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 | 90-0226248 | |||||||
(State or other jurisdiction of | ||||||||
incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Common Stock | EQH | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series A | EQH PR A | New York Stock Exchange | ||||||||||||
Depositary Shares, each representing a 1/1,000th interest in a share of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C | EQH PR C | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||||||||||||||
Emerging growth company | |||||||||||||||||||||||||||||||
☐ | |||||||||||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ¨ |
Page | ||||||||||
- OTHER INFORMATION | ||||||||||
Item 1. | ||||||||||
Item 1A. | ||||||||||
Item 2. | ||||||||||
Item 3. | ||||||||||
Item 4. | ||||||||||
Item 5. | ||||||||||
Item 6. | ||||||||||
March 31, 2018 | December 31, 2017 | |||||||||||||||||
(Unaudited) | ||||||||||||||||||
(in millions, except share amounts) | September 30, 2022 | December 31, 2021 | ||||||||||||||||
(in millions, except share data) | ||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Investments: | Investments: | |||||||||||||||||
Fixed maturities available for sale, at fair value (amortized cost of $43,268 and $45,068) | $ | 43,484 | $ | 46,941 | ||||||||||||||
Mortgage loans on real estate (net of valuation allowance of $7 and $8) | 11,333 | 10,952 | ||||||||||||||||
Real estate held for production of income(1) | 52 | 390 | ||||||||||||||||
Fixed maturities available-for-sale, at fair value (amortized cost of $75,320 and $73,429) (allowance for credit losses of $22 and $22) | Fixed maturities available-for-sale, at fair value (amortized cost of $75,320 and $73,429) (allowance for credit losses of $22 and $22) | $ | 64,600 | $ | 78,216 | |||||||||||||
Fixed maturities, at fair value using the fair value option (1) | Fixed maturities, at fair value using the fair value option (1) | 1,548 | 1,641 | |||||||||||||||
Mortgage loans on real estate (net of allowance for credit losses of $83 and $62) (1) | Mortgage loans on real estate (net of allowance for credit losses of $83 and $62) (1) | 15,688 | 14,033 | |||||||||||||||
Policy loans | 3,776 | 3,819 | Policy loans | 4,018 | 4,024 | |||||||||||||
Other equity investments(1) | 1,258 | 1,392 | Other equity investments (1) | 3,183 | 2,975 | |||||||||||||
Trading securities, at fair value | 14,919 | 14,170 | Trading securities, at fair value | 631 | 631 | |||||||||||||
Other invested assets(1) | 4,061 | 4,118 | Other invested assets (1) | 2,849 | 3,591 | |||||||||||||
Total investments | 78,883 | 81,782 | Total investments | 92,517 | 105,111 | |||||||||||||
Cash and cash equivalents(1) | 6,091 | 4,814 | Cash and cash equivalents (1) | 4,139 | 5,188 | |||||||||||||
Cash and securities segregated, at fair value | 1,025 | 825 | Cash and securities segregated, at fair value | 1,335 | 1,504 | |||||||||||||
Broker-dealer related receivables | 2,300 | 2,158 | Broker-dealer related receivables | 2,539 | 2,599 | |||||||||||||
Deferred policy acquisition costs | 6,288 | 5,969 | Deferred policy acquisition costs | 8,244 | 5,491 | |||||||||||||
Goodwill and other intangible assets, net | 4,813 | 4,824 | Goodwill and other intangible assets, net | 5,635 | 4,728 | |||||||||||||
Amounts due from reinsurers | 4,953 | 5,023 | ||||||||||||||||
Loans to affiliates | 885 | 1,230 | ||||||||||||||||
Amounts due from reinsurers (allowance for credit losses of $7 and $5) (includes amounts accounted for at fair value of $4,312 and $5,813) (3) | Amounts due from reinsurers (allowance for credit losses of $7 and $5) (includes amounts accounted for at fair value of $4,312 and $5,813) (3) | 13,378 | 14,679 | |||||||||||||||
GMIB reinsurance contract asset, at fair value | 1,734 | 1,894 | GMIB reinsurance contract asset, at fair value | 1,289 | 1,848 | |||||||||||||
Current and deferred tax assets | 225 | 67 | ||||||||||||||||
Current and deferred income taxes | Current and deferred income taxes | 2,222 | 195 | |||||||||||||||
Other assets(1) | 3,239 | 2,510 | Other assets (1) | 4,680 | 3,613 | |||||||||||||
Separate Accounts assets | 121,858 | 124,552 | Separate Accounts assets | 109,622 | 147,306 | |||||||||||||
Total assets | $ | 232,294 | $ | 235,648 | ||||||||||||||
Total Assets | Total Assets | $ | 245,600 | $ | 292,262 | |||||||||||||
LIABILITIES | LIABILITIES | |||||||||||||||||
Policyholders’ account balances | $ | 47,666 | $ | 47,171 | Policyholders’ account balances | $ | 79,999 | $ | 79,357 | |||||||||
Future policy benefits and other policyholders’ liabilities | 29,586 | 30,299 | ||||||||||||||||
Future policy benefits and other policyholders' liabilities | Future policy benefits and other policyholders' liabilities | 34,225 | 36,717 | |||||||||||||||
Broker-dealer related payables | 466 | 783 | Broker-dealer related payables | 607 | 1,283 | |||||||||||||
Securities sold under agreements to repurchase | 1,904 | 1,887 | ||||||||||||||||
Customers related payables | 2,549 | 2,229 | ||||||||||||||||
Customer related payables | Customer related payables | 3,361 | 3,600 | |||||||||||||||
Amounts due to reinsurers | 1,396 | 1,436 | Amounts due to reinsurers | 1,348 | 1,381 | |||||||||||||
Short-term and Long-term debt(1) | 2,373 | 2,408 | ||||||||||||||||
Short-term and long-term debt | Short-term and long-term debt | 4,088 | 3,931 | |||||||||||||||
Notes issued by consolidated variable interest entities, at fair value using the fair value option (1) | Notes issued by consolidated variable interest entities, at fair value using the fair value option (1) | 1,165 | 1,191 | |||||||||||||||
Other liabilities (1) | Other liabilities (1) | 5,998 | 3,933 | |||||||||||||||
Separate Accounts liabilities | Separate Accounts liabilities | 109,622 | 147,306 | |||||||||||||||
Total Liabilities | Total Liabilities | $ | 240,413 | $ | 278,699 | |||||||||||||
Redeemable noncontrolling interest (1) (2) | Redeemable noncontrolling interest (1) (2) | $ | 354 | $ | 468 | |||||||||||||
Commitments and contingent liabilities (4) | Commitments and contingent liabilities (4) | |||||||||||||||||
EQUITY | EQUITY | |||||||||||||||||
Equity attributable to Holdings: | Equity attributable to Holdings: | |||||||||||||||||
Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference | Preferred stock and additional paid-in capital, $1 par value and $25,000 liquidation preference | $ | 1,562 | $ | 1,562 | |||||||||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized; 510,362,388 and 520,918,331 shares issued, respectively; 370,114,999 and 391,290,224 shares outstanding, respectively | Common stock, $0.01 par value, 2,000,000,000 shares authorized; 510,362,388 and 520,918,331 shares issued, respectively; 370,114,999 and 391,290,224 shares outstanding, respectively | 4 | 4 | |||||||||||||||
Additional paid-in capital | Additional paid-in capital | 2,027 | 1,919 | |||||||||||||||
Treasury stock, at cost, 140,247,389 and 129,628,107 shares, respectively | Treasury stock, at cost, 140,247,389 and 129,628,107 shares, respectively | (3,202) | (2,850) | |||||||||||||||
Retained earnings | Retained earnings | 10,839 | 8,880 | |||||||||||||||
Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) | (7,876) | 2,004 | |||||||||||||||
Total equity attributable to Holdings | Total equity attributable to Holdings | 3,354 | 11,519 | |||||||||||||||
Noncontrolling interest | Noncontrolling interest | 1,479 | 1,576 | |||||||||||||||
Total Equity | Total Equity | 4,833 | 13,095 | |||||||||||||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 245,600 | $ | 292,262 |
March 31, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
(in millions, except share amounts) | |||||||
Loans from affiliates | 2,530 | 3,622 | |||||
Other liabilities(1) | 4,342 | 4,053 | |||||
Separate Accounts liabilities | 121,858 | 124,552 | |||||
Total liabilities | $ | 214,670 | $ | 218,440 | |||
Redeemable noncontrolling interest(1) | $ | 1,024 | $ | 626 | |||
Commitments and contingent liabilities (Note 14) | |||||||
EQUITY | |||||||
Equity attributable to Holdings: | |||||||
Common stock, $0.01 par value, 2,000,000,000 shares authorized and 561,000,000 issued and outstanding | $ | 6 | $ | 6 | |||
Capital in excess of par value | 2,050 | 1,298 | |||||
Retained earnings | 12,455 | 12,289 | |||||
Accumulated other comprehensive income (loss) | (946 | ) | (108 | ) | |||
Total equity attributable to Holdings | 13,565 | 13,485 | |||||
Noncontrolling interest | 3,035 | 3,097 | |||||
Total equity | 16,600 | 16,582 | |||||
Total Liabilities, Redeemable Noncontrolling Interest and Equity | $ | 232,294 | $ | 235,648 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||
Policy charges and fee income | $ | 796 | $ | 867 | $ | 2,449 | $ | 2,755 | |||||||||||||||||||||
Premiums | 259 | 230 | 744 | 729 | |||||||||||||||||||||||||
Net derivative gains (losses) | 68 | (185) | 3,118 | (3,930) | |||||||||||||||||||||||||
Net investment income (loss) | 842 | 997 | 2,357 | 2,914 | |||||||||||||||||||||||||
Investment gains (losses), net: | |||||||||||||||||||||||||||||
Credit and intent to sell losses on available for sale debt securities and loans | (267) | (2) | (266) | 4 | |||||||||||||||||||||||||
Other investment gains (losses), net | (65) | 165 | (624) | 763 | |||||||||||||||||||||||||
Total investment gains (losses), net | (332) | 163 | (890) | 767 | |||||||||||||||||||||||||
Investment management and service fees | 1,179 | 1,323 | 3,731 | 3,898 | |||||||||||||||||||||||||
Other income | 197 | 220 | 612 | 585 | |||||||||||||||||||||||||
Total revenues | 3,009 | 3,615 | 12,121 | 7,718 | |||||||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||||||||||||||||||
Policyholders’ benefits | 625 | 751 | 2,599 | 2,518 | |||||||||||||||||||||||||
Interest credited to policyholders’ account balances | 378 | 305 | 1,002 | 905 | |||||||||||||||||||||||||
Compensation and benefits | 566 | 614 | 1,679 | 1,762 | |||||||||||||||||||||||||
Commissions and distribution-related payments | 368 | 436 | 1,184 | 1,215 | |||||||||||||||||||||||||
Interest expense | 51 | 59 | 148 | 184 | |||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 105 | 64 | 446 | 257 | |||||||||||||||||||||||||
Other operating costs and expenses | 497 | 456 | 1,617 | 1,511 | |||||||||||||||||||||||||
Total benefits and other deductions | 2,590 | 2,685 | 8,675 | 8,352 | |||||||||||||||||||||||||
Income (loss) from continuing operations, before income taxes | 419 | 930 | 3,446 | (634) | |||||||||||||||||||||||||
Income tax (expense) benefit | (92) | (165) | (707) | 222 | |||||||||||||||||||||||||
Net income (loss) | 327 | 765 | 2,739 | (412) | |||||||||||||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 54 | 93 | 165 | 281 | |||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | 273 | $ | 672 | $ | 2,574 | $ | (693) | |||||||||||||||||||||
Less: Preferred stock dividends | 14 | 14 | 54 | 53 | |||||||||||||||||||||||||
Net income (loss) available to Holdings’ common shareholders | $ | 259 | $ | 658 | $ | 2,520 | $ | (746) | |||||||||||||||||||||
EARNINGS PER COMMON SHARE | |||||||||||||||||||||||||||||
Net income (loss) applicable to Holdings’ common shareholders per common share: | |||||||||||||||||||||||||||||
Basic | $ | 0.69 | $ | 1.60 | $ | 6.62 | $ | (1.76) | |||||||||||||||||||||
Diluted | $ | 0.69 | $ | 1.59 | $ | 6.58 | $ | (1.76) | |||||||||||||||||||||
Weighted average common shares outstanding (in millions): | |||||||||||||||||||||||||||||
Basic | 374.5 | 411.3 | 380.6 | 423.2 | |||||||||||||||||||||||||
Diluted | 376.8 | 414.6 | 382.9 | 423.2 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions, except earnings per share amounts) | |||||||
REVENUES | |||||||
Policy charges and fee income | $ | 972 | $ | 956 | |||
Premiums | 279 | 281 | |||||
Net derivative gains (losses) | (281 | ) | (235 | ) | |||
Net investment income (loss) | 591 | 780 | |||||
Investment gains (losses), net: | |||||||
Total other-than-temporary impairment losses | — | (1 | ) | ||||
Other investment gains (losses), net | 102 | (23 | ) | ||||
Total investment gains (losses), net | 102 | (24 | ) | ||||
Investment management and service fees | 1,055 | 954 | |||||
Other income | 117 | 118 | |||||
Total revenues | 2,835 | 2,830 | |||||
BENEFITS AND OTHER DEDUCTIONS | |||||||
Policyholders’ benefits | 608 | 1,093 | |||||
Interest credited to policyholders’ account balances | 271 | 246 | |||||
Compensation and benefits (includes $40 and $41 of deferred acquisition costs) | 620 | 539 | |||||
Commissions and distribution related payments (includes $120 and $132 of deferred acquisition costs) | 411 | 395 | |||||
Interest expense | 46 | 35 | |||||
Amortization of deferred policy acquisition costs, net (net of capitalization of $160 and $173) | 15 | (55 | ) | ||||
Other operating costs and expenses | 494 | 744 | |||||
Total benefits and other deductions | 2,465 | 2,997 | |||||
Income (loss) from continuing operations, before income taxes | 370 | (167 | ) | ||||
Income tax (expense) benefit | (79 | ) | (30 | ) | |||
Net income (loss) | 291 | (197 | ) | ||||
Less: net (income) loss attributable to the noncontrolling interest | (123 | ) | (93 | ) | |||
Net income (loss) attributable to Holdings | $ | 168 | $ | (290 | ) | ||
EARNINGS PER SHARE | |||||||
Earnings per share - Common stock | |||||||
Basic | $ | 0.30 | $ | (0.52 | ) | ||
Diluted | $ | 0.30 | $ | (0.52 | ) | ||
Weighted average common shares outstanding | 561 | 561 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||||||||
Net income (loss) | $ | 327 | $ | 765 | $ | 2,739 | $ | (412) | |||||||||||||||||||||
Other comprehensive income (loss) net of income taxes: | |||||||||||||||||||||||||||||
Change in unrealized gains (losses), net of reclassification adjustment | (2,326) | (123) | (9,894) | (2,056) | |||||||||||||||||||||||||
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 16 | 22 | 61 | 77 | |||||||||||||||||||||||||
Foreign currency translation adjustment | (30) | (9) | (75) | (13) | |||||||||||||||||||||||||
Total other comprehensive income (loss), net of income taxes | (2,340) | (110) | (9,908) | (1,992) | |||||||||||||||||||||||||
Comprehensive income (loss) | (2,013) | 655 | (7,169) | (2,404) | |||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to the noncontrolling interest | 42 | 90 | 137 | 276 | |||||||||||||||||||||||||
Comprehensive income (loss) attributable to Holdings | $ | (2,055) | $ | 565 | $ | (7,306) | $ | (2,680) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
COMPREHENSIVE INCOME (LOSS) | |||||||
Net income (loss) | $ | 291 | $ | (197 | ) | ||
Other comprehensive income (loss) net of income taxes: | |||||||
Foreign currency translation adjustment | (5 | ) | 8 | ||||
Change in unrealized gains (losses), net of reclassification adjustment | (960 | ) | 104 | ||||
Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment | 133 | 25 | |||||
Total other comprehensive income (loss), net of income taxes | (832 | ) | 137 | ||||
Comprehensive income (loss) | (541 | ) | (60 | ) | |||
Less: Comprehensive (income) loss attributable to noncontrolling interest | (129 | ) | (100 | ) | |||
Comprehensive income (loss) attributable to Holdings | $ | (670 | ) | $ | (160 | ) |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Attributable to Holdings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock and Additional Paid-In Capital | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Holdings Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
July 1, 2022 | $ | 1,562 | $ | 4 | $ | 1,918 | $ | (3,065) | $ | 10,718 | $ | (5,548) | $ | 5,589 | $ | 1,410 | $ | 6,999 | |||||||||||||||||||||||||||||||||||
Stock compensation | — | — | 33 | 3 | — | — | 36 | 9 | 45 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | (1) | (200) | — | — | (201) | — | (201) | ||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | — | — | — | — | (3) | — | (3) | — | (3) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of common stock | — | — | — | 60 | (60) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of AB Holding units | — | — | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (79) | (79) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of AB Units for CarVal acquisition | — | — | 55 | — | — | — | 55 | 78 | 133 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock (cash dividends declared per common share of $0.20) | — | — | — | — | (75) | — | (75) | — | (75) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (14) | — | (14) | — | (14) | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | 273 | — | 273 | 62 | 335 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (2,328) | (2,328) | (12) | (2,340) | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | 22 | — | — | — | 22 | 12 | 34 | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | $ | 1,562 | $ | 4 | $ | 2,027 | $ | (3,202) | $ | 10,839 | $ | (7,876) | $ | 3,354 | $ | 1,479 | $ | 4,833 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Equity attributable to Holdings: | |||||||
Common stock, at par value, beginning of year and end of period | $ | 6 | $ | 6 | |||
Capital in excess of par value, beginning of year | $ | 1,298 | $ | 931 | |||
Capital contribution from parent | 695 | — | |||||
Changes in capital in excess of par value | 57 | 11 | |||||
Capital in excess of par value, end of period | $ | 2,050 | $ | 942 | |||
Retained earnings, beginning of year | $ | 12,289 | $ | 11,439 | |||
Impact of adoption of revenue recognition standard ASC 606 | 13 | — | |||||
Net income (loss) | 168 | (290 | ) | ||||
Stockholder dividends | (15 | ) | — | ||||
Retained earnings, end of period | $ | 12,455 | $ | 11,149 | |||
Accumulated other comprehensive income (loss), beginning of year | $ | (108 | ) | $ | (921 | ) | |
Other comprehensive income (loss) | (838 | ) | 130 | ||||
Accumulated other comprehensive income (loss), end of period | (946 | ) | (791 | ) | |||
Total Holdings’ equity, end of period | $ | 13,565 | $ | 11,306 | |||
Noncontrolling interest, beginning of year | $ | 3,097 | $ | 3,142 | |||
Impact of adoption of revenue recognition standard ASC 606 | 19 | — | |||||
Repurchase of AB Holding units | (1 | ) | — | ||||
Net income (loss) attributable to noncontrolling interest | 103 | 77 | |||||
Dividends paid to noncontrolling interest | (135 | ) | (108 | ) | |||
Other comprehensive income (loss) attributable to noncontrolling interest | 6 | 7 | |||||
Other changes in noncontrolling interest | (54 | ) | (13 | ) | |||
Noncontrolling interest, end of period | 3,035 | 3,105 | |||||
Total Equity, End of Period | $ | 16,600 | $ | 14,411 |
July 1, 2021 | $ | 1,562 | $ | 5 | $ | 1,980 | $ | (2,537) | $ | 8,739 | $ | 1,983 | $ | 11,732 | $ | 1,572 | $ | 13,304 | |||||||||||||||||||||||||||||||||||
Stock compensation | — | — | (26) | (1) | — | — | (27) | 27 | — | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | 3 | (462) | — | — | (459) | — | (459) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of common stock | — | — | — | 463 | (463) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of AB Holding units | — | — | — | — | — | — | — | (95) | (95) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (101) | (101) | ||||||||||||||||||||||||||||||||||||||||||||
Stockholder dividends (cash dividends declared per common share of $0.18) | — | — | — | — | (74) | — | (74) | — | (74) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (14) | — | (14) | — | (14) | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | 672 | — | 672 | 93 | 765 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (107) | (107) | (3) | (110) | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (40) | — | (3) | — | (43) | (1) | (44) | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | $ | 1,562 | $ | 5 | $ | 1,917 | $ | (2,537) | $ | 8,857 | $ | 1,876 | $ | 11,680 | $ | 1,492 | $ | 13,172 |
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Attributable to Holdings | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock and Additional Paid-In Capital | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Holdings Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
January 1, 2022 | $ | 1,562 | $ | 4 | $ | 1,919 | $ | (2,850) | $ | 8,880 | $ | 2,004 | $ | 11,519 | $ | 1,576 | $ | 13,095 | |||||||||||||||||||||||||||||||||||
Stock compensation | — | — | 68 | 39 | — | — | 107 | 36 | 143 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | (6) | (693) | — | — | (699) | — | (699) | ||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | — | — | — | — | (39) | — | (39) | — | (39) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of common stock | — | — | — | 302 | (302) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of AB Holding units | — | — | — | — | — | — | — | (108) | (108) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (318) | (318) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of AB Units for CarVal acquisition | — | — | 55 | — | — | — | 55 | 78 | 133 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock (cash dividends declared per common share of $0.58) | — | — | — | — | (220) | — | (220) | — | (220) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (54) | — | (54) | — | (54) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | 2,574 | — | 2,574 | 229 | 2,803 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | (9,880) | (9,880) | (28) | (9,908) | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (9) | — | — | — | (9) | 14 | 5 | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | $ | 1,562 | $ | 4 | $ | 2,027 | $ | (3,202) | $ | 10,839 | $ | (7,876) | $ | 3,354 | $ | 1,479 | $ | 4,833 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Net income (loss) | $ | 291 | $ | (197 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Interest credited to policyholders’ account balances | 271 | 246 | |||||
Policy charges and fee income | (972 | ) | (956 | ) | |||
Realized and unrealized gains (losses) on trading securities | 120 | (91 | ) | ||||
Net derivative (gains) losses | 281 | 235 | |||||
Investment (gains) losses, net | (102 | ) | 24 | ||||
Non-cash pension restructuring | 102 | — | |||||
Amortization of deferred compensation | 12 | 8 | |||||
Amortization of deferred sales commission | 7 | 9 | |||||
Other depreciation and amortization | (20 | ) | (42 | ) | |||
Amortization of deferred cost of reinsurance asset | 5 | 5 | |||||
Change in goodwill | — | 369 | |||||
Distribution from joint ventures and limited partnerships | 25 | 26 | |||||
Changes in: | |||||||
Net broker-dealer and customer related receivables/payables | 283 | 297 | |||||
Reinsurance recoverable | 32 | 27 | |||||
Segregated cash and securities, net | (208 | ) | (310 | ) | |||
Deferred policy acquisition costs | 15 | (55 | ) | ||||
Future policy benefits | (254 | ) | 296 | ||||
Current and deferred income taxes | 103 | 252 | |||||
Other, net | (255 | ) | (71 | ) | |||
Net cash provided by (used in) operating activities | (264 | ) | 72 | ||||
Cash flows from investing activities: | |||||||
Proceeds from the sale/maturity/prepayment of: | |||||||
Fixed maturities, available for sale | 4,288 | 1,033 | |||||
Mortgage loans on real estate | 68 | 209 | |||||
Trading account securities | 1,629 | 2,844 | |||||
Other | 54 | 56 | |||||
Payment for the purchase/origination of: | |||||||
Fixed maturities, available for sale | (3,245 | ) | (1,428 | ) | |||
Mortgage loans on real estate | (447 | ) | (632 | ) | |||
Trading account securities | (2,613 | ) | (3,928 | ) | |||
Other | (48 | ) | (28 | ) | |||
Cash settlements related to derivative instruments | (54 | ) | (1,400 | ) | |||
Decrease in loans to affiliates | 346 | 12 | |||||
Change in short-term investments | 876 | 573 |
January 1, 2021 | $ | 1,269 | $ | 5 | $ | 1,985 | $ | (2,245) | $ | 10,699 | $ | 3,863 | $ | 15,576 | $ | 1,601 | $ | 17,177 | |||||||||||||||||||||||||||||||||||
Stock compensation | — | — | 5 | 46 | — | — | 51 | 38 | 89 | ||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | (8) | (1,160) | — | — | (1,168) | — | (1,168) | ||||||||||||||||||||||||||||||||||||||||||||
Reissuance of treasury stock | — | — | — | — | (47) | — | (47) | — | (47) | ||||||||||||||||||||||||||||||||||||||||||||
Retirement of common stock | — | — | — | 822 | (822) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Repurchase of AB Holding units | — | — | — | — | — | — | — | (122) | (122) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | — | — | (296) | (296) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on common stock (cash dividends declared per common share of $0.53) | — | — | — | — | (224) | — | (224) | — | (224) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (53) | — | (53) | — | (53) | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 293 | — | — | — | — | — | 293 | — | 293 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | (693) | — | (693) | 277 | (416) | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (1,987) | (1,987) | (5) | (1,992) | |||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | (65) | — | (3) | — | (68) | (1) | (69) | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | $ | 1,562 | $ | 5 | $ | 1,917 | $ | (2,537) | $ | 8,857 | $ | 1,876 | $ | 11,680 | $ | 1,492 | $ | 13,172 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
Investment in capitalized software, leasehold improvements and EDP equipment | (24 | ) | (19 | ) | |||
Other, net | (371 | ) | (191 | ) | |||
Net cash provided by (used in) investing activities | 459 | (2,899 | ) | ||||
Cash flows from financing activities: | |||||||
Policyholders’ account balances: | |||||||
Deposits | 2,532 | 2,790 | |||||
Withdrawals | (1,384 | ) | (1,342 | ) | |||
Transfer (to) from Separate Accounts | (102 | ) | 186 | ||||
Change in short-term financings | 167 | 95 | |||||
Repayment of loans from affiliates | — | (56 | ) | ||||
Proceeds from loans from affiliates | — | 109 | |||||
Change in collateralized pledged assets | 17 | 347 | |||||
Change in collateralized pledged liabilities | 56 | 967 | |||||
(Decrease) increase in overdrafts payable | 7 | 50 | |||||
Cash Contribution from Parent | 8 | — | |||||
Shareholder dividend paid | (15 | ) | — | ||||
Repurchase of AB Holding units | (1 | ) | (31 | ) | |||
Redemptions of non-controlling interests of consolidated VIEs, net | 373 | (3 | ) | ||||
Distribution to noncontrolling interests in consolidated subsidiaries | (135 | ) | (112 | ) | |||
Increase (decrease) in Securities sold under agreement to repurchase | 17 | (370 | ) | ||||
Increase (decrease) in loans from affiliates | (470 | ) | — | ||||
Other, net | 4 | — | |||||
Net cash provided by (used in) financing activities | 1,074 | 2,630 | |||||
Effect of exchange rate changes on cash and cash equivalents | 8 | 8 | |||||
Change in cash and cash equivalents | 1,277 | (189 | ) | ||||
Cash and cash equivalents, beginning of year | 4,814 | 5,654 | |||||
Cash and Cash Equivalents, End of Period | $ | 6,091 | $ | 5,465 | |||
Non-cash transactions during the Period | |||||||
Capital contribution from Parent | $ | 630 | $ | — | |||
Repayment of Loans from affiliates | $ | (622 | ) | $ | — | ||
Contribution of 0.5% minority interest in AXF | $ | 65 | $ | — | |||
Repayment of long-term debt | $ | 202 | $ | — |
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
(in millions) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 2,739 | $ | (412) | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Interest credited to policyholders’ account balances | 1,002 | 905 | |||||||||||||||
Policy charges and fee income | (2,449) | (2,755) | |||||||||||||||
Net derivative (gains) losses | (3,118) | 3,930 | |||||||||||||||
Credit and intent to sell losses on available for sale debt securities and loans | 266 | (4) | |||||||||||||||
Investment (gains) losses, net | 624 | (761) | |||||||||||||||
(Gains) losses on businesses HFS | — | (2) | |||||||||||||||
Realized and unrealized (gains) losses on trading securities | 239 | 48 | |||||||||||||||
Non-cash long-term incentive compensation expense | 104 | 34 | |||||||||||||||
Amortization and depreciation | 587 | 336 | |||||||||||||||
Equity (income) loss from limited partnerships | (128) | (431) | |||||||||||||||
Changes in: | |||||||||||||||||
Net broker-dealer and customer related receivables/payables | (195) | (625) | |||||||||||||||
Reinsurance recoverable (1) | (846) | (758) | |||||||||||||||
Segregated cash and securities, net | 169 | 845 | |||||||||||||||
Capitalization of deferred policy acquisition costs | (645) | (620) | |||||||||||||||
Future policy benefits | 122 | (107) | |||||||||||||||
Current and deferred income taxes | 589 | (516) | |||||||||||||||
Other, net | 195 | 539 | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (745) | $ | (354) | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Proceeds from the sale/maturity/prepayment of: | |||||||||||||||||
Fixed maturities, available-for-sale | $ | 14,413 | $ | 25,911 | |||||||||||||
Fixed maturities, at fair value using the fair value option | 433 | 610 | |||||||||||||||
Mortgage loans on real estate | 901 | 1,417 | |||||||||||||||
Trading account securities | 205 | 5,115 | |||||||||||||||
Short term investments | 313 | 84 | |||||||||||||||
Other | 454 | 1,447 | |||||||||||||||
Payment for the purchase/origination of: | |||||||||||||||||
Fixed maturities, available-for-sale | (17,022) | (33,276) | |||||||||||||||
Fixed maturities, at fair value using the fair value option | (416) | (1,564) | |||||||||||||||
Mortgage loans on real estate | (2,604) | (1,680) | |||||||||||||||
Trading account securities | (185) | (178) | |||||||||||||||
Short term investments | (676) | (14) | |||||||||||||||
Other | (992) | (2,259) | |||||||||||||||
Purchase of business, net of cash acquired | 40 | — | |||||||||||||||
Cash from the sale of business, net of cash sold | — | 215 | |||||||||||||||
Cash settlements related to derivative instruments, net | 799 | (6,502) | |||||||||||||||
Repayments of loans to affiliates | — | — | |||||||||||||||
Investment in capitalized software, leasehold improvements and EDP equipment | (102) | (93) |
Nine Months Ended September 30, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
(in millions) | |||||||||||||||||
Other, net | 167 | (8) | |||||||||||||||
Net cash provided by (used in) investing activities | $ | (4,272) | $ | (10,775) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Policyholders’ account balances: | |||||||||||||||||
