Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PRU | ||
Entity Registrant Name | PRUDENTIAL FINANCIAL INC | ||
Entity Central Index Key | 1,137,774 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 430 | 439 | |
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 31,300 | ||
Entity Current Reporting Status | Yes |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Fixed maturities, available for sale, at fair value (amortized cost: 2016- $1,105; 2015- $0) | [1] | $ 321,419 | $ 290,323 |
Fixed maturities, held-to-maturity, at amortized cost (fair value: 2016 – $2,524; 2015 – $2,624) | [1] | 2,144 | 2,308 |
Trading account assets supporting insurance liabilities, at fair value | [1] | 21,840 | 20,522 |
Other trading account assets, at fair value | [1] | 5,764 | 14,458 |
Equity securities, available-for-sale, at fair value (cost: 2016 – $7,149; 2015 – $6,847) | 9,748 | 9,274 | |
Commercial mortgage and other loans (includes $519 and $274 measured at fair value under the fair value option as of December 31, 2016 and 2015, respectively) | [1] | 52,779 | 50,559 |
Policy loans | 11,755 | 11,657 | |
Other long-term investments (includes $1,556 and $1,322 measured at fair value under the fair value option at December 31, 2016 and 2015, respectively) | [1] | 11,283 | 9,986 |
Short-term investments | 7,508 | 8,105 | |
Total investments | 444,240 | 417,192 | |
Cash and cash equivalents | [1] | 14,127 | 17,612 |
Accrued investment income | [1] | 3,204 | 3,110 |
Deferred policy acquisition costs | 17,661 | 16,718 | |
Value of business acquired | 2,314 | 2,828 | |
Other assets | [1],[2] | 14,780 | 14,225 |
Separate account assets | 287,636 | 285,570 | |
TOTAL ASSETS | 783,962 | 757,255 | |
LIABILITIES | |||
Future policy benefits | 240,908 | 224,384 | |
Policyholders’ account balances | 145,205 | 136,784 | |
Policyholders’ dividends | 5,711 | 5,578 | |
Securities sold under agreements to repurchase | 7,606 | 7,882 | |
Cash collateral for loaned securities | 4,333 | 3,496 | |
Income taxes | 10,412 | 8,714 | |
Short-term debt | 1,133 | 1,216 | |
Long-term debt | [2] | 18,041 | 19,594 |
Other liabilities | [1] | 14,739 | 13,517 |
Notes issued by consolidated variable interest entities (includes $1,839 and $8,597 measured at fair value under the fair value option as of December 31, 2016 and 2015, respectively) | [1] | 2,150 | 8,597 |
Separate account liabilities | 287,636 | 285,570 | |
Total liabilities | 737,874 | 715,332 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
EQUITY | |||
Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued) | 0 | 0 | |
Common Stock ($.01 par value; 1,500,000,000 shares authorized; 660,111,339 shares issued as of both December 31, 2016 and 2015) | 6 | 6 | |
Additional paid-in capital | 24,606 | 24,482 | |
Common Stock held in treasury, at cost (230,537,166 and 213,009,970 shares as of December 31, 2016 and 2015, respectively) | (15,316) | (13,814) | |
Accumulated other comprehensive income (loss) | 14,621 | 12,285 | |
Retained earnings | 21,946 | 18,931 | |
Total Prudential Financial, Inc. equity | 45,863 | 41,890 | |
Noncontrolling interests | 225 | 33 | |
Total equity | 46,088 | 41,923 | |
TOTAL LIABILITIES AND EQUITY | $ 783,962 | $ 757,255 | |
[1] | See Note 5 for details of balances associated with variable interest entities. | ||
[2] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed maturities, available-for-sale, amortized cost | $ 292,581 | $ 265,416 | |
Fixed maturities, held to maturity, fair value | 2,524 | 2,624 | |
Equity securities, available-for-sale, cost | 7,149 | 6,847 | |
Commercial mortgage and other loans | [1] | 52,779 | 50,559 |
Other long-term investments | [1] | 11,283 | 9,986 |
Total liabilities of consolidated VIEs | [1] | $ 2,150 | $ 8,597 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, shares issued | 0 | 0 | |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 | |
Common stock, shares issued | 660,111,339 | 660,111,339 | |
Common Stock held in treasury, shares | 230,537,166 | 213,009,970 | |
Fair value option | |||
Commercial mortgage and other loans | $ 519 | $ 274 | |
Other long-term investments | 1,556 | 1,322 | |
Total liabilities of consolidated VIEs | $ 1,839 | $ 8,597 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
REVENUES | ||||
Premiums | $ 30,964 | $ 28,521 | $ 29,293 | |
Policy charges and fee income | 5,906 | 5,972 | 6,179 | |
Net investment income | 15,520 | 14,829 | 15,256 | |
Asset management and service fees | 3,752 | 3,772 | 3,719 | |
Other income (loss) | 443 | 0 | (1,978) | |
Realized investment gains (losses), net: | ||||
Other-than-temporary impairments on fixed maturity securities | (269) | (180) | (127) | |
Other-than-temporary impairments on fixed maturity securities transferred to Other comprehensive income | 47 | 39 | 71 | |
Other realized investment gains (losses), net | 2,416 | 4,166 | 1,692 | |
Total realized investment gains (losses), net | 2,194 | 4,025 | 1,636 | |
Total revenues | 58,779 | 57,119 | 54,105 | |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 33,632 | 30,627 | 31,587 | |
Interest credited to policyholders’ account balances | 3,761 | 3,479 | 4,263 | |
Dividends to policyholders | 2,025 | 2,212 | 2,716 | |
Amortization of deferred policy acquisition costs | 1,877 | 2,120 | 1,973 | |
General and administrative expenses | 11,779 | 10,912 | 11,807 | |
Total benefits and expenses | 53,074 | 49,350 | 52,346 | |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES | 5,705 | 7,769 | 1,759 | |
Total income tax expense (benefit) | 1,335 | 2,072 | 349 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 4,370 | 5,697 | 1,410 | |
Equity in earnings of operating joint ventures, net of taxes | 49 | 15 | 16 | |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 4,419 | 5,712 | 1,426 | |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 12 | |
NET INCOME (LOSS) | 4,419 | 5,712 | 1,438 | |
Less: Income (loss) attributable to noncontrolling interests | 51 | 70 | 57 | |
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC | $ 4,368 | $ 5,642 | $ 1,381 | |
Basic earnings per share-Common Stock: | ||||
Income (loss) from continuing operations attributable to Prudential Financial, Inc. (in dollars per share) | [1] | $ 9.85 | $ 12.37 | $ 3.23 |
Income (loss) from discontinued operations, net of taxes (in dollars per share) | [1] | 0 | 0 | 0.02 |
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | [1] | 9.85 | 12.37 | 3.25 |
Diluted earnings per share-Common Stock: | ||||
Income (loss) from continuing operations attributable to Prudential Financial, Inc. (in dollars per share) | [1] | 9.71 | 12.17 | 3.20 |
Income (loss) from discontinued operations, net of taxes (in dollars per share) | [1] | 0 | 0 | 0.03 |
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | [1] | 9.71 | 12.17 | 3.23 |
Dividends declared per share of Common Stock (in dollars per share) | [1] | $ 2.80 | $ 2.44 | $ 2.17 |
[1] | For 2016 and 2015, represents consolidated earnings per share of Common Stock. For 2014, represents earnings of the Company’s former Financial Services Businesses per share of Common Stock. See Note 16 for additional information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ 4,419 | $ 5,712 | $ 1,438 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments for the period | 256 | (287) | (1,081) |
Net unrealized investment gains (losses) | 3,683 | (5,486) | 13,730 |
Defined benefit pension and postretirement unrecognized periodic benefit (cost) | (254) | (264) | (1,043) |
Total | 3,685 | (6,037) | 11,606 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 1,305 | (2,213) | 4,249 |
Other comprehensive income (loss), net of taxes | 2,380 | (3,824) | 7,357 |
Comprehensive income (loss) | 6,799 | 1,888 | 8,795 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 95 | 11 | 45 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 6,704 | $ 1,877 | $ 8,750 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Held In TreasuryCommon Stock | Held In TreasuryClass B Stock | Accumulated Other Comprehensive Income (Loss) | Total Prudential Financial, Inc. Equity | Noncontrolling Interests |
Balance at Dec. 31, 2013 | $ 35,881 | $ 6 | $ 24,475 | $ 14,531 | $ (12,415) | $ 0 | $ 8,681 | $ 35,278 | $ 603 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common Stock acquired | (1,651) | (1,000) | (651) | (1,651) | |||||
Contributions from noncontrolling interests | 103 | (4) | (4) | 107 | |||||
Distributions to noncontrolling interests | (175) | (175) | |||||||
Consolidations/(deconsolidations) of noncontrolling interests | (1) | (1) | |||||||
Stock-based compensation programs | 421 | 94 | 327 | 421 | |||||
Dividends declared on Common Stock | (1,005) | (1,005) | (1,005) | ||||||
Dividends declared on Class B Stock | (19) | (19) | (19) | ||||||
Comprehensive income: | |||||||||
Net income (loss) | 1,438 | 1,381 | 1,381 | 57 | |||||
Other comprehensive income (loss), net of tax | 7,357 | 7,369 | 7,369 | (12) | |||||
Comprehensive income (loss) | 8,795 | 8,750 | 45 | ||||||
Balance at Dec. 31, 2014 | 42,349 | 6 | 24,565 | 14,888 | (13,088) | (651) | 16,050 | 41,770 | 579 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common Stock acquired | (1,000) | (1,000) | (1,000) | ||||||
Class B Stock repurchase adjustment/canceled | 0 | (167) | (484) | 651 | 0 | ||||
Contributions from noncontrolling interests | 28 | 28 | |||||||
Distributions to noncontrolling interests | (437) | (437) | |||||||
Consolidations/(deconsolidations) of noncontrolling interests | (148) | (148) | |||||||
Stock-based compensation programs | 358 | 84 | 274 | 358 | |||||
Dividends declared on Common Stock | (1,115) | (1,115) | (1,115) | ||||||
Comprehensive income: | |||||||||
Net income (loss) | 5,712 | 5,642 | 5,642 | 70 | |||||
Other comprehensive income (loss), net of tax | (3,824) | (3,765) | (3,765) | (59) | |||||
Comprehensive income (loss) | 1,888 | 1,877 | 11 | ||||||
Balance at Dec. 31, 2015 | 41,923 | 6 | 24,482 | 18,931 | (13,814) | 0 | 12,285 | 41,890 | 33 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of adoption of accounting changes | (19) | 11 | 11 | (30) | |||||
Common Stock acquired | (2,000) | (2,000) | (2,000) | ||||||
Class B Stock repurchase adjustment/canceled | (119) | (119) | (119) | ||||||
Contributions from noncontrolling interests | 7 | 7 | |||||||
Distributions to noncontrolling interests | (351) | (351) | |||||||
Consolidations/(deconsolidations) of noncontrolling interests | 471 | 471 | |||||||
Stock-based compensation programs | 622 | 124 | 498 | 622 | |||||
Dividends declared on Common Stock | (1,245) | (1,245) | (1,245) | ||||||
Comprehensive income: | |||||||||
Net income (loss) | 4,419 | 4,368 | 4,368 | 51 | |||||
Other comprehensive income (loss), net of tax | 2,380 | 2,336 | 2,336 | 44 | |||||
Comprehensive income (loss) | 6,799 | 6,704 | 95 | ||||||
Balance at Dec. 31, 2016 | $ 46,088 | $ 6 | $ 24,606 | $ 21,946 | $ (15,316) | $ 0 | $ 14,621 | $ 45,863 | $ 225 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income (loss) | $ 4,419 | $ 5,712 | $ 1,438 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Realized investment (gains) losses, net | (2,194) | (4,025) | (1,636) | |||
Policy charges and fee income | (1,907) | (1,883) | (2,156) | |||
Interest credited to policyholders’ account balances | 3,761 | 3,479 | 4,263 | |||
Depreciation and amortization | 318 | 113 | 631 | |||
(Gains) losses on trading account assets supporting insurance liabilities, net | 17 | 524 | (339) | |||
Change in: | ||||||
Deferred policy acquisition costs | (968) | (533) | (721) | |||
Future policy benefits and other insurance liabilities | 10,584 | 8,311 | 11,276 | |||
Other trading account assets | (60) | 256 | 44 | |||
Income taxes(1) | [1] | 618 | 1,217 | 298 | ||
Derivatives, net | 1,067 | 1,305 | 4,989 | |||
Other, net(1) | [1] | (877) | (581) | 1,309 | ||
Cash flows from (used in) operating activities | 14,778 | 13,895 | 19,396 | |||
Proceeds from the sale/maturity/prepayment of: | ||||||
Fixed maturities, available-for-sale | 49,713 | 47,080 | 49,529 | |||
Fixed maturities, held-to-maturity | 271 | 235 | 415 | |||
Trading account assets supporting insurance liabilities and other trading account assets | 34,139 | 14,313 | 13,548 | |||
Equity securities, available-for-sale | 3,502 | 4,577 | 5,001 | |||
Commercial mortgage and other loans | 6,342 | 5,464 | 4,076 | |||
Policy loans | 2,277 | 2,199 | 2,084 | |||
Other long-term investments | 1,145 | 1,276 | 574 | |||
Short-term investments | 43,700 | 77,021 | 73,823 | |||
Payments for the purchase/origination of: | ||||||
Fixed maturities, available-for-sale | (66,857) | (47,606) | (57,467) | |||
Fixed maturities, held-to-maturity | 0 | 0 | (21) | |||
Trading account assets supporting insurance liabilities and other trading account assets | (36,532) | (18,608) | (16,522) | |||
Equity securities, available-for-sale | (3,083) | (4,055) | (4,476) | |||
Commercial mortgage and other loans | (8,548) | (9,392) | (9,346) | |||
Policy loans | (1,882) | (1,782) | (1,855) | |||
Other long-term investments | (1,923) | (2,005) | (1,805) | |||
Short-term investments | (43,370) | (76,622) | (74,295) | |||
Acquisitions, net of cash acquired | (532) | 0 | (23) | |||
Derivatives, net | 314 | 53 | (555) | |||
Other, net | (227) | 106 | 227 | |||
Cash flows from (used in) investing activities | (21,551) | (7,746) | (17,088) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Policyholders’ account deposits | 29,642 | 23,206 | 23,977 | |||
Policyholders’ account withdrawals | (24,143) | (21,963) | (22,003) | |||
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 561 | (2,270) | 710 | |||
Cash dividends paid on Common Stock | (1,300) | (1,117) | (1,008) | |||
Net change in financing arrangements (maturities 90 days or less) | 292 | 68 | (27) | |||
Common Stock acquired | (2,000) | (1,013) | (1,000) | |||
Common Stock reissued for exercise of stock options | 426 | 209 | 269 | |||
Proceeds from the issuance of debt (maturities longer than 90 days) | 2,742 | 5,166 | 7,955 | |||
Repayments of debt (maturities longer than 90 days) | (2,753) | (4,957) | (7,384) | |||
Excess tax benefits from share-based payment arrangements | 21 | 19 | 26 | |||
Other, net | (131) | (221) | 133 | |||
Cash flows from (used in) financing activities | 3,238 | (3,524) | 1,629 | |||
Effect of foreign exchange rate changes on cash balances | 50 | 69 | (458) | |||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3,485) | 2,694 | 3,479 | |||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 17,612 | [2] | 14,918 | 11,439 | ||
CASH AND CASH EQUIVALENTS, END OF YEAR | 14,127 | [2] | 17,612 | [2] | 14,918 | |
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||
Income taxes paid, net of refunds | 770 | 1,083 | 109 | |||
Interest paid | 1,257 | 1,324 | 1,883 | |||
NON-CASH TRANSACTIONS DURING THE YEAR | ||||||
Treasury Stock shares issued for stock-based compensation programs | 115 | 115 | 100 | |||
Pension Risk Transfer | ||||||
NON-CASH TRANSACTIONS DURING THE YEAR | ||||||
Assets received, excluding cash and cash equivalents | 3,228 | 2,091 | 1,435 | |||
Liabilities assumed | 5,003 | 3,739 | 4,653 | |||
Net cash received | 1,775 | 1,648 | 3,218 | |||
Gibraltar BSN Life Berhad | ||||||
NON-CASH TRANSACTIONS DURING THE YEAR | ||||||
Liabilities assumed | 0 | 0 | 586 | |||
Assets acquired, excluding cash and cash equivalents acquired | 0 | 0 | 656 | |||
Noncontrolling interest assumed | 0 | 0 | 47 | |||
Net cash paid on acquisition | 0 | 0 | 23 | |||
Common Class B Stock | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Cash dividends paid on Common Stock | 0 | 0 | (19) | |||
Common Stock acquired | $ (119) | $ (651) | $ 0 | |||
[1] | Prior period amounts have been reclassified to conform to current period presentation. | |||||
[2] | See Note 5 for details of balances associated with variable interest entities. |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Financial, Inc. (“Prudential Financial”) and its subsidiaries (collectively, “Prudential” or the “Company” or “PFI”) provide a wide range of insurance, investment management, and other financial products and services to both individual and institutional customers throughout the United States and in many other countries. Principal products and services provided include life insurance, annuities, retirement-related services, mutual funds and investment management. From December 18, 2001, the date of demutualization, through December 31, 2014, the Company organized its principal operations into the Financial Services Businesses and the Closed Block Business, and had two classes of common stock outstanding. The Common Stock, which is publicly traded (NYSE:PRU), reflected the performance of the Financial Services Businesses, while the Class B Stock, which was issued through a private placement and did not trade on any exchange, reflected the performance of the Closed Block Business. On January 2, 2015, Prudential Financial repurchased and canceled all of the shares of the Class B Stock (the “Class B Repurchase”). As a result, the Company no longer organizes its principal operations into the Financial Services Businesses and the Closed Block Business. The Company’s principal operations are comprised of four divisions: the U.S. Retirement Solutions and Investment Management division, the U.S. Individual Life and Group Insurance division, the International Insurance division and the Closed Block division. The Closed Block division is accounted for as a divested business that is reported separately from the divested businesses that are included in the Company’s Corporate and Other operations. The Company’s Corporate and Other operations include corporate items and initiatives that are not allocated to business segments and businesses that have been or will be divested, excluding the Closed Block division. Basis of Presentation As a result of the Class B Repurchase and resulting elimination of the separation of the Financial Services Businesses and the Closed Block Business, these Consolidated Financial Statements refer to the divisions and segments of the Company that formerly comprised the Financial Services Businesses as “PFI excluding Closed Block division” and refer to the operations that were formerly included in the Closed Block Business as the “Closed Block division,” except as otherwise noted. Closed Block Business results were associated with the Company’s Class B Stock for periods prior to January 1, 2015. The Company’s Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and minority-owned entities such as limited partnerships in which the Company is the general partner, and variable interest entities in which the Company is considered the primary beneficiary. See Note 5 for more information on the Company’s consolidated variable interest entities. The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Intercompany balances and transactions have been eliminated. The Company’s Gibraltar Life Insurance Company, Ltd. (“Gibraltar Life”) consolidated operations use a November 30 fiscal year end for purposes of inclusion in the Company’s Consolidated Financial Statements. The Company’s consolidated balance sheet data as of December 31, 2016 and 2015 , include the assets and liabilities of Gibraltar Life as of November 30 for each respective year. The Company’s consolidated income statement data for the years ended December 31, 2016 , 2015 and 2014 , include Gibraltar Life’s results of operations for the twelve months ended November 30 for each respective year. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs (“DAC”) and related amortization; value of business acquired (“VOBA”) and its amortization; amortization of deferred sales inducements (“DSI”); measurement of goodwill and any related impairment; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; pension and other postretirement benefits; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal matters. Out of Period Adjustments During 2016, the Company recorded out of period adjustments resulting in an aggregate net decrease of $134 million to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” for the year ended December 31, 2016. Such adjustments primarily consisted of a charge of $141 million to increase reserves, net of a related increase in DAC, for certain universal life products within the Individual Life business. Management has evaluated the impact of all out of period adjustments, both individually and in the aggregate, and concluded that they are not material to the current annual financial statements or to any previously reported quarterly or annual financial statements. As previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2014 , during 2014 , the Company recorded out of period adjustments resulting in an aggregate net decrease of $193 million to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” for the year ended December 31, 2014 . Such adjustments were primarily comprised of: 1) a charge of $58 million from an increase in reserves for group long-term disability products; 2) a charge of $43 million from an increase in the deferred profit liability for certain limited pay business within the Gibraltar Life business; and 3) a charge of $35 million from an increase in reserves, net of related amortization of DAC, for certain variable annuities products with optional living benefit guarantees. Subsequent to 2014, the Company identified and recorded additional out of period adjustments of $41 million related to 2014, primarily reflecting a benefit of $62 million from the release of reserves related to certain variable annuities products with optional living benefit guarantees, net of a related decrease in DAC, offset by the increase in reserves of $33 million , net of a related increase in DAC, for certain universal life products within the Individual Life business. Management evaluated the adjustments and concluded that they were not material to any previously reported quarterly or annual financial statements. For additional information on the impact of these adjustments to the Company’s operating segments, see Note 22. Reclassifications Certain amounts in prior years have been reclassified to conform to the current year presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Share-Based Payments The Company applies the fair value-based measurement method in accounting for share-based payment transactions with employees except for equity instruments held by employee share ownership plans. The Company accounts for excess tax benefits in additional paid-in capital as a single “pool” available to all share-based compensation awards. The Company does not recognize excess tax benefits in additional paid-in capital until the benefits result in a reduction in taxes payable. The Company has elected the “tax law ordering methodology” and has adopted a convention that considers excess tax benefits to be the last portion of a net operating loss carryforward to be utilized. The Company accounts for non-employee stock options using the fair value method in accordance with authoritative guidance and related interpretations on accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services. Earnings Per Share As discussed in Note 1, from demutualization through December 31, 2014, the Company had two separate classes of common stock. Basic earnings per share for those periods was computed by dividing available income attributable to each of the two groups of common shareholders by the respective weighted average number of common shares outstanding for the period. Diluted earnings per share included the effect of all dilutive potential common shares that were outstanding during the period. As a result of the Class B Repurchase, earnings per share of Common Stock for 2016 and 2015 reflects the consolidated earnings of Prudential Financial. Basic earnings per share is computed by dividing available income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share includes the effect of all dilutive potential common shares that were outstanding during the period. See Note 16 for additional information. As discussed under “Share-Based Payments” above, the Company accounts for excess tax benefits in additional paid-in capital as a single “pool” available to all share-based compensation awards. The Company reflects in assumed proceeds, based on application of the treasury stock method, the excess tax benefits that would be recognized in additional paid-in capital upon exercise or release of the award. Investments The Company’s principal investments are fixed maturities; equity securities; commercial mortgage and other loans; policy loans; other long-term investments, including joint ventures (other than operating joint ventures), limited partnerships, and real estate; and short-term investments. The accounting policies related to each are as follows: Fixed maturities are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 20 for additional information regarding the determination of fair value. Fixed maturities that the Company has both the positive intent and ability to hold to maturity are carried at amortized cost and classified as “held-to-maturity.” The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income.” For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income. For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to “Net investment income” in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA, or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed maturities classified as “available-for-sale,” net of tax, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). “Trading account assets supporting insurance liabilities, at fair value” includes invested assets that support certain products included in the Retirement and International Insurance segments which are experience-rated, meaning that the investment results associated with these products are expected to ultimately accrue to contractholders. Realized and unrealized gains and losses for these investments are reported in “Other income.” Interest and dividend income from these investments is reported in “Net investment income.” “Other trading account assets, at fair value” consists primarily of fixed maturities, equity securities, including certain perpetual preferred stock, and certain derivatives. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments are reported in “Net investment income.” See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. “Equity securities available-for-sale, at fair value” is comprised of common stock, mutual fund shares and non-redeemable preferred stock, and are carried at fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, future policy benefits, policyholders’ account balances and policyholders’ dividends that would result from the realization of unrealized gains and losses, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other-than-temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Dividends from these investments are generally recognized in “Net investment income” on the ex-dividend date. “Commercial mortgage and other loans” consists of commercial mortgage loans, agricultural property loans, loans backed by residential properties, as well as certain other collateralized and uncollateralized loans. Loans backed by residential properties primarily include recourse loans held by the Company’s international insurance businesses. Uncollateralized loans primarily represent reverse dual currency loans and corporate loans held by the Company’s international insurance businesses. Commercial mortgage and other loans originated and held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company carries certain commercial mortgage loans originated within the Company’s commercial mortgage operations at fair value where the fair value option has been elected. Loans held for sale where the Company has not elected the fair value option are carried at the lower of cost or fair value. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income.” Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans as well as loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 4 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, and estimated market value growth rate and volatility for the property type and region. See Note 4 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. Loans backed by residential properties and uncollateralized loans are also reviewed periodically. Each loan is assigned an internal or external credit rating. Internal credit ratings take into consideration various factors including financial ratios and qualitative assessments based on non-financial information. In cases where there are personal or third-party guarantors, the credit quality of the guarantor is also reviewed. These factors are used in developing the allowance for losses. Based on the diversity of the loans in these categories and their immateriality, the Company has not disclosed the credit quality indicators related to these loans in Note 4. For those loans not reported at fair value, the allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans, the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios consider the current credit composition of the portfolio based on an internal quality rating, as described above. The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses and changes in value for loans accounted for under the fair value option. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write-down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a troubled debt restructuring. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a troubled debt restructuring. Based on the Company’s credit review process described above, these loans generally would have been deemed impaired prior to the troubled debt restructuring, and specific allowances for losses would have been established prior to the determination that a troubled debt restructuring has occurred. In a troubled debt restructuring where the Company receives assets in full satisfaction of the debt, any specific valuation allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. Additionally, the loan continues to be subject to the credit review process noted above. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 4 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. “Policy loans” are carried at unpaid principal balances. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. “Other long-term investments” consists of the Company’s non-coupon investments in joint ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments. Joint venture and partnership interests are accounted for using the equity method of accounting, the cost method when the Company’s partnership interest is so minor (generally less than 3% ) that it exercises virtually no influence over operating and financial policies, or the fair value option where elected. The Company’s income from investments in joint ventures and partnerships accounted for using the equity method or the cost method, other than the Company’s investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method or the cost method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. For the investments for which the Company has elected the fair value option, the associated realized and unrealized gains and losses are reported in “Other income.” The Company consolidates joint ventures and limited partnerships in certain other instances where it is deemed to exercise control, or is considered the primary beneficiary of a variable interest entity. See Note 5 for additional information about variable interest entities. The Company’s wholly-owned investment real estate consists of real estate which the Company has the intent to hold for the production of income as well as real estate held for sale. Real estate which the Company has the intent to hold for the production of income is carried at depreciated cost less any writedowns to fair value for impairment losses and is reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Real estate held for sale is carried at the lower of depreciated cost or fair value less estimated selling costs and is not further depreciated once classified as such. An impairment loss is recognized when the carrying value of the investment real estate exceeds the estimated undiscounted future cash flows (excluding interest charges) from the investment. At that time, the carrying value of the investment real estate is written down to fair value. Decreases in the carrying value of investment real estate held for the production of income due to OTTI are recorded in “Realized investment gains (losses), net.” Depreciation on real estate held for the production of income is computed using the straight-line method over the estimated useful lives of the properties and is included in “Net investment income.” In the period a real estate investment is deemed held for sale and meets all of the discontinued operation criteria, the Company reports all related net investment income and any resulting investment gains and losses as discontinued operations for all periods presented. “Short-term investments” primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased, other than those debt instruments meeting this definition that are included in “Trading account assets supporting insurance liabilities, at fair value.” These investments are generally carried at fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government-sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method with the exception of some of the Company’s International Insurance businesses’ portfolios, where the average cost method is used. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, equity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, fair value changes on commercial mortgage loans carried at fair value, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly to identify OTTI in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. With regard to available-for-sale equity securities, the Company also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. When it is determined that a decline in value of an equity security is other-than-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An OTTI is recognized in earnings for a debt security in an unrealized loss position when either (1) the Company has the intent to sell the debt security or (2) it is more likely than not the Company will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an OTTI is recognized. In addition to the above mentioned circumstances, the Company also recognizes an OTTI in earnings when a non-functional currency denominated security in an unrealized loss position due to currency exchange rates approaches maturity. When an OTTI of a debt security has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria or the unrealized losses due to changes in foreign currency exchange rates are not expected to be recovered before maturity, the OTTI recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For OTTI of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss).” Unrealized gains or losses on securities for which an OTTI has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an OTTI recognized in other comprehensive income (loss) and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flow on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, VOBA, DSI, certain future policy benefits, policyholders’ account balances, policyholders’ dividends and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, and other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Trading account assets supporting insurance liabilities, at fair value.” DAC Costs that are related directly to the successful acquisition of new and renewal insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of DAC,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. For traditional participating life insurance included in the Closed Block, DAC is amortized over the expected life of the contracts in proportion to gross margins based on historical and anticipated future experience, which is evaluated regularly. The effect of changes in estimated gross margins on unamortized DAC is reflected in the period such estimated gross margins are revised. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of the Company’s variable annuity contracts and related hedging activities. The effect of changes to total gross profits on unamortized DAC is reflected in the period such total gross profits are revised. DAC related to non-participating traditional individual life insurance and longevity reinsurance contracts is amortized in proportion to gross premiums. For group annuity contracts (other than single premium group annuities), acquisition costs are generally deferred and amortized over the expected life of the contracts in proportion to gross profits. For group corporate-, bank- and trust-owned life insurance contracts, acquisition costs are generally deferred and amortized in proportion to lives insured. For single premium immediate annuities with life contingencies, single premium group annuities, including non-participating group annuity contracts, and single premium structured settlements with life contingencies, all acquisition costs are charged to expense immediately because generally all premiums are received at the inception of the contract. For funding agreement notes contracts, single premium structured settlement contracts without life contingencies, and single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. For other group life and disability insurance contracts and guaranteed investment contracts, acquisition costs are expensed as incurred. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditio |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Acquisition of Deutsche Bank’s India Asset Management Business In August 2015, the Company and its asset management joint venture partner in India agreed to acquire Deutsche Bank’s India asset management business through the joint venture. In March 2016, the Company and its asset management joint venture partner in India completed the acquisition. This acquisition, which will expand the Company’s investment management expertise, distribution platform and product portfolio in India, did not have a material impact on the Company’s financial results. Acquisition of Administradora de Fondos de Pensiones Habitat S.A. In March 2016, the Company completed the purchase of an indirect 40% ownership interest in Administradora de Fondos de Pensiones Habitat S.A. (“AFP Habitat”), a leading provider of retirement services in Chile, from Inversiones La Construcción S.A. (“ILC”), the investment subsidiary of the Chilean Construction Chamber. The Company paid 899.90 Chilean pesos per share, for a total purchase price of approximately $532 million based on exchange rates at the share acquisition date. The Company and ILC now equally own an indirect controlling stake in AFP Habitat through a joint holding company. The Company’s investment will be accounted for under the equity method and is recorded within “Other assets.” This acquisition will enable the Company to participate in the growing Chilean pension market. Acquisition of UniAsia Life Assurance In January 2014, the Company completed the acquisition of UniAsia Life Assurance Berhad, an established life insurance company in Malaysia, through the formation of a joint venture with Bank Simpanan Nasional (“BSN”), a bank owned by the Malaysian government. The joint venture paid cash consideration of $158 million , 70% of which was provided by Prudential Insurance and 30% of which was provided by BSN. This acquisition is part of the Company’s strategic initiative to further expand its business in Southeast Asian markets. Subsequent to the acquisition, the Company renamed the acquired company Gibraltar BSN Life Berhad. The assets acquired and the liabilities assumed have been included in the Company’s Consolidated Financial Statements as of the acquisition date. After adjustments, total assets acquired were $758 million , including $88 million of cash and cash equivalents and $33 million of goodwill, none of which is deductible for local tax purposes, and the total liabilities assumed were $600 million . Prudential Financial made a Section 338(g) election under the Internal Revenue Code with respect to this acquisition, resulting in the acquired entity being treated for U.S. tax purposes as a newly-incorporated company. Under such election, the U.S. tax basis of the assets acquired and liabilities assumed of UniAsia Life Assurance Berhad was adjusted as of January 2, 2014, to reflect the consequences of the Section 338(g) election. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(4) (in millions) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 21,505 $ 3,280 $ 1,001 $ 23,784 $ 0 Obligations of U.S. states and their political subdivisions 9,060 716 84 9,692 0 Foreign government bonds 79,862 16,748 354 96,256 0 U.S. corporate public securities 76,383 6,460 1,232 81,611 (17 ) U.S. corporate private securities(1) 29,974 2,122 308 31,788 (22 ) Foreign corporate public securities 25,758 2,784 305 28,237 (6 ) Foreign corporate private securities 21,383 646 1,149 20,880 0 Asset-backed securities(2) 11,759 229 53 11,935 (288 ) Commercial mortgage-backed securities 12,589 240 125 12,704 (1 ) Residential mortgage-backed securities(3) 4,308 238 14 4,532 (3 ) Total fixed maturities, available-for-sale(1) $ 292,581 $ 33,463 $ 4,625 $ 321,419 $ (337 ) Equity securities, available-for-sale $ 7,149 $ 2,641 $ 42 $ 9,748 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity Foreign government bonds $ 839 $ 262 $ 0 $ 1,101 Foreign corporate public securities 651 71 0 722 Foreign corporate private securities(5) 81 4 0 85 Commercial mortgage-backed securities 0 0 0 0 Residential mortgage-backed securities(3) 573 43 0 616 Total fixed maturities, held-to-maturity(5) $ 2,144 $ 380 $ 0 $ 2,524 __________ (1) Excludes notes with amortized cost of $1,456 million (fair value, $1,456 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (4) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $649 million of net unrealized gains on impaired available-for-sale securities and $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date. (5) Excludes notes with amortized cost of $4,403 million (fair value, $4,403 million ), which have been offset with the associated payables under a netting agreement. December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(4) (in millions) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 14,992 $ 3,544 $ 19 $ 18,517 $ 0 Obligations of U.S. states and their political subdivisions 8,089 747 41 8,795 0 Foreign government bonds 71,849 12,011 147 83,713 1 U.S. corporate public securities 70,979 6,344 1,955 75,368 (3 ) U.S. corporate private securities(1) 28,525 2,278 359 30,444 0 Foreign corporate public securities 26,354 2,821 621 28,554 0 Foreign corporate private securities 19,393 739 994 19,138 0 Asset-backed securities(2) 10,121 226 121 10,226 (452 ) Commercial mortgage-backed securities 10,337 195 70 10,462 (1 ) Residential mortgage-backed securities(3) 4,777 335 6 5,106 (4 ) Total fixed maturities, available-for-sale(1) $ 265,416 $ 29,240 $ 4,333 $ 290,323 $ (459 ) Equity securities, available-for-sale $ 6,847 $ 2,570 $ 143 $ 9,274 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity Foreign government bonds $ 816 $ 196 $ 0 $ 1,012 Foreign corporate public securities 625 62 0 687 Foreign corporate private securities(5) 78 4 0 82 Commercial mortgage-backed securities 33 1 0 34 Residential mortgage-backed securities(3) 756 53 0 809 Total fixed maturities, held-to-maturity(5) $ 2,308 $ 316 $ 0 $ 2,624 __________ (1) Excludes notes with amortized cost of $1,050 million (fair value, $1,039 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (4) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $693 million of net unrealized gains on impaired available-for-sale securities and less than $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date. (5) Excludes notes with amortized cost of $3,850 million (fair value, $4,081 million ), which have been offset with the associated payables under a netting agreement. The following tables show the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, at December 31 for the years indicated: 2016 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) Fixed maturities(1) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 9,345 $ 1,001 $ 0 $ 0 $ 9,345 $ 1,001 Obligations of U.S. states and their political subdivisions 2,677 79 19 5 2,696 84 Foreign government bonds 6,076 325 310 29 6,386 354 U.S. corporate public securities 22,803 905 2,943 327 25,746 1,232 U.S. corporate private securities 7,797 228 1,296 80 9,093 308 Foreign corporate public securities 5,196 162 1,047 143 6,243 305 Foreign corporate private securities 6,557 350 4,916 799 11,473 1,149 Asset-backed securities 2,357 20 1,581 33 3,938 53 Commercial mortgage-backed securities 4,879 123 60 2 4,939 125 Residential mortgage-backed securities 926 12 78 2 1,004 14 Total $ 68,613 $ 3,205 $ 12,250 $ 1,420 $ 80,863 $ 4,625 Equity securities, available-for-sale $ 637 $ 41 $ 12 $ 1 $ 649 $ 42 __________ (1) Includes $12 million of fair value and less than $1 million of gross unrealized losses at December 31, 2016 , on securities classified as held-to-maturity, which is not reflected in AOCI. 2015 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) Fixed maturities U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 3,068 $ 19 $ 0 $ 0 $ 3,068 $ 19 Obligations of U.S. states and their political subdivisions 1,391 40 7 1 1,398 41 Foreign government bonds 1,925 82 411 65 2,336 147 U.S. corporate public securities 24,642 1,396 3,455 559 28,097 1,955 U.S. corporate private securities 6,996 266 802 93 7,798 359 Foreign corporate public securities 5,985 288 1,584 333 7,569 621 Foreign corporate private securities 6,199 340 3,917 654 10,116 994 Asset-backed securities 4,342 33 3,138 88 7,480 121 Commercial mortgage-backed securities 3,888 63 473 7 4,361 70 Residential mortgage-backed securities 558 4 119 2 677 6 Total $ 58,994 $ 2,531 $ 13,906 $ 1,802 $ 72,900 $ 4,333 Equity securities, available-for-sale $ 1,862 $ 142 $ 11 $ 1 $ 1,873 $ 143 The gross unrealized losses on fixed maturity securities at December 31, 2016 and 2015 , were composed of $4,233 million and $3,750 million , respectively, related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $392 million and $583 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. At December 31, 2016 , the $1,420 million of gross unrealized losses of twelve months or more were concentrated in the energy, utility and capital goods sectors of the Company’s corporate securities. At December 31, 2015 , the $1,802 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer non-cyclical and basic industry sectors of the Company’s corporate securities. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at either December 31, 2016 or 2015 . These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses are primarily attributable to general credit spread widening and foreign currency exchange rate movements. At December 31, 2016 , the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. At December 31, 2016 , $9 million of the gross unrealized losses on equity securities represented declines in value of greater than 20%, $8 million of which had been in that position for less than six months. At December 31, 2015 , $19 million of the gross unrealized losses on equity securities represented declines in value of greater than 20%, all of which had been in that position for less than six months. In accordance with its policy described in Note 2, the Company concluded that an adjustment for OTTI for these equity securities was not warranted at either December 31, 2016 or 2015 . The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2016 , are as follows: Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Due in one year or less $ 9,264 $ 9,827 $ 11 $ 11 Due after one year through five years 44,669 48,592 172 181 Due after five years through ten years 61,561 65,832 552 618 Due after ten years(1) 148,431 167,997 836 1,098 Asset-backed securities 11,759 11,935 0 0 Commercial mortgage-backed securities 12,589 12,704 0 0 Residential mortgage-backed securities 4,308 4,532 573 616 Total $ 292,581 $ 321,419 $ 2,144 $ 2,524 __________ (1) Excludes available-for-sale notes with amortized cost of $1,456 million (fair value, $1,456 million ) and held-to-maturity notes with amortized cost of $4,403 million (fair value, $4,403 million ), which have been offset with the associated payables under a netting agreement. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date. The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: 2016 2015 2014 (in millions) Fixed maturities, available-for-sale Proceeds from sales(1) $ 29,878 $ 27,679 $ 28,359 Proceeds from maturities/repayments 19,710 19,559 21,040 Gross investment gains from sales, prepayments and maturities 1,433 2,115 1,664 Gross investment losses from sales and maturities (545 ) (340 ) (414 ) Fixed maturities, held-to-maturity Gross investment gains from prepayments $ 0 $ 0 $ 0 Proceeds from maturities/repayments(2) 272 235 415 Equity securities, available-for-sale Proceeds from sales(3) $ 3,504 $ 4,589 $ 4,993 Gross investment gains from sales 608 746 676 Gross investment losses from sales (158 ) (169 ) (132 ) Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(4) $ (222 ) $ (141 ) $ (56 ) Writedowns for impairments on equity securities (74 ) (126 ) (32 ) __________ (1) Includes $(125) million , $158 million and $(130) million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Includes $1 million , less than $1 million and less than $1 million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (3) Includes $2 million , $12 million and $(8) million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (4) Excludes the portion of OTTI recorded in “Other comprehensive income (loss)” (“OCI”), representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. As discussed in Note 2, a portion of certain OTTI losses on fixed maturity securities is recognized in OCI. For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts: Year Ended December 31, 2016 2015 (in millions) Balance, beginning of period $ 532 $ 781 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (229 ) (243 ) Credit loss impairments previously recognized on securities impaired to fair value during the period(1) (2 ) (20 ) Credit loss impairments recognized in the current period on securities not previously impaired 41 3 Additional credit loss impairments recognized in the current period on securities previously impaired 1 3 Increases due to the passage of time on previously recorded credit losses 24 20 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (8 ) (12 ) Balance, end of period $ 359 $ 532 __________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. Trading Account Assets Supporting Insurance Liabilities The following table sets forth the composition of “Trading account assets supporting insurance liabilities” as of the dates indicated: December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Short-term investments and cash equivalents $ 655 $ 655 $ 765 $ 765 Fixed maturities: Corporate securities 13,903 13,997 12,797 12,851 Commercial mortgage-backed securities 2,032 2,052 1,860 1,862 Residential mortgage-backed securities(1) 1,142 1,150 1,411 1,428 Asset-backed securities(2) 1,333 1,349 1,295 1,299 Foreign government bonds 915 926 680 694 U.S. government authorities and agencies and obligations of U.S. states 330 376 326 369 Total fixed maturities 19,655 19,850 18,369 18,503 Equity securities 1,097 1,335 1,030 1,254 Total trading account assets supporting insurance liabilities $ 21,407 $ 21,840 $ 20,164 $ 20,522 __________ (1) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. The net change in unrealized gains (losses) from trading account assets supporting insurance liabilities still held at period end, recorded within “Other income,” was $75 million , $(642) million and $144 million during the years ended December 31, 2016 , 2015 and 2014 , respectively. Other Trading Account Assets The following table sets forth the composition of the “Other trading account assets” as of the dates indicated: December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Short-term investments and cash equivalents $ 26 $ 26 $ 26 $ 26 Fixed maturities 3,634 3,453 11,132 10,764 Equity securities 985 1,056 1,006 1,098 Other 4 5 12 15 Subtotal $ 4,649 4,540 $ 12,176 11,903 Derivative instruments 1,224 2,555 Total other trading account assets $ 5,764 $ 14,458 The net change in unrealized gains (losses) from other trading account assets, excluding derivative instruments, still held at period end, recorded within “Other income,” was $164 million , $(366) million and $(108) million during the years ended December 31, 2016 , 2015 and 2014 , respectively. Concentrations of Financial Instruments The Company monitors its concentrations of financial instruments and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any one issuer. As of both December 31, 2016 and 2015 , the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government, certain U.S. government agencies and certain securities guaranteed by the U.S. government, as well as the securities disclosed below. December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 60,240 $ 73,051 $ 53,851 $ 61,911 Fixed maturities, held-to-maturity 818 1,075 796 988 Trading account assets supporting insurance liabilities 537 550 492 502 Other trading account assets 16 16 33 33 Total $ 61,611 $ 74,692 $ 55,172 $ 63,434 December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 7,581 $ 9,435 $ 7,191 $ 9,233 Fixed maturities, held-to-maturity 0 0 0 0 Trading account assets supporting insurance liabilities 44 44 44 44 Other trading account assets 0 0 0 0 Total $ 7,625 $ 9,479 $ 7,235 $ 9,277 Commercial Mortgage and Other Loans The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated: December 31, 2016 December 31, 2015 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,424 23.9 % $ 11,226 22.9 % Retail 8,555 16.5 8,917 18.2 Apartments/Multi-Family 13,733 26.4 12,034 24.5 Industrial 8,075 15.5 7,775 15.9 Hospitality 2,274 4.4 2,513 5.1 Other 3,966 7.6 3,722 7.6 Total commercial mortgage loans 49,027 94.3 46,187 94.2 Agricultural property loans 2,958 5.7 2,859 5.8 Total commercial mortgage and agricultural property loans by property type 51,985 100.0 % 49,046 100.0 % Valuation allowance (98 ) (99 ) Total net commercial mortgage and agricultural property loans by property type 51,887 48,947 Other loans: Uncollateralized loans 638 1,012 Residential property loans 252 301 Other collateralized loans 10 312 Total other loans 900 1,625 Valuation allowance (8 ) (13 ) Total net other loans 892 1,612 Total commercial mortgage and other loans(1) $ 52,779 $ 50,559 __________ (1) Includes loans held at fair value. The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States (with the largest concentrations in California ( 27% ), New York ( 9% ) and Texas ( 9% )) and include loans secured by properties in Europe ( 4% ) and Asia ( 1% ) at December 31, 2016 . Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses, beginning of year $ 97 $ 2 $ 3 $ 0 $ 10 $ 112 Addition to (release of) allowance for losses 0 0 (1 ) 0 (5 ) (6 ) Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 1 1 Total ending balance $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses, beginning of year $ 104 $ 1 $ 5 $ 0 $ 9 $ 119 Addition to (release of) allowance for losses (7 ) 1 (2 ) 0 1 (7 ) Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 0 0 Total ending balance $ 97 $ 2 $ 3 $ 0 $ 10 $ 112 The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for Credit Losses: Individually evaluated for impairment $ 6 $ 0 $ 0 $ 0 $ 0 $ 6 Collectively evaluated for impairment 90 2 2 0 6 100 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 Recorded Investment(1): Individually evaluated for impairment $ 116 $ 30 $ 0 $ 0 $ 2 $ 148 Collectively evaluated for impairment 48,911 2,928 252 10 636 52,737 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 49,027 $ 2,958 $ 252 $ 10 $ 638 $ 52,885 __________ (1) Recorded investment reflects the carrying value gross of related allowance. December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for Credit Losses: Individually evaluated for impairment $ 1 $ 0 $ 0 $ 0 $ 0 $ 1 Collectively evaluated for impairment 96 2 3 0 10 111 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 97 $ 2 $ 3 $ 0 $ 10 $ 112 Recorded Investment(1): Individually evaluated for impairment $ 111 $ 8 $ 0 $ 0 $ 2 $ 121 Collectively evaluated for impairment 46,076 2,851 301 312 1,010 50,550 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 46,187 $ 2,859 $ 301 $ 312 $ 1,012 $ 50,671 __________ (1) Recorded investment reflects the carrying value gross of related allowance. The net carrying value of commercial mortgage and other loans held for sale by the Company as of December 31, 2016 and 2015 , was $519 million and $274 million , respectively. For all of these loans, the Company pre-arranges that it will sell the loan to an investor. As of both December 31, 2016 and 2015 , all of the Company’s commercial mortgage and other loans held for sale were collateralized, with collateral primarily consisting of apartment complexes. The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses as of the date indicated: Commercial mortgage loans Debt Service Coverage Ratio—December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 28,131 $ 446 $ 626 $ 29,203 60%-69.99% 12,608 401 115 13,124 70%-79.99% 5,383 694 56 6,133 80% or greater 373 62 132 567 Total commercial mortgage loans $ 46,495 $ 1,603 $ 929 $ 49,027 Agricultural property loans Debt Service Coverage Ratio—December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 2,803 $ 114 $ 17 $ 2,934 60%-69.99% 24 0 0 24 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 2,827 $ 114 $ 17 $ 2,958 Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio—December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 30,934 $ 560 $ 643 $ 32,137 60%-69.99% 12,632 401 115 13,148 70%-79.99% 5,383 694 56 6,133 80% or greater 373 62 132 567 Total commercial mortgage and agricultural property loans $ 49,322 $ 1,717 $ 946 $ 51,985 The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses as of the date indicated: Commercial mortgage loans Debt Service Coverage Ratio—December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 25,978 $ 515 $ 207 $ 26,700 60%-69.99% 12,191 395 234 12,820 70%-79.99% 5,668 500 97 6,265 80% or greater 119 151 132 402 Total commercial mortgage loans $ 43,956 $ 1,561 $ 670 $ 46,187 Agricultural property loans Debt Service Coverage Ratio—December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 2,587 $ 84 $ 3 $ 2,674 60%-69.99% 185 0 0 185 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 2,772 $ 84 $ 3 $ 2,859 Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio—December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 28,565 $ 599 $ 210 $ 29,374 60%-69.99% 12,376 395 234 13,005 70%-79.99% 5,668 500 97 6,265 80% or greater 119 151 132 402 Total commercial mortgage and agricultural property loans $ 46,728 $ 1,645 $ 673 $ 49,046 The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status as of the dates indicated: December 31, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Loans Non- Accrual Status (in millions) Commercial mortgage loans $ 49,006 $ 21 $ 0 $ 0 $ 21 $ 49,027 $ 49 Agricultural property loans 2,956 0 0 2 2 2,958 2 Residential property loans 241 7 1 3 11 252 3 Other collateralized loans 10 0 0 0 0 10 0 Uncollateralized loans 638 0 0 0 0 638 0 Total $ 52,851 $ 28 $ 1 $ 5 $ 34 $ 52,885 $ 54 __________ (1) There were no loans accruing interest. December 31, 2015 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Loans Non- Accrual Status (in millions) Commercial mortgage loans $ 46,187 $ 0 $ 0 $ 0 $ 0 $ 46,187 $ 53 Agricultural property loans 2,856 2 0 1 3 2,859 1 Residential property loans 288 7 0 6 13 301 6 Other collateralized loans 312 0 0 0 0 312 0 Uncollateralized loans 1,012 0 0 0 0 1,012 0 Total $ 50,655 $ 9 $ 0 $ 7 $ 16 $ 50,671 $ 60 __________ (1) There were no loans accruing interest. See Note 2 for further discussion regarding non-accrual status loans. For the years ended December 31, 2016 and 2015 , there were $0 million and $214 million , respectively, of commercial mortgage and other loans acquired, other than those through direct origination. For the years ended December 31, 2016 and 2015 , there were $0 million and $18 million of commercial mortgage and other loans sold, other than those classified as held-for-sale. The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both December 31, 2016 and 2015 , the Company had no significant commitments to borrowers that have been involved in a troubled debt restructuring. As of December 31, 2016 and 2015 , there were $47 million and $0 million of new troubled debt restructurings related to commercial mortgage loans with payment defaults that were modified as a troubled debt restructuring within the twelve months preceding. See Note 2 for additional information relating to the accounting for troubled debt restructurings. As of December 31, 2016 , there were no private debt commitments to borrowers that have been involved in a troubled debt restructuring. Other Long-Term Investments The following table sets forth the composition of “Other long-term investments” at December 31 for the years indicated: 2016 2015 (in millions) Joint ventures and limited partnerships: Private equity $ 4,059 $ 4,393 Hedge funds 2,660 2,054 Real estate-related 1,291 1,085 Total joint ventures and limited partnerships 8,010 7,532 Real estate held through direct ownership 2,195 1,464 Other 1,078 990 Total other long-term investments $ 11,283 $ 9,986 In certain investment structures, the Company’s asset management business invests with other co-investors in an investment fund referred to as a feeder fund. In these structures, the invested capital of several feeder funds is pooled together and used to purchase ownership interests in another fund, referred to as a master fund. The master fund utilizes this invested capital and, in certain cases, other debt financing, to purchase various classes of assets on behalf of its investors. Specialized industry accounting for investment companies calls for the feeder fund to reflect its investment in the master fund as a single net asset equal to its proportionate share of the net assets of the master fund, regardless of its level of interest in the master fund. In cases where the Company consolidates the feeder fund, it retains the feeder fund’s net asset presentation and reports the consolidated feeder fund’s proportionate share of the net assets of the master fund in “Other long-term investments,” with any unaffiliated investors’ non-controlling interest in the feeder fund reported in “Other liabilities” or “Noncontrolling interests.” The consolidated feeder funds’ investments in these master funds, reflected on this net asset basis, totaled $216 million and $81 million as of December 31, 2016 and 2015 , respectively. There was $93 million and $0 million of unaffiliated interest in the consolidated feeder funds as of December 31, 2016 and 2015 , respectively, and the master funds had gross assets of $36,279 million and $17,508 million , respectively, and gross liabilities of $34,880 million and $16,920 million , respectively, which are not included on the Company’s balance sheet. Equity Method Investments The following tables set forth summarized combined financial information for significant joint ventures and limited partnership interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 7. Changes between periods in the tables below reflect changes in the activities within the joint ventures and limited partnerships, as well as changes in the Company’s level of investment in such entities. At December 31, 2016 2015 (in millions) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 59,897 $ 53,799 Total liabilities(2) $ 14,787 $ 13,610 Partners’ capital 45,110 40,189 Total liabilities and partners’ capital $ 59,897 $ 53,799 Total liabilities and partners’ capital included above $ 5,135 $ 4,398 Equity in limited partnership interests not included above 592 142 Carrying value $ 5,727 $ 4,540 __________ (1) Assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets. (2) Liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities. Years ended December 31, 2016 2015 2014 (in millions) STATEMENTS OF OPERATIONS Total revenue(1) $ 5,360 $ 4,356 $ 5,632 Total expenses(2) (1,995 ) (1,803 ) (1,654 ) Net earnings (losses) $ 3,365 $ 2,553 $ 3,978 Equity in net earnings (losses) included above $ 247 $ 216 $ 522 Equity in net earnings (losses) of limited partnership interests not included above 103 32 72 Total equity in net earnings (losses) $ 350 $ 248 $ 594 __________ (1) Revenue consists of income from investments in real estate, investments in securities and other income. (2) Expenses consist primarily of interest expense, management fees, salary expenses and other expenses. Net Investment Income The following table sets forth net investment income by asset class for the years ended December 31: 2016 2015 2014 (in millions) Fixed maturities, available-for-sale(1)(2) $ 10,920 $ 10,347 $ 10,558 Fixed maturities, held-to-maturity(1)(2) 208 202 185 Equity securities, available-for-sale 366 337 354 Trading account assets 986 1,205 1,074 Commercial mortgage and other loans 2,243 2,255 2,103 Policy loans 627 619 632 Short-term investments and cash equivalents 145 56 38 Other long-term investments 731 717 1,050 Gross investment income 16,226 15,738 15,994 Less: investment expenses (706 ) (909 ) (738 ) Net investment income $ 15,520 $ 14,829 $ 15,256 __________ (1) Includes income on credit-link |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES In the normal course of its activities, the Company enters into relationships with various special-purpose entities and other entities that are deemed to be variable interest entities (“VIEs”). A VIE is an entity that either (1) has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control activities of the entity, the obligation to absorb the entity’s expected losses and the right to receive the entity’s expected residual returns) or (2) lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of the VIE. The Company is the primary beneficiary if the Company has (1) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and (2) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant. If the Company determines that it is the VIE’s primary beneficiary, it consolidates the VIE. Consolidated Variable Interest Entities The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services, including certain investment structures in which the Company’s asset management business invests with other co-investors in investment funds referred to as feeder funds. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity of the Company’s asset management businesses. Additionally, the Company may invest in securities issued by these vehicles. CLOs raise capital by issuing debt securities, and use the proceeds to purchase investments, typically interest-bearing financial instruments. The Company has analyzed these relationships and determined that for certain CLOs and other investment structures it is the primary beneficiary and consolidates these entities. This analysis includes a review of (1) the Company’s rights and responsibilities as investment manager and (2) variable interests (if any) held by the Company. The assets of these VIEs are restricted and must be used first to settle liabilities of the VIE. The Company is not required to provide, and has not provided, material financial or other support to any of these VIEs. Effective January 1, 2016, the Company adopted new FASB guidance ( ASU 2015-02, Consolidation (Topic 810): Amendments to Consolidation Analysis) that resulted in the deconsolidation of certain of its previously consolidated CLOs. See Note 2 for additional information. Additionally, the Company is the primary beneficiary of certain VIEs in which the Company has invested, as part of its investment activities, but for which it is not the investment manager. These include structured investments issued by a VIE that manages yen-denominated investments coupled with cross-currency coupon swap agreements thereby creating synthetic dual currency investments. The Company’s involvement in the structuring of these investments combined with its economic interest indicates that the Company is the primary beneficiary. The Company has not provided material financial support or other support that was not contractually required to these VIEs. The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. The liabilities primarily comprise obligations under debt instruments issued by the VIEs that are non-recourse to the Company. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. Consolidated VIEs for Which the Company is the Investment Manager Other Consolidated VIEs December 31, December 31, 2016(1) 2015 2016 2015 (in millions) Fixed maturities, available-for-sale $ 65 $ 0 $ 269 $ 179 Fixed maturities, held-to-maturity 81 0 783 760 Trading account assets supporting insurance liabilities 0 0 9 10 Other trading account assets 2,140 9,536 0 0 Commercial mortgage and other loans 503 0 0 300 Other long-term investments 1,083 0 114 155 Cash and cash equivalents 618 337 1 1 Accrued investment income 10 56 4 3 Other assets 424 324 1 3 Total assets of consolidated VIEs $ 4,924 $ 10,253 $ 1,181 $ 1,411 Notes issued by consolidated VIEs $ 2,150 $ 8,597 $ 0 $ 0 Other liabilities 611 674 7 3 Total liabilities of consolidated VIEs $ 2,761 $ 9,271 $ 7 $ 3 __________ (1) As a result of the adoption of the new accounting guidance ASU 2015-02 effective January 1, 2016, total assets of consolidated VIEs reflects $1,386 million related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. Recourse is limited to the assets of the respective VIE and does not extend to the general credit of Prudential Financial. As of December 31, 2016 , the maturities of these obligations were greater than five years. Unconsolidated Variable Interest Entities The Company has determined that it is not the primary beneficiary of certain VIEs for which it is the investment manager. These VIEs consist primarily of CLOs and investment funds for which the Company has determined that it is not the primary beneficiary as it does not have both (1) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and (2) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant. The Company’s maximum exposure to loss resulting from its relationship with unconsolidated VIEs for which it is the investment manager is limited to its investment in the VIEs, which was $515 million and $218 million at December 31, 2016 and 2015 , respectively. These investments are reflected in “Fixed maturities, available-for-sale,” “Other trading account assets, at fair value” and “Other long-term investments.” There are no liabilities associated with these unconsolidated VIEs on the Company’s Consolidated Statements of Financial Position. In the normal course of its activities, the Company will invest in joint ventures and limited partnerships. These ventures include hedge funds, private equity funds and real estate-related funds and may or may not be VIEs. The Company’s maximum exposure to loss on these investments, both VIEs and non-VIEs, is limited to the amount of its investment. The Company has determined that it is not required to consolidate these entities because either (1) it does not control them or (2) it does not have the obligation to absorb losses of the entities that could be potentially significant to the entities or the right to receive benefits from the entities that could be potentially significant. The Company classifies these investments as “Other long-term investments” and its maximum exposure to loss associated with these entities was $8,010 million and $7,532 million as of December 31, 2016 and 2015 , respectively. In addition, in the normal course of its activities, the Company will invest in structured investments including VIEs for which it is not the investment manager. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities. The Company’s maximum exposure to loss on these structured investments, both VIEs and non-VIEs, is limited to the amount of its investment. See Note 4 for details regarding the carrying amounts and classification of these assets. The Company has not provided material financial or other support that was not contractually required to these structures. The Company has determined that it is not the primary beneficiary of these structures due to the fact that it does not control these entities. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS The balances of and changes in DAC as of and for the years ended December 31, are as follows: 2016 2015 2014 (in millions) Balance, beginning of year $ 16,718 $ 15,971 $ 16,512 Capitalization of commissions, sales and issue expenses 2,845 2,653 2,694 Amortization—Impact of assumption and experience unlocking and true-ups 445 280 629 Amortization—All other (2,322 ) (2,400 ) (2,602 ) Change in unrealized investment gains and losses (199 ) 477 (697 ) Foreign currency translation and other 174 (263 ) (565 ) Balance, end of year $ 17,661 $ 16,718 $ 15,971 |
Investments In Operating Joint
Investments In Operating Joint Ventures | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments In Operating Joint Ventures | INVESTMENTS IN OPERATING JOINT VENTURES The Company has made investments in certain joint ventures that are strategic in nature and made other than for the sole purpose of generating investment income. These investments are accounted for under the equity method of accounting and are included in “Other assets” in the Company’s Consolidated Statements of Financial Position. The earnings from these investments are included on an after-tax basis in “Equity in earnings of operating joint ventures, net of taxes” in the Company’s Consolidated Statements of Operations. The summarized financial information for the Company’s operating joint ventures has been included in the summarized combined financial information for all significant equity method investments shown in Note 4. The following table sets forth information related to the Company’s investments in operating joint ventures as of and for the years ended December 31: 2016(1) 2015 2014 (in millions) Investment in operating joint ventures $ 994 $ 341 $ 325 Dividends received from operating joint ventures $ 60 $ 27 $ 27 After-tax equity earnings of operating joint ventures $ 49 $ 15 $ 16 __________ (1) Results include the impact of the Company’s investment in AFP Habitat in March of 2016. The Company has made investments in operating joint ventures through its Asset Management and International Insurance segments and its Corporate and Other operations. For the years ended December 31, 2016 , 2015 and 2014 , the Company recognized $32 million , $34 million and $33 million , respectively, of asset management fee income from these transactions. |
Value of Business Acquired
Value of Business Acquired | 12 Months Ended |
Dec. 31, 2016 | |
Present Value of Future Insurance Profits [Abstract] | |
Value of Business Acquired | VALUE OF BUSINESS ACQUIRED The balances of and changes in VOBA as of and for the years ended December 31, are as follows: 2016(1) 2015 2014 (in millions) Balance, beginning of year $ 2,828 $ 2,836 $ 3,675 Acquisitions 0 0 7 Amortization—Impact of assumption and experience unlocking and true-ups (246 ) 128 (175 ) Amortization—All other (351 ) (385 ) (420 ) Change in unrealized investment gains and losses (112 ) 214 (89 ) Interest(2) 81 86 95 Foreign currency translation 114 (57 ) (257 ) Other 0 6 0 Balance, end of year $ 2,314 $ 2,828 $ 2,836 __________ (1) The VOBA balances at December 31, 2016 were $198 million , $33 million , $1,290 million , $0 million , $786 million , and $7 million related to the insurance transactions associated with the CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The weighted average remaining expected life of VOBA varies by product. The weighted average remaining expected lives were approximately 12 , 5 , 8 , 7 , 8 , and 16 years for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life., Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. (2) The interest accrual rates vary by product. The interest rates for 2016 were 6.40% , 6.00% , 1.28% to 2.87% , 2.60% , 3.00% to 6.17% and 4.07% to 5.51% for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The interest rates for 2015 were 6.40% , 6.05% , 1.28% to 2.87% , 2.60% , 3.00% to 6.17% and 4.07% to 5.51% for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The interest rates for 2014 were 6.40% , 6.10% , 1.28% to 2.87% , 2.60% , 3.00% to 6.17% and 4.07% to 5.51% for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, the Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The following table provides estimated future amortization, net of interest, for the periods indicated. 2017 2018 2019 2020 2021 (in millions) Estimated future VOBA amortization $ 236 $ 210 $ 187 $ 168 $ 156 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES The changes in the book value of goodwill by area are as follows: Retirement Asset Management International Insurance Total (in millions) Balance at December 31, 2013: Gross Goodwill $ 444 $ 240 $ 155 $ 839 Accumulated Impairment Losses 0 0 0 0 Net Goodwill 444 240 155 839 2014 Activity: Acquisitions 0 0 18 18 Other(1) 0 (5 ) (21 ) (26 ) Balance at December 31, 2014: Gross Goodwill 444 235 152 831 Accumulated Impairment Losses 0 0 0 0 Net Goodwill 444 235 152 831 2015 Activity: Acquisitions 0 0 0 0 Other(1) 0 (4 ) (3 ) (7 ) Balance at December 31, 2015: Gross Goodwill 444 231 149 824 Accumulated Impairment Losses 0 0 0 0 Net Goodwill 444 231 149 824 2016 Activity: Acquisitions 0 0 0 0 Other(1) 0 (1 ) 10 9 Balance at December 31, 2016: Gross Goodwill 444 230 159 833 Accumulated Impairment Losses 0 0 0 0 Net Goodwill $ 444 $ 230 $ 159 $ 833 __________ (1) Other represents foreign currency translation and purchase price adjustments. The Company tests goodwill for impairment annually as of December 31 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, as discussed in further detail in Note 2. The Company performed goodwill impairment testing using the quantitative approach for all reporting units that had goodwill at December 31, 2016 and 2015 , and no impairments were recorded. Other Intangibles Other intangible balances at December 31, are as follows: 2016 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Subject to amortization: Mortgage servicing rights $ 548 $ (341 ) $ 207 $ 500 $ (302 ) $ 198 Customer relationships 243 (179 ) 64 268 (196 ) 72 Other 138 (102 ) 36 72 (42 ) 30 Not subject to amortization 3 N/A 3 3 N/A 3 Total $ 310 $ 303 The fair values of net mortgage servicing rights were $217 million and $203 million at December 31, 2016 and 2015 , respectively. Amortization expense for other intangibles was $116 million , $64 million and $55 million for the years ending December 31, 2016 , 2015 and 2014 , respectively. Amortization expense for other intangibles is expected to be approximately $49 million in 2017 , $42 million in 2018 , $37 million in 2019 , $31 million in 2020 and $27 million in 2021 . The amortization expense amounts listed above for 2016 , 2015 and 2014 do not include impairments recorded for mortgage servicing rights or other intangibles. See the non-recurring fair value measurements section of Note 20 for more information regarding these impairments. |
Policyholders' Liabilities
Policyholders' Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Policyholders' Liabilities | POLICYHOLDERS’ LIABILITIES Future Policy Benefits Future policy benefits at December 31 for the years indicated are as follows: 2016 2015 (in millions) Life insurance $ 161,406 $ 148,100 Individual and group annuities and supplementary contracts 63,486 60,493 Other contract liabilities 13,173 12,872 Subtotal future policy benefits excluding unpaid claims and claim adjustment expenses 238,065 221,465 Unpaid claims and claim adjustment expenses 2,843 2,919 Total future policy benefits $ 240,908 $ 224,384 Life insurance liabilities include reserves for death and endowment policy benefits, terminal dividends and certain health benefits. Individual and group annuities and supplementary contracts liabilities include reserves for life contingent immediate annuities and life contingent group annuities. Other contract liabilities include unearned premiums and certain other reserves for group, annuities and individual life and health products. Future policy benefits for individual participating traditional life insurance are based on the net level premium method, calculated using the guaranteed mortality and nonforfeiture interest rates which range from 2.5% to 7.5% . Participating insurance represented 4% of direct individual life insurance in force for both December 31, 2016 and 2015 , and 14% , 16% and 16% of direct individual life insurance premiums for 2016 , 2015 and 2014 , respectively. Future policy benefits for individual non-participating traditional life insurance policies, group and individual long-term care policies and individual health insurance policies are generally equal to the present value of future benefit payments and related expenses, less the present value of future net premiums. Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. Interest rates used in the determination of the present values range from 0.2% to 9.5% ; less than 1% of the reserves are based on an interest rate in excess of 8%. Future policy benefits for individual and group annuities and supplementary contracts with life contingencies are generally equal to the present value of expected future payments. Assumptions as to mortality are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. The interest rates used in the determination of the present values range from 0.4% to 11.3% ; less than 1% of the reserves are based on an interest rate in excess of 8%. Future policy benefits for other contract liabilities are generally equal to the present value of expected future payments based on the Company’s experience, except for example, certain group insurance coverages for which future policy benefits are equal to gross unearned premium reserves. The interest rates used in the determination of the present values range from 1.0% to 7.3% . The Company’s liability for future policy benefits is also inclusive of liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in “other contract liabilities” in the table above. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. See Note 11 for additional information regarding liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Premium deficiency reserves included in “Future policy benefits” are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves have been recorded for the group single premium annuity business, which consists of limited-payment, long-duration traditional, non-participating annuities; structured settlements; single premium immediate annuities with life contingencies; long-term care; and for certain individual health policies. Additionally, in certain instances the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional PFL liability be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. A PFL liability is included in “Future policy benefits” and is predominately associated with certain interest-sensitive life contracts. Unpaid claims and claim adjustment expenses primarily reflect the Company’s estimate of future disability claim payments and expenses as well as estimates of claims incurred but not yet reported as of the balance sheet dates related to group disability products. Unpaid claim liabilities that are discounted use interest rates ranging from 2.6% to 6.4% . Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows: 2016 2015 (in millions) Individual annuities $ 40,338 $ 37,384 Group annuities 28,350 27,141 Guaranteed investment contracts and guaranteed interest accounts 14,528 14,122 Funding agreements 4,794 3,997 Interest-sensitive life contracts 34,452 32,502 Dividend accumulation and other 22,743 21,638 Total policyholders’ account balances $ 145,205 $ 136,784 Policyholders’ account balances primarily represent an accumulation of account deposits plus credited interest less withdrawals, expense charges and mortality charges, if applicable. These policyholders’ account balances also include provisions for benefits under non-life contingent payout annuities. Included in “Funding agreements” at December 31, 2016 and 2015 are $3,758 million and $2,957 million , respectively, related to the Company’s Funding Agreement Notes Issuance Program (“FANIP”). Under this program, which has a maximum authorized amount of $15 billion of medium-term notes and $3 billion of commercial paper, Delaware statutory trusts issue short-term commercial paper and/or medium-term notes to investors that are secured by funding agreements issued to the trusts by Prudential Insurance. The outstanding commercial paper and notes have fixed or floating interest rates that range from 0.0% to 2.6% and original maturities ranging from seven days to five years . Included in the amounts at December 31, 2016 and 2015 is the medium-term note liability, which is carried at amortized cost, of $3,210 million and $2,958 million , respectively and short-term note liability of $550 million and $0 , respectively. Also included in “Funding agreements” are collateralized funding agreements issued to the Federal Home Loan Bank of New York (“FHLBNY”) of $1,001 million for both December 31, 2016 and 2015 . These obligations, which are carried at amortized cost, have fixed or floating interest rates that range from 1.1% to 1.7% and original maturities ranging from four to seven years. For additional details on the FHLBNY program, see Note 14. Interest crediting rates range from 0% to 7.5% for interest-sensitive life contracts and from 0% to 13.3% for contracts other than interest-sensitive life. Less than 1% of policyholders’ account balances have interest crediting rates in excess of 8%. |
Certain Long-Duration Contracts
Certain Long-Duration Contracts with Guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Certain Long-Duration Contracts With Guarantees | CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals (“return of net deposits”). In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held-to-maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are reallocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company also issues fixed deferred annuity contracts without MVA that have a guaranteed credited rate and annuity benefit. In addition, the Company issues certain variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no-lapse guarantee”). Variable life and variable universal life contracts are offered with general and separate account options. The assets supporting the variable portion of all variable annuities are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net.” For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The Company’s contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed may not be mutually exclusive. The liabilities related to the net amount at risk are reflected within “Future policy benefits.” As of December 31, 2016 and 2015 , the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2016 December 31, 2015 In the Event of Death At Annuitization / Accumulation(1) In the Event of Death At Annuitization / Accumulation(1) ($ in millions) Annuity Contracts Return of net deposits Account value $ 119,433 $ 152 $ 115,317 $ 142 Net amount at risk $ 493 $ 0 $ 739 $ 0 Average attained age of contractholders 65 years 66 years 65 years 64 years Minimum return or contract value Account value $ 33,843 $ 135,462 $ 34,494 $ 131,005 Net amount at risk $ 3,714 $ 5,788 $ 4,212 $ 5,459 Average attained age of contractholders 67 years 65 years 67 years 64 years Average period remaining until earliest expected annuitization N/A 0.27 years N/A 0.28 years __________ (1) Includes income and withdrawal benefits. December 31, 2016 2015 In the Event of Death ($ in millions) Variable Life, Variable Universal Life and Universal Life Contracts No-lapse guarantees Separate account value $ 8,144 $ 7,643 General account value $ 14,513 $ 13,364 Net amount at risk $ 225,084 $ 211,428 Average attained age of contractholders 56 years 56 years Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2016 2015 (in millions) Equity funds $ 86,751 $ 88,992 Bond funds 48,789 46,642 Balanced funds 914 843 Money market funds 10,124 6,355 Total $ 146,578 $ 142,832 In addition to the amounts invested in separate account investment options above, $8,566 million at December 31, 2016 , and $8,714 million at December 31, 2015 , of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA features, were invested in general account investment options. For the years ended December 31, 2016 , 2015 and 2014 , there were no transfers of assets, other than cash, from the general account to any separate account, and accordingly no gains or losses recorded. Liabilities for Guarantee Benefits The table below summarizes the changes in general account liabilities for guarantees. The liabilities for guaranteed minimum death benefits (“GMDB”), and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.” Guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”), and guaranteed minimum income and withdrawal benefits (“GMIWB”) are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits.” Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 20 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The Company maintains a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. Additionally, the Company externally reinsures the guaranteed benefit features associated with certain contracts. See Note 13 for further information regarding the external reinsurance arrangement. GMDB GMIB GMAB/GMWB/GMIWB Variable Life, Variable Universal Life and Universal Life Annuity Annuity Annuity (in millions) Balance at December 31, 2013 $ 1,795 $ 461 $ 397 $ 441 Incurred guarantee benefits(1)(3) 794 245 40 7,741 Paid guarantee benefits and other (18 ) (68 ) (15 ) 0 Change in unrealized investment gains and losses(3) 283 4 44 0 Other(2)(3) (4 ) 0 1 0 Balance at December 31, 2014 2,850 642 467 8,182 Incurred guarantee benefits(1)(3) 517 167 (40 ) 252 Paid guarantee benefits (22 ) (85 ) (16 ) 0 Change in unrealized investment gains and losses(3) (193 ) (10 ) 41 0 Other(2)(3) (2 ) 0 (12 ) (1 ) Balance at December 31, 2015 3,150 714 440 8,433 Incurred guarantee benefits(1) 927 98 (18 ) (194 ) Paid guarantee benefits (36 ) (91 ) (15 ) 0 Change in unrealized investment gains and losses 102 0 49 0 Other(2) 0 0 18 (1 ) Balance at December 31, 2016 $ 4,143 $ 721 $ 474 $ 8,238 __________ (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives. (2) Other primarily represents foreign currency translation. (3) Prior period amounts are presented on a basis consistent with the current period presentation. The GMDB liability is determined each period end by estimating the accumulated value of a portion of the total assessments to date less the accumulated value of the guaranteed death benefits in excess of the account balance. The GMIB liability associated with variable annuities is determined each period by estimating the accumulated value of a portion of the total assessments to date less the accumulated value of the projected income benefits in excess of the account balance. The portion of assessments used is chosen such that, at issue the present value of expected death benefits or expected income benefits in excess of the projected account balance and the portion of the present value of total expected assessments over the lifetime of the contracts are equal. The GMIB liability associated with fixed annuities is determined each period by estimating the present value of projected income benefits in excess of the account balance. The Company regularly evaluates the estimates used and adjusts the GMDB and GMIB liability balances, with an associated charge or credit to earnings, if actual experience or other evidence suggests that earlier estimates should be revised. The GMAB features provide the contractholder with a guaranteed return of initial account value or an enhanced value if applicable. The most significant of the Company’s GMAB features are the guaranteed return option features, which includes an automatic rebalancing element that reduces the Company’s exposure to these guarantees. The GMAB liability is calculated as the present value of future expected payments in excess of the account balance less the present value of future expected rider fees attributable to the embedded derivative feature. The GMWB features provide the contractholder with access to a guaranteed remaining balance if the account value is reduced to zero through a combination of market declines and withdrawals. The guaranteed remaining balance is generally equal to the protected value under the contract, which is initially established as the greater of the account value or cumulative deposits when withdrawals commence, less cumulative withdrawals. The contractholder also has the option, after a specified time period, to reset the guaranteed remaining balance to the then current account value, if greater. The contractholder accesses the guaranteed remaining balance through payments over time, subject to maximum annual limits. The GMWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. The GMIWB features, taken collectively, provide a contractholder two optional methods to receive guaranteed minimum payments over time, a “withdrawal” option or an “income” option. The withdrawal option (which was available under only one of the GMIWBs and is no longer offered) guarantees that a contractholder can withdraw an amount each year until the cumulative withdrawals reach a total guaranteed balance. The income option (which varies among the Company’s GMIWBs) in general guarantees the contractholder the ability to withdraw an amount each year for life (or for joint lives, in the case of any spousal version of the benefit) where such amount is equal to a percentage of a protected value under the benefit. The contractholder also has the potential to increase this annual amount, based on certain subsequent increases in account value that may occur. The GMIWB can be elected by the contractholder upon issuance of an appropriate deferred variable annuity contract or at any time following contract issue prior to annuitization. Certain GMIWB features include an automatic rebalancing element that reduces the Company’s exposure to these guarantees. The GMIWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. Sales Inducements The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. DSI is included in “Other assets.” The Company has offered various types of sales inducements including: (1) a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s initial deposit; (2) additional credits after a certain number of years a contract is held; and (3) enhanced interest crediting rates that are higher than the normal general account interest rate credited in certain product lines. Changes in DSI, reported as “Interest credited to policyholders’ account balances,” are as follows: Sales Inducements (in millions) Balance at December 31, 2013 $ 1,813 Capitalization 22 Amortization—Impact of assumption and experience unlocking and true-ups 81 Amortization—All other (403 ) Change in unrealized investment gains and losses 1 Balance at December 31, 2014 1,514 Capitalization 8 Amortization—Impact of assumption and experience unlocking and true-ups 43 Amortization—All other (392 ) Change in unrealized investment gains and losses 16 Balance at December 31, 2015 1,189 Capitalization 47 Amortization—Impact of assumption and experience unlocking and true-ups 118 Amortization—All other (231 ) Change in unrealized investment gains and losses 4 Balance at December 31, 2016 $ 1,127 |
Closed Block
Closed Block | 12 Months Ended |
Dec. 31, 2016 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK On the date of demutualization, Prudential Insurance established a closed block for certain in force participating insurance policies and annuity products, along with corresponding assets used for the payment of benefits and policyholders’ dividends on these products, (collectively the “Closed Block”), and ceased offering these participating products. The recorded assets and liabilities were allocated to the Closed Block at their historical carrying amounts. The Closed Block forms the principal component of the Closed Block division. See Note 22 for financial information on the Closed Block division. The insurance policies and annuity contracts comprising the Closed Block are managed in accordance with the Plan of Reorganization approved by the New Jersey Department of Banking and Insurance (“NJDOBI”) on December 18, 2001, and Prudential Insurance is directly obligated for the insurance policies and annuity contracts in the Closed Block. The Class B Repurchase discussed in Note 1 did not change the Closed Block assets allocated to support the Closed Block’s liabilities, policyholder dividend scales or the methodology for determining policyholder dividends, or impact the guaranteed benefits, premiums or dividends for Closed Block policyholders. The policies included in the Closed Block are specified individual life insurance policies and individual annuity contracts that were in force on the date of demutualization and for which Prudential Insurance is currently paying or expects to pay experience-based policy dividends. Assets have been allocated to the Closed Block in an amount that has been determined to produce cash flows which, together with revenues from policies included in the Closed Block, are expected to be sufficient to support obligations and liabilities relating to these policies, including provision for payment of benefits, certain expenses and taxes and to provide for continuation of the policyholder dividend scales in effect in 2000, assuming experience underlying such scales continues. To the extent that, over time, cash flows from the assets allocated to the Closed Block and claims and other experience related to the Closed Block are, in the aggregate, more or less favorable than what was assumed when the Closed Block was established, total dividends paid to Closed Block policyholders may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect in 2000 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to Closed Block policyholders and will not be available to stockholders. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from Prudential Insurance’s assets outside of the Closed Block. The Closed Block will continue in effect as long as any policy in the Closed Block remains in force unless, with the consent of the New Jersey insurance regulator, it is terminated earlier. The excess of Closed Block liabilities over Closed Block assets at the date of the demutualization (adjusted to eliminate the impact of related amounts in AOCI) represented the estimated maximum future earnings at that date from the Closed Block expected to result from operations attributed to the Closed Block after income taxes. In establishing the Closed Block, the Company developed an actuarial calculation of the timing of such maximum future earnings. If actual cumulative earnings of the Closed Block from inception through the end of any given period are greater than the expected cumulative earnings, only the expected earnings will be recognized in income. Any excess of actual cumulative earnings over expected cumulative earnings will represent undistributed accumulated earnings attributable to policyholders, which are recorded as a policyholder dividend obligation. The policyholder dividend obligation represents amounts to be paid to Closed Block policyholders as an additional policyholder dividend unless otherwise offset by future Closed Block performance that is less favorable than originally expected. If the actual cumulative earnings of the Closed Block from its inception through the end of any given period are less than the expected cumulative earnings of the Closed Block, the Company will recognize only the actual earnings in income. However, the Company may reduce policyholder dividend scales, which would be intended to increase future actual earnings until the actual cumulative earnings equaled the expected cumulative earnings. As of December 31, 2016 and 2015 , the Company recognized a policyholder dividend obligation of $1,647 million and $1,694 million , respectively, to Closed Block policyholders for the excess of actual cumulative earnings over the expected cumulative earnings. Additionally, accumulated net unrealized investment gains that have arisen subsequent to the establishment of the Closed Block have been reflected as a policyholder dividend obligation of $3,011 million and $2,815 million at December 31, 2016 and 2015 , respectively, to be paid to Closed Block policyholders unless offset by future experience, with a corresponding amount reported in AOCI. On December 5, 2014 and December 4, 2015, Prudential Insurance’s Board of Directors acted to increase the 2015 and 2016 dividends payable on Closed Block policies, respectively. On December 9, 2016, Prudential Insurance’s Board of Directors approved a continuation of the dividends payable on Closed Block policies for 2017 . These actions resulted in an increase of approximately $ 60 million , $58 million and $32 million in the liability for policyholders dividends recognized for the years ended December 31, 2014 , 2015 and 2016 , respectively. Closed Block liabilities and assets designated to the Closed Block at December 31, as well as maximum future earnings to be recognized from Closed Block liabilities and Closed Block assets, are as follows: 2016 2015 (in millions) Closed Block liabilities Future policy benefits $ 49,281 $ 49,538 Policyholders’ dividends payable 932 945 Policyholders’ dividend obligation 4,658 4,509 Policyholders’ account balances 5,204 5,250 Other Closed Block liabilities 4,262 4,171 Total Closed Block liabilities 64,337 64,413 Closed Block assets Fixed maturities, available-for-sale, at fair value 38,696 37,584 Other trading account assets, at fair value 283 288 Equity securities, available-for-sale, at fair value 2,572 2,726 Commercial mortgage and other loans 9,437 9,770 Policy loans 4,660 4,790 Other long-term investments 3,020 2,921 Short-term investments 837 1,467 Total investments 59,505 59,546 Cash and cash equivalents 1,310 1,036 Accrued investment income 491 506 Other Closed Block assets 206 458 Total Closed Block assets 61,512 61,546 Excess of reported Closed Block liabilities over Closed Block assets 2,825 2,867 Portion of above representing accumulated other comprehensive income: Net unrealized investment gains (losses) 2,990 2,800 Allocated to policyholder dividend obligation (3,011 ) (2,815 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,804 $ 2,852 Information regarding the policyholder dividend obligation is as follows: 2016 2015 (in millions) Balance, January 1 $ 4,509 $ 6,612 Impact from earnings allocable to policyholder dividend obligation (48 ) 137 Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 197 (2,240 ) Balance, December 31 $ 4,658 $ 4,509 Closed Block revenues and benefits and expenses for the years ended December 31, are as follows: 2016 2015 2014 (in millions) Revenues Premiums $ 2,619 $ 2,668 $ 2,704 Net investment income 2,597 2,709 2,809 Realized investment gains (losses), net 433 834 1,164 Other income (loss) 36 23 34 Total Closed Block revenues 5,685 6,234 6,711 Benefits and Expenses Policyholders’ benefits 3,283 3,366 3,326 Interest credited to policyholders’ account balances 132 135 136 Dividends to policyholders 1,941 2,130 2,635 General and administrative expenses 402 423 444 Total Closed Block benefits and expenses 5,758 6,054 6,541 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes and discontinued operations (73 ) 180 170 Income tax expense (benefit) (120 ) 136 139 Closed Block revenues, net of Closed Block benefits and expenses and income taxes, before discontinued operations 47 44 31 Income (loss) from discontinued operations, net of taxes 0 0 1 Closed Block revenues, net of Closed Block benefits and expenses, income taxes and discontinued operations $ 47 $ 44 $ 32 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company participates in reinsurance with third parties primarily to provide additional capacity for future growth, limit the maximum net loss potential arising from large risks and acquire or dispose of businesses. Effective April 1, 2015, the Company entered into an agreement with Union Hamilton Reinsurance, Ltd. (“Union Hamilton”) an external counterparty, to reinsure approximately 50% of the Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income (“HDI”) v.3.0 business, a guaranteed benefit feature. This reinsurance agreement covered most new HDI v.3.0 variable annuity business issued between April 1, 2015 and December 31, 2016 on a quota share basis, with Union Hamilton’s cumulative quota share amounting to $2.9 billion of new rider premiums as of December 31, 2016. Reinsurance on business subject to this agreement remains in force for the duration of the underlying annuity contracts. New sales subsequent to December 31, 2016 are not covered by this external reinsurance agreement. These guaranteed benefit features are accounted for as embedded derivatives. On January 2, 2013, the Company acquired the Hartford Life Business through a reinsurance transaction. Under the agreement, the Company provided reinsurance for approximately 700,000 life insurance policies with net retained face amount in force of approximately $141 billion . The Company acquired the general account business through a coinsurance arrangement and, for certain types of general account policies, a modified coinsurance arrangement. The Company acquired the separate account business through a modified coinsurance arrangement. Since 2011, the Company has entered into several reinsurance agreements to assume pension liabilities in the United Kingdom. Under these arrangements, the Company assumes the longevity risk associated with the pension benefits of certain named beneficiaries. In 2014, the Company entered into a significant reinsurance transaction with a new United Kingdom counterparty. The account value associated with this transaction was $27 billion . In 2006, the Company acquired the variable annuity business of The Allstate Corporation (“Allstate”) through a reinsurance transaction. The reinsurance arrangements with Allstate include a coinsurance arrangement associated with the general account liabilities assumed and a modified coinsurance arrangement associated with the separate account liabilities assumed. The reinsurance payable, which represents the Company’s obligation under the modified coinsurance arrangement, is netted with the reinsurance receivable in the Consolidated Statements of Financial Position. In 2004, the Company acquired the retirement business of CIGNA and subsequently entered into various reinsurance arrangements. The Company still has indemnity coinsurance and modified coinsurance without assumption arrangements in effect related to this acquisition. For the domestic business, life and disability reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term, per person excess, excess of loss, and coinsurance. On policies sold since 2000, the Company has reinsured a significant portion of the individual life mortality risk. Placement of reinsurance is accomplished primarily on an automatic basis with some specific risks reinsured on a facultative basis. The Company has historically retained up to $30 million per life, but reduced its retention limit to $20 million per life in 2013. In addition, through December 31, 2014, the Company reinsured 73% of the Closed Block division with unaffiliated third parties through various modified coinsurance arrangements accounted for using the deposit method of accounting. Effective January 1, 2015, the external reinsurance arrangements related to the Closed Block division were recaptured. The international business primarily uses reinsurance to obtain experience with respect to certain new product offerings and to a lesser extent, to manage risk and volatility as necessary. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. Coinsurance arrangements contrast with the Company’s yearly renewable term arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk . The mortality risk that is reinsured under yearly renewable term arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contract holders to the Company. As yearly renewable term arrangements are usually entered into by the Company with the expectation that the contracts will be inforce for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance related to short-duration reinsurance contracts is accounted for over the reinsurance contract period. The tables presented below exclude amounts pertaining to the Company’s discontinued operations. Reinsurance amounts included in the Consolidated Statements of Operations for premiums, policy charges and fee income and policyholders’ benefits for the years ended December 31, were as follows: 2016 2015 2014 (in millions) Direct premiums $ 30,654 $ 27,996 $ 29,666 Reinsurance assumed 2,073 2,147 1,134 Reinsurance ceded (1,763 ) (1,622 ) (1,507 ) Premiums $ 30,964 $ 28,521 $ 29,293 Direct policy charges and fee income $ 5,031 $ 5,127 $ 5,026 Reinsurance assumed 1,243 1,179 1,425 Reinsurance ceded (368 ) (334 ) (272 ) Policy charges and fee income $ 5,906 $ 5,972 $ 6,179 Direct policyholders’ benefits $ 32,957 $ 29,242 $ 31,012 Reinsurance assumed 3,110 3,107 2,732 Reinsurance ceded (2,435 ) (1,722 ) (2,157 ) Policyholders’ benefits $ 33,632 $ 30,627 $ 31,587 Reinsurance recoverables at December 31, are as follows: 2016 2015 (in millions) Individual and group annuities(1) $ 658 $ 659 Life insurance(2) 3,388 2,885 Other reinsurance 165 160 Total reinsurance recoverables $ 4,211 $ 3,704 __________ (1) Primarily represents reinsurance recoverables established under the reinsurance arrangements associated with the acquisition of the retirement business of CIGNA. The Company has recorded reinsurance recoverables related to the acquisition of the retirement business of CIGNA of $656 million and $650 million at December 31, 2016 and 2015 , respectively. Also included is $0 million and $7 million of reinsurance recoverables at December 31, 2016 and 2015 , respectively, established under the reinsurance agreement with Union Hamilton Reinsurance, Ltd. related to the ceding of certain embedded derivative liabilities associated with the Company’s guaranteed benefits. (2) Includes $2,049 million and $2,118 million of reinsurance recoverables established at December 31, 2016 and 2015 , respectively, under the reinsurance arrangements associated with the acquisition of the Hartford Life Business. The Company has also recorded reinsurance payables related to the Hartford Life Business acquisition of $1,205 million and $1,305 million at December 31, 2016 and 2015 , respectively. Excluding the reinsurance recoverable associated with the acquisition of the Hartford Life Business and the retirement business of CIGNA, four major reinsurance companies account for approximately 59% of the reinsurance recoverable at December 31, 2016 . The Company periodically reviews the financial condition of its reinsurers, amounts recoverable therefrom, and unearned reinsurance premium, in order to minimize its exposure to loss from reinsurer insolvencies. If deemed necessary, the Company would secure collateral in the form of a trust, letter of credit, or funds withheld arrangement to ensure collectability; otherwise, an allowance for uncollectible reinsurance would be recorded. Under the Company’s longevity reinsurance transactions, the Company has secured collateral from its counterparties to minimize counterparty default risk. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | SHORT-TERM AND LONG-TERM DEBT Short-term Debt The table below presents the Company’s short-term debt at December 31, for the years indicated as follows: 2016 2015 ($ in millions) Commercial paper: Prudential Financial $ 65 $ 80 Prudential Funding, LLC 525 384 Subtotal commercial paper 590 464 Current portion of long-term debt 543 752 Total short-term debt(1) $ 1,133 $ 1,216 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 292 $ 331 Daily average commercial paper outstanding $ 1,020 $ 1,127 Weighted average maturity of outstanding commercial paper, in days 21 10 Weighted average interest rate on outstanding short-term debt(2) 0.43 % 0.16 % __________ (1) Includes Prudential Financial debt of $535 million and $831 million at December 31, 2016 and 2015 , respectively. (2) Excludes the current portion of long-term debt. At December 31, 2016 and 2015 , the Company was in compliance with all covenants related to the above debt. Commercial Paper Prudential Financial has a commercial paper program with an authorized capacity of $3.0 billion . Prudential Financial’s commercial paper borrowings have generally been used to fund the working capital needs of Prudential Financial’s subsidiaries and provide short-term liquidity at Prudential Financial. Prudential Funding, LLC (“Prudential Funding”), a wholly-owned subsidiary of Prudential Insurance, has a commercial paper program, with an authorized capacity of $7.0 billion . Prudential Funding commercial paper borrowings generally have served as an additional source of financing to meet the working capital needs of Prudential Insurance and its subsidiaries. Prudential Funding also lends to other subsidiaries of Prudential Financial up to limits agreed with the NJDOBI. Prudential Funding maintains a support agreement with Prudential Insurance whereby Prudential Insurance has agreed to maintain Prudential Funding’s tangible net worth at a positive level. Additionally, Prudential Financial has issued a subordinated guarantee covering Prudential Funding’s $7.0 billion commercial paper program. Federal Home Loan Bank of New York Prudential Insurance is a member of the FHLBNY. Membership allows Prudential Insurance access to the FHLBNY’s financial services, including the ability to obtain collateralized loans and to issue collateralized funding agreements. Under applicable law, the funding agreements issued to the FHLBNY have priority claim status above debt holders of Prudential Insurance. FHLBNY borrowings and funding agreements are collateralized by qualifying mortgage-related assets or U.S. Treasury securities, the fair value of which must be maintained at certain specified levels relative to outstanding borrowings. FHLBNY membership requires Prudential Insurance to own member stock and borrowings require the purchase of activity-based stock in an amount equal to 4.5% of outstanding borrowings. Under FHLBNY guidelines, if any of Prudential Insurance’s financial strength ratings decline below A/A2/A Stable by S&P/Moody’s/Fitch, respectively, and the FHLBNY does not receive written assurances from the NJDOBI regarding Prudential Insurance’s solvency, new borrowings from the FHLBNY would be limited to a term of 90 days or less. Currently there are no restrictions on the term of borrowings from the FHLBNY. All FHLBNY stock purchased by Prudential Insurance is classified as restricted general account investments within “Other long-term investments,” and the carrying value of these investments was $78 million and $98 million as of December 31, 2016 and 2015 , respectively. NJDOBI permits Prudential Insurance to pledge collateral to the FHLBNY in an amount of up to 5% of its prior year-end statutory net admitted assets, excluding separate account assets. Based on Prudential Insurance’s statutory net admitted assets as of December 31, 2015 , the 5% limitation equates to a maximum amount of pledged assets of $5.8 billion and an estimated maximum borrowing capacity (after taking into account required collateralization levels) of approximately $5.0 billion . Nevertheless, FHLBNY borrowings are subject to the FHLBNY’s discretion and to the availability of qualifying assets at Prudential Insurance. As of December 31, 2016 , Prudential Insurance had pledged assets with a fair value of $1.2 billion supporting outstanding funding agreements totaling $1.0 billion , which are included in “Policyholders’ account balances.” The fair value of qualifying assets that were available to Prudential Insurance, but not pledged, amounted to $5.9 billion as of December 31, 2016 . Prudential Insurance had no advances outstanding under the FHLBNY facility as of December 31, 2016 . Federal Home Loan Bank of Boston Prudential Retirement Insurance and Annuity Company (“PRIAC”) is a member of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows PRIAC access to collateralized advances which will be classified in “Short-term debt” or “Long-term debt,” depending on the maturity date of the obligation. PRIAC’s membership in FHLBB requires the ownership of member stock and borrowings from FHLBB require the purchase of activity-based stock in an amount between 3.0% and 4.5% of outstanding borrowings, depending on the maturity date of the obligation. All FHLBB stock purchased by PRIAC is classified as restricted general account investments within "Other long-term investments," and the carrying value of these investments was $10 million and $11 million as of December 31, 2016 and 2015 , respectively. As of December 31, 2016 , PRIAC had no advances outstanding under the FHLBB facility. Under Connecticut state insurance law, without the prior consent of the Connecticut Insurance Department, the amount of assets insurers may pledge to secure debt obligations is limited to the lesser of 5% of prior-year statutory admitted assets or 25% of prior-year statutory surplus, resulting in a maximum borrowing capacity for PRIAC under the FHLBB facility of approximately $245 million as of December 31, 2016. Credit Facilities As of December 31, 2016 , the Company maintained syndicated, unsecured committed credit facilities as described below. Borrower Original Term Expiration Date Capacity Amount Outstanding (in millions) Prudential Financial and Prudential Funding 5 years Apr 2020 $ 4,000 $ 0 Prudential Holdings of Japan, Inc. 3 years Sep 2019 ¥ 100,000 ¥ 0 The $4.0 billion five -year facility contains customary representations and warranties, covenants and events of default and borrowings are not contingent on the borrowers’ credit ratings nor subject to material adverse change clauses. Borrowings under this facility are conditioned on the continued satisfaction of customary financial covenants, including Prudential Financial’s maintenance of consolidated net worth of at least $18.985 billion , which is calculated as U.S. GAAP equity, excluding AOCI, equity of noncontrolling interests and equity attributable to the Closed Block. The Company expects that it may borrow under the $4.0 billion five -year facility from time to time to fund its working capital needs. In addition, amounts under this credit facility may be drawn in the form of standby letters of credit that can be used to meet the Company’s operating needs. The ¥100 billion three -year facility was entered into by Prudential Holdings of Japan, Inc. in September 2016. This facility also contains customary representations and warranties, covenants, and events of default and borrowings are not contingent on the borrower’s credit ratings nor subject to material adverse change clauses. The ¥100 billion three -year facility also contains a two year term-out option. Borrowings under each of these credit facilities may be used for general corporate purposes. As of December 31, 2016 , the Company was in compliance with the covenants under each of these credit facilities. In addition to the above credit facilities, the Company had access to $838 million of certain other lines of credit at December 31, 2016 , of which $765 million was for the sole use of certain real estate separate accounts. The separate account facilities include loan-to-value ratio requirements and other financial covenants, and recourse on obligations under these facilities is limited to the assets of the applicable separate account. At December 31, 2016 , $462 million of these credit facilities were used. The Company also has access to uncommitted lines of credit from financial institutions. Put Option Agreement for Senior Debt Issuance In November 2013, Prudential Financial entered into a ten -year put option agreement with a Delaware trust upon the completion of the sale of $1.5 billion of trust securities by that Delaware trust in a Rule 144A private placement. The trust invested the proceeds from the sale of the trust securities in a portfolio of principal and interest strips of U.S. Treasury securities. The put option agreement provides Prudential Financial the right to sell to the trust at any time up to $1.5 billion of 4.419% senior notes due November 2023 and receive in exchange a corresponding amount of the principal and interest strips of U.S. Treasury securities held by the trust. In return, the Company agreed to pay a semi-annual put premium to the trust at a rate of 1.777% per annum applied to the unexercised portion of the put option. The put option agreement with the trust provides Prudential Financial with a source of liquid assets. The put option described above will be exercised automatically in full upon the Company’s failure to make certain payments to the trust, such as paying the put option premium or reimbursing the trust for its expenses, if the Company’s failure to pay is not cured within 30 days , and upon an event involving its bankruptcy. The Company is also required to exercise the put option if its consolidated stockholders’ equity, calculated in accordance with U.S. GAAP but excluding AOCI, falls below $7.0 billion , subject to adjustment in certain cases. The Company has a one-time right to unwind a prior voluntary exercise of the put option by repurchasing all of the senior notes then held by the trust in exchange for principal and interest strips of U.S. Treasury securities. Finally, any of the 4.419% senior notes that Prudential Financial issues may be redeemed prior to their maturity at par or, if greater, a make-whole price, following a voluntary exercise in full of the put option. Long-term Debt The table below presents the Company’s long-term debt at December 31, for the years indicated as follows: Maturity Dates Rate(2) December 31, 2016 2015(1) ($ in millions) Fixed-rate notes: Surplus notes 2019-2025 5.36%-8.30% $ 840 $ 841 Surplus notes subject to set-off arrangements 2021-2033 3.52%-5.26% 4,403 3,850 Senior notes 2017-2045 2.30%-11.31% 9,236 10,208 Mortgage debt(3) 2019-2024 1.72%-3.74% 177 134 Floating-rate notes: Surplus notes 2052 1.58%-2.04% 499 500 Surplus notes subject to set-off arrangements 2024 1.73%-2.25% 1,456 1,050 U.S. dollar-denominated senior notes 2017-2020 1.14%-4.39% 1,008 1,608 Foreign currency denominated senior notes (4) 1.07%-1.24% 55 51 Mortgage debt(5) 2017-2025 0.65%-2.40% 409 430 Junior subordinated notes 2042-2068 5.20%-8.88% 5,817 5,811 Subtotal 23,900 24,483 Less: assets under set-off arrangements(6) 5,859 4,889 Total long-term debt(7) $ 18,041 $ 19,594 __________ (1) Prior period has been revised to conform to current period presentation due to the adoption of ASU 2015-03 regarding debt issuance costs. For more information, see Note 2 to the Consolidated Financial Statements. (2) Ranges of interest rates are for the year ended December 31, 2016 . (3) Includes $82 million and $ 38 million of debt denominated in foreign currency at December 31, 2016 and 2015, respectively. (4) Perpetual debt that has no stated maturity. (5) Includes $221 million and $ 212 million of debt denominated in foreign currency at December 31, 2016 and 2015, respectively. (6) Assets under set-off arrangements represent a reduction in the amount of surplus notes included in long-term debt, resulting from an arrangement where valid rights of set-off exist and it is the intent of both parties to settle on a net basis under legally enforceable arrangements. These assets include available-for-sale securities that are valued at market. (7) Includes Prudential Financial debt of $15,389 million and $16,354 million at December 31, 2016 and 2015 , respectively. At December 31, 2016 and 2015 , the Company was in compliance with all debt covenants related to the borrowings in the table above. The following table presents the contractual maturities of the Company’s long-term debt as of December 31, 2016 : Calendar Year 2018 2019 2020 2021 2022 and thereafter Total (in millions) Long-term debt $ 1,330 $ 1,684 $ 1,253 $ 554 $ 13,220 $ 18,041 Surplus Notes As of December 31, 2016 , Prudential Insurance had $840 million of fixed-rate surplus notes outstanding. These notes are subordinated to other Prudential Insurance borrowings and policyholder obligations, and the payment of interest and principal may only be made with the prior approval of the NJDOBI. The NJDOBI could prohibit the payment of the interest and principal on the surplus notes if certain statutory capital requirements are not met. At December 31, 2016 and 2015 , the Company met these statutory capital requirements. Prudential Insurance’s fixed-rate surplus notes include $500 million of exchangeable surplus notes issued in a private placement in 2009 with an interest rate of 5.36% per annum and due September 2019. The surplus notes became exchangeable at the option of the holder, in whole but not in part, for shares of Prudential Financial Common Stock beginning as of September 18, 2014. The initial exchange rate for the surplus notes was 10.1235 shares of Common Stock per each $1,000 principal amount of surplus notes, which represented an initial exchange price per share of Common Stock of $98.78 ; however, the exchange rate is subject to customary anti-dilution adjustments. The exchange rate is also subject to a make-whole decrease in the event of an exchange prior to maturity (except upon a fundamental business combination or a continuing payment default), that will result in a reduction in the number of shares issued upon exchange (per $1,000 principal amount of surplus notes) determined by dividing a prescribed cash reduction value (which will decline over the life of the surplus notes, from $102.62 for an exercise on September 18, 2014, to zero for an exercise at maturity) by the price of the Common Stock at the time of exchange. In addition, the exchange rate is subject to a customary make-whole increase in connection with an exchange of the surplus notes upon a fundamental business combination where 10% or more of the consideration in that business combination consists of cash, other property or securities that are not listed on a U.S. national securities exchange. These exchangeable surplus notes are not redeemable by Prudential Insurance prior to maturity, except in connection with a fundamental business combination involving Prudential Financial, in which case the surplus notes will be redeemable by Prudential Insurance, subject to the noteholders’ right to exchange the surplus notes instead, at par or, if greater, a make-whole redemption price. From 2011 through 2013, a captive reinsurance subsidiary of Prudential Insurance entered into agreements providing for the issuance and sale of up to $2.0 billion of ten -year fixed-rate surplus notes. Under the agreements, the captive receives in exchange for the surplus notes one or more credit-linked notes issued by a special-purpose subsidiary of the Company in an aggregate principal amount equal to the surplus notes issued. The captive holds the credit-linked notes as assets supporting non-economic reserves required to be held by the Company’s domestic insurance subsidiaries under Regulation XXX in connection with the reinsurance of term life insurance policies through the captive. Regulation XXX requires statutory reserves for term and universal life insurance policies with long-term premium guarantees to be consistent with the statutory reserves required for other individual life policies with similar guarantees. Many market participants believe that these levels of reserves are excessive relative to the levels reasonably required to maintain solvency for moderately adverse experience. The difference between the statutory reserve and the amount the Company considers necessary to maintain solvency for moderately adverse experience is considered the non-economic portion of the statutory reserve. The principal amount of the outstanding credit-linked notes is redeemable by the captive in cash upon the occurrence of, and in an amount necessary to remedy, a specified liquidity stress event affecting the captive. Under the agreements, external counterparties have agreed to fund any such payment under the credit-linked notes in return for a fee. Prudential Financial has agreed to make capital contributions to the captive to reimburse it for investment losses in excess of specified amounts and has agreed to reimburse the external counterparties for any payments under the credit-linked notes that are funded by those counterparties. As of December 31, 2016 , an aggregate of $1.75 billion of surplus notes were outstanding under these agreements and no such payments under the credit-linked notes have been required. In December 2013, a captive reinsurance subsidiary entered into a twenty -year financing facility with external counterparties providing for the issuance and sale of a surplus note for the financing of non-economic reserves required under Guideline AXXX. The current financing capacity available under the facility is $3.5 billion . In December 2015, the facility was amended to increase the maximum potential size of the facility to $4.5 billion . Similar to the agreements described above, the captive receives in exchange for the surplus note one or more credit-linked notes issued by a special-purpose affiliate in an aggregate principal amount equal to the surplus note. As above, the principal amount of the outstanding credit-linked notes is redeemable by the captive in cash upon the occurrence of, and in an amount necessary to remedy, a specified liquidity stress event, and the external counterparties have agreed to fund any such payment. Prudential Financial has agreed to reimburse the captive for investment losses in excess of specified amounts; however, Prudential Financial has no other reimbursement obligations to the external counterparties under this facility. As of December 31, 2016 , an aggregate of $2.65 billion of surplus notes were outstanding under the facility and no credit-linked note payments have been required. In December 2014, a captive reinsurance subsidiary entered into a ten -year financing facility with certain unaffiliated financial institutions, pursuant to which the captive agreed to issue and sell a surplus note in an aggregate principal amount of up to $1.75 billion in return for an equal principal amount of credit-linked notes issued by a special-purpose affiliate. The term of the financing facility may be extended, at the captive’s option, by up to five years . The captive holds the credit-linked notes as assets supporting non-economic reserves required to be held by the Company’s domestic insurance subsidiaries under Regulation XXX in connection with the reinsurance of term life insurance policies through the captive. The principal amount of the outstanding credit-linked notes is redeemable by the captive in cash upon the occurrence of, and in an amount necessary to remedy, a specified liquidity stress event affecting the captive. Under the agreements, external counterparties have agreed to fund any such payment under the credit-linked notes in return for a fee. Prudential Financial has agreed to make capital contributions to the captive to reimburse it for investment losses in excess of specified amounts. As of December 31, 2016 , an aggregate of $1.46 billion of surplus notes were outstanding under the facility and no credit-linked note payments have been required. A captive reinsurance subsidiary maintains a financing facility with unaffiliated financial institutions, pursuant to which the captive has outstanding $2.7 billion in principal amount of surplus notes and received in return an equal principal amount of credit-linked notes issued by two special-purpose affiliates. One of the special-purpose affiliates also has outstanding $500 million of senior notes held by one of the unaffiliated financial institutions, following the redemption of $600 million of senior notes in November 2016. The remaining term of the financing is eighteen years . The captive holds the credit-linked notes as assets supporting non-economic reserves required to be held by the Company’s domestic insurance subsidiaries under Regulation XXX in connection with the reinsurance through the captive of term life insurance policies. The captive can redeem the credit-linked notes in cash upon the occurrence of, and in an amount necessary to remedy, a liquidity stress event affecting the captive. The unaffiliated financial institutions have agreed to fund any such credit-linked notes payments in an amount of up to $1.9 billion , in return for the receipt of fees. The remaining $800 million of obligations of the special-purpose affiliates to make payments under the credit-linked notes are supported by collateral held by those affiliates. Prudential Financial has agreed to make capital contributions to the captive and to the special-purpose affiliates to reimburse them for investment losses in excess of specified amounts. Prudential Financial has also agreed to reimburse one of the unaffiliated financial institutions for any payments under the credit-linked notes funded by it in an amount of up to $1 billion and for any payments due but otherwise unpaid under the $500 million of senior notes issued by the special-purpose affiliates. Under each of the above transactions for the captive reinsurance subsidiaries, because valid rights of set-off exist, interest and principal payments on the surplus notes and on the credit-linked notes are settled on a net basis, and the surplus notes are reflected in the Company’s total consolidated borrowings on a net basis. Another captive reinsurance subsidiary has $500 million of outstanding principal on surplus notes that were issued in 2007 with unaffiliated institutions to finance non-economic reserves required under Guideline AXXX. Prudential Financial has agreed to maintain the capital of this captive at or above a prescribed minimum level and has entered into arrangements (which are accounted for as derivative instruments) that require it to make certain payments in the event of deterioration in the value of the surplus notes. As of December 31, 2016 and 2015 , there were no collateral postings made under these derivative instruments. The surplus notes for the captive reinsurance subsidiaries described above are subordinated to policyholder obligations, and the payment of principal on the surplus notes may only be made with prior approval of the Arizona Department of Insurance. The payment of interest on the surplus notes has been approved by the Arizona Department of Insurance, subject to its ability to withdraw that approval. On February 18, 2015, Prudential Legacy Insurance Company of New Jersey (“PLIC”) entered into a twenty -year financing facility with certain unaffiliated financial institutions and a special-purpose company affiliate, pursuant to which PLIC may, at its option and subject to the satisfaction of customary conditions, issue and sell to the affiliate up to $4.0 billion in aggregate principal amount of surplus notes, in return for an equal principal amount of credit-linked notes. Upon issuance, PLIC would hold any credit-linked notes as assets to finance future statutory surplus needs within PLIC. As of December 31, 2016 , there were no surplus notes outstanding under the facility. Senior Notes Medium-Term Notes. Prudential Financial maintains a medium-term notes program under its shelf registration statement with an authorized issuance capacity of $20.0 billion . As of December 31, 2016 , the outstanding balance of medium-term notes under this program was $9.6 billion , a decrease of $1.3 billion from December 31, 2015 , due to maturities of $750 million and the repurchase of $500 million of medium-term notes through a tender offer. The repurchase included a prepayment premium and fees totaling $36 million which were recorded to interest expense. Retail Medium-Term Notes. Prudential Financial also maintains a retail medium-term notes program, including the InterNotes ® program, under its shelf registration statement with an authorized issuance capacity of $5.0 billion . As of December 31, 2016 , the outstanding balance of retail notes was $461 million . The weighted average interest rate on outstanding senior notes issued under these programs, including the effect of interest rate hedging activity, was 5.54% and 5.03% for the years ended December 31, 2016 and 2015 , respectively, excluding the effect of debt issued to consolidated subsidiaries. Funding Agreement Notes Issuance Program. The Company maintains a FANIP in which statutory trusts issue medium-term notes and commercial paper secured by funding agreements issued to the trusts by Prudential Insurance. These obligations are included in “Policyholders’ account balances” and not included in the foregoing table. See Note 10 for further discussion of these obligations. Mortgage Debt . As of December 31, 2016 , the Company’s subsidiaries had mortgage debt of $659 million that has recourse only to real estate property held for investment by those subsidiaries. This represents an increase of $95 million from December 31, 2015 , primarily due to new borrowings in 2016 of $ 113 million (including foreign exchange fluctuations) offset by foreign exchange fluctuations of $ 14 million on debt outstanding as of 2015. Junior Subordinated Notes Prudential Financial’s junior subordinated notes outstanding are considered hybrid securities that receive enhanced equity treatment from the rating agencies. Junior subordinated notes outstanding, along with their key terms, are as follows: Issue Date Principal Amount Initial Interest Rate Investor Type Optional Redemption Date(1) Interest Rate Subsequent to Optional Redemption Date Scheduled Maturity Date Final Maturity Date ($ in millions) June 2008 $ 600 8.88 % Institutional 6/15/2018 LIBOR + 5.00% 6/15/2038 6/15/2068 August 2012 $ 1,000 5.88 % Institutional 9/15/2022 LIBOR + 4.18% n/a 9/15/2042 November 2012 $ 1,500 5.63 % Institutional 6/15/2023 LIBOR + 3.92% n/a 6/15/2043 December 2012 $ 575 5.75 % Retail 12/4/2017 5.75% n/a 12/15/2052 March 2013 $ 710 5.70 % Retail 3/15/2018 5.70% n/a 3/15/2053 March 2013 $ 500 5.20 % Institutional 3/15/2024 LIBOR + 3.04% n/a 3/15/2044 May 2015 $ 1,000 5.38 % Institutional 5/15/2025 LIBOR + 3.03% n/a 3/15/2045 __________ (1) Represents the initial date on which the notes can be redeemed at par solely at the option of the Company, subject in the case of the 8.88% notes to compliance with a replacement capital covenant. Prudential Financial has the right to defer interest payments on these notes for specified periods, typically 5 - 10 years without resulting in a default, during which time interest will be compounded. On or after the optional redemption dates, Prudential Financial may redeem the notes at par plus accrued and unpaid interest. Prior to those optional redemption dates, redemptions generally are subject to a make-whole price; however, the Company may redeem the notes prior to these dates at par upon the occurrence of certain events, such as, for the notes issued in 2012 and later, a future change in the regulatory capital treatment of the notes with respect to the Company. In connection with the issuance of the 8.88% notes, Prudential Financial entered into a replacement capital covenant for the benefit of the holders of its 5.90% senior notes due March 2036. Under this covenant, the Company agreed not to redeem or repurchase the 8.88% notes prior to June 2038 unless it has received proceeds from the issuance of specified replacement capital securities. Limited Recourse Notes. In 2014, Prudential Financial entered into financing transactions pursuant to which it issued $500 million of limited recourse notes and, in return, obtained $500 million of asset-backed notes issued by a designated series of a Delaware master trust. The asset-backed notes mature from 2019 through 2023; however, the maturity date of a portion of the notes may be extended by the Company through 2024, subject to conditions. The asset-backed notes were ultimately contributed to PRIAC, an insurance subsidiary, to finance statutory surplus, and PRIAC, in turn, paid cash dividends totaling $500 million to its parent, Prudential Insurance. The master trust’s payment obligations under each of the asset-backed notes are secured by corresponding payment obligations of a third-party financial institution and a portfolio of specified assets that have an aggregate value at least equal to the principal amount of the applicable asset-backed note. The principal amount of each asset-backed note is payable to PRIAC in cash at any time upon demand by PRIAC or, if not earlier paid, at maturity. Each of the limited recourse notes obligates Prudential Financial to reimburse the applicable third-party financial institution for any principal payments received on the corresponding asset-backed note, but there is no obligation to reimburse any portion of a principal payment that is needed by PRIAC to pay then current claims to its policyholders. Each limited recourse note bears interest at a rate equal to the rate on the corresponding asset-backed note, plus an amount representing fees payable to the applicable third-party financial institution. As of December 31, 2016 , no principal payments have been received or are currently due on the asset-backed notes and, as a result, there was no payment obligation under the limited recourse notes. Accordingly, the notes are not reflected in the Company’s Consolidated Financial Statements as of December 31, 2016 . Interest Expense In order to modify exposure to interest rate and currency exchange rate movements, the Company utilizes derivative instruments, primarily interest rate swaps, in conjunction with some of its debt issues. The impact of these derivative instruments are not reflected in the rates presented in the tables above. For those derivative instruments that qualify for hedge accounting treatment, interest expense increased by $5 million , $7 million and $22 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. See Note 21 for additional information on the Company’s use of derivative instruments. Interest expense for short-term and long-term debt was $1,324 million , $1,328 million and $1,934 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. This includes interest expense of $11 million for each of the years ended December 31, 2016 , 2015 and 2014 , reported in “Net investment income.” The interest expense for the year ended December 31, 2016 includes a prepayment premium and fees totaling $36 million on debt repurchased through a tender offer. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Equity | EQUITY On the date of demutualization, Prudential Financial completed an initial public offering of its Common Stock at an initial public offering price of $27.50 per share. The shares of Common Stock issued were in addition to shares of Common Stock the Company distributed to policyholders as part of the demutualization. The Common Stock is traded on the New York Stock Exchange under the symbol “PRU”. Through December 31, 2014, the Common Stock reflected the performance of the Company’s former Financial Services Businesses. As a result of the Class B Repurchase, beginning in 2015, the Common Stock reflects the consolidated performance of Prudential Financial. Also on the date of demutualization, Prudential Financial completed the sale, through a private placement, of 2.0 million shares of Class B Stock at a price of $87.50 per share. The Class B Stock was a separate class of common stock not traded publicly, which reflected the performance of the Company’s former Closed Block Business. As part of the Class B Repurchase, Prudential Financial repurchased and canceled all of the 2.0 million shares of the Class B Stock. The changes in the number of shares of Common Stock issued, held in treasury and outstanding, are as follows for the periods indicated: Common Stock Issued Held In Treasury Outstanding (in millions) Balance, December 31, 2013 660.1 199.0 461.1 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 11.6 (11.6 ) Stock-based compensation programs(1) 0.0 (5.3 ) 5.3 Balance, December 31, 2014 660.1 205.3 454.8 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 12.1 (12.1 ) Stock-based compensation programs(1) 0.0 (4.4 ) 4.4 Balance, December 31, 2015 660.1 213.0 447.1 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 25.1 (25.1 ) Stock-based compensation programs(1) 0.0 (7.6 ) 7.6 Balance, December 31, 2016 660.1 230.5 429.6 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. In the event of a liquidation, dissolution or winding-up of the Company, holders of Common Stock would be entitled to receive a proportionate share of the net assets of the Company that remain after paying all liabilities and the liquidation preferences of any preferred stock. Common Stock Held in Treasury Common Stock held in treasury is accounted for at average cost. Gains resulting from the reissuance of “Common Stock held in treasury” are credited to “Additional paid-in capital.” Losses resulting from the reissuance of “Common Stock held in treasury” are charged first to “Additional paid-in capital” to the extent the Company has previously recorded gains on treasury share transactions, then to “Retained earnings.” In June 2014 , Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.0 billion of its outstanding Common Stock from July 1, 2014 through June 30, 2015 . Under this authorization, 11.7 million shares of the Company’s Common Stock were repurchased at a total cost of $1.0 billion , of which 6.0 million shares were repurchased in the first six months of 2015 at a total cost of $500 million . In June 2015 , Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.0 billion of its outstanding Common Stock from July 1, 2015 through June 30, 2016 . As of December 31, 2015 , 6.1 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $500 million . In December 2015 , Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.5 billion of its outstanding Common Stock during the period from January 1, 2016 through December 31, 2016. Effective January 1, 2016, this authorization superseded the Company’s previous $1.0 billion share repurchase authorization that covered the period from July 1, 2015 through June 30, 2016 . In August 2016, the Board of Directors authorized a $500 million increase to the authorization for calendar year 2016. As a result, the Company’s aggregate share repurchase authorization for the full year 2016 was $2.0 billion . As of December 31, 2016 , 25.1 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $2.0 billion . In December 2016, Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.25 billion of its outstanding Common Stock from January 1, 2017 through December 31, 2017. The timing and amount of share repurchases are determined by management based upon market conditions and other considerations, and repurchases may be effected in the open market, through derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Securities Exchange Act of 1934. Numerous factors could affect the timing and amount of any future repurchases under the share repurchase authorization, including increased capital needs of the Company due to changes in regulatory capital requirements, opportunities for growth and acquisitions, and the effect of adverse market conditions on the segments. Class B Stock On January 2, 2015, pursuant to a Share Repurchase Agreement entered into on December 1, 2014, between the Company and the holders of the Class B Stock, the Company repurchased and canceled all of the shares of the Class B Stock for an aggregate cash purchase price of $651 million , resulting in the elimination of the Class B Stock held in treasury, a $484 million decrease in “Retained earnings” and a $167 million decrease in “Additional paid-in capital.” In accordance with the terms of the Share Repurchase Agreement, the holders of the Class B Stock subsequently exercised their right to dispute the calculation of the purchase price. This dispute was resolved during the first quarter of 2016, resulting in an increase to the cash purchase price of $119 million , bringing the total aggregate purchase price to $770 million . The increase to the cash purchase price resulted in a corresponding decrease in “Retained earnings.” Preferred Stock As of December 31, 2016 , 2015 and 2014 , the Company had no preferred stock outstanding. Dividends The declaration and payment of dividends on the Common Stock is limited by New Jersey corporate law, pursuant to which Prudential Financial is prohibited from paying a Common Stock dividend if, after giving effect to that dividend, either (a) the Company would be unable to pay its debts as they become due in the usual course of its business or (b) the Company’s total assets would be less than its liabilities. In addition, the terms of the Company’s outstanding junior subordinated debt include a “dividend stopper” provision that restricts the payment of dividends on the Common Stock if interest payments are not made on the junior subordinated debt. Further, as a Designated Financial Company under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), Prudential Financial is expected to be subject to stricter requirements and limitations regarding capital, leverage and liquidity. Prudential Financial’s compliance with these and other requirements under Dodd-Frank could limit its ability to pay Common Stock dividends in the future. As of December 31, 2016 , the Company’s U.S. GAAP retained earnings were $21,946 million . Other than the above limitations, this amount is free of restrictions for the payment of Common Stock dividends; however, Common Stock dividends will be dependent upon financial conditions, results of operations, cash needs, future prospects and other factors, including cash available to Prudential Financial, the parent holding company. The principal sources of funds available to Prudential Financial are dividends and returns of capital from its subsidiaries, repayments of operating loans from its subsidiaries and cash and short-term investments. The primary uses of funds at Prudential Financial include servicing its debt, operating expenses, capital contributions and loans to subsidiaries, the payment of declared shareholder dividends and repurchases of outstanding shares of Common Stock if executed under Board authority. As of December 31, 2016 , Prudential Financial had highly liquid assets consisting of cash, short-term investments and U.S. Treasury fixed maturities of $4,553 million , excluding amounts held in an intercompany liquidity account. Future cash available at Prudential Financial to support the payment of future Common Stock dividends is dependent on the receipt of dividends or other funds from its subsidiaries, the majority of which are subject to comprehensive regulation, including limitations on their payment of dividends and other transfers of funds, which are discussed below. With respect to Prudential Insurance, the Company’s primary domestic insurance subsidiary, New Jersey insurance law provides that, except in the case of extraordinary dividends (as described below), all dividends or other distributions paid by Prudential Insurance may be paid only from unassigned surplus, as determined pursuant to statutory accounting principles, less cumulative unrealized investment gains and losses and revaluation of assets as of the prior calendar year-end. As of December 31, 2016 , Prudential Insurance’s unassigned surplus was $10,176 million , and it recorded applicable adjustments for cumulative unrealized investment gains of $256 million . Prudential Insurance must give prior notification to the NJDOBI of its intent to pay any such dividend or distribution. Also, if any dividend, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of Prudential Insurance’s statutory surplus as of the preceding December 31 ( $11,290 million as of December 31, 2016 ) or (ii) its statutory net gain from operations excluding realized investment gains and losses for the twelve month period ending on the preceding December 31 ( $5,720 million for the year ended December 31, 2016 ), the dividend is considered to be an “extraordinary dividend” and requires the prior approval of the NJDOBI. Under New Jersey insurance law, Prudential Insurance is permitted to pay an ordinary dividend of $5,720 million in 2017 without prior approval of the NJDOBI. Of the $5,720 million , $2,702 million is permitted to be paid prior to April 2017 without prior approval of the NJDOBI. Of the remaining $3,018 million , $2,118 million is permitted to be paid after April 2017, and $900 million is permitted to be paid after June 2017, without prior approval of the NJDOBI. The laws regulating dividends of the states where the Company’s other domestic insurance subsidiaries are domiciled are similar, but not identical, to New Jersey’s. In Arizona, if any dividend, together with other dividends or distributions made within the preceding twelve months, exceeds the lesser of (i) 10% of statutory surplus as of December 31 of the preceding year or (ii) the statutory net gain from operations of the preceding calendar year, the dividend is considered to be an “extraordinary dividend” and requires prior approval of the Arizona Department of Insurance. Under Arizona insurance law, Prudential Annuities Life Assurance Corporation (“PALAC”), an Arizona-domiciled insurer that is a subsidiary of Prudential Financial, is not permitted to pay a dividend in 2017 without prior notification to the Arizona Department of Insurance, as PALAC reported a statutory net loss from operations in 2016. The Company’s international insurance operations are subject to dividend restrictions from the regulatory authorities in the jurisdictions in which they operate. With respect to The Prudential Life Insurance Company Ltd. (“Prudential of Japan”) and Gibraltar Life, the Company’s most significant international insurance subsidiaries, both of which are domiciled in Japan, Japan insurance law provides that common stock dividends may be paid in an amount of up to 83% of prior fiscal year statutory after-tax earnings, after certain reserving thresholds are met, including providing for policyholder dividends. If statutory retained earnings exceed 100% of statutory paid-in capital, 100% of prior year statutory after-tax earnings may be paid, after reserving thresholds are met. Dividends in excess of these amounts and other forms of capital distribution require the prior approval of the Japan Financial Services Agency (“FSA”). Additionally, Prudential of Japan and Gibraltar Life must give prior notification to the FSA of their intent to pay any dividend or distribution. In addition to paying common stock dividends, Prudential of Japan and Gibraltar Life may return capital to Prudential Financial through other means, such as the repayment of subordinated debt or preferred stock obligations held by Prudential Financial or other affiliates. During 2016 , Prudential Financial received a total of $446 million from Prudential International Insurance Holdings, the domestic parent of the International Insurance subsidiaries, which is attributable to Prudential Holdings of Japan, Inc. (“PHJ”), the parent of the Company’s Japanese operations. During 2016, PHJ received a total of ¥98.3 billion , or $842 million at year-end 2016 foreign currency exchange rates, from its subsidiaries, of which a portion was sent to Prudential Financial, as noted above and $450 million was retained at PHJ but remains available to be paid as a dividend to Prudential Financial. The current regulatory fiscal year end for both Prudential of Japan and Gibraltar Life is March 31, 2017, after which time the common stock dividend amount permitted to be paid without prior approval from the FSA can be determined. In addition, although prior regulatory approval may not be required by law for the payment of dividends up to the limitations described above, in practice, the Company would typically discuss any dividend payments with the applicable regulatory authority prior to payment. Additionally, the payment of dividends by the Company’s subsidiaries is subject to declaration by their Board of Directors and may be affected by market conditions and other factors. Statutory Net Income, Capital and Surplus The Company’s domestic insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. Statutory net income (loss) of Prudential Insurance amounted to $5,214 million , $5,253 million and $901 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Statutory capital and surplus of Prudential Insurance amounted to $11,290 million and $11,543 million at December 31, 2016 and 2015 , respectively. Statutory net income (loss) of PALAC amounted to $(2,018) million , $340 million and $393 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Statutory capital and surplus of PALAC amounted to $5,718 million and $482 million at December 31, 2016 and 2015 , respectively. The risk-based capital (“RBC”) ratio is a primary measure by which the Company and its insurance regulators evaluate the capital adequacy of Prudential Insurance and the Company’s other domestic insurance subsidiaries. RBC is determined by NAIC-prescribed formulas that consider, among other things, risks related to the type and quality of the invested assets, insurance-related risks associated with an insurer’s products and liabilities, interest rate risks and general business risks. If a subsidiary’s Total Adjusted Capital (“TAC”), as calculated in a manner prescribed by the NAIC, falls below the Company Action Level RBC, corrective action is required . As of December 31, 2016 , Prudential Insurance and PALAC both had TAC levels in excess of 4.0 times the regulatory required minimums that would require corrective action. The Company’s international insurance subsidiaries prepare financial statements in accordance with local regulatory requirements. These statutory accounting practices differ from U.S. GAAP primarily by charging policy acquisition costs to expense as incurred and establishing future policy benefit liabilities using different actuarial assumptions, as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. The FSA utilizes a solvency margin ratio to evaluate the capital adequacy of Japanese insurance companies. The solvency margin ratio considers the level of solvency margin capital to a solvency margin risk amount, which is calculated in a similar manner to RBC. As of December 31, 2016 , Prudential of Japan and Gibraltar Life both had solvency margin capital in excess of 3.5 times the regulatory required minimums that would require corrective action. All of the Company’s domestic and international insurance subsidiaries have capital and surplus levels that exceed their respective regulatory minimum requirements, and none utilized prescribed or permitted practices that vary materially from the practices prescribed by the NAIC or equivalent regulatory bodies for results reported as of December 31, 2016 and 2015 , respectively, or for the years ended December 31, 2016 , 2015 and 2014 , respectively. Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of “Accumulated other comprehensive income (loss) attributable to Prudential Financial, Inc.” for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) Total Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2013 $ (113 ) $ 10,344 $ (1,550 ) $ 8,681 Change in OCI before reclassifications (1,066 ) 15,490 (1,134 ) 13,290 Amounts reclassified from AOCI (3 ) (1,760 ) 91 (1,672 ) Income tax benefit (expense) 207 (4,823 ) 367 (4,249 ) Balance, December 31, 2014 (975 ) 19,251 (2,226 ) 16,050 Change in OCI before reclassifications (245 ) (3,161 ) (457 ) (3,863 ) Amounts reclassified from AOCI 17 (2,325 ) 193 (2,115 ) Income tax benefit (expense) 116 2,008 89 2,213 Balance, December 31, 2015 (1,087 ) 15,773 (2,401 ) 12,285 Change in OCI before reclassifications 199 5,176 (468 ) 4,907 Amounts reclassified from AOCI 13 (1,493 ) 214 (1,266 ) Income tax benefit (expense) (98 ) (1,285 ) 78 (1,305 ) Balance, December 31, 2016 $ (973 ) $ 18,171 $ (2,577 ) $ 14,621 __________ (1) Includes cash flow hedges of $1,316 million , $1,165 million and $206 million as of December 31, 2016 , 2015 , and 2014 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Years Ended December 31, Affected line item in Consolidated Statements of Operations 2016 2015 2014 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustment $ (13 ) $ (8 ) $ 3 Realized investment gains (losses), net Foreign currency translation adjustment 0 (9 ) 0 Other income Total foreign currency translation adjustment (13 ) (17 ) 3 Net unrealized investment gains (losses): Cash flow hedges—Interest Rate (5 ) (7 ) (60 ) (3) Cash flow hedges—Currency/Interest rate 456 247 114 (3) Net unrealized investment gains (losses) on available-for-sale securities 1,042 2,085 1,706 Total net unrealized investment gains (losses) 1,493 2,325 1,760 (4) Amortization of defined benefit items: Prior service cost 8 13 20 (5) Actuarial gain (loss) (222 ) (206 ) (111 ) (5) Total amortization of defined benefit items (214 ) (193 ) (91 ) Total reclassifications for the period $ 1,266 $ 2,115 $ 1,672 __________ (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 21 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ dividends. (5) See Note 18 for information on employee benefit plans. Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on securities classified as available-for-sale and certain other long-term investments and other assets are included in the Company’s Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments DAC, DSI, and VOBA Future Policy Benefits and Policyholders’ Account Balances Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2013 $ 110 $ (5 ) $ 4 $ 64 $ (60 ) $ 113 Net investment gains (losses) on investments arising during the period 196 (69 ) 127 Reclassification adjustment for (gains) losses included in net income 47 (16 ) 31 Reclassification adjustment for OTTI losses excluded from net income(1) (4 ) 1 (3 ) Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA (1 ) 0 (1 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances (1 ) 0 (1 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (96 ) 34 (62 ) Balance, December 31, 2014 349 (6 ) 3 (32 ) (110 ) 204 Net investment gains (losses) on investments arising during the period (3 ) 1 (2 ) Reclassification adjustment for (gains) losses included in net income (97 ) 35 (62 ) Reclassification adjustment for OTTI losses excluded from net income(1) (15 ) 5 (10 ) Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA 12 (4 ) 8 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances 11 (4 ) 7 Impact of net unrealized investment (gains) losses on policyholders’ dividends 1 0 1 Balance, December 31, 2015 234 6 14 (31 ) (77 ) 146 Net investment gains (losses) on investments arising during the period 93 (31 ) 62 Reclassification adjustment for (gains) losses included in net income 1 0 1 Reclassification adjustment for OTTI losses excluded from net income(1) (16 ) 5 (11 ) Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA (11 ) 3 (8 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances (20 ) (3 ) (23 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (16 ) 6 (10 ) Balance, December 31, 2016 $ 312 $ (5 ) $ (6 ) $ (47 ) $ (97 ) $ 157 __________ (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized DAC, DSI, Future Policy Policyholders’ Deferred Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2013 $ 20,494 $ (719 ) $ (679 ) $ (3,694 ) $ (5,171 ) $ 10,231 Net investment gains (losses) on investments arising during the period 18,073 (6,337 ) 11,736 Reclassification adjustment for (gains) losses included in net income (1,807 ) 632 (1,175 ) Reclassification adjustment for OTTI losses excluded from net income(2) 4 (1 ) 3 Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA (736 ) 254 (482 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances (603 ) 211 (392 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (1,342 ) 468 (874 ) Balance, December 31, 2014 36,764 (1,455 ) (1,282 ) (5,036 ) (9,944 ) 19,047 Net investment gains (losses) on investments arising during the period (6,311 ) 2,268 (4,043 ) Reclassification adjustment for (gains) losses included in net income (2,228 ) 801 (1,427 ) Reclassification adjustment for OTTI losses excluded from net income(2) 15 (5 ) 10 Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA 695 (240 ) 455 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances 200 (67 ) 133 Impact of net unrealized investment (gains) losses on policyholders’ dividends 2,234 (782 ) 1,452 Balance, December 31, 2015 28,240 (760 ) (1,082 ) (2,802 ) (7,969 ) 15,627 Net investment gains (losses) on investments arising during the period 5,658 (1,910 ) 3,748 Reclassification adjustment for (gains) losses included in net income (1,494 ) 504 (990 ) Reclassification adjustment for OTTI losses excluded from net income(2) 16 (5 ) 11 Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA (296 ) 93 (203 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances (54 ) (9 ) (63 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (178 ) 62 (116 ) Balance, December 31, 2016 $ 32,420 $ (1,056 ) $ (1,136 ) $ (2,980 ) $ (9,234 ) $ 18,014 __________ (1) Includes cash flow hedges. See Note 21 for information on cash flow hedges. (2) Represents “transfers out” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE From demutualization through December 31, 2014 , the Company had two separate classes of common stock. The Common Stock reflected the performance of the Company’s former Financial Services Businesses and the Class B Stock reflected the performance of the Company’s former Closed Block Business. Earnings per share were calculated separately for each of these two classes of common stock and included a direct equity adjustment to modify the earnings available to each of the classes of common stock for the difference between the allocation of general and administrative expenses to each of the businesses and the cash flows between the businesses related to these expenses. Accordingly, earnings per share of Common Stock presented below for the year ended December 31, 2014 , reflect earnings attributable to the former Financial Services Businesses. As discussed in Note 1, on January 2, 2015, Prudential Financial repurchased and canceled all of the 2.0 million shares of the Class B Stock. Accordingly, earnings per share of Common Stock presented below for the years ended December 31, 2015 and 2016, reflect the consolidated earnings of Prudential Financial. In addition, the Class B Repurchase resulted in the elimination of the separation of the former Financial Services Businesses and Closed Block Business. As a result, there were no direct equity adjustments recorded for the years ended December 31, 2016 and 2015. Earnings per share of the Class B Stock for the year ended December 31, 2014 is not presented herein as it is not meaningful due to the Class B Repurchase. A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the years ended December 31, 2016 and 2015, is as follows: 2016 2015 Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount (in millions, except per share amounts) Basic earnings per share Income (loss) from continuing operations $ 4,419 $ 5,712 Less: Income (loss) attributable to noncontrolling interests 51 70 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 50 55 Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock $ 4,318 438.2 $ 9.85 $ 5,587 451.7 $ 12.37 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 50 $ 55 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 49 54 Stock options 1.8 2.3 Deferred and long-term compensation programs 0.9 0.9 Exchangeable Surplus Notes 17 5.7 17 5.5 Diluted earnings per share Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock $ 4,336 446.6 $ 9.71 $ 5,605 460.4 $ 12.17 A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on earnings attributable to the former Financial Services Businesses for the year ended December 31, 2014, is as follows: 2014 Income Weighted Average Shares Per Share Amount (in millions, except per share amounts) Basic earnings per share Income (loss) from continuing operations attributable to the Financial Services Businesses $ 1,579 Direct equity adjustment (27 ) Less: Income (loss) attributable to noncontrolling interests 57 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 14 Income (loss) from continuing operations attributable to the Financial Services Businesses available to holders of Common Stock after direct equity adjustment $ 1,481 458.5 $ 3.23 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 14 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 14 Stock options 3.0 Deferred and long-term compensation programs 0.8 Exchangeable Surplus Notes 17 5.4 Diluted earnings per share Income (loss) from continuing operations attributable to the Financial Services Businesses available to holders of Common Stock after direct equity adjustment $ 1,498 467.7 $ 3.20 Unvested share-based payment awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to Prudential Financial are allocated between Common Stock and the participating awards, as if the awards were a second class of stock. During periods of income from continuing operations available to holders of Common Stock, after direct equity adjustment as applicable, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of loss from continuing operations available to holders of Common Stock, after direct equity adjustment as applicable, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. Undistributed earnings allocated to participating unvested share-based payment awards for the years ended December 31, 2016 , 2015 and 2014 were based on 5.1 million , 4.4 million and 4.3 million of such awards, respectively, weighted for the period they were outstanding. Stock options and shares related to deferred and long-term compensation programs that are considered antidilutive are excluded from the computation of dilutive earnings per share. Stock options are considered antidilutive based on application of the treasury stock method or in the event of loss from continuing operations available to holders of Common Stock, after direct equity adjustment as applicable. Shares related to deferred and long-term compensation programs are considered antidilutive in the event of loss from continuing operations available to holders of Common Stock, after direct equity adjustment as applicable. For the years ended December 31, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows: 2016 2015 2014 Shares Exercise Price Per Share Shares Exercise Price Per Share Shares Exercise Price Per Share (in millions, except per share amounts, based on weighted average) Antidilutive stock options based on application of the treasury stock method 2.7 $ 83.97 2.4 $ 87.97 1.9 $ 90.30 Antidilutive stock options due to loss from continuing operations available to holders of Common Stock after direct equity adjustment 0.0 0.0 0.0 Antidilutive shares due to loss from continuing operations available to holders of Common Stock after direct equity adjustment 0.0 0.0 0.0 Total antidilutive stock options and shares 2.7 2.4 1.9 In September 2009, the Company issued $500 million of surplus notes with an interest rate of 5.36% per annum which are exchangeable at the option of the note holders for shares of Common Stock. The initial exchange rate for the surplus notes was 10.1235 shares of Common Stock per each $1,000 principal amount of surplus notes, which represents an initial exchange price per share of Common Stock of $98.78 ; however, the exchange rate is subject to customary anti-dilution adjustments. In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued assuming a hypothetical exchange, weighted for the period the notes are outstanding, are added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | SHARE-BASED PAYMENTS Omnibus Incentive Plan Prudential Financial, Inc.’s omnibus incentive plans provide stock-based awards including stock options, stock appreciation rights, restricted stock shares, restricted stock units, stock settled performance shares, and cash settled performance units. Dividend equivalents are generally provided on restricted stock shares and restricted stock units outstanding as of the record date. Dividend equivalents are generally accrued on target performance shares and units outstanding as of the record date. These dividend equivalents are paid only on the shares and units released up to a maximum of the target number of shares and units awarded. Generally, the requisite service period is the vesting period. There were 26,157,173 authorized shares available for grant under the 2016 Omnibus Plan as of December 31, 2016 . Compensation Costs Compensation cost for employee stock options is based on the fair values estimated on the grant date, using the approach and assumptions described below. Compensation cost for restricted stock units, performance shares and performance units granted to employees is measured by the share price of the underlying Common Stock at the date of grant. The fair value of each stock option award is estimated using a binomial option pricing model on the date of grant for stock options issued to employees. The weighted average grant date assumptions used in the binomial option valuation model are as follows: 2016 2015 2014 Expected volatility 38.36 % 34.67 % 35.52 % Expected dividend yield 3.92 % 3.00 % 2.70 % Expected term 5.61 years 5.57 years 5.63 years Risk-free interest rate 1.25 % 1.61 % 1.74 % Expected volatilities are based on historical volatility of the Company’s Common Stock and implied volatilities from traded options on the Company’s Common Stock. The Company uses historical data and expectations of future exercise patterns to estimate option exercises and employee terminations within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods associated with the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following chart summarizes the compensation cost recognized and the related income tax benefit for stock options, restricted stock units, performance shares and performance units for the years ended December 31: 2016 2015 2014 Total Compensation Cost Recognized Income Tax Benefit Total Compensation Cost Recognized Income Tax Benefit Total Compensation Cost Recognized Income Tax Benefit (in millions) Employee stock options $ 19 $ 7 $ 21 $ 8 $ 25 $ 9 Employee restricted stock units 126 47 111 42 95 34 Employee performance shares and performance units 57 21 32 12 46 17 Total $ 202 $ 75 $ 164 $ 62 $ 166 $ 60 Compensation costs related to stock-based compensation plans capitalized in deferred acquisition costs for the years ended December 31, 2016 , 2015 and 2014 were de minimis. Stock Options Each stock option granted has an exercise price no less than the fair market value of the Company’s Common Stock on the date of grant and has a maximum term of 10 years . Generally, one third of the option grant vests in each of the first three years. A summary of the status of the Company’s stock option grants is as follows: Employee Stock Options Shares Weighted Average Exercise Price Outstanding at December 31, 2015 10,926,146 $ 66.18 Granted 1,219,714 63.73 Exercised (4,986,622 ) 68.03 Forfeited (49,299 ) 73.24 Expired (371,137 ) 80.48 Outstanding at December 31, 2016 6,738,802 $ 63.53 Vested and expected to vest at December 31, 2016 6,693,811 $ 63.51 Exercisable at December 31, 2016 4,720,572 $ 60.66 The weighted average grant date fair value of employee stock options granted during the years ended December 31, 2016 , 2015 and 2014 was $14.81 , $18.45 and $21.65 , respectively. The total intrinsic value (i.e., market price of the stock less the option exercise price) of employee stock options exercised during the years ended December 31, 2016 , 2015 and 2014 was $120 million , $49 million , and $97 million , respectively. The weighted average remaining contractual term and the aggregate intrinsic value of stock options outstanding, vested and expected to vest and exercisable as of December 31, 2016 is as follows: December 31, 2016 Employee Stock Options Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in millions) Outstanding 5.64 $ 273 Vested and expected to vest 5.62 $ 271 Exercisable 4.50 $ 205 Restricted Stock Units, Performance Share Awards and Performance Unit Awards A restricted stock unit is an unfunded, unsecured right to receive a share of the Company’s Common Stock at the end of a specified period of time, which is subject to forfeiture and transfer restrictions. Generally, the restrictions will lapse on the third anniversary of the date of grant. Performance shares and performance units are awards denominated in the Company’s Common Stock. The number of units is determined over the performance period, and may be adjusted based on the satisfaction of certain performance goals for the Company. Performance share awards are payable in the Company’s Common Stock. Performance unit awards are payable in cash. A summary of the Company’s restricted stock units and performance shares and performance unit awards is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Performance Share and Performance Unit Awards(1) Weighted Average Grant Date Fair Value Restricted at December 31, 2015(2) 4,354,286 $ 73.50 1,390,497 $ 81.41 Granted(2) 2,187,653 64.12 694,501 104.06 Forfeited (110,815 ) 72.13 (41,676 ) 76.73 Performance adjustment(3) 188,838 63.59 Released (1,451,417 ) 58.54 (568,487 ) 63.71 Restricted at December 31, 2016(2) 4,979,707 $ 73.77 1,663,673 $ 104.06 __________ (1) Performance share and performance unit awards reflect the target units awarded, reduced for forfeitures and releases to date. The actual number of units to be awarded at the end of each performance period will range between 0% and 125% of the target number of units granted, based upon a measure of the reported performance for the Company relative to stated goals. (2) For performance share and performance unit awards, the grant date is the same as the date the grant vests. The features of the grant are such that a mutual understanding of the key terms and conditions of the award between the employee and employer have not been reached until the grant is vested. Consequently, the weighted average grant date fair value as of December 31, 2016 and December 31, 2015 is the closing stock price of Prudential Financial’s common stock on those dates. (3) Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company. The fair market value of restricted stock units, performance shares and performance units released for the years ended December 31, 2016 , 2015 and 2014 was $128 million , $162 million and $145 million , respectively. The weighted average grant date fair value for restricted stock units granted during the years ended December 31, 2016 , 2015 and 2014 was $64.12 , $78.40 and $84.56 , respectively. The weighted average grant date fair value for performance shares and performance units granted during the years ended December 31, 2016 , 2015 and 2014 was $104.06 , $81.41 and $90.46 , respectively. The number of restricted stock units, performance shares and performance units expected to vest at December 31, 2016 was 5,994,809 . Unrecognized Compensation Cost Unrecognized compensation cost for stock options as of December 31, 2016 was $4 million with a weighted average recognition period of 1.70 years . Unrecognized compensation cost for restricted stock units, performance shares and performance units as of December 31, 2016 was $113 million with a weighted average recognition period of 1.69 years . Tax Benefits Realized The tax benefit realized for exercises of stock options during the years ended December 31, 2016 , 2015 and 2014 was $41 million , $20 million and $35 million , respectively. The tax benefit realized upon vesting of restricted stock units, performance shares and performance units for the years ended December 31, 2016 , 2015 and 2014 was $46 million , $58 million and $51 million , respectively. Settlement of Awards The Company’s policy is to issue shares from Common Stock held in treasury upon exercise of stock options, the release of restricted stock units and performance shares. The Company uses cash to settle performance units. The amount of cash used to settle performance units during the years ended December, 31, 2016 , 2015 and 2014 was $18 million , $21 million and $15 million , respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Pension and Other Postretirement Plans The Company has funded and non-funded non-contributory defined benefit pension plans, which cover substantially all of its employees. For some employees, benefits are based on final average earnings and length of service, while benefits for other employees are based on an account balance that takes into consideration age, service and earnings during their career. The Company provides certain health care and life insurance benefits for its retired employees, their beneficiaries and covered dependents (“other postretirement benefits”). The health care plan is contributory; the life insurance plan is non-contributory. Substantially all of the Company’s U.S. employees may become eligible to receive other postretirement benefits if they retire after age 55 with at least 10 years of service or under certain circumstances after age 50 with at least 20 years of continuous service. Prepaid benefits costs and accrued benefit liabilities are included in “Other assets” and “Other liabilities,” respectively, in the Company’s Consolidated Statements of Financial Position. The status of these plans as of December 31, 2016 and 2015 is summarized below: Pension Benefits Other Postretirement Benefits 2016 2015 2016 2015 (in millions) Change in benefit obligation Benefit obligation at the beginning of period $ (12,221 ) $ (12,545 ) $ (2,159 ) $ (2,233 ) Service cost (253 ) (244 ) (19 ) (20 ) Interest cost (498 ) (469 ) (91 ) (86 ) Plan participants’ contributions 0 0 (31 ) (29 ) Medicare Part D subsidy receipts 0 0 (10 ) (12 ) Amendments (3 ) 0 0 (2 ) Actuarial gains (losses), net (602 ) 335 46 43 Settlements 24 22 0 0 Special termination benefits (2 ) (4 ) 0 0 Benefits paid 681 632 181 176 Foreign currency changes and other (43 ) 52 (1 ) 4 Benefit obligation at end of period $ (12,917 ) $ (12,221 ) $ (2,084 ) $ (2,159 ) Change in plan assets Fair value of plan assets at beginning of period $ 12,541 $ 13,028 $ 1,584 $ 1,717 Actual return on plan assets 883 35 82 9 Employer contributions 187 162 15 5 Plan participants’ contributions 0 0 31 29 Disbursement for settlements (24 ) (22 ) 0 0 Benefits paid (681 ) (632 ) (181 ) (176 ) Foreign currency changes and other (45 ) (30 ) 0 0 Fair value of plan assets at end of period $ 12,861 $ 12,541 $ 1,531 $ 1,584 Funded status at end of period $ (56 ) $ 320 $ (553 ) $ (575 ) Amounts recognized in the Statements of Financial Position Prepaid benefit cost $ 2,538 $ 2,687 $ 0 $ 0 Accrued benefit liability (2,594 ) (2,367 ) (553 ) (575 ) Net amount recognized $ (56 ) $ 320 $ (553 ) $ (575 ) Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost: Transition obligation $ 0 $ 0 $ 0 $ 0 Prior service cost (25 ) (33 ) 1 (1 ) Net actuarial loss 3,481 3,173 557 621 Net amount not recognized $ 3,456 $ 3,140 $ 558 $ 620 Accumulated benefit obligation $ (12,300 ) $ (11,607 ) $ (2,084 ) $ (2,159 ) In addition to the plan assets above, the Company in 2007 established an irrevocable trust, commonly referred to as a “rabbi trust,” for the purpose of holding assets of the Company to be used to satisfy its obligations with respect to certain non-qualified retirement plans ( $1,227 million and $1,175 million benefit obligation at December 31, 2016 and 2015 , respectively). Assets held in the rabbi trust are available to the general creditors of the Company in the event of insolvency or bankruptcy. The Company may from time to time in its discretion make contributions to the trust to fund accrued benefits payable to participants in one or more of the plans, and, in the case of a change in control of the Company, as defined in the trust agreement, the Company will be required to make contributions to the trust to fund the accrued benefits, vested and unvested, payable on a pretax basis to participants in the plans. The Company did not make any discretionary payments to the trust in 2016 and made a discretionary payment of $95 million in 2015 . As of December 31, 2016 and 2015 , the assets in the trust had a carrying value of $829 million and $722 million , respectively. The Company also maintains a separate rabbi trust for the purpose of holding assets of the Company to be used to satisfy its obligations with respect to certain other non-qualified retirement plans ( $81 million and $78 million benefit obligation at December 31, 2016 and 2015 , respectively), as well as certain cash-based deferred compensation arrangements. As of December 31, 2016 and 2015 , the assets in the trust had a carrying value of $115 million and $118 million , respectively. Pension benefits for foreign plans comprised 14% and 13% of the ending benefit obligation for 2016 and 2015 , respectively. Foreign pension plans comprised 5% of the ending fair value of plan assets for both 2016 and 2015 . There are no material foreign postretirement plans. Information for pension plans with a projected benefit obligation in excess of plan assets 2016 2015 (in millions) Projected benefit obligation $ 2,638 $ 2,403 Fair value of plan assets $ 44 $ 36 Information for pension plans with an accumulated benefit obligation in excess of plan assets 2016 2015 (in millions) Accumulated benefit obligation $ 2,426 $ 2,154 Fair value of plan assets $ 4 $ 5 There were no purchases of annuity contracts in 2016 and 2015 from Prudential Insurance. The approximate future annual benefit payment payable by Prudential Insurance for all annuity contracts was $19 million and $20 million as of December 31, 2016 and 2015 , respectively. Components of Net Periodic Benefit Cost The Company uses market related value to determine components of net periodic (benefit) cost. Market related value recognizes certain changes in fair value of plan assets over a period of five years. Changes in the fair value of U.S. equities, international equities, real estate and other assets are recognized over a five year period. However, changes in the fair value for fixed maturity assets (including short-term investments) are recognized immediately for the purposes of market related value. Net periodic (benefit) cost included in “General and administrative expenses” in the Company’s Consolidated Statements of Operations for the years ended December 31, includes the following components: Pension Benefits Other Postretirement Benefits 2016 2015 2014 2016 2015 2014 (in millions) Service cost $ 253 $ 244 $ 234 $ 19 $ 20 $ 17 Interest cost 498 469 481 91 86 96 Expected return on plan assets (754 ) (775 ) (712 ) (105 ) (115 ) (116 ) Amortization of transition obligation 0 0 0 0 0 0 Amortization of prior service cost (6 ) (8 ) (10 ) (2 ) (5 ) (10 ) Amortization of actuarial (gain) loss, net 181 168 86 41 38 25 Settlements 7 5 10 0 0 0 Special termination benefits(1) 2 4 4 0 0 0 Net periodic (benefit) cost $ 181 $ 107 $ 93 $ 44 $ 24 $ 12 __________ (1) Certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination. Changes in Accumulated Other Comprehensive Income The benefit obligation is based upon actuarial assumptions such as discount, termination, retirement, mortality and salary growth rates. Changes at year-end in these actuarial assumptions, along with experience changes based on updated participant census data are deferred in AOCI. Plan assets generate actuarial gains and losses when actual returns on plan assets differ from expected returns on plan assets, and these differences are also deferred in AOCI. The cumulative deferred gain (loss) within AOCI is amortized into earnings if it exceeds 10% of the greater of the benefit obligation or plan assets at the beginning of the year, and the amortization period is based upon the actuarially calculated expected future years of service for a given plan. The amounts recorded in AOCI as of the end of the period, which have not yet been recognized as a component of net periodic (benefit) cost, and the related changes in these items during the period that are recognized in “Other comprehensive income (loss)” are as follows: Pension Benefits Other Postretirement Benefits Transition Obligation Prior Service Cost Net Actuarial (Gain) Loss Transition Obligation Prior Service Cost Net Actuarial (Gain) Loss (in millions) Balance, December 31, 2013 $ 0 $ (56 ) $ 2,065 $ 0 $ (19 ) $ 463 Amortization for the period 0 10 (86 ) 0 10 (25 ) Deferrals for the period 0 (1 ) 1,001 0 0 165 Impact of foreign currency changes and other 0 5 (34 ) 0 1 (3 ) Balance, December 31, 2014 0 (42 ) 2,946 0 (8 ) 600 Amortization for the period 0 8 (168 ) 0 5 (38 ) Deferrals for the period 0 0 405 0 2 63 Impact of foreign currency changes and other 0 1 (10 ) 0 0 (4 ) Balance, December 31, 2015 0 (33 ) 3,173 0 (1 ) 621 Amortization for the period 0 6 (181 ) 0 2 (41 ) Deferrals for the period 0 3 473 0 0 (23 ) Impact of foreign currency changes and other 0 (1 ) 16 0 0 0 Balance, December 31, 2016 $ 0 $ (25 ) $ 3,481 $ 0 $ 1 $ 557 The amounts included in AOCI expected to be recognized as components of net periodic (benefit) cost in 2017 are as follows: Pension Benefits Other Postretirement Benefits (in millions) Amortization of prior service cost $ (4 ) $ 0 Amortization of actuarial (gain) loss, net 191 36 Total $ 187 $ 36 The Company’s assumptions related to the calculation of the domestic benefit obligation (end of period) and the determination of net periodic (benefit) cost (beginning of period) are presented in the table below: Pension Benefits Other Postretirement Benefits 2016 2015 2014 2016 2015 2014 Weighted average assumptions Discount rate (beginning of period) 4.50 % 4.10 % 4.95 % 4.35 % 3.95 % 4.75 % Discount rate (end of period) 4.15 % 4.50 % 4.10 % 4.05 % 4.35 % 3.95 % Rate of increase in compensation levels (beginning of period) 4.50 % 4.50 % 4.50 % N/A N/A N/A Rate of increase in compensation levels (end of period) 4.50 % 4.50 % 4.50 % N/A N/A N/A Expected return on plan assets (beginning of period) 6.25 % 6.25 % 6.25 % 7.00 % 7.00 % 7.00 % Health care cost trend rates (beginning of period) N/A N/A N/A 7.00 % 6.66 % 7.08 % Health care cost trend rates (end of period) N/A N/A N/A 6.60 % 7.00 % 6.66 % For 2016, 2015 and 2014, the ultimate health care cost trend rate after gradual decrease until: 2019, 2019, 2019, (beginning of period) N/A N/A N/A 5.00 % 5.00 % 5.00 % For 2016, 2015 and 2014, the ultimate health care cost trend rate after gradual decrease until: 2021, 2021, 2019 (end of period) N/A N/A N/A 5.00 % 5.00 % 5.00 % The domestic discount rate used to value the pension and postretirement obligations at December 31, 2016 and December 31, 2015 is based upon the value of a portfolio of Aa-rated investments whose cash flows would be available to pay the benefit obligation’s cash flows when due. The December 31, 2016 portfolio is selected from a compilation of approximately 720 Aa-rated bonds across the full range of maturities. Since yields can vary widely at each maturity point, the Company generally avoids using the highest and lowest yielding bonds at the maturity points, so as to avoid relying on bonds that might be mispriced or misrated. This refinement process generally results in having a distribution from the 10th to 90th percentile. The Aa-rated portfolio is then selected and, accordingly, its value is a measure of the benefit obligation. A single equivalent discount rate is calculated to equate the value of the Aa-rated portfolio to the cash flows for the benefit obligation. The result is rounded to the nearest 5 basis points and the benefit obligation is recalculated using the rounded discount rate. The pension and postretirement expected long-term rates of return on plan assets for 2016 were determined based upon an approach that considered the allocation of plan assets as of December 31, 2015. Expected returns are estimated by asset class as noted in the discussion of investment policies and strategies below. Expected returns on asset classes are developed using a building-block approach that is forward looking and are not strictly based upon historical returns. The building blocks for equity returns include inflation, real return, a term premium, an equity risk premium, capital appreciation, effect of active management, expenses and the effect of rebalancing. The building blocks for fixed maturity returns include inflation, real return, a term premium, credit spread, capital appreciation, effect of active management, expenses and the effect of rebalancing. The Company applied the same approach to the determination of the expected rate of return on plan assets in 2017 . The expected rate of return for 2017 is 6.25% and 7.00% for pension and postretirement, respectively. The assumptions for foreign pension plans are based on local markets. There are no material foreign postretirement plans. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects: Other Postretirement Benefits (in millions) One percentage point increase Increase in total service and interest costs $ 7 Increase in postretirement benefit obligation 158 One percentage point decrease Decrease in total service and interest costs $ 6 Decrease in postretirement benefit obligation 106 Plan Assets The investment goal of the domestic pension plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds and other investments. The cash requirements of the pension obligation, which include a traditional formula principally representing payments to annuitants and a cash balance formula that allows lump sum payments and annuity payments, are designed to be met by the bonds and short-term investments in the portfolio. The pension plan risk management practices include guidelines for asset concentration, credit rating and liquidity. The pension plan does not invest in leveraged derivatives. Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps and futures are used to adjust duration. The investment goal of the domestic postretirement plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds, and other investments, while meeting the cash requirements for the postretirement obligation that includes a medical benefit including prescription drugs, a dental benefit and a life benefit. The postretirement plan risk management practices include guidelines for asset concentration, credit rating, liquidity and tax efficiency. The postretirement plan does not invest in leveraged derivatives. Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps and futures are used to adjust duration. The plan fiduciaries for the Company’s pension and postretirement plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis. Asset allocation targets as of December 31, 2016 are as follows: Pension Postretirement Minimum Maximum Minimum Maximum Asset Category U.S. Equities 2 % 16 % 27 % 60 % International Equities 2 % 16 % 2 % 23 % Fixed Maturities 50 % 68 % 4 % 50 % Short-term Investments 0 % 15 % 0 % 42 % Real Estate 2 % 16 % 0 % 0 % Other 0 % 16 % 0 % 0 % To implement the investment strategy, plan assets are invested in funds that primarily invest in securities that correspond to one of the asset categories under the investment guidelines. However, at any point in time, some of the assets in a fund may be of a different nature than the specified asset category. Assets held with Prudential Insurance are in either pooled separate accounts or single client separate accounts. Pooled separate accounts hold assets for multiple investors. Each investor owns a “unit of account.” Single client separate accounts hold assets for only one investor, the domestic qualified pension plan, and each security in the fund is treated as individually owned. Assets held with a bank are either in common/collective trusts or single client trusts. Common or collective trusts hold assets for more than one investor. Each investor owns a “unit of account.” Single client trusts hold assets for only one investor, the domestic qualified pension plan, and each security in the fund is treated as individually owned. There were no investments in Prudential Financial Common Stock as of December 31, 2016 and December 31, 2015 for either the pension or postretirement plans. The authoritative guidance around fair value established a framework for measuring fair value. Fair value is disclosed using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as described in Note 20. The following describes the valuation methodologies used for pension and postretirement plans assets measured at fair value. Insurance Company Pooled Separate Accounts, Common or Collective Trusts, and United Kingdom Insurance Pooled Funds —Insurance company pooled separate accounts are invested via group annuity contracts issued by Prudential Insurance. Assets are represented by a “unit of account.” The redemption value of those units is based on a per unit value whose value is the result of the accumulated values of underlying investments. The underlying investments are valued in accordance with the corresponding valuation method for the investments held. Equities —See Note 20 for a discussion of the valuation methodologies for equity securities. U.S. Government Securities (both Federal and State & Other), Non–U.S. Government Securities , and Corporate Debt —See Note 20 for a discussion of the valuation methodologies for fixed maturity securities. Interest Rate Swaps —See Note 20 for a discussion of the valuation methodologies for derivative instruments. Guaranteed Investment Contracts —The value is based on contract cash flows and available market rates for similar investments. Registered Investment Companies (Mutual Funds) —Securities are priced at the net asset value (“NAV”) of shares. Unrealized Gain (Loss) on Investment of Securities Lending Collateral —This value is the contractual position relative to the investment of securities lending collateral. Real Estate —The values are determined through an independent appraisal process. The estimate of fair value is based on three approaches; (1) current cost of reproducing the property less deterioration and functional/economic obsolescence; (2) discounting a series of income streams and reversion at a specific yield or by directly capitalizing a single year income estimate by an appropriate factor; and (3) value indicated by recent sales of comparable properties in the market. Each approach requires the exercise of subjective judgment. Short-term Investments —Securities are valued initially at cost and thereafter adjusted for amortization of any discount or premium (i.e., amortized cost). Amortized cost approximates fair value. Partnerships —The value of interests owned in partnerships is based on valuations of the underlying investments that include private placements, structured debt, real estate, equities, fixed maturities, commodities and other investments. Private equity and real estate partnerships do not provide redemption rights to their investors, and there is not a public market for these investments. The Plan’s ability to redeem its investments at the end of the partnership term will depend on the ability of the fund manager to liquidate the illiquid private equity or real estate holdings. These funds are established with expected terms ranging from seven to fifteen years, with an option to extend the liquidation period for additional terms of up to two years. Hedge Funds —The value of interests in hedge funds is based on the underlying investments that include equities, debt and other investments. Hedge fund investments are structured as fund-of-funds vehicles or as direct investments in various hedge funds. The fund-of-funds vehicles are used for the purpose of making investments in a diverse portfolio of smaller hedge funds, while the direct investments allow for larger targeted investments without the additional fees inherent in a fund-of-funds structure. The hedge fund investments may be subject to initial period lock-up restrictions, under which capital must remain invested for a minimum period, ranging from one to two years. At December 31, 2016 and 2015, substantially none of the funds were in their initial lock-up period. Following the expiration of a fund’s lock-up period, redemptions are permitted quarterly, semi-annually or annually, with advance written notice from 65 to 185 days, depending on the fund. However, redemptions from hedge funds and fund-of-funds may also be restricted by a maximum redemption limitation on any redemption payment date, generally stated as a percentage of the total fund assets or total investment by the redeeming investor; payments of redemptions in excess of that “gate” amount are deferred. The Plan’s hedge fund investments include “gate” limits of 20% to 25% of the hedge fund’s net assets, depending on the fund. Variable Life Insurance Policies —These assets are held in group and individual variable life insurance policies issued by Prudential Insurance. Group policies are invested in Insurance Company Pooled Separate Accounts. Individual policies are invested in Registered Investment Companies (Mutual Funds). The value of interest in these policies is the cash surrender value of the policies based on the underlying investments. Pension plan asset allocations in accordance with the investment guidelines are as follows: As of December 31, 2016 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Pooled separate accounts(1) $ 0 $ 472 $ 0 $ 0 $ 472 Common/collective trusts(1) 0 66 0 0 66 Subtotal 538 International Equities: Pooled separate accounts(2) 0 269 0 0 269 Common/collective trusts(3) 0 219 0 0 219 United Kingdom insurance pooled funds(4) 0 49 0 0 49 Subtotal 537 Fixed Maturities: Pooled separate accounts(5) 0 1,247 36 0 1,283 Common/collective trusts(6) 0 441 0 0 441 U.S. government securities (federal): Mortgage-backed 0 1 0 0 1 Other U.S. government securities 0 993 0 0 993 U.S. government securities (state & other) 0 521 0 0 521 Non-U.S. government securities 0 14 0 0 14 United Kingdom insurance pooled funds(7) 0 305 0 0 305 Corporate Debt: Corporate bonds(8) 0 4,039 0 0 4,039 Asset-backed 0 7 0 0 7 Collateralized Mortgage Obligations(9) 0 506 0 0 506 Interest rate swaps (Notional amount: $2,595) 0 9 0 0 9 Guaranteed investment contract 0 39 0 0 39 Other(10) 533 7 49 0 589 Unrealized gain (loss) on investment of securities lending collateral(11) 0 0 0 0 0 Subtotal 8,747 Short-term Investments: Pooled separate accounts 0 55 0 0 55 United Kingdom insurance pooled funds 0 1 0 0 1 Subtotal 56 Real Estate: Pooled separate accounts(12) 0 0 666 0 666 Partnerships 0 0 0 371 371 Subtotal 1,037 Other: Partnerships 0 0 0 551 551 Hedge funds 0 0 0 1,395 1,395 Subtotal 1,946 Total $ 533 $ 9,260 $ 751 $ 2,317 $ 12,861 As of December 31, 2015 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Pooled separate accounts(1) $ 0 $ 636 $ 0 $ 0 $ 636 Common/collective trusts(1) 0 85 0 0 85 Subtotal 721 International Equities: Pooled separate accounts(2) 0 321 0 0 321 Common/collective trusts(3) 0 229 0 0 229 United Kingdom insurance pooled funds(4) 0 50 0 0 50 Subtotal 600 Fixed Maturities: Pooled separate accounts(5) 0 1,183 35 0 1,218 Common/collective trusts(6) 0 347 0 0 347 U.S. government securities (federal): Mortgage-backed 0 1 0 0 1 Other U.S. government securities 0 661 0 0 661 U.S. government securities (state & other) 0 582 0 0 582 Non-U.S. government securities 0 14 0 0 14 United Kingdom insurance pooled funds(7) 0 293 0 0 293 Corporate Debt: Corporate bonds(8) 0 4,417 0 0 4,417 Asset-backed 0 8 0 0 8 Collateralized Mortgage Obligations(9) 0 109 0 0 109 Interest rate swaps (Notional amount: $2,073) 0 (5 ) 0 0 (5 ) Guaranteed investment contract 0 31 0 0 31 Other(10) 685 2 93 0 780 Unrealized gain (loss) on investment of securities lending collateral(13) 0 0 0 0 0 Subtotal 8,456 Short-term Investments: Pooled separate accounts 0 39 0 0 39 United Kingdom insurance pooled funds 0 0 0 0 0 Subtotal 39 Real Estate: Pooled separate accounts(12) 0 0 607 0 607 Partnerships 0 0 0 347 347 Subtotal 954 Other: Partnerships 0 0 0 481 481 Hedge funds 0 0 0 1,290 1,290 Subtotal 1,771 Total $ 685 $ 9,003 $ 735 $ 2,118 $ 12,541 __________ (1) These categories invest in U.S. equity funds whose objective is to track or outperform various indexes. (2) This category invests in a large cap international equity funds whose objective is to track an index. (3) This category invests in international equity funds, primarily large cap, whose objective is to outperform various indexes. This category also includes a global equity fund, primarily focused on new market leaders with sustainable competitive advantage. (4) This category invests in an international equity fund whose objective is to track an index. (5) This category invests in bond funds, primarily highly rated private placement securities. (6) This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index. (7) This category invests in bond funds, primarily highly rated corporate securities. (8) This category invests in highly rated corporate securities. (9) This category invests in highly rated Collateralized Mortgage Obligations. (10) Primarily cash and cash equivalents, short-term investments, payables and receivables, and open future contract positions (including fixed income collateral). (11) The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $627 million and the liability for securities lending collateral is $627 million . (12) This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index. (13) The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $163 million and the liability for securities lending collateral is $163 million . Changes in Fair Value of Level 3 Pension Assets Year Ended December 31, 2016 Fixed Maturities– Pooled Separate Accounts Fixed Maturities– Other Real Estate– Pooled Separate Accounts (in millions) Fair Value, beginning of period $ 35 $ 93 $ 607 Actual Return on Assets: Relating to assets still held at the reporting date 1 0 61 Relating to assets sold during the period 0 0 6 Purchases, sales and settlements 0 (44 ) (8 ) Transfers in and/or out of Level 3 0 0 0 Fair Value, end of period $ 36 $ 49 $ 666 Year Ended December 31, 2015 Fixed Maturities– Pooled Separate Accounts Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Other Real Estate– Pooled Separate Accounts (in millions) Fair Value, beginning of period $ 35 $ 14 $ 73 $ 465 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 81 Relating to assets sold during the period 0 0 0 2 Purchases, sales and settlements 0 0 20 59 Transfers in and/or out of Level 3(1) 0 (14 ) 0 0 Fair Value, end of period $ 35 $ 0 $ 93 $ 607 __________ (1) The transfers from level 3 to level 2 are due to the availability of external pricing sources. Postretirement plan asset allocations in accordance with the investment guidelines are as follows: As of December 31, 2016 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Variable Life Insurance Policies(1) $ 0 $ 506 $ 0 $ 0 $ 506 Common trusts(2) 0 170 0 0 170 Subtotal 676 International Equities: Variable Life Insurance Policies(3) 0 90 0 0 90 Common trusts(4) 0 96 0 0 96 Subtotal 186 Fixed Maturities: Variable Life Insurance Policies(5) 0 157 0 0 157 Common trusts(5) 0 59 0 0 59 U.S. government securities (federal): Mortgage-Backed 0 0 0 0 0 Other U.S. government securities 0 78 0 0 78 Non-U.S. government securities 0 2 0 0 2 Corporate Debt: Corporate bonds(6) 0 176 0 0 176 Asset-Backed 0 48 1 0 49 Collateralized Mortgage Obligations(7) 0 22 5 0 27 Interest rate swaps (Notional amount: $271) 0 1 0 0 1 Other(8) 1 0 5 0 6 Unrealized gain (loss) on investment of securities lending collateral(9) 0 0 0 0 0 Subtotal 555 Short-term Investments: Registered investment companies 114 0 0 0 114 Subtotal 114 Total $ 115 $ 1,405 $ 11 $ 0 $ 1,531 As of December 31, 2015 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Variable Life Insurance Policies(1) $ 0 $ 592 $ 0 $ 0 $ 592 Common trusts(2) 0 169 0 0 169 Subtotal 761 International Equities: Variable Life Insurance Policies(3) 0 89 0 0 89 Common trusts(4) 0 97 0 0 97 Subtotal 186 Fixed Maturities: Variable Life Insurance Policies(5) 0 59 0 0 59 Common trusts(5) 0 67 0 0 67 U.S. government securities (federal): Mortgage-Backed 0 4 0 0 4 Other U.S. government securities 0 80 0 0 80 Non-U.S. government securities 0 5 0 0 5 Corporate Debt: Corporate bonds(6) 0 204 0 0 204 Asset-Backed 0 53 0 0 53 Collateralized Mortgage Obligations(7) 0 30 0 0 30 Interest rate swaps (Notional amount: $380) 0 0 0 0 0 Other(8) 6 0 3 0 9 Unrealized gain (loss) on investment of securities lending collateral(10) 0 0 0 0 0 Subtotal 511 Short-term Investments: Registered investment companies 126 0 0 0 126 Subtotal 126 Total $ 132 $ 1,449 $ 3 $ 0 $ 1,584 __________ (1) This category invests in U.S. equity funds, primarily large cap equities whose objective is to track an index via pooled separate accounts and registered investment companies. (2) This category invests in U.S. equity funds, primarily large cap equities. (3) This category invests in international equity funds, primarily large cap international equities whose objective is to track an index. (4) This category fund invests in large cap international equity fund whose objective is to outperform an index. (5) This category invests in U.S. government and corporate bond funds. (6) This category invests in highly rated corporate bonds. (7) This category invests in highly rated Collateralized Mortgage Obligations. (8) Cash and cash equivalents, short-term investments, payables and receivables and open future contract positions (including fixed income collateral). (9) In 2016 , the contractual net value of the investment of securities lending collateral and the liability for securities lending collateral is zero. (10) In 2015 , the contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $2 million and the liability for securities lending collateral is $2 million . Changes in Fair Value of Level 3 Postretirement Assets Year Ended December 31, 2016 Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Corporate Debt– Asset- Backed Fixed Maturities– Other (in millions) Fair Value, beginning of period $ 0 $ 0 $ 3 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 Relating to assets sold during the period 0 0 0 Purchases, sales and settlements 1 5 2 Transfers in and/or out of Level 3 0 0 0 Fair Value, end of period $ 1 $ 5 $ 5 Year Ended December 31, 2015 Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Corporate Debt– Asset- Backed Fixed Maturities– Other (in millions) Fair Value, beginning of period $ 1 $ 1 $ (5 ) Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 Relating to assets sold during the period 0 0 0 Purchases, sales and settlements 0 0 8 Transfers in and/or out of Level 3(1) (1 ) (1 ) 0 Fair Value, end of period $ 0 $ 0 $ 3 __________ (1) The transfers from level 3 to level 2 are due to the availability of external pricing sources. A summary of pension and postretirement plan asset allocation as of the year ended December 31, are as follows: Pension Percentage of Plan Assets Postretirement Percentage of Plan Assets 2016 2015 2016 2015 Asset Category U.S. Equities 4 % 6 % 44 % 48 % International Equities 4 5 12 12 Fixed Maturities 68 67 36 32 Short-term Investments 0 0 8 8 Real Estate 8 8 0 0 Other 16 14 0 0 Total 100 % 100 % 100 % 100 % The expected benefit payments for the Company’s pension and postretirement plans, as well as the expected Medicare Part D subsidy receipts related to the Company’s postretirement plan, for the years in |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense (benefit) for the years ended December 31 were as follows: 2016 2015 2014 (in millions) Current tax expense (benefit) U.S. $ 31 $ 738 $ (80 ) State and local 9 3 (7 ) Foreign 595 622 463 Total 635 1,363 376 Deferred tax expense (benefit) U.S. 132 585 880 State and local 5 4 12 Foreign 563 120 (919 ) Total 700 709 (27 ) Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures 1,335 2,072 349 Income tax expense on equity in earnings of operating joint ventures 11 (1 ) (2 ) Income tax expense on discontinued operations 0 0 6 Income tax expense (benefit) reported in equity related to: Other comprehensive income 1,305 (2,213 ) 4,249 Stock-based compensation programs (30 ) (22 ) (29 ) Total income taxes $ 2,621 $ (164 ) $ 4,573 In July 2014, the IRS issued guidance relating to the hedging of variable annuity guaranteed minimum benefits (“Hedging IDD”). The Hedging IDD provides an elective safe harbor tax accounting method for certain contracts which permits the current deduction of losses and the deferral of gains for hedging activities that can be applied to open years under IRS examination beginning with the earliest open year. The Company has applied this tax accounting method for hedging gains and losses covered by the Hedging IDD beginning