and Other activities | (14 | ) | (27 | ) | (23 | ) | (59 | ) | ||||||||
Adjusted operating income available to Genworth Financial, Inc.’scommon stockholders | $ | 176 | $ | 194 | $ | 307 | $ | 362 | ||||||||
(Amounts in millions) | March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||||||||||
Assets: | ||||||||||||||||
Enact segment | $ | 5,790 | $ | 5,850 | $ | 5,763 | $ | 5,850 | ||||||||
U.S. Life Insurance segment | 76,482 | 81,210 | 73,288 | 81,210 | ||||||||||||
Runoff segment | 8,960 | 9,460 | 8,264 | 9,460 | ||||||||||||
Corporate and Other activities | 2,255 | 2,651 | 1,753 | 2,651 | ||||||||||||
Total assets | $ | 93,487 | $ | 99,171 | $ | 89,068 | $ | 99,171 | ||||||||
(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, 2022 | $ | 1,860 | $ | 2,025 | $ | (24 | ) | $ | 3,861 | |||||||
OCI before reclassifications | (1,057 | ) | (199 | ) | (5 | ) | (1,261 | ) | ||||||||
Amounts reclassified from (to) OCI | 6 | (37 | ) | 0 | (31 | ) | ||||||||||
Current period OCI | (1,051 | ) | (236 | ) | (5 | ) | (1,292 | ) | ||||||||
Balances as of March 31, 2022 before noncontrolling interests | 809 | 1,789 | (29 | ) | 2,569 | |||||||||||
Less: change in OCI attributable to noncontrolling interests | (41 | ) | 0 | 0 | (41 | ) | ||||||||||
Balances as of March 31, 2022 | $ | 850 | $ | 1,789 | $ | (29 | ) | $ | 2,610 | |||||||
(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, 2022 | $ | 850 | $ | 1,789 | $ | (29 | ) | $ | 2,610 | |||||||
OCI before reclassifications | (2,436 | ) | (307 | ) | (7 | ) | (2,750 | ) | ||||||||
Amounts reclassified from (to) OCI | 4 | (37 | ) | — | (33 | ) | ||||||||||
Current period OCI | (2,432 | ) | (344 | ) | (7 | ) | (2,783 | ) | ||||||||
Balances as of June 30, 2022 before noncontrolling interests | (1,582 | ) | 1,445 | (36 | ) | (173 | ) | |||||||||
Less: change in OCI attributable to noncontrolling interests | (28 | ) | — | — | (28 | ) | ||||||||||
Balances as of June 30, 2022 | $ | (1,554 | ) | $ | 1,445 | $ | (36 | ) | $ | (145 | ) | |||||
(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 | (316 | ) | (385 | ) | 136 | (565 | ) | |||||||||
Amounts reclassified from (to) OCI | (4 | ) | (34 | ) | 0 | (38 | ) | |||||||||
Current period OCI | (320 | ) | (419 | ) | 136 | (603 | ) | |||||||||
Balances as of March 31, 2021 before noncontrolling interests | 1,894 | 1,792 | 136 | 3,822 | ||||||||||||
Less: change in OCI attributable to noncontrolling interests | (25 | ) | 0 | 172 | 147 | |||||||||||
Balances as of March 31, 2021 | $ | 1,919 | $ | 1,792 | $ | (36 | ) | $ | 3,675 | |||||||
(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 | — | (34 | ) | — | (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 | — | — | — | — | ||||||||||||
Balances as of June 30, 2021 | $ | 1,865 | $ | 2,003 | $ | (34 | ) | $ | 3,834 | |||||||
(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 March 31, | ||||||||||
(Amounts in millions) | 2022 | 2021 | ||||||||
Net unrealized investment (gains) losses: | ||||||||||
Unrealized (gains) losses on investments (1) | $ | 8 | $ | (5 | ) | Net investment (gains) losses | ||||
Income taxes | (2 | ) | 1 | Provision for income taxes | ||||||
Total | $ | 6 | $ | (4 | ) | |||||
Derivatives qualifying as hedges: | ||||||||||
Interest rate swaps hedging assets | $ | (55 | ) | $ | (52 | ) | Net investment income | |||
Interest rate swaps hedging assets | (2 | ) | 0 | Net investment (gains) losses | ||||||
Interest rate swaps hedging liabilities | 1 | 0 | Interest expense | |||||||
Foreign currency swaps | (1 | ) | 0 | Net investment income | ||||||
Income taxes | 20 | 18 | Provision for income taxes | |||||||
Total | $ | (37 | ) | $ | (34 | ) | ||||
(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, 2022 | $ | 1,860 | $ | 2,025 | $ | (24 | ) | $ | 3,861 | |||||||
OCI before reclassifications | (3,493 | ) | (506 | ) | (12 | ) | (4,011 | ) | ||||||||
Amounts reclassified from (to) OCI | 10 | (74 | ) | — | (64 | ) | ||||||||||
Current period OCI | (3,483 | ) | (580 | ) | (12 | ) | (4,075 | ) | ||||||||
Balances as of June 30, 2022 before noncontrolling interests | (1,623 | ) | 1,445 | (36 | ) | (214 | ) | |||||||||
Less: change in OCI attributable to noncontrolling interests | (69 | ) | — | — | (69 | ) | ||||||||||
Balances as of June 30, 2022 | $ | (1,554 | ) | $ | 1,445 | $ | (36 | ) | $ | (145 | ) | |||||
(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 | $ | — | $ | 4,425 | ||||||||
OCI before reclassifications | (370 | ) | (140 | ) | 138 | (372 | ) | |||||||||
Amounts reclassified from (to) OCI | (4 | ) | (68 | ) | — | (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 | ) | — | 172 | 147 | |||||||||||
Balances as of June 30, 2021 | $ | 1,865 | $ | 2,003 | $ | (34 | ) | $ | 3,834 | |||||||
(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) | 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, | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||
Net unrealized investment (gains) losses: | ||||||||||||||||||
Unrealized (gains) losses on investments (1) | $ | 5 | $ | — | $ | 13 | $ | (5 | ) | Net investment (gains) losses | ||||||||
Income taxes | (1 | ) | — | (3 | ) | 1 | Provision for income taxes | |||||||||||
Total | $ | 4 | $ | — | $ | 10 | $ | (4 | ) | |||||||||
Derivatives qualifying as hedges: | ||||||||||||||||||
Interest rate swaps hedging assets | $ | (57 | ) | $ | (52 | ) | $ | (112 | ) | $ | (104 | ) | Net investment income | |||||
Interest rate swaps hedging assets | — | — | (2 | ) | — | Net investment (gains) losses | ||||||||||||
Interest rate swaps hedging liabilities | 1 | — | 2 | — | Interest expense | |||||||||||||
Foreign currency swaps | — | — | (1 | ) | — | Net investment income | ||||||||||||
Income taxes | 19 | 18 | 39 | 36 | Provision for income taxes | |||||||||||||
Total | $ | (37 | ) | $ | (34 | ) | $ | (74 | ) | $ | (68 | ) | ||||||
(1) | Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
(Amounts in millions) | Three months ended March 31, 2021 | |||
Revenues: | ||||
Premiums | $ | 51 | ||
Net investment income | 4 | |||
Net investment gains (losses) | (5 | ) | ||
Total revenues | 50 | |||
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 11 | |||
Acquisition and operating expenses, net of deferrals | 7 | |||
Amortization of deferred acquisition costs and intangibles | 6 | |||
Interest expense | 1 | |||
Total benefits and expenses | 25 | |||
Income before income taxes and loss on sale (1) | 25 | |||
Provision for income taxes | 7 | |||
Income before loss on sale | 18 | |||
Loss on sale, net of taxes | (3 | ) | ||
Income from discontinued operations, net of taxes | 15 | |||
Less: net income from discontinued operations attributable to noncontrolling interests | 8 | |||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders | $ | 7 | ||
(Amounts in millions) | Three months ended June 30, 2021 | Six months ended June 30, 2021 | ||||||
Revenues: | ||||||||
Premiums | $ | — | $ | 51 | ||||
Net investment income | — | 4 | ||||||
Net investment gains (losses) | — | (5 | ) | |||||
Total revenues | — | 50 | ||||||
Benefits and expenses: | ||||||||
Benefits and other changes in policy reserves | — | 11 | ||||||
Acquisition and operating expenses, net of deferrals | — | 7 | ||||||
Amortization of deferred acquisition costs and intangibles | — | 6 | ||||||
Interest expense | — | 1 | ||||||
Total benefits and expenses | — | 25 | ||||||
Income before income taxes and loss on sale (1) | — | 25 | ||||||
Provision for income taxes | — | 8 | ||||||
Income before loss on sale | — | 17 | ||||||
Loss on sale, net of taxes | — | (3 | ) | |||||
Income from discontinued operations, net of taxes | — | 14 | ||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | 8 | ||||||
Income from discontinued operations available to Genworth Financial, Inc.’s common stockholders | $ | — | $ | 6 | ||||
(1) | The pre-tax income from discontinued operations available to Genworth Financial, Inc.’s common stockholders of $13 million. |
(Amounts in millions) | British Pounds | U.S. Dollar | British Pounds | U.S. Dollar | ||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Installment payments due to AXA: | ||||||||||||||||||||||||||||||||
June 2022: | �� | |||||||||||||||||||||||||||||||
Beginning balance | £ | 0 | £ | 159 | $ | 0 | $ | 217 | £ | — | £ | 159 | $ | — | $ | 217 | ||||||||||||||||
Prepayments (1) | 0 | (159 | ) | 0 | (217 | ) | — | (159 | ) | — | (217 | ) | ||||||||||||||||||||
Ending balance | 0 | 0 | 0 | 0 | — | — | — | — | ||||||||||||||||||||||||
September 2022: | ||||||||||||||||||||||||||||||||
Beginning balance | 0 | 187 | 0 | 256 | — | 187 | — | 256 | ||||||||||||||||||||||||
Amounts billed as future losses | 0 | 45 | 0 | 61 | — | 45 | — | 61 | ||||||||||||||||||||||||
Prepayments (1) | 0 | (232 | ) | 0 | (324 | ) | — | (232 | ) | — | (324 | ) | ||||||||||||||||||||
Foreign exchange and other | 0 | 0 | 0 | 7 | — | — | — | 7 | ||||||||||||||||||||||||
Ending balance | 0 | 0 | 0 | 0 | — | — | — | — | ||||||||||||||||||||||||
Total amounts due under the promissory note | 0 | 0 | 0 | 0 | — | — | — | — | ||||||||||||||||||||||||
Future claims: | ||||||||||||||||||||||||||||||||
Estimated beginning balance | 22 | 79 | 30 | 108 | 22 | 79 | 30 | 108 | ||||||||||||||||||||||||
Plus: Additional amounts invoiced | 1 | 0 | 1 | 0 | 2 | — | 2 | — | ||||||||||||||||||||||||
Change in estimated future claims | 0 | (10 | ) | 0 | (14 | ) | — | (10 | ) | — | (14 | ) | ||||||||||||||||||||
Less: Amounts billed and included as mandatory prepayments | 0 | (45 | ) | 0 | (61 | ) | — | (45 | ) | — | (61 | ) | ||||||||||||||||||||
Less: Amounts paid | (22 | ) | (2 | ) | (30 | ) | (3 | ) | (23 | ) | (2 | ) | (31 | ) | (3 | ) | ||||||||||||||||
Foreign exchange and other | 0— | 0— | 0 | 0— | — | — | — | — | ||||||||||||||||||||||||
Estimated future claims | 1 | 22 | 1 | 30 | 1 | 22 | 1 | 30 | ||||||||||||||||||||||||
Total amounts due to AXA under the settlement agreement | £ | 1 | £ | 22 | $ | 1 | $ | 30 | £ | 1 | £ | 22 | $ | 1 | $ | 30 | ||||||||||||||||
(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 mandatoryprincipal 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. On September 21, 2021, we used a portion of the net proceeds from the minority IPO of Enact Holdings to repay the remaining outstanding balance of the secured promissory note of approximately £215 million ($296 million). |
competition with government-owned and government-sponsored enterprises may put Enact Holdings at a competitive disadvantage on pricing and other terms and conditions; the design and effectiveness of our disclosure controls and procedures and internal control over financial reporting may not prevent all errors, misstatements or misrepresentations; and failure or any compromise of the security of our computer systems, disaster recovery systems, business continuity plans and failures to safeguard or breaches of confidential information; |
which are costs and expenses that are related directly to the successful acquisition of new or renewal insurance policies and investment contracts, such as first-year commissions in excess of ultimate renewal commissions and other policy issuance expenses. |
difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. |
Three months ended March 31, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||
Revenues: | �� | |||||||||||||||||||||||||||||||
Premiums | $ | 931 | $ | 968 | $ | (37 | ) | (4 | )% | $ | 927 | $ | 947 | $ | (20 | ) | (2 | )% | ||||||||||||||
Net investment income | 764 | 801 | (37 | ) | (5 | )% | 787 | 844 | (57 | ) | (7 | )% | ||||||||||||||||||||
Net investment gains (losses) | 28 | 33 | (5 | ) | (15 | )% | 8 | 70 | (62 | ) | (89 | )% | ||||||||||||||||||||
Policy fees and other income | 169 | 183 | (14 | ) | (8 | )% | 159 | 180 | (21 | ) | (12 | )% | ||||||||||||||||||||
Total revenues | 1,892 | 1,985 | (93 | ) | (5 | )% | 1,881 | 2,041 | (160 | ) | (8 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 1,139 | 1,218 | (79 | ) | (6 | )% | 764 | 1,161 | (397 | ) | (34 | )% | ||||||||||||||||||||
Interest credited | 125 | 131 | (6 | ) | (5 | )% | 125 | 127 | (2 | ) | (2 | )% | ||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 271 | 275 | (4 | ) | (1 | )% | 589 | 304 | 285 | 94 | % | |||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 92 | 77 | 15 | 19 | % | 84 | 86 | (2 | ) | (2 | )% | |||||||||||||||||||||
Interest expense | 26 | 51 | (25 | ) | (49 | )% | 26 | 43 | (17 | ) | (40 | )% | ||||||||||||||||||||
Total benefits and expenses | 1,653 | 1,752 | (99 | ) | (6 | )% | 1,588 | 1,721 | (133 | ) | (8 | )% | ||||||||||||||||||||
Income from continuing operations before income taxes | 239 | 233 | 6 | 3 | % | 293 | 320 | (27 | ) | (8 | )% | |||||||||||||||||||||
Provision for income taxes | 58 | 59 | (1 | ) | (2 | )% | 73 | 75 | (2 | ) | (3 | )% | ||||||||||||||||||||
Income from continuing operations | 181 | 174 | 7 | 4 | % | 220 | 245 | (25 | ) | (10 | )% | |||||||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (2 | ) | 21 | (23 | ) | (110 | )% | |||||||||||||||||||||||||