Deposits | $ | 11,680 | $ | 12,760 | |||||||||||||
Withdrawals | (5,011) | (4,617) | |||||||||||||||
Transfers (to) from Separate Accounts | 1,148 | 1,455 | |||||||||||||||
Change in short-term financings | 155 | 1 | |||||||||||||||
Change in collateralized pledged assets | 37 | 55 | |||||||||||||||
Change in collateralized pledged liabilities | (2,472) | 1,494 | |||||||||||||||
(Decrease) increase in overdrafts payable | (20) | 25 | |||||||||||||||
Repayment of long-term debt | — | (280) | |||||||||||||||
Repayment of acquisition-related debt obligation | (43) | — | |||||||||||||||
Proceeds from notes issued by consolidated VIEs | (34) | 874 | |||||||||||||||
Dividends paid on common stock | (220) | (224) | |||||||||||||||
Dividends paid on preferred stock | (54) | (53) | |||||||||||||||
Issuance of preferred stock | — | 293 | |||||||||||||||
Purchases of AB Holding Units to fund long-term incentive compensation plan awards | (108) | (122) | |||||||||||||||
Purchase of treasury shares | (699) | (1,169) | |||||||||||||||
Purchases (redemptions) of noncontrolling interests of consolidated company-sponsored investment funds | (49) | 23 | |||||||||||||||
Distribution to noncontrolling interest of consolidated subsidiaries | (318) | (296) | |||||||||||||||
Other, net | 65 | (38) | |||||||||||||||
Net cash provided by (used in) financing activities | $ | 4,058 | $ | 10,181 | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | $ | (90) | $ | (15) | |||||||||||||
Change in cash and cash equivalents | (1,049) | (963) | |||||||||||||||
Cash and cash equivalents, beginning of year | 5,188 | 6,179 | |||||||||||||||
Change in cash of businesses held-for-sale | — | 39 | |||||||||||||||
Cash and cash equivalents, end of year | $ | 4,139 | $ | 5,255 | |||||||||||||
Non-cash transactions from investing and financing activities: | |||||||||||||||||
Right-of-use assets obtained in exchange for lease obligations | $ | 54 | $ | 93 | |||||||||||||
Transfer of assets to reinsurer | $ | — | $ | (9,023) | |||||||||||||
Description | Effective Date and Method of Adoption | Effect on the Financial Statement or Other Significant Matters | ||||||
ASU 2018-12: Financial Services - Insurance (Topic 944); ASU 2020-11: Financial Services - Insurance (Topic 944): Effective Date and Early Application | ||||||||
This ASU provides targeted improvements to existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The ASU primarily impacts four key areas, including: 1. Measurement of the liability for future policy benefits for traditional and limited payment contracts. The ASU requires companies to review, and if necessary, update cash flow assumptions at least annually for non-participating traditional and limited-payment insurance contracts. The ASU also prescribes the discount rate to be used in measuring the liability for future policy benefits for traditional and limited payment long-duration contracts. 2. Measurement of MRBs. MRBs, as defined under the ASU, will encompass certain GMxB features associated with variable annuity products and other general account annuities with other than nominal market risk. 3. Amortization of deferred acquisition costs. The ASU simplifies the amortization of deferred acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins, requiring such balances to be amortized on a constant level basis over the expected term of the contracts. 4. Expanded footnote disclosures. The ASU requires additional disclosures including information about significant inputs, judgements, assumptions and methods used in measurement. | In November 2020, the FASB issued ASU 2020-11 which deferred the effective date of the amendments in ASU 2018-12 for all insurance entities. ASU 2018-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is allowed. For the liability for future policyholder benefits for traditional and limited payment contracts, companies can elect one of two adoption methods. Companies can either elect a modified retrospective transition method applied to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or a full retrospective transition method using actual historical experience information as of contract inception. The same adoption method must be used for deferred policy acquisition costs. For MRBs, the ASU should be applied retrospectively as of the beginning of the earliest period presented. | The Company continues to progress with implementation efforts and the evaluation of the impact that adoption of this guidance will have on the Company’s consolidated financial statements. Due to its extensive nature, the adoption of the ASU is expected to have a significant impact on the Company’s consolidated financial statements, as well as systems, processes and controls. Effective January 1, 2023, the new guidance will be adopted using the modified retrospective approach, except for MRBs which will use the full retrospective approach. The Company has created a governance framework and implementation plan to ensure timely adoption of the guidance. In preparation for implementation, the Company continues to refine key accounting policy decisions, modernize processes and update internal controls. These changes include modifications of actuarial valuation systems, data sourcing, analytical procedures and reporting processes. The impact on total equity of applying this ASU is estimated to be neutral to the current amount of reported total equity as of September 30, 2022. As of September 30, 2022, a positive impact to AOCI is expected due to increases in the Company’s estimate of its non-performance risk on variable annuity guarantees accounted for as MRBs for the first time under the guidance. The estimated impact to the retained earnings element of total equity as of September 30, 2022, due to accounting for variable annuity guarantees as MRBs that are not currently measured at fair value, is mitigated by the Company’s present use of a near industry low interest rate assumption of 2.25% on GMIB business. Because movements in equity markets, interest rates and credit spreads are unpredictable and at times volatile, it is possible that the estimated effects of adoption could change materially between September 30, 2022 and January 1, 2023. | ||||||
Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||||||
Corporate (1) | $ | 52,643 | $ | 22 | $ | 69 | $ | 8,144 | $ | 44,546 | |||||||||||||||||||
U.S. Treasury, government and agency | 7,241 | — | 4 | 1,215 | 6,030 | ||||||||||||||||||||||||
States and political subdivisions | 668 | — | 8 | 92 | 584 | ||||||||||||||||||||||||
Foreign governments | 1,114 | — | 2 | 190 | 926 | ||||||||||||||||||||||||
Residential mortgage-backed (2) | 500 | — | 1 | 25 | 476 | ||||||||||||||||||||||||
Asset-backed (3) | 9,289 | — | 1 | 545 | 8,745 | ||||||||||||||||||||||||
Commercial mortgage-backed | 3,824 | — | — | 574 | 3,250 | ||||||||||||||||||||||||
Redeemable preferred stock | 41 | — | 2 | — | 43 | ||||||||||||||||||||||||
Total at September 30, 2022 | $ | 75,320 | $ | 22 | $ | 87 | $ | 10,785 | $ | 64,600 | |||||||||||||||||||
December 31, 2021: | |||||||||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||||||
Corporate (1) | $ | 50,172 | $ | 22 | $ | 2,601 | $ | 240 | $ | 52,511 | |||||||||||||||||||
U.S. Treasury, government and agency | 13,056 | — | 2,344 | 15 | 15,385 | ||||||||||||||||||||||||
States and political subdivisions | 586 | — | 78 | 2 | 662 | ||||||||||||||||||||||||
Foreign governments | 1,124 | — | 42 | 14 | 1,152 | ||||||||||||||||||||||||
Residential mortgage-backed (2) | 90 | — | 8 | — | 98 | ||||||||||||||||||||||||
Asset-backed (3) | 5,933 | — | 21 | 20 | 5,934 | ||||||||||||||||||||||||
Commercial mortgage-backed | 2,427 | — | 19 | 25 | 2,421 |
Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Redeemable preferred stock | 41 | — | 12 | — | 53 | ||||||||||||||||||||||||
Total at December 31, 2021 | $ | 73,429 | $ | 22 | $ | 5,125 | $ | 316 | $ | 78,216 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI (3) | |||||||||||||||
(in millions) | |||||||||||||||||||
March 31, 2018: | |||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||
Public corporate | $ | 18,513 | $ | 501 | $ | 298 | $ | 18,716 | $ | — | |||||||||
Private corporate | 7,394 | 117 | 107 | 7,404 | — | ||||||||||||||
U.S. Treasury, government and agency | 14,772 | 387 | 506 | 14,653 | — | ||||||||||||||
States and political subdivisions | 422 | 56 | 1 | 477 | — | ||||||||||||||
Foreign governments | 405 | 23 | 9 | 419 | — | ||||||||||||||
Residential mortgage-backed(1) | 614 | 16 | 3 | 627 | — | ||||||||||||||
Asset-backed(2) | 675 | 4 | 4 | 675 | 2 | ||||||||||||||
Redeemable preferred stock | 473 | 44 | 4 | 513 | — | ||||||||||||||
Total at March 31, 2018 | $ | 43,268 | $ | 1,148 | $ | 932 | $ | 43,484 | $ | 2 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI in AOCI (3) | |||||||||||||||
(in millions) | |||||||||||||||||||
December 31, 2017: | |||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||
Public corporate | $ | 17,181 | $ | 806 | $ | 33 | $ | 17,954 | $ | — | |||||||||
Private corporate | 7,299 | 225 | 32 | 7,492 | — | ||||||||||||||
U.S. Treasury, government and agency | 17,759 | 1,000 | 251 | 18,508 | — | ||||||||||||||
States and political subdivisions | 422 | 67 | — | 489 | — | ||||||||||||||
Foreign governments | 395 | 29 | 5 | 419 | — | ||||||||||||||
Residential mortgage-backed(1) | 797 | 22 | 1 | 818 | — | ||||||||||||||
Asset-backed(2) | 745 | 5 | 1 | 749 | 2 | ||||||||||||||
Redeemable preferred stock | 470 | 43 | 1 | 512 | — | ||||||||||||||
Total Fixed Maturities | 45,068 | 2,197 | 324 | 46,941 | 2 | ||||||||||||||
Equity securities | 188 | 2 | — | 190 | — | ||||||||||||||
Total at December 31, 2017 | $ | 45,256 | $ | 2,199 | $ | 324 | $ | 47,131 | $ | 2 |
Amortized Cost (Less Allowance for Credit Losses) | Fair Value | ||||||||||
(in millions) | |||||||||||
September 30, 2022 | |||||||||||
Contractual maturities: | |||||||||||
Due in one year or less | $ | 1,419 | $ | 1,397 | |||||||
Due in years two through five | 14,893 | 14,033 | |||||||||
Due in years six through ten | 18,743 | 16,531 | |||||||||
Due after ten years | 26,589 | 20,125 | |||||||||
Subtotal | 61,644 | 52,086 | |||||||||
Residential mortgage-backed | 500 | 476 | |||||||||
Asset-backed | 9,289 | 8,745 | |||||||||
Commercial mortgage-backed | 3,824 | 3,250 | |||||||||
Redeemable preferred stock | 41 | 43 | |||||||||
Total at September 30, 2022 | $ | 75,298 | $ | 64,600 |
Amortized Cost | Fair Value | ||||||
(in millions) | |||||||
Due in one year or less | $ | 2,499 | $ | 2,517 | |||
Due in years two through five | 8,727 | 8,862 | |||||
Due in years six through ten | 13,290 | 13,114 | |||||
Due after ten years | 16,990 | 17,176 | |||||
Subtotal | 41,506 | 41,669 | |||||
Residential mortgage-backed securities | 614 | 627 | |||||
Asset-backed securities | 675 | 675 | |||||
Redeemable preferred stock | 473 | 513 | |||||
Total | $ | 43,268 | $ | 43,484 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Proceeds from sales | $ | 3,880 | $ | 440 | |||
Gross gains on sales | $ | 155 | $ | 25 | |||
Gross losses on sales | $ | (52 | ) | $ | (23 | ) | |
Total OTTI | $ | — | $ | — | |||
Non-credit losses recognized in OCI | — | — | |||||
Credit losses recognized in net income (loss) | $ | — | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Proceeds from sales | $ | 905 | $ | 3,701 | $ | 11,640 | $ | 20,776 | |||||||||||||||
Gross gains on sales | $ | — | $ | 171 | $ | 44 | $ | 1,019 | |||||||||||||||
Gross losses on sales | $ | (62) | $ | (8) | $ | (653) | $ | (162) | |||||||||||||||
Net change in Allowance for Credit and Intent to Sell losses | $ | (243) | $ | (2) | $ | (246) | $ | (14) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Balances, beginning of period | $ | (18 | ) | $ | (239 | ) | |
Previously recognized impairments on securities that matured, paid, prepaid or sold | — | 55 | |||||
Recognized impairments on securities impaired to fair value this period(1) | — | — | |||||
Impairments recognized this period on securities not previously impaired | — | — | |||||
Additional impairments this period on securities previously impaired | — | — | |||||
Increases due to passage of time on previously recorded credit losses | — | — | |||||
Accretion of previously recognized impairments due to increases in expected cash flows | — | — | |||||
Balances at March 31, | $ | (18 | ) | $ | (184 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance, beginning of period | $ | 32 | $ | 42 | $ | 44 | $ | 32 | |||||||||||||||
Previously recognized impairments on securities that matured, paid, prepaid or sold | (2) | (1) | (17) | (4) | |||||||||||||||||||
Recognized impairments on securities impaired to fair value this period (1) (2) | 246 | — | 246 | — | |||||||||||||||||||
Credit losses recognized this period on securities for which credit losses were not previously recognized | (1) | — | — | 8 | |||||||||||||||||||
Additional credit losses this period on securities previously impaired | 5 | 1 | 7 | 6 | |||||||||||||||||||
Increases due to passage of time on previously recorded credit losses | — | — | — | — | |||||||||||||||||||
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior) | — | — | — | — | |||||||||||||||||||
Balance at September 30, | $ | 280 | $ | 42 | $ | 280 | $ | 42 |
______________ (1)Represents circumstances where the Company determined in |
March 31, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
AFS Securities: | |||||||
Fixed maturities: | |||||||
With OTTI loss | $ | — | $ | 2 | |||
All other | 216 | 1,871 | |||||
Equity securities | — | 2 | |||||
Net Unrealized Gains (Losses) | $ | 216 | $ | 1,875 |
Net Unrealized Gains (Losses) on Investments | DAC | Policyholders’ Liabilities | Deferred Income Tax Asset (Liability) | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance, July 1, 2022 | $ | (6,965) | $ | 1,180 | $ | (333) | $ | 1,285 | $ | (4,833) | |||||||||||||||||||
Net investment gains (losses) arising during the period | (4,045) | — | — | — | (4,045) | ||||||||||||||||||||||||
Reclassification adjustment: | |||||||||||||||||||||||||||||
Included in net income (loss) | 311 | — | — | — | 311 | ||||||||||||||||||||||||
Excluded from net income (loss) | — | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||
Impact of net unrealized investment gains (losses) | — | 593 | 3 | 659 | 1,255 | ||||||||||||||||||||||||
Net unrealized investment gains (losses) excluding credit losses | (10,699) | 1,773 | (330) | 1,944 | (7,312) | ||||||||||||||||||||||||
Net unrealized investment gains (losses) with credit losses | 1 | — | — | — | 1 | ||||||||||||||||||||||||
Balance, September 30, 2022 | $ | (10,698) | $ | 1,773 | $ | (330) | $ | 1,944 | $ | (7,311) | |||||||||||||||||||
Balance, July 1, 2021 | $ | 5,361 | $ | (1,165) | $ | (414) | $ | (794) | $ | 2,988 | |||||||||||||||||||
Net investment gains (losses) arising during the period | (395) | — | — | — | (395) | ||||||||||||||||||||||||
Reclassification adjustment: | |||||||||||||||||||||||||||||
Included in net income (loss) | (165) | — | — | — | (165) | ||||||||||||||||||||||||
Other (1) | — | — | — | — | — | ||||||||||||||||||||||||
Impact of net unrealized investment gains (losses) | — | 377 | 33 | 31 | 441 | ||||||||||||||||||||||||
Net unrealized investment gains (losses) excluding credit losses | 4,801 | (788) | (381) | (763) | 2,869 | ||||||||||||||||||||||||
Net unrealized investment gains (losses) with credit losses | (1) | — | — | — | (1) | ||||||||||||||||||||||||
Balance, Balance, September 30, 2021 | $ | 4,800 | $ | (788) | $ | (381) | $ | (763) | $ | 2,868 | |||||||||||||||||||
Net Unrealized Gains (Losses) on Investments | DAC | Policyholders’ Liabilities | Deferred Income Tax Asset (Liability) | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 4,809 | $ | (782) | $ | (418) | $ | (757) | $ | 2,852 | |||||||||||||||||||
Net investment gains (losses) arising during the period | (16,359) | — | — | — | (16,359) | ||||||||||||||||||||||||
Reclassification adjustment: | |||||||||||||||||||||||||||||
Included in net income (loss) | 859 | — | — | — | 859 | ||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||
Impact of net unrealized investment gains (losses) | — | 2,554 | 88 | 2,699 | 5,341 | ||||||||||||||||||||||||
Net unrealized investment gains (losses) excluding credit losses | (10,691) | 1,772 | (330) | 1,942 | (7,307) |
Net Unrealized Gains (Losses) on Investments | DAC | Policyholders’ Liabilities | Deferred Income Tax Asset (Liability) | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||||||||||
(in millions) | |||||||||||||||||||
Balance, January 1, 2018 | $ | 2 | $ | — | $ | (1 | ) | $ | (7 | ) | $ | (6 | ) | ||||||
Net investment gains (losses) arising during the period | — | — | — | — | — | ||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||
Included in Net income (loss) | (2 | ) | — | — | — | (2 | ) | ||||||||||||
Excluded from Net income (loss)(1) | — | — | — | — | — | ||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||
DAC | — | — | — | — | — | ||||||||||||||
Deferred income taxes | — | — | — | 7 | 7 | ||||||||||||||
Policyholders’ liabilities | — | — | 1 | — | 1 | ||||||||||||||
Balance, March 31, 2018 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Balance, January 1, 2017 | $ | 19 | $ | 1 | $ | (10 | ) | $ | (4 | ) | $ | 6 | |||||||
Net investment gains (losses) arising during the period | 63 | — | — | — | 63 | ||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||
Included in Net income (loss) | (65 | ) | — | — | — | (65 | ) | ||||||||||||
Excluded from Net income (loss)(1) | — | — | — | — | — | ||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||
DAC | — | (4 | ) | — | — | (4 | ) | ||||||||||||
Deferred income taxes | — | — | — | — | — | ||||||||||||||
Policyholders’ liabilities | — | — | 6 | — | 6 | ||||||||||||||
Balance, March 31, 2017 | $ | 17 | $ | (3 | ) | $ | (4 | ) | $ | (4 | ) | $ | 6 |
Net unrealized investment gains (losses) with credit losses | (7) | 1 | — | 2 | (4) | ||||||||||||||||||||||||
Balance, September 30, 2022 | $ | (10,698) | $ | 1,773 | $ | (330) | $ | 1,944 | $ | (7,311) | |||||||||||||||||||
Balance, January 1, 2021 | $ | 8,811 | $ | (1,548) | $ | (1,065) | $ | (1,302) | $ | 4,896 | |||||||||||||||||||
Net investment gains (losses) arising during the period | (3,231) | — | — | — | (3,231) | ||||||||||||||||||||||||
Reclassification adjustment: | |||||||||||||||||||||||||||||
Included in net income (loss) | (747) | — | — | — | (747) | ||||||||||||||||||||||||
Other (1) | (33) | — | — | — | (33) | ||||||||||||||||||||||||
Impact of net unrealized investment gains (losses) | — | 761 | 685 | 539 | 1,985 | ||||||||||||||||||||||||
Net unrealized investment gains (losses) excluding credit losses | 4,800 | (787) | (380) | (763) | 2,870 | ||||||||||||||||||||||||
Net unrealized investment gains (losses) with credit losses | — | (1) | (1) | — | (2) | ||||||||||||||||||||||||
Balance, September 30, 2021 | $ | 4,800 | $ | (788) | $ | (381) | $ | (763) | $ | 2,868 | |||||||||||||||||||
Net Unrealized Gains (Losses) on Investments | DAC | Policyholders’ Liabilities | Deferred Income Tax Asset (Liability) | AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||||||||||
(in millions) | |||||||||||||||||||
Balance, January 1, 2018 | $ | 1,871 | $ | (358 | ) | $ | (238 | ) | $ | (383 | ) | $ | 892 | ||||||
Net investment gains (losses) arising during the period | (109 | ) | — | — | — | (109 | ) | ||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||
Included in Net income (loss) | (1,546 | ) | — | — | — | (1,546 | ) | ||||||||||||
Excluded from Net income (loss)(1) | — | — | — | — | — | ||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||
DAC | — | 341 | — | — | 341 | ||||||||||||||
Deferred income taxes | — | — | — | 239 | 239 | ||||||||||||||
Policyholders’ liabilities | — | — | 110 | — | 110 | ||||||||||||||
Balance, March 31, 2018 | $ | 216 | $ | (17 | ) | $ | (128 | ) | $ | (144 | ) | $ | (73 | ) | |||||
Balance, January 1, 2017 | $ | 528 | $ | (45 | ) | $ | (192 | ) | $ | (95 | ) | $ | 196 | ||||||
Net investment gains (losses) arising during the period | 176 | — | — | — | 176 | ||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||
Included in Net income (loss) | 29 | — | — | — | 29 | ||||||||||||||
Excluded from Net income (loss)(1) | — | — | — | — | |||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||
DAC | — | (68 | ) | — | — | (68 | ) | ||||||||||||
Deferred income taxes | — | — | — | (60 | ) | (60 | ) | ||||||||||||
Policyholders’ liabilities | — | — | 14 | — | 14 | ||||||||||||||
Balance, March 31, 2017 | $ | 733 | $ | (113 | ) | $ | (178 | ) | $ | (155 | ) | $ | 287 |
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||||||||||||
Corporate | $ | 33,987 | $ | 6,565 | $ | 6,312 | $ | 1,577 | $ | 40,299 | $ | 8,142 | |||||||||||||||||||||||
U.S. Treasury, government and agency | 5,536 | 1,196 | 201 | 19 | 5,737 | 1,215 | |||||||||||||||||||||||||||||
States and political subdivisions | 339 | 84 | 14 | 8 | 353 | 92 | |||||||||||||||||||||||||||||
Foreign governments | 605 | 138 | 167 | 52 | 772 | 190 | |||||||||||||||||||||||||||||
Residential mortgage-backed | 438 | 25 | 1 | — | 439 | 25 | |||||||||||||||||||||||||||||
Asset-backed | 8,072 | 503 | 440 | 42 | 8,512 | 545 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,435 | 382 | 813 | 192 | 3,248 | 574 | |||||||||||||||||||||||||||||
Total at September 30, 2022 | $ | 51,412 | $ | 8,893 | $ | 7,948 | $ | 1,890 | $ | 59,360 | $ | 10,783 | |||||||||||||||||||||||
December 31, 2021: | |||||||||||||||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||||||||||||
Corporate | $ | 10,571 | $ | 163 | $ | 1,633 | $ | 75 | $ | 12,204 | $ | 238 | |||||||||||||||||||||||
U.S. Treasury, government and agency | 993 | 11 | 105 | 4 | 1,098 | 15 | |||||||||||||||||||||||||||||
States and political subdivisions | 120 | 2 | 11 | — | 131 | 2 | |||||||||||||||||||||||||||||
Foreign governments | 349 | 6 | 92 | 8 | 441 | 14 | |||||||||||||||||||||||||||||
Residential mortgage-backed | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Asset-backed | 3,865 | 20 | 38 | — | 3,903 | 20 | |||||||||||||||||||||||||||||
Commercial mortgage-backed | 1,527 | 21 | 96 | 4 | 1,623 | 25 | |||||||||||||||||||||||||||||
Total at December 31, 2021 | $ | 17,425 | $ | 223 | $ | 1,975 | $ | 91 | $ | 19,400 | $ | 314 |
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
March 31, 2018: | |||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||
Public corporate | $ | 8,539 | $ | 263 | $ | 605 | $ | 35 | $ | 9,144 | $ | 298 | |||||||||||
Private corporate | 2,457 | 63 | 660 | 44 | 3,117 | 107 | |||||||||||||||||
U.S. Treasury, government and agency | 3,129 | 81 | 4,325 | 425 | 7,454 | 506 | |||||||||||||||||
States and political subdivisions | 19 | 1 | — | — | 19 | 1 | |||||||||||||||||
Foreign governments | 57 | 2 | 70 | 7 | 127 | 9 | |||||||||||||||||
Residential mortgage-backed | 145 | 2 | 76 | 1 | 221 | 3 | |||||||||||||||||
Asset-backed | 81 | 4 | 1 | — | 82 | 4 | |||||||||||||||||
Redeemable preferred stock | 116 | 2 | 12 | 2 | 128 | 4 | |||||||||||||||||
Total | $ | 14,543 | $ | 418 | $ | 5,749 | $ | 514 | $ | 20,292 | $ | 932 | |||||||||||
December 31, 2017: | |||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||
Public corporate | $ | 2,123 | $ | 15 | $ | 690 | $ | 18 | $ | 2,813 | $ | 33 | |||||||||||
Private corporate | 780 | 8 | 641 | 24 | 1,421 | 32 | |||||||||||||||||
U.S. Treasury, government and agency | 2,718 | 6 | 4,506 | 245 | 7,224 | 251 | |||||||||||||||||
States and political subdivisions | 20 | — | — | — | 20 | — | |||||||||||||||||
Foreign governments | 11 | — | 73 | 5 | 84 | 5 | |||||||||||||||||
Residential mortgage-backed | 62 | — | 76 | 1 | 138 | 1 | |||||||||||||||||
Asset-backed | 15 | 1 | 12 | — | 27 | 1 | |||||||||||||||||
Redeemable preferred stock | 10 | — | 13 | 1 | 23 | 1 | |||||||||||||||||
Total | $ | 5,739 | $ | 30 | $ | 6,011 | $ | 294 | $ | 11,750 | $ | 324 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ | (121 | ) | $ | 87 | ||
Net investment gains (losses) recognized on securities sold during the period | 1 | 4 | |||||
Unrealized and realized gains (losses) on trading securities arising during the period | (120 | ) | 91 | ||||
Interest and dividend income from trading securities | 76 | 63 | |||||
Net investment income (loss) from trading securities | $ | (44 | ) | $ | 154 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Allowance for credit losses: | |||||||
Beginning balance, January 1, | $ | 8 | $ | 8 | |||
Charge-offs | — | — | |||||
Recoveries | (1 | ) | — | ||||
Provision | — | — | |||||
Ending balance, March 31, | $ | 7 | $ | 8 | |||
March 31, Individually Evaluated for Impairment | $ | 7 | $ | 8 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Allowance for credit losses on mortgage loans: | ||||||||||||||||||||||||||
Commercial mortgages: | ||||||||||||||||||||||||||
Balance, beginning of period | $ | 58 | $ | 59 | $ | 57 | $ | 77 | ||||||||||||||||||
Current-period provision for expected credit losses | 19 | 1 | 20 | (17) | ||||||||||||||||||||||
Write-offs charged against the allowance | — | — | — | — | ||||||||||||||||||||||
Recoveries of amounts previously written off | — | — | — | — | ||||||||||||||||||||||
Net change in allowance | 19 | 1 | 20 | (17) | ||||||||||||||||||||||
Balance, end of period | $ | 77 | $ | 60 | $ | 77 | $ | 60 | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Agricultural mortgages: | ||||||||||||||||||||||||||
Balance, beginning of period | $ | 6 | $ | 4 | $ | 5 | $ | 4 | ||||||||||||||||||
Current-period provision for expected credit losses | — | — | 1 | — | ||||||||||||||||||||||
Write-offs charged against the allowance | — | — | — | — | ||||||||||||||||||||||
Recoveries of amounts previously written off | — | — | — | — | ||||||||||||||||||||||
Net change in allowance | — | — | 1 | — | ||||||||||||||||||||||
Balance, end of period | $ | 6 | $ | 4 | $ | 6 | $ | 4 | ||||||||||||||||||
Total allowance for credit losses | $ | 83 | $ | 64 | $ | 83 | $ | 64 |
September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 488 | $ | 130 | $ | — | $ | — | $ | 119 | $ | 1,469 | $ | — | $ | — | $ | 2,206 | |||||||||||||||||||||||||||||||||||
50% - 70% | 1,780 | 1,857 | 1,255 | 275 | 733 | 2,597 | 273 | — | 8,770 | ||||||||||||||||||||||||||||||||||||||||||||
70% - 90% | 136 | 124 | 115 | 368 | 315 | 898 | — | 33 | 1,989 | ||||||||||||||||||||||||||||||||||||||||||||
90% plus | — | — | — | — | 35 | 174 | — | — | 209 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | 2,404 | $ | 2,111 | $ | 1,370 | $ | 643 | $ | 1,202 | $ | 5,138 | $ | 273 | $ | 33 | $ | 13,174 | |||||||||||||||||||||||||||||||||||
Agricultural: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 121 | $ | 190 | $ | 214 | $ | 123 | $ | 135 | $ | 754 | $ | — | $ | — | $ | 1,537 | |||||||||||||||||||||||||||||||||||
50% - 70% | 182 | 179 | 238 | 86 | 82 | 277 | — | — | 1,044 | ||||||||||||||||||||||||||||||||||||||||||||
70% - 90% | 1 | — | — | — | — | 15 | — | — | 16 | ||||||||||||||||||||||||||||||||||||||||||||
90% plus | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total agricultural | $ | 304 | $ | 369 | $ | 452 | $ | 209 | $ | 217 | $ | 1,046 | $ | — | $ | — | $ | 2,597 | |||||||||||||||||||||||||||||||||||
Total mortgage loans: |
September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 609 | $ | 320 | $ | 214 | $ | 123 | $ | 254 | $ | 2,223 | $ | — | $ | — | $ | 3,743 | |||||||||||||||||||||||||||||||||||
50% - 70% | 1,962 | 2,036 | 1,493 | 361 | 815 | 2,874 | 273 | — | 9,814 | ||||||||||||||||||||||||||||||||||||||||||||
70% - 90% | 137 | 124 | 115 | 368 | 315 | 913 | — | 33 | 2,005 | ||||||||||||||||||||||||||||||||||||||||||||
90% plus | — | — | — | — | 35 | 174 | — | — | 209 | ||||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 2,708 | $ | 2,480 | $ | 1,822 | $ | 852 | $ | 1,419 | $ | 6,184 | $ | 273 | $ | 33 | $ | 15,771 |
September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 2.0x | $ | 605 | $ | 1,143 | $ | 1,078 | $ | 103 | $ | 571 | $ | 1,863 | $ | — | $ | — | $ | 5,363 | |||||||||||||||||||||||||||||||||||
1.8x to 2.0x | 135 | 187 | 165 | 216 | 186 | 421 | 161 | — | 1,471 | ||||||||||||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 413 | 274 | 32 | 177 | 250 | 1,173 | 75 | — | 2,394 | ||||||||||||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 614 | 259 | 60 | 92 | 47 | 1,376 | — | — | 2,448 | ||||||||||||||||||||||||||||||||||||||||||||
1.0x to 1.2x | 222 | 248 | 35 | 55 | 148 | 234 | 37 | 33 | 1,012 | ||||||||||||||||||||||||||||||||||||||||||||
Less than 1.0x | 415 | — | — | — | — | 71 | — | — | 486 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | 2,404 | $ | 2,111 | $ | 1,370 | $ | 643 | $ | 1,202 | $ | 5,138 | $ | 273 | $ | 33 | $ | 13,174 | |||||||||||||||||||||||||||||||||||
Agricultural: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 2.0x | $ | 48 | $ | 40 | $ | 62 | $ | 22 | $ | 12 | $ | 195 | $ | — | $ | — | $ | 379 | |||||||||||||||||||||||||||||||||||
1.8x to 2.0x | 17 | 58 | 35 | 24 | 14 | 63 | — | — | 211 | ||||||||||||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 48 | 42 | 112 | 28 | 19 | 202 | — | — | 451 | ||||||||||||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 89 | 154 | 174 | 99 | 100 | 313 | — | — | 929 | ||||||||||||||||||||||||||||||||||||||||||||
1.0x to 1.2x | 86 | 74 | 65 | 30 | 66 | 260 | — | — | 581 | ||||||||||||||||||||||||||||||||||||||||||||
Less than 1.0x | 16 | 1 | 4 | 6 | 6 | 13 | — | — | 46 | ||||||||||||||||||||||||||||||||||||||||||||
Total agricultural | $ | 304 | $ | 369 | $ | 452 | $ | 209 | $ | 217 | $ | 1,046 | $ | — | $ | — | $ | 2,597 | |||||||||||||||||||||||||||||||||||
Total mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 2.0x | $ | 653 | $ | 1,183 | $ | 1,140 | $ | 125 | $ | 583 | $ | 2,058 | $ | — | $ | — | $ | 5,742 | |||||||||||||||||||||||||||||||||||
1.8x to 2.0x | 152 | 245 | 200 | 240 | 200 | 484 | 161 | — | 1,682 | ||||||||||||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 461 | 316 | 144 | 205 | 269 | 1,375 | 75 | — | 2,845 | ||||||||||||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 703 | 413 | 234 | 191 | 147 | 1,689 | — | — | 3,377 | ||||||||||||||||||||||||||||||||||||||||||||