with 2009. As a result of applying such accounting method, the Company’s 2014 U.S. current tax benefit includes an additional tax benefit of $475 million and a corresponding reduction of deferred tax assets. The Company’s actual income tax expense on continuing operations before equity in earnings of operating joint ventures for the years ended December 31 differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from continuing operations before income taxes and equity in earnings of operating joint ventures for the following reasons: 2016 2015 2014 (in millions) Expected federal income tax expense (benefit) $ 1,997 $ 2,719 $ 616 Non-taxable investment income (352 ) (341 ) (381 ) Foreign taxes at other than U.S. rate (172 ) (51 ) 146 Low-income housing and other tax credits (118 ) (116 ) (127 ) Reversal of acquisition opening balance sheet deferred tax items 0 0 53 Change in repatriation assertion 0 (3 ) 32 Change in tax law: active financing exception 0 (108 ) 0 Other (20 ) (28 ) 10 Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures $ 1,335 $ 2,072 $ 349 The dividends received deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and accounts for most of the non-taxable investment income shown in the table above, and as a result, is a major reason for the difference between the Company’s effective tax rate and the federal statutory tax rate of 35% . The DRD for the current period was estimated using information from 2015 and current year results, and was adjusted to take into account current year’s equity market performance. The actual current year DRD can vary based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. Additionally, there remains the possibility that the IRS and the U.S. Treasury will address, through subsequent guidance, issues related to the calculation of the DRD. For the last several years, the revenue proposals included in the Obama Administration’s budgets included a proposal that would change the method used to determine the amount of the DRD. A change in the DRD, including the possible retroactive or prospective elimination of this deduction through guidance or legislation, could increase actual tax expense and reduce the Company’s consolidated net income. In December 2015, Congress enacted legislation renewing the Active Financing Exception (“AFE”), retroactive for tax years beginning on or after January 1, 2015 and made the provision a permanent part of the U.S. tax code. Under the AFE, subject to certain tests, foreign business income derived in the active conduct of an insurance business is not subject to U.S. tax until distributed to the U.S. As a result of the change in tax law, in 2015 , the Company recognized a $108 million tax benefit in “Income from continuing operations before equity in earnings of operating joint ventures.” This amount relates to the reversal of $108 million of tax expense associated with Prudential of Korea’s and Prudential of Taiwan’s unrealized investment gains originally included in AOCI. This provision will lower the Company’s future U.S. tax liability on undistributed foreign earnings and increase after-tax results. Total income tax expense includes additional income tax expense related to the realization of local deferred tax assets recorded in the Company’s Consolidated Statements of Financial Position as of the acquisition date for Prudential Gibraltar Financial Life Insurance Company, Ltd. (“PGFL”) and the Star and Edison Businesses. As of December 31, 2014, the entire amount of additional U.S. GAAP tax expense of $ 734 million related to the utilization of opening balance sheet local deferred tax assets has been recognized in the Consolidated Statements of Operations. Deferred tax assets and liabilities at December 31 resulted from the items listed in the following table: 2016 2015 (in millions) Deferred tax assets Insurance reserves $ 1,856 $ 2,878 Policyholders’ dividends 1,849 1,815 Net operating and capital loss carryforwards 190 181 Employee benefits 789 628 Investments 1,166 530 Other 0 0 Deferred tax assets before valuation allowance 5,850 6,032 Valuation allowance (163 ) (133 ) Deferred tax assets after valuation allowance 5,687 5,899 Deferred tax liabilities Net unrealized investment gains 10,551 9,167 Deferred policy acquisition costs 4,443 4,179 Investments 0 0 Unremitted foreign earnings 380 290 Value of business acquired 715 903 Other 393 291 Deferred tax liabilities 16,482 14,830 Net deferred tax liability $ (10,795 ) $ (8,931 ) The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. A valuation allowance has been recorded against deferred tax assets related to state and local taxes and foreign operations. Adjustments to the valuation allowance are made to reflect changes in management’s assessment of the amount of the deferred tax asset that is realizable and the amount of deferred tax asset actually realized during the year. The valuation allowance includes amounts recorded in connection with deferred tax assets as of December 31 as follows: 2016 2015 (in millions) Valuation allowance related to state and local deferred tax assets $ 138 $ 98 Valuation allowance related to foreign operations deferred tax assets $ 25 $ 35 The following table sets forth the federal, state and foreign operating, capital loss and tax credit carryforwards for tax purposes, as of December 31: 2016 2015 (in millions) Federal net operating and capital loss carryforwards $ 0 $ 0 State net operating and capital loss carryforwards(1) $ 4,201 $ 3,687 Foreign operating loss carryforwards(2) $ 45 $ 65 General business credits $ 0 $ 0 Alternative minimum tax credits(3) $ 66 $ 85 __________ (1) Expires between 2017 and 2036. (2) $21 million expires between 2017 and 2025 and $24 million has an unlimited carryforward. (3) Alternative minimum tax credits do not expire. The following table sets forth the Company’s foreign operations and unremitted earnings for which the Company provides U.S. income taxes as of December 31, 2016: Foreign Operation Unremitted earnings for which the Company provides U.S. income taxes Japanese insurance operations - Pre-2014 U.S. GAAP earnings - Post-2013 realized and unrealized capital gains - An additional amount from Gibraltar Life and Prudential Gibraltar, not to exceed the deferred tax asset recorded in the Statements of Financial Position as of the acquisition date for Prudential Gibraltar and the Star and Edison Businesses Korean insurance operations Portion of post-2011 U.S. GAAP earnings Certain operations in Germany, Taiwan, Brazil, and non-insurance operations in Japan U.S. GAAP earnings Unremitted foreign earnings from operations in other foreign jurisdictions are considered to be indefinitely reinvested. During the fourth quarter of 2014 , we determined that the current year operating earnings and AOCI, except realized and unrealized capital gains (losses), of our Japanese insurance operations will be treated as indefinitely reinvested. Consequently, we recognized a U.S. tax expense of $32 million in “Income from continuing operations before equity in earnings of operating joint ventures” during 2014. During the third quarter of 2015, the Company determined that the earnings from its Brazilian insurance operations would be repatriated to the U.S. Accordingly, earnings from those Brazilian insurance operations were not considered indefinitely reinvested, and the Company recognized an income tax benefit of $3 million in “Income from continuing operations before equity in earnings of operating joint ventures” during 2015 . The Company made no changes with respect to its repatriation assumptions in 2016 . The following table sets forth the undistributed earnings of foreign subsidiaries, where the Company assumes indefinite reinvestment of such earnings and for which U.S. deferred taxes have not been provided, as of the periods indicated. Determining the tax liability that would arise if these earnings were remitted is not practicable. At December 31, 2016 2015 2014 (in millions) Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment) $ 4,231 $ 3,215 $ 2,396 The Company’s income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures includes income from domestic operations of $1,242 million , $4,235 million and $3,487 million , and income (loss) from foreign operations of $4,463 million , $3,534 million and $(1,728) million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company’s unrecognized tax benefits for the years ended December 31 are as follows: 2016 2015 2014 (in millions) Balance at January 1, $ 6 $ 6 $ 11 Increases in unrecognized tax benefits—prior years 10 0 0 (Decreases) in unrecognized tax benefits—prior years 0 0 0 Increases in unrecognized tax benefits—current year 10 0 0 (Decreases) in unrecognized tax benefits—current year 0 0 0 Settlements with taxing authorities 0 0 (5 ) Balance at December 31, $ 26 $ 6 $ 6 Unrecognized tax benefits that, if recognized, would favorably impact the effective rate $ 26 $ 6 $ 6 The Company does not anticipate any significant changes within the next twelve months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). The amounts recognized in the consolidated financial statements for tax-related interest and penalties for the years ended December 31 are as follows: 2016 2015 2014 (in millions) Interest and penalties recognized in the consolidated statements of operations $ 1 $ 0 $ 2 2016 2015 (in millions) Interest and penalties recognized in liabilities in the consolidated statements of financial position $ 5 $ 4 Listed below are the tax years that remain subject to examination, by major tax jurisdiction, as of December 31, 2016 : Major Tax Jurisdiction Open Tax Years United States 2009-2015 Japan Fiscal years ended March 31, 2012-2016 Korea Fiscal years ended March 31, 2012 and 2013, the periods ended December 31, 2013-2016 The Company is participating in the IRS’s Compliance Assurance Program. Under this program, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolutions programs are available to resolve the disagreements in a timely manner before the tax return is filed. Certain of the Company’s affiliates in Japan file a consolidated tax return, while others file separate tax returns. The Company’s affiliates in Japan are subject to audits by the local taxing authority. The general statute of limitations is five years from when the return is filed. During 2016 , the Tokyo Regional Taxation Bureau concluded a routine tax audit of the tax returns of the Company’s affiliates in Japan for their tax years ended March 31, 2013 to March 31, 2015. These activities had no material impact on the Company’s 2014 , 2015 or 2016 results. The Company’s affiliates in South Korea file separate tax returns and are subject to audits by the local taxing authority. The general statute of limitations is five years from when the return is filed. During 2015 , the Korean National Tax Service concluded a routine tax audit of the tax returns of Prudential of Korea for the tax years ended March 31, 2010 to March 31, 2012. These activities had no material impact on the Company’s 2014 , 2015 or 2016 results. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement ––Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1—Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. The Company’s Level 1 assets and liabilities primarily include certain cash equivalents and short-term investments, equity securities and derivative contracts that trade on an active exchange market. Level 2—Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain commercial mortgage loans, short-term investments and certain cash equivalents (primarily commercial paper), and certain OTC derivatives. Level 3—Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public equity securities and fixed maturities, certain highly structured OTC derivative contracts, certain commercial mortgage loans, certain consolidated real estate funds for which the Company is the general partner and embedded derivatives resulting from certain products with guaranteed benefits. Assets and Liabilities by Hierarchy Level ––The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 23,784 $ 0 $ $ 23,784 Obligations of U.S. states and their political subdivisions 0 9,687 5 9,692 Foreign government bonds 0 96,132 124 96,256 U.S. corporate public securities 0 81,350 261 81,611 U.S. corporate private securities(7) 0 30,434 1,354 31,788 Foreign corporate public securities 0 28,166 71 28,237 Foreign corporate private securities 0 20,393 487 20,880 Asset-backed securities(8) 0 7,591 4,344 11,935 Commercial mortgage-backed securities 0 12,690 14 12,704 Residential mortgage-backed securities 0 4,335 197 4,532 Subtotal 0 314,562 6,857 321,419 Trading account assets:(2) U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 301 0 301 Obligations of U.S. states and their political subdivisions 0 194 0 194 Foreign government bonds 0 714 227 941 Corporate securities 0 16,992 188 17,180 Asset-backed securities(8) 0 1,086 329 1,415 Commercial mortgage-backed securities 0 2,061 1 2,062 Residential mortgage-backed securities 0 1,208 2 1,210 Equity securities 1,690 214 487 2,391 All other(3) 208 13,259 1 (11,708 ) 1,760 Subtotal 1,898 36,029 1,235 (11,708 ) 27,454 Equity securities, available-for-sale 6,033 3,450 265 9,748 Commercial mortgage and other loans 0 519 0 519 Other long-term investments 44 106 7 (8 ) 149 Short-term investments 5,623 1,558 1 7,182 Cash equivalents 3,885 4,421 0 8,306 Other assets 0 0 0 0 Subtotal excluding separate account assets 17,483 360,645 8,365 (11,716 ) 374,777 Separate account assets(4) 38,915 221,253 1,849 262,017 Total assets $ 56,398 $ 581,898 $ 10,214 $ (11,716 ) $ 636,794 Future policy benefits(5) $ 0 $ 0 $ 8,238 $ $ 8,238 Other liabilities 8 6,284 22 (5,945 ) 369 Notes issued by consolidated VIEs 0 0 1,839 1,839 Total liabilities $ 8 $ 6,284 $ 10,099 $ (5,945 ) $ 10,446 As of December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 18,517 $ 0 $ $ 18,517 Obligations of U.S. states and their political subdivisions 0 8,789 6 8,795 Foreign government bonds 0 83,590 123 83,713 U.S. corporate public securities 0 75,163 205 75,368 U.S. corporate private securities(7) 0 29,750 694 30,444 Foreign corporate public securities 0 28,510 44 28,554 Foreign corporate private securities 0 18,859 279 19,138 Asset-backed securities(8) 0 6,178 4,048 10,226 Commercial mortgage-backed securities 0 10,424 38 10,462 Residential mortgage-backed securities 0 4,923 183 5,106 Subtotal 0 284,703 5,620 290,323 Trading account assets:(2) U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 288 0 288 Obligations of U.S. states and their political subdivisions 0 189 0 189 Foreign government bonds 0 697 34 731 Corporate securities 0 23,125 203 23,328 Asset-backed securities(8) 0 749 596 1,345 Commercial mortgage-backed securities 0 1,870 3 1,873 Residential mortgage-backed securities 0 1,509 4 1,513 Equity securities 1,542 221 589 2,352 All other(3) 630 14,173 5 (11,447 ) 3,361 Subtotal 2,172 42,821 1,434 (11,447 ) 34,980 Equity securities, available-for-sale 6,011 2,997 266 9,274 Commercial mortgage and other loans 0 274 0 274 Other long-term investments(6) 13 130 49 (10 ) 182 Short-term investments 6,776 711 0 7,487 Cash equivalents 4,834 9,374 0 14,208 Other assets 0 9 7 16 Subtotal excluding separate account assets 19,806 341,019 7,376 (11,457 ) 356,744 Separate account assets(4)(6) 43,076 214,838 1,995 259,909 Total assets $ 62,882 $ 555,857 $ 9,371 $ (11,457 ) $ 616,653 Future policy benefits(5) $ 0 $ 0 $ 8,434 $ $ 8,434 Other liabilities 1 5,306 2 (5,276 ) 33 Notes issued by consolidated VIEs 0 0 8,597 8,597 Total liabilities $ 1 $ 5,306 $ 17,033 $ (5,276 ) $ 17,064 __________ (1) “Netting” amounts represent cash collateral of $5,771 million and $6,181 million as of December 31, 2016 and 2015 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Includes “Trading account assets supporting insurance liabilities” and “Other trading account assets.” (3) Level 1 represents cash equivalents and short term investments. All other amounts primarily represent derivative assets. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. (5) As of December 31, 2016 , the net embedded derivative liability position of $8.2 billion includes $1.2 billion of embedded derivatives in an asset position and $9.4 billion of embedded derivatives in a liability position. As of December 31, 2015 , the net embedded derivative liability position of $8.4 billion includes $0.7 billion of embedded derivatives in an asset position and $9.1 billion of embedded derivatives in a liability position. (6) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. (7) Excludes notes with fair value of $1,456 million and $1,039 million as of December 31, 2016 and 2015 , respectively, which have been offset with the associated payables under a netting agreement. (8) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. Fixed Maturity Securities —The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds and default rates. If the pricing information received from third-party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2. Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally-developed valuation. As of December 31, 2016 and 2015 , overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends and back testing. The fair value of private fixed maturities, which are comprised of investments in private placement securities, originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including observed prices and spreads for similar publicly-traded or privately-traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made. Trading Account Assets —Trading account assets consist primarily of fixed maturity securities, equity securities and derivatives whose fair values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and below under “Equity Securities” and “Derivative Instruments.” Equity Securities —Equity securities consist principally of investments in common and preferred stock of publicly-traded companies, perpetual preferred stock, privately-traded securities, as well as mutual fund shares. The fair values of most publicly-traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy. The fair values of perpetual preferred stock are based on inputs obtained from independent pricing services that are primarily based on indicative broker quotes. As a result, the fair values of perpetual preferred stock are classified as Level 3. Commercial Mortgage and Other Loans —The fair value of loans held and accounted for using the fair value option is determined utilizing pricing indicators from the whole loan market, where investors are committed to purchase these loans at a predetermined price, which is considered the principal exit market for these loans. The Company evaluates the valuation inputs used for these assets, including the existence of predetermined exit prices, the terms of the loans, prevailing interest rates and credit risk, and deems the primary pricing inputs are Level 2 inputs in the fair value hierarchy. Other Long-Term Investments —Other long-term investments include limited partnerships which are consolidated because the Company is either deemed to exercise control or considered the primary beneficiary of a variable interest entity. These entities are primarily investment companies and follow specialized industry accounting whereby their assets are carried at fair value. The investments held by these entities include various feeder fund investments in underlying master funds (whose underlying holdings generally include public fixed maturities, equity securities and mutual funds), as well as wholly-owned real estate held within other investment funds. For the unconsolidated fund investments, where the Company has elected the fair value option, the fair value is primarily determined by the fund managers and is measured at NAV as a practical expedient. Effective January 1, 2016, the Company adopted new accounting guidance (ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent (Topic 820)), which removes the requirement to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this new guidance, certain other long-term investments are no longer classified in the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been conformed to the current period presentation. At December 31, 2016 and 2015 , the fair values of these investments, which include certain hedge funds, private equity funds and other funds were $1,579 million and $1,413 million , respectively, of which $82 million and $1,331 million had been previously classified in Level 2 and Level 3, respectively, at December 31, 2015 . Other Assets —Other assets reflected in Level 3 include reinsurance recoverables which are carried at fair value and relate to the reinsurance of the Company’s living benefit guarantees on certain variable annuity contracts. The methods and assumptions used to estimate the fair value are consistent with those described in “Future Policy Benefits.” Derivative Instruments —Derivatives are recorded at fair value either as assets, within “Other trading account assets,” or “Other long-term investments,” or as liabilities, within “Other liabilities,” except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, commodity prices, credit spreads, market volatility, expected returns, NPR, liquidity and other factors. For derivative positions included within Level 3 of the fair value hierarchy, liquidity valuation adjustments are made to reflect the cost of exiting significant risk positions, and consider the bid-ask spread, maturity, complexity and other specific attributes of the underlying derivative position. The Company’s exchange-traded futures and options include Treasury futures, Eurodollar futures, commodity futures, Eurodollar options and commodity options. Exchange-traded futures and options are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy. The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross-currency swaps, currency forward contracts, commodity swaps, commodity forward contracts, single name credit default swaps, loan commitments held for sale and “to be announced” (“TBA”) forward contracts on highly rated mortgage-backed securities issued by U.S. government sponsored entities are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors. The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including Overnight Indexed Swap discount rates, obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. The vast majority of the Company’s derivative agreements are with highly rated major international financial institutions. To reflect the market’s perception of its own and the counterparty’s NPR, the Company incorporates additional spreads over London Inter-Bank Offered Rate (“LIBOR”) into the discount rate used in determining the fair value of OTC derivative assets and liabilities that are not otherwise collateralized. Derivatives classified as Level 3 include look-back equity options and other structured products. These derivatives are valued based upon models, such as Monte Carlo simulation models and other techniques that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company’s fair values to external broker-dealer values. Cash Equivalents and Short-Term Investments —Cash equivalents and short-term investments include money market instruments, commercial paper and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs and these investments have primarily been classified within Level 2. Separate Account Assets —Separate account assets include fixed maturity securities, treasuries, equity securities and mutual funds for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and “Equity Securities.” Effective January 1, 2016, the Company adopted new accounting guidance (ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent (Topic 820)), which removes the requirement to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this new guidance, certain separate account assets are no longer classified in the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been conformed to the current period presentation. At December 31, 2016 and 2015 , the fair values of Separate Account Assets excluded from the fair value hierarchy, which include investments in real estate and other invested assets, were $25,619 million and $25,661 million , respectively, which had been previously classified in Level 3 at December 31, 2015 . Notes issued by Consolidated VIEs —These notes are based on the fair values of corresponding bank loan collateral. Since the notes are valued based on reference collateral, they are classified as Level 3. See Note 5 and “Fair Value Option” below for additional information. Other Liabilities —Other liabilities include certain derivative instruments, including embedded derivatives associated with certain “Policyholders’ account balances.” The fair values are primarily determined consistent with similar derivative instruments described above under “Derivative Instruments.” Future Policy Benefits —The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable annuity contracts offered by the Company’s Individual Annuities segment, including guaranteed minimum accumulation benefit, guaranteed minimum withdrawal benefits and guaranteed minimum income and withdrawal benefits, accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. This methodology could result in either a liability or contra-liability balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management’s judgment. The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy . Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the LIBOR swap curve adjusted for an additional spread relative to LIBOR to reflect NPR. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long term trend is observed in an interim period. Transfers between Levels 1 and 2 —Transfers between levels are made to reflect changes in observability of inputs and market activity. Transfers into or out of any level are generally reported as the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. Periodically there are transfers between Level 1 and Level 2 for assets held in the Company’s Separate Account. The fair value of foreign common stock held in the Company’s Separate Account may reflect differences in market levels between the close of foreign trading markets and the close of U.S. trading markets for the respective day. Dependent on the existence of such a timing difference, the assets may move between Level 1 and Level 2. During the year ended December 31, 2016 , $0.1 billion were transferred from Level 1 to Level 2 and $0.0 billion were transferred from Level 2 to Level 1. During the year ended December 31, 2015 , $0.2 billion were transferred from Level 1 to Level 2 and $0.2 billion were transferred from Level 2 to Level 1. Level 3 Assets and Liabilities by Price Source —The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. As of December 31, 2016 Internal(1) External(2) Total (in millions) Obligations of U.S. states and their political subdivisions $ 5 $ 0 $ 5 Foreign government bonds 0 351 351 Corporate securities(3) 1,848 513 2,361 Asset-backed securities(4) 148 4,525 4,673 Commercial mortgage-backed securities 14 1 15 Residential mortgage-backed securities 18 181 199 Equity securities 143 609 752 Other long-term investments 6 1 7 Short-term investments 1 0 1 Other assets 1 0 1 Subtotal excluding separate account assets 2,184 6,181 8,365 Separate account assets 1,179 670 1,849 Total assets $ 3,363 $ 6,851 $ 10,214 Future policy benefits $ 8,238 $ 0 $ 8,238 Other liabilities 22 0 22 Notes issued by consolidated VIEs 0 1,839 1,839 Total liabilities $ 8,260 $ 1,839 $ 10,099 As of December 31, 2015 Internal(1) External(2) Total (in millions) Obligations of U.S. states and their political subdivisions $ 6 $ 0 $ 6 Foreign government bonds 0 157 157 Corporate securities(3) 1,085 340 1,425 Asset-backed securities(4) 149 4,495 4,644 Commercial mortgage-backed securities 5 36 41 Residential mortgage-backed securities 37 150 187 Equity securities 63 792 855 Other long-term investments(5) 39 10 49 Other assets 12 0 12 Subtotal excluding separate account assets 1,396 5,980 7,376 Separate account assets(5) 1,024 971 1,995 Total assets $ 2,420 $ 6,951 $ 9,371 Future policy benefits $ 8,434 $ 0 $ 8,434 Other liabilities 2 0 2 Notes issued by consolidated VIEs 0 8,597 8,597 Total liabilities $ 8,436 $ 8,597 $ 17,033 __________ (1) Represents valuations reflecting both internally-derived and market inputs, as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table. (2) Represents unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. (3) Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. Quantitative Information Regarding Internally - Priced Level 3 Assets and Liabilities —The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities (see narrative below for quantitative information for separate account assets). As of December 31, 2016 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in millions) Assets: Corporate securities(2) $ 1,848 Discounted cash flow Discount rate 0.70% — 20% 7.12 % Decrease Market comparables EBITDA multiples(3) 4.0X — 4.0X 4.0X Increase Liquidation Liquidation value 15.19% — 98.68% 91.72 % Increase Liabilities: Future policy benefits(4) $ 8,238 Discounted cash flow Lapse rate(5) 0% — 13% Decrease NPR spread(6) 0.25% — 1.50% Decrease Utilization rate(7) 52% — 96% Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0% — 14% Decrease Equity volatility curve 16% — 25% Increase As of December 31, 2015 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in millions) Assets: Corporate securities(2) $ 1,085 Discounted cash flow Discount rate 0.93% — 25% 7.66% Decrease Market comparables EBITDA multiples(3) 1.4X — 5.0X 3.7X Increase Liquidation Liquidation value 15.79% — 29.33% 17.77% Increase Liabilities: Future policy benefits(4) $ 8,434 Discounted cash flow Lapse rate(5) 0% — 14% Decrease NPR spread(6) 0.06% — 1.76% Decrease Utilization rate(7) 56% — 96% Increase Withdrawal rate(8) 74% — 100% Increase Mortality rate(9) 0% — 14% Decrease Equity volatility curve 17% — 28% Increase __________ (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets. (3) Represents multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), and are amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments. (4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (6) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps, options and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities (including duration mismatches) and to hedge against changes in the value of assets it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or may be used on a portfolio basis. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. The Company also uses swaptions, interest rate caps and interest rate floors to manage interest rate risk. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. In an interest rate cap, the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. Similarly, in an interest rate floor, the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price. Swaptions and interest rate caps and floors are included in interest rate options. In exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the values of underlying referenced investments, and posts variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission’s merchants who are members of a trading exchange. Equity Contracts Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range. Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and LIBOR plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices. Foreign Exchange Contracts Currency derivatives, including currency futures, options, forwards and swaps, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell, and to hedge the currency risk associated with net investments in foreign operations and anticipated earnings of its foreign operations. Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. As noted above, the Company uses currency forwards to mitigate the impact of changes in currency exchange rates on U.S. dollar-equivalent earnings generated by certain of its non-U.S. businesses, primarily its international insurance and investment operations. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated. These earnings hedges do not qualify for hedge accounting. Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. Credit Contracts The Company writes credit default swaps for which it receives a premium to insure credit risk. These are used by the Company to enhance the return on the Company’s investment portfolio by creating credit exposure similar to an investment in public fixed maturity cash instruments. With these derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. This premium or credit spread generally corresponds to the difference between the yield on the referenced names (or an index’s referenced names) public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name or one of the referenced names in the index, as defined by the agreement, then the Company is obligated to pay the referenced amount of the contract to the counterparty and receive in return the referenced defaulted security or similar security or (in the case of a credit default index) pay the referenced amount less the auction recovery rate. See credit derivatives written section for further discussion of guarantees. In addition to selling credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Other Contracts TBAs. The Company uses TBA forward contracts to gain exposure to the investment risk and return of mortgage-backed securities. TBA transactions can help the Company enhance the return on its investment portfolio, and can provide a more liquid and cost effective method of achieving these goals than purchasing or selling individual mortgage-backed pools. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. Additionally, pursuant to the Company’s mortgage dollar roll program, TBAs or mortgage-backed securities are transferred to counterparties with a corresponding agreement to repurchase them at a future date. These transactions do not qualify as secured borrowings and are accounted for as derivatives. Loan Commitments. In its mortgage operations, the Company enters into commitments to fund commercial mortgage loans at specified interest rates and other applicable terms within specified periods of time. These commitments are legally binding agreements to extend credit to a counterparty. Loan commitments for loans that will be held for sale are recognized as derivatives and recorded at fair value. The determination of the fair value of loan commitments accounted for as derivatives considers various factors including, among others, terms of the related loan, the intended exit strategy for the loans based upon either securitization valuation models or investor purchase commitments, prevailing interest rates, origination income or expense, and the value of service rights. Loan commitments that relate to the origination of mortgage loans that will be held for investment are not accounted for as derivatives and accordingly are not recognized in the Company’s financial statements. See Note 23 for additional information. Embedded Derivatives. The Company sells variable annuity products, which may include guaranteed benefit features that are accounted for as embedded derivatives. These embedded derivatives are marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models. The Company maintains a portfolio of derivative instruments that is intended to offset certain risks related to the above products’ features. The derivatives may include, but are not limited to equity options, total return swaps, interest rate swaptions, caps, floors and other instruments. Synthetic Guarantees. The Company sells synthetic Guaranteed Investment Contracts (“GICs”), through both full service and investment-only sales channels, to investment vehicles primarily used by qualified defined contribution pension plans. The synthetic GICs are issued in respect of assets that are owned by the trustees of such plans, who invest the assets according to the contract terms agreed to with the Company. The contracts establish participant balances and credit interest thereon. The participant balances are supported by the underlying assets. In connection with certain participant-initiated withdrawals, the contract guarantees that after all underlying assets are liquidated, any remaining participant balances will be paid by the Company. Under U.S. GAAP, these contracts are accounted for as derivatives and recorded at fair value. The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlyings. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral held with the same counterparty and NPR. This netting impact results in total derivative assets of $1,367 million and $2,728 million as of December 31, 2016 and 2015 , respectively, and total derivative liabilities of $345 million and $40 million as of December 31, 2016 and 2015 , respectively, reflected in the Consolidated Statements of Financial Position. December 31, 2016 December 31, 2015 Primary Underlying/ Instrument Type Gross Fair Value Gross Fair Value Notional(1) Assets Liabilities Notional(1) Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 1,117 $ 17 $ (111 ) $ 1,431 $ 20 $ (148 ) Foreign Currency Foreign Currency Forwards 167 3 (1 ) 323 7 (1 ) Currency/Interest Rate Foreign Currency Swaps 14,737 1,956 (54 ) 12,739 1,592 (5 ) Total Qualifying Hedges $ 16,021 $ 1,976 $ (166 ) $ 14,493 $ 1,619 $ (154 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 162,131 $ 8,969 $ (4,274 ) $ 173,091 $ 10,161 $ (4,232 ) Interest Rate Futures 31,183 55 (1 ) 28,209 11 (3 ) Interest Rate Options 13,290 289 (132 ) 40,056 387 (196 ) Interest Rate Forwards 321 0 (1 ) 86 0 0 Foreign Currency Foreign Currency Forwards 21,042 372 (892 ) 17,400 311 (113 ) Foreign Currency Options 93 0 0 93 0 0 Currency/Interest Rate Foreign Currency Swaps 12,336 1,218 (311 ) 11,607 1,404 (238 ) Credit Credit Default Swaps 918 1 (25 ) 1,839 3 (53 ) Equity Equity Futures 1,371 0 (5 ) 249 2 0 Equity Options 12,020 102 (93 ) 48,958 159 (118 ) Total Return Swaps 18,167 101 (390 ) 18,804 128 (209 ) Commodity Commodity Futures 1 0 0 80 0 0 Synthetic GICs 77,197 5 0 72,585 7 0 Total Non-Qualifying Derivatives(2) $ 350,070 $ 11,112 $ (6,124 ) $ 413,057 $ 12,573 $ (5,162 ) Total Derivatives(3) $ 366,091 $ 13,088 $ (6,290 ) $ 427,550 $ 14,192 $ (5,316 ) __________ (1) Notional amounts are presented on a gross basis and include derivatives used to offset existing positions. (2) Based on notional amounts, most of the Company’s derivatives do not qualify for hedge accounting as follows: i) derivatives that economically hedge embedded derivatives do not qualify for hedge accounting because changes in the fair value of the embedded derivatives are already recorded in net income, ii) derivatives that are utilized as macro hedges of the Company’s exposure to various risks typically do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedge accounting rules, and iii) synthetic GICs, which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules. (3) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $8,252 million and $8,408 million as of December 31, 2016 , and 2015 , respectively, primarily included in “Future policy benefits.” Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 12,987 $ (11,716 ) $ 1,271 $ (399 ) $ 872 Securities purchased under agreement to resell 1,016 0 1,016 (1,016 ) 0 Total Assets $ 14,003 $ (11,716 ) $ 2,287 $ (1,415 ) $ 872 Offsetting of Financial Liabilities: Derivatives(1) $ 6,281 $ (5,945 ) $ 336 $ (299 ) $ 37 Securities sold under agreement to repurchase 7,606 0 7,606 (7,606 ) 0 Total Liabilities $ 13,887 $ (5,945 ) $ 7,942 $ (7,905 ) $ 37 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 14,028 $ (11,457 ) $ 2,571 $ (1,296 ) $ 1,275 Securities purchased under agreement to resell 776 0 776 (776 ) 0 Total Assets $ 14,804 $ (11,457 ) $ 3,347 $ (2,072 ) $ 1,275 Offsetting of Financial Liabilities: Derivatives(1) $ 5,310 $ (5,276 ) $ 34 $ (14 ) $ 20 Securities sold under agreement to repurchase 7,882 0 7,882 (7,882 ) 0 Total Liabilities $ 13,192 $ (5,276 ) $ 7,916 $ (7,896 ) $ 20 __________ (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. For information regarding the rights of offset associated with the derivative assets and liabilities in the table above see “ — Counterparty Credit Risk” below. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. See Note 2 for additional information. Cash Flow, Fair Value and Net Investment Hedges The primary derivative instruments used by the Company in its fair value, cash flow and net investment hedge accounting relationships are interest rate swaps, currency swaps and currency forwards. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, equity or embedded derivatives in any of its fair value, cash flow or net investment hedge accounting relationships. The following table provides the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Year Ended December 31, 2016 Realized Investment Gains (Losses) Net Investment Income Other Income Interest Expense Interest Credited To Policyholders’ Account Balances AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 26 $ (31 ) $ 0 $ 0 $ 0 $ 0 Currency 21 (1 ) 0 0 0 0 Total fair value hedges 47 (32 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (5 ) 0 (1 ) Currency/Interest Rate 0 123 269 0 0 152 Total cash flow hedges 0 123 269 (5 ) 0 151 Net investment hedges Currency(2) 5 0 0 0 0 (5 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 5 0 0 0 0 (5 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,564 0 0 0 0 0 Currency 463 0 1 0 0 0 Currency/Interest Rate 10 0 3 0 0 0 Credit 32 0 0 0 0 0 Equity (2,171 ) 0 0 0 0 0 Commodity (1 ) 0 0 0 0 0 Embedded Derivatives 1,260 0 0 0 0 0 Total non-qualifying hedges 1,157 0 4 0 0 0 Total $ 1,209 $ 91 $ 273 $ (5 ) $ 0 $ 146 Year Ended December 31, 2015 Realized Investment Gains (Losses) Net Investment Income Other Income Interest Expense Interest Credited To Policyholders’ Account Balances AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 29 $ (44 ) $ 0 $ 0 $ 0 $ 0 Currency 18 (1 ) 0 0 0 0 Total fair value hedges 47 (45 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (7 ) 0 2 Currency/Interest Rate 0 75 146 0 0 957 Total cash flow hedges 0 75 146 (7 ) 0 959 Net investment hedges Currency 0 0 0 0 0 9 Currency/Interest Rate 0 0 0 0 0 31 Total net investment hedges 0 0 0 0 0 40 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,394 0 0 0 0 0 Currency (124 ) 0 (2 ) 0 0 0 Currency/Interest Rate 563 0 7 0 0 0 Credit (5 ) 0 0 0 0 0 Equity (591 ) 0 0 0 0 0 Commodity 0 0 0 0 0 0 Embedded Derivatives 724 0 0 0 0 0 Total non-qualifying hedges 1,961 0 5 0 0 0 Total $ 2,008 $ 30 $ 151 $ (7 ) $ 0 $ 999 Year Ended December 31, 2014 Realized Investment Gains (Losses) Net Investment Income Other Income Interest Expense Interest Credited To Policyholders’ Account Balances AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ (4 ) $ (57 ) $ 0 $ 0 $ 2 $ 0 Currency (9 ) (1 ) 0 0 0 0 Total fair value hedges (13 ) (58 ) 0 0 2 0 Cash flow hedges Interest Rate 0 0 0 (22 ) 0 38 Currency/Interest Rate 0 7 67 0 0 614 Total cash flow hedges 0 7 67 (22 ) 0 652 Net investment hedges Currency 0 0 0 0 0 17 Currency/Interest Rate 0 0 0 0 0 128 Total net investment hedges 0 0 0 0 0 145 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 7,623 0 0 0 0 0 Currency (562 ) 0 0 0 0 0 Currency/Interest Rate 1,124 0 5 0 0 0 Credit (22 ) 0 0 0 0 0 Equity (1,605 ) 0 0 0 0 0 Commodity 1 0 0 0 0 0 Embedded Derivatives (6,734 ) 0 0 0 0 0 Total non-qualifying hedges (175 ) 0 5 0 0 0 Total $ (188 ) $ (51 ) $ 72 $ (22 ) $ 2 $ 797 __________ (1) Amounts deferred in AOCI. (2) Relates to the sale of equity method investments. For the year ended December 31, 2016 , the ineffective portion of derivatives accounted for using hedge accounting was $5.6 million and for the years ended December 31, 2015 and 2014 , the ineffective portion of derivatives accounted for using hedge accounting was not material to the Company’s results of operations. Also, there were no material amounts reclassified into earnings relating to instances in which the Company discontinued cash flow hedge accounting because the forecasted transaction did not occur by the anticipated date or within the additional time period permitted by the authoritative guidance for the accounting for derivatives and hedging. In addition, there were no instances in which the Company discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in millions) Balance, December 31, 2013 $ (446 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014 706 Amount reclassified into current period earnings (54 ) Balance, December 31, 2014 206 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 1,199 Amount reclassified into current period earnings (240 ) Balance, December 31, 2015 1,165 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2016 602 Amount reclassified into current period earnings (451 ) Balance, December 31, 2016 $ 1,316 Using December 31, 2016 values, it is estimated that a pre-tax gain of approximately $161 million will be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2017 , offset by amounts pertaining to the hedged items. As of December 31, 2016 , the Company does not have any qualifying cash flow hedges of forecasted transactions other than those related to the variability of the payment or receipt of interest or foreign currency amounts on existing financial instruments. The maximum length of time for which these variable cash flows are hedged is 40 years . Income amounts deferred in AOCI as a result of cash flow hedges are included in “Net unrealized investment gains (losses)” in the Consolidated Statements of Comprehensive Income. For effective net investment hedges, the amounts, before applicable taxes, recorded in the cumulative translation adjustment account within AOCI were $536 million in 2016 , $541 million in 2015 and $501 million in 2014 , respectively. Credit Derivatives Credit derivatives, where the Company has written credit protection on a single name reference, had outstanding notional amounts of $112 million and $106 million as of December 31, 2016 and 2015 , respectively. These credit derivatives are reported at fair value as an asset of less than $1 million and a liability of $3 million , as of December 31, 2016 and 2015 , respectively. As of December 31, 2016 , these credit derivatives’ notionals had the following NAIC ratings: $48 million in NAIC 1, $48 million in NAIC 2, $5 million in NAIC 3, $1 million in NAIC 4, $6 million in NAIC 5 and $4 million in NAIC 6. The Company has also written credit protection on certain index references with notional amounts of $50 million and $701 million , reported at fair value as a liability of less than $1 million and $24 million as of December 31, 2016 and 2015 , respectively. As of December 31, 2016 , these credit derivatives’ notionals of $50 million had a NAIC rating of 1. NAIC designations are based on the lowest rated single name reference included in the index. The Company’s maximum amount at risk under these credit derivatives equals the aforementioned notional amounts and assumes the value of the underlying referenced securities become worthless. These single name credit derivatives have maturities of less than 4 years , while the credit protection on the index references have maturities of less than 31 years . This excludes a credit derivative related to surplus notes issued by a subsidiary of Prudential Insurance. The Company also entered into a credit derivative that will require the Company to make certain payments in the event of deterioration in the value of the surplus notes issued by a subsidiary of Prudential Insurance. The notional amount of this credit derivative is $500 million and the fair value as of December 31, 2016 and 2015 , was a liability of $17 million and $15 million , respectively. No collateral was pledged in either period. In addition to writing credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. As of December 31, 2016 and 2015 , the Company had $256 million and $532 million of outstanding notional amounts, respectively, reported at fair value as a liability of $8 million for both years. Counterparty Credit Risk The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial derivative transactions. The Company manages credit risk by entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties, and by obtaining collateral, such as cash and securities, when appropriate. Additionally, limits are set on single party credit exposures which are subject to periodic management review. The credit exposure of the Company’s OTC derivative transactions is represented by the contracts with a positive fair value at the reporting date. To reduce credit exposures, the Company seeks to (i) enter into OTC derivative transactions pursuant to master agreements that provide for a netting of payments and receipts with a single counterparty and (ii) enter into agreements that allow the use of credit support annexes, which are bilateral rating-sensitive agreements that require collateral postings at established threshold levels. Cleared derivatives are transactions between the Company and a counterparty where the transactions are cleared through a clearinghouse, such that each derivative counterparty is only exposed to the default of the clearinghouse. These cleared transactions require initial and daily variation margin collateral postings and include certain interest rate swaps and credit default swaps entered into on or after June 10, 2013, related to guidelines under Dodd-Frank. The Company also enters into exchange-traded futures and certain options transactions through regulated exchanges and these transactions are settled on a daily basis, thereby reducing credit risk exposure in the event of non-performance by counterparties to such financial instruments. Under fair value measurements, the Company incorporates the market’s perception of its own and the counterparty’s NPR in determining the fair value of the portion of its OTC derivative assets and liabilities that are uncollateralized. Credit spreads are applied to the derivative fair values on a net basis by counterparty. To reflect the Company’s own credit spread a proxy based on relevant debt spreads is applied to OTC derivative net liability positions. Similarly, the Company’s counterparty’s credit spread is applied to OTC derivative net asset positions. Certain of the Company’s derivative agreements with some of its counterparties contain credit-rating related triggers. If the Company’s credit rating were to fall below a certain level, the counterparties to the derivative instruments could request termination at the then fair value of the derivative or demand immediate full collateralization on derivative instruments in net liability positions. As of December 31, 2016 , there were no net liability derivative positions with counterparties with credit-risk-related contingent features. As such, the Company has not posted any collateral related to these positions and the Company would not be required to post any additional collateral to the counterparties if the credit-risk-related contingent features underlying these agreements had been triggered as of December 31, 2016 . |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Segments As discussed in Note 1, from December 18, 2001, the date of demutualization, through December 31, 2014, the Company organized its principal operations into the Financial Services Businesses and the Closed Block Business. As a result of the Class B Repurchase on January 2, 2015, the Company no longer organizes its principal operations into the Financial Services Businesses and the Closed Block Business. The Company operates through four divisions, which together encompass seven reportable segments, and its Corporate and Other operations. U.S. Retirement Solutions and Investment Management division. The U.S. Retirement Solutions and Investment Management division consists of the Individual Annuities, Retirement and Asset Management segments. The Individual Annuities segment manufactures and distributes individual variable and fixed annuity products, primarily to the U.S. mass affluent market. The Retirement segment manufactures and distributes products and provides administrative services for qualified and non-qualified retirement plans and offers innovative pension risk transfer solutions, investment-only stable value products, guaranteed investment contracts, funding agreements, institutional and retail notes, structured settlement annuities and other group annuities. The Asset Management segment provides a broad array of investment management and advisory services by means of institutional portfolio management, mutual funds, asset securitization activity and other structured products, and strategic investments. These products and services are provided to the public and private marketplace, as well as to other segments of the Company. U.S. Individual Life and Group Insurance division. The U.S. Individual Life and Group Insurance division consists of the Individual Life and Group Insurance segments. The Individual Life segment manufactures and distributes individual variable life, term life and universal life insurance products primarily to the U.S. mass middle, mass affluent and affluent markets. The Group Insurance segment manufactures and distributes a full range of group life, long-term and short-term group disability, and group corporate-, bank- and trust-owned life insurance in the U.S. primarily to institutional clients for use in connection with employee plans and affinity groups. International Insurance division. The International Insurance division consists of the International Insurance segment, which manufactures and distributes individual life insurance, retirement and related products to the mass affluent and affluent markets in Japan, Korea and other foreign countries through its Life Planner operations. In addition, similar products are offered to the broad middle income market across Japan through Life Consultants, the proprietary distribution channel of the Company’s Gibraltar Life operation, as well as other channels, including banks and independent agencies. Corporate and Other. Corporate and Other includes corporate items and initiatives that are not allocated to business segments, and divested businesses. Corporate operations consist primarily of: (1) capital that is not deployed in any business segments; (2) investments not allocated to business segments, including debt-financed investment portfolios, as well as tax credit investments and other tax-enhanced investments financed by business segments; (3) capital debt that is used or will be used to meet the capital requirements of the Company and the related interest expense; (4) the Company’s qualified pension and other employee benefit plans, after allocations to business segments; (5) corporate-level activities, after allocations to business segments, including strategic expenditures, corporate governance, corporate advertising, philanthropic activities, deferred compensation, and costs related to certain contingencies and enhanced regulatory supervision; (6) certain retained obligations relating to pre-demutualization policyholders; (7) a life insurance joint venture and an asset management joint venture in China; (8) the Company’s Capital Protection Framework; (9) the foreign currency income hedging program used to hedge certain non-U.S. dollar denominated earnings in our International Insurance segment; (10) the impact of intercompany arrangements with our Retirement and Asset Management segments to translate certain non-U.S. dollar-denominated earnings at fixed currency exchange rates; and (11) transactions with and between other segments. Closed Block division . The Closed Block division includes certain in force participating insurance and annuity products and corresponding assets that are used for the payment of benefits, expenses and policyholders’ dividends related to these products, as well as certain related assets and liabilities. In connection with demutualization, the Company ceased offering these participating products. The Closed Block division is accounted for as a divested business that is reported separately from the divested businesses that are included in the Company’s Corporate and Other operations. See Note 12 for additional information on the Closed Block. Segment Accounting Policies. The accounting policies of the segments are the same as those described in Note 2. Results for each segment include earnings on attributed equity established at a level which management considers necessary to support each segment’s risks. Operating expenses specifically identifiable to a particular segment are allocated to that segment as incurred. Operating expenses not identifiable to a specific segment that are incurred in connection with the generation of segment revenues are generally allocated based upon the segment’s historical percentage of general and administrative expenses. For information related to significant acquisitions and dispositions, see Note 3. For information related to the adoption of new accounting pronouncements, see Note 2. The segments’ results in prior years have been revised for these items, as applicable, to conform to the current year presentation. Adjusted Operating Income The Company analyzes the operating performance of each segment using “adjusted operating income.” Adjusted operating income does not equate to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” or “Net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s chief operating decision maker to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below. Adjusted operating income is calculated by adjusting each segment’s “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” for the following items, which are described in greater detail below: • realized investment gains (losses), net, and related charges and adjustments; • net investment gains (losses) on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes; • the contribution to income (loss) of divested businesses that have been or will be sold or exited, including businesses that have been placed in wind down status, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP; and • equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests. These items are important to an understanding of overall results of operations. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of adjusted operating income may differ from that used by other companies. However, the Company believes that the presentation of adjusted operating income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses. As discussed in Note 1, during 2016, the Company recorded out of period adjustments resulting in an aggregate net decrease of $134 million to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” for the year ended December 31, 2016. These adjustments resulted in a decrease in pre-tax adjusted operating income of $114 million for the year ended December 31, 2016, principally consisting of a net decrease of $153 million for the Individual Life Insurance segment. In addition, as previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2014, during 2014, the Company recorded out of period adjustments resulting in an aggregate net decrease of $193 million to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures.” Subsequent to 2014, the Company identified and recorded additional out of period adjustments of $41 million related to 2014, primarily reflecting a benefit from the release of reserves related to certain variable annuities products with optional living benefit guarantees, net of a related decrease in DAC, offset by the increase in reserves, net of a related increase in DAC, for certain universal life products within the Individual Life business. The impact of these items resulted in a decrease in pre-tax adjusted operating income of $155 million for the year ended December 31, 2014, principally consisting of a net decrease of $77 million for the Group Insurance segment and $72 million for the International Insurance segment. Realized investment gains (losses), net, and related charges and adjustments Realized investment gains (losses), net Adjusted operating income excludes “Realized investment gains (losses), net,” except for certain items described below. Significant activity excluded from adjusted operating income includes impairments and credit-related gains (losses) from sales of securities, the timing of which depends largely on market credit cycles and can vary considerably across periods, and interest rate-related gains (losses) from sales of securities, which are largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile. Additionally, adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset liability management program related to the risk of those products. However, the effectiveness of the hedging program will ultimately be reflected in adjusted operating income over time. Trends in the underlying profitability of the Company’s businesses can be more clearly identified without the fluctuating effects of these transactions. The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income: Year Ended December 31, 2016 2015 2014 (in millions) Net gains (losses) from(1): Terminated hedges of foreign currency earnings $ 39 $ 284 $ 293 Current period yield adjustments $ 466 $ 475 $ 476 Principal source of earnings $ 74 $ 123 $ 100 __________ (1) In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to divested businesses as results of “Divested businesses,” discussed below. Terminated Hedges of Foreign Currency Earnings. The amounts shown in the table above primarily reflect the impact of an intercompany arrangement between Corporate and Other operations and the International Insurance segment, pursuant to which the non-U.S. dollar-denominated earnings in all countries for a particular year, including its interim reporting periods, are translated at fixed currency exchange rates. The fixed rates are determined in connection with a currency hedging program designed to mitigate the risk that unfavorable rate changes will reduce the segment’s U.S. dollar-equivalent earnings. Pursuant to this program, the Company’s Corporate and Other operations may execute forward currency contracts with third parties to sell the net exposure of projected earnings from the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these contracts correspond with the future periods in which the identified non-U.S. dollar-denominated earnings are expected to be generated. These contracts do not qualify for hedge accounting under U.S. GAAP, so the resulting profits or losses are recorded in “Realized investment gains (losses), net.” When the contracts are terminated in the same period that the expected earnings emerge, the resulting positive or negative cash flow effect is included in adjusted operating income. Current Period Yield Adjustments. The Company uses interest rate and currency swaps and other derivatives to manage interest and currency exchange rate exposures arising from mismatches between assets and liabilities, including duration mismatches. For derivative contracts that do not qualify for hedge accounting treatment, the periodic swap settlements, as well as certain other derivative related yield adjustments are recorded in “Realized investment gains (losses), net,” and are included in adjusted operating income to reflect the after-hedge yield of the underlying instruments. In certain instances, when these derivative contracts are terminated or offset before their final maturity, the resulting realized gains or losses are recognized in adjusted operating income over periods that generally approximate the expected terms of the derivatives or underlying instruments in order for adjusted operating income to reflect the after-hedge yield of the underlying instruments. Included in the amounts shown in the table above are gains on certain derivative contracts that were terminated or offset before their final maturity of $49 million , $55 million and $105 million for the years ended 2016 , 2015 and 2014 , respectively. As of December 31, 2016 , there was a $169 million deferred net gain related to certain derivative contracts that were terminated or offset before their final maturity, primarily in the International Insurance segment. Also included in the amounts shown in the table above are fees related to synthetic GICs of $158 million , $158 million and $168 million for the years ended 2016 , 2015 and 2014 , respectively. Synthetic GICs are accounted for as derivatives under U.S. GAAP and, therefore, these fees are recorded in “Realized investment gains (losses), net.” See Note 21 for additional information on synthetic GICs. Principal Source of Earnings. The Company conducts certain activities for which realized investment gains (losses) are a principal source of earnings for its businesses and therefore included in adjusted operating income, particularly within the Company’s Asset Management segment. For example, Asset Management’s strategic investing business makes investments for sale or syndication to other investors or for placement or co-investment in the Company’s managed funds and structured products. The realized investment gains (losses) associated with the sale of these strategic investments, as well as the majority of derivative results, are a principal activity for this business and included in adjusted operating income. In addition, the realized investment gains (losses) associated with loans originated by the Company’s commercial mortgage operations, as well as related derivative results and retained mortgage servicing rights, are a principal activity for this business and included in adjusted operating income. Other items reflected as adjustments to Realized investment gains (losses), net The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income: Year Ended December 31, 2016 2015 2014 (in millions) Net gains (losses) from: Other trading account assets $ (95 ) $ (94 ) $ (21 ) Foreign currency exchange movements $ (154 ) $ 69 $ (3,023 ) Other activities $ (18 ) $ 9 $ 13 Other Trading Account Assets. The Company has certain investments in its general account portfolios that are classified as trading. These trading investments are carried at fair value and included in “Other trading account assets, at fair value” on the Company’s Consolidated Statements of Financial Position. Realized and unrealized gains (losses) for these investments are recorded in “Other income.” Consistent with the exclusion of realized investment gains (losses) with respect to other investments managed on a consistent basis, the net gains or losses on these investments are excluded from adjusted operating income. Foreign Currency Exchange Movements. The Company has certain assets and liabilities for which, under U.S. GAAP, the changes in value, including those associated with changes in foreign currency exchange rates during the period, are recorded in “Other income.” To the extent the foreign currency exposure on these assets and liabilities is economically hedged or considered part of the Company’s capital funding strategies for its international subsidiaries, the change in value included in “Other income” is excluded from adjusted operating income. The amount in the table above for the year ended 2014 was largely driven by non-yen denominated insurance liabilities in the Company’s Japanese insurance operations. The insurance liabilities are supported by investments denominated in corresponding currencies, including a significant portion designated as available-for-sale. While these non-yen denominated assets and liabilities are economically hedged, unrealized gains (losses) on available-for-sale investments, including those arising from foreign currency exchange rate movements, are recorded in AOCI under U.S. GAAP, while the non-yen denominated liabilities are re-measured for foreign currency exchange rate movements, with the related change in value recorded in earnings within “Other income.” Due to this non-economic volatility that has been reflected in U.S. GAAP earnings, the change in value recorded within “Other income” is excluded from adjusted operating income. As a result of continued growth in these portfolios, the Company implemented a reporting structure in Gibraltar Life that disaggregated the U.S. and Australian dollar-denominated businesses into separate divisions, each with its own functional currency that aligns with the underlying products and investments. The new structure was effective for financial reporting beginning in the first quarter of 2015 and has minimized volatility in reported U.S. GAAP earnings arising from foreign currency remeasurement. Other Activities. The Company excludes certain other items from adjusted operating income that are consistent with similar adjustments described above. Related charges Charges that relate to realized investment gains (losses) are also excluded from adjusted operating income, and include the following: • The portion of the amortization of DAC, VOBA, unearned revenue reserves and DSI for certain products that is related to net realized investment gains (losses). • Policyholder dividends and interest credited to policyholders’ account balances that relate to certain life policies that pass back certain realized investment gains (losses) to the policyholder, and reserves for future policy benefits for certain policies that are affected by net realized investment gains (losses). • Market value adjustments paid or received upon a contractholder’s surrender of certain of the Company’s annuity products as these amounts mitigate the net realized investment gains or losses incurred upon the disposition of the underlying invested assets. Investment gains (losses) on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes Certain products included in the Retirement and International Insurance segments are experience-rated in that investment results associated with these products are expected to ultimately accrue to contractholders. The majority of investments supporting these experience-rated products are classified as trading and are carried at fair value, with realized and unrealized gains (losses) reported in “Other income.” To a lesser extent, these experience-rated products are also supported by derivatives and commercial mortgage and other loans. The derivatives are carried at fair value, with realized and unrealized gains (losses) reported in “Realized investment gains (losses), net.” The commercial mortgage and other loans are carried at unpaid principal, net of unamortized discounts and an allowance for losses, with gains (losses) on sales and changes in the valuation allowance for commercial mortgage and other loans reported in “Realized investment gains (losses), net.” Adjusted operating income excludes net investment gains (losses) on trading account assets supporting insurance liabilities, which is consistent with the exclusion of realized investment gains (losses) with respect to other investments supporting insurance liabilities managed on a consistent basis. In addition, to be consistent with the historical treatment of charges related to realized investment gains (losses) on investments, adjusted operating income also excludes the change in contractholder liabilities due to asset value changes in the pool of investments (including changes in the fair value of commercial mortgage and other loans) supporting these experience-rated contracts, which are reflected in “Interest credited to policyholders’ account balances.” These adjustments are in addition to the exclusion from adjusted operating income of net investment gains (losses) on the related derivatives and commercial mortgage and other loans through “Realized investment gains (losses), net, and related charges and adjustments,” as discussed above. The result of this approach is that adjusted operating income for these products includes net fee revenue and interest spread the Company earns on these experience-rated contracts, and excludes changes in fair value of the pool of investments, both realized and unrealized, that are expected to ultimately accrue to the contractholders. Divested businesses The contribution to income (loss) of divested businesses that have been or will be sold or exited, including businesses that have been placed in wind down, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP, are excluded from adjusted operating income as the results of divested businesses are not considered relevant to understanding the Company’s ongoing operating results. As discussed in Note 1, the Class B Repurchase on January 2, 2015 resulted in the elimination of the separate reporting of the Company’s former Financial Services Businesses and Closed Block Business. As a result of the Class B Repurchase, for the years ended December 31, 2016 and 2015, the Closed Block division, which is comprised of the Closed Block segment, has been accounted for as a divested business because it consists primarily of certain participating insurance and annuity products that the Company ceased selling at demutualization in 2001. See Note 12 for further information on the Closed Block. For the reporting period ending December 31, 2014, the Closed Block segment was reported as the Closed Block Business and was analyzed using U.S. GAAP rather than adjusted operating income. Both the current reporting of the Closed Block division and the historic reporting of the Closed Block Business exclude its results from adjusted operating income. Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Equity in earnings of operating joint ventures, on a pre-tax basis, are included in adjusted operating income as these results are a principal source of earnings. These earnings are reflected on a U.S. GAAP basis on an after-tax basis as a separate line on the Company’s Consolidated Statements of Operations. Earnings attributable to noncontrolling interests are excluded from adjusted operating income. Earnings attributable to noncontrolling interests represents the portion of earnings from consolidated entities that relates to the equity interests of minority investors, and are reflected on a U.S. GAAP basis as a separate line on the Company’s Consolidated Statements of Operations. Reconciliation of adjusted operating income and net income (loss) The table below reconciles adjusted operating income before income taxes to income from continuing operations before income taxes and equity in earnings of operating joint ventures: Year ended December 31, 2016 2015 2014 (in millions) Adjusted operating income before income taxes by segment: Individual Annuities $ 1,765 $ 1,797 $ 1,467 Retirement 1,012 931 1,215 Asset Management 787 779 785 Total U.S. Retirement Solutions and Investment Management division 3,564 3,507 3,467 Individual Life 79 635 498 Group Insurance 220 176 23 Total U.S. Individual Life and Group Insurance division 299 811 521 International Insurance 3,117 3,226 3,252 Total International Insurance division 3,117 3,226 3,252 Corporate and Other operations (1,581 ) (1,313 ) (1,348 ) Total Corporate and Other (1,581 ) (1,313 ) (1,348 ) Total segment adjusted operating income before income taxes 5,399 6,231 5,892 Reconciling Items: Realized investment gains (losses), net, and related adjustments 989 2,258 (3,588 ) Charges related to realized investment gains (losses), net (466 ) (679 ) (542 ) Investment gains (losses) on trading account assets supporting insurance liabilities, net (17 ) (524 ) 339 Change in experience-rated contractholder liabilities due to asset value changes 21 433 (294 ) Divested businesses: Closed Block division(1) (132 ) 58 0 Other divested businesses (84 ) (66 ) 167 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (5 ) 58 44 Subtotal(2) 5,705 7,769 2,018 Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures for Closed Block Business(3) 0 0 (259 ) Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures $ 5,705 $ 7,769 $ 1,759 __________ (1) As a result of the Class B Repurchase, for the years ended December 31, 2016 and 2015, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. (2) Amounts for the year ended December 31, 2014 represent “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” of the Company’s former Financial Services Businesses, reflecting the existence of two classes of common stock and the separate reporting of the Financial Services Businesses and the Closed Block Business for each period. (3) Reflects the existence of two classes of common stock and the separate reporting of the Company’s former Financial Services Businesses and the Closed Block Business for the year ended December 31, 2014. The Individual Annuities segment results reflect DAC as if the individual annuity business is a stand-alone operation. The elimination of intersegment costs capitalized in accordance with this policy is included in consolidating adjustments within Corporate and Other operations. Reconciliation of select financial information The tables below present certain financial information for the Company’s reportable segments: As of December 31, 2016 2015(1) (in millions) Total Assets: Individual Annuities $ 170,861 $ 169,447 Retirement 173,509 171,183 Asset Management 49,255 54,491 Total U.S. Retirement Solutions and Investment Management division 393,625 395,121 Individual Life 77,524 71,856 Group Insurance 40,642 39,344 Total U.S. Individual Life and Group Insurance division 118,166 111,200 International Insurance 197,119 175,153 Total International Insurance division 197,119 175,153 Corporate and Other operations 13,001 13,654 Total Corporate and Other 13,001 13,654 Closed Block 62,051 62,127 Total Closed Block division 62,051 62,127 Total per Consolidated Statements of Financial Position $ 783,962 $ 757,255 __________ (1) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. Year Ended December 31, 2016 Revenues Net Investment Income Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) Individual Annuities $ 4,666 $ 698 $ 306 $ 362 $ 0 $ 71 $ 484 Retirement 12,876 4,263 9,328 1,473 0 19 33 Asset Management 2,961 80 0 0 0 15 15 Total U.S. Retirement Solutions and Investment Management division 20,503 5,041 9,634 1,835 0 105 532 Individual Life 5,355 1,822 2,750 680 35 583 115 Group Insurance 5,343 608 4,032 263 0 5 6 Total U.S. Individual Life and Group Insurance division 10,698 2,430 6,782 943 35 588 121 International Insurance 21,009 4,759 13,183 920 49 8 1,068 Total International Insurance division 21,009 4,759 13,183 920 49 8 1,068 Corporate and Other operations (636 ) 465 26 0 0 614 (49 ) Total Corporate and Other (636 ) 465 26 0 0 614 (49 ) Total 51,574 12,695 29,625 3,698 84 1,315 1,672 Reconciling items: Realized investment gains (losses), net, and related adjustments 989 (31 ) 0 0 0 0 0 Charges related to realized investment gains (losses), net 19 0 131 (50 ) 0 0 168 Investment gains (losses) on trading account assets supporting insurance liabilities, net (17 ) 0 0 0 0 0 0 Change in experience-rated contractholder liabilities due to assets value changes 0 0 0 (21 ) 0 0 0 Divested businesses: Closed Block division(1) 5,669 2,578 3,282 134 1,941 2 37 Other divested businesses 602 278 594 0 0 3 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (57 ) 0 0 0 0 0 0 Total per Consolidated Statements of Operations $ 58,779 $ 15,520 $ 33,632 $ 3,761 $ 2,025 $ 1,320 $ 1,877 __________ (1) As a result of the Class B Repurchase, for the year ended December 31, 2016, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. Year Ended December 31, 2015 Revenues Net Investment Income Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) Individual Annuities $ 4,695 $ 603 $ 314 $ 363 $ 0 $ 69 $ 465 Retirement 11,821 4,082 8,352 1,441 (2 ) 25 66 Asset Management 2,944 111 0 0 0 10 19 Total U.S. Retirement Solutions and Investment Management division 19,460 4,796 8,666 1,804 (2 ) 104 550 Individual Life 5,233 1,669 2,245 644 33 550 133 Group Insurance 5,143 586 3,868 257 0 8 6 Total U.S. Individual Life and Group Insurance division 10,376 2,255 6,113 901 33 558 139 International Insurance 19,364 4,357 11,821 880 51 5 989 Total International Insurance division 19,364 4,357 11,821 880 51 5 989 Corporate and Other operations (570 ) 550 16 0 0 635 (47 ) Total Corporate and Other (570 ) 550 16 0 0 635 (47 ) Total 48,630 11,958 26,616 3,585 82 1,302 1,631 Reconciling items: Realized investment gains (losses), net, and related adjustments 2,258 1 0 0 0 0 0 Charges related to realized investment gains (losses), net (31 ) 0 39 191 0 0 452 Investment gains (losses) on trading account assets supporting insurance liabilities, net (524 ) 0 0 0 0 0 0 Change in experience-rated contractholder liabilities due to assets value changes 0 0 0 (433 ) 0 0 0 Divested businesses: Closed Block division(1) 6,160 2,653 3,365 135 2,130 1 37 Other divested businesses 638 217 607 1 0 3 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (12 ) 0 0 0 0 0 0 Total per Cons |
Commitments and Guarantees, Con
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters | COMMITMENTS AND GUARANTEES, CONTINGENT LIABILITIES AND LITIGATION AND REGULATORY MATTERS Leases The Company occupies leased office space in many locations under various long-term leases and has entered into numerous leases covering the long-term use of computers and other equipment. Rental expense, net of sub-lease income, incurred for the years ended December 31, 2016 , 2015 and 2014 was $252 million , $232 million and $225 million , respectively. The following table presents, at December 31, 2016 , the Company’s future minimum lease payments under non-cancelable operating and capital leases along with associated sub-lease income: Operating and Capital Leases(1) Sub-lease Income (in millions) 2017 $ 150 $ (1 ) 2018 129 0 2019 106 0 2020 80 0 2021 68 0 2022 and thereafter 185 0 Total $ 718 $ (1 ) __________ (1) Future minimum lease payments under capital leases were $ 24 million as of December 31, 2016 . Occasionally, for business reasons, the Company may exit certain non-cancelable operating leases prior to their expiration. In these instances, the Company’s policy is to accrue, at the time it ceases to use the property being leased, the future rental expense net of any expected sub-lease income, and to release this reserve over the remaining commitment period. Of the total non-cancelable operating and capital leases amounts listed above, $2 million has been accrued as of December 31, 2016 . There were no accruals of sub-lease income as of December 31, 2016 . Commercial Mortgage Loan Commitments As of December 31, 2016 2015 (in millions) Total outstanding mortgage loan commitments $ 1,984 $ 2,272 Portion of commitment where prearrangement to sell to investor exists $ 454 $ 721 In connection with the Company’s commercial mortgage operations, it originates commercial mortgage loans. Commitments for loans that will be held for sale are recognized as derivatives and recorded at fair value. In certain of these transactions, the Company pre-arranges that it will sell the loan to an investor, including to government sponsored entities as discussed below, after the Company funds the loan. Commitments to Purchase Investments (excluding Commercial Mortgage Loans) As of December 31, 2016 2015 (in millions) Expected to be funded from the general account and other operations outside the separate accounts(1) $ 6,002 $ 3,787 Expected to be funded from separate accounts $ 374 $ 92 __________ (1) Includes a remaining commitment of $121 million and $152 million at December 31, 2016 and 2015 , respectively, related to the Company’s agreement to co-invest with the Fosun Group in a private equity fund, managed by the Fosun Group, for the Chinese marketplace. The Company has other commitments to purchase or fund investments, some of which are contingent upon events or circumstances not under the Company’s control, including those at the discretion of the Company’s counterparties. The Company anticipates a portion of these commitments will ultimately be funded from its separate accounts. Indemnification of Securities Lending Transactions As of December 31, 2016 2015 (in millions) Indemnification provided to mutual fund, trust fund, and insurance company separate account clients for securities lending $ 5,352 $ 15,084 Fair value of related collateral associated with above indemnifications $ 5,465 $ 15,508 Accrued liability associated with guarantee $ 0 $ 0 In the normal course of business, the Company may facilitate securities lending transactions on behalf of mutual funds, trust funds, and insurance company separate account clients (collectively, “the accounts”) for which the Company is the investment advisor and/or the asset manager. In certain of these arrangements, the Company has provided an indemnification to the accounts to hold them harmless against losses caused by counterparty (i.e., borrower) defaults associated with the securities lending activity facilitated by the Company. Collateral is provided by the counterparty to the accounts at the inception of the loan equal to or greater than 102% of the fair value of the loaned securities and the collateral is maintained daily at 102% or greater of the fair value of the loaned securities. The Company is only at risk if the counterparty to the securities lending transaction defaults and the value of the collateral held is less than the value of the securities loaned to such counterparty. The Company believes the possibility of any payments under these indemnities is remote. Credit Derivatives Written As discussed further in Note 21, the Company writes credit derivatives under which the Company is obligated to pay the counterparty the referenced amount of the contract and receive in return the defaulted security or similar security. Guarantees of Asset Values As of December 31, 2016 2015 (in millions) Guaranteed value of third parties’ assets $ 77,197 $ 72,585 Fair value of collateral supporting these assets $ 77,760 $ 73,634 Asset associated with guarantee, carried at fair value $ 5 $ 7 Certain contracts underwritten by the Retirement segment include guarantees related to financial assets owned by the guaranteed party. These contracts are accounted for as derivatives and carried at fair value. The collateral supporting these guarantees is not reflected on the Company’s balance sheet. Indemnification of Serviced Mortgage Loans As of December 31, 2016 2015 (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 1,371 $ 1,200 First-loss exposure portion of above $ 416 $ 371 Accrued liability associated with guarantees $ 13 $ 14 As part of the commercial mortgage activities of the Company’s Asset Management segment, the Company provides commercial mortgage origination, underwriting and servicing for certain government sponsored entities, such as Fannie Mae and Freddie Mac. The Company has agreed to indemnify the government sponsored entities for a portion of the credit risk associated with certain of the mortgages it services through a delegated authority arrangement. Under these arrangements, the Company originates multi-family mortgages for sale to the government sponsored entities based on underwriting standards they specify, and makes payments to them for a specified percentage share of losses they incur on certain loans serviced by the Company. The Company’s percentage share of losses incurred generally varies from 2% to 20% of the loan balance, and is typically based on a first-loss exposure for a stated percentage of the loan balance, plus a shared exposure with the government sponsored entity for any losses in excess of the stated first-loss percentage, subject to a contractually specified maximum percentage. The Company determines the liability related to this exposure using historical loss experience, size and remaining life of the asset. The Company services $11,445 million and $9,833 million of mortgages subject to these loss-sharing arrangements as of December 31, 2016 and 2015, respectively, all of which are collateralized by first priority liens on the underlying multi-family residential properties. As of December 31, 2016 , these mortgages had a weighted-average debt service coverage ratio of 1.82 times and a weighted-average loan-to-value ratio of 59% . As of December 31, 2015 , these mortgages had a weighted-average debt service coverage ratio of 1.96 times and a weighted-average loan-to-value ratio of 61% . The Company’s total share of losses related to indemnifications that were settled was $0 million , $1 million , and $1 million for the years ended December 31, 2016 , 2015 , and 2014 , respectively. Other Guarantees As of December 31, 2016 2015 (in millions) Other guarantees where amount can be determined $ 58 $ 324 Accrued liability for other guarantees and indemnifications $ 3 $ 4 The Company is also subject to other financial guarantees and indemnity arrangements. The Company has provided indemnities and guarantees related to acquisitions, dispositions, investments and other transactions that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or applicable. Included above are $51 million and $317 million as of December 31, 2016 and 2015 , respectively, of yield maintenance guarantees related to certain investments the Company sold. The Company does not expect to make any payments on these guarantees and is not carrying any liabilities associated with these guarantees. Since certain of these obligations are not subject to limitations, it is not possible to determine the maximum potential amount due under these guarantees. The accrued liabilities identified above do not include retained liabilities associated with sold businesses. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guarantee associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. In addition, Japan has established the Japan Policyholders Protection Corporation as a contingency to protect policyholders against the insolvency of life insurance companies in Japan through assessments to companies licensed to provide life insurance. Assets and liabilities held for insolvency assessments were as follows: As of December 31, 2016 2015 (in millions) Other assets: Premium tax offset for future undiscounted assessments $ 78 $ 79 Premium tax offsets currently available for paid assessments 6 6 Total $ 84 $ 85 Other liabilities: Insolvency assessments $ 52 $ 39 Contingent Liabilities On an ongoing basis, the Company’s internal supervisory and control functions review the quality of sales, marketing and other customer interface procedures and practices and may recommend modifications or enhancements. From time to time, this review process results in the discovery of product administration, servicing or other errors, including errors relating to the timing or amount of payments or contract values due to customers or other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “––Litigation and Regulatory Matters” below. It is possible that the results of operations or the cash flow of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flow for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its businesses. Pending legal and regulatory actions include proceedings relating to aspects of the Company’s businesses and operations that are specific to it and proceedings that are typical of the businesses in which it operates, including in both cases businesses that have been either divested or placed in wind down status. Some of these proceedings have been brought on behalf of various alleged classes of complainants. In certain of these matters, the plaintiffs are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established but the matter, if material, is disclosed, including matters discussed below. The Company estimates that as of December 31, 2016 , the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $250 million . Any estimate is not an indication of expected loss, if any, or the Company’s maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. Individual Annuities, Individual Life and Group Insurance Wells Fargo MyTerm Sales In December 2016, the Company announced that it suspended sales of its MyTerm life insurance product through Wells Fargo pending completion of a Company-initiated review of how the product was being sold through Wells Fargo. The Company has offered to reimburse the full amount of premium with interest, to any Wells Fargo customers with concerns about the way in which the product was purchased. Wells Fargo distributed the product from June 2014 until sales were suspended, and total annualized new business premiums associated with sales through Wells Fargo were approximately $4 million . The Company has received inquiries, requests for information, a subpoena and a civil investigative demand related to this matter from state and federal regulators, including its lead state insurance regulator NJDOBI, state attorneys general and federal legislators, and the Company is responding to these requests. The Company has also received a shareholder demand for certain books and records under New Jersey law. Litigation related to this matter is described below. The Company may become subject to additional regulatory inquiries and other investigations and actions, shareholder demands and litigation related to this matter. The Company has provided notice to Wells Fargo that it may seek indemnification under the MyTerm distribution agreement between the parties. Broderick v. The Prudential Insurance Company of America, et al. In December 2016, a complaint entitled Julie Han Broderick, Darron Smith and Thomas Schreck v. The Prudential Insurance Company of America, et al., was filed in the Superior Court of New Jersey, Law Division - Essex County. The complaint: (i) alleges that Defendants terminated Plaintiffs’ employment for engaging in whistleblowing conduct involving the sale of MyTerm policies through Wells Fargo and violated New Jersey’s Conscientious Employee Protection Act; and (ii) seeks back and front pay, compensatory and punitive damages and attorneys’ fees and costs. In January 2017, Defendants filed an Answer to the Complaint. Alex Perea, individually and on behalf of all others similarly situated v. The Prudential Insurance Company of America, et al. In December 2016, a putative class action complaint entitled Alex Perea, individually and on behalf of all others similarly situated v. The Prudential Insurance Company of America, Pruco Life Insurance Company of New Jersey, and Pruco Life Insurance Company , was filed in the United States District Court for the District of New Jersey. The complaint: (i) alleges that Defendants conspired with Wells Fargo to sell a life insurance product to Wells Fargo customers without their knowledge or consent and violated federal law (Racketeer Influenced and Corrupt Organizations Act (“RICO”)) and New Jersey law (Consumer Fraud Act); and (ii) seeks injunctive relief, compensatory damages, exemplary and statutory penalties, treble damages, interest and attorneys’ fees and costs. In January 2017, plaintiff filed an amended complaint in the United States District Court for the District of New Jersey, alleging the same claims contained in the Complaint. Escheatment Litigation State of West Virginia ex. Rel. John D. Perdue v. Prudential Insurance Company of America In September 2012, the State of West Virginia, through its State Treasurer, filed a lawsuit against Prudential Insurance in the Circuit Court of Putnam County, West Virginia. The complaint alleges violations of the West Virginia Uniform Unclaimed Property Fund Act by failing to properly identify and report all unclaimed insurance policy proceeds which should either be paid to beneficiaries or escheated to West Virginia. The complaint seeks to examine the records of Prudential Insurance to determine compliance with the West Virginia Uniform Unclaimed Property Fund Act, and to assess penalties and costs in an undetermined amount. In June 2015, the West Virginia Supreme Court issued a decision: (i) reversing the trial court’s dismissal of the West Virginia Treasurer’s complaint alleging violations of West Virginia’s unclaimed property law; and (ii) remanding the case to the Circuit Court of Putnam County for proceedings consistent with its decision. In July 2015, a petition for rehearing was filed with the West Virginia Supreme Court. In September 2015, the West Virginia Supreme Court of Appeals denied Prudential Insurance’s rehearing petition. In November 2015, Prudential Insurance filed its answer. State of West Virginia ex. Rel. John D. Perdue v. Pruco Life In October 2012, the State of West Virginia commenced a second action against Pruco Life making the same allegations stated in the action against Prudential Insurance. In April 2013, Pruco Life filed motions to dismiss the complaints in both of the West Virginia actions. In December 2013, the Court granted Pruco Life’s motions and dismissed the complaints with prejudice. In January 2014, the State of West Virginia appealed the decisions. In June 2015, the West Virginia Supreme Court issued a decision: (i) reversing the trial court’s dismissal of the West Virginia Treasurer’s complaint alleging violations of West Virginia’s unclaimed property law; and (ii) remanding the case to the Circuit Court of Putnam County for proceedings consistent with its decision. In July 2015, a petition for rehearing was filed with the West Virginia Supreme Court. In September 2015, the West Virginia Supreme Court of Appeals denied Pruco Life’s rehearing petition. In November 2015, Pruco Life filed its answer. Escheatment Audit and Claims Settlement Practices Market Conduct Exam In January 2012, a Global Resolution Agreement entered into by the Company and a third-party auditor became effective upon its acceptance by the unclaimed property departments of 20 states and jurisdictions. Under the terms of the Global Resolution Agreement, the third-party auditor acting on behalf of the signatory states will compare expanded matching criteria to the Social Security Master Death File (“SSMDF”) to identify deceased insureds and contractholders where a valid claim has not been made. In February 2012, a Regulatory Settlement Agreement entered into by the Company to resolve a multi-state market conduct examination regarding its adherence to state claim settlement practices became effective upon its acceptance by the insurance departments of 20 states and jurisdictions. The Regulatory Settlement Agreement applies prospectively and requires the Company to adopt and implement additional procedures comparing its records to the SSMDF to identify unclaimed death benefits and prescribes procedures for identifying and locating beneficiaries once deaths are identified. Substantially all other jurisdictions that are not signatories to the Global Resolution Agreement or the Regulatory Settlement Agreement have entered into similar agreements with the Company. The New York Attorney General has subpoenaed the Company, along with other companies, regarding its unclaimed property procedures and may ultimately seek remediation and other relief, including damages. Additionally, the New York Office of Unclaimed Funds is conducting an audit of the Company’s compliance with New York’s unclaimed property laws. Huffman v. The Prudential Insurance Company of America In September 2010, Huffman v. The Prudential Insurance Company of America , a purported nationwide class action brought on behalf of beneficiaries of group life insurance contracts owned by the Employee Retirement Income Security Act (“ERISA”)-governed employee welfare benefit plans was filed in the United States District Court for the Eastern District of Pennsylvania, challenging the use of retained asset accounts in employee welfare benefit plans to settle death benefit claims as a violation of ERISA and seeking injunctive relief and disgorgement of profits. In July 2011, Prudential Insurance’s motion for judgment on the pleadings was denied. In February 2012, plaintiffs filed a motion to certify the class. In April 2012, the Court stayed the case pending the outcome of a case involving another insurer that is before the Third Circuit Court of Appeals. In August 2014, the Court lifted the stay, and in September 2014, Plaintiffs filed a motion seeking leave to amend the complaint. In July 2015, the Court granted plaintiffs’ motion to file an amended complaint. Plaintiffs’ Amended Complaint added two new class representatives, a new common law breach of fiduciary duty claim, and a prohibited transactions claim under Section 406(a)(1)(C) of ERISA. In August 2015, Prudential Insurance filed its answer to the First Amended Complaint. In February 2016, Plaintiffs filed a class certification motion. In September 2016, Plaintiffs’ motion for class certification was denied, and in October 2016, Plaintiffs filed a motion for reconsideration. In December 2016, the motion for reconsideration was denied. Other Matters Securities Lending Matter In 2016, the Company self-reported to the SEC, and notified other regulators, that in some cases it failed to maximize securities lending income due to a long-standing restriction benefiting the Company that limited the availability of loanable securities for certain separate account investments. The Company has removed the restriction and substantially implemented a remediation plan for the benefit of customers. The Company intends to complete the remediation process. The remediation plan remains subject to regulatory review and the Company is cooperating with regulators in their review of this matter. Wood II, et al. v. PRIAC In December 2015, a putative class action complaint entitled, Leonard D. Wood II on behalf of the KeHe Distributors, Inc. 401(k) Retirement Saving Non-Union Plan and Maya Shaw on behalf of the Exco Resources, Inc. 401(k) Plan and all other similarly situated ERISA-covered employee pension benefit plans v. PRIAC was filed in the United States District Court, District of Connecticut. The complaint: (i) seeks certification of a class of all ERISA-covered employee pension benefit plans whose plan assets were invested in group annuity contract stable value funds within six years prior to, on, or after December 3, 2015; and (ii) alleges that PRIAC breached its fiduciary obligations and accepted excessive compensation by crediting rates on the stable value accounts that are less than PRIAC's internal rate of return on those plan assets without disclosing this spread to the plans. In February 2016, PRIAC filed a motion to dismiss the complaint. In September 2016, the Court issued a decision: (i) denying PRIAC’s motion to dismiss the claim alleging that it is a fiduciary under ERISA; and (ii) granting PRIAC’s motion to dismiss the claim alleging non-fiduciary liability. In October 2016, PRIAC filed its Answer. In January 2017, Plaintiffs filed a motion for class certification. In February 2017, the court granted the unopposed motion of plaintiff Wood on behalf of the KeHe plan to dismiss the case as to the KeHe plan without prejudice. Muir v. PRIAC, et al. In February 2016, a putative class action complaint entitled Randall C. Muir, on behalf of the Ferguson Enterprises, Inc. 401(k) Retirement Savings Plan and All Other Similarly Situated Plans v. PRIAC, Prudential Bank & Trust, FSB, and Prudential Investment Management Services, LLC, was filed in the United States District Court, District of Connecticut. The complaint: (i) seeks certification of a class of all ERISA-covered employee pension benefit plans with which Prudential has maintained a contractual relationship based on a group annuity contract or group funding agreement; and (ii) alleges that the defendants breached their fiduciary obligations by accepting revenue sharing payments from investment vehicles in its separate accounts and/or by accepting excessive compensation by crediting rates on stable value accounts that are less than PRIAC’s internal rate of return. In April 2016, Plaintiff filed an unopposed motion to consolidate this lawsuit with the Rosen lawsuit. In May 2016, the Court granted the unopposed motion to consolidate the Muir and Rosen lawsuits. The Muir case has been removed from the Court’s docket. In November 2016, Plaintiff filed a Notice of Voluntary Dismissal without Prejudice. Rosen v. PRIAC, et al. In December 2015, a putative class action complaint entitled Richard A. Rosen, on behalf of the Ferguson Enterprises, Inc. 401(k) Retirement Savings Plan and On behalf of All Other Similarly Situated Employee Benefit Plans v. PRIAC, Prudential Bank & Trust, FSB and Prudential Investment Management Services, LLC was filed in the United States District Court, District of Connecticut. The complaint: (i) seeks certification of a class of all ERISA-covered employee pension benefit plans with which Prudential has maintained a contractual relationship based on a group annuity contract or group funding agreement; and (ii) alleges that the defendants breached their fiduciary obligations by accepting revenue sharing payments from investment vehicles in its separate accounts and/or by accepting excessive compensation by crediting rates on stable value accounts that are less than PRIAC’s internal rate of return. In April 2016, Plaintiff filed an amended complaint: (i) removing Prudential Investment Management Services, LLC, as a defendant; (ii) withdrawing all claims concerning Stable Value Accounts; and (iii) adding as defendants the employer/sponsor of Plaintiff’s retirement plan (Ferguson Enterprises, Inc.), and the investment advisor for Plaintiff’s retirement plan (Capital Partners, LLC d/b/a Captrust Financial Advisors). In May 2016, the Muir v. PRIAC complaint was consolidated with this lawsuit. In June 2016, PRIAC, along with the other named defendants, filed motions to dismiss the amended complaint. In December 2016, the court granted defendants’ motions to dismiss with prejudice. In January 2017, Plaintiffs filed a Notice of Appeal to the Second Circuit. North Valley GI Medical Group v. Prudential Investments LLC In October 2015, an action was filed in the U.S. District Court for the District of Maryland bearing the caption North Valley GI Medical Group, et al. v. Prudential Investments LLC. This complaint is brought by shareholders in six different mutual funds, and alleges that Prudential Investments breached its fiduciary duty by receiving excessive investment advisory fees from each of the funds. The complaint seeks injunctive relief, compensatory damages, rescission of Prudential Investments’ management agreements with the funds, and attorneys’ fees and costs. In January 2016, Prudential Investments filed a motion to dismiss the complaint. In August 2016, the Court denied the motion to dismiss the complaint. In February 2017, the parties entered into a Stipulation of Dismissal with Prejudice. Bouder v. PFI In October 2006, a purported class action lawsuit, Bouder v. Prudential Financial, Inc. and Prudential Insurance Company of America , was filed in the United States District Court for the District of New Jersey, claiming that Prudential failed to pay overtime to insurance agents in violation of federal and Pennsylvania law, and that improper deductions were made from these agents’ wages in violation of state law. The complaint sought back overtime pay and statutory damages, recovery of improper deductions, interest, and attorneys’ fees. In March 2008, the court conditionally certified a nationwide class on the federal overtime claim. Separately, in March 2008, a purported nationwide class action lawsuit was filed in the United States District Court for the Southern District of California, Wang v. Prudential Financial, Inc. and Prudential Insurance, claiming that the Company failed to pay its agents overtime and provide other benefits in violation of California and federal law and seeking compensatory and punitive damages in unspecified amounts. In September 2008, Wang was transferred to the United States District Court for the District of New Jersey and consolidated with the Bouder matter. Subsequent amendments to the complaint resulted in additional allegations involving purported violations of an additional nine states’ overtime and wage payment laws. In February 2010, Prudential moved to decertify the federal overtime class that had been conditionally certified in March 2008 and moved for summary judgment on the federal overtime claims of the named plaintiffs. In July 2010, plaintiffs filed a motion for class certification of the state law claims. In August 2010, the district court granted Prudential’s motion for summary judgment, dismissing the federal overtime claims. In January 2013, the Court denied plaintiffs’ motion for class certification in its entirety. In July 2013, the Court granted plaintiffs’ motion for reconsideration, permitting plaintiffs to file a motion to certify a class of employee insurance agents seeking recovery under state wage and hour laws. In September 2013, plaintiffs filed a renewed motion for class certification. In February 2015, the federal District Court for New Jersey granted in part, and denied in part, plaintiffs’ renewed class certification motion. It certified for class treatment plaintiffs’ wage payment claims which include allegations that the Company made improper deductions from the wages of its former common law agents in California, New York, and Pennsylvania, and its financial services associates in California and New York. The Court denied plaintiffs’ attempt to certify a class based on the Company’s alleged failure to pay overtime to its former common law agents and its financial services associates in California, Illinois, New York and Pennsylvania. In March 2015, the Company filed a motion requesting that the Court reconsider its decision to partially grant plaintiffs’ renewed class certification motion with regard to its former common law agents. Financial Disclosures Concerning Death Benefits and Unclaimed Property City of Sterling Heights General Employees’ Retirement System v. Prudential Financial, Inc., et al. In August 2012, a purported class action lawsuit, was filed in the United States District Court for the District of New Jersey, alleging violations of federal securities law. The complaint names as defendants the Company’s Chief Executive Officer, the Chief Financial Officer, the Principal Accounting Officer and certain members of the Company’s Board of Directors. The complaint alleges that knowingly false and misleading statements were made regarding the Company’s current and future financial condition based on, among other things, the alleged failure to disclose: (i) potential liability for benefits that should either have been paid to policyholders or their beneficiaries, or escheated to applicable states; and (ii) the extent of the Company’s exposure for alleged state and federal law |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 (in millions, except per share amounts) 2016 Total revenues $ 14,329 $ 14,439 $ 16,961 $ 13,050 Total benefits and expenses 12,597 13,098 14,646 12,733 Income (loss) from continuing operations 1,369 925 1,832 293 Income (loss) from discontinued operations 0 0 0 0 Net income (loss) 1,369 925 1,832 293 Less: Income attributable to noncontrolling interests 33 4 5 9 Net income (loss) attributable to Prudential Financial, Inc. $ 1,336 $ 921 $ 1,827 $ 284 Basic earnings per share—Common Stock(1): Income (loss) from continuing operations attributable to Prudential Financial, Inc. $ 2.97 $ 2.06 $ 4.14 $ 0.65 Income (loss) from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 Net income (loss) attributable to Prudential Financial, Inc. $ 2.97 $ 2.06 $ 4.14 $ 0.65 Diluted earnings per share—Common Stock(1): Income (loss) from continuing operations attributable to Prudential Financial, Inc. $ 2.93 $ 2.04 $ 4.07 $ 0.65 Income (loss) from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 Net income (loss) attributable to Prudential Financial, Inc. $ 2.93 $ 2.04 $ 4.07 $ 0.65 2015 Total revenues $ 15,552 $ 13,712 $ 13,599 $ 14,256 Total benefits and expenses 12,804 11,583 11,550 13,413 Income (loss) from continuing operations 2,046 1,459 1,467 740 Income (loss) from discontinued operations 0 0 0 0 Net income (loss) 2,046 1,459 1,467 740 Less: Income attributable to noncontrolling interests 10 53 2 5 Net income (loss) attributable to Prudential Financial, Inc. $ 2,036 $ 1,406 $ 1,465 $ 735 Basic earnings per share—Common Stock(1): Income (loss) from continuing operations attributable to Prudential Financial, Inc. $ 4.44 $ 3.07 $ 3.22 $ 1.62 Income (loss) from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 Net income (loss) attributable to Prudential Financial, Inc. $ 4.44 $ 3.07 $ 3.22 $ 1.62 Diluted earnings per share—Common Stock(1): Income (loss) from continuing operations attributable to Prudential Financial, Inc. $ 4.37 $ 3.03 $ 3.16 $ 1.60 Income (loss) from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 Net income (loss) attributable to Prudential Financial, Inc. $ 4.37 $ 3.03 $ 3.16 $ 1.60 __________ (1) Quarterly earnings per share amounts may not add to the full year amounts due to the averaging of shares. Results for the second quarter of 2016 included total pre-tax out of period adjustments of $153 million which primarily consisted of a charge of $148 million to increase reserves, net of a related increase in DAC, for certain universal life products within the Individual Life business. Management evaluated the adjustment and concluded it was not material to the second quarter or to any previously reported quarterly or annual financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Common Stock Dividend Declaration On February 8, 2017, Prudential Financial’s Board of Directors declared a cash dividend of $0.75 per share of Common Stock, payable on March 16, 2017 to shareholders of record as of February 22, 2017. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than investments in Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other Than investments in Related Parties | PRUDENTIAL FINANCIAL, INC. Schedule I Summary of Investments Other Than Investments in Related Parties As of December 31, 2016 (in millions) Type of Investment Cost(1) Fair Value Amount shown in the Balance Sheet Fixed maturities, available-for-sale: Bonds: United States government and government agencies and authorities $ 21,505 $ 23,784 $ 23,784 States, municipalities and political subdivisions 9,060 9,692 9,692 Foreign governments 79,862 96,256 96,256 Asset-backed securities 11,759 11,935 11,935 Residential mortgage-backed securities 4,308 4,532 4,532 Commercial mortgage-backed securities 12,589 12,704 12,704 Public utilities 23,101 24,606 24,606 Certificates of deposit 31 30 30 All other corporate bonds 129,866 137,341 137,341 Redeemable preferred stock 500 539 539 Total fixed maturities, available-for-sale $ 292,581 $ 321,419 $ 321,419 Fixed maturities, held-to-maturity: Bonds: Foreign governments $ 839 $ 1,101 $ 839 Residential mortgage-backed securities 573 616 573 Commercial mortgage-backed securities 0 0 0 All other corporate bonds 732 807 732 Total fixed maturities, held-to-maturity $ 2,144 $ 2,524 $ 2,144 Equity securities: Common Stocks: Public utilities $ 108 $ 138 $ 138 Banks, trust and insurance companies 1,182 1,852 1,852 Industrial, miscellaneous and other 5,845 7,745 7,745 Nonredeemable preferred stocks 14 13 13 Total equity securities, available-for-sale $ 7,149 $ 9,748 $ 9,748 Trading account assets supporting insurance liabilities(2)(3) $ 21,840 $ 21,840 Other trading account assets(2) 5,764 5,764 Commercial mortgage and other loans(4) 52,779 52,779 Policy loans 11,755 11,755 Short-term investments(5) 7,508 7,508 Other long-term investments 11,283 11,283 Total investments $ 412,803 $ 444,240 __________ (1) Original cost of equities reduced by impairment and, as to fixed maturities, original cost reduced by repayments and impairments and adjusted for amortization of premiums and accretion of discounts. (2) At fair value. (3) See Note 4 to the Consolidated Financial Statements for the composition of the Company’s “Trading account assets supporting insurance liabilities, at fair value.” (4) At carrying value, net of allowance for losses. Includes commercial mortgage and other collateralized loans of $52,147 million and uncollateralized loans of $632 million . (5) “Short-term investments” include securities purchased under agreements to resell. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | PRUDENTIAL FINANCIAL, INC. Schedule II Condensed Financial Information of Registrant Condensed Statements of Financial Positions as of December 31, 2016 and 2015 (in millions) 2016 2015 ASSETS Investment contracts from subsidiaries $ 1 $ 1 Fixed maturities, available for sale, at fair value (amortized cost: 2016- $1,105; 2015- $0) 1,071 0 Other investments 3,215 1,691 Total investments 4,287 1,692 Cash and cash equivalents 1,116 9,437 Due from subsidiaries 1,836 1,723 Loans receivable from subsidiaries 6,719 6,122 Investment in subsidiaries 54,422 50,625 Property, plant and equipment 559 579 Other assets(1) 384 595 TOTAL ASSETS $ 69,323 $ 70,773 LIABILITIES AND EQUITY LIABILITIES Due to subsidiaries $ 2,585 $ 7,664 Loans payable to subsidiaries 4,295 3,248 Short-term debt 535 831 Long-term debt(1) 15,389 16,354 Income taxes payable 0 0 Other liabilities 656 786 Total liabilities 23,460 28,883 EQUITY Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued) 0 0 Common Stock ($.01 par value; 1,500,000,000 shares authorized; 660,111,339 shares issued as of both December 31, 2016 and 2015) 6 6 Additional paid-in capital 24,606 24,482 Common Stock held in treasury, at cost (230,537,166 and 213,009,970 shares as of December 31, 2016 and 2015, respectively) (15,316 ) (13,814 ) Accumulated other comprehensive income (loss) 14,621 12,285 Retained earnings 21,946 18,931 Total equity 45,863 41,890 TOTAL LIABILITIES AND EQUITY $ 69,323 $ 70,773 __________ (1) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 to the Consolidated Financial Statements for additional information. See Notes to Condensed Financial Information of Registrant PRUDENTIAL FINANCIAL, INC. Schedule II Condensed Financial Information of Registrant Condensed Statements of Operations for the Years Ended December 31, 2016 , 2015 and 2014 (in millions) 2016 2015 2014 REVENUES Net investment income $ 61 $ 19 $ 7 Realized investment gains (losses), net (126 ) (98 ) (793 ) Affiliated interest revenue 353 353 417 Other income (loss) (2 ) 28 146 Total revenues 286 302 (223 ) EXPENSES General and administrative expenses 101 170 59 Interest expense 1,106 1,080 1,075 Total expenses 1,207 1,250 1,134 LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES (921 ) (948 ) (1,357 ) Total income tax expense (benefit) (320 ) (396 ) (492 ) LOSS FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES (601 ) (552 ) (865 ) Equity in earnings of subsidiaries 4,969 6,194 2,246 INCOME (LOSS) FROM CONTINUING OPERATIONS 4,368 5,642 1,381 Income (loss) from discontinued operations, net of taxes 0 0 0 NET INCOME (LOSS) $ 4,368 $ 5,642 $ 1,381 Other Comprehensive Income (loss) 2,336 (3,765 ) 7,369 TOTAL COMPREHENSIVE INCOME (LOSS) $ 6,704 $ 1,877 $ 8,750 See Notes to Condensed Financial Information of Registrant PRUDENTIAL FINANCIAL, INC. Schedule II Condensed Financial Information of Registrant Condensed Statements of Cash Flows for the Years Ended December 31, 2016 , 2015 and 2014 (in millions) 2016 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 4,368 $ 5,642 $ 1,381 Adjustments to reconcile net income to cash provided by operating activities: Equity in earnings of subsidiaries (4,969 ) (6,194 ) (2,246 ) Realized investment (gains) losses, net 126 98 793 Dividends received from subsidiaries 2,828 4,557 2,218 Property, plant and equipment (13 ) (579 ) 0 Change in: Due to/from subsidiaries, net (5,109 ) (493 ) 5,718 Other, operating 167 (380 ) 647 Cash flows from (used in) operating activities (2,602 ) 2,651 8,511 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from the sale/maturity of: Short-term investments 17,575 13,700 10,207 Payments for the purchase of: Fixed maturities, available for sale (1,106 ) 0 0 Short-term investments (19,111 ) (13,002 ) (11,394 ) Capital contributions to subsidiaries (2,018 ) (2,545 ) (3,065 ) Returns of capital contributions from subsidiaries 2,755 75 258 Loans to subsidiaries, net of maturities (596 ) 2,056 925 Other, investing 1 244 21 Cash flows from (used in) investing activities (2,500 ) 528 (3,048 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid on Common Stock (1,300 ) (1,117 ) (1,008 ) Cash dividends paid on Class B Stock 0 0 (19 ) Common Stock acquired (2,000 ) (1,664 ) (999 ) Common Stock reissued for exercise of stock options 426 209 269 Proceeds from the issuance of debt (maturities longer than 90 days) 30 1,332 2,063 Repayments of debt (maturities longer than 90 days) (1,319 ) (2,404 ) (1,659 ) Repayments of loans from subsidiaries (390 ) (102 ) (241 ) Proceeds from loans payable to subsidiaries 1,405 1,316 558 Net change in financing arrangements (maturities of 90 days or less) 14 8 (94 ) Excess tax benefits from share-based payment arrangements 10 3 7 Other, financing (95 ) (15 ) (18 ) Cash flows from (used in) financing activities (3,219 ) (2,434 ) (1,141 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (8,321 ) 745 4,322 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 9,437 8,692 4,370 CASH AND CASH EQUIVALENTS, END OF YEAR $ 1,116 $ 9,437 $ 8,692 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the period for interest $ 1,002 $ 1,048 $ 1,036 Cash paid (refunds received) during the period for taxes $ (544 ) $ 46 $ (1,231 ) NON-CASH TRANSACTIONS DURING THE YEAR Non-cash capital contributions to subsidiaries $ (4,158 ) $ 1,453 $ 100 Non-cash dividends from subsidiaries $ 4,142 $ 1,335 $ 650 Treasury Stock shares issued for stock-based compensation programs $ 115 $ 115 $ 100 See Notes to Condensed Financial Information of Registrant PRUDENTIAL FINANCIAL, INC. Schedule II Condensed Financial Information of Registrant Notes to Condensed Financial Information of Registrant 1. ORGANIZATION AND PRESENTATION Prudential Financial, Inc. (“Prudential Financial”) was incorporated on December 28, 1999, as a wholly-owned subsidiary of The Prudential Insurance Company of America (“Prudential Insurance”). On December 18, 2001, Prudential Insurance converted from a mutual life insurance company to a stock life insurance company and became an indirect, wholly-owned subsidiary of Prudential Financial. The condensed financial statements of Prudential Financial reflect its direct wholly-owned subsidiaries using the equity method of accounting. Certain amounts in prior years have been reclassified to conform to the current year presentation. 2. OTHER INVESTMENTS Prudential Financial’s other investments as of December 31, 2016 consisted of highly liquid debt investments and intercompany enterprise liquidity account funds. Other investments as of December 31, 2015 consisted of money market funds. 3. DEBT A summary of Prudential Financial’s short- and long-term debt is as follows: December 31, Maturity Dates Rate(2) 2016 2015(1) ($ in millions) Short-term debt: Commercial paper(3) $ 65 $ 80 Current portion of long-term debt 470 751 Total short-term debt $ 535 $ 831 Long-term debt: Fixed rate senior notes 2017-2045 2.30%-7.38% $ 9,064 $ 10,035 Floating rate senior notes 2018-2020 1.14%-4.39% 508 508 Junior subordinated notes 2042-2068 5.20%-8.88% 5,817 5,811 Total long-term debt $ 15,389 $ 16,354 __________ (1) Prior period has been revised to conform to current period presentation due to the adoption of ASU 2015-03 regarding debt issuance costs. For more information, see Note 2 to the Consolidated Financial Statements. (2) Ranges of interest rates are for the year ended December 31, 2016 . (3) The weighted average interest rate on outstanding commercial paper was 0.63% and 0.4% at December 31, 2016 and 2015 , respectively. Long-term Debt In order to modify exposure to interest rate movements, Prudential Financial utilizes derivative instruments, primarily interest rate swaps, in conjunction with some of its debt issues. The impact of these derivative instruments are not reflected in the rates presented in the table above. For those derivatives that qualify for hedge accounting treatment, interest expense increased by $2 million , $3 million , and $2 million for each of the years ended December 31, 2016 , 2015 and 2014, respectively. Schedule of Long-term Debt Maturities The following table presents Prudential Financial’s contractual maturities for long-term debt as of December 31, 2016 : Calendar Year 2018 2019 2020 2021 2022 and thereafter Total ($ in millions) Long-term debt $ 831 $ 1,100 $ 1,179 $ 400 $ 11,879 $ 15,389 4. DIVIDENDS AND RETURNS OF CAPITAL For the years ended December 31, Prudential Financial received cash dividends and/or returns of capital from the following companies: 2016 2015 2014(1) (in millions) Pruco Reinsurance $ 1,298 $ 0 $ 0 Prudential Annuities Holding Company 98 102 102 International Insurance and Investments Holding Companies 1,171 1,818 966 Prudential Insurance Company of America(2) 900 1,950 400 Prudential Asset Management Holding Company 746 266 578 Prudential Annuities Life Assurance Corporation 1,140 450 342 Other Holding Companies 231 46 88 Total $ 5,584 $ 4,632 $ 2,476 __________ (1) Amounts for International Insurance and Investments Holding Companies, Prudential Asset Management Holding Company and Other Holding Companies have been revised to correct previously reported amounts of $526 million , $588 million and $620 million , respectively. (2) For periods ending December 31, 2015 and 2014, the amounts presented were passed through from Prudential Insurance to Prudential Holdings, LLC., which is now dissolved. 5. COMMITMENTS AND GUARANTEES Prudential Financial has issued a subordinated guarantee covering a subsidiary’s domestic commercial paper program. As of December 31, 2016 , there was $525 million outstanding under this commercial paper program. Prudential Financial has provided guarantees of the payment of principal and interest on inter-company loans between affiliates. As of December 31, 2016 , Prudential Financial had issued guarantees of outstanding loans totaling $3.9 billion between International Insurance subsidiaries and other affiliates. In 2013, Prudential Financial entered into a $500 million indemnity and guarantee agreement with Wells Fargo Bank Northwest, N.A. Under this agreement, Prudential Financial guaranteed obligations with respect to an affiliated loan from PICA to an affiliate. The loan proceeds were utilized to construct Prudential’s new home office in Newark, New Jersey. Prudential Financial is also subject to other financial guarantees, net worth maintenance agreements and indemnity arrangements, including those made in the normal course of businesses guaranteeing the performance of, or representations made by, Prudential Financial subsidiaries. Prudential Financial has provided indemnities and guarantees related to acquisitions and dispositions, investments, debt issuances and other transactions, including those provided as part of its on-going operations that are triggered by, among other things, breaches of representations, warranties or covenants provided by Prudential Financial or its subsidiaries. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, it is not possible to determine the maximum potential amount due under these guarantees. At December 31, 2016 , Prudential Financial has no accrued liabilities associated with other financial guarantees and indemnity arrangements. 6. REDEMPTION OF CLASS B SHARES From demutualization through December 31, 2014 , Prudential Financial had two classes of common stock outstanding. The Common Stock, which is publicly-traded (NYSE:PRU), reflected the performance of the Financial Services Businesses, while the Class B Stock, which was issued through a private placement and did not trade on any exchange, reflected the performance of the Closed Block Business. On January 2, 2015 , pursuant to a Share Repurchase Prudential Agreement entered into on December 1, 2014 , between the Company and the holders of the Class B stock, the Company repurchased and canceled all of the shares of the Class B Stock for an aggregate cash purchase price of $651 million , resulting in the elimination of the Class B stock held in treasury, a $484 million decrease in “Retained Earnings” and a $167 million decrease in “Additional paid-in-capital.” In accordance with the terms of the Share Repurchase agreement, the holders of the Class B Stock subsequently exercised their right to dispute the calculation of the purchase price. This dispute was resolved during the first quarter of 2016 , resulting in an increase to the cash purchase price of $119 million , bringing the total aggregate purchase price to $770 million . The increase to the cash purchase price resulted in a corresponding decrease in “Retained Earnings.” |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | PRUDENTIAL FINANCIAL, INC. Schedule III Supplementary Insurance Information As of and for the Year Ended December 31, 2016 (in millions) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims, Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums, Policy Charges and Fee Income Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of DAC Other Operating Expenses Individual Annuities $ 4,871 $ 10,311 $ 0 $ 8,601 $ 2,721 $ 700 $ 614 $ 462 $ 1,749 Retirement 132 55,661 0 49,770 7,808 4,275 10,958 124 1,031 Asset Management 0 0 0 0 0 80 0 15 2,095 U.S. Retirement Solutions and Investment Management division 5,003 65,972 0 58,371 10,529 5,055 11,572 601 4,875 Individual Life 5,279 12,057 0 25,021 2,941 1,815 3,414 216 1,929 Group Insurance 175 4,710 220 8,858 4,649 610 4,302 6 822 U.S. Individual Life and Group Insurance division 5,454 16,767 220 33,879 7,590 2,425 7,716 222 2,751 International Insurance 7,208 103,853 77 47,862 15,813 4,759 14,155 1,065 2,677 International Insurance division 7,208 103,853 77 47,862 15,813 4,759 14,155 1,065 2,677 Corporate and Other operations (340 ) 4,738 0 11 318 703 618 (48 ) 1,069 Total PFI excluding Closed Block division 17,325 191,330 297 140,123 34,250 12,942 34,061 1,840 11,372 Closed Block division 336 49,281 0 10,793 2,620 2,578 5,357 37 407 Total $ 17,661 $ 240,611 $ 297 $ 150,916 $ 36,870 $ 15,520 $ 39,418 $ 1,877 $ 11,779 PRUDENTIAL FINANCIAL, INC. Schedule III Supplementary Insurance Information As of and for the Year Ended December 31, 2015 (in millions) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums, Policy Charges and Fee Income Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of DAC Other Operating Expenses Individual Annuities $ 4,915 $ 10,486 $ 0 $ 8,720 $ 2,823 $ 594 $ 864 $ 940 $ 1,757 Retirement 133 51,264 1,835 47,113 6,946 4,110 9,301 66 1,034 Asset Management 0 0 0 0 0 111 0 19 2,076 U.S. Retirement Solutions and Investment Management division 5,048 61,750 1,835 55,833 9,769 4,815 10,165 1,025 4,867 Individual Life 4,883 10,102 0 23,425 2,944 1,679 2,961 133 1,508 Group Insurance 181 4,745 206 8,569 4,468 573 4,129 6 837 U.S. Individual Life and Group Insurance division 5,064 14,847 206 31,994 7,412 2,252 7,090 139 2,345 International Insurance 6,554 91,357 574 43,828 14,311 4,383 12,809 987 2,396 International Insurance division 6,554 91,357 574 43,828 14,311 4,383 12,809 987 2,396 Corporate and Other operations (321 ) 4,276 0 3 332 726 624 (68 ) 869 Total PFI excluding Closed Block division 16,345 172,230 2,615 131,658 31,824 12,176 30,688 2,083 10,477 Closed Block division 373 49,539 0 10,704 2,669 2,653 5,630 37 435 Total $ 16,718 $ 221,769 $ 2,615 $ 142,362 $ 34,493 $ 14,829 $ 36,318 $ 2,120 $ 10,912 PRUDENTIAL FINANCIAL, INC. Schedule III Supplementary Insurance Information As of and for the Year Ended December 31, 2014 (in millions) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims, Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums, Policy Charges and Fee Income Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of DAC Other Operating Expenses Individual Annuities $ 5,376 $ 10,220 $ 0 $ 8,693 $ 2,785 $ 615 $ 1,017 $ 603 $ 1,791 Retirement 117 49,237 1,848 47,465 7,013 4,238 9,918 33 1,020 Asset Management 0 0 0 0 0 120 0 20 1,976 U.S. Retirement Solutions and Investment Management division 5,493 59,457 1,848 56,158 9,798 4,973 10,935 656 4,787 Individual Life 4,056 9,224 0 21,463 3,073 1,610 3,040 368 1,745 Group Insurance 177 4,925 201 8,342 4,626 610 4,468 8 863 U.S. Individual Life and Group Insurance division 4,233 14,149 201 29,805 7,699 2,220 7,508 376 2,608 International Insurance 6,156 87,744 543 44,977 14,961 4,434 13,432 962 2,608 International Insurance division 6,156 87,744 543 44,977 14,961 4,434 13,432 962 2,608 Corporate and Other operations (321 ) 3,961 0 18 310 622 594 (58 ) 773 Total Financial Services Businesses 15,561 165,311 2,592 130,958 32,768 12,249 32,469 1,936 10,776 Closed Block Business 410 49,863 0 12,853 2,704 3,007 6,097 37 1,031 Total $ 15,971 $ 215,174 $ 2,592 $ 143,811 $ 35,472 $ 15,256 $ 38,566 $ 1,973 $ 11,807 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | PRUDENTIAL FINANCIAL, INC. Schedule IV Reinsurance For the Years Ended December 31, 2016 , 2015 and 2014 ($ in millions) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net 2016 Life Insurance Face Amount In Force $ 3,652,206 $ 706,918 $ 218,262 $ 3,163,550 6.9 % Premiums: Life Insurance $ 27,857 $ 1,719 $ 2,073 $ 28,211 7.3 % Accident and Health Insurance 2,797 44 0 2,753 0.0 Total Premiums $ 30,654 $ 1,763 $ 2,073 $ 30,964 6.7 % 2015 Life Insurance Face Amount In Force $ 3,457,711 $ 642,525 $ 235,418 $ 3,050,604 7.7 % Premiums: Life Insurance $ 25,346 $ 1,573 $ 2,147 $ 25,920 8.3 % Accident and Health Insurance 2,650 49 0 2,601 0.0 Total Premiums $ 27,996 $ 1,622 $ 2,147 $ 28,521 7.5 % 2014 Life Insurance Face Amount In Force $ 3,492,396 $ 633,501 $ 245,674 $ 3,104,569 7.9 % Premiums: Life Insurance $ 26,638 $ 1,451 $ 1,134 $ 26,321 4.3 % Accident and Health Insurance 3,028 56 0 2,972 0.0 Total Premiums $ 29,666 $ 1,507 $ 1,134 $ 29,293 3.9 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | PRUDENTIAL FINANCIAL, INC. Schedule V Valuation and Qualifying Accounts For the Years Ended December 31, 2016 , 2015 and 2014 (in millions) Additions Description Balance at Beginning of Period Charged to Costs and Expenses Other Deductions Effect of Foreign Exchange Rates Balance at End of Period 2016 Allowance for losses on commercial mortgage and other loans $ 112 $ 0 $ 0 $ 7 (1) $ 1 $ 106 Valuation allowance on deferred tax asset 133 68 (1 ) 36 (1 ) 163 $ 245 $ 68 $ (1 ) $ 43 $ 0 $ 269 2015 Allowance for losses on commercial mortgage and other loans $ 119 $ 0 $ 0 $ 7 (1) $ 0 $ 112 Valuation allowance on deferred tax asset 277 38 (3 ) 178 (1 ) 133 $ 396 $ 38 $ (3 ) $ 185 $ (1 ) $ 245 2014 Allowance for losses on commercial mortgage and other loans $ 216 $ 0 $ 0 $ 96 (1) $ (1 ) $ 119 Valuation allowance on deferred tax asset 235 44 0 0 (2 ) 277 $ 451 $ 44 $ 0 $ 96 $ (3 ) $ 396 __________ (1) Represents net release of allowance for losses and charge-offs, net of recoveries. |
Significant Accounting Polici38
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation As a result of the Class B Repurchase and resulting elimination of the separation of the Financial Services Businesses and the Closed Block Business, these Consolidated Financial Statements refer to the divisions and segments of the Company that formerly comprised the Financial Services Businesses as “PFI excluding Closed Block division” and refer to the operations that were formerly included in the Closed Block Business as the “Closed Block division,” except as otherwise noted. Closed Block Business results were associated with the Company’s Class B Stock for periods prior to January 1, 2015. The Company’s Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and minority-owned entities such as limited partnerships in which the Company is the general partner, and variable interest entities in which the Company is considered the primary beneficiary. See Note 5 for more information on the Company’s consolidated variable interest entities. The Company’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Intercompany balances and transactions have been eliminated. The Company’s Gibraltar Life Insurance Company, Ltd. (“Gibraltar Life”) consolidated operations use a November 30 fiscal year end for purposes of inclusion in the Company’s Consolidated Financial Statements. The Company’s consolidated balance sheet data as of December 31, 2016 and 2015 , include the assets and liabilities of Gibraltar Life as of November 30 for each respective year. The Company’s consolidated income statement data for the years ended December 31, 2016 , 2015 and 2014 , include Gibraltar Life’s results of operations for the twelve months ended November 30 for each respective year. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates include those used in determining deferred policy acquisition costs (“DAC”) and related amortization; value of business acquired (“VOBA”) and its amortization; amortization of deferred sales inducements (“DSI”); measurement of goodwill and any related impairment; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; pension and other postretirement benefits; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal matters. |
Reclassifications | Reclassifications Certain amounts in prior years have been reclassified to conform to the current year presentation. |
Share-Based Payments | Share-Based Payments The Company applies the fair value-based measurement method in accounting for share-based payment transactions with employees except for equity instruments held by employee share ownership plans. The Company accounts for excess tax benefits in additional paid-in capital as a single “pool” available to all share-based compensation awards. The Company does not recognize excess tax benefits in additional paid-in capital until the benefits result in a reduction in taxes payable. The Company has elected the “tax law ordering methodology” and has adopted a convention that considers excess tax benefits to be the last portion of a net operating loss carryforward to be utilized. The Company accounts for non-employee stock options using the fair value method in accordance with authoritative guidance and related interpretations on accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services. |
Earnings Per Share | Earnings Per Share As discussed in Note 1, from demutualization through December 31, 2014, the Company had two separate classes of common stock. Basic earnings per share for those periods was computed by dividing available income attributable to each of the two groups of common shareholders by the respective weighted average number of common shares outstanding for the period. Diluted earnings per share included the effect of all dilutive potential common shares that were outstanding during the period. As a result of the Class B Repurchase, earnings per share of Common Stock for 2016 and 2015 reflects the consolidated earnings of Prudential Financial. Basic earnings per share is computed by dividing available income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share includes the effect of all dilutive potential common shares that were outstanding during the period. See Note 16 for additional information. As discussed under “Share-Based Payments” above, the Company accounts for excess tax benefits in additional paid-in capital as a single “pool” available to all share-based compensation awards. The Company reflects in assumed proceeds, based on application of the treasury stock method, the excess tax benefits that would be recognized in additional paid-in capital upon exercise or release of the award. |
Investments and Investment-Related Liabilities | Investments The Company’s principal investments are fixed maturities; equity securities; commercial mortgage and other loans; policy loans; other long-term investments, including joint ventures (other than operating joint ventures), limited partnerships, and real estate; and short-term investments. The accounting policies related to each are as follows: Fixed maturities are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 20 for additional information regarding the determination of fair value. Fixed maturities that the Company has both the positive intent and ability to hold to maturity are carried at amortized cost and classified as “held-to-maturity.” The amortized cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income.” For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income. For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to “Net investment income” in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA, or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Unrealized gains and losses on fixed maturities classified as “available-for-sale,” net of tax, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). “Trading account assets supporting insurance liabilities, at fair value” includes invested assets that support certain products included in the Retirement and International Insurance segments which are experience-rated, meaning that the investment results associated with these products are expected to ultimately accrue to contractholders. Realized and unrealized gains and losses for these investments are reported in “Other income.” Interest and dividend income from these investments is reported in “Net investment income.” “Other trading account assets, at fair value” consists primarily of fixed maturities, equity securities, including certain perpetual preferred stock, and certain derivatives. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments are reported in “Net investment income.” See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. “Equity securities available-for-sale, at fair value” is comprised of common stock, mutual fund shares and non-redeemable preferred stock, and are carried at fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, future policy benefits, policyholders’ account balances and policyholders’ dividends that would result from the realization of unrealized gains and losses, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other-than-temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Dividends from these investments are generally recognized in “Net investment income” on the ex-dividend date. “Commercial mortgage and other loans” consists of commercial mortgage loans, agricultural property loans, loans backed by residential properties, as well as certain other collateralized and uncollateralized loans. Loans backed by residential properties primarily include recourse loans held by the Company’s international insurance businesses. Uncollateralized loans primarily represent reverse dual currency loans and corporate loans held by the Company’s international insurance businesses. Commercial mortgage and other loans originated and held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company carries certain commercial mortgage loans originated within the Company’s commercial mortgage operations at fair value where the fair value option has been elected. Loans held for sale where the Company has not elected the fair value option are carried at the lower of cost or fair value. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income.” Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans as well as loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 4 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, and estimated market value growth rate and volatility for the property type and region. See Note 4 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. Loans backed by residential properties and uncollateralized loans are also reviewed periodically. Each loan is assigned an internal or external credit rating. Internal credit ratings take into consideration various factors including financial ratios and qualitative assessments based on non-financial information. In cases where there are personal or third-party guarantors, the credit quality of the guarantor is also reviewed. These factors are used in developing the allowance for losses. Based on the diversity of the loans in these categories and their immateriality, the Company has not disclosed the credit quality indicators related to these loans in Note 4. For those loans not reported at fair value, the allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans, the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios consider the current credit composition of the portfolio based on an internal quality rating, as described above. The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses and changes in value for loans accounted for under the fair value option. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write-down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a troubled debt restructuring. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a troubled debt restructuring. Based on the Company’s credit review process described above, these loans generally would have been deemed impaired prior to the troubled debt restructuring, and specific allowances for losses would have been established prior to the determination that a troubled debt restructuring has occurred. In a troubled debt restructuring where the Company receives assets in full satisfaction of the debt, any specific valuation allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. Additionally, the loan continues to be subject to the credit review process noted above. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 4 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. “Policy loans” are carried at unpaid principal balances. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. “Other long-term investments” consists of the Company’s non-coupon investments in joint ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments. Joint venture and partnership interests are accounted for using the equity method of accounting, the cost method when the Company’s partnership interest is so minor (generally less than 3% ) that it exercises virtually no influence over operating and financial policies, or the fair value option where elected. The Company’s income from investments in joint ventures and partnerships accounted for using the equity method or the cost method, other than the Company’s investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method or the cost method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three month lag. For the investments for which the Company has elected the fair value option, the associated realized and unrealized gains and losses are reported in “Other income.” The Company consolidates joint ventures and limited partnerships in certain other instances where it is deemed to exercise control, or is considered the primary beneficiary of a variable interest entity. See Note 5 for additional information about variable interest entities. The Company’s wholly-owned investment real estate consists of real estate which the Company has the intent to hold for the production of income as well as real estate held for sale. Real estate which the Company has the intent to hold for the production of income is carried at depreciated cost less any writedowns to fair value for impairment losses and is reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Real estate held for sale is carried at the lower of depreciated cost or fair value less estimated selling costs and is not further depreciated once classified as such. An impairment loss is recognized when the carrying value of the investment real estate exceeds the estimated undiscounted future cash flows (excluding interest charges) from the investment. At that time, the carrying value of the investment real estate is written down to fair value. Decreases in the carrying value of investment real estate held for the production of income due to OTTI are recorded in “Realized investment gains (losses), net.” Depreciation on real estate held for the production of income is computed using the straight-line method over the estimated useful lives of the properties and is included in “Net investment income.” In the period a real estate investment is deemed held for sale and meets all of the discontinued operation criteria, the Company reports all related net investment income and any resulting investment gains and losses as discontinued operations for all periods presented. “Short-term investments” primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased, other than those debt instruments meeting this definition that are included in “Trading account assets supporting insurance liabilities, at fair value.” These investments are generally carried at fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government-sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method with the exception of some of the Company’s International Insurance businesses’ portfolios, where the average cost method is used. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, equity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, fair value changes on commercial mortgage loans carried at fair value, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly to identify OTTI in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. With regard to available-for-sale equity securities, the Company also considers the ability and intent to hold the investment for a period of time to allow for a recovery of value. When it is determined that a decline in value of an equity security is other-than-temporary, the carrying value of the equity security is reduced to its fair value, with a corresponding charge to earnings. An OTTI is recognized in earnings for a debt security in an unrealized loss position when either (1) the Company has the intent to sell the debt security or (2) it is more likely than not the Company will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an OTTI is recognized. In addition to the above mentioned circumstances, the Company also recognizes an OTTI in earnings when a non-functional currency denominated security in an unrealized loss position due to currency exchange rates approaches maturity. When an OTTI of a debt security has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria or the unrealized losses due to changes in foreign currency exchange rates are not expected to be recovered before maturity, the OTTI recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For OTTI of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss).” Unrealized gains or losses on securities for which an OTTI has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an OTTI recognized in other comprehensive income (loss) and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flow on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, VOBA, DSI, certain future policy benefits, policyholders’ account balances, policyholders’ dividends and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail belo |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, and other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Trading account assets supporting insurance liabilities, at fair value.” |
DAC | DAC Costs that are related directly to the successful acquisition of new and renewal insurance and annuity business are deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of DAC,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. For traditional participating life insurance included in the Closed Block, DAC is amortized over the expected life of the contracts in proportion to gross margins based on historical and anticipated future experience, which is evaluated regularly. The effect of changes in estimated gross margins on unamortized DAC is reflected in the period such estimated gross margins are revised. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of the Company’s variable annuity contracts and related hedging activities. The effect of changes to total gross profits on unamortized DAC is reflected in the period such total gross profits are revised. DAC related to non-participating traditional individual life insurance and longevity reinsurance contracts is amortized in proportion to gross premiums. For group annuity contracts (other than single premium group annuities), acquisition costs are generally deferred and amortized over the expected life of the contracts in proportion to gross profits. For group corporate-, bank- and trust-owned life insurance contracts, acquisition costs are generally deferred and amortized in proportion to lives insured. For single premium immediate annuities with life contingencies, single premium group annuities, including non-participating group annuity contracts, and single premium structured settlements with life contingencies, all acquisition costs are charged to expense immediately because generally all premiums are received at the inception of the contract. For funding agreement notes contracts, single premium structured settlement contracts without life contingencies, and single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. For other group life and disability insurance contracts and guaranteed investment contracts, acquisition costs are expensed as incurred. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. |
VOBA | VOBA As a result of certain acquisitions and the application of purchase accounting, the Company reports a financial asset representing VOBA. VOBA represents an adjustment to the stated value of inforce insurance contract liabilities to present them at fair value, determined as of the acquisition date. VOBA balances are subject to recoverability testing, in the manner in which they were acquired. The Company has established a VOBA asset primarily for its acquired life insurance products, accident and health products with fixed benefits, deferred annuity contracts, and defined contribution and defined benefit businesses. As of December 31, 2016 , the majority of the VOBA balance relates to the 2011 acquisition of AIG Star Life Insurance Co., Ltd, AIG Edison Life Insurance Company, AIG Financial Assurance Japan K.K. and AIG Edison Service Co., Ltd. (collectively, the “Star and Edison Businesses”) and the 2013 acquisition of The Hartford Financial Services Group’s individual life insurance business (“the Hartford Life Business”). The Company amortizes VOBA over the anticipated life of the acquired contracts using the same methodology and assumptions used to amortize DAC. The Company records amortization of VOBA in “General and administrative expenses.” VOBA, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 8 for additional information regarding VOBA. |
Separate Account Assets and Liabilities | Separate Account Assets and Liabilities Separate account assets are reported at fair value and represent segregated funds that are invested for certain policyholders, pension funds and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. See Note 11 for additional information regarding separate account arrangements with contractual guarantees. Separate account liabilities primarily represent the contractholder’s account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income.” Asset management fees charged to the accounts are included in “Asset management and service fees.” Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrues to the Company and is included in the Company’s results of operations. |
Other Assets and Other Liabilities | Other Assets and Other Liabilities Other assets consist primarily of prepaid pension benefit costs, certain restricted assets, trade receivables, goodwill and other intangible assets, DSI, the Company’s investments in operating joint ventures, property and equipment, reinsurance recoverables, and receivables resulting from sales of securities that had not yet settled at the balance sheet date. Other liabilities consist primarily of trade payables, pension and other employee benefit liabilities, derivative liabilities, reinsurance payables, and payables resulting from purchases of securities that had not yet settled at the balance sheet date. Property and equipment are carried at cost less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful lives of the related assets, which generally range from 3 to 40 years . As a result of certain acquisitions, the Company recognizes an asset for goodwill representing the excess of cost over the net fair value of the assets acquired and liabilities assumed. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. A reporting unit is an operating segment or a unit one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. The Company tests goodwill for impairment annually as of December 31 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Accounting guidance provides for an optional qualitative assessment for testing goodwill impairment that may allow companies to skip the quantitative two-step test. The Company has elected the quantitative two-step test that is performed at the reporting unit level. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value including goodwill. If the fair value of a reporting unit exceeds its carrying value, the applicable goodwill is considered not to be impaired. If the carrying value exceeds fair value, there is an indication of a potential impairment and the second step of the test is performed to measure the amount of impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill in the “pro forma” business combination accounting as described above exceeds the goodwill assigned to the reporting unit, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded in “General and administrative expenses” for the excess. An impairment loss recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Management is required to make significant estimates in determining the fair value of a reporting unit including, but not limited to: projected earnings, comparative market multiples, and the risk rate at which future net cash flows are discounted. The Company offered various types of sales inducements to policyholders related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducement balances are subject to periodic recoverability testing. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” DSI, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 11 for additional information regarding sales inducements. The majority of the Company’s reinsurance recoverables and payables are associated with the reinsurance arrangements used to effect the Company’s acquisition of the retirement business of CIGNA and the Hartford Life Business. The remaining amounts relate to other reinsurance arrangements entered into by the Company. For each of its reinsurance contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. The Company reviews all contractual features, particularly those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. See Note 13 for additional information about the Company’s reinsurance arrangements. Identifiable intangible assets primarily include customer relationships and mortgage servicing rights and are recorded net of accumulated amortization. The Company tests identifiable intangible assets for impairment on an annual basis as of December 31 of each year or whenever events or circumstances suggest that the carrying value of an identifiable intangible asset may exceed the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If this condition exists and the carrying value of an identifiable intangible asset exceeds its fair value, the excess is recognized as an impairment and is recorded as a charge against net income. Measuring intangible assets requires the use of estimates. Significant estimates include the projected net cash flow attributable to the intangible asset and the risk rate at which future net cash flows are discounted for purposes of estimating fair value, as applicable. See Note 9 for additional information regarding identifiable intangible assets. Investments in operating joint ventures are generally accounted for under the equity method. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. See Note 7 for additional information on investments in operating joint ventures. |