Loss from discontinued operations, net of taxes | (1 | ) | (5 | ) | 4 | 80 | % | |||||||||||||||||||||||||
Net income | 179 | 195 | (16 | ) | (8 | )% | 219 | 240 | (21 | ) | (9 | )% | ||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 30 | — | 30 | NM | (1) | 38 | — | 38 | NM | (1) | ||||||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | 8 | (8 | ) | (100 | )% | — | — | — | — | % | |||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 149 | $ | 187 | $ | (38 | ) | (20 | )% | $ | 181 | $ | 240 | $ | (59 | ) | (25 | )% | ||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 151 | $ | 174 | $ | (23 | ) | (13 | )% | $ | 182 | $ | 245 | $ | (63 | ) | (26 | )% | ||||||||||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | (2 | ) | 13 | (15 | ) | (115 | )% | |||||||||||||||||||||||||
Loss from discontinued operations available to Genworth Financial, Inc.’s common stockholders | (1 | ) | (5 | ) | 4 | 80 | % | |||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 149 | $ | 187 | $ | (38 | ) | (20 | )% | $ | 181 | $ | 240 | $ | (59 | ) | (25 | )% | ||||||||||||||
(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) | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 1,858 | $ | 1,915 | $ | (57 | ) | (3 | )% | |||||||
Net investment income | 1,551 | 1,645 | (94 | ) | (6 | )% | ||||||||||
Net investment gains (losses) | 36 | 103 | (67 | ) | (65 | )% | ||||||||||
Policy fees and other income | 328 | 363 | (35 | ) | (10 | )% | ||||||||||
Total revenues | 3,773 | 4,026 | (253 | ) | (6 | )% | ||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 1,903 | 2,379 | (476 | ) | (20 | )% | ||||||||||
Interest credited | 250 | 258 | (8 | ) | (3 | )% | ||||||||||
Acquisition and operating expenses, net of deferrals | 860 | 579 | 281 | 49 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 176 | 163 | 13 | 8 | % | |||||||||||
Interest expense | 52 | 94 | (42 | ) | (45 | )% | ||||||||||
Total benefits and expenses | 3,241 | 3,473 | (232 | ) | (7 | )% | ||||||||||
Income from continuing operations before income taxes | 532 | 553 | (21 | ) | (4 | )% | ||||||||||
Provision for income taxes | 131 | 134 | (3 | ) | (2 | )% | ||||||||||
Income from continuing operations | 401 | 419 | (18 | ) | (4 | )% | ||||||||||
Income (loss) from discontinued operations, net of taxes | (3 | ) | 16 | (19 | ) | (119 | )% | |||||||||
Net income | 398 | 435 | (37 | ) | (9 | )% | ||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 68 | — | 68 | NM | (1) | |||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | 8 | (8 | ) | (100 | )% | ||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 330 | $ | 427 | $ | (97 | ) | (23 | )% | |||||||
Net income available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | $ | 333 | $ | 419 | $ | (86 | ) | (21 | )% | |||||||
Income (loss) from discontinued operations available to Genworth Financial, Inc.’s common stockholders | (3 | ) | 8 | (11 | ) | (138 | )% | |||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 330 | $ | 427 | $ | (97 | ) | (23 | )% | |||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Three months ended | ||||||||||||||||||||||||
March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 149 | $ | 187 | $ | 181 | $ | 240 | $ | 330 | $ | 427 | ||||||||||||
Add: net income from continuing operations attributable to noncontrolling interests | 30 | — | 38 | — | 68 | — | ||||||||||||||||||
Add: net income from discontinued operations attributable to noncontrolling interests | — | 8 | — | — | — | 8 | ||||||||||||||||||
Net income | 179 | 195 | 219 | 240 | 398 | 435 | ||||||||||||||||||
Less: income (loss) from discontinued operations, net of taxes | (2 | ) | 21 | |||||||||||||||||||||
Less: Income (loss) from discontinued operations, net of taxes | (1 | ) | (5 | ) | (3 | ) | 16 | |||||||||||||||||
Income from continuing operations | 181 | 174 | 220 | 245 | 401 | 419 | ||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 30 | — | 38 | — | 68 | — | ||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 151 | 174 | 182 | 245 | 333 | 419 | ||||||||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||
Net investment (gains) losses, net | (28 | ) | (33 | ) | ||||||||||||||||||||
Net investment (gains) losses, net (1) | (10 | ) | (70 | ) | (38 | ) | (103 | ) | ||||||||||||||||
(Gains) losses on early extinguishment of debt | 3 | 4 | 1 | — | 4 | 4 | ||||||||||||||||||
Expenses related to restructuring | — | 21 | 1 | 5 | 1 | 26 | ||||||||||||||||||
Taxes on adjustments | 5 | 2 | 2 | 14 | 7 | 16 | ||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 131 | $ | 168 | $ | 176 | $ | 194 | $ | 307 | $ | 362 | ||||||||||||
(1) | For the three months and six months ended June 30, 2022, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(2) million. |
Three months ended March 31, | 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, except per share amounts) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.35 | $ | (0.05 | ) | (14 | )% | $ | 0.36 | $ | 0.48 | $ | (0.12 | ) | (25 | )% | $ | 0.65 | $ | 0.83 | $ | (0.18 | ) | (22 | )% | |||||||||||||||||||||
Diluted | $ | 0.29 | $ | 0.34 | $ | (0.05 | ) | (15 | )% | $ | 0.36 | $ | 0.47 | $ | (0.11 | ) | (23 | )% | $ | 0.65 | $ | 0.82 | $ | (0.17 | ) | (21 | )% | |||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.37 | $ | (0.08 | ) | (22 | )% | $ | 0.36 | $ | 0.47 | $ | (0.11 | ) | (23 | )% | $ | 0.65 | $ | 0.84 | $ | (0.19 | ) | (23 | )% | |||||||||||||||||||||
Diluted | $ | 0.29 | $ | 0.37 | $ | (0.08 | ) | (22 | )% | $ | 0.35 | $ | 0.47 | $ | (0.12 | ) | (26 | )% | $ | 0.64 | $ | 0.83 | $ | (0.19 | ) | (23 | )% | |||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders per share: | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.26 | $ | 0.33 | $ | (0.07 | ) | (21 | )% | $ | 0.35 | $ | 0.38 | $ | (0.03 | ) | (8 | )% | $ | 0.60 | $ | 0.71 | $ | (0.11 | ) | (15 | )% | |||||||||||||||||||||
Diluted | $ | 0.25 | $ | 0.33 | $ | (0.08 | ) | (24 | )% | $ | 0.34 | $ | 0.38 | $ | (0.04 | ) | (11 | )% | $ | 0.60 | $ | 0.70 | $ | (0.10 | ) | (14 | )% | |||||||||||||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 508.3 | 506.0 | 509.0 | 507.0 | 508.6 | 506.5 | ||||||||||||||||||||||||||||||||||||||||||
Diluted | 517.4 | 513.8 | 514.2 | 515.0 | 515.8 | 514.4 | ||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, | 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) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||||||||||||||||||
Enact segment | $ | 135 | $ | 126 | $ | 9 | 7 | % | $ | 167 | $ | 135 | $ | 32 | 24 | % | $ | 302 | $ | 261 | $ | 41 | 16 | % | ||||||||||||||||||||||||
U.S. Life Insurance segment: | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term care insurance | 59 | 95 | (36 | ) | (38 | )% | 34 | 98 | (64 | ) | (65 | )% | 93 | 193 | (100 | ) | (52 | )% | ||||||||||||||||||||||||||||||
Life insurance | (79 | ) | (63 | ) | (16 | ) | (25 | )% | (34 | ) | (40 | ) | 6 | 15 | % | (113 | ) | (103 | ) | (10 | ) | (10 | )% | |||||||||||||||||||||||||
Fixed annuities | 16 | 30 | (14 | ) | (47 | )% | 21 | 13 | 8 | 62 | % | 37 | 43 | (6 | ) | (14 | )% | |||||||||||||||||||||||||||||||
U.S. Life Insurance segment | (4 | ) | 62 | (66 | ) | (106 | )% | 21 | 71 | (50 | ) | (70 | )% | 17 | 133 | (116 | ) | (87 | )% | |||||||||||||||||||||||||||||
Runoff segment | 9 | 12 | (3 | ) | (25 | )% | 2 | 15 | (13 | ) | (87 | )% | 11 | 27 | (16 | ) | (59 | )% | ||||||||||||||||||||||||||||||
Corporate and Other activities | (9 | ) | (32 | ) | 23 | 72 | % | (14 | ) | (27 | ) | 13 | 48 | % | (23 | ) | (59 | ) | 36 | 61 | % | |||||||||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 131 | $ | 168 | $ | (37 | ) | (22 | )% | $ | 176 | $ | 194 | $ | (18 | ) | (9 | )% | $ | 307 | $ | 362 | $ | (55 | ) | (15 | )% | |||||||||||||||||||||
Three months ended March 31, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 234 | $ | 252 | $ | (18 | ) | (7 | )% | $ | 238 | $ | 243 | $ | (5 | ) | (2 | )% | ||||||||||||||
Net investment income | 35 | 35 | — | — | % | 36 | 35 | 1 | 3 | % | ||||||||||||||||||||||
Net investment gains (losses) | — | (1 | ) | 1 | 100 | % | (1 | ) | (2 | ) | 1 | 50 | % | |||||||||||||||||||
Policy fees and other income | 1 | 2 | (1 | ) | (50 | )% | ||||||||||||||||||||||||||
Total revenues | 270 | 288 | (18 | ) | (6 | )% | 273 | 276 | (3 | ) | (1 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | (10 | ) | 55 | (65 | ) | (118 | )% | (62 | ) | 30 | (92 | ) | NM | (1) | ||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 54 | 57 | (3 | ) | (5 | )% | 58 | 63 | (5 | ) | (8 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 3 | 4 | (1 | ) | (25 | )% | 3 | 4 | (1 | ) | (25 | )% | ||||||||||||||||||||
Interest expense | 13 | 13 | — | — | % | 13 | 12 | 1 | 8 | % | ||||||||||||||||||||||
Total benefits and expenses | 60 | 129 | (69 | ) | (53 | )% | 12 | 109 | (97 | ) | (89 | )% | ||||||||||||||||||||
Income from continuing operations before income taxes | 210 | 159 | 51 | 32 | % | 261 | 167 | 94 | 56 | % | ||||||||||||||||||||||
Provision for income taxes | 45 | 34 | 11 | 32 | % | 57 | 35 | 22 | 63 | % | ||||||||||||||||||||||
Income from continuing operations | 165 | 125 | 40 | 32 | % | 204 | 132 | 72 | 55 | % | ||||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 30 | — | 30 | NM | (1) | 38 | — | 38 | NM | (1) | ||||||||||||||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 135 | 125 | 10 | 8 | % | 166 | 132 | 34 | 26 | % | ||||||||||||||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | — | 1 | (1 | ) | (100 | )% | 1 | 2 | (1 | ) | (50 | )% | ||||||||||||||||||||
Expenses related to restructuring | — | 2 | (2 | ) | (100 | )% | ||||||||||||||||||||||||||
Taxes on adjustments | — | — | — | — | % | — | (1 | ) | 1 | 100 | % | |||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 135 | $ | 126 | $ | 9 | 7 | % | $ | 167 | $ | 135 | $ | 32 | 24 | % | ||||||||||||||||
(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) | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 472 | $ | 495 | $ | (23 | ) | (5 | )% | |||||||
Net investment income | 71 | 70 | 1 | 1 | % | |||||||||||
Net investment gains (losses) | (1 | ) | (3 | ) | 2 | 67 | % | |||||||||
Policy fees and other income | 1 | 2 | (1 | ) | (50 | )% | ||||||||||
Total revenues | 543 | 564 | (21 | ) | (4 | )% | ||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | (72 | ) | 85 | (157 | ) | (185 | )% | |||||||||
Acquisition and operating expenses, net of deferrals | 112 | 120 | (8 | ) | (7 | )% | ||||||||||
Amortization of deferred acquisition costs and intangibles | 6 | 8 | (2 | ) | (25 | )% | ||||||||||
Interest expense | 26 | 25 | 1 | 4 | % | |||||||||||
Total benefits and expenses | 72 | 238 | (166 | ) | (70 | )% | ||||||||||
Income from continuing operations before income taxes | 471 | 326 | 145 | 44 | % | |||||||||||
Provision for income taxes | 102 | 69 | 33 | 48 | % | |||||||||||
Income from continuing operations | 369 | 257 | 112 | 44 | % | |||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | 68 | — | 68 | NM | (1) | |||||||||||
Income from continuing operations available to Genworth Financial, Inc.’s common stockholders | 301 | 257 | 44 | 17 | % | |||||||||||
Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Net investment (gains) losses | 1 | 3 | (2 | ) | (67 | )% | ||||||||||
Expenses related to restructuring | — | 2 | (2 | ) | (100 | )% | ||||||||||
Taxes on adjustments | — | (1 | ) | 1 | 100 | % | ||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 302 | $ | 261 | $ | 41 | 16 | % | ||||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
As of or for the three months ended March 31, | Increase (decrease) and percentage change | As of June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||
Primary insurance in-force (1) | $ | 231,853 | $ | 210,187 | $ | 21,666 | 10 | % | $ | 237,563 | $ | 217,477 | $ | 20,086 | 9 | % | ||||||||||||||||
Risk in-force: | ||||||||||||||||||||||||||||||||
Primary | $ | 58,295 | $ | 52,866 | $ | 5,429 | 10 | % | $ | 59,911 | $ | 54,643 | $ | 5,268 | 10 | % | ||||||||||||||||
Pool | 97 | 134 | (37 | ) | (28 | )% | 89 | 123 | (34 | ) | (28 | )% | ||||||||||||||||||||
Total risk in-force | $ | 58,392 | $ | 53,000 | $ | 5,392 | 10 | % | $ | 60,000 | $ | 54,766 | $ | 5,234 | 10 | % | ||||||||||||||||
New insurance written | $ | 18,823 | $ | 24,934 | $ | (6,111 | ) | (25 | )% |
(1) | Primary insurance in-force represents the aggregate unpaid principal balance for loans Enact insures. |
Three months ended June 30, | Increase (decrease) and percentage change | Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||
New insurance written | $ | 17,448 | $ | 26,657 | $ | (9,209 | ) | (35 | )% | $ | 36,271 | $ | 51,591 | $ | (15,320 | ) | (30 | )% |
Three months ended March 31, | Increase (decrease) | |||||||||||||||||||||||||||||||||||
Three months ended June 30, | Increase (decrease) | Six months ended June 30, | Increase (decrease) | |||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||||
Loss ratio | (4 | )% | 22 | % | (26 | )% | (26 | )% | 12 | % | (38 | )% | (15 | )% | 17 | % | (32 | )% | ||||||||||||||||||