1.0x to 1.2x | 308 | 322 | 100 | 85 | 214 | 494 | 37 | 33 | 1,593 |
Less than 1.0x | 431 | 1 | 4 | 6 | 6 | 84 | — | — | 532 | ||||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 2,708 | $ | 2,480 | $ | 1,822 | $ | 852 | $ | 1,419 | $ | 6,184 | $ | 273 | $ | 33 | $ | 15,771 |
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | — | $ | — | $ | — | $ | 184 | $ | 293 | $ | 1,009 | $ | — | $ | — | $ | 1,486 | |||||||||||||||||||||||||||||||||||
50% - 70% | 1,944 | 1,286 | 339 | 619 | 491 | 2,533 | 139 | — | 7,351 | ||||||||||||||||||||||||||||||||||||||||||||
70% - 90% | 190 | 236 | 412 | 415 | 276 | 972 | — | — | 2,501 | ||||||||||||||||||||||||||||||||||||||||||||
90% plus | — | — | — | 35 | 5 | 73 | — | — | 113 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | 2,134 | $ | 1,522 | $ | 751 | $ | 1,253 | $ | 1,065 | $ | 4,587 | $ | 139 | $ | — | $ | 11,451 | |||||||||||||||||||||||||||||||||||
Agricultural: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 180 | $ | 212 | $ | 128 | $ | 129 | $ | 119 | $ | 738 | $ | — | $ | — | $ | 1,506 | |||||||||||||||||||||||||||||||||||
50% - 70% | 200 | 268 | 102 | 126 | 87 | 338 | — | — | 1,121 | ||||||||||||||||||||||||||||||||||||||||||||
70% - 90% | — | — | — | — | — | 17 | — | — | 17 | ||||||||||||||||||||||||||||||||||||||||||||
90% plus | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total agricultural | $ | 380 | $ | 480 | $ | 230 | $ | 255 | $ | 206 | $ | 1,093 | $ | — | $ | — | $ | 2,644 | |||||||||||||||||||||||||||||||||||
Total mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
0% - 50% | $ | 180 | $ | 212 | $ | 128 | $ | 313 | $ | 412 | $ | 1,747 | $ | — | $ | — | $ | 2,992 | |||||||||||||||||||||||||||||||||||
50% - 70% | 2,144 | 1,554 | 441 | 745 | 578 | 2,871 | 139 | — | 8,472 | ||||||||||||||||||||||||||||||||||||||||||||
70% - 90% | 190 | 236 | 412 | 415 | 276 | 989 | — | — | 2,518 | ||||||||||||||||||||||||||||||||||||||||||||
90% plus | — | — | — | 35 | 5 | 73 | — | — | 113 | ||||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 2,514 | $ | 2,002 | $ | 981 | $ | 1,508 | $ | 1,271 | $ | 5,680 | $ | 139 | $ | — | $ | 14,095 |
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost Basis by Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term Loans Amortized Cost Basis | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial: |
Greater than 2.0x | $ | 1,143 | $ | 1,243 | $ | 210 | $ | 772 | $ | 485 | $ | 2,235 | $ | — | $ | — | $ | 6,088 | |||||||||||||||||||||||||||||||||||
1.8x to 2.0x | 185 | 135 | 182 | 46 | 161 | 372 | 68 | — | 1,149 | ||||||||||||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 275 | 49 | 284 | 211 | 166 | 919 | 48 | — | 1,952 | ||||||||||||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 264 | 95 | 75 | 101 | 253 | 701 | — | — | 1,489 | ||||||||||||||||||||||||||||||||||||||||||||
1.0x to 1.2x | 267 | — | — | 88 | — | 287 | 23 | — | 665 | ||||||||||||||||||||||||||||||||||||||||||||
Less than 1.0x | — | — | — | 35 | — | 73 | — | — | 108 | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial | $ | 2,134 | $ | 1,522 | $ | 751 | $ | 1,253 | $ | 1,065 | $ | 4,587 | $ | 139 | $ | — | $ | 11,451 | |||||||||||||||||||||||||||||||||||
Agricultural: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 2.0x | $ | 49 | $ | 64 | $ | 25 | $ | 22 | $ | 24 | $ | 210 | $ | — | $ | — | $ | 394 | |||||||||||||||||||||||||||||||||||
1.8x to 2.0x | 52 | 37 | 25 | 14 | 14 | 70 | — | — | 212 | ||||||||||||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 43 | 113 | 28 | 22 | 41 | 193 | — | — | 440 | ||||||||||||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 161 | 179 | 112 | 116 | 72 | 355 | — | — | 995 | ||||||||||||||||||||||||||||||||||||||||||||
1.0x to 1.2x | 75 | 83 | 31 | 77 | 54 | 226 | — | — | 546 | ||||||||||||||||||||||||||||||||||||||||||||
Less than 1.0x | — | 4 | 9 | 4 | 1 | 39 | — | — | 57 | ||||||||||||||||||||||||||||||||||||||||||||
Total agricultural | $ | 380 | $ | 480 | $ | 230 | $ | 255 | $ | 206 | $ | 1,093 | $ | — | $ | — | $ | 2,644 | |||||||||||||||||||||||||||||||||||
Total mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 2.0x | $ | 1,192 | $ | 1,307 | $ | 235 | $ | 794 | $ | 509 | $ | 2,445 | $ | — | $ | — | $ | 6,482 | |||||||||||||||||||||||||||||||||||
1.8x to 2.0x | 237 | 172 | 207 | 60 | 175 | 442 | 68 | — | 1,361 | ||||||||||||||||||||||||||||||||||||||||||||
1.5x to 1.8x | 318 | 162 | 312 | 233 | 207 | 1,112 | 48 | — | 2,392 | ||||||||||||||||||||||||||||||||||||||||||||
1.2x to 1.5x | 425 | 274 | 187 | 217 | 325 | 1,056 | — | — | 2,484 | ||||||||||||||||||||||||||||||||||||||||||||
1.0x to 1.2x | 342 | 83 | 31 | 165 | 54 | 513 | 23 | — | 1,211 | ||||||||||||||||||||||||||||||||||||||||||||
Less than 1.0x | — | 4 | 9 | 39 | 1 | 112 | — | — | 165 | ||||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 2,514 | $ | 2,002 | $ | 981 | $ | 1,508 | $ | 1,271 | $ | 5,680 | $ | 139 | $ | — | $ | 14,095 |
Debt Service Coverage Ratio(1) | |||||||||||||||||||||||||||
Loan-to-Value Ratio:(2) | Greater than 2.0x | 1.8x to 2.0x | 1.5x to 1.8x | 1.2x to 1.5x | 1.0x to 1.2x | Less than 1.0x | Total Mortgage Loans | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Commercial Mortgage Loans(1) | |||||||||||||||||||||||||||
0% - 50% | $ | 737 | $ | 21 | $ | 321 | $ | 73 | $ | — | $ | — | $ | 1,152 | |||||||||||||
50% - 70% | 4,477 | 643 | 1,122 | 399 | 178 | — | 6,819 | ||||||||||||||||||||
70% - 90% | 169 | 110 | 144 | 307 | 27 | — | 757 | ||||||||||||||||||||
90% plus | — | — | 27 | — | — | — | 27 | ||||||||||||||||||||
Total Commercial Mortgage Loans | $ | 5,383 | $ | 774 | $ | 1,614 | $ | 779 | $ | 205 | $ | — | $ | 8,755 | |||||||||||||
Agricultural Mortgage Loans(1) | |||||||||||||||||||||||||||
0% - 50% | $ | 275 | $ | 153 | $ | 276 | $ | 496 | $ | 321 | $ | 29 | $ | 1,550 | |||||||||||||
50% - 70% | 111 | 46 | 219 | 360 | 228 | 48 | 1,012 | ||||||||||||||||||||
70% - 90% | — | — | — | 23 | — | — | 23 | ||||||||||||||||||||
90% plus | — | — | — | — | — | — | — | ||||||||||||||||||||
Total Agricultural Mortgage Loans | $ | 386 | $ | 199 | $ | 495 | $ | 879 | $ | 549 | $ | 77 | $ | 2,585 | |||||||||||||
Total Mortgage Loans(1) | |||||||||||||||||||||||||||
0% - 50% | $ | 1,012 | $ | 174 | $ | 597 | $ | 569 | $ | 321 | $ | 29 | $ | 2,702 | |||||||||||||
50% - 70% | 4,588 | 689 | 1,341 | 759 | 406 | 48 | 7,831 | ||||||||||||||||||||
70% - 90% | 169 | 110 | 144 | 330 | 27 | — | 780 | ||||||||||||||||||||
90% plus | — | — | 27 | — | — | — | 27 | ||||||||||||||||||||
Total Mortgage Loans | $ | 5,769 | $ | 973 | $ | 2,109 | $ | 1,658 | $ | 754 | $ | 77 | $ | 11,340 |
Debt Service Coverage Ratio(1) | |||||||||||||||||||||||||||
Loan-to-Value Ratio:(2) | Greater than 2.0x | 1.8x to 2.0x | 1.5x to 1.8x | 1.2x to1.5x | 1.0x to 1.2x | Less than 1.0x | Total Mortgage Loans | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
Commercial Mortgage Loans(1) | |||||||||||||||||||||||||||
0% - 50% | $ | 759 | $ | — | $ | 320 | $ | 74 | $ | — | $ | — | $ | 1,153 | |||||||||||||
50% - 70% | 4,088 | 682 | 1,066 | 428 | 145 | — | 6,409 | ||||||||||||||||||||
70% - 90% | 169 | 110 | 196 | 272 | 50 | — | 797 | ||||||||||||||||||||
90% plus | — | — | 27 | — | — | — | 27 | ||||||||||||||||||||
Total Commercial Mortgage Loans | $ | 5,016 | $ | 792 | $ | 1,609 | $ | 774 | $ | 195 | $ | — | $ | 8,386 | |||||||||||||
Agricultural Mortgage Loans(1) | |||||||||||||||||||||||||||
0% - 50% | $ | 272 | $ | 149 | $ | 275 | $ | 515 | $ | 316 | $ | 30 | $ | 1,557 | |||||||||||||
50% - 70% | 111 | 46 | 227 | 359 | 221 | 49 | 1,013 | ||||||||||||||||||||
70% - 90% | — | — | — | 4 | — | — | 4 | ||||||||||||||||||||
90% plus | — | — | — | — | — | — | — | ||||||||||||||||||||
Total Agricultural Mortgage Loans | $ | 383 | $ | 195 | $ | 502 | $ | 878 | $ | 537 | $ | 79 | $ | 2,574 | |||||||||||||
Total Mortgage Loans(1) | |||||||||||||||||||||||||||
0% - 50% | $ | 1,031 | $ | 149 | $ | 595 | $ | 589 | $ | 316 | $ | 30 | $ | 2,710 | |||||||||||||
50% - 70% | 4,199 | 728 | 1,293 | 787 | 366 | 49 | 7,422 | ||||||||||||||||||||
70% - 90% | 169 | 110 | 196 | 276 | 50 | — | 801 | ||||||||||||||||||||
90% plus | — | — | 27 | — | — | — | 27 | ||||||||||||||||||||
Total Mortgage Loans | $ | 5,399 | $ | 987 | $ | 2,111 | $ | 1,652 | $ | 732 | $ | 79 | $ | 10,960 |
Accruing Loans | Non-accruing Loans | Total Loans | Non-accruing Loans with No Allowance | Interest Income on Non-accruing Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due | Current | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | 13,174 | $ | 13,174 | $ | — | $ | 13,174 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Agricultural | 12 | 7 | 19 | 38 | 2,543 | 2,581 | 16 | 2,597 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 12 | $ | 7 | $ | 19 | $ | 38 | $ | 15,717 | $ | 15,755 | $ | 16 | $ | 15,771 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days or > | Total | Current | Total Financing Receivables | Recorded Investment 90 Days or > and Accruing | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
March 31, 2018 | |||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 27 | $ | 27 | $ | 8,728 | $ | 8,755 | $ | — | |||||||||||||
Agricultural | 10 | 5 | 39 | 54 | 2,531 | 2,585 | 39 | ||||||||||||||||||||
Total Mortgage Loans | $ | 10 | $ | 5 | $ | 66 | $ | 81 | $ | 11,259 | $ | 11,340 | $ | 39 | |||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||
Commercial | $ | 27 | $ | — | $ | — | $ | 27 | $ | 8,359 | $ | 8,386 | $ | — | |||||||||||||
Agricultural | 49 | 3 | 22 | 74 | 2,500 | 2,574 | 22 | ||||||||||||||||||||
Total Mortgage Loans | $ | 76 | $ | 3 | $ | 22 | $ | 101 | $ | 10,859 | $ | 10,960 | $ | 22 |
December 31, 2021: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | 11,451 | $ | 11,451 | $ | — | $ | 11,451 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Agricultural | 1 | 1 | 25 | 27 | 2,601 | 2,628 | 16 | 2,644 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1 | $ | 1 | $ | 25 | $ | 27 | $ | 14,052 | $ | 14,079 | $ | 16 | $ | 14,095 | $ | — | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ | (33) | $ | (48) | $ | (143) | $ | (8) | ||||||||||||||||||
Net investment gains (losses) recognized on securities sold during the period | — | 43 | (11) | 47 | ||||||||||||||||||||||
Unrealized and realized gains (losses) on equity securities | $ | (33) | $ | (5) | $ | (154) | $ | 39 | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ | (44) | $ | (57) | $ | (246) | $ | (303) | |||||||||||||||||||||
Net investment gains (losses) recognized on securities sold during the period | — | 42 | 6 | 255 | |||||||||||||||||||||||||
Unrealized and realized gains (losses) on trading securities | (44) | (15) | (240) | (48) | |||||||||||||||||||||||||
Interest and dividend income from trading securities | 2 | 4 | 20 | 85 | |||||||||||||||||||||||||
Net investment income (loss) from trading securities | $ | (42) | $ | (11) | $ | (220) | $ | 37 |
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment(1) | Interest Income Recognized | |||||||||||||||
(in millions) | |||||||||||||||||||
March 31, 2018: | |||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Commercial mortgage loans - other | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Agricultural mortgage loans | — | — | — | — | — | ||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
With related allowance recorded: | |||||||||||||||||||
Commercial mortgage loans - other | $ | 27 | $ | 27 | $ | (7 | ) | $ | 27 | $ | — | ||||||||
Agricultural mortgage loans | — | — | — | — | — | ||||||||||||||
Total | $ | 27 | $ | 27 | $ | (7 | ) | $ | 27 | $ | — | ||||||||
December 31, 2017: | |||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Commercial mortgage loans - other | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Agricultural mortgage loans | — | — | — | — | — | ||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
With related allowance recorded: | |||||||||||||||||||
Commercial mortgage loans - other | $ | 27 | $ | 27 | $ | (8 | ) | $ | 27 | $ | 2 | ||||||||
Agricultural mortgage loans | — | — | — | — | — | ||||||||||||||
Total | $ | 27 | $ | 27 | $ | (8 | ) | $ | 27 | $ | 2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net investment gains (losses) recognized during the period on securities held at the end of the period | $ | (7) | $ | 9 | $ | (20) | $ | 7 | |||||||||||||||
Net investment gains (losses) recognized on securities sold during the period | (1) | 1 | 5 | 3 | |||||||||||||||||||
Unrealized and realized gains (losses) from fixed maturities | (8) | 10 | (15) | 10 | |||||||||||||||||||
Interest and dividend income from fixed maturities | 1 | 12 | — | 22 | |||||||||||||||||||
Net investment income (loss) from fixed maturities | $ | (7) | $ | 22 | $ | (15) | $ | 32 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||
Notional Amount | Derivative Assets | Derivative Liabilities | Notional Amount | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Derivatives: designated for hedge accounting (1) | |||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Currency swaps | $ | 1,267 | $ | 178 | $ | 118 | $ | 921 | $ | 7 | $ | 42 | |||||||||||||||||||||||||||||
Interest swaps | 955 | 1 | 252 | 955 | — | 395 | |||||||||||||||||||||||||||||||||||
Total: designated for hedge accounting | 2,222 | 179 | 370 | 1,876 | 7 | 437 | |||||||||||||||||||||||||||||||||||
Derivatives: not designated for hedge accounting (1) | |||||||||||||||||||||||||||||||||||||||||
Equity contracts: | |||||||||||||||||||||||||||||||||||||||||
Futures | 4,022 | 8 | — | 2,640 | — | 1 | |||||||||||||||||||||||||||||||||||
Swaps | 9,814 | 28 | 13 | 13,378 | 6 | 4 | |||||||||||||||||||||||||||||||||||
Options | 36,788 | 6,209 | 3,899 | 48,489 | 12,024 | 5,065 | |||||||||||||||||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||||||||||||||
Futures | 5,612 | — | — | 12,575 | — | — | |||||||||||||||||||||||||||||||||||
Swaps | 1,134 | — | 134 | 1,889 | — | 46 | |||||||||||||||||||||||||||||||||||
Swaptions | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Credit contracts: | |||||||||||||||||||||||||||||||||||||||||
Credit default swaps | 315 | 20 | 8 | 774 | 9 | 10 | |||||||||||||||||||||||||||||||||||
Currency contracts | |||||||||||||||||||||||||||||||||||||||||
Currency swaps | 326 | 24 | — | 541 | 1 | — | |||||||||||||||||||||||||||||||||||
Currency forwards | 60 | 20 | 20 | 79 | 8 | 7 | |||||||||||||||||||||||||||||||||||
Other freestanding contracts: | |||||||||||||||||||||||||||||||||||||||||
Margin | — | 116 | — | — | 125 | — | |||||||||||||||||||||||||||||||||||
Collateral | — | 140 | 3,323 | — | 178 | 6,160 | |||||||||||||||||||||||||||||||||||
Total: not designated for hedge accounting | 58,071 | 6,565 | 7,397 | 80,365 | 12,351 | 11,293 | |||||||||||||||||||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||||||||||||||||||||
Amounts due from reinsurers (5) | — | 4,312 | — | — | 5,813 | — | |||||||||||||||||||||||||||||||||||
GMIB reinsurance contracts (2) | — | 1,289 | — | — | 1,848 | — | |||||||||||||||||||||||||||||||||||
GMxB derivative features liability (3) | — | — | 5,825 | — | — | 8,525 | |||||||||||||||||||||||||||||||||||
SCS, SIO, MSO and IUL indexed features (4) | — | — | 2,086 | — | — | 6,773 | |||||||||||||||||||||||||||||||||||
Total embedded derivatives | — | 5,601 | 7,911 | — | 7,661 | 15,298 | |||||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 60,293 | $ | 12,345 | $ | 15,678 | $ | 82,241 | $ | 20,019 | $ | 27,028 |
At March 31, 2018 | Gains (Losses) Reported In Net Income (Loss) Three Months Ended March 31, 2018 | ||||||||||||||
Fair Value | |||||||||||||||
Notional Amount | Asset Derivatives | Liability Derivatives | |||||||||||||
(in millions) | |||||||||||||||
Freestanding derivatives: | |||||||||||||||
Equity contracts:(1) | |||||||||||||||
Futures | $ | 6,629 | $ | 2 | $ | 1 | $ | (23 | ) | ||||||
Swaps | 8,017 | 255 | 16 | 114 | |||||||||||
Options | 23,013 | 3,350 | 1,411 | (18 | ) | ||||||||||
Interest rate contracts:(1) | |||||||||||||||
Swaps | 29,331 | 555 | 395 | (671 | ) | ||||||||||
Futures | 24,015 | — | — | 40 | |||||||||||
Credit contracts:(1) | |||||||||||||||
Credit default swaps | 2,136 | 32 | 3 | — | |||||||||||
Other freestanding contracts:(1) | |||||||||||||||
Foreign currency contracts | 1,781 | 10 | 52 | (51 | ) | ||||||||||
Margin | — | 62 | 57 | — | |||||||||||
Collateral | — | 17 | 2,208 | — | |||||||||||
Embedded derivatives: | |||||||||||||||
GMIB reinsurance contracts(6) | — | 1,734 | — | (159 | ) | ||||||||||
GMxB derivative features liability(3,6) | — | — | 3,977 | 460 | |||||||||||
SCS, SIO, MSO and IUL indexed features(5,6) | — | — | 1,683 | 27 | |||||||||||
Net derivative investment gains (loss) | (281 | ) | |||||||||||||
Cross currency swaps (2,4) | — | — | — | 9 | |||||||||||
Total | $ | 94,922 | $ | 6,017 | $ | 9,803 | $ | (272 | ) |
At December 31, 2017 | Gains (Losses) Reported In Net Income (Loss) Three Months Ended March 31, 2017 | ||||||||||||||
Fair Value | |||||||||||||||
Notional Amount | Asset Derivatives | Liability Derivatives | |||||||||||||
(in millions) | |||||||||||||||
Freestanding derivatives: | |||||||||||||||
Equity contracts:(1) | |||||||||||||||
Futures | $ | 6,716 | $ | 1 | $ | 2 | $ | (396 | ) | ||||||
Swaps | 7,623 | 4 | 201 | (405 | ) | ||||||||||
Options | 22,223 | 3,456 | 1,457 | 318 | |||||||||||
Interest rate contracts:(1) | |||||||||||||||
Swaps | 26,769 | 604 | 193 | 143 | |||||||||||
Futures | 20,675 | — | — | (19 | ) | ||||||||||
Credit contracts:(1) | |||||||||||||||
Credit default swaps | 2,131 | 35 | 3 | 6 | |||||||||||
Other freestanding contracts:(1) | |||||||||||||||
Foreign currency contracts | 1,423 | 19 | 10 | (1 | ) | ||||||||||
Margin | — | 24 | 4 | — | |||||||||||
Collateral | — | 4 | 2,123 | — | |||||||||||
Embedded derivatives: | |||||||||||||||
GMIB reinsurance contracts(6) | — | 1,894 | — | (71 | ) | ||||||||||
GMxB derivative features liability(3,6) | — | — | 4,358 | 507 | |||||||||||
SCS, SIO, MSO and IUL indexed features(5,6) | — | — | 1,786 | (317 | ) | ||||||||||
Net derivative investment gains (loss) | (235 | ) | |||||||||||||
Cross currency swaps(2,4) | 354 | 5 | — | (7 | ) | ||||||||||
Total | $ | 87,914 | $ | 6,046 | $ | 10,137 | $ | (242 | ) |
Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Net Derivatives Gain(Losses) (1) | Net Investment Income | Interest Credited To Policyholders Account Balances | AOCI | Net Derivatives Gain(Losses) (1) | Net Investment Income | Interest Credited To Policyholders Account Balances | AOCI | ||||||||||||||||||||||||||||||||||
Derivatives: designated for hedge accounting | |||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Currency swaps | $ | 7 | $ | 5 | $ | (36) | $ | 111 | $ | 21 | $ | 7 | $ | (46) | $ | 116 | |||||||||||||||||||||||||
Interest swaps | (38) | — | — | 94 | (79) | — | — | 242 | |||||||||||||||||||||||||||||||||
Total: designated for hedge accounting | (31) | 5 | (36) | 205 | (58) | 7 | (46) | 358 | |||||||||||||||||||||||||||||||||
Derivatives: not Designated for hedge accounting | |||||||||||||||||||||||||||||||||||||||||
Equity contracts | |||||||||||||||||||||||||||||||||||||||||
Futures | 31 | — | — | — | 486 | — | — | — | |||||||||||||||||||||||||||||||||
Swaps | 596 | — | — | — | 3,374 | — | — | — | |||||||||||||||||||||||||||||||||
Options | (649) | — | — | — | (4,379) | — | — | — | |||||||||||||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||||||||||||||||
Futures | (428) | — | — | — | (1,486) | — | — | — | |||||||||||||||||||||||||||||||||
Swaps | (125) | — | — | — | (428) | — | — | — | |||||||||||||||||||||||||||||||||
Swaptions | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Credit contracts | |||||||||||||||||||||||||||||||||||||||||
Credit default swaps | (1) | — | — | — | 13 | — | — | — | |||||||||||||||||||||||||||||||||
Currency contracts | |||||||||||||||||||||||||||||||||||||||||
Currency swaps | 23 | — | — | — | 41 | — | — | — | |||||||||||||||||||||||||||||||||
Currency forwards | 2 | — | — | — | 5 | — | — | — | |||||||||||||||||||||||||||||||||
Other freestanding contracts | |||||||||||||||||||||||||||||||||||||||||
Margin | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Collateral | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total: not designated for hedge accounting | (551) | — | — | — | (2,374) | — | — | — | |||||||||||||||||||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||||||||||||||||||||
Amounts due from reinsurers | (364) | — | — | — | (1,506) | — | — | — | |||||||||||||||||||||||||||||||||
GMIB reinsurance contracts | (196) | — | — | — | (535) | — | — | — | |||||||||||||||||||||||||||||||||
GMxB derivative features liability (2) | 429 | — | — | — | 2,943 | — | — | — | |||||||||||||||||||||||||||||||||
SCS, SIO,MSO and IUL indexed features | 781 | — | — | — | 4,648 | — | — | — | |||||||||||||||||||||||||||||||||
Total embedded derivatives | $ | 650 | $ | — | $ | — | $ | — | $ | 5,550 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Total derivative instruments | $ | 68 | $ | 5 | $ | (36) | $ | 205 | $ | 3,118 | $ | 7 | $ | (46) | $ | 358 |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Net Derivatives Gain(Losses) (1) | Net Investment Income | Interest Credited To Policyholders Account Balances | AOCI | Net Derivatives Gain(Losses) (1) | Net Investment Income | Interest Credited To Policyholders Account Balances | AOCI | ||||||||||||||||||||||||||||||||||
Derivatives: designated for hedge accounting | |||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||
Currency/interest rate | |||||||||||||||||||||||||||||||||||||||||
Currency swaps | $ | — | $ | — | $ | (15) | $ | 8 | $ | — | $ | — | $ | (32) | $ | 8 | |||||||||||||||||||||||||
Interest swaps | $ | (26) | $ | — | $ | (9) | $ | (54) | $ | — | $ | — | $ | (42) | |||||||||||||||||||||||||||
Total: designated for hedge accounting | (26) | — | (15) | (1) | (54) | — | (32) | (34) | |||||||||||||||||||||||||||||||||
Derivatives: not designated for hedge accounting | |||||||||||||||||||||||||||||||||||||||||
Equity contracts | |||||||||||||||||||||||||||||||||||||||||
Futures | (2) | — | — | — | (451) | — | — | — | |||||||||||||||||||||||||||||||||
Swaps | (3) | — | — | — | (2,613) | — | — | — | |||||||||||||||||||||||||||||||||
Options | (169) | — | — | — | 2,177 | — | — | — | |||||||||||||||||||||||||||||||||
Interest rate contracts | |||||||||||||||||||||||||||||||||||||||||
Futures | (93) | — | — | — | (891) | — | — | — | |||||||||||||||||||||||||||||||||
Swaps | 67 | — | — | — | (2,375) | — | — | — | |||||||||||||||||||||||||||||||||
Swaptions | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Credit contracts | |||||||||||||||||||||||||||||||||||||||||
Credit default swaps | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Currency contracts | |||||||||||||||||||||||||||||||||||||||||
Currency swaps | 3 | — | — | — | 3 | — | — | — | |||||||||||||||||||||||||||||||||
Currency forwards | 1 | — | — | — | 2 | — | — | — | |||||||||||||||||||||||||||||||||
Other freestanding contracts | |||||||||||||||||||||||||||||||||||||||||
Margin | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Collateral | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total: not designated for hedge accounting | (196) | — | — | — | (4,148) | — | — | — | |||||||||||||||||||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||||||||||||||||||||
Amounts due from reinsurers | 344 | — | — | — | 586 | — | — | — | |||||||||||||||||||||||||||||||||
GMIB reinsurance contracts | (84) | — | — | — | (542) | — | — | — | |||||||||||||||||||||||||||||||||
GMxB derivative features liability (2) | (395) | — | — | — | 2,340 | — | — | — | |||||||||||||||||||||||||||||||||
SCS, SIO,MSO and IUL indexed features | 172 | — | — | — | (2,157) | — | — | — | |||||||||||||||||||||||||||||||||
Total embedded derivatives | $ | 37 | $ | — | $ | — | $ | — | $ | 227 | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Total derivative instruments | $ | (185) | $ | — | $ | (15) | $ | (1) | $ | (3,975) | $ | — | $ | (32) | $ | (34) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance, beginning of period | $ | (55) | $ | (158) | $ | (208) | $ | (126) | |||||||||||||||||||||
Amount recorded in AOCI | |||||||||||||||||||||||||||||
Currency swaps | 77 | 7 | 77 | 7 | |||||||||||||||||||||||||
Interest swaps | 51 | (40) | 149 | (118) | |||||||||||||||||||||||||
Total amount recorded in AOCI | 128 | (33) | 226 | (111) | |||||||||||||||||||||||||
Amount reclassified from AOCI to income | |||||||||||||||||||||||||||||
Currency swaps | 34 | — | 39 | — | |||||||||||||||||||||||||
Interest swaps | 43 | 31 | 93 | 77 | |||||||||||||||||||||||||
Total amount reclassified from AOCI to income | 77 | 31 | 132 | 77 | |||||||||||||||||||||||||
Balance, end of period (1) | $ | 150 | $ | (160) | $ | 150 | $ | (160) |
Gross Amount Recognized | Gross Amount Offset in the Balance Sheets | Net Amount Presented in the Balance Sheets | Gross Amount not Offset in the Balance Sheets (3) | Net Amount | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Derivative assets (1) | $ | 6,745 | $ | 6,012 | $ | 733 | $ | (596) | $ | 137 | |||||||||||||||||||
Other financial assets | 2,116 | — | 2,116 | — | 2,116 | ||||||||||||||||||||||||
Other invested assets | $ | 8,861 | $ | 6,012 | $ | 2,849 | $ | (596) | $ | 2,253 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities (2) | $ | 7,172 | $ | 6,012 | $ | 1,160 | $ | — | $ | 1,160 | |||||||||||||||||||
Other financial liabilities | 4,838 | — | 4,838 | — | 4,838 | ||||||||||||||||||||||||
Other liabilities | $ | 12,010 | $ | 6,012 | $ | 5,998 | $ | — | $ | 5,998 | |||||||||||||||||||
Gross Amount Recognized | Gross Amount Offset in the Balance Sheets | Net Amount Presented in the Balance Sheets | Gross Amount not Offset in the Balance Sheets (3) | Net Amount | |||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Derivative assets (1) | $ | 12,358 | $ | 10,756 | $ | 1,602 | $ | (961) | $ | 641 | |||||||||||||||||||||||||
Other financial assets | 1,989 | — | 1,989 | — | 1,989 | ||||||||||||||||||||||||||||||
Other invested assets | $ | 14,347 | $ | 10,756 | $ | 3,591 | $ | (961) | $ | 2,630 | |||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Derivative liabilities (2) | $ | 10,770 | $ | 10,756 | $ | 14 | $ | — | $ | 14 | |||||||||||||||||||||||||
Other financial liabilities | 3,919 | — | 3,919 | — | 3,919 | ||||||||||||||||||||||||||||||
Other liabilities | $ | 14,689 | $ | 10,756 | $ | 3,933 | $ | — | $ | 3,933 |
Gross Amounts Recognized | Gross Amounts Offset in the Balance Sheets | Net Amounts Presented in the Balance Sheets | |||||||||
(in millions) | |||||||||||
ASSETS(1) | |||||||||||
Description | |||||||||||
Derivatives: | |||||||||||
Equity contracts | $ | 3,606 | $ | 1,429 | $ | 2,177 | |||||
Interest rate contracts | 555 | 395 | 160 | ||||||||
Credit contracts | 32 | 3 | 29 | ||||||||
Currency | 10 | 52 | (42 | ) | |||||||
Collateral | 17 | 2,208 | (2,191 | ) | |||||||
Margin | 62 | 57 | 5 | ||||||||
Total Derivatives, subject to an ISDA Master Agreement | 4,282 | 4,144 | 138 | ||||||||
Other financial instruments | 3,923 | — | 3,923 | ||||||||
Other invested assets | $ | 8,205 | $ | 4,144 | $ | 4,061 | |||||
LIABILITIES(2) | |||||||||||
Description | |||||||||||
Derivatives: | |||||||||||
Equity contracts | $ | 1,429 | $ | 1,429 | $ | — | |||||
Interest rate contracts | 395 | 395 | — | ||||||||
Credit contracts | 3 | 3 | — | ||||||||
Currency | 52 | 52 | — | ||||||||
Collateral | 2,208 | 2,208 | — | ||||||||
Margin | 57 | 57 | — | ||||||||
Total Derivatives, subject to an ISDA Master Agreement | 4,144 | 4,144 | — | ||||||||
Other financial liabilities | 4,342 | — | 4,342 | ||||||||
Other liabilities | $ | 8,486 | $ | 4,144 | $ | 4,342 | |||||
Securities sold under agreement to repurchase(3) | $ | 1,897 | $ | — | $ | 1,897 |
Net Amounts Presented in the Balance Sheets | Collateral (Received)/Held | ||||||||||||||
Financial Instruments | Cash | Net Amounts | |||||||||||||
(in millions) | |||||||||||||||
Assets(1) | |||||||||||||||
Total derivatives | $ | 2,324 | $ | — | $ | (2,186 | ) | $ | 138 | ||||||
Other financial instruments | 3,923 | — | — | 3,923 | |||||||||||
Other invested assets | $ | 6,247 | $ | — | $ | (2,186 | ) | $ | 4,061 | ||||||
Liabilities:(2) | |||||||||||||||
Securities sold under agreement to repurchase(3)(4)(5) | $ | 1,897 | $ | (1,923 | ) | $ | — | $ | (26 | ) |
At March 31, 2018 | |||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||
Overnight and Continuous | Up to 30 days | 30–90 days | Greater Than 90 days | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Securities sold under agreement to repurchase(1) | |||||||||||||||||||
U.S. Treasury and agency securities | $ | — | $ | 1,897 | $ | — | $ | — | $ | 1,897 | |||||||||
Total | $ | — | $ | 1,897 | $ | — | $ | — | $ | 1,897 |
Gross Amounts Recognized | Gross Amounts Offset in the Balance Sheets | Net Amounts Presented in the Balance Sheets | |||||||||
(in millions) | |||||||||||
ASSETS(1) | |||||||||||
Description | |||||||||||
Derivatives: | |||||||||||
Equity contracts | $ | 3,461 | $ | 1,660 | $ | 1,801 | |||||
Interest rate contracts | 604 | 193 | 411 | ||||||||
Credit contracts | 35 | 3 | 32 | ||||||||
Currency | 19 | 10 | 9 | ||||||||
Collateral | 4 | 2,123 | (2,119 | ) | |||||||
Margin | 24 | 4 | 20 | ||||||||
Total Derivatives, subject to an ISDA Master Agreement | 4,147 | 3,993 | 154 | ||||||||
Other financial instruments | 3,964 | — | 3,964 | ||||||||
Other invested assets | $ | 8,111 | $ | 3,993 | $ | 4,118 | |||||
Total Derivatives, not subject to an ISDA Master Agreement(4) | $ | 5 | $ | — | $ | 5 | |||||
LIABILITIES(2) | |||||||||||
Description | |||||||||||
Derivatives: | |||||||||||
Equity contracts | $ | 1,660 | $ | 1,660 | $ | — | |||||
Interest rate contracts | 193 | 193 | — | ||||||||
Credit contracts | 3 | 3 | — | ||||||||
Currency | 10 | 10 | — | ||||||||
Collateral | 2,123 | 2,123 | — | ||||||||
Margin | 4 | 4 | — | ||||||||
Total Derivatives, subject to an ISDA Master Agreement | 3,993 | 3,993 | — | ||||||||
Other financial liabilities | 4,053 | — | 4,053 | ||||||||
Other liabilities | $ | 8,046 | $ | 3,993 | $ | 4,053 | |||||
Securities sold under agreement to repurchase(3) | $ | 1,882 | $ | — | $ | 1,882 |
Net Amounts Presented in the Balance Sheets | Collateral (Received)/Held | ||||||||||||||
Financial Instruments | Cash | Net Amounts | |||||||||||||
(in millions) | |||||||||||||||
Assets(1) | |||||||||||||||
Total Derivatives | $ | 2,253 | $ | — | $ | (2,099 | ) | $ | 154 | ||||||
Other financial assets | 3,964 | — | — | 3,964 | |||||||||||
Other invested assets | $ | 6,217 | $ | — | $ | (2,099 | ) | $ | 4,118 | ||||||
Liabilities:(2) | |||||||||||||||
Other financial liabilities | $ | 4,053 | $ | — | $ | — | $ | 4,053 | |||||||
Other liabilities | $ | 4,053 | $ | — | $ | — | $ | 4,053 | |||||||
Securities sold under agreement to repurchase(3)(4)(5) | $ | 1,882 | $ | (1,988 | ) | $ | (21 | ) | $ | (127 | ) |
At December 31, 2017 | |||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||
Overnight and Continuous | Up to 30 days | 30–90 days | Greater Than 90 days | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Securities sold under agreement to repurchase(1) | |||||||||||||||||||
U.S. Treasury and agency securities | $ | — | $ | 1,882 | $ | — | $ | — | $ | 1,882 | |||||||||
Total | $ | — | $ | 1,882 | $ | — | $ | — | $ | 1,882 |
September 30, 2022 | December 31, 2021 | ||||||||||
(in millions) | |||||||||||
Closed Block Liabilities: | |||||||||||
Future policy benefits, policyholders’ account balances and other | $ | 5,750 | $ | 5,928 | |||||||
Policyholder dividend obligation | — | — | |||||||||
Other liabilities | 74 | 39 | |||||||||
Total Closed Block liabilities | 5,824 | 5,967 | |||||||||
Assets Designated to the Closed Block: | |||||||||||
Fixed maturities AFS, at fair value (amortized cost of $3,190 and $3,185) (allowance for credit losses of $0 and $0) | 2,932 | 3,390 | |||||||||
Mortgage loans on real estate (net of allowance for credit losses of $4 and $4) | 1,687 | 1,771 | |||||||||
Policy loans | 575 | 602 | |||||||||
Cash and other invested assets | — | 63 | |||||||||
Other assets | 154 | 90 | |||||||||
Total assets designated to the Closed Block | 5,348 | 5,916 | |||||||||
Excess of Closed Block liabilities over assets designated to the Closed Block | 476 | 51 | |||||||||
Amounts included in AOCI: | |||||||||||
Net unrealized investment gains (losses), net of policyholders’ dividend obligation: $0 and $0; and net of income tax: $54 and $(43) | (193) | 172 | |||||||||
Maximum future earnings to be recognized from Closed Block assets and liabilities | $ | 283 | $ | 223 |
March 31, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
CLOSED BLOCK LIABILITIES: | |||||||
Future policy benefits, policyholders’ account balances and other | $ | 6,904 | $ | 6,958 | |||
Policyholder dividend obligation | — | 19 | |||||
Other liabilities | 269 | 271 | |||||
Total Closed Block liabilities | 7,173 | 7,248 | |||||
ASSETS DESIGNATED TO THE CLOSED BLOCK: | |||||||
Fixed maturities, available for sale, at fair value (amortized cost of $3,864 and $3,923) | 3,908 | 4,070 | |||||
Mortgage loans on real estate | 1,837 | 1,720 | |||||
Policy loans | 772 | 781 | |||||
Cash and other invested assets | 235 | 351 | |||||
Other assets | 192 | 182 | |||||
Total assets designated to the Closed Block | 6,944 | 7,104 | |||||
Excess of Closed Block liabilities over assets designated to the Closed Block | 229 | 144 | |||||
Amounts included in accumulated other comprehensive income (loss): | |||||||
Net unrealized investment gains (losses), net of policyholder dividend obligation of $0 and $19 | 55 | 138 | |||||
Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities | $ | 284 | $ | 282 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||
Premiums and other income | $ | 29 | $ | 33 | $ | 93 | $ | 109 | |||||||||||||||||||||
Net investment income (loss) | 52 | 59 | 164 | 179 | |||||||||||||||||||||||||
Investment gains (losses), net | (1) | — | (2) | 2 | |||||||||||||||||||||||||
Total revenues | 80 | 92 | 255 | 290 | |||||||||||||||||||||||||
Benefits and Other Deductions: | |||||||||||||||||||||||||||||
Policyholders’ benefits and dividends | 92 | 108 | 248 | 304 | |||||||||||||||||||||||||
Other operating costs and expenses | — | 2 | — | 3 | |||||||||||||||||||||||||
Total benefits and other deductions | 92 | 110 | 248 | 307 | |||||||||||||||||||||||||
Net income (loss), before income taxes | (12) | (18) | 7 | (17) | |||||||||||||||||||||||||
Income tax (expense) benefit | (5) | (2) | (1) | (3) | |||||||||||||||||||||||||
Net income (loss) | $ | (17) | $ | (20) | $ | 6 | $ | (20) |
Three Months Ended March 31, | ||||||||
2018 | 2017 | |||||||
(in millions) | ||||||||
REVENUES: | ||||||||
Premiums and other income | $ | 51 | $ | 54 | ||||
Net investment income (loss) | 73 | 83 | ||||||
Net investment gains (losses) | 1 | (15 | ) | |||||
Total revenues | 125 | 122 | ||||||
BENEFITS AND OTHER DEDUCTIONS: | ||||||||
Policyholders’ benefits and dividends | 126 | 151 | ||||||
Other operating costs and expenses | 1 | — | ||||||
Total benefits and other deductions | 127 | 151 | ||||||
Net revenues (loss) before income taxes | (2 | ) | (29 | ) | ||||
Income tax (expense) benefit | — | 10 | ||||||
Net Revenues (Losses) | $ | (2 | ) | $ | (19 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Beginning balance | $ | — | $ | 72 | $ | — | $ | 160 | |||||||||||||||||||||
Unrealized investment gains (losses) | — | (47) | — | (135) | |||||||||||||||||||||||||
Ending balance | $ | — | $ | 25 | $ | — | $ | 25 | |||||||||||||||||||||
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Balances, beginning of year | $ | 19 | $ | 52 | |||
Unrealized investment gains (losses), net of DAC | (19 | ) | (14 | ) | |||
Balances, End of Period | $ | — | $ | 38 |
GMDB | GMIB | Total | |||||||||
(in millions) | |||||||||||
Balance at January 1, 2018 | $ | 4,085 | $ | 4,800 | $ | 8,885 | |||||
Paid guarantee benefits | (101 | ) | (32 | ) | (133 | ) | |||||
Other changes in reserve | 97 | (136 | ) | (39 | ) | ||||||
Balance at March 31, 2018 | $ | 4,081 | $ | 4,632 | $ | 8,713 | |||||
Balance at January 1, 2017 | $ | 3,170 | $ | 3,868 | $ | 7,038 | |||||
Paid guarantee benefits | (89 | ) | (32 | ) | (121 | ) | |||||
Other changes in reserve | 187 | 1,919 | 2,106 | ||||||||
Balance at March 31, 2017 | $ | 3,268 | $ | 5,755 | $ | 9,023 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Balance, beginning of year | $ | 108 | $ | 90 | |||
Paid guarantee benefits | (5 | ) | (3 | ) | |||
Other changes in reserve | 2 | 2 | |||||
Balance, End of Period | $ | 105 | $ | 89 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Balance, beginning of year | $ | 95 | $ | 121 | |||
Paid guarantee benefits | (6 | ) | (5 | ) | |||
Other changes in reserve | (7 | ) | (8 | ) | |||
Balance, End of Period | $ | 82 | $ | 108 |
GMDB | GMIB | ||||||||||||||||||||||||||||||||||
Direct | Assumed (1) (2) | Ceded | Direct | Assumed (1) (2) | Ceded | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Balance, July 1, 2022 | $ | 5,096 | $ | — | $ | (2,276) | $ | 6,165 | $ | — | $ | (3,707) | |||||||||||||||||||||||
Paid guarantee benefits | (152) | — | 63 | (171) | — | 46 | |||||||||||||||||||||||||||||
Other changes in reserve | 379 | — | (147) | (312) | — | 341 | |||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | 5,323 | $ | — | $ | (2,360) | $ | 5,682 | $ | — | $ | (3,320) | |||||||||||||||||||||||
Balance, July 1, 2021 | $ | 5,091 | $ | — | $ | (2,262) | $ | 5,905 | $ | — | $ | (4,168) | |||||||||||||||||||||||
Paid guarantee benefits | (103) | — | 41 | (87) | — | 16 | |||||||||||||||||||||||||||||
Other changes in reserve | (6) | — | 2 | 131 | — | 89 | |||||||||||||||||||||||||||||
Impact of the Venerable Transaction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | 4,982 | $ | — | $ | (2,219) | $ | 5,949 | $ | — | $ | (4,063) |
GMDB | GMIB | ||||||||||||||||||||||||||||||||||
Direct | Assumed (1) (2) | Ceded | Direct | Assumed (1) (2) | Ceded | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 4,951 | $ | — | $ | (2,216) | $ | 5,892 | $ | — | $ | (3,968) | |||||||||||||||||||||||
Paid guarantee benefits | (433) | — | 180 | (437) | — | 53 | |||||||||||||||||||||||||||||
Other changes in reserve | 805 | — | (324) | 227 | — | 595 | |||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | 5,323 | $ | — | $ | (2,360) | $ | 5,682 | $ | — | $ | (3,320) | |||||||||||||||||||||||
Balance, January 1, 2021 | $ | 5,097 | $ | 72 | $ | (88) | $ | 6,026 | $ | 196 | $ | (2,488) | |||||||||||||||||||||||
Paid guarantee benefits | (350) | (12) | 64 | (271) | (49) | 41 | |||||||||||||||||||||||||||||
Other changes in reserve | 235 | 14 | (19) | 194 | (7) | 525 | |||||||||||||||||||||||||||||
Impact of the Venerable Transaction | — | (74) | (2,176) | — | (140) | (2,141) | |||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | 4,982 | $ | — | $ | (2,219) | $ | 5,949 | $ | — | $ | (4,063) |
March 31, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
GMIBNLG(1) | $ | 3,715 | $ | 4,056 | |||
SCS, SIO, MSO, IUL indexed features(2) | 1,683 | 1,786 | |||||
Assumed GMIB reinsurance Contracts(1) | 173 | 194 | |||||
GWBL/GMWB(1) | 121 | 130 | |||||
GIB(1) | (36 | ) | (27 | ) | |||
GMAB(1) | 4 | 5 | |||||
Total embedded and freestanding derivative liabilities | $ | 5,660 | $ | 6,144 | |||
GMIB reinsurance contract asset(3) | $ | 1,734 | $ | 1,894 |
Return of Premium | Ratchet | Roll-Up | Combo | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
GMDB: | |||||||||||||||||||
Account values invested in: | |||||||||||||||||||
General Account | $ | 13,848 | $ | 107 | $ | 64 | $ | 194 | $ | 14,213 | |||||||||
Separate Accounts | $ | 45,136 | $ | 9,319 | $ | 3,381 | $ | 34,668 | $ | 92,504 | |||||||||
Net amount at risk, gross | $ | 186 | $ | 117 | $ | 2,016 | $ | 16,388 | $ | 18,707 | |||||||||
Net amount at risk, net of amounts reinsured | $ | 186 | $ | 111 | $ | 1,378 | $ | 16,388 | $ | 18,063 | |||||||||
Average attained age of policyholders | 51 | 67 | 73 | 68 | 55 | ||||||||||||||
Percentage of policyholders over age 70 | 9.7 | % | 40.9 | % | 63.7 | % | 47.4 | % | 18.3 | % | |||||||||
Range of contractually specified interest rates | N/A | N/A | 3%-6% | 3%-6.5% | 3%-6.5% | ||||||||||||||
GMIB: | |||||||||||||||||||
Account values invested in: | |||||||||||||||||||
General Account | N/A | N/A | $ | 24 | $ | 285 | $ | 309 | |||||||||||
Separate Accounts | N/A | N/A | $ | 20,855 | $ | 39,604 | $ | 60,459 | |||||||||||
Net amount at risk, gross | N/A | N/A | $ | 883 | $ | 6,322 | $ | 7,205 | |||||||||||
Net amount at risk, net of amounts reinsured | N/A | N/A | $ | 268 | $ | 5,738 | $ | 6,006 | |||||||||||
Average attained age of policyholders | N/A | N/A | 70 | 69 | 69 | ||||||||||||||
Weighted average years remaining until annuitization | N/A | N/A | 1.7 | 0.7 | 0.8 | ||||||||||||||
Range of contractually specified interest rates | N/A | N/A | 3%-6% | 3%-6.5% | 3%-6.5% |
Guarantee Type | |||||||||||||||||||||||||||||
Return of Premium | Ratchet | Roll-Up | Combo | Total | |||||||||||||||||||||||||
(in millions, except age and interest rate) | |||||||||||||||||||||||||||||
Variable annuity contracts with GMDB features | |||||||||||||||||||||||||||||
Account Values invested in: | |||||||||||||||||||||||||||||
General Account | $ | 16,657 | $ | 94 | $ | 48 | $ | 148 | $ | 16,947 | |||||||||||||||||||
Separate Accounts | 44,879 | 7,213 | 2,384 | 24,547 | 79,023 | ||||||||||||||||||||||||
Total Account Values | $ | 61,536 | $ | 7,307 | $ | 2,432 | $ | 24,695 | $ | 95,970 | |||||||||||||||||||
NAR, gross | $ | 1,176 | $ | 1,802 | $ | 1,975 | $ | 24,164 | $ | 29,117 | |||||||||||||||||||
NAR, net of amounts reinsured | $ | 1,164 | $ | 1,630 | $ | 1,439 | $ | 13,074 | $ | 17,307 | |||||||||||||||||||
Average attained age of policyholders (in years) | 51.6 | 69.6 | 76.0 | 71.6 | 55.4 | ||||||||||||||||||||||||
Percentage of policyholders over age 70 | 12.1 | % | 52.1 | % | 74.2 | % | 60.0 | % | 21.1 | % | |||||||||||||||||||
Range of contractually specified interest rates | N/A | N/A | 3% - 6% | 3% - 6.5% | 3% - 6.5% | ||||||||||||||||||||||||
Variable annuity contracts with GMIB features | |||||||||||||||||||||||||||||
Account Values invested in: | |||||||||||||||||||||||||||||
General Account | $ | — | $ | — | $ | 14 | $ | 193 | $ | 207 | |||||||||||||||||||
Separate Accounts | — | — | 20,235 | 25,771 | 46,006 | ||||||||||||||||||||||||
Total Account Values | $ | — | $ | — | $ | 20,249 | $ | 25,964 | $ | 46,213 | |||||||||||||||||||
NAR, gross | $ | — | $ | — | $ | 546 | $ | 8,237 | $ | 8,783 | |||||||||||||||||||
NAR, net of amounts reinsured | $ | — | $ | — | $ | 176 | $ | 3,377 | $ | 3,553 | |||||||||||||||||||
Average attained age of policyholders (in years) | N/A | N/A | 65.6 | 71.3 | 69.1 | ||||||||||||||||||||||||
Weighted average years remaining until annuitization | N/A | N/A | 5.6 | 0.5 | 2.4 | ||||||||||||||||||||||||
Range of contractually specified interest rates | N/A | N/A | 3% - 6% | 3% - 6.5% | 3% - 6.5% |
Return of Premium | Ratchet | Roll-Up | Combo | Total | |||||||||||||||
(Dollars in millions) | |||||||||||||||||||
GMDB: | |||||||||||||||||||
Reinsured Account values | $ | 1,023 | $ | 5,849 | $ | 302 | $ | 1,879 | $ | 9,053 | |||||||||
Net amount at risk assumed | $ | 7 | $ | 314 | $ | 24 | $ | 321 | $ | 666 | |||||||||
Average attained age of policyholders | 67 | 72 | 77 | 75 | 72 | ||||||||||||||
Percentage of policyholders over age 70 | 41.4 | % | 60.8 | % | 76.6 | % | 74.2 | % | 61.9 | % | |||||||||
Range of contractually specified interest rates | N/A | N/A | 3%-10% | 5%-10% | 3%-10% | ||||||||||||||
GMIB: | |||||||||||||||||||
Reinsured Account values | $ | 978 | $ | 52 | $ | 277 | $ | 1,338 | $ | 2,645 | |||||||||
Net amount at risk assumed | $ | 2 | $ | — | $ | 38 | $ | 215 | $ | 255 | |||||||||
Average attained age of policyholders | 71 | 74 | 71 | 68 | 70 | ||||||||||||||
Percentage of policyholders over age 70 | 61.6 | % | 63.7 | % | 55.9 | % | 48.1 | % | 54.2 | % | |||||||||
Range of contractually specified interest rates(1) | N/A | N/A | 3.3%-6.5% | 6%-6% | 3.3%-6.5% |
March 31, 2018 | December 31, 2017 (1) | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
Mutual Fund Type | Mutual Fund Type | GMDB | GMIB | GMDB | GMIB | |||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||
GMDB: | ||||||||||||||||||||||||||||||
Equity | $ | 40,678 | $ | 41,658 | Equity | $ | 37,285 | $ | 13,460 | $ | 52,771 | $ | 20,015 | |||||||||||||||||
Fixed income | 5,384 | 5,469 | Fixed income | 4,474 | 2,028 | 5,391 | 2,507 | |||||||||||||||||||||||
Balanced | 45,485 | 46,577 | Balanced | 36,134 | 30,264 | 48,390 | 40,491 | |||||||||||||||||||||||
Other | 957 | 968 | Other | 1,130 | 254 | 1,025 | 263 | |||||||||||||||||||||||
Total | $ | 92,504 | $ | 94,672 | Total | $ | 79,023 | $ | 46,006 | $ | 107,577 | $ | 63,276 | |||||||||||||||||
GMIB: | ||||||||||||||||||||||||||||||
Equity | $ | 19,156 | $ | 19,928 | ||||||||||||||||||||||||||
Fixed income | 3,074 | 3,150 | ||||||||||||||||||||||||||||
Balanced | 37,918 | 38,890 | ||||||||||||||||||||||||||||
Other | 311 | 318 | ||||||||||||||||||||||||||||
Total | $ | 60,459 | $ | 62,286 |
Direct Liability (1) | |||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,134 | $ | 1,070 | $ | 1,096 | $ | 1,022 | |||||||||||||||||||||
Paid guarantee benefits | (46) | (24) | (62) | (52) | |||||||||||||||||||||||||
Other changes in reserves | 74 | 38 | 128 | 114 | |||||||||||||||||||||||||
Ending balance | $ | 1,162 | $ | 1,084 | $ | 1,162 | $ | 1,084 |
Direct Liability(1) | |||
(in millions) | |||
Balance at January 1, 2018 | $ | 686 | |
Paid Guaranteed Benefits | (8 | ) | |
Other changes in reserves | 26 | ||
Balance at March 31, 2018 | $ | 704 | |
Balance at January 1, 2017 | $ | 1,307 | |
Other changes in reserves | 4 | ||
Balance at March 31, 2017 | $ | 1,311 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in millions) | |||||||||||||||
Assets | |||||||||||||||
Investments | |||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||
Public Corporate | $ | — | $ | 18,581 | $ | 135 | $ | 18,716 | |||||||
Private Corporate | — | 6,286 | 1,118 | 7,404 | |||||||||||
U.S. Treasury, government and agency | — | 14,653 | — | 14,653 | |||||||||||
States and political subdivisions | — | 438 | 39 | 477 | |||||||||||
Foreign governments | — | 419 | — | 419 | |||||||||||
Residential mortgage-backed(1) | — | 627 | — | 627 | |||||||||||
Asset-backed(2) | — | 135 | 540 | 675 | |||||||||||
Redeemable preferred stock | 180 | 333 | — | 513 | |||||||||||
Subtotal | 180 | 41,472 | 1,832 | 43,484 | |||||||||||
Other equity investments | 13 | — | 34 | 47 | |||||||||||
Trading securities | 448 | 14,427 | 44 | 14,919 | |||||||||||
Other invested assets: | |||||||||||||||
Short-term investments | — | 854 | — | 854 | |||||||||||
Assets of consolidated VIEs/VOEs | 1,691 | 291 | 32 | 2,014 | |||||||||||
Swaps | — | 356 | — | 356 | |||||||||||
Credit Default Swaps | — | 29 | — | 29 | |||||||||||
Options | — | 1,939 | — | 1,939 | |||||||||||
Subtotal | 1,691 | 3,469 | 32 | 5,192 | |||||||||||
Cash equivalents | 4,894 | — | — | 4,894 | |||||||||||
Segregated securities | — | 1,025 | — | 1,025 | |||||||||||
GMIB reinsurance contract asset | — | — | 1,734 | 1,734 | |||||||||||
Separate Accounts’ assets | 118,466 | 2,845 | 357 | 121,668 | |||||||||||
Total Assets | $ | 125,692 | $ | 63,238 | $ | 4,033 | $ | 192,963 | |||||||
Liabilities | |||||||||||||||
Other invested liabilities | |||||||||||||||
GMxB derivative features’ liability | $ | — | $ | — | $ | 3,977 | $ | 3,977 | |||||||
SCS, SIO, MSO and IUL indexed features’ liability | — | 1,683 | — | 1,683 | |||||||||||
Liabilities of consolidated VIEs/VOEs | 1,190 | 18 | — | 1,208 | |||||||||||
Contingent payment arrangements | — | — | 14 | 14 | |||||||||||
Total Liabilities | $ | 1,190 | $ | 1,701 | $ | 3,991 | $ | 6,882 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in millions) | |||||||||||||||
Assets | |||||||||||||||
Investments | |||||||||||||||
Fixed maturities, available-for-sale: | |||||||||||||||
Public Corporate | $ | — | $ | 17,906 | $ | 48 | $ | 17,954 | |||||||
Private Corporate | — | 6,390 | 1,102 | 7,492 | |||||||||||
U.S. Treasury, government and agency | — | 18,508 | — | 18,508 | |||||||||||
States and political subdivisions | — | 449 | 40 | 489 | |||||||||||
Foreign governments | — | 419 | — | 419 | |||||||||||
Residential mortgage-backed(1) | — | 818 | — | 818 | |||||||||||
Asset-backed(2) | — | 208 | 541 | 749 | |||||||||||
Redeemable preferred stock | 184 | 327 | 1 | 512 | |||||||||||
Subtotal | 184 | 45,025 | 1,732 | 46,941 | |||||||||||
Other equity investments | 13 | — | 34 | 47 | |||||||||||
Trading securities | 485 | 13,647 | 38 | 14,170 | |||||||||||
Other invested assets: | |||||||||||||||
Short-term investments | — | 1,730 | — | 1,730 | |||||||||||
Assets of consolidated VIEs/VOEs | 1,060 | 215 | 27 | 1,302 | |||||||||||
Swaps | — | 222 | — | 222 | |||||||||||
Credit Default Swaps | — | 33 | — | 33 | |||||||||||
Futures | (2 | ) | — | — | (2 | ) | |||||||||
Foreign currency contract(3) | — | 5 | — | 5 | |||||||||||
Options | — | 1,999 | — | 1,999 | |||||||||||
Subtotal | 1,058 | 4,204 | 27 | 5,289 | |||||||||||
Cash equivalents | 3,608 | — | — | 3,608 | |||||||||||
Segregated securities | — | 825 | — | 825 | |||||||||||
GMIB reinsurance contract asset | — | — | 1,894 | 1,894 | |||||||||||
Separate Accounts’ assets | 121,000 | 2,997 | 349 | 124,346 | |||||||||||
Total Assets | $ | 126,348 | $ | 66,698 | $ | 4,074 | $ | 197,120 | |||||||
Liabilities | |||||||||||||||
Other invested liabilities | |||||||||||||||
GMxB derivative features’ liability | $ | — | $ | — | $ | 4,358 | $ | 4,358 | |||||||
SCS, SIO, MSO and IUL indexed features’ liability | — | 1,786 | — | 1,786 | |||||||||||
Liabilities of consolidated VIEs/VOEs | 670 | 22 | — | 692 | |||||||||||
Contingent payment arrangements | — | — | 15 | 15 | |||||||||||
Total Liabilities | $ | 670 | $ | 1,808 | $ | 4,373 | $ | 6,851 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investments | |||||||||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||||||||
Corporate (1) | $ | — | $ | 42,635 | $ | 1,911 | $ | 44,546 | |||||||||||||||
U.S. Treasury, government and agency | — | 6,030 | — | 6,030 | |||||||||||||||||||
States and political subdivisions | — | 555 | 29 | 584 | |||||||||||||||||||
Foreign governments | — | 926 | — | 926 | |||||||||||||||||||
Residential mortgage-backed (2) | — | 476 | — | 476 | |||||||||||||||||||
Asset-backed (3) | — | 8,735 | 10 | 8,745 | |||||||||||||||||||
Commercial mortgage-backed | — | 3,218 | 32 | 3,250 | |||||||||||||||||||
Redeemable preferred stock | — | 43 | — | 43 | |||||||||||||||||||
Total fixed maturities, AFS | — | 62,618 | 1,982 | 64,600 | |||||||||||||||||||
Fixed maturities, at fair value using the fair value option | — | 1,174 | 374 | 1,548 | |||||||||||||||||||
Other equity investments (7) | 270 | 487 | 12 | 769 | |||||||||||||||||||
Trading securities | 276 | 303 | 52 | 631 | |||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||
Short-term investments | — | 374 | — | 374 | |||||||||||||||||||
Assets of consolidated VIEs/VOEs | 86 | 390 | 5 | 481 | |||||||||||||||||||
Swaps | — | (286) | — | (286) | |||||||||||||||||||
Credit default swaps | — | 12 | — | 12 | |||||||||||||||||||
Futures | 8 | — | — | 8 | |||||||||||||||||||
Options | — | 2,310 | — | 2,310 | |||||||||||||||||||
Total other invested assets | 94 | 2,800 | 5 | 2,899 | |||||||||||||||||||
Cash equivalents | 2,199 | 561 | — | 2,760 | |||||||||||||||||||
Segregated securities | — | 1,335 | — | 1,335 | |||||||||||||||||||
Amounts due from reinsurer (6) | — | — | 4,312 | 4,312 | |||||||||||||||||||
GMIB reinsurance contracts asset | — | — | 1,289 | 1,289 | |||||||||||||||||||
Separate Accounts assets (4) | 106,565 | 2,374 | 1 | 108,940 | |||||||||||||||||||
Total Assets | $ | 109,404 | $ | 71,652 | $ | 8,027 | $ | 189,083 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Notes issued by consolidated VIE’s, at fair value using the fair value option (5) | $ | — | $ | 1,398 | $ | — | $ | 1,398 | |||||||||||||||
GMxB derivative features’ liability | — | — | 5,825 | 5,825 | |||||||||||||||||||
SCS, SIO, MSO and IUL indexed features’ liability | — | 2,086 | — | 2,086 | |||||||||||||||||||
Liabilities of consolidated VIEs and VOEs | 17 | 5 | — | 22 | |||||||||||||||||||
Contingent payment arrangements | — | — | 273 | 273 | |||||||||||||||||||
Total Liabilities | $ | 17 | $ | 3,489 | $ | 6,098 | $ | 9,604 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Investments | |||||||||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||||||||
Corporate (1) | $ | — | $ | 51,007 | $ | 1,504 | $ | 52,511 | |||||||||||||||
U.S. Treasury, government and agency | — | 15,385 | — | 15,385 | |||||||||||||||||||
States and political subdivisions | — | 627 | 35 | 662 | |||||||||||||||||||
Foreign governments | — | 1,152 | — | 1,152 | |||||||||||||||||||
Residential mortgage-backed (2) | — | 98 | — | 98 | |||||||||||||||||||
Asset-backed (3) | — | 5,926 | 8 | 5,934 | |||||||||||||||||||
Commercial mortgage-backed (2) | — | 2,401 | 20 | 2,421 | |||||||||||||||||||
Redeemable preferred stock | — | 53 | — | 53 | |||||||||||||||||||
Total fixed maturities, AFS | — | 76,649 | 1,567 | 78,216 | |||||||||||||||||||
Fixed maturities, at fair value using the fair value option | 1,440 | 201 | 1,641 | ||||||||||||||||||||
Other equity investments | 322 | 457 | 5 | 784 | |||||||||||||||||||
Trading securities | 340 | 226 | 65 | 631 | |||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||
Short-term investments | — | 30 | — | 30 | |||||||||||||||||||
Assets of consolidated VIEs/VOEs | 166 | 450 | 11 | 627 | |||||||||||||||||||
Swaps | — | (473) | — | (473) | |||||||||||||||||||
Credit default swaps | — | (1) | — | (1) | |||||||||||||||||||
Futures | (1) | — | — | (1) | |||||||||||||||||||
Options | — | 6,959 | — | 6,959 | |||||||||||||||||||
Swaptions | — | — | — | — | |||||||||||||||||||
Total other invested assets | 165 | 6,965 | 11 | 7,141 | |||||||||||||||||||
Cash equivalents | 3,275 | 293 | — | 3,568 | |||||||||||||||||||
Segregated securities | — | 1,504 | — | 1,504 | |||||||||||||||||||
Amounts due from reinsurer | — | — | 5,813 | 5,813 | |||||||||||||||||||
GMIB reinsurance contracts asset | — | — | 1,848 | 1,848 | |||||||||||||||||||
Separate Accounts assets (4) | 144,124 | 2,572 | 1 | 146,697 | |||||||||||||||||||
Total Assets | $ | 148,226 | $ | 90,106 | $ | 9,511 | $ | 247,843 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Notes issued by consolidated VIE’s, at fair value using the fair value option (5) | $ | — | $ | 1,277 | $ | — | $ | 1,277 | |||||||||||||||
GMxB derivative features’ liability | — | — | 8,525 | 8,525 | |||||||||||||||||||
SCS, SIO, MSO and IUL indexed features’ liability | — | 6,773 | — | 6,773 | |||||||||||||||||||
Liabilities of consolidated VIEs and VOEs | 16 | 2 | — | 18 | |||||||||||||||||||
Contingent payment arrangements | — | — | 38 | 38 | |||||||||||||||||||
Total Liabilities | $ | 16 | $ | 8,052 | $ | 8,563 | $ | 16,631 |
Corporate | State and Political Sub- divisions | Commercial Mortgage- backed | Asset- backed | ||||||||||||
(in millions) | |||||||||||||||
Balance, January 1, 2018 | $ | 1,150 | $ | 40 | $ | — | $ | 541 | |||||||
Total gains (losses), realized and unrealized, included in: | |||||||||||||||
Income (loss) as: | |||||||||||||||
Net investment income (loss) | 1 | — | — | — | |||||||||||
Investment gains (losses), net | — | — | — | — | |||||||||||
Subtotal | 1 | — | — | — | |||||||||||
Other comprehensive income (loss) | (21 | ) | (1 | ) | — | — | |||||||||
Purchases | 189 | — | — | — | |||||||||||
Sales | (117 | ) | — | — | (1 | ) | |||||||||
Settlements | — | — | — | — | |||||||||||
Transfers into Level 3(1) | 67 | — | — | — | |||||||||||
Transfers out of Level 3(1) | (16 | ) | — | — | — | ||||||||||
Balance, March 31, 2018 | $ | 1,253 | $ | 39 | $ | — | $ | 540 | |||||||
Balance, January 1, 2017 | $ | 857 | $ | 42 | $ | 373 | $ | 120 | |||||||
Total gains (losses), realized and unrealized, included in: | |||||||||||||||
Income (loss) as: | |||||||||||||||
Net investment income (loss) | 1 | — | — | — | |||||||||||
Investment gains (losses), net | — | — | (23 | ) | — | ||||||||||
Subtotal | 1 | — | (23 | ) | — | ||||||||||
Other comprehensive income (loss) | 45 | — | 25 | 5 | |||||||||||
Purchases | 171 | — | — | 195 | |||||||||||
Sales | (67 | ) | — | (35 | ) | (3 | ) | ||||||||
Transfers into Level 3(1) | 18 | — | — | 6 | |||||||||||
Transfers out of Level 3(1) | — | — | — | — | |||||||||||
Balance, March 31, 2017 | $ | 1,025 | $ | 42 | $ | 340 | $ | 323 |
Redeemable Preferred Stock | Other Equity Investments(2) | GMIB Reinsurance Contract Asset | Separate Accounts Assets | GMxB derivative features liability | Contingent Payment Arrangement | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance, January 1, 2018 | $ | 1 | $ | 99 | $ | 1,894 | $ | 349 | $ | (4,358 | ) | $ | (15 | ) | |||||||||
Total gains (losses), realized and unrealized, included in: | |||||||||||||||||||||||
Income (loss) as: | |||||||||||||||||||||||
Net investment income (loss) | — | — | — | — | — | — | |||||||||||||||||
Investment gains (losses), net | — | — | — | 7 | — | — | |||||||||||||||||
Net derivative gains (losses) | — | — | (159 | ) | — | 460 | — | ||||||||||||||||
Subtotal | — | — | (159 | ) | 7 | 460 | — | ||||||||||||||||
Other comprehensive income (loss) | — | 1 | — | — | — | — | |||||||||||||||||
Purchases(2) | — | 4 | 10 | 3 | (84 | ) | — | ||||||||||||||||
Sales(3) | (1 | ) | — | (11 | ) | (1 | ) | 5 | — | ||||||||||||||
Settlements(4) | — | — | — | (1 | ) | — | 1 | ||||||||||||||||
Activity related to consolidated VIEs | — | 1 | — | — | — | — | |||||||||||||||||
Transfers into Level 3(1) | — | 5 | — | — | — | — | |||||||||||||||||
Transfers out of Level 3(1) | — | — | — | — | — | — | |||||||||||||||||
Balance, March 31, 2018 | $ | — | $ | 110 | $ | 1,734 | $ | 357 | $ | (3,977 | ) | $ | (14 | ) | |||||||||
Balance, January 1, 2017 | $ | 1 | $ | 88 | $ | 1,735 | $ | 313 | $ | (5,580 | ) | $ | (25 | ) | |||||||||
Total gains (losses), realized and unrealized, included in: | |||||||||||||||||||||||
Income (loss) as: | |||||||||||||||||||||||
Net investment income (loss) | — | — | — | — | — | — | |||||||||||||||||
Investment gains (losses), net | — | (9 | ) | — | 10 | — | — | ||||||||||||||||
Net derivative gains (losses) | — | — | (71 | ) | 507 | — | |||||||||||||||||
Subtotal | — | (9 | ) | (71 | ) | 10 | 507 | — | |||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||
Purchases(2) | — | 4 | 9 | 3 | (81 | ) | — | ||||||||||||||||
Sales(3) | — | (1 | ) | (14 | ) | (1 | ) | 8 | — | ||||||||||||||
Settlements(4) | — | — | (1 | ) | — | 1 | |||||||||||||||||
Activity related to consolidated VIEs | — | (9 | ) | — | — | — | — | ||||||||||||||||
Transfers into Level 3(1) | — | 1 | — | 1 | — | — | |||||||||||||||||
Transfers out of Level 3(1) | — | — | — | — | — | ||||||||||||||||||
Balance, March 31, 2017 | $ | 1 | $ | 74 | $ | 1,659 | $ | 325 | $ | (5,146 | ) | $ | (24 | ) |
Corporate | State and Political Subdivisions | Asset-backed | CMBS | Trading Securities, at Fair Value | Fixed maturities, at FVO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2022 | $ | 1,767 | $ | 30 | $ | 18 | $ | 25 | $ | 52 | $ | 423 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains and (losses), realized and unrealized, included in: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) as: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 1 | — | — | — | — | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment gains (losses), net | (3) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | (2) | — | — | — | — | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (71) | (1) | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 218 | — | (3) | 7 | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (34) | — | — | — | — | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (1) | 25 | — | — | — | — | (84) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (1) | 8 | — | (6) | — | — | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | 1,911 | $ | 29 | $ | 10 | $ | 32 | $ | 52 | $ | 374 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) | $ | (70) | $ | (1) | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, July 1, 2021 | $ | 1,261 | $ | 37 | $ | 128 | $ | 10 | $ | 39 | $ | 148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains and (losses), realized and unrealized, included in: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) as: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 1 | — | — | — | — | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment gains (losses), net | (2) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | (1) | — | — | — | — | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 4 | (1) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 262 | — | (121) | — | — | 62 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (71) | — | (2) | — | — | (17) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (1) | (2) | — | — | — | — | (14) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (1) | — | — | — | — | — | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | 1,453 | $ | 36 | $ | 5 | $ | 10 | $ | 39 | $ | 182 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) | $ | 4 | $ | (1) | $ | — | $ | — | $ | — | $ | — |