Expense ratio | 24 | % | 24 | % | — | % | 26 | % | 27 | % | (1 | )% | 25 | % | 26 | % | (1 | )% |
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Primary insurance in-force by loan-to-value ratio at origination: | ||||||||||||||||
95.01% and above | $ | 36,867 | $ | 33,757 | $ | 37,636 | $ | 33,657 | ||||||||
90.01% to 95.00% | 96,419 | 92,124 | 99,303 | 94,307 | ||||||||||||
85.01% to 90.00% | 66,226 | 58,098 | 67,866 | 61,234 | ||||||||||||
85.00% and below | 32,341 | 26,208 | 32,758 | 28,279 | ||||||||||||
Total | $ | 231,853 | $ | 210,187 | $ | 237,563 | $ | 217,477 | ||||||||
Primary risk in-force by loan-to-value ratio at origination: | ||||||||||||||||
95.01% and above | $ | 10,379 | $ | 9,151 | $ | 10,647 | $ | 9,228 | ||||||||
90.01% to 95.00% | 27,987 | 26,637 | 28,838 | 27,308 | ||||||||||||
85.01% to 90.00% | 16,082 | 13,997 | 16,517 | 14,776 | ||||||||||||
85.00% and below | 3,847 | 3,081 | 3,909 | 3,331 | ||||||||||||
Total | $ | 58,295 | $ | 52,866 | $ | 59,911 | $ | 54,643 | ||||||||
Primary insurance in-force by FICO (1) score at origination: | ||||||||||||||||
Over 760 | $ | 93,222 | $ | 79,285 | $ | 96,625 | $ | 83,602 | ||||||||
740-759 | 36,821 | 33,607 | 37,853 | 34,402 | ||||||||||||
720-739 | 32,363 | 30,295 | 33,263 | 30,964 | ||||||||||||
700-719 | 27,620 | 26,309 | 28,136 | 27,032 | ||||||||||||
680-699 | 21,259 | 20,777 | 21,221 | 21,469 | ||||||||||||
660-679 (2) | 10,805 | 10,001 | 10,822 | 10,191 | ||||||||||||
640-659 | 6,188 | 5,981 | 6,154 | 6,008 | ||||||||||||
620-639 | 2,774 | 2,893 | 2,725 | 2,838 | ||||||||||||
<620 | 801 | 1,039 | 764 | 971 | ||||||||||||
Total | $ | 231,853 | $ | 210,187 | $ | 237,563 | $ | 217,477 | ||||||||
Primary risk in-force by FICO score at origination: | ||||||||||||||||
Over 760 | $ | 23,326 | $ | 19,829 | $ | 24,252 | $ | 20,908 | ||||||||
740-759 | 9,267 | 8,442 | 9,559 | 8,628 | ||||||||||||
720-739 | 8,224 | 7,715 | 8,484 | 7,879 | ||||||||||||
700-719 | 6,974 | 6,678 | 7,129 | 6,848 | ||||||||||||
680-699 | 5,334 | 5,231 | 5,329 | 5,385 | ||||||||||||
660-679 (2) | 2,715 | 2,484 | 2,728 | 2,531 | ||||||||||||
640-659 | 1,550 | 1,485 | 1,547 | 1,494 | ||||||||||||
620-639 | 699 | 734 | 687 | 720 | ||||||||||||
<620 | 206 | 268 | 196 | 250 | ||||||||||||
Total | $ | 58,295 | $ | 52,866 | $ | 59,911 | $ | 54,643 | ||||||||
(1) | Fair Isaac Company. |
(2) | Loans with unknown FICO scores are included in the 660-679 category. |
March 31, 2022 | December 31, 2021 | March 31, 2021 | June 30, 2022 | December 31, 2021 | June 30, 2021 | |||||||||||||||||||
Primary insurance: | ||||||||||||||||||||||||
Insured loans in-force | 941,689 | 937,350 | 922,186 | 946,891 | 937,350 | 933,616 | ||||||||||||||||||
Delinquent loans | 22,571 | 24,820 | 41,332 | 19,513 | 24,820 | 33,568 | ||||||||||||||||||
Percentage of delinquent loans (delinquency rate) | 2.40 | % | 2.65 | % | 4.48 | % | 2.06 | % | 2.65 | % | 3.60 | % |
March 31, 2022 | June 30, 2022 | |||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Delinquencies | Direct case reserves (1) | Risk in-force | Reserves as % of risk in-force | Delinquencies | Direct primary case reserves (1) | Risk in- force | Reserves as % of risk in-force | ||||||||||||||||||||||||
Payments in default: | ||||||||||||||||||||||||||||||||
3 payments or less | 6,837 | $ | 38 | $ | 359 | 11 | % | 6,442 | $ | 35 | $ | 341 | 10 | % | ||||||||||||||||||
4 - 11 payments | 6,875 | 115 | 392 | 29 | % | 6,372 | 122 | 368 | 33 | % | ||||||||||||||||||||||
12 payments or more | 8,859 | 438 | 515 | 85 | % | 6,699 | 369 | 382 | 97 | % | ||||||||||||||||||||||
Total | 22,571 | $ | 591 | $ | 1,266 | 47 | % | 19,513 | $ | 526 | $ | 1,091 | 48 | % | ||||||||||||||||||
December 31, 2021 | December 31, 2021 | |||||||||||||||||||||||||||||||
(Dollar amounts in millions) | Delinquencies | Direct case reserves (1) | Risk in-force | Reserves as % of risk in-force | Delinquencies | Direct primary case reserves (1) | Risk in- force | Reserves as % of risk in-force | ||||||||||||||||||||||||
Payments in default: | ||||||||||||||||||||||||||||||||
3 payments or less | 6,586 | $ | 35 | $ | 340 | 10 | % | 6,586 | $ | 35 | $ | 340 | 10 | % | ||||||||||||||||||
4 - 11 payments | 7,360 | 111 | 426 | 26 | % | 7,360 | 111 | 426 | 26 | % | ||||||||||||||||||||||
12 payments or more | 10,874 | 460 | 643 | 72 | % | 10,874 | 460 | 643 | 72 | % | ||||||||||||||||||||||
Total | 24,820 | $ | 606 | $ | 1,409 | 43 | % | 24,820 | $ | 606 | $ | 1,409 | 43 | % | ||||||||||||||||||
(1) | Direct primary case reserves exclude loss adjustment expenses, pool, |
Percent of primary risk in-force as of March 31, 2022 | Percent of direct case reserves as of March 31, 2022 (1) | Delinquency rate as of | Percent of primary risk in-force as of June 30, 2022 | Percent of direct primary case reserves as of June 30, 2022 (1) | Delinquency rate as of | |||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | June 30, 2022 | December 31, 2021 | June 30, 2021 | |||||||||||||||||||||||||||||||||||
By State: | ||||||||||||||||||||||||||||||||||||||||
California | 11 | % | 11 | % | 2.75 | % | 3.17 | % | 5.76 | % | 11 | % | 10 | % | 2.18 | % | 3.17 | % | 4.70 | % | ||||||||||||||||||||
Texas | 8 | % | 8 | % | 2.51 | % | 2.89 | % | 5.25 | % | 8 | % | 8 | % | 2.12 | % | 2.89 | % | 4.20 | % | ||||||||||||||||||||
Florida (2) | 7 | % | 9 | % | 2.51 | % | 2.97 | % | 5.97 | % | 8 | % | 8 | % | 2.06 | % | 2.97 | % | 4.52 | % | ||||||||||||||||||||
New York (2) | 5 | % | 12 | % | 3.51 | % | 3.80 | % | 6.36 | % | 5 | % | 13 | % | 3.17 | % | 3.80 | % | 5.10 | % | ||||||||||||||||||||
Illinois (2) | 5 | % | 6 | % | 2.85 | % | 3.09 | % | 5.07 | % | 5 | % | 6 | % | 2.53 | % | 3.09 | % | 4.13 | % | ||||||||||||||||||||
Michigan | 4 | % | 2 | % | 1.87 | % | 1.87 | % | 2.68 | % | 4 | % | 3 | % | 1.66 | % | 1.87 | % | 2.11 | % | ||||||||||||||||||||
Arizona | 4 | % | 2 | % | 1.92 | % | 2.31 | % | 4.06 | % | 4 | % | 2 | % | 1.71 | % | 2.31 | % | 3.13 | % | ||||||||||||||||||||
North Carolina | 3 | % | 2 | % | 1.96 | % | 2.18 | % | 3.60 | % | 3 | % | 2 | % | 1.67 | % | 2.18 | % | 2.99 | % | ||||||||||||||||||||
Pennsylvania (2) | 3 | % | 3 | % | 2.30 | % | 2.38 | % | 3.83 | % | 3 | % | 3 | % | 2.13 | % | 2.38 | % | 3.06 | % | ||||||||||||||||||||
Washington | 3 | % | 3 | % | 2.68 | % | 2.98 | % | 5.47 | % | ||||||||||||||||||||||||||||||
Georgia | 3 | % | 3 | % | 2.21 | % | 2.94 | % | 4.28 | % |
(1) | Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
(2) | Jurisdiction predominantly uses a judicial foreclosure process, which generally increases the amount of time it takes for a foreclosure to be |
Percent of primary risk in-force as of March 31, 2022 | Percent of direct case reserves as of March 31, 2022 (1) | Delinquency rate as of | Percent of primary risk in-force as of June 30, 2022 | Percent of direct primary case reserves as of June 30, 2022 (1) | Delinquency rate as of | |||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | June 30, 2022 | December 31, 2021 | June 30, 2021 | |||||||||||||||||||||||||||||||||||
By MSA or MD: | ||||||||||||||||||||||||||||||||||||||||
Chicago-Naperville, IL MD | 3 | % | 5 | % | 3.39 | % | 3.68 | % | 6.28 | % | 3 | % | 5 | % | 2.94 | % | 3.68 | % | 5.09 | % | ||||||||||||||||||||
Phoenix, AZ MSA | 3 | % | 2 | % | 1.92 | % | 2.36 | % | 4.12 | % | 3 | % | 2 | % | 1.71 | % | 2.36 | % | 3.15 | % | ||||||||||||||||||||
New York, NY MD | 3 | % | 8 | % | 4.68 | % | 5.32 | % | 9.56 | % | 3 | % | 8 | % | 4.17 | % | 5.32 | % | 7.69 | % | ||||||||||||||||||||
Atlanta, GA MSA | 2 | % | 3 | % | 2.92 | % | 3.28 | % | 6.10 | % | 2 | % | 3 | % | 2.42 | % | 3.28 | % | 4.84 | % | ||||||||||||||||||||
Washington-Arlington, DC MD | 2 | % | 2 | % | 2.50 | % | 2.96 | % | 5.84 | % | 2 | % | 2 | % | 1.98 | % | 2.96 | % | 4.86 | % | ||||||||||||||||||||
Houston, TX MSA | 2 | % | 3 | % | 3.20 | % | 3.61 | % | 6.89 | % | 2 | % | 3 | % | 2.86 | % | 3.61 | % | 5.54 | % | ||||||||||||||||||||
Riverside-San Bernardino, CA MSA | 2 | % | 2 | % | 3.05 | % | 3.42 | % | 6.53 | % | 2 | % | 2 | % | 2.72 | % | 3.42 | % | 5.24 | % | ||||||||||||||||||||
Los Angeles-Long Beach, CA MD | 2 | % | 3 | % | 3.22 | % | 3.95 | % | 7.30 | % | 2 | % | 2 | % | 2.35 | % | 3.95 | % | 5.89 | % | ||||||||||||||||||||
Dallas, TX MD | 2 | % | 2 | % | 2.04 | % | 2.31 | % | 4.59 | % | 2 | % | 1 | % | 1.70 | % | 2.31 | % | 3.60 | % | ||||||||||||||||||||
Nassau County, NY MD | 2 | % | 5 | % | 5.02 | % | 5.55 | % | 10.13 | % | 2 | % | 5 | % | 4.25 | % | 5.55 | % | 8.10 | % |
(1) | Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
(Amounts in millions) | Percent of direct case reserves (1) | Primary insurance in-force | Percent of total | Primary risk in-force | Percent of total | Delinquency rate | Percent of direct primary case reserves (1) | Primary insurance in-force | Percent of total | Primary risk in- force | Percent of total | Delinquency rate | ||||||||||||||||||||||||||||||||||||
Policy Year | ||||||||||||||||||||||||||||||||||||||||||||||||
2008 and prior | 25 | % | $ | 7,723 | 3 | % | $ | 1,991 | 3 | % | 10.41 | % | 26 | % | $ | 7,246 | 3 | % | $ | 1,867 | 3 | % | 9.81 | % | ||||||||||||||||||||||||
2009 to 2014 | 5 | 2,946 | 1 | 788 | 1 | 5.34 | % | 5 | 2,577 | 1 | 687 | 1 | 5.06 | % | ||||||||||||||||||||||||||||||||||
2015 | 5 | 3,960 | 2 | 1,058 | 2 | 4.06 | % | 4 | 3,526 | 1 | 943 | 2 | 3.58 | % | ||||||||||||||||||||||||||||||||||
2016 | 7 | 8,076 | 4 | 2,147 | 4 | 3.48 | % | 7 | 7,377 | 3 | 1,964 | 3 | 3.16 | % | ||||||||||||||||||||||||||||||||||
2017 | 10 | 8,023 | 4 | 2,094 | 4 | 4.43 | % | 9 | 7,328 | 3 | 1,922 | 3 | 3.84 | % | ||||||||||||||||||||||||||||||||||
2018 | 12 | 8,306 | 4 | 2,092 | 4 | 5.48 | % | 11 | 7,613 | 3 | 1,922 | 3 | 4.70 | % | ||||||||||||||||||||||||||||||||||
2019 | 17 | 19,609 | 8 | 4,935 | 8 | 3.44 | % | 15 | 18,141 | 8 | 4,575 | 8 | 2.81 | % | ||||||||||||||||||||||||||||||||||
2020 | 15 | 65,807 | 28 | 16,606 | 28 | 1.49 | % | 17 | 62,154 | 26 | 15,763 | 26 | 1.33 | % | ||||||||||||||||||||||||||||||||||
2021 | 4 | 88,757 | 38 | 21,959 | 38 | 0.58 | % | 6 | 86,175 | 37 | 21,384 | 36 | 0.72 | % | ||||||||||||||||||||||||||||||||||
2022 | — | 18,646 | 8 | 4,625 | 8 | 0.04 | % | — | 35,426 | 15 | 8,884 | 15 | 0.14 | % | ||||||||||||||||||||||||||||||||||
Total portfolio | 100 | % | $ | 231,853 | 100 | % | $ | 58,295 | 100 | % | 2.40 | % | 100 | % | $ | 237,563 | 100 | % | $ | 59,911 | 100 | % | 2.06 | % | ||||||||||||||||||||||||
(1) | Direct primary case reserves exclude loss adjustment expenses, pool, IBNR and reinsurance reserves. |
Three months ended March 31, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 695 | $ | 714 | $ | (19 | ) | (3 | )% | $ | 688 | $ | 703 | $ | (15 | ) | (2 | )% | ||||||||||||||
Net investment income | 676 | 716 | (40 | ) | (6 | )% | 700 | 763 | (63 | ) | (8 | )% | ||||||||||||||||||||
Net investment gains (losses) | 56 | 42 | 14 | 33 | % | 4 | 66 | (62 | ) | (94 | )% | |||||||||||||||||||||
Policy fees and other income | 137 | 148 | (11 | ) | (7 | )% | 129 | 145 | (16 | ) | (11 | )% | ||||||||||||||||||||
Total revenues | 1,564 | 1,620 | (56 | ) | (3 | )% | 1,521 | 1,677 | (156 | ) | (9 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 1,141 | 1,155 | (14 | ) | (1 | )% | 816 | 1,129 | (313 | ) | (28 | )% | ||||||||||||||||||||
Interest credited | 82 | 90 | (8 | ) | (9 | )% | 80 | 87 | (7 | ) | (8 | )% | ||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 199 | 192 | 7 | 4 | % | 513 | 219 | 294 | 134 | % | ||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 83 | 68 | 15 | 22 | % | 72 | 77 | (5 | ) | (6 | )% | |||||||||||||||||||||
Total benefits and expenses | 1,505 | 1,505 | — | — | % | 1,481 | 1,512 | (31 | ) | (2 | )% | |||||||||||||||||||||
Income from continuing operations before income taxes | 59 | 115 | (56 | ) | (49 | )% | 40 | 165 | (125 | ) | (76 | )% | ||||||||||||||||||||
Provision for income taxes | 20 | 32 | (12 | ) | (38 | )% | 15 | 42 | (27 | ) | (64 | )% | ||||||||||||||||||||
Income from continuing operations | 39 | 83 | (44 | ) | (53 | )% | 25 | 123 | (98 | ) | (80 | )% | ||||||||||||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses, net (1) | (55 | ) | (41 | ) | (14 | ) | (34 | )% | (5 | ) | (67 | ) | 62 | 93 | % | |||||||||||||||||
Expenses related to restructuring | — | 14 | (14 | ) | (100 | )% | 1 | 2 | (1 | ) | (50 | )% | ||||||||||||||||||||
Taxes on adjustments | 12 | 6 | 6 | 100 | % | — | 13 | (13 | ) | (100 | )% | |||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (4 | ) | $ | 62 | $ | (66 | ) | (106 | )% | ||||||||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 21 | $ | 71 | $ | (50 | ) | (70 | )% | |||||||||||||||||||||||
(1) | For the three months ended |
Three months ended March 31, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||||
Long-term care insurance | $ | 59 | $ | 95 | $ | (36 | ) | (38 | )% | $ | 34 | $ | 98 | $ | (64 | ) | (65 | )% | ||||||||||||||
Life insurance | (79 | ) | (63 | ) | (16 | ) | (25 | )% | (34 | ) | (40 | ) | 6 | 15 | % | |||||||||||||||||