Corporate | State and Political Subdivisions | Asset-backed | CMBS | Trading Securities, at Fair Value | Fixed maturities, at FVO | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 1,504 | $ | 35 | $ | 8 | $ | 20 | $ | 65 | $ | 201 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains and (losses), realized and unrealized, included in: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) as: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 3 | — | — | — | — | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment gains (losses), net | (3) | — | — | — | (13) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | — | — | — | — | (13) | (20) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (152) | (5) | — | (2) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 777 | — | 9 | 14 | — | 159 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (195) | (1) | (1) | — | — | (36) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (1) | 90 | — | — | — | — | 101 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (1) | (113) | — | (6) | — | — | (31) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | 1,911 | $ | 29 | $ | 10 | $ | 32 | $ | 52 | $ | 374 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) | $ | — | $ | — | $ | — | $ | — | $ | (13) | $ | (9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) | $ | (149) | $ | (5) | $ | — | $ | (2) | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, January 1, 2021 | $ | 1,702 | $ | 39 | $ | 20 | $ | — | $ | 39 | $ | 80 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains and (losses), realized and unrealized, included in: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) as: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 4 | — | — | — | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment gains (losses), net | (14) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | (10) | — | — | — | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 30 | (2) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 721 | — | 3 | 10 | — | 192 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | (277) | (1) | (18) | — | — | (26) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 (1) | — | — | — | — | — | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 (1) | (713) | — | — | — | — | (69) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | 1,453 | $ | 36 | $ | 5 | $ | 10 | $ | 39 | $ | 182 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2) | $ | 30 | $ | (2) | $ | — | $ | — | $ | — | $ | — |
Other Equity Investments (7) | GMIB Reinsurance Contract Asset | Amounts Due from Reinsurers | Separate Accounts Assets | GMxB Derivative Features Liability | Contingent Payment Arrangement | ||||||||||||||||||||||||||||||
Balance, July 1, 2022 | $ | 67 | $ | 1,498 | $ | 4,681 | $ | 1 | $ | (6,180) | $ | (42) | |||||||||||||||||||||||
Realized and unrealized gains (losses), included in Net income (loss) as: | |||||||||||||||||||||||||||||||||||
Investment gains (losses), reported in net investment income | (1) | — | — | — | — | — | |||||||||||||||||||||||||||||
Net derivative gains (losses) (1) | — | (196) | (364) | — | 429 | — | |||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | (1) | (196) | (364) | — | 429 | — | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Purchases (2) | (49) | 10 | 28 | — | (111) | (228) | |||||||||||||||||||||||||||||
Sales (3) | — | (23) | (33) | — | 37 | — | |||||||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | — | — | — | — | — | (3) | |||||||||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | 17 | $ | 1,289 | $ | 4,312 | $ | 1 | $ | (5,825) | $ | (273) | |||||||||||||||||||||||
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) | $ | (1) | $ | (196) | $ | (364) | $ | — | $ | 428 | $ | — | |||||||||||||||||||||||
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Balance, July 1, 2021 | $ | 103 | $ | 2,026 | $ | 5,510 | $ | 1 | $ | (8,455) | $ | (38) | |||||||||||||||||||||||
Realized and unrealized gains (losses), included in Net income (loss) as: | |||||||||||||||||||||||||||||||||||
Investment gains (losses), reported in net investment income | 1 | — | — | — | — | — | |||||||||||||||||||||||||||||
Net derivative gains (losses) (1) (5) | — | (84) | 344 | — | (395) | — | |||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | 1 | (84) | 344 | — | (395) | — | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Purchases (2) | 1 | 11 | 31 | (1) | (108) | 1 | |||||||||||||||||||||||||||||
Sales (3) | (91) | (16) | (16) | — | 20 | — | |||||||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | 1 | — | — | — | — | (1) | |||||||||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | 15 | $ | 1,937 | $ | 5,869 | $ | — | $ | (8,938) | $ | (38) | |||||||||||||||||||||||
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) | $ | 1 | $ | (84) | $ | 344 | $ | — | $ | (395) | $ | — | |||||||||||||||||||||||
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Other Equity Investments (7) | GMIB Reinsurance Contract Asset | Amounts Due from Reinsurers | Separate Accounts Assets | GMxB Derivative Features Liability | Contingent Payment Arrangement | ||||||||||||||||||||||||||||||
Balance, January 1, 2022 | $ | 16 | $ | 1,848 | $ | 5,815 | $ | 1 | $ | (8,525) | $ | (38) | |||||||||||||||||||||||
Realized and unrealized gains (losses), included in Net income (loss) as: | |||||||||||||||||||||||||||||||||||
Investment gains (losses), reported in net investment income | (1) | — | — | — | — | — | |||||||||||||||||||||||||||||
Net derivative gains (losses) (1) | — | (535) | (1,506) | — | 2,943 | — | |||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | (1) | (535) | (1,506) | — | 2,943 | — | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Purchases (2) | 8 | 31 | 89 | — | (347) | (230) | |||||||||||||||||||||||||||||
Sales (3) | — | (55) | (86) | — | 104 | — | |||||||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | (3) | — | — | — | — | (5) | |||||||||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (3) | — | — | — | — | — | |||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | 17 | $ | 1,289 | $ | 4,312 | $ | 1 | $ | (5,825) | $ | (273) | |||||||||||||||||||||||
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) | $ | (1) | $ | (535) | $ | (1,506) | $ | — | $ | 2,943 | $ | — | |||||||||||||||||||||||
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Balance, January 1, 2021 | $ | 84 | $ | 2,488 | $ | — | $ | 1 | $ | (11,131) | $ | (28) | |||||||||||||||||||||||
Realized and unrealized gains (losses), included in Net income (loss) as: | |||||||||||||||||||||||||||||||||||
Investment gains (losses), reported in net investment income | 20 | — | — | — | — | — | |||||||||||||||||||||||||||||
Net derivative gains (losses) (1) (5) | — | (542) | 586 | — | 2,340 | — | |||||||||||||||||||||||||||||
Total realized and unrealized gains (losses) | 20 | (542) | 586 | — | 2,340 | — | |||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Purchases (2) | 4 | 32 | 41 | — | (348) | (7) | |||||||||||||||||||||||||||||
Sales (3) | (92) | (41) | (17) | — | 61 | — | |||||||||||||||||||||||||||||
Other | — | — | 5,259 | — | — | — | |||||||||||||||||||||||||||||
Activity related to consolidated VIEs/VOEs | (1) | — | — | — | — | (3) | |||||||||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | (1) | 140 | — | |||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | 15 | $ | 1,937 | $ | 5,869 | $ | — | $ | (8,938) | $ | (38) | |||||||||||||||||||||||
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (6) | $ | 2 | $ | (542) | $ | 586 | $ | — | $ | 2,340 | $ | — | |||||||||||||||||||||||
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (6) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Income (Loss) | |||||||||||
Investment Gains (Losses), Net | Net Derivative Gains (losses) | OCI | |||||||||
(in millions) | |||||||||||
Level 3 Instruments | |||||||||||
First Quarter of 2018 | |||||||||||
Held at March 31, 2018: | |||||||||||
Change in unrealized gains (losses): | |||||||||||
Fixed maturities, available-for-sale: | |||||||||||
Corporate | $ | — | $ | — | $ | (19 | ) | ||||
State and political subdivisions | — | — | (1 | ) | |||||||
Asset-backed | — | — | — | ||||||||
Subtotal | $ | — | $ | — | $ | (20 | ) | ||||
GMIB reinsurance contracts | — | (159 | ) | — | |||||||
Separate Accounts’ assets(1) | 7 | — | — | ||||||||
GMxB derivative features’ liability | — | 460 | — | ||||||||
Total | $ | 7 | $ | 301 | $ | (20 | ) | ||||
Level 3 Instruments | |||||||||||
First Quarter of 2017 | |||||||||||
Held at March 31, 2017: | |||||||||||
Change in unrealized gains (losses): | |||||||||||
Fixed maturities, available-for-sale: | |||||||||||
Corporate | $ | — | $ | — | $ | 45 | |||||
Commercial mortgage-backed | — | — | 13 | ||||||||
Asset-backed | — | — | 5 | ||||||||
Subtotal | $ | — | $ | — | $ | 63 | |||||
GMIB reinsurance contracts | — | (71 | ) | — | |||||||
Separate Accounts’ assets(1) | 10 | — | — | ||||||||
GMxB derivative features’ liability | — | 507 | — | ||||||||
Total | $ | 10 | $ | 436 | $ | 63 |
Fair Value | Valuation Technique | Significant Unobservable Input | Range | Weighted Average | |||||||
(in millions) | |||||||||||
Assets: | |||||||||||
Investments: | |||||||||||
Fixed maturities, available-for-sale: | |||||||||||
Corporate | $ | 52 | Matrix pricing model | Spread over the industry-Specific benchmark yield curve | 0 - 565 bps | 112 bps | |||||
788 | Market comparable companies | EBITDA multiples Discount rate Cash flow multiples | 6.2x - 30.7x 7.2% - 17.0% 9.0x - 17.7x | 13x 11.3% 13.1x | |||||||
Other equity investments | 38 | Discounted cash flow | Earnings Multiple Discounts factor Discount years | 10.8x 10.0% 12 | |||||||
Separate Accounts’ assets | 332 | Third party appraisal | Capitalization Rate Exit capitalization Rate Discount Rate | 4.6% 5.6% 6.6% | |||||||
1 | Discounted cash flow | Spread over U.S. Treasury curve Discount factor | 228 bps 4.624% | ||||||||
GMIB reinsurance contract asset | 1,734 | Discounted cash flow | Lapse Rates Withdrawal Rates Utilization Rates Non-performance risk Volatility rates - Equity | 1% - 6.27% 0.63% -13.94% 0% - 16% 6 - 14 bps 11%-30% | |||||||
Liabilities: | |||||||||||
GMIBNLG | 3,715 | Discounted cash flow | Non-performance risk Lapse Rates Withdrawal Rates Annuitization NLG Forfeiture Rates Long-term equity Volatility | 1.0% 0.8% - 26.2% 0.0% - 12.4% 0.0% - 16.0% 0.55% - 2.1% 20.0% | |||||||
Assumed GMIB Reinsurance Contracts | 173 | Discounted cash flow | Lapse Rates Withdrawal Rates (Age 0-85) Withdrawal Rates (Age 86+) Utilization Rates Non-performance risk Volatility rates - Equity | 1.1% - 13.3% 0.7% - 22.2% 1.3% - 100% 0% - 30% 1.47% 11%-30% | |||||||
GWBL/GMWB | 121 | Discounted cash flow | Lapse Rates Withdrawal Rates Utilization Rates Volatility rates - Equity | 0.5%-5.7% 0.0%-7.0% 100% after delay 11%-30% | |||||||
GIB | (36 | ) | Discounted cash flow | Lapse Rates Withdrawal Rates Utilization Rates Volatility rates - Equity | 0.5%-5.7% 0%-8% 0% - 16% 11%-30% | ||||||
GMAB | 4 | Discounted cash flow | Lapse Rates Volatility rates - Equity | 0.5%-11.0% 11%-30% |
Fair Value | Valuation Technique | Significant Unobservable Input | Range | Weighted Average (2) | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||||||||||||||
Corporate | $ | 241 | Matrix pricing model | Spread over Benchmark | 20 bps - 797 bps | 174 bps | |||||||||||||||||||||||
917 | Market comparable companies | EBITDA multiples Discount rate Cash flow multiples Loan to value | 5.7x - 38.5x 5.5% - 41.5% 0.5x - 12.0x 0.0% - 46.7% | 14.1x 8.3% 6.4x 26.3% | |||||||||||||||||||||||||
Trading Securities, at Fair Value | 52 | Discounted Cash Flow | Earnings multiple Discount factor Discount years | 7.3x 10.0% 11 | |||||||||||||||||||||||||
Other equity investments | 4 | Market comparable companies | Revenue multiple | 0.5x - 9.9x | 2.8x | ||||||||||||||||||||||||
GMIB reinsurance contract asset | 1,289 | Discounted cash flow | Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 | 0.38%-22.66% 0.14%-10.02% 0.04%-60.54% 101 bps - 167 bps 14%-35% 0.01%-0.17% 0.06%-0.52% 0.32%-40.00% | 2.92% 1.02% 5.61% 103 bps 25% 3.09% (same for all ages) (same for all ages) | ||||||||||||||||||||||||
Amount Due from Reinsurers | 4,312 | Discounted Cash Flow | Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 | 0.38%-22.66% 0.14%-10.02% 0.04%-60.54% 63 bps 14%-35% 0.01%-0.17% 0.06%-0.52% 0.32%-40.00% | 1.93% 1.38% 8.27% 63 bps 25% 2.28% (same for all ages) (same for all ages) | ||||||||||||||||||||||||
Liabilities: |
Fair Value | Valuation Technique | Significant Unobservable Input | Range | Weighted Average (2) | |||||||||||||||||||||||||
AB Contingent Consideration Payable | 273 | Discounted cash flow | Expected revenue growth rates Discount rate | 2.0% - 83.9% 1.9% - 10.4% | 11.5% 4.5% | ||||||||||||||||||||||||
GMIB NLG | 5,817 | Discounted cash flow | Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41-60 Ages 61-115 | 186 bps 0.38%-28.79% 0.14%-10.02% 0.04%-100.00% 0.01%-0.18% 0.07%-0.56% 0.44%-43.60% | 186 bps 4.23% 1.27% 6.10% 1.71% (same for all ages) (same for all ages) | ||||||||||||||||||||||||
GWBL/GMWB | 73 | Discounted cash flow | Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps) | 0.50%-22.66% 0.00%-8.00% 100% once starting 14%-35% 186 bps | 2.92% 1.02% 25% | ||||||||||||||||||||||||
GIB | (64) | Discounted cash flow | Lapse rates Withdrawal Rates Utilization Rates Volatility rates - Equity Non-performance risk(bps) | 0.50%-22.66% 0.26%-2.10% 0.04%-100.00% 14% - 35% 186 bps | 2.92% 1.02% 5.61% 25% | ||||||||||||||||||||||||
GMAB | (1) | Discounted cash flow | Lapse rates Volatility rates - Equity Non-performance risk(bps) | 0.50%-22.66% 14%-35% 186 bps | 2.92% 25% |
Fair Value | Valuation Technique | Significant Unobservable Input | Range | Weighted Average (2) | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||
Fixed maturities, AFS: | |||||||||||||||||||||||||||||
Corporate | $ | 258 | Matrix pricing model | Spread over benchmark | 20 bps - 270 bps | 144 bps | |||||||||||||||||||||||
888 | Market comparable companies | EBITDA multiples Discount rate Cash flow multiples Loan to value | 4.9x - 62.3x 6.2% - 21.5% 0.5x-10.0x 3.1%-63.4% | 13.0x 9.1% 5.5x 30.8% | |||||||||||||||||||||||||
Trading Securities, at Fair Value | 65 | Discounted cash flow | Earnings multiple Discounts factor Discount years | 7.3x 10.00% 11 | |||||||||||||||||||||||||
Other equity investments | 4 | Market comparable companies | Revenue multiple | 7.8x - 10.3x | 9.5x |
Fair Value | Valuation Technique | Significant Unobservable Input | Range | Weighted Average | ||||||||
(in millions) | ||||||||||||
Assets: | ||||||||||||
Investments: | ||||||||||||
Fixed maturities, available-for-sale: | ||||||||||||
Corporate | $ | 53 | Matrix pricing model | Spread over the industry-specific benchmark yield curve | 0 bps-565 bps | 125 bps | ||||||
789 | Market comparable companies | EBITDA multiples Discount Rate Cash flow Multiples | 5.3x-27.9x 7.2% - 17.0% 9.0x - 17.7x | 12.9x 11.1% 13.1x | ||||||||
Other equity investments | 38 | Discounted cash flow | Earnings Multiple Discounts factor Discount years | 10.8x 10.0% 12 | ||||||||
Separate Accounts’ assets | 326 | Third party appraisal | Capitalization Rate Exit capitalization Rate Discount Rate | 4.6% 5.6% 6.6% | ||||||||
1 | Discounted cash flow | Spread over U.S. Treasury curve Discount factor | 243 bps 4.409% | |||||||||
GMIB reinsurance contract asset | 1,894 | Discounted Cash flow | Lapse Rates Withdrawal Rates Utilization Rates Non-performance risk Volatility rates - Equity | 1.0% - 6.3% 0.0% - 8.0% 0.0% - 16.0% 5bps - 10bps 9.9% - 30.9% | ||||||||
Liabilities: | ||||||||||||
GMIBNLG | 4,056 | Discounted cash flow | Non-performance risk Lapse Rates Withdrawal Rates Utilization Rates NLG Forfeiture Rates Long -term Equity Volatility | 1.0% 0.8% - 26.2% 0.0% - 12.4% 0.0% - 16.0% 0.55% - 2.1% 20.0% | ||||||||
Assumed GMIB Reinsurance Contracts | 194 | Discounted cash flow | Lapse Rates Withdrawal Rates (Age 0-85) Withdrawal Rates (Age 86+) Utilization Rates Non-performance risk Volatility rates - Equity | 1.1% - 13.3% 0.7% - 22.2% 1.3% - 100% 0 - 30% 1.3% 9.9% - 30.9% | ||||||||
GWBL/GMWB | 130 | Discounted cash flow | Lapse Rates Withdrawal Rates Utilization Rates Volatility rates - Equity | 0.9% - 5.7% 0.0% - 7.0% 100% after delay 9.9% - 30.9% | ||||||||
GIB | (27 | ) | Discounted cash flow | Lapse Rates Withdrawal Rates Utilization Rates Volatility rates - Equity | 0.9% - 5.7% 0.0% - 7.0% 0.0% - 16.0% 9.9% - 30.9% | |||||||
GMAB | 5 | Discounted cash flow | Lapse Rates Volatility rates - Equity | 0.5% - 11.0% 9.9% - 30.9% |
Fair Value | Valuation Technique | Significant Unobservable Input | Range | Weighted Average (2) | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
GMIB reinsurance contract asset | 1,848 | Discounted cash flow | Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 | 57 bps - 93 bps 0.45% - 20.86% 0.27% - 8.66% 0.04% - 60.44% 11% - 31% 0.01% - 0.17% 0.06% - 0.53% 0.31% - 40.00% | 60 bps 2.65% 0.93% 5.27% 24% 2.79% (same for all ages) (same for all ages) | ||||||||||||||||||||||||
Amount Due from Reinsurers | 5,813 | Discounted Cash Flow | Lapse rates Withdrawal Rates GMIB Utilization Rates Non-performance risk (bps) Volatility rates - Equity Mortality: Ages 0-40 Ages 41-60 Ages 61-115 | 0.45%-20.86% 0.27%-8.66% 0.04%-60.44% 37 bps 11%-31% 0.01%-0.17% 0.06%-0.53% 0.31%-40.00% | 1.70% 1.18% 7.20% 37 bps 24% 2.17% (same for all ages) (same for all ages) | ||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
AB Contingent Consideration Payable | 38 | Discounted cash flow | Expected revenue growth rates Discount rate | 2.0% - 83.9% 1.9% - 10.4% | 11.9% 7.0% | ||||||||||||||||||||||||
GMIB NLG | 8,503 | Discounted cash flow | Non-performance risk Lapse rates Withdrawal rates Annuitization rates Mortality rates (1): Ages 0 - 40 Ages 41 - 60 Ages 60 - 115 | 111 bps 1.04% - 23.57% 0.27% - 8.66% 0.03% -100.00% 0.01% - 0.19% 0.07% - 0.57% 0.44% - 43.60% | 111 bps 3.55% 1.04% 5.24% 1.62% (same for all ages) (same for all ages) | ||||||||||||||||||||||||
GWBL/GMWB | 99 | Discounted cash flow | Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity | 111 bps 0.60%-20.86% 0.00%-8.00% 100% once starting 11%-31% | 2.65% 0.93% 24% | ||||||||||||||||||||||||
GIB | (75) | Discounted cash flow | Non-performance risk Lapse rates Withdrawal rates Utilization rates Volatility rates - Equity | 111 bps 0.60%-20.86% 0.13%-8.66% 0.04%-100.00% 11%-31% | 2.65% 0.93% 5.27% 24% | ||||||||||||||||||||||||
GMAB | (3) | Discounted cash flow | Non-performance risk Lapse rates Volatility rates - Equity | 111 bps 0.60%-20.86% 11%-31% | 2.65% 24% |
Carrying Value | Fair Value | ||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
September 30, 2022: | |||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 15,688 | $ | — | $ | — | $ | 13,946 | $ | 13,946 | |||||||||||||||||||
Policy loans | $ | 4,018 | $ | — | $ | — | $ | 4,963 | $ | 4,963 | |||||||||||||||||||
Policyholders’ liabilities: Investment contracts | $ | 2,023 | $ | — | $ | — | $ | 1,838 | $ | 1,838 | |||||||||||||||||||
FHLB funding agreements | $ | 7,830 | $ | — | $ | 7,709 | $ | — | $ | 7,709 | |||||||||||||||||||
FABN funding agreements | $ | 6,613 | $ | — | $ | 5,914 | $ | — | $ | 5,914 | |||||||||||||||||||
Short-term and long-term debt (1) | $ | 3,840 | $ | — | $ | 3,559 | $ | — | $ | 3,559 | |||||||||||||||||||
Separate Accounts liabilities | $ | 9,806 | $ | — | $ | — | $ | 9,806 | $ | 9,806 | |||||||||||||||||||
December 31, 2021: | |||||||||||||||||||||||||||||
Mortgage loans on real estate | $ | 14,033 | $ | — | $ | — | $ | 14,308 | $ | 14,308 | |||||||||||||||||||
Policy loans | $ | 4,024 | $ | — | $ | — | $ | 5,050 | $ | 5,050 | |||||||||||||||||||
Policyholders’ liabilities: Investment contracts | $ | 2,035 | $ | — | $ | — | $ | 2,103 | $ | 2,103 | |||||||||||||||||||
FHLB funding agreements | $ | 6,647 | $ | — | $ | 6,679 | $ | — | $ | 6,679 | |||||||||||||||||||
FABN funding agreements | $ | 6,689 | $ | — | $ | 6,626 | $ | — | $ | 6,626 | |||||||||||||||||||
Short-term and long-term debt (1) | $ | 3,839 | $ | — | $ | 4,544 | $ | — | $ | 4,544 | |||||||||||||||||||
Separate Accounts liabilities | $ | 11,620 | $ | — | $ | — | $ | 11,620 | $ | 11,620 |
Carrying Value | Fair Value | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(in millions) | |||||||||||||||||||
March 31, 2018: | |||||||||||||||||||
Mortgage loans on real estate | $ | 11,333 | $ | — | $ | — | $ | 11,128 | $ | 11,128 | |||||||||
Loans to affiliates | 885 | — | 885 | — | 885 | ||||||||||||||
Policyholders’ liabilities: Investment contracts | 2,222 | — | — | 2,283 | 2,283 | ||||||||||||||
FHLBNY Funding Agreements | 3,014 | — | 2,962 | — | 2,962 | ||||||||||||||
Short term and long-term debt | 2,373 | — | 2,449 | — | 2,449 | ||||||||||||||
Loans from affiliates | 2,530 | — | 2,530 | — | 2,530 | ||||||||||||||
Policy loans | 3,776 | — | — | 4,330 | 4,330 | ||||||||||||||
Separate Account Liabilities | 7,647 | — | — | 7,647 | 7,647 | ||||||||||||||
December 31, 2017: | |||||||||||||||||||
Mortgage loans on real estate | $ | 10,952 | $ | — | $ | — | $ | 10,912 | $ | 10,912 | |||||||||
Loans to affiliates | 1,230 | — | 1,230 | — | 1,230 | ||||||||||||||
Policyholders’ liabilities: Investment contracts | 2,224 | — | — | 2,329 | 2,329 | ||||||||||||||
FHLBNY Funding Agreements | 3,014 | — | 3,020 | — | 3,020 | ||||||||||||||
Short term and long-term debt | 2,408 | — | 2,500 | — | 2,500 | ||||||||||||||
Loans from affiliates | 3,622 | — | 3,622 | — | 3,622 | ||||||||||||||
Policy loans | 3,819 | — | — | 4,754 | 4,754 | ||||||||||||||
Separate Account Liabilities | 7,537 | — | — | 7,537 | 7,537 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Investment management, advisory and service fees: | |||||||
Base fees | $ | 724 | $ | 643 | |||
Performance-based fees | 6 | 6 | |||||
Research services | 114 | 113 | |||||
Distribution services | 180 | 166 | |||||
Other revenues: | |||||||
Shareholder services | 20 | 18 | |||||
Other | 6 | 4 | |||||
Total investment management and service fees | $ | 1,050 | $ | 950 | |||
Other income | $ | 112 | $ | 101 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 6 | $ | 7 | |||||||||||||||||||||||||||||||||
Interest cost | 21 | 13 | 49 | 40 | |||||||||||||||||||||||||||||||||||||
Expected return on assets | (40) | (40) | (119) | (116) | |||||||||||||||||||||||||||||||||||||
Prior Period Svc Cost Amortization | (1) | 1 | (2) | — | |||||||||||||||||||||||||||||||||||||
Actuarial (gain) loss | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||
Net amortization | 15 | 23 | 55 | 81 | |||||||||||||||||||||||||||||||||||||
Impact of settlement | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||
Net Periodic Pension Expense | $ | (3) | $ | 1 | $ | (10) | $ | 15 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Net Periodic Pension Expense: | |||||||
(Qualified and Non-qualified Plans) | |||||||
Service cost | $ | 2 | $ | 3 | |||
Interest cost | 25 | 26 | |||||
Expected return on assets | (45 | ) | (43 | ) | |||
Net amortization | 29 | 32 | |||||
Partial settlement | 100 | — | |||||
Total | $ | 111 | $ | 18 | |||
Net Postretirement Benefits Costs: | |||||||
Service cost | $ | — | $ | — | |||
Interest cost | 4 | 4 | |||||
Net amortization | 2 | 2 | |||||
Total | $ | 6 | $ | 6 | |||
Net Postemployment Benefits Costs: | |||||||
Service cost | $ | 1 | $ | 1 | |||
Interest cost | — | — | |||||
Net amortization | — | — | |||||
Total | $ | 1 | $ | 1 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Performance Shares | $ | 55 | $ | 5,710 | |||
Stock Options (Other than AB stock options) | 114 | 19 | |||||
Restricted Awards | 12,484 | 7,693 | |||||
Other compensation plans(1) | (904 | ) | 293 | ||||
Total Compensation Expenses | $ | 11,749 | $ | 13,715 |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Series | Shares Authorized | Shares Issued | Shares Outstanding | Shares Authorized | Shares Issued | Shares Outstanding | ||||||||||||||||||||||||||||||||
Series A | 32,000 | 32,000 | 32,000 | 32,000 | 32,000 | 32,000 | ||||||||||||||||||||||||||||||||
Series B | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||||||||||||||||||
Series C | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | ||||||||||||||||||||||||||||||||
Total | 64,000 | 64,000 | 64,000 | 64,000 | 64,000 | 64,000 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Series A dividends declared | $ | 328 | $ | 328 | $ | 984 | $ | 984 | |||||||||||||||||||||
Series B dividends declared | $ | — | $ | — | $ | 619 | $ | 619 | |||||||||||||||||||||
Series C dividends declared | $ | 269 | $ | 269 | $ | 806 | $ | 738 | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
Dividends declared | $ | 0.20 | $ | 0.18 | $ | 0.58 | $ | 0.53 | |||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2022 | 2021 | ||||||||||||||||
(in millions) | |||||||||||||||||
Unrealized gains (losses) on investments | $ | (7,210) | $ | 2,684 | |||||||||||||
Defined benefit pension plans | (608) | (669) | |||||||||||||||
Foreign currency translation adjustments | (120) | (45) | |||||||||||||||
Total accumulated other comprehensive income (loss) | (7,938) | 1,970 | |||||||||||||||
Less: Accumulated other comprehensive income (loss) attributable to noncontrolling interest | (62) | (34) | |||||||||||||||
Accumulated other comprehensive income (loss) attributable to Holdings | $ | (7,876) | $ | 2,004 |
March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Unrealized gains (losses) on investments | $ | (130 | ) | $ | 244 | ||
Foreign currency translation adjustments | (40 | ) | (69 | ) | |||
Defined benefit pension plans | (822 | ) | (1,030 | ) | |||
Total accumulated other comprehensive income (loss) | (992 | ) | (855 | ) | |||
Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest | 46 | 64 | |||||
Accumulated other comprehensive income (loss) attributable to Holdings | $ | (946 | ) | $ | (791 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
2018 | 2017 | (in millions) | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments: | ||||||||||||||||||||||||||||||||||||
Foreign currency translation gains (losses) arising during the period | $ | (5 | ) | $ | 8 | |||||||||||||||||||||||||||||||
(Gains) losses reclassified into net income (loss) during the period | — | — | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | (5 | ) | 8 | |||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on investments: | ||||||||||||||||||||||||||||||||||||
Change in net unrealized gains (losses) on investments: | Change in net unrealized gains (losses) on investments: | |||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) arising during the period | (86 | ) | 155 | Net unrealized gains (losses) arising during the period | $ | (3,195) | $ | (310) | $ | (12,929) | $ | (2,547) | ||||||||||||||||||||||||
(Gains) losses reclassified into net income (loss) during the period(1) | (1,223 | ) | (23 | ) | (Gains) losses reclassified into net income (loss) during the period (1) | 245 | (131) | 678 | (617) | |||||||||||||||||||||||||||
Net unrealized gains (losses) on investments | (1,309 | ) | 132 | Net unrealized gains (losses) on investments | (2,950) | (441) | (12,251) | (3,164) | ||||||||||||||||||||||||||||
Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 349 | (28 | ) | Adjustments for policyholders’ liabilities, DAC, insurance liability loss recognition and other | 624 | 318 | 2,357 | 1,108 | ||||||||||||||||||||||||||||
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(255) and $56) | (960 | ) | 104 | |||||||||||||||||||||||||||||||||
Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(619), $(32), $(2,630) and $(546)) | Change in unrealized gains (losses), net of adjustments (net of deferred income tax expense (benefit) of $(619), $(32), $(2,630) and $(546)) | (2,326) | (123) | (9,894) | (2,056) | |||||||||||||||||||||||||||||||
Change in defined benefit plans: | Change in defined benefit plans: | |||||||||||||||||||||||||||||||||||
Less: reclassification adjustments to net income (loss) for: | ||||||||||||||||||||||||||||||||||||
Amortization of net actuarial (gains) losses included in: | ||||||||||||||||||||||||||||||||||||
Amortization of net prior service cost included in net periodic cost | 133 | 25 | ||||||||||||||||||||||||||||||||||
Change in defined benefit plans (net of deferred income tax expense (benefit) of $35 and $12) | 133 | 25 | ||||||||||||||||||||||||||||||||||
Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | Reclassification to Net income (loss) of amortization of net prior service credit included in net periodic cost | 16 | 22 | 61 | 77 | |||||||||||||||||||||||||||||||
Change in defined benefit plans (net of deferred income tax expense (benefit) of $(4), $6, $(13), and $20) | Change in defined benefit plans (net of deferred income tax expense (benefit) of $(4), $6, $(13), and $20) | 16 | 22 | 61 | 77 | |||||||||||||||||||||||||||||||
Foreign currency translation adjustments: | Foreign currency translation adjustments: | |||||||||||||||||||||||||||||||||||
Foreign currency translation gains (losses) arising during the period | Foreign currency translation gains (losses) arising during the period | (30) | (9) | (75) | (13) | |||||||||||||||||||||||||||||||
Foreign currency translation adjustment | Foreign currency translation adjustment | (30) | (9) | (75) | (13) | |||||||||||||||||||||||||||||||
Total other comprehensive income (loss), net of income taxes | (832 | ) | 137 | Total other comprehensive income (loss), net of income taxes | (2,340) | (110) | (9,908) | (1,992) | ||||||||||||||||||||||||||||
Less: Other comprehensive (income) loss attributable to noncontrolling interest | (6 | ) | (7 | ) | ||||||||||||||||||||||||||||||||
Less: Other comprehensive income (loss) attributable to noncontrolling interest | Less: Other comprehensive income (loss) attributable to noncontrolling interest | (12) | (3) | (28) | (5) | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) attributable to Holdings | $ | (838 | ) | $ | 130 | Other comprehensive income (loss) attributable to Holdings | $ | (2,328) | $ | (107) | $ | (9,880) | $ | (1,987) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 348 | $ | 42 | $ | 468 | $ | 143 | ||||||||||||||||||||||||||||||
Net earnings (loss) attributable to redeemable noncontrolling interests | (9) | — | (65) | 4 | ||||||||||||||||||||||||||||||||||
Purchase/change of redeemable noncontrolling interests | 15 | 101 | (49) | (4) | ||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 354 | $ | 143 | $ | 354 | $ | 143 |
Three Months Ended March 31, | Twelve Months Ended December 31, | ||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Severance | |||||||
Balance, beginning of year | $ | 23 | $ | 22 | |||
Additions | 7 | 17 | |||||
Cash payments | (3 | ) | (14 | ) | |||
Other reductions | — | (2 | ) | ||||
Balance, end of Year | $ | 27 | $ | 23 |
Three Months Ended March 31, | Twelve Months Ended December 31, | ||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Leases | |||||||
Balance, beginning of year | $ | 165 | $ | 170 | |||
Expense incurred | — | 29 | |||||
Deferred rent | 2 | 10 | |||||
Payments made | (11 | ) | (48 | ) | |||
Interest accretion | 1 | 4 | |||||
Balance, end of year | $ | 157 | $ | 165 |
Outstanding Balance at December 31, 2021 | Issued During the Period | Repaid During the Period | Long-term Agreements Maturing Within One Year | Long-term Agreements Maturing Within Five Years | Outstanding Balance at September 30, 2022 | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
Short-term funding agreements: | |||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 5,353 | $ | 40,964 | $ | (41,132) | $ | 153 | $ | — | $ | 5,338 | |||||||||||||||||||||||
Long-term funding agreements: | |||||||||||||||||||||||||||||||||||
Due in years two through five | 1,290 | 647 | — | (153) | — | 1,784 | |||||||||||||||||||||||||||||
Due in more than five years | — | 705 | — | — | — | 705 | |||||||||||||||||||||||||||||
Total long-term funding agreements | 1,290 | 1,352 | — | (153) | — | 2,489 | |||||||||||||||||||||||||||||
Total funding agreements (1) | $ | 6,643 | $ | 42,316 | $ | (41,132) | $ | — | $ | — | $ | 7,827 | |||||||||||||||||||||||
Outstanding balance at end of period | Maturity of Outstanding balance | Issued during the period | Repaid during the period | ||||||||||
March 31, 2018: | (in millions) | ||||||||||||
Short-term FHLBNY funding agreements | $ | 500 | less than one month | $ | 1,500 | $ | 1,500 | ||||||
Long-term FHLBNY funding agreements | 1,417 | less than 4 years | — | — | |||||||||
204 | Less than 5 years | — | — | ||||||||||
879 | greater than five years | — | — | ||||||||||
Total long-term funding agreements | 2,500 | — | — | ||||||||||
Total FHLBNY funding agreements at March 31, 2018 | $ | 3,000 | $ | 1,500 | $ | 1,500 | |||||||
December 31, 2017: | |||||||||||||
Short-term FHLBNY funding agreements | $ | 500 | Less than one month | $ | 6,000 | $ | 6,000 | ||||||
Long-term FHLBNY funding agreements | 1,244 | Less than 4 years | 324 | — | |||||||||
377 | Less than 5 years | 303 | — | ||||||||||
879 | Greater than five years | 135 | — | ||||||||||
Total long-term funding agreements | 2,500 | 762 | — | ||||||||||
Total FHLBNY funding agreements at December 31, 2017 | $ | 3,000 | $ | 6,762 | $ | 6,000 |
Outstanding Balance at December 31, 2021 | Issued During the Period | Repaid During the Period | Long-term Agreements Maturing Within One Year | Long-term Agreements Maturing Within Five Years | Foreign Currency Transaction Adjustment | Outstanding Balance at September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Short-term funding agreements: | |||||||||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | $ | — | $ | 1,000 | $ | — | $ | — | $ | 1,000 | |||||||||||||||||||||||||||||||||
Long-term funding agreements: | |||||||||||||||||||||||||||||||||||||||||||||||
Due in years two through five | 4,600 | — | — | (1,000) | 500 | — | 4,100 | ||||||||||||||||||||||||||||||||||||||||
Due in more than five years | 2,119 | — | — | — | (500) | (79) | 1,540 | ||||||||||||||||||||||||||||||||||||||||
Total long-term funding agreements | 6,719 | — | — | (1,000) | — | (79) | 5,640 | ||||||||||||||||||||||||||||||||||||||||
Total funding agreements (1) | $ | 6,719 | $ | — | $ | — | $ | — | $ | — | $ | (79) | $ | 6,640 | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | 273 | $ | 672 | $ | 2,574 | $ | (693) | |||||||||||||||||||||
Adjustments related to: | |||||||||||||||||||||||||||||
Variable annuity product features | (114) | 172 | (2,639) | 3,632 | |||||||||||||||||||||||||
Investment (gains) losses | 333 | (164) | 890 | (767) | |||||||||||||||||||||||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 19 | 27 | 57 | 87 | |||||||||||||||||||||||||
Other adjustments (1) (2) (3) | 39 | 141 | 407 | 672 | |||||||||||||||||||||||||
Income tax expense (benefit) related to above adjustments | (59) | (35) | 270 | (761) | |||||||||||||||||||||||||
Non-recurring tax items | 7 | 5 | 13 | 6 | |||||||||||||||||||||||||
Non-GAAP Operating Earnings | $ | 498 | $ | 818 | $ | 1,572 | $ | 2,176 | |||||||||||||||||||||
Operating earnings (loss) by segment: | |||||||||||||||||||||||||||||
Individual Retirement | $ | 270 | $ | 316 | $ | 837 | $ | 1,093 | |||||||||||||||||||||
Group Retirement | $ | 134 | $ | 192 | $ | 415 | $ | 514 | |||||||||||||||||||||
Investment Management and Research | $ | 94 | $ | 134 | $ | 330 | $ | 381 | |||||||||||||||||||||
Protection Solutions | $ | 72 | $ | 160 | $ | 208 | $ | 264 | |||||||||||||||||||||
Corporate and Other (4) | $ | (72) | $ | 16 | $ | (218) | $ | (76) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Net income (loss) attributable to Holdings | $ | 168 | $ | (290 | ) | ||
Adjustments related to: | |||||||
Variable annuity product features | 212 | 291 | |||||
Investment (gains) losses | (102 | ) | 24 | ||||
Goodwill impairment | — | 369 | |||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 131 | 34 | |||||
Other adjustments | 90 | (21 | ) | ||||
Income tax expense (benefit) related to above adjustments | (63 | ) | (235 | ) | |||
Non-recurring tax items | 28 | 132 | |||||
Non-GAAP Operating Earnings | $ | 464 | $ | 304 | |||
Operating earnings (loss) by segment: | |||||||
Individual Retirement | $ | 360 | $ | 202 | |||
Group Retirement | 76 | 59 | |||||
Investment Management and Research | 81 | 32 | |||||
Protection Solutions | 23 | 39 | |||||
Corporate and Other(1) | (76 | ) | (28 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||||||
Individual Retirement (1) | $ | 1,017 | $ | 998 | $ | 3,061 | $ | 2,957 | |||||||||||||||||||||
Group Retirement (1) | 289 | 343 | 924 | 1,018 | |||||||||||||||||||||||||
Investment Management and Research (2) | 996 | 1,093 | 3,134 | 3,169 | |||||||||||||||||||||||||
Protection Solutions (1) | 791 | 838 | 2,478 | 2,496 | |||||||||||||||||||||||||
Corporate and Other (1) | 363 | 479 | 1,087 | 1,199 | |||||||||||||||||||||||||
Adjustments related to: | |||||||||||||||||||||||||||||
Variable annuity product features | (107) | (256) | 2,468 | (3,750) | |||||||||||||||||||||||||
Investment gains (losses), net | (333) | 164 | (890) | 767 | |||||||||||||||||||||||||
Other adjustments to segment revenues | (7) | (44) | (141) | (138) | |||||||||||||||||||||||||
Total revenues | $ | 3,009 | $ | 3,615 | $ | 12,121 | $ | 7,718 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Segment revenues: | |||||||
Individual Retirement(1) | $ | 729 | $ | 1,019 | |||
Group Retirement(1) | 238 | 227 | |||||
Investment Management and Research(2) | 909 | 743 | |||||
Protection Solutions(1) | 809 | 789 | |||||
Corporate and Other(1) | 288 | 340 | |||||
Adjustments related to: | |||||||
Variable annuity product features | (197 | ) | (287 | ) | |||
Investment gains (losses) | 102 | (24 | ) | ||||
Other adjustments to segment revenues | (43 | ) | 23 | ||||
Total revenues | $ | 2,835 | $ | 2,830 |
March 31, 2018 | December 31, 2017 | September 30, 2022 | December 31, 2021 | |||||||||||||||
(in millions) | (in millions) | |||||||||||||||||
Total assets by segment: | Total assets by segment: | |||||||||||||||||
Individual Retirement | $ | 103,786 | $ | 121,723 | Individual Retirement | $ | 119,883 | $ | 143,663 | |||||||||
Group Retirement | 43,615 | 38,578 | Group Retirement | 38,908 | 55,368 | |||||||||||||
Investment Management and Research | 11,809 | 8,297 | Investment Management and Research | 12,370 | 11,602 | |||||||||||||
Protection Solutions | 51,457 | 43,116 | Protection Solutions | 36,998 | 50,686 | |||||||||||||
Corporate and Other | 21,627 | 23,934 | Corporate and Other | 37,441 | 30,943 | |||||||||||||
Total assets | $ | 232,294 | $ | 235,648 | Total assets | $ | 245,600 | $ | 292,262 |
Three Months Ended March 31, | |||||
2018 | 2017 | ||||
(in millions) | |||||
Weighted Average Shares: | |||||
Weighted average common stock outstanding for basic and diluted earnings per common share | 561 | 561 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Weighted-average common shares outstanding: | |||||||||||||||||||||||||||||
Weighted-average common shares outstanding — basic | 374.5 | 411.3 | 380.6 | 423.2 | |||||||||||||||||||||||||
Effect of dilutive potential common shares: | |||||||||||||||||||||||||||||
Employee share awards (1) | 2.3 | 3.3 | 2.3 | — | |||||||||||||||||||||||||
Weighted-average common shares outstanding — diluted (2) | 376.8 | 414.6 | 382.9 | 423.2 | |||||||||||||||||||||||||
Net income (loss): | |||||||||||||||||||||||||||||
Net income (loss) | $ | 327 | $ | 765 | $ | 2,739 | $ | (412) | |||||||||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 54 | 93 | 165 | 281 | |||||||||||||||||||||||||
Net income (loss) attributable to Holdings | 273 | 672 | 2,574 | (693) | |||||||||||||||||||||||||
Less: Preferred stock dividends | 14 | 14 | 54 | 53 | |||||||||||||||||||||||||
Net income (loss) available to Holdings’ common shareholders | $ | 259 | $ | 658 | $ | 2,520 | $ | (746) | |||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||
Basic | $ | 0.69 | $ | 1.60 | $ | 6.62 | $ | (1.76) | |||||||||||||||||||||
Diluted | $ | 0.69 | $ | 1.59 | $ | 6.58 | $ | (1.76) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Net income (loss) attributable to Holdings common shareholders: | |||||||
Net income (loss) attributable to Holdings common shareholders (basic) | $ | 168 | $ | (290 | ) | ||
Less: Incremental dilution from AB(1) | — | 1 | |||||
Net income (loss) attributable to Holdings common shareholders (diluted) | $ | 168 | $ | (291 | ) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(dollars per share) | |||||||
Net income (loss) attributable to Holdings per common share: | |||||||
Basic | $ | 0.30 | $ | (0.52 | ) | ||
Diluted | $ | 0.30 | $ | (0.52 | ) |
Six Months Ended June 30, 2017 | ||||||||||||
As Previously Reported | Impact of Revisions | As Revised | ||||||||||
(in millions) | ||||||||||||
Consolidated Statement of Income (Loss): | ||||||||||||
Revenues: | ||||||||||||
Net derivative gains (losses) | $ | 528 | $ | (34 | ) | $ | 494 | |||||
Total revenues | 6,746 | $ | (34 | ) | 6,712 | |||||||
Benefits and other deductions: | ||||||||||||
Interest credited to policyholders’ account balances | $ | 522 | $ | (34 | ) | $ | 488 | |||||
Total benefits and other deductions | 6,299 | $ | (34 | ) | 6,265 |
Six Months Ended June 30, 2017 | |||||||||||
As Previously Reported | Impact of Revisions | As Revised | |||||||||
(in millions) | |||||||||||
Consolidated Statement of Cash Flows: | |||||||||||
Cash flow from operating activities: | |||||||||||
Interest credited to policyholders’ account balances | $ | 522 | $ | (34 | ) | $ | 488 | ||||
Net derivative (gains) loss | (528 | ) | 34 | (494 | ) | ||||||
Net cash provided by (used in) operating activities | 666 | $ | — | 666 |
Nine Months Ended September 30, 2017 | ||||||||||||
As Previously Reported | Impact of Revisions | As Revised | ||||||||||
(in millions) | ||||||||||||
Consolidated Statement of Income (Loss): | ||||||||||||
Revenues: | ||||||||||||
Net derivative gains (losses) | $ | 172 | $ | (44 | ) | $ | 128 | |||||
Total revenues | 9,529 | $ | (44 | ) | 9,485 | |||||||
Benefits and other deductions: | ||||||||||||
Interest credited to Policyholders’ account balances | $ | 787 | $ | (44 | ) | $ | 743 | |||||
Total benefits and other deductions | 9,070 | $ | (44 | ) | 9,026 |
Nine Months Ended September 30, 2017 | |||||||||||
As Previously Reported | Impact of Revisions | As Revised | |||||||||
(in millions) | |||||||||||
Consolidated Statement of Cash Flows: | |||||||||||
Cash flow from operating activities: | |||||||||||
Interest credited to policyholders’ account balances | $ | 787 | $ | (44 | ) | $ | 743 | ||||
Net derivative (gains) loss | (172 | ) | 44 | (128 | ) | ||||||
Net cash provided by (used in) operating activities | 1,044 | $ | — | 1,044 |
December 31, 2017 | |||||||||||
As Previously Reported | Impact of Revisions | As Revised | |||||||||
(in millions) | |||||||||||
Consolidated Statement of Income (Loss): | |||||||||||
Revenues: | |||||||||||
Net derivative gains (losses) | $ | 228 | $ | (113 | ) | $ | 115 | ||||
Total revenues | 12,514 | $ | (113 | ) | 12,401 | ||||||
Benefits and other deductions: | |||||||||||
Interest credited to Policyholder’s account balances | 1,108 | $ | (113 | ) | 995 | ||||||
Total benefits and other deductions | 11,200 | $ | (113 | ) | 11,087 |
December 31, 2017 | |||||||||||
As Previously Reported | Impact of Revisions | As Revised | |||||||||
(in millions) | |||||||||||
Consolidated Statement of Cash Flows: | |||||||||||
Cash flow from operating activities: | |||||||||||
Interest credited to policyholders’ account balances | $ | 1,108 | $ | (113 | ) | $ | 995 | ||||
Net derivative (gains) loss | (228 | ) | 113 | (115 | ) | ||||||
Net cash provided by (used in) operating activities | 1,021 | $ | — | 1,021 |
December 31, 2016 | ||||||||||||
As Previously Reported | Impact of Revisions | As Revised | ||||||||||
(in millions) | ||||||||||||
Consolidated Statement of Income (Loss): | ||||||||||||
Revenues: | ||||||||||||
Net derivative gains (losses) | $ | (1,722 | ) | $ | (121 | ) | — | $ | (1,843 | ) | ||
Total revenues | 11,922 | $ | (121 | ) | 11,801 | |||||||
Benefits and other deductions: | ||||||||||||
Interest credited to Policyholder’s account balances | 1,091 | $ | (121 | ) | 970 | |||||||
Total benefits and other deductions | 9,868 | $ | (121 | ) | 9,747 |
December 31, 2016 | |||||||||||
As Previously Reported | Impact of Revisions | As Revised | |||||||||
(in millions) | |||||||||||
Consolidated Statement of Cash Flows: | |||||||||||
Cash flow from operating activities: | |||||||||||
Interest credited to policyholders’ account balances | $ | 1,091 | $ | (121 | ) | $ | 970 | ||||
Net derivative (gains) loss | 1,722 | 121 | 1,843 | ||||||||
Net cash provided by (used in) operating activities | (236 | ) | $ | — | (236 | ) |
Three Months Ended September 30, (1) | |||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Impact of assumption update on Net income (loss): | |||||||||||||||||||||||||||||
Variable annuity product features related assumption update | $ | 175 | $ | (91) | |||||||||||||||||||||||||
Assumption updates for other business | 7 | (17) | |||||||||||||||||||||||||||
Impact of assumption updates on Income (loss) from continuing operations, before income tax | 182 | (108) | |||||||||||||||||||||||||||
Income tax benefit on assumption update | (38) | 23 | |||||||||||||||||||||||||||
Net income (loss) impact of assumption update | $ | 144 | $ | (85) |
Three Months Ended September 30, (1) | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
(in million) | |||||||||||||||||
Impact of assumption updates by segment: | |||||||||||||||||
Individual Retirement | $ | (13) | $ | (47) | |||||||||||||
Group Retirement | 34 | 35 | |||||||||||||||
Protection Solutions | 7 | 20 | |||||||||||||||
Impact of assumption updates on Corporate and Other | — | — | |||||||||||||||
Total impact on pre-tax Non-GAAP Operating Earnings | $ | 28 | $ | 8 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Net income (loss) attributable to Holdings | $ | 273 | $ | 672 | $ | 2,574 | $ | (693) | ||||||||||||||||||
Adjustments related to: | ||||||||||||||||||||||||||
Variable annuity product features | (114) | 172 | (2,639) | 3,632 | ||||||||||||||||||||||
Investment (gains) losses | 333 | (164) | 890 | (767) | ||||||||||||||||||||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 19 | 27 | 57 | 87 | ||||||||||||||||||||||
Other adjustments (1) (2) (3) | 39 | 141 | 407 | 672 | ||||||||||||||||||||||
Income tax expense (benefit) related to above adjustments | (59) | (35) | 270 | (761) | ||||||||||||||||||||||
Non-recurring tax items | 7 | 5 | 13 | 6 | ||||||||||||||||||||||
Non-GAAP Operating Earnings | $ | 498 | $ | 818 | $ | 1,572 | $ | 2,176 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Net income (loss) attributable to Holdings | $ | 168 | $ | (290 | ) | ||
Adjustments related to: | |||||||
Variable annuity product features (1) | 212 | 291 | |||||
Investment (gains) losses | (102 | ) | 24 | ||||
Goodwill impairment | — | 369 | |||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 131 | 34 | |||||
Other adjustments | 90 | (21 | ) | ||||
Income tax expense (benefit) related to above adjustments | (63 | ) | (235 | ) | |||
Non-recurring tax items | 28 | 132 | |||||
Non-GAAP Operating Earnings | $ | 464 | $ | 304 |
Trailing Twelve Months Ended September 30, 2022 | |||||
(in millions) | |||||
Net income (loss) available to Holdings’ common shareholders | $ | 2,748 | |||
Average equity attributable to Holdings’ common shareholders, excluding AOCI | $ | 8,844 |
Trailing Twelve Months Ended March 31, 2018 | |||||||||||
Individual Retirement | Group Retirement | Protection Solutions | |||||||||
(in millions) | |||||||||||
Operating earnings | $ | 1,483 | $ | 298 | $ | 521 | |||||
Average capital(1) | 6,925 | 1,262 | 2,674 | ||||||||
Non-GAAP Operating ROC | 21.4 | % | 23.6 | % | 19.5 | % |
Trailing Twelve Months Ended September 30, 2022 | |||||
(in millions) | |||||
Return on average equity attributable to Holdings’ common shareholders, excluding AOCI | 31.1 | % | |||
2,141 | |||||
Average equity attributable to | $ | 8,844 | |||
Non-GAAP Operating ROE | 24.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(per share amounts) | ||||||||||||||||||||||||||
Net income (loss) attributable to Holdings (1) | $ | 0.72 | $ | 1.62 | $ | 6.72 | $ | (1.64) | ||||||||||||||||||
Less: Preferred stock dividends | 0.03 | 0.03 | 0.14 | 0.12 | ||||||||||||||||||||||
Net income (loss) available to Holdings’ common shareholders | 0.69 | 1.59 | 6.58 | (1.76) | ||||||||||||||||||||||
Adjustments related to: | ||||||||||||||||||||||||||
Variable annuity product features | (0.31) | 0.41 | (6.89) | 8.58 | ||||||||||||||||||||||
Investment (gains) losses | 0.87 | (0.41) | 2.32 | (1.81) | ||||||||||||||||||||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 0.05 | 0.07 | 0.15 | 0.21 | ||||||||||||||||||||||
Other adjustments (2) (3) (4) | 0.12 | 0.35 | 1.06 | 1.59 | ||||||||||||||||||||||
Income tax expense (benefit) related to above adjustments | (0.16) | (0.08) | 0.71 | (1.80) | ||||||||||||||||||||||
Non-recurring tax items | 0.02 | 0.01 | 0.03 | 0.01 | ||||||||||||||||||||||
Non-GAAP operating common EPS | $ | 1.28 | $ | 1.94 | $ | 3.96 | $ | 5.02 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(per share amounts) | |||||||
Net income (loss) attributable to Holdings | $ | 0.30 | $ | (0.52 | ) | ||
Adjustments related to: | |||||||
Variable annuity product features | 0.38 | 0.52 | |||||
Investment (gains) losses | (0.18 | ) | 0.04 | ||||
Goodwill impairment | — | 0.66 | |||||
Net actuarial (gains) losses related to pension and other postretirement benefit obligations | 0.23 | 0.06 | |||||
Other adjustments | 0.16 | (0.04 | ) | ||||
Income tax expense (benefit) related to above adjustments | (0.11 | ) | (0.42 | ) | |||
Non-recurring tax items | 0.05 | 0.24 | |||||
Non-GAAP Operating Earnings | $ | 0.83 | $ | 0.54 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||
Policy charges and fee income | $ | 796 | $ | 867 | $ | 2,449 | $ | 2,755 | |||||||||||||||||||||
Premiums | 259 | 230 | 744 | 729 | |||||||||||||||||||||||||
Net derivative gains (losses) | 68 | (185) | 3,118 | (3,930) | |||||||||||||||||||||||||
Net investment income (loss) | 842 | 997 | 2,357 | 2,914 | |||||||||||||||||||||||||
Investment gains (losses), net: | |||||||||||||||||||||||||||||
Credit losses on available-for-sale debt securities and loans | (267) | (2) | (266) | 4 | |||||||||||||||||||||||||
Other investment gains (losses), net | (65) | 165 | (624) | 763 | |||||||||||||||||||||||||
Total investment gains (losses), net | (332) | 163 | (890) | 767 | |||||||||||||||||||||||||
Investment management and service fees | 1,179 | 1,323 | 3,731 | 3,898 | |||||||||||||||||||||||||
Other income | 197 | 220 | 612 | 585 | |||||||||||||||||||||||||
Total revenues | 3,009 | 3,615 | 12,121 | 7,718 | |||||||||||||||||||||||||
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions, except earnings per share amounts) | |||||||
REVENUES | |||||||
Policy charges and fee income | $ | 972 | $ | 956 | |||
Premiums | 279 | 281 | |||||
Net derivative gains (losses) | (281 | ) | (235 | ) | |||
Net investment income (loss) | 591 | 780 | |||||
Investment gains (losses), net: | |||||||
Total other-than-temporary impairment losses | — | (1 | ) | ||||
Other investment gains (losses), net | 102 | (23 | ) | ||||
Total investment gains (losses), net | 102 | (24 | ) | ||||
Investment management and service fees | 1,055 | 954 | |||||
Other income | 117 | 118 | |||||
Total revenues | 2,835 | 2,830 | |||||
BENEFITS AND OTHER DEDUCTIONS | |||||||
Policyholders’ benefits | 608 | 1,093 | |||||
Interest credited to policyholders’ account balances | 271 | 246 | |||||
Compensation and benefits (includes $40 and $41 of deferred acquisition costs) | 620 | 539 | |||||
Commissions and distribution related payments (includes $120 and $132 of deferred acquisition costs) | 411 | 395 | |||||
Interest expense | 46 | 35 | |||||
Amortization of deferred policy acquisition costs, net (net of capitalization of $160 and $173) | 15 | (55 | ) | ||||
Other operating costs and expenses | 494 | 744 | |||||
Total benefits and other deductions | 2,465 | 2,997 | |||||
Income (loss) from continuing operations, before income taxes | 370 | (167 | ) | ||||
Income tax (expense) benefit | (79 | ) | (30 | ) | |||
Net income (loss) | 291 | (197 | ) | ||||
Less: net (income) loss attributable to the noncontrolling interest | (123 | ) | (93 | ) | |||
Net income (loss) attributable to Holdings | $ | 168 | $ | (290 | ) | ||
EARNINGS PER SHARE | |||||||
Earnings per share - Common stock | |||||||
Basic | $ | 0.30 | $ | (0.52 | ) | ||
Diluted | $ | 0.30 | $ | (0.52 | ) | ||
Weighted average common shares outstanding | 561 | 561 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||||||||||||||||||
Policyholders’ benefits | 625 | 751 | 2,599 | 2,518 | |||||||||||||||||||||||||
Interest credited to policyholders’ account balances | 378 | 305 | 1,002 | 905 | |||||||||||||||||||||||||
Compensation and benefits | 566 | 614 | 1,679 | 1,762 | |||||||||||||||||||||||||
Commissions and distribution-related payments | 368 | 436 | 1,184 | 1,215 | |||||||||||||||||||||||||
Interest expense | 51 | 59 | 148 | 184 | |||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 105 | 64 | 446 | 257 | |||||||||||||||||||||||||
Other operating costs and expenses | 497 | 456 | 1,617 | 1,511 | |||||||||||||||||||||||||
Total benefits and other deductions | 2,590 | 2,685 | 8,675 | 8,352 | |||||||||||||||||||||||||
Income (loss) from continuing operations, before income taxes | 419 | 930 | 3,446 | (634) | |||||||||||||||||||||||||
Income tax (expense) benefit | (92) | (165) | (707) | 222 | |||||||||||||||||||||||||
Net income (loss) | 327 | 765 | 2,739 | (412) | |||||||||||||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 54 | 93 | 165 | 281 | |||||||||||||||||||||||||
Net income (loss) attributable to Holdings | 273 | 672 | 2,574 | (693) | |||||||||||||||||||||||||
Less: Preferred stock dividends | 14 | 14 | 54 | 53 | |||||||||||||||||||||||||
Net income (loss) available to Holdings’ common shareholders | $ | 259 | $ | 658 | $ | 2,520 | $ | (746) | |||||||||||||||||||||
EARNINGS PER COMMON SHARE | |||||||||||||||||||||||||||||
Net income (loss) applicable to Holdings’ common shareholders per common share: | |||||||||||||||||||||||||||||
Basic | $ | 0.69 | $ | 1.60 | $ | 6.62 | $ | (1.76) | |||||||||||||||||||||
Diluted | $ | 0.69 | $ | 1.59 | $ | 6.58 | $ | (1.76) | |||||||||||||||||||||
Weighted average common shares outstanding (in millions): | |||||||||||||||||||||||||||||
Basic | 374.5 | 411.3 | 380.6 | 423.2 | |||||||||||||||||||||||||
Diluted | 376.8 | 414.6 | 382.9 | 423.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Non-GAAP Operating Earnings | $ | 498 | $ | 818 | $ | 1,572 | $ | 2,176 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions, except earnings per share amounts) | |||||||
Non-GAAP Operating Earnings | $ | 464 | $ | 304 | |||
Non-GAAP Operating Earnings per share, Basic | $ | 0.83 | $ | 0.54 | |||
Non-GAAP Operating Earnings per share, Diluted | $ | 0.83 | $ | 0.54 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Non-GAAP operating earnings per common share: | ||||||||||||||||||||||||||
Basic | $ | 1.29 | $ | 1.95 | $ | 3.99 | $ | 5.02 | ||||||||||||||||||
Diluted | $ | 1.28 | $ | 1.94 | $ | 3.96 | $ | 5.02 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Operating earnings (loss) by segment: | |||||||||||||||||||||||||||||
Individual Retirement | $ | 270 | $ | 316 | $ | 837 | $ | 1,093 | |||||||||||||||||||||
Group Retirement | 134 | 192 | 415 | 514 | |||||||||||||||||||||||||
Investment Management and Research | 94 | 134 | 330 | 381 | |||||||||||||||||||||||||
Protection Solutions | 72 | 160 | 208 | 264 | |||||||||||||||||||||||||
Corporate and Other | (72) | 16 | (218) | (76) | |||||||||||||||||||||||||
Non-GAAP Operating Earnings | $ | 498 | $ | 818 | $ | 1,572 | $ | 2,176 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Operating earnings (loss): | |||||||
Individual Retirement | $ | 360 | $ | 202 | |||
Group Retirement | 76 | 59 | |||||
Investment Management and Research | 81 | 32 | |||||
Protection Solutions | 23 | 39 | |||||
Total segment operating earnings | 540 | 332 | |||||
Corporate and Other | (76 | ) | (28 | ) | |||
Non-GAAP Operating Earnings | $ | 464 | $ | 304 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Operating earnings | $ | 270 | $ | 316 | $ | 837 | $ | 1,093 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
2018 | 2017 | (in millions) | ||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 360 | $ | 202 | ||||||||||||||||||||||||||||||||
Key components of Operating earnings are: | ||||||||||||||||||||||||||||||||||||
REVENUES | REVENUES | |||||||||||||||||||||||||||||||||||
Policy charges, fee income and premiums | $ | 540 | $ | 519 | Policy charges, fee income and premiums | $ | 385 | $ | 439 | $ | 1,152 | $ | 1,457 | |||||||||||||||||||||||
Net investment income | 228 | 177 | Net investment income | 348 | 296 | 933 | 972 | |||||||||||||||||||||||||||||
Investment gains (losses), net including derivative gains (losses) | (227 | ) | 140 | |||||||||||||||||||||||||||||||||
Net derivative gains (losses) | Net derivative gains (losses) | 140 | 77 | 514 | (51) | |||||||||||||||||||||||||||||||
Investment management, service fees and other income | 188 | 183 | Investment management, service fees and other income | 144 | 186 | 462 | 579 | |||||||||||||||||||||||||||||
Segment revenues | 729 | 1,019 | Segment revenues | $ | 1,017 | $ | 998 | $ | 3,061 | $ | 2,957 | |||||||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | BENEFITS AND OTHER DEDUCTIONS | |||||||||||||||||||||||||||||||||||
Policyholders’ benefits | 5 | 461 | Policyholders’ benefits | $ | 300 | $ | 272 | $ | 998 | $ | 641 | |||||||||||||||||||||||||
Interest credited to policyholders’ account balances | 59 | 47 | Interest credited to policyholders’ account balances | 101 | 70 | 255 | 205 | |||||||||||||||||||||||||||||
Commissions and distribution related payments(1) | 144 | 158 | ||||||||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs, net(2) | (47 | ) | (54 | ) | ||||||||||||||||||||||||||||||||
Compensation, benefits, interest expense and other operating costs and expenses(3) | 121 | 128 | ||||||||||||||||||||||||||||||||||
Commissions and distribution-related payments | Commissions and distribution-related payments | 61 | 89 | 208 | 245 | |||||||||||||||||||||||||||||||
Amortization of deferred policy acquisition costs | Amortization of deferred policy acquisition costs | 109 | 88 | 292 | 239 | |||||||||||||||||||||||||||||||
Compensation, benefits and other operating costs and expenses | Compensation, benefits and other operating costs and expenses | 105 | 96 | 272 | 307 | |||||||||||||||||||||||||||||||
Interest expense | Interest expense | — | — | — | — | |||||||||||||||||||||||||||||||
Segment benefits and other deductions | $ | 282 | $ | 740 | Segment benefits and other deductions | $ | 676 | $ | 615 | $ | 2,025 | $ | 1,637 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||
(in millions) | |||||||||||||||||
AV (1) | |||||||||||||||||
General Account | $ | 35,509 | $ | 37,698 | |||||||||||||
Separate Accounts | 55,013 | 74,206 | |||||||||||||||
Total AV | $ | 90,522 | $ | 111,904 |
March 31, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
AV | |||||||
General Account | $ | 19,480 | $ | 19,059 | |||
Separate Accounts | 82,310 | 84,364 | |||||