Fixed annuities | 16 | 30 | (14 | ) | (47 | )% | 21 | 13 | 8 | 62 | % | |||||||||||||||||||||
Total adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders | $ | (4 | ) | $ | 62 | $ | (66 | ) | (106 | )% | ||||||||||||||||||||||
Total adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 21 | $ | 71 | $ | (50 | ) | (70 | )% | |||||||||||||||||||||||
immediate annuity contracts by a third party and normal block runoff, along with lower bond calls and commercial mortgage loan prepayments in the current year. |
Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 1,383 | $ | 1,417 | $ | (34 | ) | (2 | )% | |||||||
Net investment income | 1,376 | 1,479 | (103 | ) | (7 | )% | ||||||||||
Net investment gains (losses) | 60 | 108 | (48 | ) | (44 | )% | ||||||||||
Policy fees and other income | 266 | 293 | (27 | ) | (9 | )% | ||||||||||
Total revenues | 3,085 | 3,297 | (212 | ) | (6 | )% | ||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 1,957 | 2,284 | (327 | ) | (14 | )% | ||||||||||
Interest credited | 162 | 177 | (15 | ) | (8 | )% | ||||||||||
Acquisition and operating expenses, net of deferrals | 712 | 411 | 301 | 73 | % | |||||||||||
Amortization of deferred acquisition costs and intangibles | 155 | 145 | 10 | 7 | % | |||||||||||
Total benefits and expenses | 2,986 | 3,017 | (31 | ) | (1 | )% | ||||||||||
Income from continuing operations before income taxes | 99 | 280 | (181 | ) | (65 | )% | ||||||||||
Provision for income taxes | 35 | 74 | (39 | ) | (53 | )% | ||||||||||
Income from continuing operations | 64 | 206 | (142 | ) | (69 | )% | ||||||||||
Adjustments to income from continuing operations: | ||||||||||||||||
Net investment (gains) losses, net | (60 | ) | (108 | ) | 48 | 44 | % | |||||||||
Expenses related to restructuring | 1 | 16 | (15 | ) | (94 | )% | ||||||||||
Taxes on adjustments | 12 | 19 | (7 | ) | (37 | )% | ||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 17 | $ | 133 | $ | (116 | ) | (87 | )% | |||||||
Six months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: | ||||||||||||||||
Long-term care insurance | $ | 93 | $ | 193 | $ | (100 | ) | (52 | )% | |||||||
Life insurance | (113 | ) | (103 | ) | (10 | ) | (10 | )% | ||||||||
Fixed annuities | 37 | 43 | (6 | ) | (14 | )% | ||||||||||
Total adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 17 | $ | 133 | $ | (116 | ) | (87 | )% | |||||||
Three months ended March 31, | 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) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||||
Premiums | $ | 210 | $ | 195 | $ | 15 | 8 | % | $ | 226 | $ | 207 | $ | 19 | 9 | % | $ | 436 | $ | 402 | $ | 34 | 8 | % | ||||||||||||||||||||||||
Plus: Benefits and other changes in policy reserves (1) | 236 | 152 | 84 | 55 | % | 121 | 274 | (153 | ) | (56 | )% | 357 | 426 | (69 | ) | (16 | )% | |||||||||||||||||||||||||||||||
Less: Acquisition and operating expenses, net of deferrals (2) | 61 | 40 | 21 | 53 | % | 25 | 88 | (63 | ) | (72 | )% | 86 | 128 | (42 | ) | (33 | )% | |||||||||||||||||||||||||||||||
Adjusted operating income before taxes | 385 | 307 | 78 | 25 | % | 322 | 393 | (71 | ) | (18 | )% | 707 | 700 | 7 | 1 | % | ||||||||||||||||||||||||||||||||
Income taxes | 81 | 64 | 17 | 27 | % | 67 | 83 | (16 | ) | (19 | )% | 148 | 147 | 1 | 1 | % | ||||||||||||||||||||||||||||||||
Adjusted operating income (3) | $ | 304 | $ | 243 | $ | 61 | 25 | % | $ | 255 | $ | 310 | $ | (55 | ) | (18 | )% | $ | 559 | $ | 553 | $ | 6 | 1 | % | |||||||||||||||||||||||
(1) | Amounts represent benefit reductions elected by policyholders as an alternative to increased premiums. These amounts reduced benefits and other changes in policy reserves in our long-term care insurance business for the periods indicated. |
(2) | Amounts include premium taxes, commissions and other expenses associated with our long-term care insurance in-force rate action plan, which included expenses of |
(3) | Adjusted operating income available to Genworth Financial, Inc.’s common stockholders attributable to in-force rate actions excludes reserve updates resulting from profits followed by losses. |
Three months ended March 31, | 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) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||||
Net earned premiums: | ||||||||||||||||||||||||||||||||||||||||||||||||
Individual long-term care insurance (1) | $ | 590 | $ | 615 | $ | (25 | ) | (4 | )% | $ | 595 | $ | 617 | $ | (22 | ) | (4 | )% | $ | 1,185 | $ | 1,232 | $ | (47 | ) | (4 | )% | |||||||||||||||||||||
Group long-term care insurance | 31 | 31 | — | — | % | 33 | 31 | 2 | 6 | % | 64 | 62 | 2 | 3 | % | |||||||||||||||||||||||||||||||||
Total | $ | 621 | $ | 646 | $ | (25 | ) | (4 | )% | $ | 628 | $ | 648 | $ | (20 | ) | (3 | )% | $ | 1,249 | $ | 1,294 | $ | (45 | ) | (3 | )% | |||||||||||||||||||||
Loss ratio | 64 | % | 62 | % | 2 | % | 81 | % | 62 | % | 19 | % | 72 | % | 62 | % | 10 | % |
(1) | For the three months ended |
As of or for the three months ended March 31, | 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) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||||
Term and whole life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | $ | 74 | $ | 68 | $ | 6 | 9 | % | $ | 60 | $ | 55 | $ | 5 | 9 | % | $ | 134 | $ | 123 | $ | 11 | 9 | % | ||||||||||||||||||||||||
Life insurance in-force, net of reinsurance | 49,637 | 77,430 | (27,793 | ) | (36 | )% | ||||||||||||||||||||||||||||||||||||||||||
Life insurance in-force before reinsurance | 325,055 | 355,424 | (30,369 | ) | (9 | )% | ||||||||||||||||||||||||||||||||||||||||||
Term universal life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||
Net deposits | $ | 49 | $ | 53 | $ | (4 | ) | (8 | )% | 49 | 53 | (4 | ) | (8 | )% | 98 | 106 | (8 | ) | (8 | )% | |||||||||||||||||||||||||||
Life insurance in-force, net of reinsurance | 97,750 | 105,360 | (7,610 | ) | (7 | )% | ||||||||||||||||||||||||||||||||||||||||||
Life insurance in-force before reinsurance | 98,392 | 106,055 | (7,663 | ) | (7 | )% | ||||||||||||||||||||||||||||||||||||||||||
Universal life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||
Net deposits | $ | 67 | $ | 69 | $ | (2 | ) | (3 | )% | 58 | 64 | (6 | ) | (9 | )% | 125 | 133 | (8 | ) | (6 | )% | |||||||||||||||||||||||||||
Life insurance in-force, net of reinsurance | 30,732 | 32,132 | (1,400 | ) | (4 | )% | ||||||||||||||||||||||||||||||||||||||||||
Life insurance in-force before reinsurance | 34,756 | 36,435 | (1,679 | ) | (5 | )% | ||||||||||||||||||||||||||||||||||||||||||
Total life insurance | ||||||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums and deposits | $ | 190 | $ | 190 | $ | — | — | % | $ | 167 | $ | 172 | $ | (5 | ) | (3 | )% | $ | 357 | $ | 362 | $ | (5 | ) | (1 | )% | ||||||||||||||||||||||
Life insurance in-force, net of reinsurance | 178,119 | 214,922 | (36,803 | ) | (17 | )% | ||||||||||||||||||||||||||||||||||||||||||
Life insurance in-force before reinsurance | 458,203 | 497,914 | (39,711 | ) | (8 | )% | ||||||||||||||||||||||||||||||||||||||||||
As of June 30, | Percentage change | |||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | |||||||||
Term and whole life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 50,267 | $ | 56,111 | (10 | )% | ||||||
Life insurance in-force before reinsurance | $ | 316,649 | $ | 347,745 | (9 | )% | ||||||
Term universal life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 95,941 | $ | 103,473 | (7 | )% | ||||||
Life insurance in-force before reinsurance | $ | 96,570 | $ | 104,145 | (7 | )% | ||||||
Universal life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 30,434 | $ | 31,807 | (4 | )% | ||||||
Life insurance in-force before reinsurance | $ | 34,405 | $ | 36,045 | (5 | )% | ||||||
Total life insurance | ||||||||||||
Life insurance in-force, net of reinsurance | $ | 176,642 | $ | 191,391 | (8 | )% | ||||||
Life insurance in-force before reinsurance | $ | 447,624 | $ | 487,935 | (8 | )% |
As of or for the three months ended March 31, | As of or for the three months ended June 30, | As of or for the six months ended June 30, | ||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Account value, beginning of period | $ | 10,163 | $ | 11,815 | $ | 9,505 | $ | 11,172 | $ | 10,163 | $ | 11,815 | ||||||||||||
Deposits | 18 | 17 | ||||||||||||||||||||||
Premiums and deposits | 21 | 21 | 39 | 38 | ||||||||||||||||||||
Surrenders, benefits and product charges | (414 | ) | (544 | ) | (755 | ) | (482 | ) | (1,169 | ) | (1,026 | ) | ||||||||||||
Net flows | (396 | ) | (527 | ) | (734 | ) | (461 | ) | (1,130 | ) | (988 | ) | ||||||||||||
Interest credited and investment performance | 61 | 85 | 58 | 95 | 119 | 180 | ||||||||||||||||||
Effect of accumulated net unrealized investment gains (losses) | (323 | ) | (201 | ) | (266 | ) | 107 | (589 | ) | (94 | ) | |||||||||||||
Account value, end of period | $ | 9,505 | $ | 11,172 | $ | 8,563 | $ | 10,913 | $ | 8,563 | $ | 10,913 | ||||||||||||
(1) | Amount included the recapture of $373 million account value of certain single premium immediate annuities by a third party in the second quarter of 2022. |
Three months ended March 31, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 50 | $ | 49 | $ | 1 | 2 | % | $ | 51 | $ | 43 | $ | 8 | 19 | % | ||||||||||||||||
Net investment gains (losses) | (15 | ) | (6 | ) | (9 | ) | (150 | )% | (10 | ) | 10 | (20 | ) | (200 | )% | |||||||||||||||||
Policy fees and other income | 31 | 33 | (2 | ) | (6 | )% | 29 | 35 | (6 | ) | (17 | )% | ||||||||||||||||||||
Total revenues | 66 | 76 | (10 | ) | (13 | )% | 70 | 88 | (18 | ) | (20 | )% | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | 8 | 8 | — | — | % | 11 | 2 | 9 | NM | (1) | ||||||||||||||||||||||
Interest credited | 43 | 41 | 2 | 5 | % | 45 | 40 | 5 | 13 | % | ||||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 12 | 13 | (1 | ) | (8 | )% | 12 | 14 | (2 | ) | (14 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 6 | 5 | 1 | 20 | % | 9 | 4 | 5 | 125 | % | ||||||||||||||||||||||
Total benefits and expenses | 69 | 67 | 2 | 3 | % | 77 | 60 | 17 | 28 | % | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (3 | ) | 9 | (12 | ) | (133 | )% | (7 | ) | 28 | (35 | ) | (125 | )% | ||||||||||||||||||
Provision (benefit) for income taxes | (1 | ) | 1 | (2 | ) | (200 | )% | (2 | ) | 6 | (8 | ) | (133 | )% | ||||||||||||||||||
Income (loss) from continuing operations | (2 | ) | 8 | (10 | ) | (125 | )% | (5 | ) | 22 | (27 | ) | (123 | )% | ||||||||||||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses, net | 14 | 5 | 9 | 180 | % | 9 | (9 | ) | 18 | 200 | % | |||||||||||||||||||||
Taxes on adjustments | (3 | ) | (1 | ) | (2 | ) | (200 | )% | (2 | ) | 2 | (4 | ) | (200 | )% | |||||||||||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 9 | $ | 12 | $ | (3 | ) | (25 | )% | $ | 2 | $ | 15 | $ | (13 | ) | (87 | )% | ||||||||||||||
(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) | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||
Revenues: | ||||||||||||||||
Net investment income | $ | 101 | $ | 92 | $ | 9 | 10 | % | ||||||||
Net investment gains (losses) | (25 | ) | 4 | (29 | ) | NM | (1) | |||||||||
Policy fees and other income | 60 | 68 | (8 | ) | (12 | )% | ||||||||||
Total revenues | 136 | 164 | (28 | ) | (17 | )% | ||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | 19 | 10 | 9 | 90 | % | |||||||||||
Interest credited | 88 | 81 | 7 | 9 | % | |||||||||||
Acquisition and operating expenses, net of deferrals | 24 | 27 | (3 | ) | (11 | )% | ||||||||||
Amortization of deferred acquisition costs and intangibles | 15 | 9 | 6 | 67 | % | |||||||||||
Total benefits and expenses | 146 | 127 | 19 | 15 | % | |||||||||||
Income (loss) from continuing operations before income taxes | (10 | ) | 37 | (47 | ) | (127 | )% | |||||||||
Provision (benefit) for income taxes | (3 | ) | 7 | (10 | ) | (143 | )% | |||||||||
Income (loss) from continuing operations | (7 | ) | 30 | (37 | ) | (123 | )% | |||||||||
Adjustments to income (loss) from continuing operations: | ||||||||||||||||
Net investment (gains) losses, net (2) | 23 | (4 | ) | 27 | NM | (1) | ||||||||||
Taxes on adjustments | (5 | ) | 1 | (6 | ) | NM | (1) | |||||||||
Adjusted operating income available to Genworth Financial, Inc.’s common stockholders | $ | 11 | $ | 27 | $ | (16 | ) | (59 | )% | |||||||
(1) | We define “NM” as not meaningful for |
(2) | For the six months ended June 30, 2022, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(2) million. |
As of or for the three months ended March 31, | As of or for the three months ended June 30, | As of or for the six months ended June 30, | ||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Account value, beginning of period | $ | 4,839 | $ | 5,001 | $ | 4,459 | $ | 4,863 | $ | 4,839 | $ | 5,001 | ||||||||||||
Deposits | 5 | 6 | 4 | 4 | 9 | 10 | ||||||||||||||||||
Surrenders, benefits and product charges | (131 | ) | (187 | ) | (105 | ) | (140 | ) | (236 | ) | (327 | ) | ||||||||||||
Net flows | (126 | ) | (181 | ) | (101 | ) | (136 | ) | (227 | ) | (317 | ) | ||||||||||||