Total AV | $ | 101,790 | $ | 103,423 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance as of beginning of period | $ | 94,263 | $ | 108,435 | $ | 111,904 | $ | 117,390 | |||||||||||||||||||||
Gross premiums | 3,083 | 2,848 | 9,065 | 8,138 | |||||||||||||||||||||||||
Surrenders, withdrawals and benefits | (2,318) | (2,835) | (7,614) | (8,819) | |||||||||||||||||||||||||
Net flows (1) | 765 | 13 | 1,451 | (681) | |||||||||||||||||||||||||
Investment performance, interest credited and policy charges | (4,506) | (697) | (22,833) | 7,912 | |||||||||||||||||||||||||
Ceded to Venerable (2) | — | — | — | (16,927) | |||||||||||||||||||||||||
Other (3) (4) | — | (38) | — | 19 | |||||||||||||||||||||||||
Balance as of end of period | $ | 90,522 | $ | 107,713 | $ | 90,522 | $ | 107,713 |
March 31, 2018 | March 31, 2017 | ||||||
(in millions) | |||||||
Balance as of beginning of period | $ | 103,423 | $ | 93,604 | |||
Gross premiums | 1,787 | 2,010 | |||||
Surrenders, withdrawals and benefits | (2,249 | ) | (1,797 | ) | |||
Net flows | (462 | ) | 213 | ||||
Investment performance, interest credited and policy charges | (1,171 | ) | 2,862 | ||||
Balance as of end of period | $ | 101,790 | $ | 96,679 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Operating earnings | $ | 134 | $ | 192 | $ | 415 | $ | 514 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Operating earnings | $ | 76 | $ | 59 | |||
Key components of Operating earnings are: | |||||||
REVENUES | |||||||
Policy charges, fee income and premiums | $ | 64 | $ | 59 | |||
Net investment income | 131 | 130 | |||||
Investment gains (losses), net including derivative gains (losses) | (1 | ) | (5 | ) | |||
Investment Management, service fees and other income | 44 | 43 | |||||
Segment Revenues | 238 | 227 | |||||
BENEFITS AND OTHER DEDUCTIONS | |||||||
Policyholders’ benefits | — | — | |||||
Interest credited to policyholders’ account balances | 70 | 71 | |||||
Commissions and distribution related payments(1) | 24 | 23 | |||||
Amortization of deferred policy acquisition costs, net(2) | (11 | ) | (11 | ) | |||
Compensation, benefits, interest expense and other operating costs and expenses(3) | 62 | 62 | |||||
Segment benefits and other deductions | $ | 145 | $ | 145 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||
Policy charges, fee income and premiums | $ | 80 | $ | 96 | $ | 257 | $ | 273 | ||||||||||||||||||
Net investment income | 160 | 189 | 503 | 564 | ||||||||||||||||||||||
Net derivative (losses) gains | (11) | (11) | (23) | (16) | ||||||||||||||||||||||
Investment management, service fees and other income | 60 | 69 | 187 | 197 | ||||||||||||||||||||||
Segment revenues | $ | 289 | $ | 343 | $ | 924 | $ | 1,018 | ||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | ||||||||||||||||||||||||||
Policyholders’ benefits | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Interest credited to policyholders’ account balances | 79 | 77 | 229 | 227 | ||||||||||||||||||||||
Commissions and distribution-related payments | 12 | 12 | 43 | 41 | ||||||||||||||||||||||
Amortization of deferred policy acquisition costs | (20) | (24) | 3 | (11) | ||||||||||||||||||||||
Compensation, benefits and other operating costs and expenses | 47 | 45 | 134 | 140 | ||||||||||||||||||||||
Interest expense | 1 | — | 1 | — | ||||||||||||||||||||||
Segment benefits and other deductions | $ | 119 | $ | 110 | $ | 410 | $ | 397 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||
(in millions) | |||||||||||||||||
AV and AUA | |||||||||||||||||
General Account | $ | 13,234 | $ | 13,046 | |||||||||||||
Separate Accounts and Mutual Funds (1) | 26,476 | 34,763 | |||||||||||||||
Total AV and AUA | $ | 39,710 | $ | 47,809 |
March 31, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
AV | |||||||
General Account | $ | 11,393 | $ | 11,319 | |||
Separate Accounts | 22,525 | 22,587 | |||||
Total AV | $ | 33,918 | $ | 33,906 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 (1) | 2022 | 2021 (1) | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance as of beginning of period | $ | 41,167 | $ | 46,299 | $ | 47,809 | $ | 42,756 | |||||||||||||||||||||
Gross premiums | 861 | 849 | 3,496 | 2,761 | |||||||||||||||||||||||||
Surrenders, withdrawals and benefits | (918) | (984) | (2,886) | (2,831) | |||||||||||||||||||||||||
Net flows | (57) | (135) | 610 | (70) | |||||||||||||||||||||||||
Investment performance, interest credited and policy charges | (1,400) | (247) | (8,709) | 3,288 | |||||||||||||||||||||||||
Other (2) | — | — | — | (57) | |||||||||||||||||||||||||
Balance as of end of period | $ | 39,710 | $ | 45,917 | $ | 39,710 | $ | 45,917 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Balance as of beginning of period | $ | 33,906 | $ | 30,138 | |||
Gross premiums | 837 | 824 | |||||
Surrenders, withdrawals and benefits | (736 | ) | (769 | ) | |||
Net flows | 101 | 55 | |||||
Investment performance, interest credited and policy charges | (89 | ) | 975 | ||||
Balance as of end of period | $ | 33,918 | $ | 31,168 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Operating earnings | $ | 94 | $ | 134 | $ | 330 | $ | 381 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
REVENUES | |||||||||||||||||||||||||||||
Net investment income | $ | (9) | $ | (2) | $ | (58) | $ | 10 | |||||||||||||||||||||
Net derivative gains (losses) | 15 | 2 | 57 | (7) | |||||||||||||||||||||||||
Investment management, service fees and other income | 990 | 1,093 | 3,135 | 3,166 | |||||||||||||||||||||||||
Segment revenues | $ | 996 | $ | 1,093 | $ | 3,134 | $ | 3,169 | |||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | |||||||||||||||||||||||||||||
Commissions and distribution related payments | $ | 152 | $ | 187 | $ | 487 | $ | 517 | |||||||||||||||||||||
Compensation, benefits and other operating costs and expenses | 636 | 622 | 1,930 | 1,831 | |||||||||||||||||||||||||
Interest expense | 5 | — | 9 | 1 | |||||||||||||||||||||||||
Segment benefits and other deductions | $ | 793 | $ | 809 | $ | 2,426 | $ | 2,349 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Operating earnings | $ | 81 | $ | 32 | |||
Key components of Operating earnings are: | |||||||
REVENUES | |||||||
Policy charges, fee income and premiums | $ | — | $ | — | |||
Net investment income | 3 | 19 | |||||
Investment gains (losses), net including derivative gains (losses) | 2 | (10 | ) | ||||
Investment Management, service fees and other income | 904 | 734 | |||||
Segment Revenues | 909 | 743 | |||||
BENEFITS AND OTHER DEDUCTIONS | |||||||
Policyholders’ benefits | — | — | |||||
Interest credited to policyholders’ account balances | — | — | |||||
Commissions and distribution related payments | 110 | 96 | |||||
Amortization of deferred policy acquisition costs, net | — | — | |||||
Compensation, benefits, interest expense and other operating costs and expenses | 564 | 497 | |||||
Segment benefits and other deductions | $ | 674 | $ | 593 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||
Balance as of beginning of period | $ | 646.8 | $ | 738.4 | $ | 778.6 | $ | 685.9 | |||||||||||||||||||||
Long-term flows | |||||||||||||||||||||||||||||
Sales/new accounts | 19.8 | 32.3 | 84.6 | 110.6 | |||||||||||||||||||||||||
Redemptions/terminations | (24.9) | (21.5) | (72.2) | (78.1) | |||||||||||||||||||||||||
Cash flow/unreinvested dividends | (5.4) | (3.6) | (14.2) | (13.8) | |||||||||||||||||||||||||
Net long-term inflows (outflows) (2) | (10.5) | 7.2 | (1.8) | 18.7 | |||||||||||||||||||||||||
Adjustments (1) | — | — | (0.4) | — | |||||||||||||||||||||||||
Acquisition (3) | 12.2 | — | 12.2 | — | |||||||||||||||||||||||||
Market appreciation (depreciation) | (35.8) | (3.4) | (175.9) | 37.6 | |||||||||||||||||||||||||
Net change | (34.1) | 3.8 | (165.9) | 56.3 | |||||||||||||||||||||||||
Balance as of end of period | $ | 612.7 | $ | 742.2 | $ | 612.7 | $ | 742.2 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in billions) | |||||||
Balance as of beginning of period | $ | 554.5 | $ | 480.2 | |||
Long-term flows: | |||||||
Sales/new accounts | 34.1 | 19.0 | |||||
Redemptions/terminations | (31.2 | ) | (18.4 | ) | |||
Cash flow/unreinvested dividends | (5.3 | ) | (0.8 | ) | |||
Net long-term (outflows) inflows | (2.4 | ) | (0.2 | ) | |||
Market appreciation (depreciation) | (2.6 | ) | 17.9 | ||||
Net change | (5.0 | ) | 17.7 | ||||
Balance as of end of period | $ | 549.5 | $ | 497.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||
(in billions) | |||||||||||||||||||||||||||||
Distribution Channel: | |||||||||||||||||||||||||||||
Institutions | $ | 297.0 | $ | 331.1 | $ | 312.8 | $ | 323.3 | |||||||||||||||||||||
Retail | 250.9 | 299.5 | 274.9 | 284.1 | |||||||||||||||||||||||||
Private Wealth | 106.0 | 116.8 | 111.6 | 112.4 | |||||||||||||||||||||||||
Total | $ | 653.9 | $ | 747.4 | $ | 699.3 | $ | 719.8 | |||||||||||||||||||||
Investment Service: | |||||||||||||||||||||||||||||
Equity Actively Managed | $ | 222.8 | $ | 262.8 | $ | 245.7 | $ | 244.2 | |||||||||||||||||||||
Equity Passively Managed (1) | 56.7 | 70.4 | 61.8 | 67.8 | |||||||||||||||||||||||||
Fixed Income Actively Managed – Taxable | 198.9 | 252.5 | 216.4 | 254.8 | |||||||||||||||||||||||||
Fixed Income Actively Managed – Tax-exempt | 53.7 | 54.9 | 54.7 | 53.0 | |||||||||||||||||||||||||
Fixed Income Passively Managed (1) | 11.3 | 9.4 | 12.1 | 8.8 | |||||||||||||||||||||||||
Alternatives/Multi-Asset Solutions (2) | 110.5 | 97.4 | 108.6 | 91.2 | |||||||||||||||||||||||||
Total | $ | 653.9 | $ | 747.4 | $ | 699.3 | $ | 719.8 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in billions) | |||||||
Distribution Channel: | |||||||
Institutions | $ | 269.3 | $ | 243.8 | |||
Retail | 194.0 | 164.9 | |||||
Private Wealth Management | 93.8 | 82.5 | |||||
Total | $ | 557.1 | $ | 491.2 | |||
Investment Service: | |||||||
Equity Actively Managed | $ | 142.9 | $ | 115.7 | |||
Equity Passively Managed(1) | 54.3 | 48.7 | |||||
Fixed Income Actively Managed – Taxable | 243.3 | 226.0 | |||||
Fixed Income Actively Managed – Tax-exempt | 40.6 | 37.3 | |||||
Fixed Income Passively Managed(1) | 10.0 | 11.1 | |||||
Other(2) | 66.0 | 52.4 | |||||
Total | $ | 557.1 | $ | 491.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Operating earnings (loss) | $ | 72 | $ | 160 | $ | 208 | $ | 264 |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Operating earnings (loss) | $ | 23 | $ | 39 | |||
Key components of Operating earnings are: | |||||||
REVENUES | |||||||
Policy charges, fee income and premiums | $ | 535 | $ | 529 | |||
Net investment income | 220 | 208 | |||||
Investment gains (losses), net including derivative gains (losses) | (1 | ) | — | ||||
Investment management, service fees and other income | 55 | 52 | |||||
Segment Revenues | 809 | 789 | |||||
BENEFITS AND OTHER DEDUCTIONS | |||||||
Policyholders’ benefits | 409 | 412 | |||||
Interest credited to policyholders’ account balances | 122 | 116 | |||||
Commissions and distribution related payments(1) | 66 | 68 | |||||
Amortization of deferred policy acquisition costs, net(2) | 71 | 29 | |||||
Compensation, benefits, interest expense and other operating costs and expenses(3) | 114 | 109 | |||||
Segment benefits and other deductions | $ | 782 | $ | 734 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||
Policy charges, fee income and premiums | $ | 505 | $ | 482 | $ | 1,544 | $ | 1,493 | ||||||||||||||||||
Net investment income | 236 | 294 | 760 | 827 | ||||||||||||||||||||||
Net derivative (losses) gains | (13) | (7) | (18) | (18) | ||||||||||||||||||||||
Investment management, service fees and other income | 63 | 69 | 192 | 194 | ||||||||||||||||||||||
Segment revenues | $ | 791 | $ | 838 | $ | 2,478 | $ | 2,496 | ||||||||||||||||||
BENEFITS AND OTHER DEDUCTIONS | ||||||||||||||||||||||||||
Policyholders’ benefits | $ | 414 | $ | 392 | $ | 1,364 | $ | 1,370 | ||||||||||||||||||
Interest credited to policyholders’ account balances | 130 | 126 | 380 | 383 | ||||||||||||||||||||||
Commissions and distribution related payments | 46 | 44 | 132 | 120 | ||||||||||||||||||||||
Amortization of deferred policy acquisition costs | 14 | 4 | 78 | 63 | ||||||||||||||||||||||
Compensation, benefits and other operating costs and expenses | 96 | 78 | 266 | 241 | ||||||||||||||||||||||
Interest expense | — | — | — | — | ||||||||||||||||||||||
Segment benefits and other deductions | $ | 700 | $ | 644 | $ | 2,220 | $ | 2,177 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||
(in millions) | |||||||||||||||||
Protection Solutions Reserves (1) | |||||||||||||||||
General Account | $ | 18,243 | $ | 18,625 | |||||||||||||
Separate Accounts | 12,783 | 17,012 | |||||||||||||||
Total Protection Solutions Reserves | $ | 31,026 | $ | 35,637 |
March 31, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Protection Solutions Reserves(1) | |||||||
General Account | $ | 16,128 | $ | 16,007 | |||
Separate Accounts | 12,396 | 12,643 | |||||
Total Protection Solutions Reserves | $ | 28,524 | $ | 28,650 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||
(in billions) | |||||||||||||||||
In-force face amount by product: (1) | |||||||||||||||||
Universal Life (2) | $ | 43.7 | $ | 45.9 | |||||||||||||
Indexed Universal Life | 27.6 | 27.9 | |||||||||||||||
Variable Universal Life (3) | 132.8 | 132.8 | |||||||||||||||
Term | 213.0 | 215.4 | |||||||||||||||
Whole Life | 1.2 | 1.2 | |||||||||||||||
Total in-force face amount | $ | 418.3 | $ | 423.2 |
March 31, 2018 | December 31, 2017 | ||||||
(in billions) | |||||||
In-force Face Amounts for Protection Solutions(1) | |||||||
Universal life(2) | $ | 58.3 | $ | 59.0 | |||
Indexed universal life | 21.0 | 20.5 | |||||
Variable universal life(3) | 128.5 | 128.9 | |||||
Term | 234.7 | 235.9 | |||||
Whole life | 1.6 | 1.6 | |||||
Total in-force face amount | $ | 444.1 | $ | 445.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Operating earnings (loss) | $ | (72) | $ | 16 | $ | (218) | $ | (76) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Operating earnings (loss) | $ | (76 | ) | $ | (28 | ) |
GAIA | Other(1) | Balance Sheet Total | |||||||||
(in millions) | |||||||||||
Balance Sheet Captions: | |||||||||||
Fixed maturities, available for sale, at fair value | $ | 43,953 | $ | (469 | ) | $ | 43,484 | ||||
Mortgage loans on real estate | 11,333 | — | 11,333 | ||||||||
Policy Loans | 3,776 | — | 3,776 | ||||||||
Real Estate held for production of income | 52 | — | 52 | ||||||||
Other equity investments | 1,128 | 130 | 1,258 | ||||||||
Other invested assets | 170 | 3,891 | 4,061 | ||||||||
Sub-total investments | 60,412 | 3,552 | 63,964 | ||||||||
Trading Securities | 12,907 | (2) | 2,012 | 14,919 | |||||||
Total investments | 73,319 | 5,564 | 78,883 | ||||||||
Cash and cash equivalents | 4,220 | 1,871 | 6,091 | ||||||||
Repurchase and funding agreements(3) | (4,397 | ) | — | (4,397 | ) | ||||||
Total | $ | 73,142 | $ | 7,435 | $ | 80,577 |
Balance Sheet Captions: | GAIA | Other(1) | Balance Sheet Total | ||||||||
(in millions) | |||||||||||
Fixed maturities, available for sale, at fair value | $ | 45,751 | $ | 1,190 | $ | 46,941 | |||||
Mortgage loans on real estate | 10,952 | — | 10,952 | ||||||||
Policy loans | 3,819 | — | 3,819 | ||||||||
Real estate held for the production of Income | 390 | — | 390 | ||||||||
Other equity investments | 1,264 | 128 | 1,392 | ||||||||
Other invested assets | 25 | 4,093 | 4,118 | ||||||||
Subtotal investment assets | $ | 62,201 | $ | 5,411 | $ | 67,612 | |||||
Trading securities | 12,050 | (2) | 2,120 | 14,170 | |||||||
Total investments | $ | 74,251 | $ | 7,531 | $ | 81,782 | |||||
Cash and cash equivalent | 4,539 | 275 | 4,814 | ||||||||
Repurchase and funding agreements(3) | (4,382 | ) | — | (4,382 | ) | ||||||
Total | $ | 74,408 | $ | 7,806 | $ | 82,214 |
Three Months Ended September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Yield | Amount (2) | Yield | Amount (2) | ||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
Fixed Maturities: (5) | |||||||||||||||||||||||
Income (loss) | 3.77 | % | $ | 699 | 3.42 | % | $ | 602 | |||||||||||||||
Ending assets | 74,565 | 71,216 | |||||||||||||||||||||
Mortgages: | |||||||||||||||||||||||
Income (loss) | 3.92 | % | 148 | 3.99 | % | 134 | |||||||||||||||||
Ending assets | 15,688 | 13,448 | |||||||||||||||||||||
Other Equity Investments: (1) | |||||||||||||||||||||||
Income (loss) | 2.95 | % | 26 | 31.06 | % | 213 | |||||||||||||||||
Ending assets | 3,468 | 2,903 | |||||||||||||||||||||
Policy Loans: | |||||||||||||||||||||||
Income (loss) | 4.90 | % | 49 | 5.11 | % | 52 | |||||||||||||||||
Ending assets | 4,018 | 4,027 | |||||||||||||||||||||
Cash and Short-term Investments: | |||||||||||||||||||||||
Income (loss) | (2.51) | % | (8) | (0.05) | % | — | |||||||||||||||||
Ending assets | 563 | 1,215 | |||||||||||||||||||||
Repurchase and funding agreements: | |||||||||||||||||||||||
Interest expense and other | (47) | (13) | |||||||||||||||||||||
Ending assets (liabilities) | (7,830) | (6,807) | |||||||||||||||||||||
Total Invested Assets: | |||||||||||||||||||||||
Income (loss) | 3.83 | % | 867 | 4.68 | % | 988 | |||||||||||||||||
Ending Assets | 90,472 | 86,002 | |||||||||||||||||||||
Short Duration Fixed Maturities: | |||||||||||||||||||||||
Income (loss) | 3.41 | % | 1 | 3.39 | % | 3 | |||||||||||||||||
Ending assets | 117 | 142 | |||||||||||||||||||||
Total: | |||||||||||||||||||||||
Investment income (loss) | 3.83 | % | 868 | 4.67 | % | 991 | |||||||||||||||||
Less: investment fees (3) | (0.17) | % | (38) | (0.13) | % | (28) | |||||||||||||||||
Investment Income, Net | 3.66 | % | 830 | 4.54 | % | 963 | |||||||||||||||||
Ending Net Assets | $ | 90,589 | $ | 86,144 | |||||||||||||||||||
Three Months Ended, March 31, | Year Ended December 31, 2017 | ||||||||||||||||
2018 | 2017 | ||||||||||||||||
Yield | Amount | Yield | Amount | ||||||||||||||
(Dollars in millions) | |||||||||||||||||
Fixed Maturities(1): | |||||||||||||||||
Investment grade | |||||||||||||||||
Income (loss) | 3.64 | % | $ | 396 | 3.67 | % | $ | 374 | $ | 1,515 | |||||||
Ending assets | 42,620 | 40,970 | 44,384 | ||||||||||||||
Below investment grade | |||||||||||||||||
Income (loss) | 6.52 | % | 22 | 7.32 | % | 30 | 113 | ||||||||||
Ending assets | 1,333 | 1,646 | 1,367 | ||||||||||||||
Mortgages: | |||||||||||||||||
Income (loss) | 4.18 | % | 116 | 4.66 | % | 116 | 454 | ||||||||||
Ending assets | 11,333 | 10,197 | 10,952 | ||||||||||||||
Real Estate Held for Production of Income: | |||||||||||||||||
Interest expense and other | (1.91 | )% | (4 | ) | (1.19 | )% | (1 | ) | 2 | ||||||||
Ending assets (liabilities) | 52 | 56 | 390 | ||||||||||||||
Other Equity Investments(2): | |||||||||||||||||
Income (loss) | 12.59 | % | 41 | 12.76 | % | 41 | 169 | ||||||||||
Ending assets | 1,298 | 1,410 | 1,289 | ||||||||||||||
Policy Loans: | |||||||||||||||||
Income (loss) | 5.71 | % | 54 | 5.76 | % | 55 | 221 | ||||||||||
Ending assets | 3,776 | 3,818 | 3,819 | ||||||||||||||
Cash and Short-term Investments: | |||||||||||||||||
Income (loss) | 0.71 | % | 8 | 0.67 | % | 6 | 32 | ||||||||||
Ending assets | 4,220 | 2,881 | 4,539 | ||||||||||||||
Repurchase and Funding agreements: | |||||||||||||||||
Interest expense and other | (9 | ) | (4 | ) | (21 | ) | |||||||||||
Ending (liabilities) | (4,397 | ) | (3,790 | ) | (4,382 | ) | |||||||||||
Total Invested Assets: | |||||||||||||||||
Income (loss) | 4.07 | % | 624 | 4.28 | % | 617 | 2,485 | ||||||||||
Ending assets | 60,235 | 57,188 | 62,358 | ||||||||||||||
Trading Securities: | |||||||||||||||||
Income (loss) | (0.94 | )% | (29 | ) | 5.19 | % | 119 | 231 | |||||||||
Ending assets | 12,907 | 9,689 | 12,050 | ||||||||||||||
Total: | |||||||||||||||||
Investment Income (loss) | 3.22 | % | 595 | 4.42 | % | 736 | 2,716 |
Nine Months Ended September 30, | Year Ended December 31 | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Yield | Amount (2) | Yield | Amount (2) | Yield | Amount (2) | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) | 3.52 | % | $ | 1,935 | 3.41 | % | $ | 1,822 | 3.40 | % | $ | 2,429 | |||||||||||||||||||||||||||||||||||
Ending assets | 74,565 | 71,216 | 72,545 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgages: | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) | 3.87 | % | 424 | 4.07 | % | 407 | 4.08 | % | 547 | ||||||||||||||||||||||||||||||||||||||
Ending assets | 15,688 | 13,448 | 14,033 | ||||||||||||||||||||||||||||||||||||||||||||
Other Equity Investments: (1) | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) | 7.80 | % | 188 | 22.97 | % | 433 | 20.45 | % | 534 | ||||||||||||||||||||||||||||||||||||||
Ending assets | 3,468 | 2,903 | 2,901 | ||||||||||||||||||||||||||||||||||||||||||||
Policy Loans: | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) | 5.30 | % | 160 | 5.28 | % | 161 | 5.01 | % | 203 | ||||||||||||||||||||||||||||||||||||||
Ending assets | 4,018 | 4,027 | 4,024 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and Short-term Investments: | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) | (0.83) | % | (12) | (0.05) | % | (1) | (0.13) | % | (2) | ||||||||||||||||||||||||||||||||||||||
Ending assets | 563 | 1,215 | 1,662 | ||||||||||||||||||||||||||||||||||||||||||||
Funding agreements: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense and other | (82) | (44) | (56) | ||||||||||||||||||||||||||||||||||||||||||||
Ending assets (liabilities) | (7,830) | (6,807) | (6,647) | ||||||||||||||||||||||||||||||||||||||||||||
Total Invested Assets: | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) | 3.86 | % | 2,613 | 4.37 | % | 2,778 | 4.28 | % | 3,655 | ||||||||||||||||||||||||||||||||||||||
Ending Assets | 90,472 | 86,002 | 88,518 | ||||||||||||||||||||||||||||||||||||||||||||
Short Duration Fixed Maturities: | |||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) | 3.53 | % | 4 | 3.38 | % | 77 | 4.48 | % | 78 | ||||||||||||||||||||||||||||||||||||||
Ending assets | 117 | 142 | 142 | ||||||||||||||||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||||||||
Investment income (loss) | 3.86 | % | 2,617 | 4.34 | % | 2,855 | 4.28 | % | 3,733 | ||||||||||||||||||||||||||||||||||||||
Less: investment fees (3) | (0.15) | % | (101) | (0.13) | % | (82) | (0.14) | % | (118) | ||||||||||||||||||||||||||||||||||||||
Investment Income, Net | 3.71 | % | 2,516 | 4.25 | % | 2,773 | 4.15 | % | 3,615 | ||||||||||||||||||||||||||||||||||||||
Ending Net Assets | $ | 90,589 | $ | 86,144 | $ | 88,660 | |||||||||||||||||||||||||||||||||||||||||
Less: investment fees | (0.10 | )% | (18 | ) | (0.11 | )% | (18 | ) | (68 | ) | |||||||
Investment Income, Net | 3.12 | % | $ | 577 | 4.31 | % | $ | 718 | $ | 2,648 | |||||||
Ending Net Assets | $ | 73,142 | $ | 66,877 | $ | 74,408 |
Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Percentage of Total (%) | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
As of September 30, 2022 | |||||||||||||||||||||||||||||||||||
Corporate Securities: | |||||||||||||||||||||||||||||||||||
Finance | $ | 14,195 | $ | — | $ | 10 | $ | 1,909 | $ | 12,296 | 19 | % | |||||||||||||||||||||||
Manufacturing | 12,421 | 1 | 11 | 2,044 | 10,387 | 16 | % | ||||||||||||||||||||||||||||
Utilities | 7,015 | — | 10 | 1,190 | 5,835 | 9 | % | ||||||||||||||||||||||||||||
Services | 8,320 | 21 | 9 | 1,365 | 6,943 | 11 | % | ||||||||||||||||||||||||||||
Energy | 3,901 | — | 9 | 652 | 3,258 | 5 | % | ||||||||||||||||||||||||||||
Retail and wholesale | 3,508 | — | 12 | 487 | 3,033 | 5 | % | ||||||||||||||||||||||||||||
Transportation | 2,409 | — | 8 | 430 | 1,987 | 3 | % | ||||||||||||||||||||||||||||
Other | 119 | — | — | 17 | 102 | — | % | ||||||||||||||||||||||||||||
Total corporate securities | 51,888 | 22 | 69 | 8,094 | 43,841 | 68 | % | ||||||||||||||||||||||||||||
U.S. government | 7,241 | — | 4 | 1,215 | 6,030 | 10 | % | ||||||||||||||||||||||||||||
Residential mortgage-backed (2) | 500 | — | 1 | 25 | 476 | 1 | % | ||||||||||||||||||||||||||||
Preferred stock | 41 | — | 2 | — | 43 | — | % | ||||||||||||||||||||||||||||
State & political | 668 | — | 8 | 92 | 584 | 1 | % | ||||||||||||||||||||||||||||
Foreign governments | 1,114 | — | 2 | 190 | 926 | 1 | % | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 3,824 | — | — | 574 | 3,250 | 5 | % | ||||||||||||||||||||||||||||
Asset-backed securities | 9,289 | — | 1 | 545 | 8,745 | 14 | % | ||||||||||||||||||||||||||||
Total | $ | 74,565 | $ | 22 | $ | 87 | $ | 10,735 | $ | 63,895 | 100 | % | |||||||||||||||||||||||
As of December 31, 2021 | |||||||||||||||||||||||||||||||||||
Corporate Securities: | |||||||||||||||||||||||||||||||||||
Finance | $ | 12,954 | $ | — | $ | 545 | $ | 59 | $ | 13,440 | 17 | % | |||||||||||||||||||||||
Manufacturing | 12,212 | 1 | 775 | 39 | 12,947 | 17 | % | ||||||||||||||||||||||||||||
Utilities | 6,446 | — | 351 | 36 | 6,761 | 9 | % | ||||||||||||||||||||||||||||
Services | 8,191 | 21 | 380 | 50 | 8,500 | 11 | % | ||||||||||||||||||||||||||||
Energy | 3,854 | — | 174 | 17 | 4,011 | 5 | % | ||||||||||||||||||||||||||||
Retail and wholesale | 3,390 | — | 218 | 18 | 3,590 | 5 | % | ||||||||||||||||||||||||||||
Transportation | 2,181 | — | 156 | 10 | 2,327 | 3 | % | ||||||||||||||||||||||||||||
Other | 60 | — | 2 | — | 62 | — | % | ||||||||||||||||||||||||||||
Total corporate securities | 49,288 | 22 | 2,601 | 229 | 51,638 | 67 | % | ||||||||||||||||||||||||||||
U.S. government | 13,056 | — | 2,344 | 15 | 15,385 | 20 | % | ||||||||||||||||||||||||||||
Residential mortgage-backed (2) | 90 | — | 8 | — | 98 | — | % | ||||||||||||||||||||||||||||
Preferred stock | 41 | — | 12 | — | 53 | — | % | ||||||||||||||||||||||||||||
State & political | 586 | — | 78 | 3 | 661 | 1 | % | ||||||||||||||||||||||||||||
Foreign governments | 1,124 | — | 42 | 14 | 1,152 | 1 | % | ||||||||||||||||||||||||||||
Commercial mortgage-backed | 2,427 | — | 19 | 25 | 2,421 | 3 | % | ||||||||||||||||||||||||||||
Asset-backed securities | 5,933 | — | 21 | 20 | 5,934 | 8 | % | ||||||||||||||||||||||||||||
Total | $ | 72,545 | $ | 22 | $ | 5,125 | $ | 306 | $ | 77,342 | 100 | % |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Percentage of Total (%) | ||||||||||||||
(in millions) | ||||||||||||||||||
At March 31, 2018: | ||||||||||||||||||
Corporate Securities: | ||||||||||||||||||
Finance | $ | 6,064 | $ | 113 | $ | 60 | $ | 6,117 | 14 | % | ||||||||
Manufacturing | 8,026 | 166 | 133 | 8,059 | 18 | % | ||||||||||||
Utilities | 4,206 | 134 | 75 | 4,265 | 10 | % | ||||||||||||
Services | 3,639 | 78 | 55 | 3,662 | 8 | % | ||||||||||||
Energy | 2,084 | 66 | 36 | 2,114 | 5 | % | ||||||||||||
Retail and wholesale | 1,365 | 20 | 21 | 1,364 | 3 | % | ||||||||||||
Transportation | 1,078 | 36 | 24 | 1,090 | 2 | % | ||||||||||||
Other | 145 | 5 | 1 | 149 | — | % | ||||||||||||
Total corporate securities | 26,607 | 618 | 405 | 26,820 | 60 | % | ||||||||||||
U.S. government and agency | 14,757 | 387 | 506 | 14,638 | 34 | % | ||||||||||||
Residential mortgage-backed(2) | 614 | 16 | 3 | 627 | 1 | % | ||||||||||||
Preferred stock | 473 | 44 | 4 | 513 | 1 | % | ||||||||||||
State & municipal | 422 | 56 | 1 | 477 | 1 | % | ||||||||||||
Foreign governments | 405 | 23 | 9 | 419 | 1 | % | ||||||||||||
Asset-backed securities | 675 | 4 | 4 | 675 | 2 | % | ||||||||||||
Total | $ | 43,953 | $ | 1,148 | $ | 932 | $ | 44,169 | 100 | % | ||||||||
At December 31, 2017 | ||||||||||||||||||
Corporate Securities: | ||||||||||||||||||
Finance | $ | 5,824 | $ | 200 | $ | 7 | $ | 6,017 | 13 | % | ||||||||
Manufacturing | 7,546 | 289 | 15 | 7,820 | 17 | % | ||||||||||||
Utilities | 4,032 | 210 | 13 | 4,229 | 9 | % | ||||||||||||
Services | 3,307 | 130 | 15 | 3,422 | 7 | % | ||||||||||||
Energy | 1,980 | 101 | 9 | 2,072 | 4 | % | ||||||||||||
Retail and wholesale | 1,404 | 36 | 3 | 1,437 | 3 | % | ||||||||||||
Transportation | 957 | 58 | 3 | 1,012 | 2 | % | ||||||||||||
Other | 128 | 7 | — | 135 | — | % | ||||||||||||
Total corporate securities | 25,178 | 1,031 | 65 | 26,144 | 55 | % | ||||||||||||
U.S. government and agency | 17,744 | 1,000 | 251 | 18,493 | 39 | % | ||||||||||||
Residential mortgage-backed(2) | 797 | 22 | 1 | 818 | 2 | % | ||||||||||||
Preferred stock | 470 | 43 | 1 | 512 | 1 | % | ||||||||||||
State & municipal | 422 | 67 | — | 489 | 1 | % | ||||||||||||
Foreign governments | 395 | 29 | 5 | 419 | 1 | % | ||||||||||||
Asset-backed securities | 745 | 5 | 1 | 749 | 1 | % | ||||||||||||
Total | $ | 45,751 | $ | 2,197 | $ | 324 | $ | 47,624 | 100 | % |
NAIC Designation | Rating Agency Equivalent | Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||
As of September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
1................................ | Aaa, Aa, A | $ | 45,386 | $ | — | $ | 52 | $ | 6,043 | $ | 39,395 | |||||||||||||||||||||||||||
2................................ | Baa | 26,373 | — | 31 | 4,448 | 21,956 | ||||||||||||||||||||||||||||||||
Investment grade | 71,759 | — | 83 | 10,491 | 61,351 | |||||||||||||||||||||||||||||||||
3................................ | Ba | 1,648 | 1 | 2 | 172 | 1,477 | ||||||||||||||||||||||||||||||||
4................................ | B | 1,113 | 19 | 2 | 70 | 1,026 | ||||||||||||||||||||||||||||||||
5................................ | Caa | 45 | 2 | — | 2 | 41 | ||||||||||||||||||||||||||||||||
6................................ | Ca, C | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Below investment grade | 2,806 | 22 | 4 | 244 | 2,544 | |||||||||||||||||||||||||||||||||
Total Fixed Maturities | $ | 74,565 | $ | 22 | $ | 87 | $ | 10,735 | $ | 63,895 | ||||||||||||||||||||||||||||
As of December 31, 2021: | ||||||||||||||||||||||||||||||||||||||
1................................ | Aaa, Aa, A | $ | 44,653 | $ | — | $ | 3,734 | $ | 158 | $ | 48,229 | |||||||||||||||||||||||||||
2................................ | Baa | 25,141 | — | 1,357 | 127 | 26,371 | ||||||||||||||||||||||||||||||||
Investment grade | 69,794 | — | 5,091 | 285 | 74,600 | |||||||||||||||||||||||||||||||||
3................................ | Ba | 1,601 | 1 | 22 | 14 | 1,608 | ||||||||||||||||||||||||||||||||
4................................ | B | 992 | 19 | 8 | 5 | 976 | ||||||||||||||||||||||||||||||||
5................................ | Caa | 130 | 2 | 4 | 1 | 131 | ||||||||||||||||||||||||||||||||
6................................ | Ca, C | 28 | — | — | 1 | 27 | ||||||||||||||||||||||||||||||||
Below investment grade | 2,751 | 22 | 34 | 21 | 2,742 | |||||||||||||||||||||||||||||||||
Total Fixed Maturities | $ | 72,545 | $ | 22 | $ | 5,125 | $ | 306 | $ | 77,342 |
NAIC Designation(1) | Rating Agency Equivalent | Amortized Costs | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
(in millions) | ||||||||||||||||||
At March 31, 2018: | ||||||||||||||||||
1 | Aaa, Aa, A | $ | 26,432 | $ | 713 | $ | 690 | $ | 26,455 | |||||||||
2 | Baa | 8,127 | 288 | 123 | 8,292 | |||||||||||||
Investment grade | 34,559 | 1,001 | 813 | 34,747 | ||||||||||||||
3 | Ba | 250 | 1 | 1 | 250 | |||||||||||||
4 | B | 120 | — | 6 | 114 | |||||||||||||
5 | C and lower | 4 | — | — | 4 | |||||||||||||
6 | In or near default | 3 | — | — | 3 | |||||||||||||
Below investment grade | 377 | 1 | 7 | 371 | ||||||||||||||
Total Public Fixed Maturities | $ | 34,936 | $ | 1,002 | $ | 820 | $ | 35,118 | ||||||||||
At December 31, 2017 | ||||||||||||||||||
1 | Aaa, Aa, A | $ | 29,137 | $ | 1,506 | $ | 274 | $ | 30,369 | |||||||||
2 | Baa | 7,521 | 434 | 10 | 7,945 | |||||||||||||
Investment grade | 36,658 | 1,940 | 284 | 38,314 | ||||||||||||||
3 | Ba | 304 | 5 | 6 | 303 | |||||||||||||
4 | B | 119 | — | 1 | 118 | |||||||||||||
5 | C and lower | 3 | — | — | 3 | |||||||||||||
6 | In or near default | 9 | — | — | 9 | |||||||||||||
Below investment grade | 435 | 5 | 7 | 433 | ||||||||||||||
Total Public Fixed Maturities | $ | 37,093 | $ | 1,945 | $ | 291 | $ | 38,747 |
NAIC Designation(1) | Rating Agency Equivalent | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in millions) | |||||||||||||||||
At March 31, 2018: | |||||||||||||||||
1 | Aaa, Aa, A | $ | 4,638 | $ | 71 | $ | 44 | $ | 4,665 | ||||||||
2 | Baa | 3,683 | 71 | 52 | 3,702 | ||||||||||||
Investment grade | 8,321 | 142 | 96 | 8,367 | |||||||||||||
3 | Ba | 346 | 1 | 6 | 341 | ||||||||||||
4 | B | 331 | 1 | 10 | 322 | ||||||||||||
5 | C and lower | 18 | — | — | 18 | ||||||||||||
6 | In or near default | 1 | 2 | — | 3 | ||||||||||||
Below investment grade | 696 | 4 | 16 | 684 | |||||||||||||
Total Private Fixed Maturities | $ | 9,017 | $ | 146 | $ | 112 | $ | 9,051 | |||||||||
At December 31, 2017: | |||||||||||||||||
1 | Aaa, Aa, A | $ | 4,356 | $ | 122 | $ | 12 | $ | 4,466 | ||||||||
2 | Baa | 3,610 | 123 | 10 | 3,723 | ||||||||||||
Investment grade | 7,966 | 245 | 22 | 8,189 | |||||||||||||
3 | Ba | 358 | 2 | 4 | 356 | ||||||||||||
4 | B | 315 | 2 | 7 | 310 | ||||||||||||
5 | C and lower | 17 | 1 | — | 18 | ||||||||||||
6 | In or near default | 2 | 2 | — | 4 | ||||||||||||
Below investment grade | 692 | 7 | 11 | 688 | |||||||||||||
Total Private Fixed Maturities | $ | 8,658 | $ | 252 | $ | 33 | $ | 8,877 |
NAIC Designation(1) | Rating Agency Equivalent | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(in millions) | |||||||||||||||||
At March 31, 2018: | |||||||||||||||||
1 | Aaa, Aa, A | $ | 14,329 | $ | 300 | $ | 214 | $ | 14,415 | ||||||||
2 | Baa | 11,211 | 313 | 168 | 11,356 | ||||||||||||
Investment grade | 25,540 | 613 | 382 | 25,771 | |||||||||||||
3 | Ba | 594 | 2 | 8 | 588 | ||||||||||||
4 | B | 449 | 1 | 15 | 435 | ||||||||||||
5 | C and lower | 21 | — | — | 21 | ||||||||||||
6 | In or near default | 2 | 2 | — | 4 | ||||||||||||
Below investment grade | 1,066 | 5 | 23 | 1,048 | |||||||||||||
Total Corporate Fixed Maturities | $ | 26,606 | $ | 618 | $ | 405 | $ | 26,819 | |||||||||
At December 31, 2017: | |||||||||||||||||
1 | Aaa, Aa, A | $ | 13,517 | $ | 508 | $ | 29 | $ | 13,996 | ||||||||
2 | Baa | 10,543 | 510 | 19 | 11,034 | ||||||||||||
Investment grade | 24,060 | 1,018 | 48 | 25,030 | |||||||||||||
3 | Ba | 660 | 7 | 9 | 658 | ||||||||||||
4 | B | 432 | 3 | 8 | 427 | ||||||||||||
5 | C and lower | 19 | — | — | 19 | ||||||||||||
6 | In or near default | 7 | 3 | — | 10 | ||||||||||||
Below investment grade | 1,118 | 13 | 17 | 1,114 | |||||||||||||
Total Corporate Fixed Maturities | $ | 25,178 | $ | 1,031 | $ | 65 | $ | 26,144 |
March 31, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Commercial mortgage loans | $ | 8,755 | $ | 8,386 | |||
Agricultural mortgage loans | 2,585 | 2,574 | |||||
Total mortgage loans | $ | 11,340 | $ | 10,960 |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Amortized Cost | % of Total | Amortized Cost | % of Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
By Region: | |||||||||||||||||||||||
U.S. Regions: | |||||||||||||||||||||||
Pacific | $ | 4,659 | 30 | % | $ | 4,297 | 30 | % | |||||||||||||||
Middle Atlantic | 3,574 | 23 | 3,441 | 24 | |||||||||||||||||||
South Atlantic | 2,038 | 13 | 1,982 | 14 | |||||||||||||||||||
East North Central | 1,009 | 6 | 1,103 | 8 | |||||||||||||||||||
Mountain | 1,374 | 9 | 978 | 7 | |||||||||||||||||||
West North Central | 841 | 5 | 834 | 6 | |||||||||||||||||||
West South Central | 968 | 6 | 609 | 5 | |||||||||||||||||||
New England | 726 | 5 | 579 | 4 | |||||||||||||||||||
East South Central | 249 | 2 | 146 | 1 | |||||||||||||||||||
Total U.S. | $ | 15,438 | 98 | % | $ | 13,969 | 99 | % | |||||||||||||||
Other Regions: | |||||||||||||||||||||||
Europe | $ | 333 | 2 | % | $ | 126 | 1 | % | |||||||||||||||
Total Other | $ | 333 | 2 | $ | 126 | 1 | |||||||||||||||||
Total Mortgage Loans | $ | 15,771 | 100 | % | $ | 14,095 | 100 | % | |||||||||||||||
By Property Type: | |||||||||||||||||||||||
Office | $ | 4,511 | 29 | % | $ | 3,944 | 28 | % | |||||||||||||||
Multifamily | 5,417 | 34 | 4,694 | 33 | |||||||||||||||||||
Agricultural loans | 2,597 | 16 | 2,644 | 19 | |||||||||||||||||||
Retail | 328 | 2 | 728 | 5 | |||||||||||||||||||
Industrial | 1,837 | 12 | 1,204 | 9 | |||||||||||||||||||
Hospitality | 406 | 3 | 410 | 3 | |||||||||||||||||||
Other | 675 | 4 | 471 | 3 | |||||||||||||||||||
Total Mortgage Loans | $ | 15,771 | 100 | % | $ | 14,095 | 100 | % |
March 31, 2018 | December 31, 2017 | ||||||||||||
Amortized Cost | % of Total | Amortized Cost | % of Total | ||||||||||
(Dollars in millions) | |||||||||||||
By Region: | |||||||||||||
U.S. Regions: | |||||||||||||
Pacific | $ | 3,308 | 29.2 | % | $ | 3,264 | 29.8 | % | |||||
Middle Atlantic | 3,108 | 27.4 | 2,958 | 27.0 | |||||||||
South Atlantic | 1,266 | 11.2 | 1,096 | 10.0 | |||||||||
East North Central | 929 | 8.2 | 917 | 8.4 | |||||||||
Mountain | 812 | 7.1 | 800 | 7.3 | |||||||||
West North Central | 769 | 6.8 | 778 | 7.1 | |||||||||
West South Central | 507 | 4.5 | 499 | 4.5 | |||||||||
New England | 459 | 4.0 | 460 | 4.2 | |||||||||
East South Central | 182 | 1.6 | 188 | 1.7 | |||||||||
Total Mortgage Loans | $ | 11,340 | 100.0 | % | $ | 10,960 | 100.0 | % | |||||
By Property Type: | |||||||||||||
Office Buildings | $ | 3,767 | 33.2 | % | $ | 3,639 | 33.2 | % | |||||
Apartment Complexes | 3,200 | 28.2 | 3,014 | 27.5 | |||||||||
Agricultural properties | 2,585 | 22.8 | 2,574 | 23.5 | |||||||||
Retail stores | 695 | 6.1 | 647 | 5.9 | |||||||||
Hospitality | 426 | 3.8 | 417 | 3.8 | |||||||||
Industrial | 325 | 2.9 | 326 | 3.0 | |||||||||
Other | 342 | 3.0 | 343 | 3.1 | |||||||||
Total mortgage loans | $ | 11,340 | 100.0 | % | $ | 10,960 | 100.0 | % |
Debt Service Coverage Ratio(1) | |||||||||||||||||||||||||||
Loan-to-Value Ratio(2) | Greater than 2.0x | 1.8x to 2.0x | 1.5x to 1.8x | 1.2x to 1.5x | 1.0x to 1.2x | Less than 1.0x | Total Mortgage Loans | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
0% - 50% | $ | 1,012 | $ | 174 | $ | 597 | $ | 569 | $ | 321 | $ | 29 | $ | 2,702 | |||||||||||||
50% - 70% | 4,588 | 689 | 1,341 | 759 | 406 | 48 | 7,831 | ||||||||||||||||||||
70% - 90% | 169 | 110 | 144 | 330 | 27 | — | 780 | ||||||||||||||||||||
90% plus | — | — | 27 | — | — | — | 27 | ||||||||||||||||||||
Total commercial and agricultural mortgage loans | $ | 5,769 | $ | 973 | $ | 2,109 | $ | 1,658 | $ | 754 | $ | 77 | $ | 11,340 |
Debt Service Coverage Ratio(1) | |||||||||||||||||||||||||||
Loan-to-Value Ratio(2) | Greater than 2.0x | 1.8x to 2.0x | 1.5x to 1.8x | 1.2x to 1.5x | 1.0x to 1.2x | Less than 1.0x | Total Mortgage Loans | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
0% - 50% | $ | 1,031 | $ | 149 | $ | 595 | $ | 589 | $ | 316 | $ | 30 | $ | 2,710 | |||||||||||||
50% - 70% | 4,199 | 728 | 1,293 | 787 | 366 | 49 | 7,422 | ||||||||||||||||||||
70% - 90% | 169 | 110 | 196 | 276 | 50 | — | 801 | ||||||||||||||||||||
90% plus | — | — | 27 | — | — | — | 27 | ||||||||||||||||||||
Total commercial and agricultural mortgage loans | $ | 5,399 | $ | 987 | $ | 2,111 | $ | 1,652 | $ | 732 | $ | 79 | $ | 10,960 |
March 31, 2018 | ||||||
Year of Origination | Amortized Cost | % of Total | ||||
(in millions) | ||||||
2018 | $ | 391 | 3.5 | % | ||
2017 | 2,043 | 18.0 | ||||
2016 | 3,305 | 29.1 | ||||
2015 | 1,556 | 13.7 | ||||
2014 | 1,174 | 10.4 | ||||
2013 and prior | 2,871 | 25.3 | ||||
Total mortgage loans | $ | 11,340 | 100.0 | % |
December 31, 2017 | ||||||
Year of Origination | Amortized Cost | % of Total | ||||
(in millions) | ||||||
2017 | $ | 2,026 | 18.5 | % | ||
2016 | 3,298 | 30.1 | ||||
2015 | 1,551 | 14.2 | ||||
2014 | 1,170 | 10.7 | ||||
2013 | 1,485 | 13.5 | ||||
2012 and prior | 1,430 | 13.0 | ||||
Total mortgage loans | $ | 10,960 | 100.0 | % |
2018 | 2017 | ||||||
Allowance for credit losses: | (in millions) | ||||||
Beginning Balance, January 1 | $ | 8 | $ | 8 | |||
Charge-offs | — | — | |||||
Recoveries | (1 | ) | — | ||||
Provision | — | — | |||||
Ending Balance, March 31 | $ | 7 | $ | 8 | |||
Ending Balance, March 31: | |||||||
Individually Evaluated for Impairment | $ | 7 | $ | 8 |
March 31, 2018 | December 31, 2017 | ||||||
(in millions) | |||||||
Common stock | $ | 13 | $ | 158 | |||
Joint ventures and limited partnerships: | |||||||
Private equity | 963 | 927 | |||||
Hedge funds | 152 | 179 | |||||
Total Other Equity Investments | $ | 1,128 | $ | 1,264 |
At March 31, 2018 | |||||||||||||||
Fair Value | Gains (Losses) Reported in Net Earnings (Loss) Three Months Ended March 31, 2018 | ||||||||||||||
Notional Amount | Asset Derivatives | Liability Derivatives | |||||||||||||
(in millions) | |||||||||||||||
Freestanding derivatives | |||||||||||||||
Equity contracts:(1) | |||||||||||||||
Futures | $ | 6,450 | $ | — | $ | — | $ | (24 | ) | ||||||
Swaps | 7,881 | 253 | 15 | 112 | |||||||||||
Options | 23,013 | 3,350 | 1,411 | (18 | ) | ||||||||||
Interest rate contracts:(1) | |||||||||||||||
Floors | — | — | — | — | |||||||||||
Swaps | 29,281 | 555 | 394 | (672 | ) | ||||||||||
Futures | 24,015 | — | — | 40 | |||||||||||
Swaptions | — | — | — | — | |||||||||||
Credit contracts:(1) | |||||||||||||||
Credit default swaps | 2,057 | 30 | 1 | — | |||||||||||
Other freestanding contracts:(1) | |||||||||||||||
Foreign currency contracts | 1,623 | 1 | 44 | (51 | ) | ||||||||||
Margin | 59 | 57 | |||||||||||||
Collateral | 16 | 2,207 | |||||||||||||
Embedded derivatives: | |||||||||||||||
GMIB reinsurance contracts(4) | — | 1,734 | — | (161 | ) | ||||||||||
GMxB derivative features liability(2,4) | — | — | 3,977 | (460 | ) | ||||||||||
SCS, SIO, MSO and IUL indexed features(3,4) | — | — | 1,683 | (279 | ) | ||||||||||
Total | $ | 94,320 | $ | 5,998 | $ | 9,789 | $ | (1,513 | ) |
At December 31, 2017 | Gains (Losses) Reported in Net Earnings (Loss) March 31, 2017 | ||||||||||||||
Fair Value | |||||||||||||||
Notional Amount | Asset Derivatives | Liability Derivatives | |||||||||||||
(in millions) | |||||||||||||||
Freestanding derivatives | |||||||||||||||
Equity contracts:(1) | |||||||||||||||
Futures | $ | 6,552 | $ | — | $ | — | $ | (391 | ) | ||||||
Swaps | 7,555 | 3 | 200 | (403 | ) | ||||||||||
Options | 22,223 | 3,456 | 1,457 | 318 | |||||||||||
Interest rate contracts:(1) | |||||||||||||||
Floors | — | — | — | — | |||||||||||
Swaps | 26,725 | 603 | 192 | 143 | |||||||||||
Futures | 20,675 | — | — | (19 | ) | ||||||||||
Credit contracts:(1) | |||||||||||||||
Credit default swaps | 2,057 | 34 | 2 | 6 | |||||||||||
Other freestanding contracts:(1) | |||||||||||||||
Foreign currency contracts | 1,297 | 11 | 2 | — | |||||||||||
Margin | — | 18 | 4 | — | |||||||||||
Collateral | — | 4 | 2,123 | — | |||||||||||
Embedded derivatives: | |||||||||||||||
GMIB reinsurance contracts(4) | — | 1,894 | — | (514 | ) | ||||||||||
GMxB derivative features liability(2,4) | — | — | 4,358 | (58 | ) | ||||||||||
SCS, SIO, MSO and IUL indexed features(3,4) | — | — | 1,786 | (301 | ) | ||||||||||
Total | $ | 87,084 | $ | 6,023 | $ | 10,124 | $ | (1,219 | ) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Fixed maturities | $ | 109 | $ | (6 | ) | ||
Other equity investments | — | 4 | |||||
Other | — | — | |||||
Total | $ | 109 | $ | (2 | ) |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Gross realized investment gains: | |||||||
Gross gains on sales and maturities | $ | 161 | $ | 20 | |||
Other | — | — | |||||
Total gross realized investment gains | 161 | 20 | |||||
Gross realized investment losses: | |||||||
Other-than-temporary impairments recognized in income (loss) | — | — | |||||
Gross losses on sales and maturities | (52 | ) | (26 | ) | |||
Total gross realized investment losses | (52 | ) | (26 | ) | |||
Total | $ | 109 | $ | (6 | ) |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Highly Liquid Assets, beginning of period | $ | 1,742 | $ | 3,088 | |||||||
Dividends from subsidiaries | 1,574 | 545 | |||||||||
Capital contributions to subsidiaries | (150) | (760) | |||||||||
M&A Activity | — | 215 | |||||||||
Total Business Capital Activity | 1,424 | — | |||||||||
Purchase of treasury shares | (699) | (1,169) | |||||||||
Shareholder dividends paid | (220) | (224) | |||||||||
Total Share Repurchases, Dividends and Acquisition Activity | (919) | (1,393) | |||||||||
Issuance of preferred stock | — | 293 | |||||||||
Preferred stock dividend | (54) | (53) | |||||||||
Total Preferred Stock Activity | (54) | 240 | |||||||||
Issuance of long-term debt | — | — | |||||||||
Repayment of long-term debt | — | (280) | |||||||||
Total External Debt Activity | — | (280) | |||||||||
Proceeds from loans from affiliates | — | 1,000 | |||||||||
Net decrease (increase) in existing facilities to affiliates (1) | 65 | 285 | |||||||||
Total Affiliated Debt Activity | 65 | 1,285 | |||||||||
Interest paid on external debt and P-Caps | (116) | (140) | |||||||||
Others, net | 89 | (278) | |||||||||
Total Other Activity | (27) | (418) | |||||||||
Net increase (decrease) in highly liquid assets | 489 | (566) | |||||||||
Highly Liquid Assets, end of period | $ | 2,231 | $ | 2,522 | |||||||
Percentage Ownership | |||||
EQH and its subsidiaries | % | ||||
AB Holding | % | ||||
Unaffiliated holders | % | ||||
Total | 100.0 | % |
Three Months Ended March 31, | |||||||
2018 | 2017 | ||||||
(in millions) | |||||||
Cash and Cash Equivalents, beginning of period | $ | 4,814 | $ | 5,654 | |||
Net cash provided by (used in) operating activities | (264 | ) | 72 | ||||
Net cash provided by (used in) investing activities | 459 | (2,899 | ) | ||||
Net cash provided by financing activities | 1,074 | 2,630 | |||||
Effect of exchange rates | 8 | 8 | |||||
Cash and Cash Equivalents, end of period | $ | 6,091 | $ | 5,465 |
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||||||||||
Holdings and AXA Financial | AXA Equitable Life(1) | AB | Consolidated | Holdings and AXA Financial | AXA Equitable Life | AB | Consolidated | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Short-term and long-term debt | |||||||||||||||||||||||||||||||
Commercial paper | $ | 1,534 | $ | — | $ | 490 | $ | 2,024 | $ | 1,290 | $ | — | $ | 491 | $ | 1,781 | |||||||||||||||
AB Revolver | — | — | — | — | — | — | 75 | 75 | |||||||||||||||||||||||
Long-term debt | 349 | — | — | 349 | 349 | 203 | — | 552 | |||||||||||||||||||||||
Total short-term and long-term debt | 1,883 | — | 490 | 2,373 | 1,639 | 203 | 566 | 2,408 | |||||||||||||||||||||||
Loans from affiliates | |||||||||||||||||||||||||||||||
Loans from affiliates | 2,530 | — | — | 2,530 | 3,622 | — | — | 3,622 | |||||||||||||||||||||||
Total borrowings | $ | 4,413 | $ | — | $ | 490 | $ | 4,903 | $ | 5,261 | $ | 203 | $ | 566 | $ | 6,030 |
September 30, | December 31, | ||||||||||
2022 | 2021 | ||||||||||
(in millions) | |||||||||||
Short-term debt: | |||||||||||
CLO Warehousing Debt | $ | 248 | $ | 92 | |||||||
Senior Notes (3.9%, due 2023) | 519 | 519 | |||||||||
Total short-term debt | 767 | 611 | |||||||||
Long-term debt: | |||||||||||
Senior Notes (5.0%, due 2048) | 1,480 | 1,481 | |||||||||
Senior Notes (4.35%, due 2028) | 1,491 | 1,490 | |||||||||
Senior Debentures, (7.0%, due 2028) | 350 | 349 | |||||||||
Total long-term debt | 3,321 | 3,320 | |||||||||
Total short-term and long-term debt | $ | 4,088 | $ | 3,931 |
AM Best | S&P | Moody’s | |||||||||||||||
Last review date | |||||||||||||||||
Financial Strength Ratings: | |||||||||||||||||
A | A+ | ||||||||||||||||
A | A+ | ||||||||||||||||
Credit Ratings: | |||||||||||||||||
BBB+ | Baa1 | ||||||||||||||||
A2 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
7/1/22 through 7/31/22 | 1,167,227 | $ | 25.70 | 1,167,227 | $ | 674,529,426 | |||||||||||||||||
8/1/22 through 8/31/22 | 1,943,449 | $ | 30.60 | 1,943,449 | $ | 615,054,615 | |||||||||||||||||
9/1/22 through 9/30/22 | 3,869,178 | $ | 28.60 | 3,869,178 | $ | 577,554,615 | |||||||||||||||||
Total | 6,979,854 | $ | 28.67 | 6,979,854 | $ | 577,554,615 |
Number | Description and Method of Filing | |||||||||
# | ||||||||||
First Allmerica Financial Life Insurance Company (redacted) | ||||||||||
Coinsurance and Modified Coinsurance Agreement, dated as of | ||||||||||
Life Insurance Company (redacted) | |||||||||||
# | |||||||||||
31.2 | Certification of the Registrant’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||
32.1 | Certification of the Registrant’s Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||||
32.2 | Certification of the Registrant’s Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||
101.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 (formatted in Inline XBRL and contained in Exhibits 101). |
Account Value (“AV”) | Generally equals the aggregate policy account value of our retirement and protection products. General Account AV refers to account balances in investment options that are backed by the General Account while Separate Accounts AV refers to Separate Accounts investment assets. | ||||
Alternative investments | Investments in real estate and real estate joint ventures and other limited partnerships. | ||||
Assets under administration (“AUA”) | Includes non-insurance client assets that are invested in our savings and investment products or serviced by our Equitable Advisors platform. We provide administrative services for these assets and generally record the revenues received as distribution fees. | ||||
Assets under management (“AUM”) | Investment assets that are managed by one of our subsidiaries and includes: (i) assets managed by AB, (ii) the assets in our GAIA portfolio and (iii) the Separate Account assets of our retirement and protection businesses. Total AUM reflects exclusions between segments to avoid double counting. | ||||
Combined RBC Ratio | Calculated as the overall aggregate RBC ratio for the Company’s insurance subsidiaries including capital held for its life insurance and variable annuity liabilities and non-variable annuity insurance liabilities. | ||||
Conditional tail expectation (“CTE”) | Calculated as the average amount of total assets required to satisfy obligations over the life of the contract or policy in the worst x% of scenarios. Represented as CTE (100 less x). Example: CTE95 represents the worst five percent of scenarios. | ||||
Deferred policy acquisition cost (“DAC”) | Represents the incremental costs related directly to the successful acquisition of new and certain renewal insurance policies and annuity contracts and which have been deferred on the balance sheet as an asset. | ||||
Deferred sales inducements (“DSI”) | Represent amounts that are credited to a policyholder’s account balance that are higher than the expected crediting rates on similar contracts without such an inducement and that are an incentive to purchase a contract and also meet the accounting criteria to be deferred as an asset that is amortized over the life of the contract. | ||||
Dividends Received Deduction (“DRD”) | A tax deduction under U.S. federal income tax law received by a corporation on the dividends it receives from other corporations in which it has an ownership stake. | ||||
Fee-type revenue | Revenue from fees and related items, including policy charges and fee income, premiums, investment management and service fees, and other income. | ||||
Gross Premiums | FYP and Renewal premium and deposits |
Invested assets | Includes fixed maturity securities, equity securities, mortgage loans, policy loans, alternative investments and short-term investments. | ||||
Protection Solutions Reserves | Equals the aggregate value of Policyholders’ account balances and Future policy benefits for policies in our Protection Solutions segment. | ||||
Reinsurance | Insurance policies purchased by insurers to limit the total loss they would experience from an insurance claim. | ||||
Renewal premium and deposits | Premiums and deposits after the first twelve months of the policy or contract. | ||||
Risk-based capital (“RBC”) | Rules to determine insurance company statutory capital requirements. It is based on rules published by the National Association of Insurance Commissioners (“NAIC”). | ||||
Total adjusted capital (“TAC”) | Primarily consists of capital and surplus, and the asset valuation reserve. | ||||
Product Terms | |||||
401(k) | A tax-deferred retirement savings plan sponsored by an employer. 401(k) refers to the section of the Internal Revenue Code of 1986, as amended (the “Code”) pursuant to which these plans are established. | ||||
403(b) | A tax-deferred retirement savings plan available to certain employees of public schools and certain tax-exempt organizations. 403(b) refers to the section of the Code pursuant to which these plans are established. | ||||
Affluent | Refers to individuals with $250,000 to $999,999 of investable assets. | ||||
Annuitant | The person who receives annuity payments or the person whose life expectancy determines the amount of variable annuity payments upon annuitization of an annuity to be paid for life. | ||||
Annuitization | The process of converting an annuity investment into a series of periodic income payments, generally for life. |
Benefit base | A notional amount (not actual cash value) used to calculate the owner’s guaranteed benefits within an annuity contract. The death benefit and living benefit within the same contract may not have the same benefit base. | ||||
Cash surrender value | The amount an insurance company pays (minus any surrender charge) to the policyholder when the contract or policy is voluntarily terminated prematurely. | ||||
Dollar-for-dollar withdrawal | A method of calculating the reduction of a variable annuity benefit base after a withdrawal in which the benefit is reduced by one dollar for every dollar withdrawn. | ||||
Future policy benefits | Future policy benefits for the annuities business are comprised mainly of liabilities for life-contingent income annuities, and liabilities for the variable annuity guaranteed minimum benefits accounted for as insurance. Future policy benefits for the life business are comprised mainly of liabilities for traditional life and certain liabilities for universal and variable life insurance contracts (other than the Policyholders’ account balance). | ||||
General Account Investment Portfolio | The invested assets held in the General Account. | ||||
General Account | The assets held in the general accounts of our insurance companies as well as assets held in our separate accounts on which we bear the investment risk. | ||||
GMxB | A general reference to all forms of variable annuity guaranteed benefits, including guaranteed minimum living benefits, or GMLBs (such as GMIBs, GMWBs and GMABs), and guaranteed minimum death benefits, or GMDBs (inclusive of return of premium death benefit guarantees). | ||||
Guaranteed income benefit (“GIB”) | An optional benefit which provides the policyholder with a guaranteed lifetime annuity based on predetermined annuity purchase rates applied to a GIB benefit base, with annuitization automatically triggered if and when the contract AV falls to zero. |
Guaranteed minimum accumulation benefits (“GMAB”) | An optional benefit (available for an additional cost) which entitles an annuitant to a minimum payment, typically in lump-sum, after a set period of time, typically referred to as the accumulation period. The minimum payment is based on the benefit base, which could be greater than the underlying AV. | ||||
Guaranteed minimum death benefits (“GMDB”) | An optional benefit (available for an additional cost) that guarantees an annuitant’s beneficiaries are entitled to a minimum payment based on the benefit base, which could be greater than the underlying AV, upon the death of the annuitant. | ||||
Guaranteed minimum income benefits (“GMIB”) | An optional benefit (available for an additional cost) where an annuitant is entitled to annuitize the policy and receive a minimum payment stream based on the benefit base, which could be greater than the underlying AV. | ||||
Guaranteed minimum living benefits (“GMLB”) | A reference to all forms of guaranteed minimum living benefits, including GMIBs, GMWBs and GMABs (does not include GMDBs). | ||||
Guaranteed minimum withdrawal benefits (“GMWB”) | An optional benefit (available for an additional cost) where an annuitant is entitled to withdraw a maximum amount of their benefit base each year, for which cumulative payments to the annuitant could be greater than the underlying AV. | ||||
Guaranteed Universal Life (“GUL”) | A universal life insurance offering with a lifetime no lapse guarantee rider, otherwise known as a guaranteed UL policy. With a GUL policy, the premiums are guaranteed to last the life of the policy. | ||||
Guaranteed withdrawal benefit for life (“GWBL”) | An optional benefit (available for an additional cost) where an annuitant is entitled to withdraw a maximum amount of their benefit base each year, for the duration of the policyholder’s life, regardless of account performance. | ||||
High net worth | Refers to individuals with $1,000,000 or more of investable assets. | ||||
Indexed Universal Life (“IUL”) | A permanent life insurance offering built on a universal life insurance framework that uses an equity-linked approach for generating policy investment returns. | ||||
Living benefits | Optional benefits (available at an additional cost) that guarantee that the policyholder will get back at least his original investment when the money is withdrawn. | ||||
Mortality and expense risk fee (“M&E fee”) | A fee charged by insurance companies to compensate for the risk they take by issuing life insurance and variable annuity contracts. |
Net flows | Net change in customer account balances in a period including, but not limited to, gross premiums, surrenders, withdrawals and benefits. It excludes investment performance, interest credited to customer accounts and policy charges. | ||||
Policyholder account balances | Annuities. Policyholder account balances are held for fixed deferred annuities, the fixed account portion of variable annuities and non-life contingent income annuities. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums. Life Insurance Policies. Policyholder account balances are held for retained asset accounts, universal life policies and the fixed account of universal variable life insurance policies. Interest is credited to the policyholder’s account at interest rates we determine which are influenced by current market rates, subject to specified minimums. | ||||
Return of premium (“ROP”) death benefit | This death benefit pays the greater of the account value at the time of a claim following the owner’s death or the total contributions to the contract (subject to adjustment for withdrawals). The charge for this benefit is usually included in the M&E fee that is deducted daily from the net assets in each variable investment option. We also refer to this death benefit as the Return of Principal death benefit. | ||||
Rider | An optional feature or benefit that a policyholder can purchase at an additional cost. | ||||
Separate Account | Refers to the separate account investment assets of our insurance subsidiaries excluding the assets held in those separate accounts on which we bear the investment risk. | ||||
Surrender charge | A fee paid by a contract owner for the early withdrawal of an amount that exceeds a specific percentage or for cancellation of the contract within a specified amount of time after purchase. |
Surrender rate | Represents annualized surrenders and withdrawals as a percentage of average AV. | ||||
Universal life (“UL”) products | Life insurance products that provide a death benefit in return for payment of specified annual policy charges that are generally related to specific costs, which may change over time. To the extent that the policyholder chooses to pay more than the charges required in any given year to keep the policy in-force, the excess premium will be placed into the AV of the policy and credited with a stated interest rate on a monthly basis. | ||||
Variable annuity | A type of annuity that offers guaranteed periodic payments for a defined period of time or for life and gives purchasers the ability to invest in various markets though the underlying investment options, which may result in potentially higher, but variable, returns. | ||||
Variable Universal Life (“VUL”) | Universal life products where the excess amount paid over policy charges can be directed by the policyholder into a variety of Separate Account investment options. In the Separate Account investment options, the policyholder bears the entire risk and returns of the investment results. | ||||
Whole Life (“WL”) | A life insurance policy that is guaranteed to remain in-force for the policyholder’s lifetime, provided the required premiums are paid. |
Date: | |||||||||||||
By: | /s/ | ||||||||||||
Name: | |||||||||||||
Title: | |||||||||||||
(Principal Financial Officer) | |||||||||||||
Date: | /s/ | ||||||||||||
Name: | |||||||||||||
Title: | |||||||||||||
Chief Accounting Officer (Principal Accounting Officer) |