Interest credited and investment performance | (254 | ) | 43 | (445 | ) | 241 | (699 | ) | 284 | |||||||||||||||
Account value, end of period | $ | 4,459 | $ | 4,863 | $ | 3,913 | $ | 4,968 | $ | 3,913 | $ | 4,968 | ||||||||||||
Three months ended March 31, | Increase (decrease) and percentage change | Three months ended June 30, | Increase (decrease) and percentage change | |||||||||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Premiums | $ | 2 | $ | 2 | $ | — | — | % | $ | 1 | $ | 1 | $ | — | — | % | ||||||||||||||||
Net investment income | 3 | 1 | 2 | 200 | % | — | 3 | (3 | ) | (100 | )% | |||||||||||||||||||||
Net investment gains (losses) | (13 | ) | (2 | ) | (11 | ) | NM | (1) | 15 | (4 | ) | 19 | NM | (1) | ||||||||||||||||||
Policy fees and other income | 1 | — | 1 | NM | (1) | |||||||||||||||||||||||||||
Total revenues | (8 | ) | 1 | (9 | ) | NM | (1) | 17 | — | 17 | NM | (1) | ||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | — | — | — | — | % | (1 | ) | — | (1 | ) | NM | (1) | ||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 6 | 13 | (7 | ) | (54 | )% | 6 | 8 | (2 | ) | (25 | )% | ||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | 1 | (1 | ) | (100 | )% | ||||||||||||||||||||||||||
Interest expense | 13 | 38 | (25 | ) | (66 | )% | 13 | 31 | (18 | ) | (58 | )% | ||||||||||||||||||||
Total benefits and expenses | 19 | 51 | (32 | ) | (63 | )% | 18 | 40 | (22 | ) | (55 | )% | ||||||||||||||||||||
Loss from continuing operations before income taxes | (27 | ) | (50 | ) | 23 | 46 | % | (1 | ) | (40 | ) | 39 | 98 | % | ||||||||||||||||||
Benefit for income taxes | (6 | ) | (8 | ) | 2 | 25 | % | |||||||||||||||||||||||||
Provision (benefit) for income taxes | 3 | (8 | ) | 11 | 138 | % | ||||||||||||||||||||||||||
Loss from continuing operations | (21 | ) | (42 | ) | 21 | 50 | % | (4 | ) | (32 | ) | 28 | 88 | % | ||||||||||||||||||
Adjustments to loss from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment (gains) losses | 13 | 2 | 11 | NM | (1) | (15 | ) | 4 | (19 | ) | NM | (1) | ||||||||||||||||||||
(Gains) losses on early extinguishment of debt | 3 | 4 | (1 | ) | (25 | )% | 1 | — | 1 | NM | (1) | |||||||||||||||||||||
Expenses related to restructuring | — | 7 | (7 | ) | (100 | )% | — | 1 | (1 | ) | (100 | )% | ||||||||||||||||||||
Taxes on adjustments | (4 | ) | (3 | ) | (1 | ) | (33 | )% | 4 | — | 4 | NM | (1) | |||||||||||||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (9 | ) | $ | (32 | ) | $ | 23 | 72 | % | $ | (14 | ) | $ | (27 | ) | $ | 13 | 48 | % | ||||||||||||
(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) | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||
Revenues: | ||||||||||||||||
Premiums | $ | 3 | $ | 3 | $ | — | — | % | ||||||||
Net investment income | 3 | 4 | (1 | ) | (25 | )% | ||||||||||
Net investment gains (losses) | 2 | (6 | ) | 8 | 133 | % | ||||||||||
Policy fees and other income | 1 | — | 1 | NM | (1) | |||||||||||
Total revenues | 9 | 1 | 8 | NM | (1) | |||||||||||
Benefits and expenses: | ||||||||||||||||
Benefits and other changes in policy reserves | (1 | ) | — | (1 | ) | NM | (1) | |||||||||
Acquisition and operating expenses, net of deferrals | 12 | 21 | (9 | ) | (43 | )% | ||||||||||
Amortization of deferred acquisition costs and intangibles | — | 1 | (1 | ) | (100 | )% | ||||||||||
Interest expense | 26 | 69 | (43 | ) | (62 | )% | ||||||||||
Total benefits and expenses | 37 | 91 | (54 | ) | (59 | )% | ||||||||||
Loss from continuing operations before income taxes | (28 | ) | (90 | ) | 62 | 69 | % | |||||||||
Benefit for income taxes | (3 | ) | (16 | ) | 13 | 81 | % | |||||||||
Loss from continuing operations | (25 | ) | (74 | ) | 49 | 66 | % | |||||||||
Adjustments to loss from continuing operations: | ||||||||||||||||
Net investment (gains) losses | (2 | ) | 6 | (8 | ) | (133 | )% | |||||||||
(Gains) losses on early extinguishment of debt | 4 | 4 | — | — | % | |||||||||||
Expenses related to restructuring | — | 8 | (8 | ) | (100 | )% | ||||||||||
Taxes on adjustments | — | (3 | ) | 3 | 100 | % | ||||||||||
Adjusted operating loss available to Genworth Financial, Inc.’s common stockholders | $ | (23 | ) | $ | (59 | ) | $ | 36 | 61 | % | ||||||
(1) | We define “NM” as not meaningful for increases or decreases greater than 200%. |
Three months ended March 31, | Increase (decrease) | Three months ended June 30, | Increase (decrease) | |||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 vs. 2021 | 2022 | 2021 | 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities—taxable | 4.4 | % | $ | 580 | 4.5 | % | $ | 599 | (0.1 | )% | $ | (19 | ) | 4.5 | % | $ | 578 | 4.6 | % | $ | 608 | (0.1 | )% | $ | (30 | ) | ||||||||||||||||||||||
Fixed maturity securities—non-taxable | 3.6 | % | 1 | 6.3 | % | 2 | (2.7 | )% | (1 | ) | 3.6 | % | 1 | 3.1 | % | 1 | 0.5 | % | — | |||||||||||||||||||||||||||||
Equity securities | 3.7 | % | 2 | 3.8 | % | 3 | (0.1 | )% | (1 | ) | 3.4 | % | 2 | 4.1 | % | 2 | (0.7 | )% | — | |||||||||||||||||||||||||||||
Commercial mortgage loans | 4.7 | % | 81 | 4.6 | % | 78 | 0.1 | % | 3 | 4.5 | % | 78 | 6.0 | % | 103 | (1.5 | )% | (25 | ) | |||||||||||||||||||||||||||||
Policy loans | 9.8 | % | 50 | 10.1 | % | 50 | (0.3 | )% | — | 9.7 | % | 51 | 7.9 | % | 40 | 1.8 | % | 11 | ||||||||||||||||||||||||||||||
Limited partnerships (1) | 1.4 | % | 7 | 11.2 | % | 31 | (9.8 | )% | (24 | ) | 6.2 | % | 32 | 17.2 | % | 54 | (11.0 | )% | (22 | ) | ||||||||||||||||||||||||||||
Other invested assets (2) | 64.8 | % | 63 | 65.0 | % | 58 | (0.2 | )% | 5 | 62.6 | % | 66 | 68.6 | % | 58 | (6.0 | )% | 8 | ||||||||||||||||||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 0.3 | % | 1 | — | % | — | 0.3 | % | 1 | |||||||||||||||||||||||||||||||||||||||
Gross investment income before expenses and fees | 4.8 | % | 784 | 5.0 | % | 821 | (0.2 | )% | (37 | ) | 4.9 | % | 809 | 5.2 | % | 866 | (0.3 | )% | (57 | ) | ||||||||||||||||||||||||||||
Expenses and fees | (0.1 | )% | (20 | ) | (0.2 | )% | (20 | ) | 0.1 | % | — | (0.1 | )% | (22 | ) | (0.1 | )% | (22 | ) | — | % | — | ||||||||||||||||||||||||||
Net investment income | 4.7 | % | $ | 764 | 4.8 | % | $ | 801 | (0.1 | )% | $ | (37 | ) | 4.8 | % | $ | 787 | 5.1 | % | $ | 844 | (0.3 | )% | $ | (57 | ) | ||||||||||||||||||||||
Average invested assets and cash | $ | 65,395 | $ | 66,233 | $ | (838 | ) | $ | 65,150 | $ | 66,081 | $ | (931 | ) | ||||||||||||||||||||||||||||||||||
(1) | Limited partnership investments are primarily equity-based and do not have fixed returns by period. |
(2) | Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation. |
Six months ended June 30, | Increase (decrease) | |||||||||||||||||||||||
2022 | 2021 | 2022 vs. 2021 | ||||||||||||||||||||||
(Amounts in millions) | Yield | Amount | Yield | Amount | Yield | Amount | ||||||||||||||||||
Fixed maturity securities—taxable | 4.5 | % | $ | 1,158 | 4.5 | % | $ | 1,207 | — | % | $ | (49 | ) | |||||||||||
Fixed maturity securities—non-taxable | 3.6 | % | 2 | 4.7 | % | 3 | (1.1 | )% | (1 | ) | ||||||||||||||
Equity securities | 3.6 | % | 4 | 3.9 | % | 5 | (0.3 | )% | (1 | ) | ||||||||||||||
Commercial mortgage loans | 4.6 | % | 159 | 5.3 | % | 181 | (0.7 | )% | (22 | ) | ||||||||||||||
Policy loans | 9.7 | % | 101 | 8.9 | % | 90 | 0.8 | % | 11 | |||||||||||||||
Limited partnerships (1) | 3.9 | % | 39 | 14.3 | % | 85 | (10.4 | )% | (46 | ) | ||||||||||||||
Other invested assets (2) | 63.2 | % | 129 | 67.1 | % | 116 | (3.9 | )% | 13 | |||||||||||||||
Cash, cash equivalents, restricted cash and short-term investments | 0.1 | % | 1 | — | % | — | 0.1 | % | 1 | |||||||||||||||
Gross investment income before expenses and fees | 4.9 | % | 1,593 | 5.1 | % | 1,687 | (0.2 | )% | (94 | ) | ||||||||||||||
Expenses and fees | (0.1 | )% | (42 | ) | (0.1 | )% | (42 | ) | — | % | — | |||||||||||||
Net investment income | 4.8 | % | $ | 1,551 | 5.0 | % | $ | 1,645 | (0.2 | )% | $ | (94 | ) | |||||||||||
Average invested assets and cash | $ | 65,288 | $ | 66,234 | $ | (946 | ) | |||||||||||||||||
(1) | Limited partnership investments are primarily equity-based and do not have fixed returns by period. |
(2) | Investment income for other invested assets includes amortization of terminated cash flow hedges, which have no corresponding book value within the yield calculation. |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Realized investment gains (losses): | ||||||||||||||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||||||||||
Realized gains | $ | 10 | $ | 7 | $ | 5 | $ | 5 | $ | 15 | $ | 12 | ||||||||||||
Realized losses | (18 | ) | (3 | ) | (9 | ) | (4 | ) | (27 | ) | (7 | ) | ||||||||||||
Net realized gains (losses) on available-for-sale fixed maturity securities | (8 | ) | 4 | (4 | ) | 1 | (12 | ) | 5 | |||||||||||||||
Net realized gains (losses) on equity securities sold | — | (5 | ) | — | (2 | ) | — | (7 | ) | |||||||||||||||
Net realized gains (losses) on limited partnerships | — | 3 | — | — | — | 3 | ||||||||||||||||||
Total net realized investment gains (losses) | (8 | ) | 2 | (4 | ) | (1 | ) | (12 | ) | 1 | ||||||||||||||
Net change in allowance for credit losses on available-for-sale fixed maturity securities | — | (2 | ) | — | (4 | ) | — | (6 | ) | |||||||||||||||
Write-down of available-for-sale fixed maturity securities | (2 | ) | (1 | ) | — | — | (2 | ) | (1 | ) | ||||||||||||||
Net unrealized gains (losses) on equity securities still held | (6 | ) | (8 | ) | (27 | ) | 6 | (33 | ) | (2 | ) | |||||||||||||
Net unrealized gains (losses) on limited partnerships | 35 | 34 | 24 | 65 | 59 | 99 | ||||||||||||||||||
Commercial mortgage loans | 1 | (1 | ) | 2 | (1 | ) | 3 | (2 | ) | |||||||||||||||
Derivative instruments | 4 | 8 | 9 | 4 | 13 | 12 | ||||||||||||||||||
Other | 4 | 1 | 4 | 1 | 8 | 2 | ||||||||||||||||||
Net investment gains (losses) | $ | 28 | $ | 33 | $ | 8 | $ | 70 | $ | 36 | $ | 103 | ||||||||||||
ended June 30, 2021. Included in the $12 million of net losses for the six months ended June 30, 2022 was $27 million of realized losses principally related to U.S. corporate securities sold to optimize cash at Genworth Holdings. We also recorded $7 million of net losses related to the sale of equity securities during the six months ended June 30, 2021. |
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||||||
Available-for-sale fixed maturity securities: | ||||||||||||||||||||||||||||||||
Public | $ | 38,219 | 56 | % | $ | 42,501 | 58 | % | $ | 33,878 | 54 | % | $ | 42,501 | 58 | % | ||||||||||||||||
Private | 16,808 | 25 | 17,979 | 24 | 15,408 | 24 | 17,979 | 24 | ||||||||||||||||||||||||
Equity securities | 230 | — | 198 | — | 243 | — | 198 | — | ||||||||||||||||||||||||
Commercial mortgage loans, net | 6,913 | 10 | 6,830 | 9 | 7,065 | 12 | 6,830 | 9 | ||||||||||||||||||||||||
Policy loans | 2,028 | 3 | 2,050 | 3 | 2,178 | 3 | 2,050 | 3 | ||||||||||||||||||||||||
Limited partnerships | 2,007 | 3 | 1,900 | 3 | 2,123 | 3 | 1,900 | 3 | ||||||||||||||||||||||||
Other invested assets | 671 | 1 | 820 | 1 | 573 | 1 | 820 | 1 | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | 1,291 | 2 | 1,571 | 2 | 1,724 | 3 | 1,571 | 2 | ||||||||||||||||||||||||
Total cash, cash equivalents, restricted cash and invested assets | $ | 68,167 | 100 | % | $ | 73,849 | 100 | % | $ | 63,192 | 100 | % | $ | 73,849 | 100 | % | ||||||||||||||||
(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 | $ | 3,356 | $ | 744 | $ | (3 | ) | $ | — | $ | 4,097 | $ | 3,387 | $ | 274 | $ | (34 | ) | $ | — | $ | 3,627 | ||||||||||||||||||
State and political subdivisions | 3,009 | 206 | (81 | ) | — | 3,134 | 2,971 | 74 | (196 | ) | — | 2,849 | ||||||||||||||||||||||||||||
Non-U.S. government | 778 | 48 | (42 | ) | — | 784 | 762 | 17 | (97 | ) | — | 682 | ||||||||||||||||||||||||||||
U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 4,345 | 355 | (66 | ) | — | 4,634 | 4,253 | 135 | (285 | ) | — | 4,103 | ||||||||||||||||||||||||||||
Energy | 2,572 | 175 | (48 | ) | — | 2,699 | 2,496 | 54 | (173 | ) | — | 2,377 | ||||||||||||||||||||||||||||
Finance and insurance | 8,026 | 406 | (203 | ) | — | 8,229 | 7,947 | 126 | (604 | ) | — | 7,469 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 5,070 | 488 | (70 | ) | — | 5,488 | 4,912 | 172 | (292 | ) | — | 4,792 | ||||||||||||||||||||||||||||
Technology and communications | 3,371 | 213 | (87 | ) | — | 3,497 | 3,224 | 60 | (260 | ) | — | 3,024 | ||||||||||||||||||||||||||||
Industrial | 1,301 | 73 | (26 | ) | — | 1,348 | 1,263 | 22 | (98 | ) | — | 1,187 | ||||||||||||||||||||||||||||
Capital goods | 2,346 | 205 | (39 | ) | — | 2,512 | 2,326 | 77 | (145 | ) | — | 2,258 | ||||||||||||||||||||||||||||
Consumer—cyclical | 1,725 | 86 | (44 | ) | — | 1,767 | 1,679 | 27 | (125 | ) | — | 1,581 | ||||||||||||||||||||||||||||
Transportation | 1,133 | 124 | (9 | ) | — | 1,248 | 1,113 | 52 | (61 | ) | — | 1,104 | ||||||||||||||||||||||||||||
Other | 381 | 24 | (4 | ) | — | 401 | 353 | 8 | (13 | ) | — | 348 | ||||||||||||||||||||||||||||
Total U.S. corporate | 30,270 | 2,149 | (596 | ) | — | 31,823 | 29,566 | 733 | (2,056 | ) | — | 28,243 | ||||||||||||||||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||||||||||||||||||||||
Utilities | 874 | 19 | (15 | ) | — | 878 | 864 | 3 | (57 | ) | — | 810 | ||||||||||||||||||||||||||||
Energy | 1,158 | 102 | (19 | ) | — | 1,241 | 1,123 | 36 | (62 | ) | — | 1,097 | ||||||||||||||||||||||||||||
Finance and insurance | 2,129 | 132 | (70 | ) | — | 2,191 | 2,103 | 62 | (153 | ) | — | 2,012 | ||||||||||||||||||||||||||||
Consumer—non-cyclical | 665 | 28 | (22 | ) | — | 671 | 630 | 4 | (64 | ) | — | 570 | ||||||||||||||||||||||||||||
Technology and communications | 1,055 | 61 | (17 | ) | — | 1,099 | 1,007 | 10 | (74 | ) | — | 943 | ||||||||||||||||||||||||||||
Industrial | 918 | 56 | (21 | ) | — | 953 | 903 | 21 | (63 | ) | — | 861 | ||||||||||||||||||||||||||||
Capital goods | 610 | 25 | (16 | ) | — | 619 | 609 | 6 | (50 | ) | — | 565 | ||||||||||||||||||||||||||||
Consumer—cyclical | 316 | 5 | (9 | ) | — | 312 | 314 | — | (29 | ) | — | 285 | ||||||||||||||||||||||||||||
Transportation | 392 | 38 | (7 | ) | — | 423 | 392 | 20 | (22 | ) | — | 390 | ||||||||||||||||||||||||||||
Other | 996 | 86 | (16 | ) | — | 1,066 | 960 | 39 | (50 | ) | — | 949 | ||||||||||||||||||||||||||||
Total non-U.S. corporate | 9,113 | 552 | (212 | ) | — | 9,453 | 8,905 | 201 | (624 | ) | — | 8,482 | ||||||||||||||||||||||||||||
Residential mortgage-backed | 1,277 | 57 | (14 | ) | — | 1,320 | 1,214 | 36 | (37 | ) | — | 1,213 | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,369 | 36 | (44 | ) | — | 2,361 | 2,272 | 7 | (142 | ) | — | 2,137 | ||||||||||||||||||||||||||||
Other asset-backed | 2,108 | 7 | (60 | ) | — | 2,055 | 2,171 | 1 | (119 | ) | — | 2,053 | ||||||||||||||||||||||||||||
Total available-for-sale fixed maturity securities | $ | 52,280 | $ | 3,799 | $ | (1,052 | ) | $ | — | $ | 55,027 | $ | 51,248 | $ | 1,343 | $ | (3,305 | ) | $ | — | $ | 49,286 | ||||||||||||||||||
(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 | $ | 3,368 | $ | 1,184 | $ | — | $ | — | $ | 4,552 | ||||||||||
State and political subdivisions | 2,982 | 474 | (6 | ) | — | 3,450 | ||||||||||||||
Non-U.S. government | 762 | 86 | (13 | ) | — | 835 | ||||||||||||||
U.S. corporate: | ||||||||||||||||||||
Utilities | 4,330 | 783 | (9 | ) | — | 5,104 | ||||||||||||||
Energy | 2,581 | 363 | (10 | ) | — | 2,934 | ||||||||||||||
Finance and insurance | 8,003 | 1,012 | (24 | ) | — | 8,991 | ||||||||||||||
Consumer—non-cyclical | 5,138 | 1,029 | (8 | ) | — | 6,159 | ||||||||||||||
Technology and communications | 3,345 | 476 | (13 | ) | — | 3,808 | ||||||||||||||
Industrial | 1,322 | 175 | (3 | ) | — | 1,494 | ||||||||||||||
Capital goods | 2,334 | 415 | (4 | ) | — | 2,745 | ||||||||||||||
Consumer—cyclical | 1,703 | 203 | (7 | ) | — | 1,899 | ||||||||||||||
Transportation | 1,122 | 249 | — | — | 1,371 | |||||||||||||||
Other | 379 | 41 | (1 | ) | — | 419 | ||||||||||||||
Total U.S. corporate | 30,257 | 4,746 | (79 | ) | — | 34,924 | ||||||||||||||
Non-U.S. corporate: | ||||||||||||||||||||
Utilities | 867 | 63 | (2 | ) | — | 928 | ||||||||||||||
Energy | 1,194 | 190 | (1 | ) | — | 1,383 | ||||||||||||||
Finance and insurance | 2,171 | 270 | (9 | ) | — | 2,432 | ||||||||||||||
Consumer—non-cyclical | 664 | 81 | (2 | ) | — | 743 | ||||||||||||||
Technology and communications | 1,085 | 166 | (1 | ) | — | 1,250 | ||||||||||||||
Industrial | 933 | 117 | (3 | ) | — | 1,047 | ||||||||||||||
Capital goods | 640 | 66 | (1 | ) | — | 705 | ||||||||||||||
Consumer—cyclical | 316 | 27 | (2 | ) | — | 341 | ||||||||||||||
Transportation | 422 | 68 | (1 | ) | — | 489 | ||||||||||||||
Other | 1,052 | 169 | (4 | ) | — | 1,217 | ||||||||||||||
Total non-U.S. corporate | 9,344 | 1,217 | (26 | ) | — | 10,535 | ||||||||||||||
Residential mortgage-backed | 1,325 | 116 | (1 | ) | — | 1,440 | ||||||||||||||
Commercial mortgage-backed | 2,435 | 152 | (3 | ) | — | 2,584 | ||||||||||||||
Other asset-backed | 2,138 | 29 | (7 | ) | — | 2,160 | ||||||||||||||
Total available-for-sale fixed maturity securities | $ | 52,611 | $ | 8,004 | $ | (135 | ) | $ | — | $ | 60,480 | |||||||||
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
(Amounts in millions) | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | Carrying value | % of total | ||||||||||||||||||||||||
Bank loan investments | $ | 406 | 71 | % | $ | 363 | 45 | % | ||||||||||||||||||||||||
Derivatives | $ | 197 | 29 | % | $ | 414 | 50 | % | 77 | 13 | 414 | 50 | ||||||||||||||||||||
Bank loan investments | 381 | 57 | 363 | 45 | ||||||||||||||||||||||||||||
Short-term investments | 76 | 11 | 26 | 3 | 50 | 9 | 26 | 3 | ||||||||||||||||||||||||
Other investments | 17 | 3 | 17 | 2 | 40 | 7 | 17 | 2 | ||||||||||||||||||||||||
Total other invested assets | $ | 671 | 100 | % | $ | 820 | 100 | % | $ | 573 | 100 | % | $ | 820 | 100 | % | ||||||||||||||||
(Notional in millions) | Measurement | December 31, 2021 | Additions | Maturities/ terminations | March 31, 2022 | Measurement | December 31, 2021 | Additions | Maturities/ terminations | June 30, 2022 | ||||||||||||||||||||||||||||||
Derivatives designated as hedges | Derivatives designated as hedges | |||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Notional | $ | 7,653 | $ | — | $ | (58 | ) | $ | 7,595 | Notional | $ | 7,653 | $ | 262 | $ | (102 | ) | $ | 7,813 | ||||||||||||||||||||
Foreign currency swaps | Notional | 127 | — | — | 127 | Notional | 127 | — | — | 127 | ||||||||||||||||||||||||||||||
Total cash flow hedges | 7,780 | — | (58 | ) | 7,722 | 7,780 | 262 | (102 | ) | 7,940 | ||||||||||||||||||||||||||||||
Total derivatives designated as hedges | 7,780 | — | (58 | ) | 7,722 | 7,780 | 262 | (102 | ) | 7,940 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||||||||||||||||||
Equity index options | Notional | 1,446 | 300 | (368 | ) | 1,378 | Notional | 1,446 | 495 | (628 | ) | 1,313 | ||||||||||||||||||||||||||||
Financial futures | Notional | 946 | 994 | (1,042 | ) | 898 | Notional | 946 | 1,973 | (1,969 | ) | 950 | ||||||||||||||||||||||||||||
Other foreign currency contracts | Notional | 83 | — | (59 | ) | 24 | Notional | 83 | — | (83 | ) | — | ||||||||||||||||||||||||||||
Total derivatives not designated as hedges | 2,475 | 1,294 | (1,469 | ) | 2,300 | 2,475 | 2,468 | (2,680 | ) | 2,263 | ||||||||||||||||||||||||||||||
Total derivatives | $ | 10,255 | $ | 1,294 | $ | (1,527 | ) | $ | 10,022 | $ | 10,255 | $ | 2,730 | $ | (2,782 | ) | $ | 10,203 | ||||||||||||||||||||||
(Number of policies) | Measurement | December 31, 2021 | Additions | Maturities/ terminations | March 31, 2022 | Measurement | December 31, 2021 | Additions | Maturities/ terminations | June 30, 2022 | ||||||||||||||||||||||||||||||
Derivatives not designated as hedges | ||||||||||||||||||||||||||||||||||||||||
GMWB embedded derivatives | Policies | 21,804 | — | (477 | ) | 21,327 | Policies | 21,804 | — | (906 | ) | 20,898 | ||||||||||||||||||||||||||||
Fixed index annuity embedded derivatives | Policies | 9,344 | — | (568 | ) | 8,776 | Policies | 9,344 | — | (1,055 | ) | 8,289 | ||||||||||||||||||||||||||||
Indexed universal life embedded derivatives | Policies | 806 | — | (7 | ) | 799 | Policies | 806 | — | (20 | ) | 786 |
(Amounts in millions) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Net cash used by operating activities | $ | (92 | ) | $ | (247 | ) | ||||||||||
Net cash from operating activities | $ | 337 | $ | 229 | ||||||||||||
Net cash from investing activities | 138 | 335 | 535 | 541 | ||||||||||||
Net cash used by financing activities | (326 | ) | (780 | ) | (719 | ) | (1,213 | ) | ||||||||
Net decrease in cash before foreign exchange effect | $ | (280 | ) | $ | (692 | ) | ||||||||||
Net increase (decrease) in cash before foreign exchange effect | $ | 153 | $ | (443 | ) | |||||||||||
(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 $52,280 and allowance for credit losses of $—) | $ | — | $ | — | $ | 55,027 | $ | — | $ | 55,027 | ||||||||||||||||||||||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $51,248 and allowance for credit losses of $—) | $ | — | $ | — | $ | 49,286 | $ | — | $ | 49,286 | ||||||||||||||||||||||||||||||
Equity securities, at fair value | — | — | 230 | — | 230 | — | — | 243 | — | 243 | ||||||||||||||||||||||||||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4) | — | — | 6,938 | — | 6,938 | — | — | 7,088 | — | 7,088 | ||||||||||||||||||||||||||||||
Less: Allowance for credit losses | — | — | (25 | ) | — | (25 | ) | — | — | (23 | ) | — | (23 | ) | ||||||||||||||||||||||||||
Commercial mortgage loans, net | — | — | 6,913 | — | 6,913 | — | — | 7,065 | — | 7,065 | ||||||||||||||||||||||||||||||
Policy loans | — | — | 2,028 | — | 2,028 | — | — | 2,178 | — | 2,178 | ||||||||||||||||||||||||||||||
Limited partnerships | — | — | 2,007 | — | 2,007 | — | — | 2,123 | — | 2,123 | ||||||||||||||||||||||||||||||
Other invested assets | — | 75 | 596 | — | 671 | — | 50 | 523 | — | 573 | ||||||||||||||||||||||||||||||
Investments in subsidiaries | 14,419 | 14,621 | — | (29,040 | ) | — | 11,851 | 12,097 | — | (23,948 | ) | — | ||||||||||||||||||||||||||||
Total investments | 14,419 | 14,696 | 66,801 | (29,040 | ) | 66,876 | 11,851 | 12,147 | 61,418 | (23,948 | ) | 61,468 | ||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash | — | 140 | 1,151 | — | 1,291 | — | 178 | 1,546 | — | 1,724 | ||||||||||||||||||||||||||||||
Accrued investment income | — | — | 696 | — | 696 | — | — | 553 | — | 553 | ||||||||||||||||||||||||||||||
Deferred acquisition costs | — | — | 1,310 | — | 1,310 | — | — | 2,314 | — | 2,314 | ||||||||||||||||||||||||||||||
Intangible assets | — | — | 159 | — | 159 | — | — | 236 | — | 236 | ||||||||||||||||||||||||||||||
Reinsurance recoverable | — | — | 16,821 | — | 16,821 | — | — | 16,691 | — | 16,691 | ||||||||||||||||||||||||||||||
Less: Allowance for credit losses | — | — | (57 | ) | — | (57 | ) | — | — | (60 | ) | — | (60 | ) | ||||||||||||||||||||||||||
Reinsurance recoverable, net | — | — | 16,764 | — | 16,764 | — | — | 16,631 | — | 16,631 | ||||||||||||||||||||||||||||||
Other assets | 1 | 147 | 292 | — | 440 | 1 | 181 | 230 | — | 412 | ||||||||||||||||||||||||||||||
Intercompany notes receivable | 16 | 71 | 1 | (88 | ) | — | 113 | 54 | — | (167 | ) | — | ||||||||||||||||||||||||||||
Deferred tax assets | 1 | 514 | (94 | ) | — | 421 | (1 | ) | 433 | 615 | — | 1,047 | ||||||||||||||||||||||||||||
Separate account assets | — | — | 5,530 | — | 5,530 | — | — | 4,683 | — | 4,683 | ||||||||||||||||||||||||||||||
Total assets | $ | 14,437 | $ | 15,568 | $ | 92,610 | $ | (29,128 | ) | $ | 93,487 | $ | 11,964 | $ | 12,993 | $ | 88,226 | $ | (24,115 | ) | $ | 89,068 | ||||||||||||||||||
Liabilities and equity | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | — | $ | — | $ | 38,897 | $ | — | $ | 38,897 | $ | — | $ | — | $ | 38,133 | $ | — | $ | 38,133 | ||||||||||||||||||||
Policyholder account balances | — | — | 18,197 | — | 18,197 | — | — | 17,907 | — | 17,907 | ||||||||||||||||||||||||||||||
Liability for policy and contract claims | — | — | 11,833 | — | 11,833 | — | — | 11,915 | — | 11,915 | ||||||||||||||||||||||||||||||
Unearned premiums | — | — | 639 | — | 639 | — | — | 614 | — | 614 | ||||||||||||||||||||||||||||||
Other liabilities | 30 | 64 | 1,322 | — | 1,416 | 144 | 6 | 1,318 | — | 1,468 | ||||||||||||||||||||||||||||||
Intercompany notes payable | — | 17 | 71 | (88 | ) | — | — | 113 | 54 | (167 | ) | — | ||||||||||||||||||||||||||||
Long-term borrowings | — | 1,078 | 741 | — | 1,819 | — | 1,031 | 742 | — | 1,773 | ||||||||||||||||||||||||||||||
Separate account liabilities | — | — | 5,530 | — | 5,530 | — | — | 4,683 | — | 4,683 | ||||||||||||||||||||||||||||||
Liabilities related to discontinued operations | — | 1 | 3 | — | 4 | — | 1 | 3 | — | 4 | ||||||||||||||||||||||||||||||
Total liabilities | 30 | 1,160 | 77,233 | (88 | ) | 78,335 | 144 | 1,151 | 75,369 | (167 | ) | 76,497 | ||||||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||||||||||||||||||
Common stock | 1 | — | 4 | (4 | ) | 1 | 1 | — | 4 | (4 | ) | 1 | ||||||||||||||||||||||||||||
Additional paid-in capital | 11,857 | 12,726 | 18,142 | (30,868 | ) | 11,857 | 11,859 | 12,728 | 18,144 | (30,872 | ) | 11,859 | ||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 2,610 | 2,610 | 2,654 | (5,264 | ) | 2,610 | (145 | ) | (144 | ) | (52 | ) | 196 | (145 | ) | |||||||||||||||||||||||||
Retained earnings | 2,639 | (928 | ) | (6,468 | ) | 7,396 | 2,639 | 2,820 | (742 | ) | (6,290 | ) | 7,032 | 2,820 | ||||||||||||||||||||||||||
Treasury stock, at cost | (2,700 | ) | — | — | — | (2,700 | ) | (2,715 | ) | — | — | — | (2,715 | ) | ||||||||||||||||||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 14,407 | 14,408 | 14,332 | (28,740 | ) | 14,407 | 11,820 | 11,842 | 11,806 | (23,648 | ) | 11,820 | ||||||||||||||||||||||||||||
Noncontrolling interests | — | — | 1,045 | (300 | ) | 745 | — | — | 1,051 | (300 | ) | 751 | ||||||||||||||||||||||||||||
Total equity | 14,407 | 14,408 | 15,377 | (29,040 | ) | 15,152 | 11,820 | 11,842 | 12,857 | (23,948 | ) | 12,571 | ||||||||||||||||||||||||||||
Total liabilities and equity | $ | 14,437 | $ | 15,568 | $ | 92,610 | $ | (29,128 | ) | $ | 93,487 | $ | 11,964 | $ | 12,993 | $ | 88,226 | $ | (24,115 | ) | $ | 89,068 | ||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost of $52,611 and allowance for credit losses of $—) | $ | — | $ | — | $ | 60,480 | $ | — | $ | 60,480 | ||||||||||
Equity securities, at fair value | — | — | 198 | — | 198 | |||||||||||||||
Commercial mortgage loans (net of unamortized balance of loan origination fees and costs of $4) | — | — | 6,856 | — | 6,856 | |||||||||||||||
Less: Allowance for credit losses | — | — | (26 | ) | — | (26 | ) | |||||||||||||
Commercial mortgage loans, net | — | — | 6,830 | — | 6,830 | |||||||||||||||
Policy loans | — | — | 2,050 | — | 2,050 | |||||||||||||||
Limited partnerships | — | — | 1,900 | — | 1,900 | |||||||||||||||
Other invested assets | — | 27 | 793 | — | 820 | |||||||||||||||
Investments in subsidiaries | 15,517 | 15,626 | — | (31,143 | ) | — | ||||||||||||||
Total investments | 15,517 | 15,653 | 72,251 | (31,143 | ) | 72,278 | ||||||||||||||
Cash, cash equivalents and restricted cash | — | 331 | 1,240 | — | 1,571 | |||||||||||||||
Accrued investment income | — | — | 647 | — | 647 | |||||||||||||||
Deferred acquisition costs | — | — | 1,146 | — | 1,146 | |||||||||||||||
Intangible assets | — | — | 143 | — | 143 | |||||||||||||||
Reinsurance recoverable | — | — | 16,868 | — | 16,868 | |||||||||||||||
Less: Allowance for credit losses | — | — | (55 | ) | — | (55 | ) | |||||||||||||
Reinsurance recoverable, net | — | — | 16,813 | — | 16,813 | |||||||||||||||
Other assets | 5 | 207 | 176 | — | 388 | |||||||||||||||
Intercompany notes receivable | — | 15 | 1 | (16 | ) | — | ||||||||||||||
Deferred tax assets | 4 | 555 | (440 | ) | — | 119 | ||||||||||||||
Separate account assets | — | — | 6,066 | — | 6,066 | |||||||||||||||
Total assets | $ | 15,526 | $ | 16,761 | $ | 98,043 | $ | (31,159 | ) | $ | 99,171 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Future policy benefits | $ | — | $ | — | $ | 41,528 | $ | — | $ | 41,528 | ||||||||||
Policyholder account balances | — | — | 19,354 | — | 19,354 | |||||||||||||||
Liability for policy and contract claims | — | — | 11,841 | — | 11,841 | |||||||||||||||
Unearned premiums | — | — | 672 | — | 672 | |||||||||||||||
Other liabilities | 4 | 64 | 1,443 | — | 1,511 | |||||||||||||||
Intercompany notes payable | 12 | 1 | 3 | (16 | ) | — | ||||||||||||||
Long-term borrowings | — | 1,159 | 740 | — | 1,899 | |||||||||||||||
Separate account liabilities | — | — | 6,066 | — | 6,066 | |||||||||||||||
Liabilities related to discontinued operations | — | 30 | 4 | — | 34 | |||||||||||||||
Total liabilities | 16 | 1,254 | 81,651 | (16 | ) | 82,905 | ||||||||||||||
Equity: | ||||||||||||||||||||
Common stock | 1 | — | 4 | (4 | ) | 1 | ||||||||||||||
Additional paid-in capital | 11,858 | 12,724 | 18,135 | (30,859 | ) | 11,858 | ||||||||||||||
Accumulated other comprehensive income (loss) | 3,861 | 3,861 | 3,906 | (7,767 | ) | 3,861 | ||||||||||||||
Retained earnings | 2,490 | (1,078 | ) | (6,709 | ) | 7,787 | 2,490 | |||||||||||||
Treasury stock, at cost | (2,700 | ) | — | — | — | (2,700 | ) | |||||||||||||
Total Genworth Financial, Inc.’s stockholders’ equity | 15,510 | 15,507 | 15,336 | (30,843 | ) | 15,510 | ||||||||||||||
Noncontrolling interests | — | — | 1,056 | (300 | ) | 756 | ||||||||||||||
Total equity | 15,510 | 15,507 | 16,392 | (31,143 | ) | 16,266 | ||||||||||||||
Total liabilities and equity | $ | 15,526 | $ | 16,761 | $ | 98,043 | $ | (31,159 | ) | $ | 99,171 | |||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||
Premiums | $ | — | $ | — | $ | 931 | $ | — | $ | 931 | $ | — | $ | — | $ | 1,858 | $ | — | $ | 1,858 | ||||||||||||||||||||
Net investment income | (1 | ) | — | 765 | — | 764 | (2 | ) | 1 | 1,552 | — | 1,551 | ||||||||||||||||||||||||||||
Net investment gains (losses) | — | — | 28 | — | 28 | — | — | 36 | — | 36 | ||||||||||||||||||||||||||||||
Policy fees and other income | — | — | 169 | — | 169 | — | — | 328 | — | 328 | ||||||||||||||||||||||||||||||
Total revenues | (1 | ) | — | 1,893 | — | 1,892 | (2 | ) | 1 | 3,774 | — | 3,773 | ||||||||||||||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||||||||||||||||||||
Benefits and other changes in policy reserves | — | — | 1,139 | — | 1,139 | — | — | 1,903 | — | 1,903 | ||||||||||||||||||||||||||||||
Interest credited | — | — | 125 | — | 125 | — | — | 250 | — | 250 | ||||||||||||||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 8 | 3 | 260 | — | 271 | 15 | 4 | 841 | — | 860 | ||||||||||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | — | 92 | — | 92 | — | — | 176 | — | 176 | ||||||||||||||||||||||||||||||
Interest expense | — | 13 | 13 | — | 26 | — | 26 | 26 | — | 52 | ||||||||||||||||||||||||||||||
Total benefits and expenses | 8 | 16 | 1,629 | — | 1,653 | 15 | 30 | 3,196 | — | 3,241 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | (9 | ) | (16 | ) | 264 | — | 239 | (17 | ) | (29 | ) | 578 | — | 532 | ||||||||||||||||||||||||||
Provision (benefit) for income taxes | (2 | ) | (3 | ) | 63 | — | 58 | — | (6 | ) | 137 | — | 131 | |||||||||||||||||||||||||||
Equity in income of subsidiaries | 156 | 172 | — | (328 | ) | — | 347 | 374 | — | (721 | ) | — | ||||||||||||||||||||||||||||
Income from continuing operations | 149 | 159 | 201 | (328 | ) | 181 | 330 | 351 | 441 | (721 | ) | 401 | ||||||||||||||||||||||||||||
Loss from discontinued operations, net of taxes | — | (2 | ) | — | — | (2 | ) | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||||||||||
Net income | 149 | 157 | 201 | (328 | ) | 179 | 330 | 348 | 441 | (721 | ) | 398 | ||||||||||||||||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | — | — | 30 | — | 30 | — | — | 68 | — | 68 | ||||||||||||||||||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 149 | $ | 157 | $ | 171 | $ | (328 | ) | $ | 149 | $ | 330 | $ | 348 | $ | 373 | $ | (721 | ) | $ | 330 | ||||||||||||||||||
(Amounts in millions) | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | ||||||||||||||||||||
Premiums | $ | — | $ | — | $ | 3,435 | $ | — | $ | 3,435 | ||||||||||
Net investment income | (3 | ) | — | 3,373 | — | 3,370 | ||||||||||||||
Net investment gains (losses) | — | — | 323 | — | 323 | |||||||||||||||
Policy fees and other income | — | (1 | ) | 703 | 2 | 704 | ||||||||||||||
Total revenues | (3 | ) | (1 | ) | 7,834 | 2 | 7,832 | |||||||||||||
Benefits and expenses: | ||||||||||||||||||||
Benefits and other changes in policy reserves | — | — | 4,383 | — | 4,383 | |||||||||||||||
Interest credited | — | — | 508 | — | 508 | |||||||||||||||
Acquisition and operating expenses, net of deferrals | 25 | 44 | 1,154 | — | 1,223 | |||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | — | 377 | — | 377 | |||||||||||||||
Interest expense | (1 | ) | 109 | 50 | 2 | 160 | ||||||||||||||
Total benefits and expenses | 24 | 153 | 6,472 | 2 | 6,651 | |||||||||||||||
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | (27 | ) | (154 | ) | 1,362 | — | 1,181 | |||||||||||||
Provision (benefit) for income taxes | (1 | ) | (33 | ) | 297 | — | 263 | |||||||||||||
Equity in income of subsidiaries | 930 | 1,041 | — | (1,971 | ) | — | ||||||||||||||
Income from continuing operations | 904 | 920 | 1,065 | (1,971 | ) | 918 | ||||||||||||||
Income from discontinued operations, net of taxes | — | 13 | 14 | — | 27 | |||||||||||||||
Net income | 904 | 933 | 1,079 | (1,971 | ) | 945 | ||||||||||||||
Less: net income from continuing operations attributable to noncontrolling interests | — | — | 33 | — | 33 | |||||||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | 8 | — | 8 | |||||||||||||||
Net income available to Genworth Financial, Inc.’s common stockholders | $ | 904 | $ | 933 | $ | 1,038 | $ | (1,971 | ) | $ | 904 | |||||||||
Parent | All Other | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Guarantor | Issuer | Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Net income | $ | 149 | $ | 157 | $ | 201 | $ | (328 | ) | $ | 179 | $ | 330 | $ | 348 | $ | 441 | $ | (721 | ) | $ | 398 | ||||||||||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (1,010 | ) | (1,010 | ) | (1,051 | ) | 2,020 | (1,051 | ) | (3,414 | ) | (3,413 | ) | (3,433 | ) | 6,777 | (3,483 | ) | ||||||||||||||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Derivatives qualifying as hedges | (236 | ) | (236 | ) | (237 | ) | 473 | (236 | ) | (580 | ) | (580 | ) | (582 | ) | 1,162 | (580 | ) | ||||||||||||||||||||||
Foreign currency translation and other adjustments | (5 | ) | (5 | ) | (5 | ) | 10 | (5 | ) | (12 | ) | (12 | ) | (12 | ) | 24 | (12 | ) | ||||||||||||||||||||||
Total other comprehensive income (loss) | (1,251 | ) | (1,251 | ) | (1,293 | ) | 2,503 | (1,292 | ) | (4,006 | ) | (4,005 | ) | (4,027 | ) | 7,963 | (4,075 | ) | ||||||||||||||||||||||
Total comprehensive loss | (1,102 | ) | (1,094 | ) | (1,092 | ) | 2,175 | (1,113 | ) | (3,676 | ) | (3,657 | ) | (3,586 | ) | 7,242 | (3,677 | ) | ||||||||||||||||||||||
Less: comprehensive loss attributable to noncontrolling interests | — | — | (11 | ) | — | (11 | ) | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||
Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders | $ | (1,102 | ) | $ | (1,094 | ) | $ | (1,081 | ) | $ | 2,175 | $ | (1,102 | ) | $ | (3,676 | ) | $ | (3,657 | ) | $ | (3,585 | ) | $ | 7,242 | $ | (3,676 | ) | ||||||||||||
Parent | All Other | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Guarantor | Issuer | Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Net income | $ | 904 | $ | 933 | $ | 1,079 | $ | (1,971 | ) | $ | 945 | $ | 904 | $ | 933 | $ | 1,079 | $ | (1,971 | ) | $ | 945 | ||||||||||||||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities without an allowance for credit losses | (334 | ) | (335 | ) | (371 | ) | 670 | (370 | ) | (334 | ) | (335 | ) | (371 | ) | 670 | (370 | ) | ||||||||||||||||||||||
Net unrealized gains (losses) on securities with an allowance for credit losses | 6 | 6 | 6 | (12 | ) | 6 | 6 | 6 | 6 | (12 | ) | 6 | ||||||||||||||||||||||||||||
Derivatives qualifying as hedges | (186 | ) | (186 | ) | (215 | ) | 401 | (186 | ) | (186 | ) | (186 | ) | (215 | ) | 401 | (186 | ) | ||||||||||||||||||||||
Foreign currency translation and other adjustments | (24 | ) | (24 | ) | 149 | 47 | 148 | (24 | ) | (24 | ) | 149 | 47 | 148 | ||||||||||||||||||||||||||
Total other comprehensive income (loss) | (538 | ) | (539 | ) | (431 | ) | 1,106 | (402 | ) | (538 | ) | (539 | ) | (431 | ) | 1,106 | (402 | ) | ||||||||||||||||||||||
Total comprehensive income | 366 | 394 | 648 | (865 | ) | 543 | 366 | 394 | 648 | (865 | ) | 543 | ||||||||||||||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | 177 | — | 177 | — | — | 177 | — | 177 | ||||||||||||||||||||||||||||||
Total comprehensive income available to Genworth Financial, Inc.’s common stockholders | $ | 366 | $ | 394 | $ | 471 | $ | (865 | ) | $ | 366 | $ | 366 | $ | 394 | $ | 471 | $ | (865 | ) | $ | 366 | ||||||||||||||||||
Parent | All Other | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Guarantor | Issuer | Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Cash flows from (used by) operating activities: | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 149 | $ | 157 | $ | 201 | $ | (328 | ) | $ | 179 | $ | 330 | $ | 348 | $ | 441 | $ | (721 | ) | $ | 398 | ||||||||||||||||||
Less loss from discontinued operations, net of taxes | — | 2 | — | — | 2 | — | 3 | — | — | 3 | ||||||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash from (used by) operating activities: | ||||||||||||||||||||||||||||||||||||||||
Equity in income from subsidiaries | (156 | ) | (172 | ) | — | 328 | — | (347 | ) | (374 | ) | — | 721 | — | ||||||||||||||||||||||||||
Dividends from subsidiaries | — | 19 | (19 | ) | — | — | ||||||||||||||||||||||||||||||||||
Amortization of fixed maturity securities discounts and premiums | — | 1 | (35 | ) | — | (34 | ) | — | 1 | (85 | ) | — | (84 | ) | ||||||||||||||||||||||||||
Net investment (gains) losses | — | — | (28 | ) | — | (28 | ) | — | — | (36 | ) | — | (36 | ) | ||||||||||||||||||||||||||
Charges assessed to policyholders | — | — | (150 | ) | — | (150 | ) | — | — | (292 | ) | — | (292 | ) | ||||||||||||||||||||||||||
Acquisition costs deferred | — | — | (2 | ) | — | (2 | ) | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | — | 92 | — | 92 | — | — | 176 | — | 176 | ||||||||||||||||||||||||||||||
Deferred income taxes | 1 | 44 | 12 | — | 57 | 3 | 75 | 50 | — | 128 | ||||||||||||||||||||||||||||||
Derivative instruments, limited partnerships and other | — | 3 | (108 | ) | — | (105 | ) | — | 4 | (167 | ) | — | (163 | ) | ||||||||||||||||||||||||||
Stock-based compensation expense | 7 | — | 3 | — | 10 | 15 | — | 5 | — | 20 | ||||||||||||||||||||||||||||||
Change in certain assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||
Accrued investment income and other assets | 5 | 2 | (50 | ) | — | (43 | ) | 4 | 2 | (76 | ) | — | (70 | ) | ||||||||||||||||||||||||||
Insurance reserves | — | — | 249 | — | 249 | — | — | 494 | — | 494 | ||||||||||||||||||||||||||||||
Current tax liabilities | 29 | (20 | ) | (9 | ) | — | — | 140 | (54 | ) | (86 | ) | — | — | ||||||||||||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 3 | — | (292 | ) | — | (289 | ) | 6 | (3 | ) | (208 | ) | — | (205 | ) | |||||||||||||||||||||||||
Cash used by operating activities—discontinued operations | — | (30 | ) | — | — | (30 | ) | — | (31 | ) | — | — | (31 | ) | ||||||||||||||||||||||||||
Net cash from (used by) operating activities | 38 | (13 | ) | (117 | ) | — | (92 | ) | 151 | (10 | ) | 196 | — | 337 | ||||||||||||||||||||||||||
Cash flows from (used by) investing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds from maturities and repayments of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | — | — | 730 | — | 730 | — | — | 1,495 | — | 1,495 | ||||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 115 | — | 115 | — | — | 314 | — | 314 | ||||||||||||||||||||||||||||||
Limited partnerships and other invested assets | — | — | 51 | — | 51 | — | — | 99 | — | 99 | ||||||||||||||||||||||||||||||
Proceeds from sales of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity and equity securities | — | — | 581 | — | 581 | — | — | 1,302 | — | 1,302 | ||||||||||||||||||||||||||||||
Purchases and originations of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity and equity securities | — | — | (969 | ) | — | (969 | ) | — | — | (1,800 | ) | — | (1,800 | ) | ||||||||||||||||||||||||||
Commercial mortgage loans | — | — | (197 | ) | — | (197 | ) | — | — | (568 | ) | — | (568 | ) | ||||||||||||||||||||||||||
Limited partnerships and other invested assets | — | — | (137 | ) | — | (137 | ) | — | — | (297 | ) | — | (297 | ) | ||||||||||||||||||||||||||
Short-term investments, net | — | (50 | ) | — | — | (50 | ) | — | (25 | ) | 1 | — | (24 | ) | ||||||||||||||||||||||||||
Policy loans, net | — | — | 14 | — | 14 | — | — | 14 | — | 14 | ||||||||||||||||||||||||||||||
Intercompany notes receivable, net | (16 | ) | (56 | ) | — | 72 | — | (113 | ) | (39 | ) | 1 | 151 | — | ||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2 | ) | (6 | ) | 8 | — | — | (2 | ) | (6 | ) | 8 | — | — | ||||||||||||||||||||||||||
Net cash from (used by) investing activities | (18 | ) | (112 | ) | 196 | 72 | 138 | (115 | ) | (70 | ) | 569 | 151 | 535 | ||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||
Cash flows from (used by) financing activities: | ||||||||||||||||||||||||||||||||||||||||
Deposits to universal life and investment contracts | — | — | 159 | — | 159 | — | — | 314 | — | 314 | ||||||||||||||||||||||||||||||
Withdrawals from universal life and investment contracts | — | — | (418 | ) | — | (418 | ) | — | — | (779 | ) | — | (779 | ) | ||||||||||||||||||||||||||
Repayment and repurchase of long-term debt | — | (82 | ) | — | — | (82 | ) | — | (130 | ) | — | — | (130 | ) | ||||||||||||||||||||||||||
Intercompany notes payable, net | (12 | ) | 16 | 68 | (72 | ) | — | (12 | ) | 112 | 51 | (151 | ) | — | ||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | (4 | ) | — | (4 | ) | |||||||||||||||||||||||||||||||||
Treasury stock acquired in connection with share repurchases | (15 | ) | — | — | — | (15 | ) | |||||||||||||||||||||||||||||||||
Other, net | (8 | ) | — | 23 | — | 15 | (9 | ) | (55 | ) | (41 | ) | — | (105 | ) | |||||||||||||||||||||||||
Net cash used by financing activities | (20 | ) | (66 | ) | (168 | ) | (72 | ) | (326 | ) | (36 | ) | (73 | ) | (459 | ) | (151 | ) | (719 | ) | ||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash | — | (191 | ) | (89 | ) | — | (280 | ) | — | (153 | ) | 306 | — | 153 | ||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | — | 331 | 1,240 | — | 1,571 | — | 331 | 1,240 | — | 1,571 | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | — | 140 | 1,151 | — | 1,291 | — | 178 | 1,546 | — | 1,724 | ||||||||||||||||||||||||||||||
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 | $ | — | $ | 140 | $ | 1,151 | $ | — | $ | 1,291 | $ | — | $ | 178 | $ | 1,546 | $ | — | $ | 1,724 | ||||||||||||||||||||
Parent | All Other | |||||||||||||||||||||||||||||||||||||||
(Amounts in millions) | Guarantor | Issuer | Subsidiaries | Eliminations | Consolidated | Parent Guarantor | Issuer | All Other Subsidiaries | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Cash flows from (used by) operating activities: | ||||||||||||||||||||||||||||||||||||||||
Net income | $ | 904 | $ | 933 | $ | 1,079 | $ | (1,971 | ) | $ | 945 | $ | 904 | $ | 933 | $ | 1,079 | $ | (1,971 | ) | $ | 945 | ||||||||||||||||||
Less income from discontinued operations, net of taxes | — | (13 | ) | (14 | ) | — | (27 | ) | — | (13 | ) | (14 | ) | — | (27 | ) | ||||||||||||||||||||||||
Adjustments to reconcile net income to net cash from (used by) operating activities: | ||||||||||||||||||||||||||||||||||||||||
Equity in income from subsidiaries | (930 | ) | (1,041 | ) | — | 1,971 | — | (930 | ) | (1,041 | ) | — | 1,971 | — | ||||||||||||||||||||||||||
Dividends from subsidiaries | — | 552 | (552 | ) | — | — | — | 552 | (552 | ) | — | — | ||||||||||||||||||||||||||||
Amortization of fixed maturity securities discounts and premiums | — | 6 | (182 | ) | — | (176 | ) | — | 6 | (182 | ) | — | (176 | ) | ||||||||||||||||||||||||||
Net investment (gains) losses | — | — | (323 | ) | — | (323 | ) | — | — | (323 | ) | — | (323 | ) | ||||||||||||||||||||||||||
Charges assessed to policyholders | — | — | (620 | ) | — | (620 | ) | — | — | (620 | ) | — | (620 | ) | ||||||||||||||||||||||||||
Acquisition costs deferred | — | — | (8 | ) | — | (8 | ) | — | — | (8 | ) | — | (8 | ) | ||||||||||||||||||||||||||
Amortization of deferred acquisition costs and intangibles | — | — | 377 | — | 377 | — | — | 377 | — | 377 | ||||||||||||||||||||||||||||||
Deferred income taxes | — | 341 | (51 | ) | — | 290 | — | 341 | (51 | ) | — | 290 | ||||||||||||||||||||||||||||
Derivative instruments, limited partnerships and other | — | 75 | (434 | ) | — | (359 | ) | — | 75 | (434 | ) | — | (359 | ) | ||||||||||||||||||||||||||
Stock-based compensation expense | 40 | — | — | — | 40 | 40 | — | — | — | 40 | ||||||||||||||||||||||||||||||
Change in certain assets and liabilities: | ||||||||||||||||||||||||||||||||||||||||
Accrued investment income and other assets | (1 | ) | 9 | (137 | ) | — | (129 | ) | (1 | ) | 9 | (137 | ) | — | (129 | ) | ||||||||||||||||||||||||
Insurance reserves | — | — | 642 | — | 642 | — | — | 642 | — | 642 | ||||||||||||||||||||||||||||||
Current tax liabilities | (5 | ) | 17 | (46 | ) | — | (34 | ) | (5 | ) | 17 | (46 | ) | — | (34 | ) | ||||||||||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | (13 | ) | (40 | ) | 363 | — | 310 | (13 | ) | (40 | ) | 363 | — | 310 | ||||||||||||||||||||||||||
Cash from (used by) operating activities—discontinued operations | — | (564 | ) | 73 | — | (491 | ) | — | (564 | ) | 73 | — | (491 | ) | ||||||||||||||||||||||||||
Net cash from (used by) operating activities | (5 | ) | 275 | 167 | — | 437 | (5 | ) | 275 | 167 | — | 437 | ||||||||||||||||||||||||||||
Cash flows from (used by) investing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds from maturities and repayments of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | — | — | 4,162 | — | 4,162 | — | — | 4,162 | — | 4,162 | ||||||||||||||||||||||||||||||
Commercial mortgage loans | — | — | 874 | — | 874 | — | — | 874 | — | 874 | ||||||||||||||||||||||||||||||
Limited partnerships and other invested assets | — | — | 255 | — | 255 | — | — | 255 | — | 255 | ||||||||||||||||||||||||||||||
Proceeds from sales of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity and equity securities | — | — | 2,273 | — | 2,273 | — | — | 2,273 | — | 2,273 | ||||||||||||||||||||||||||||||
Purchases and originations of investments: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity and equity securities | — | — | (5,216 | ) | — | (5,216 | ) | — | — | (5,216 | ) | — | (5,216 | ) | ||||||||||||||||||||||||||
Commercial mortgage loans | — | — | (963 | ) | — | (963 | ) | — | — | (963 | ) | — | (963 | ) | ||||||||||||||||||||||||||
Limited partnerships and other invested assets | — | — | (767 | ) | — | (767 | ) | — | — | (767 | ) | — | (767 | ) | ||||||||||||||||||||||||||
Short-term investments, net | — | — | 18 | — | 18 | — | — | 18 | — | 18 | ||||||||||||||||||||||||||||||
Policy loans, net | — | — | 57 | — | 57 | — | — | 57 | — | 57 | ||||||||||||||||||||||||||||||
Intercompany notes receivable, net | — | 4 | (1 | ) | (3 | ) | — | — | 4 | (1 | ) | (3 | ) | — | ||||||||||||||||||||||||||
Capital contributions to subsidiaries | (2 | ) | — | 2 | — | — | (2 | ) | — | 2 | — | — | ||||||||||||||||||||||||||||
Proceeds from sale of business, net of cash transferred | — | — | 270 | — | 270 | — | — | 270 | — | 270 | ||||||||||||||||||||||||||||||
Cash used by investing activities—discontinued operations | — | — | (67 | ) | — | (67 | ) | — | — | (67 | ) | — | (67 | ) | ||||||||||||||||||||||||||
Net cash from (used by) investing activities | (2 | ) | 4 | 897 | (3 | ) | 896 | (2 | ) | 4 | 897 | (3 | ) | 896 | ||||||||||||||||||||||||||
Cash flows from (used by) financing activities: | ||||||||||||||||||||||||||||||||||||||||
Deposits to universal life and investment contracts | — | — | 669 | — | 669 | — | — | 669 | — | 669 | ||||||||||||||||||||||||||||||
Withdrawals from universal life and investment contracts | — | — | (2,071 | ) | — | (2,071 | ) | — | — | (2,071 | ) | — | (2,071 | ) | ||||||||||||||||||||||||||
Repayment and repurchase of long-term debt | — | (1,541 | ) | — | — | (1,541 | ) | — | (1,541 | ) | — | — | (1,541 | ) | ||||||||||||||||||||||||||
Intercompany notes payable, net | 12 | 1 | (16 | ) | 3 | — | 12 | 1 | (16 | ) | 3 | — | ||||||||||||||||||||||||||||
Proceeds from sale of subsidiary shares to noncontrolling interests | — | 529 | — | — | 529 | — | 529 | — | — | 529 | ||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interests | — | — | (37 | ) | — | (37 | ) | — | — | (37 | ) | — | (37 | ) | ||||||||||||||||||||||||||
Other, net | (5 | ) | (15 | ) | 52 | — | 32 | (5 | ) | (15 | ) | 52 | — | 32 | ||||||||||||||||||||||||||
Net cash from (used by) financing activities | 7 | (1,026 | ) | (1,403 | ) | 3 | (2,419 | ) | 7 | (1,026 | ) | (1,403 | ) | 3 | (2,419 | ) | ||||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash (includes $(1) related to discontinued operations) | — | — | 1 | — | 1 | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash | — | (747 | ) | (338 | ) | — | (1,085 | ) | — | (747 | ) | (338 | ) | — | (1,085 | ) | ||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | — | 1,078 | 1,578 | — | 2,656 | — | 1,078 | 1,578 | — | 2,656 | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | — | 331 | 1,240 | — | 1,571 | — | 331 | 1,240 | — | 1,571 | ||||||||||||||||||||||||||||||
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 | $ | — | $ | 331 | $ | 1,240 | $ | — | $ | 1,571 | $ | — | $ | 331 | $ | 1,240 | $ | — | $ | 1,571 | ||||||||||||||||||||
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
(Dollar amounts in millions, except share amounts) | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced program | Approximate dollar amount of shares that may yet be purchased under the program (1) | ||||||||||||
May 1, 2022 through May 31, 2022 | 3,869,494 | $ | 3.88 | 3,869,494 | $ | 335 | ||||||||||
Total | 3,869,494 | 3,869,494 | ||||||||||||||
(1) | On May 2, 2022, Genworth Financial’s Board of Directors authorized a share repurchase program under which Genworth Financial may repurchase up to $350 million of its outstanding Class A common stock. Under the program, share repurchases may be made at the Company’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, including through Rule 10b5-1 trading plans. The timing and number of shares repurchased under the program will depend on a variety of factors, including stock price, trading volume, and general business and market conditions. The authorization has no expiration date and may be modified, suspended or terminated at any time. For additional information on the share repurchase program, see “Part I—Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” |
Number | Description | |
10.1§ | Separation Agreement and Release, dated December 21, 2021, between Genworth Financial, Inc. and Ward Bobitz (filed herewith) | |
31.1 | Certification of Thomas J. McInerney (filed herewith) | |
31.2 | Certification of Daniel J. Sheehan IV (filed herewith) | |
32.1 | Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code— Thomas J. McInerney (filed herewith) | |
32.2 | Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code— Daniel J. Sheehan IV (filed herewith) | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101) |
§ | Management contract or compensatory plan or arrangement. |
GENWORTH FINANCIAL, INC. (Registrant) | ||||||
Date: | ||||||
By: | /s/ Jerome T. Upton | |||||
Jerome T. Upton | ||||||
Senior Vice President and Controller (Principal Accounting Officer) |