Future Policy Benefits | Future Policy Benefits The Company’s liability for future policy benefits is primarily comprised of the present value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality or morbidity, less the present value of future net premiums. For individual traditional participating life insurance products, the mortality and interest rate assumptions applied are those used to calculate the policies’ guaranteed cash surrender values. For life insurance, other than individual traditional participating life insurance, and annuity and disability products, expected mortality and morbidity are generally based on Company experience, industry data and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality, morbidity and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves do not include a provision for the risk of adverse deviation. In determining if a premium deficiency related to short-duration contracts exists, the Company considers, among other factors, anticipated investment income. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. In certain instances, the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (Profits Followed by Losses or “PFL” liability) be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. Currently, PFL liabilities are predominantly associated with certain universal life contracts that measure GAAP reserves using a dynamic approach and accordingly, are updated each quarter using current inforce and market data and as part of the annual assumption update. See Note 10 for additional information regarding future policy benefits. The Company’s liability for future policy benefits also includes a liability for unpaid claims and claim adjustment expenses. The Company does not establish claim liabilities until a loss has been incurred. However, unpaid claims and claim adjustment expenses include estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. The Company’s liability for future policy benefits also includes net liabilities for guarantee benefits related to certain long-duration life and annuity contracts, which are discussed more fully in Note 11, and deferred profits. |
Policyholders' Account Balances | Policyholders’ Account Balances The Company’s liability for policyholders’ account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. See Note 10 for additional information regarding policyholders’ account balances. |
Policyholders' Dividends | Policyholders’ Dividends The Company’s liability for policyholders’ dividends includes its dividends payable to policyholders and its policyholder dividend obligation associated with the participating policies included in the Closed Block. The dividends payable for participating policies included in the Closed Block are determined at the end of each year for the following year by the Board of Directors of the Prudential Insurance Company of America (“Prudential Insurance”) based on its statutory results, capital position, ratings, and the emerging experience of the Closed Block. The policyholder dividend obligation represents amounts expected to be paid to Closed Block policyholders as an additional policyholder dividend unless otherwise offset by future Closed Block performance. Any adjustments to the policyholder dividend obligation related to net unrealized gains (losses) on securities classified as available-for-sale are included in AOCI. For additional information on the policyholder dividend obligation, see Note 12. The dividends payable for policies other than the participating policies included in the Closed Block include dividends payable in accordance with certain group and individual insurance policies. |
Securities repurchase and resale agreements and securities loaned transactions | Securities repurchase and resale agreements and securities loaned transactions Securities repurchase and resale agreements and securities loaned transactions are used primarily to earn spread income, to borrow funds, or to facilitate trading activity. As part of securities repurchase agreements or securities loaned transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities, and receives cash as collateral. As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. For securities repurchase agreements and securities loaned transactions used to earn spread income, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third-party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income;” however, for transactions used for funding purposes, the associated borrowing cost is reported as interest expense (included in “General and administrative expenses”). Income and expenses related to these transactions executed within the Company’s derivative operations are reported in “Other income.” Securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities loaned transactions are with large brokerage firms and large banks. Income and expenses associated with securities loaned transactions used to earn spread income are reported as “Net investment income;” however, for securities loaned transactions used for funding purposes the associated rebate is reported as interest expense (included in “General and administrative expenses”). |
Contingent Liabilities | Contingent Liabilities Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. |
Insurance Revenue and Expense Recognition | Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, and health insurance and long-term care products are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is generally deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium method. Premiums from non-participating group annuities with life contingencies, single premium structured settlements with life contingencies and single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium method. Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are accounted for as insurance contracts. The Company also provides contracts with certain living benefits which are considered embedded derivatives. See Note 11 for additional information regarding these contracts. Amounts received as payment for universal or variable group and individual life contracts, deferred fixed or variable annuities, structured settlements and other contracts without life contingencies, and participating group annuities are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts in proportion to estimated gross profits. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC, DSI and VOBA. For group life, other than universal and variable group life contracts, and disability insurance, premiums are generally recognized over the period to which the premiums relate in proportion to the amount of insurance protection provided. Claim and claim adjustment expenses are recognized when incurred. |
Asset Management and Service Fees | Asset Management and Service Fees “Asset management and service fees” principally includes asset-based asset management fees, which are recognized in the period in which the services are performed. In certain asset management fee arrangements, the Company is entitled to receive performance-based incentive fees when the return on assets under management exceeds certain benchmark returns or other performance targets. The Company may be required to return all, or part, of such performance-based incentive fee depending on future performance of these assets relative to performance benchmarks. The Company records performance-based incentive fee revenue when the contractual terms of the asset management fee arrangement have been satisfied such that the performance fee is no longer subject to clawback or contingency. Under this principle the Company records a deferred performance-based incentive fee liability to the extent it receives cash related to the performance-based incentive fee prior to meeting the revenue recognition criteria delineated above. |
Other Income | Other Income “Other income” includes realized and unrealized gains or losses from investments classified as “trading” such as “Trading account assets supporting insurance liabilities” and “Other trading account assets,” short-term investments that are marked-to-market through “Other income,” “Other long-term investments” for which the Company has elected the fair value option, and consolidated entities that follow specialized investment company fair value accounting. “Other income” also includes gains and losses primarily related to the remeasurement of foreign currency denominated assets and liabilities, as discussed in more detail under “Foreign Currency” below. |
Foreign Currency | Foreign Currency Assets, liabilities and results of foreign operations are recorded based on the functional currency of each foreign operation. The determination of the functional currency is based on economic facts and circumstances pertaining to each foreign operation. With the exception of our Japanese operations, where multiple functional currencies exist, the local currencies of our foreign operations are typically their functional currencies. See Note 22 for additional information. Assets and liabilities of foreign operations and subsidiaries reported in currencies other than U.S. dollars are translated at the exchange rate in effect at the end of the period. Revenues, benefits and other expenses are translated at the average rate prevailing during the period. The effects of translating the statements of operations and financial position of non-U.S. entities with functional currencies other than the U.S. dollar are included, net of related qualifying hedge gains and losses and income taxes, in AOCI. Gains and losses resulting from the remeasurement of foreign currency transactions are reported in either AOCI or current earnings in “Other income” depending on the nature of the related foreign currency denominated asset or liability. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk (“NPR”) used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models. Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities and to mitigate volatility of expected non-U.S. earnings and net investments in foreign operations resulting from changes in currency exchange rates. Additionally, derivatives may be used to seek to reduce exposure to interest rate, credit, foreign currency and equity risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 21, all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of the effective portion of cash flow hedges and effective hedges of net investments in foreign operations. The Company may also enter into intercompany derivatives, the results of which ultimately eliminate in consolidation over the term of the instrument; however, where applicable, derivative results are included in business gross profits which may impact the pattern by which DAC and other assets are amortized. Cash flows from derivatives are reported in the operating, investing, or financing activities sections in the Consolidated Statements of Cash Flows based on the nature and purpose of the derivative. Derivatives are recorded either as assets, within “Other trading account assets, at fair value” or “Other long-term investments,” or as liabilities, within “Other liabilities,” except for embedded derivatives which are recorded with the associated host contract. The Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed. The Company designates derivatives as either (1) a hedge of the fair value of a recognized asset or liability or unrecognized firm commitment (“fair value” hedge); (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); (3) a foreign currency fair value or cash flow hedge (“foreign currency” hedge); (4) a hedge of a net investment in a foreign operation; or (5) a derivative that does not qualify for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. Even if a derivative qualifies for hedge accounting treatment, there may be an element of ineffectiveness of the hedge. Under such circumstances, the ineffective portion is recorded in “Realized investment gains (losses), net.” The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as fair value, cash flow, or foreign currency hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. Hedges of a net investment in a foreign operation are linked to the specific foreign operation. When a derivative is designated as a fair value hedge and is determined to be highly effective, changes in its fair value, along with changes in the fair value of the hedged asset or liability (including losses or gains on firm commitments), are reported on a net basis in the Consolidated Statements of Operations, generally in “Realized investment gains (losses), net.” When swaps are used in hedge accounting relationships, periodic settlements are recorded in the same Consolidated Statements of Operations line as the related settlements of the hedged items. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the Consolidated Statements of Operations line item associated with the hedged item. When a derivative is designated as a foreign currency hedge and is determined to be highly effective, changes in its fair value are recorded either in current period earnings if the hedge transaction is a fair value hedge (e.g., a hedge of a recognized foreign currency asset or liability) or in AOCI if the hedge transaction is a cash flow hedge (e.g., a foreign currency denominated forecasted transaction). When a derivative is used as a hedge of a net investment in a foreign operation, its change in fair value, to the extent effective as a hedge, is accounted for in the same manner as a translation adjustment (i.e., reported in the cumulative translation adjustment account within AOCI). If it is determined that a derivative no longer qualifies as an effective fair value or cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net.” In this scenario, the hedged asset or liability under a fair value hedge will no longer be adjusted for changes in fair value and the existing basis adjustment is amortized to the Consolidated Statements of Operations line associated with the asset or liability. The component of AOCI related to discontinued cash flow hedges is reclassified to the Consolidated Statements of Operations line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net.” Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net.” Gains and losses that were in AOCI pursuant to the cash flow hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net.” If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.” For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to classify the entire instrument as a trading account asset and report it within “Other trading account assets, at fair value.” |
Short-Term and Long-Term Debt | Short-Term and Long-Term Debt Liabilities for short-term and long-term debt are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within “General and administrative expenses” in the Company’s Consolidated Statements of Operations. Interest expense may also be reported within “Net investment income” for certain activity, as prescribed by specialized industry guidance. Short-term debt is debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. The short-term debt caption may exclude short-term debt items the Company intends to refinance on a long-term basis in the near-term. See Note 14 for additional information regarding short-term and long-term debt. |
Income Taxes | Income Taxes The Company and its includible domestic subsidiaries file a consolidated federal income tax return that includes both life insurance companies and non-life insurance companies. Non-includible domestic subsidiaries file separate individual corporate tax returns. Subsidiaries operating outside the U.S. are taxed, and income tax expense is recorded, based on applicable foreign statutes. See Note 19 for a discussion of certain non-U.S. jurisdictions for which the Company assumes repatriation of earnings to the U.S. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to reduce a deferred tax asset to the amount expected to be realized. Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s Consolidated Statements of Operations. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax return but have not yet been recognized in the Company’s financial statements. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 19 for a discussion of factors considered when evaluating the need for a valuation allowance. U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process, the first step being recognition. The Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date. The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 19 for additional information regarding income taxes. |
Adoption of New Accounting Pronouncements | ASU adopted during year ended December 31, 2016 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs The ASU simplifies the presentation of debt issuance costs. The standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. January 1, 2016 using a retrospective method. Prior period financial information presented has been adjusted to reflect the retrospective adoption. As a result, “Other assets” and “Long-term debt” as previously reported on the Company’s Consolidated Statements of Financial Position as of December 31, 2015 were both reduced by $133 million. ASU 2015-02 , Consolidation (Topic 810): Amendments to Consolidation Analysis The ASU modifies the rules regarding consolidation. Specialized standard for limited partnerships and similar legal entities is eliminated and the indefinite deferral for certain investment funds is removed. January 1, 2016 using a modified retrospective method. Adoption of the ASU primarily resulted in the deconsolidation of certain of the Company’s previously consolidated collateralized loan obligations (“CLOs”), as the Company’s asset manager fee arrangements are no longer deemed variable interest in these entities. The Company continues to consolidate CLOs where it retains other economic interests which absorb more than an insignificant amount of the CLOs expected variability. The Company also deconsolidated certain investment structures where it is no longer deemed to be the primary beneficiary as the Company, through its equity ownership, no longer has the obligation to absorb losses of the Variable Interest Entity (“VIE”) that could be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The impact to the Company’s Consolidated Statements of Financial Position upon adoption of the updated guidance was a reduction of $5.5 billion of “Total assets” (including $5.1 billion of “Total investments”) and $5.5 billion of “Total liabilities” (including $5.1 billion of “Notes issued by consolidated variable interest entities”), with a $30 million decrease in “Noncontrolling interests” and a $7 million increase to “Total Prudential Financial, Inc. equity.” ASU 2014-13 , Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity) This ASU provides that an entity within scope is permitted to measure both the financial assets and financial liabilities of a consolidated collateralized financing entity based on either the fair value of the financial assets or the financial liabilities, whichever is more observable. If adopted, the standard eliminates the measurement difference that exists when both are measured at fair value. January 1, 2016 using a modified retrospective method. The impact to the Company’s Consolidated Statements of Financial Position upon adoption of the updated guidance was a $4 million reduction in “Total liabilities” and a $4 million increase to “Total Prudential Financial, Inc. equity.” Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2015-09 , Financial Services - Insurance (Topic 944): Disclosures about Short- Duration Contracts The ASU requires enhanced disclosures about insurance contracts classified as short-duration. New disclosure requirements focus on providing additional information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, methodologies and judgments in estimating claims, and timing, frequency and severity of claims as they relate to short-duration insurance contracts. December 31, 2016 using the retrospective method. Adoption of the ASU had no impact on the Company’s Consolidated Financial Statements and did not have a material impact on the Notes to the Consolidated Financial Statements. |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of December 31, 2016 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) The ASU is based on the core principle that revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, and assets recognized from the costs to obtain or fulfill a contract with a customer. Revenue recognition for insurance contracts and financial instruments are explicitly scoped out of the standard. January 1, 2018 using one of two retrospective application methods (early adoption permitted beginning January 1, 2017). The Company plans to adopt the standard on January 1, 2018 using the modified retrospective application. Given that insurance contracts and financial instruments are explicitly scoped out of the standard, the Company’s assessment has focused on the Asset Management segment. Based on the assessment completed to date, the Company does not expect the adoption of the ASU to have a significant impact on the Asset Management segment’s results of operations. ASU 2016-01 , Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities The ASU revises an entity’s accounting related to the classification and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The standard also amends certain disclosure requirements associated with the fair value of financial instruments. January 1, 2018 using the modified retrospective method. The amendments are to be applied prospectively as they relate to equity investments without readily determinable fair value. The Company’s equity investments, except for those accounted for using the equity method, will generally be carried on the Consolidated Statements of Financial Position at fair value with changes in fair value reported in current earnings. The Company is continuing to assess additional impacts of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-02 , Leases (Topic 842) This ASU ensures that assets and liabilities from all outstanding lease contracts are recognized on the balance sheet (with limited exception). The ASU substantially changes a Lessee’s accounting for leases and requires the recording on balance sheet of a “right-of-use” asset and liability to make lease payments for most leases. A Lessee will continue to recognize expense in its income statement in a manner similar to the requirements under the current lease accounting standard. For Lessors, the standard modifies classification criteria and accounting for sales-type and direct financing leases and requires a Lessor to derecognize the carrying value of the leased asset that is considered to have been transferred to a Lessee and record a lease receivable and residual asset (“receivable and residual” approach). The standard also eliminates the real estate specific provisions of the current standard (i.e., sale-leaseback). January 1, 2019 using the modified retrospective method (with early adoption permitted). The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2016-09 , Compensation- Stock Compensation (Topic 718): Improvements to Employee Share- Based Payments Accounting This ASU simplifies and improves employee share-based payment accounting. The areas updated include income tax consequences, a policy election related to forfeitures, classification of awards as either equity or liability, and classification of operating and financing activity on the statement of cash flows. January 1, 2017 using various transition methods as prescribed by the update (with early adoption permitted). The Company does not expect the adoption of the ASU to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2016-13 , Financial Instruments-Credit Losses (Topic326): Measurement of Credit Losses on Financial Instruments This ASU provides a new current expected credit loss model to account for credit losses on certain financial assets and off-balance sheet exposures (e.g., loans held for investment, debt securities held to maturity, reinsurance receivables, net investments in leases and loan commitments). The model requires an entity to estimate lifetime credit losses related to such financial assets and exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard also modifies the current other-than-temporary impairment standard for available-for-sale debt securities to require the use of an allowance rather than a direct write down of the investment, and replaces existing standard for purchased credit deteriorated loans and debt securities. January 1, 2020 using the modified retrospective method, however prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 and for debt securities for which an other-than-temporary-impairment was recognized prior to the date of adoption. Early adoption is permitted beginning January 1, 2019. The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force) This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows. January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period). The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Update 2016-18 , Statement of Cash Flows (Topic 230): Restricted Cash In November 2016, the FASB issued this ASU to address diversity in practice from entities classifying and presenting transfers between cash and restricted cash as operating, investing, or financing activities, or as a combination of those activities in the Statement of Cash Flows. The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the Statement of Cash Flows. As a result, transfers between such categories will no longer be presented in the Statement of Cash Flows. January 1, 2018 using the retrospective method (with early adoption permitted). The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2017-01 , Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB issued this ASU to provide a more robust framework to use in determining when a set of assets and activities (“set”) is a business and to address stakeholder feedback that the definition of a business in current GAAP is applied too broadly. The primary amendments in the ASU provide a screen to exclude transactions where substantially all of the fair value of the transferred set is concentrated in a single asset, or group of similar assets, from being evaluated as a business. January 1, 2018 using the prospective method (with early adoption permitted). The Company is currently assessing the impact of the ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. It is expected that our general account real estate acquisitions will no longer be accounted for as business combinations. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Fixed Maturities and Equity Securities, Available-for-sale Securities | (1) Excludes notes with amortized cost of $1,456 million (fair value, $1,456 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (4) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $649 million of net unrealized gains on impaired available-for-sale securities and $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date. December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(4) (in millions) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 14,992 $ 3,544 $ 19 $ 18,517 $ 0 Obligations of U.S. states and their political subdivisions 8,089 747 41 8,795 0 Foreign government bonds 71,849 12,011 147 83,713 1 U.S. corporate public securities 70,979 6,344 1,955 75,368 (3 ) U.S. corporate private securities(1) 28,525 2,278 359 30,444 0 Foreign corporate public securities 26,354 2,821 621 28,554 0 Foreign corporate private securities 19,393 739 994 19,138 0 Asset-backed securities(2) 10,121 226 121 10,226 (452 ) Commercial mortgage-backed securities 10,337 195 70 10,462 (1 ) Residential mortgage-backed securities(3) 4,777 335 6 5,106 (4 ) Total fixed maturities, available-for-sale(1) $ 265,416 $ 29,240 $ 4,333 $ 290,323 $ (459 ) Equity securities, available-for-sale $ 6,847 $ 2,570 $ 143 $ 9,274 Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(4) (in millions) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 21,505 $ 3,280 $ 1,001 $ 23,784 $ 0 Obligations of U.S. states and their political subdivisions 9,060 716 84 9,692 0 Foreign government bonds 79,862 16,748 354 96,256 0 U.S. corporate public securities 76,383 6,460 1,232 81,611 (17 ) U.S. corporate private securities(1) 29,974 2,122 308 31,788 (22 ) Foreign corporate public securities 25,758 2,784 305 28,237 (6 ) Foreign corporate private securities 21,383 646 1,149 20,880 0 Asset-backed securities(2) 11,759 229 53 11,935 (288 ) Commercial mortgage-backed securities 12,589 240 125 12,704 (1 ) Residential mortgage-backed securities(3) 4,308 238 14 4,532 (3 ) Total fixed maturities, available-for-sale(1) $ 292,581 $ 33,463 $ 4,625 $ 321,419 $ (337 ) Equity securities, available-for-sale $ 7,149 $ 2,641 $ 42 $ 9,748 (1) Excludes notes with amortized cost of $1,050 million (fair value, $1,039 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (4) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $693 million of net unrealized gains on impaired available-for-sale securities and less than $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date. |
Fixed Maturities, Held-to-maturity Securities | December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity Foreign government bonds $ 839 $ 262 $ 0 $ 1,101 Foreign corporate public securities 651 71 0 722 Foreign corporate private securities(5) 81 4 0 85 Commercial mortgage-backed securities 0 0 0 0 Residential mortgage-backed securities(3) 573 43 0 616 Total fixed maturities, held-to-maturity(5) $ 2,144 $ 380 $ 0 $ 2,524 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity Foreign government bonds $ 816 $ 196 $ 0 $ 1,012 Foreign corporate public securities 625 62 0 687 Foreign corporate private securities(5) 78 4 0 82 Commercial mortgage-backed securities 33 1 0 34 Residential mortgage-backed securities(3) 756 53 0 809 Total fixed maturities, held-to-maturity(5) $ 2,308 $ 316 $ 0 $ 2,624 5) Excludes notes with amortized cost of $4,403 million (fair value, $4,403 million ), which have been offset with the associated payables under a netting agreement. (5) Excludes notes with amortized cost of $3,850 million (fair value, $4,081 million ), which have been offset with the associated payables under a netting agreement. |
Duration Of Gross Unrealized Losses On Fixed Maturity and Equity Securities | The following tables show the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, at December 31 for the years indicated: 2016 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) Fixed maturities(1) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 9,345 $ 1,001 $ 0 $ 0 $ 9,345 $ 1,001 Obligations of U.S. states and their political subdivisions 2,677 79 19 5 2,696 84 Foreign government bonds 6,076 325 310 29 6,386 354 U.S. corporate public securities 22,803 905 2,943 327 25,746 1,232 U.S. corporate private securities 7,797 228 1,296 80 9,093 308 Foreign corporate public securities 5,196 162 1,047 143 6,243 305 Foreign corporate private securities 6,557 350 4,916 799 11,473 1,149 Asset-backed securities 2,357 20 1,581 33 3,938 53 Commercial mortgage-backed securities 4,879 123 60 2 4,939 125 Residential mortgage-backed securities 926 12 78 2 1,004 14 Total $ 68,613 $ 3,205 $ 12,250 $ 1,420 $ 80,863 $ 4,625 Equity securities, available-for-sale $ 637 $ 41 $ 12 $ 1 $ 649 $ 42 __________ (1) Includes $12 million of fair value and less than $1 million of gross unrealized losses at December 31, 2016 , on securities classified as held-to-maturity, which is not reflected in AOCI. 2015 Less than twelve months Twelve months or more Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (in millions) Fixed maturities U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 3,068 $ 19 $ 0 $ 0 $ 3,068 $ 19 Obligations of U.S. states and their political subdivisions 1,391 40 7 1 1,398 41 Foreign government bonds 1,925 82 411 65 2,336 147 U.S. corporate public securities 24,642 1,396 3,455 559 28,097 1,955 U.S. corporate private securities 6,996 266 802 93 7,798 359 Foreign corporate public securities 5,985 288 1,584 333 7,569 621 Foreign corporate private securities 6,199 340 3,917 654 10,116 994 Asset-backed securities 4,342 33 3,138 88 7,480 121 Commercial mortgage-backed securities 3,888 63 473 7 4,361 70 Residential mortgage-backed securities 558 4 119 2 677 6 Total $ 58,994 $ 2,531 $ 13,906 $ 1,802 $ 72,900 $ 4,333 Equity securities, available-for-sale $ 1,862 $ 142 $ 11 $ 1 $ 1,873 $ 143 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2016 , are as follows: Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Due in one year or less $ 9,264 $ 9,827 $ 11 $ 11 Due after one year through five years 44,669 48,592 172 181 Due after five years through ten years 61,561 65,832 552 618 Due after ten years(1) 148,431 167,997 836 1,098 Asset-backed securities 11,759 11,935 0 0 Commercial mortgage-backed securities 12,589 12,704 0 0 Residential mortgage-backed securities 4,308 4,532 573 616 Total $ 292,581 $ 321,419 $ 2,144 $ 2,524 __________ (1) Excludes available-for-sale notes with amortized cost of $1,456 million (fair value, $1,456 million ) and held-to-maturity notes with amortized cost of $4,403 million (fair value, $4,403 million ), which have been offset with the associated payables under a netting agreement. |
Realized Gain (Loss) on Investments | The following table depicts the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: 2016 2015 2014 (in millions) Fixed maturities, available-for-sale Proceeds from sales(1) $ 29,878 $ 27,679 $ 28,359 Proceeds from maturities/repayments 19,710 19,559 21,040 Gross investment gains from sales, prepayments and maturities 1,433 2,115 1,664 Gross investment losses from sales and maturities (545 ) (340 ) (414 ) Fixed maturities, held-to-maturity Gross investment gains from prepayments $ 0 $ 0 $ 0 Proceeds from maturities/repayments(2) 272 235 415 Equity securities, available-for-sale Proceeds from sales(3) $ 3,504 $ 4,589 $ 4,993 Gross investment gains from sales 608 746 676 Gross investment losses from sales (158 ) (169 ) (132 ) Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(4) $ (222 ) $ (141 ) $ (56 ) Writedowns for impairments on equity securities (74 ) (126 ) (32 ) __________ (1) Includes $(125) million , $158 million and $(130) million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (2) Includes $1 million , less than $1 million and less than $1 million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (3) Includes $2 million , $12 million and $(8) million of non-cash related proceeds for the years ended December 31, 2016 , 2015 and 2014 , respectively. (4) Excludes the portion of OTTI recorded in “Other comprehensive income (loss)” (“OCI”), representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment. |
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts: Year Ended December 31, 2016 2015 (in millions) Balance, beginning of period $ 532 $ 781 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (229 ) (243 ) Credit loss impairments previously recognized on securities impaired to fair value during the period(1) (2 ) (20 ) Credit loss impairments recognized in the current period on securities not previously impaired 41 3 Additional credit loss impairments recognized in the current period on securities previously impaired 1 3 Increases due to the passage of time on previously recorded credit losses 24 20 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (8 ) (12 ) Balance, end of period $ 359 $ 532 __________ (1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost. |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | The following table sets forth the composition of “Trading account assets supporting insurance liabilities” as of the dates indicated: December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Short-term investments and cash equivalents $ 655 $ 655 $ 765 $ 765 Fixed maturities: Corporate securities 13,903 13,997 12,797 12,851 Commercial mortgage-backed securities 2,032 2,052 1,860 1,862 Residential mortgage-backed securities(1) 1,142 1,150 1,411 1,428 Asset-backed securities(2) 1,333 1,349 1,295 1,299 Foreign government bonds 915 926 680 694 U.S. government authorities and agencies and obligations of U.S. states 330 376 326 369 Total fixed maturities 19,655 19,850 18,369 18,503 Equity securities 1,097 1,335 1,030 1,254 Total trading account assets supporting insurance liabilities $ 21,407 $ 21,840 $ 20,164 $ 20,522 __________ (1) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
Other Trading Account Assets Disclosure | The following table sets forth the composition of the “Other trading account assets” as of the dates indicated: December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Short-term investments and cash equivalents $ 26 $ 26 $ 26 $ 26 Fixed maturities 3,634 3,453 11,132 10,764 Equity securities 985 1,056 1,006 1,098 Other 4 5 12 15 Subtotal $ 4,649 4,540 $ 12,176 11,903 Derivative instruments 1,224 2,555 Total other trading account assets $ 5,764 $ 14,458 |
Investments Securities Disclosure | As of both December 31, 2016 and 2015 , the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government, certain U.S. government agencies and certain securities guaranteed by the U.S. government, as well as the securities disclosed below. December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 60,240 $ 73,051 $ 53,851 $ 61,911 Fixed maturities, held-to-maturity 818 1,075 796 988 Trading account assets supporting insurance liabilities 537 550 492 502 Other trading account assets 16 16 33 33 Total $ 61,611 $ 74,692 $ 55,172 $ 63,434 December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 7,581 $ 9,435 $ 7,191 $ 9,233 Fixed maturities, held-to-maturity 0 0 0 0 Trading account assets supporting insurance liabilities 44 44 44 44 Other trading account assets 0 0 0 0 Total $ 7,625 $ 9,479 $ 7,235 $ 9,277 |
Commercial Mortgage and Other Loans | The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated: December 31, 2016 December 31, 2015 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,424 23.9 % $ 11,226 22.9 % Retail 8,555 16.5 8,917 18.2 Apartments/Multi-Family 13,733 26.4 12,034 24.5 Industrial 8,075 15.5 7,775 15.9 Hospitality 2,274 4.4 2,513 5.1 Other 3,966 7.6 3,722 7.6 Total commercial mortgage loans 49,027 94.3 46,187 94.2 Agricultural property loans 2,958 5.7 2,859 5.8 Total commercial mortgage and agricultural property loans by property type 51,985 100.0 % 49,046 100.0 % Valuation allowance (98 ) (99 ) Total net commercial mortgage and agricultural property loans by property type 51,887 48,947 Other loans: Uncollateralized loans 638 1,012 Residential property loans 252 301 Other collateralized loans 10 312 Total other loans 900 1,625 Valuation allowance (8 ) (13 ) Total net other loans 892 1,612 Total commercial mortgage and other loans(1) $ 52,779 $ 50,559 __________ (1) Includes loans held at fair value. |
Allowance for Losses | Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses, beginning of year $ 97 $ 2 $ 3 $ 0 $ 10 $ 112 Addition to (release of) allowance for losses 0 0 (1 ) 0 (5 ) (6 ) Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 1 1 Total ending balance $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses, beginning of year $ 104 $ 1 $ 5 $ 0 $ 9 $ 119 Addition to (release of) allowance for losses (7 ) 1 (2 ) 0 1 (7 ) Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 0 0 Total ending balance $ 97 $ 2 $ 3 $ 0 $ 10 $ 112 |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated: December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for Credit Losses: Individually evaluated for impairment $ 6 $ 0 $ 0 $ 0 $ 0 $ 6 Collectively evaluated for impairment 90 2 2 0 6 100 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 Recorded Investment(1): Individually evaluated for impairment $ 116 $ 30 $ 0 $ 0 $ 2 $ 148 Collectively evaluated for impairment 48,911 2,928 252 10 636 52,737 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 49,027 $ 2,958 $ 252 $ 10 $ 638 $ 52,885 __________ (1) Recorded investment reflects the carrying value gross of related allowance. December 31, 2015 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for Credit Losses: Individually evaluated for impairment $ 1 $ 0 $ 0 $ 0 $ 0 $ 1 Collectively evaluated for impairment 96 2 3 0 10 111 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 97 $ 2 $ 3 $ 0 $ 10 $ 112 Recorded Investment(1): Individually evaluated for impairment $ 111 $ 8 $ 0 $ 0 $ 2 $ 121 Collectively evaluated for impairment 46,076 2,851 301 312 1,010 50,550 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 46,187 $ 2,859 $ 301 $ 312 $ 1,012 $ 50,671 __________ (1) Recorded investment reflects the carrying value gross of related allowance. |
Financing Receivable Credit Quality Indicators | The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses as of the date indicated: Commercial mortgage loans Debt Service Coverage Ratio—December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 28,131 $ 446 $ 626 $ 29,203 60%-69.99% 12,608 401 115 13,124 70%-79.99% 5,383 694 56 6,133 80% or greater 373 62 132 567 Total commercial mortgage loans $ 46,495 $ 1,603 $ 929 $ 49,027 Agricultural property loans Debt Service Coverage Ratio—December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 2,803 $ 114 $ 17 $ 2,934 60%-69.99% 24 0 0 24 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 2,827 $ 114 $ 17 $ 2,958 Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio—December 31, 2016 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 30,934 $ 560 $ 643 $ 32,137 60%-69.99% 12,632 401 115 13,148 70%-79.99% 5,383 694 56 6,133 80% or greater 373 62 132 567 Total commercial mortgage and agricultural property loans $ 49,322 $ 1,717 $ 946 $ 51,985 The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses as of the date indicated: Commercial mortgage loans Debt Service Coverage Ratio—December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 25,978 $ 515 $ 207 $ 26,700 60%-69.99% 12,191 395 234 12,820 70%-79.99% 5,668 500 97 6,265 80% or greater 119 151 132 402 Total commercial mortgage loans $ 43,956 $ 1,561 $ 670 $ 46,187 Agricultural property loans Debt Service Coverage Ratio—December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 2,587 $ 84 $ 3 $ 2,674 60%-69.99% 185 0 0 185 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 2,772 $ 84 $ 3 $ 2,859 Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio—December 31, 2015 > 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 28,565 $ 599 $ 210 $ 29,374 60%-69.99% 12,376 395 234 13,005 70%-79.99% 5,668 500 97 6,265 80% or greater 119 151 132 402 Total commercial mortgage and agricultural property loans $ 46,728 $ 1,645 $ 673 $ 49,046 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status as of the dates indicated: December 31, 2016 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Loans Non- Accrual Status (in millions) Commercial mortgage loans $ 49,006 $ 21 $ 0 $ 0 $ 21 $ 49,027 $ 49 Agricultural property loans 2,956 0 0 2 2 2,958 2 Residential property loans 241 7 1 3 11 252 3 Other collateralized loans 10 0 0 0 0 10 0 Uncollateralized loans 638 0 0 0 0 638 0 Total $ 52,851 $ 28 $ 1 $ 5 $ 34 $ 52,885 $ 54 __________ (1) There were no loans accruing interest. December 31, 2015 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Loans Non- Accrual Status (in millions) Commercial mortgage loans $ 46,187 $ 0 $ 0 $ 0 $ 0 $ 46,187 $ 53 Agricultural property loans 2,856 2 0 1 3 2,859 1 Residential property loans 288 7 0 6 13 301 6 Other collateralized loans 312 0 0 0 0 312 0 Uncollateralized loans 1,012 0 0 0 0 1,012 0 Total $ 50,655 $ 9 $ 0 $ 7 $ 16 $ 50,671 $ 60 __________ (1) There were no loans accruing interest. |
Schedule of Other Long Term Investments | The following table sets forth the composition of “Other long-term investments” at December 31 for the years indicated: 2016 2015 (in millions) Joint ventures and limited partnerships: Private equity $ 4,059 $ 4,393 Hedge funds 2,660 2,054 Real estate-related 1,291 1,085 Total joint ventures and limited partnerships 8,010 7,532 Real estate held through direct ownership 2,195 1,464 Other 1,078 990 Total other long-term investments $ 11,283 $ 9,986 |
Equity Method Investments | The following tables set forth summarized combined financial information for significant joint ventures and limited partnership interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 7. Changes between periods in the tables below reflect changes in the activities within the joint ventures and limited partnerships, as well as changes in the Company’s level of investment in such entities. At December 31, 2016 2015 (in millions) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 59,897 $ 53,799 Total liabilities(2) $ 14,787 $ 13,610 Partners’ capital 45,110 40,189 Total liabilities and partners’ capital $ 59,897 $ 53,799 Total liabilities and partners’ capital included above $ 5,135 $ 4,398 Equity in limited partnership interests not included above 592 142 Carrying value $ 5,727 $ 4,540 __________ (1) Assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets. (2) Liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities. Years ended December 31, 2016 2015 2014 (in millions) STATEMENTS OF OPERATIONS Total revenue(1) $ 5,360 $ 4,356 $ 5,632 Total expenses(2) (1,995 ) (1,803 ) (1,654 ) Net earnings (losses) $ 3,365 $ 2,553 $ 3,978 Equity in net earnings (losses) included above $ 247 $ 216 $ 522 Equity in net earnings (losses) of limited partnership interests not included above 103 32 72 Total equity in net earnings (losses) $ 350 $ 248 $ 594 __________ (1) Revenue consists of income from investments in real estate, investments in securities and other income. (2) Expenses consist primarily of interest expense, management fees, salary expenses and other expenses. The following table sets forth information related to the Company’s investments in operating joint ventures as of and for the years ended December 31: 2016(1) 2015 2014 (in millions) Investment in operating joint ventures $ 994 $ 341 $ 325 Dividends received from operating joint ventures $ 60 $ 27 $ 27 After-tax equity earnings of operating joint ventures $ 49 $ 15 $ 16 __________ (1) Results include the impact of the Company’s investment in AFP Habitat in March of 2016. |
Net Investment Income | The following table sets forth net investment income by asset class for the years ended December 31: 2016 2015 2014 (in millions) Fixed maturities, available-for-sale(1)(2) $ 10,920 $ 10,347 $ 10,558 Fixed maturities, held-to-maturity(1)(2) 208 202 185 Equity securities, available-for-sale 366 337 354 Trading account assets 986 1,205 1,074 Commercial mortgage and other loans 2,243 2,255 2,103 Policy loans 627 619 632 Short-term investments and cash equivalents 145 56 38 Other long-term investments 731 717 1,050 Gross investment income 16,226 15,738 15,994 Less: investment expenses (706 ) (909 ) (738 ) Net investment income $ 15,520 $ 14,829 $ 15,256 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line item as related surplus notes, as conditions are met for right to offset. (2) During 2016, fixed maturity prepayment fees and call premiums were reclassified to “Net investment income.” Prior periods were not restated. The impact of this change was immaterial. |
Gain (Loss) on Investments | Realized investment gains (losses), net, for the years ended December 31, were from the following sources: 2016 2015 2014 (in millions) Fixed maturities $ 666 $ 1,634 $ 1,194 Equity securities 376 451 512 Commercial mortgage and other loans 55 37 110 Investment real estate 15 40 (5 ) Joint ventures and limited partnerships (94 ) (122 ) (15 ) Derivatives(1) 1,175 1,970 (182 ) Other 1 15 22 Realized investment gains (losses), net $ 2,194 $ 4,025 $ 1,636 __________ (1) Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination. |
Unrealized Gains and (Losses) on Investments | The table below presents net unrealized gains (losses) on investments by asset class at December 31 for the years indicated: 2016 2015 2014 (in millions) Fixed maturity securities on which an OTTI loss has been recognized $ 312 $ 234 $ 349 Fixed maturity securities, available-for-sale—all other 28,526 24,673 33,625 Equity securities, available-for-sale 2,599 2,427 2,940 Derivatives designated as cash flow hedges(1) 1,316 1,165 206 Other investments(2) (21 ) (25 ) (7 ) Net unrealized gains (losses) on investments $ 32,732 $ 28,474 $ 37,113 __________ (1) See Note 21 for more information on cash flow hedges. (2) As of December 31, 2016 , there were no unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized losses on certain joint ventures that are strategic in nature and are included in “Other assets,” and losses on notes associated with payables under a netting agreement. |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings | The following tables set forth the composition of repurchase agreements as of the dates indicated: December 31, 2016 Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total (in millions) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 950 $ 6,417 $ 0 $ 0 $ 7,367 Obligations of U.S. states and their political subdivisions 0 0 0 0 0 Foreign government bonds 0 0 0 0 0 U.S. corporate public securities 0 0 0 0 0 U.S. corporate private securities 0 0 0 0 0 Foreign corporate public securities 6 0 0 0 6 Foreign corporate private securities 0 0 0 0 0 Asset-backed securities 0 0 0 0 0 Commercial mortgage-backed securities 0 0 0 0 0 Residential mortgage-backed securities 0 233 0 0 233 Equity securities 0 0 0 0 0 Total repurchase agreements $ 956 $ 6,650 $ 0 $ 0 $ 7,606 December 31, 2015 Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total (in millions) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 1,991 $ 4,513 $ 253 $ 0 $ 6,757 Obligations of U.S. states and their political subdivisions 0 0 0 0 0 Foreign government bonds 0 0 0 0 0 U.S. corporate public securities 11 0 0 0 11 U.S. corporate private securities 0 0 0 0 0 Foreign corporate public securities 0 0 0 0 0 Foreign corporate private securities 0 0 0 0 0 Asset-backed securities 0 0 0 0 0 Commercial mortgage-backed securities 0 0 0 0 0 Residential mortgage-backed securities 169 945 0 0 1,114 Equity securities 0 0 0 0 0 Total repurchase agreements $ 2,171 $ 5,458 $ 253 $ 0 $ 7,882 The following tables set forth the composition of securities lending transactions as of the dates indicated: December 31, 2016 Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total (in millions) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 9 $ 0 $ 0 $ 0 $ 9 Obligations of U.S. states and their political subdivisions 18 0 0 0 18 Foreign government bonds 279 0 0 0 279 U.S. corporate public securities 2,731 0 0 0 2,731 U.S. corporate private securities 0 0 0 0 0 Foreign corporate public securities 786 0 0 0 786 Foreign corporate private securities 0 0 0 0 0 Asset-backed securities 0 0 0 0 0 Commercial mortgage-backed securities 0 0 0 0 0 Residential mortgage-backed securities 55 74 0 0 129 Equity securities 381 0 0 0 381 Total securities lending transactions $ 4,259 $ 74 $ 0 $ 0 $ 4,333 December 31, 2015 Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days 30 to 90 Days Greater than 90 Days Total (in millions) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 94 $ 0 $ 0 $ 0 $ 94 Obligations of U.S. states and their political subdivisions 4 0 0 0 4 Foreign government bonds 0 0 0 0 0 U.S. corporate public securities 1,401 86 0 0 1,487 U.S. corporate private securities 0 0 0 0 0 Foreign corporate public securities 579 50 0 0 629 Foreign corporate private securities 0 0 0 0 0 Asset-backed securities 241 0 0 0 241 Commercial mortgage-backed securities 8 0 0 0 8 Residential mortgage-backed securities 0 97 0 0 97 Equity securities 936 0 0 0 936 Total securities lending transactions $ 3,263 $ 233 $ 0 $ 0 $ 3,496 |
Securities Pledged | At December 31, the carrying value of investments pledged to third parties as reported in the Consolidated Statements of Financial Position included the following: 2016 2015 (in millions) Fixed maturities $ 11,393 $ 11,732 Trading account assets supporting insurance liabilities 477 327 Other trading account assets 2 8 Separate account assets 3,386 2,128 Equity securities 368 903 Total securities pledged $ 15,626 $ 15,098 At December 31, the carrying amount of the associated liabilities supported by the pledged collateral as reported in the Consolidated Statements of Financial Position included the following: 2016 2015 (in millions) Securities sold under agreements to repurchase $ 7,606 $ 7,882 Cash collateral for loaned securities 4,333 3,496 Separate account liabilities 3,462 2,178 Policyholders’ account balances(1) 1,001 1,001 Total liabilities supported by the pledged collateral $ 16,402 $ 14,557 __________ (1) Represents amounts supporting outstanding funding agreements. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Schedule of Consolidated Variable Interest Entities | The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. The liabilities primarily comprise obligations under debt instruments issued by the VIEs that are non-recourse to the Company. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. Consolidated VIEs for Which the Company is the Investment Manager Other Consolidated VIEs December 31, December 31, 2016(1) 2015 2016 2015 (in millions) Fixed maturities, available-for-sale $ 65 $ 0 $ 269 $ 179 Fixed maturities, held-to-maturity 81 0 783 760 Trading account assets supporting insurance liabilities 0 0 9 10 Other trading account assets 2,140 9,536 0 0 Commercial mortgage and other loans 503 0 0 300 Other long-term investments 1,083 0 114 155 Cash and cash equivalents 618 337 1 1 Accrued investment income 10 56 4 3 Other assets 424 324 1 3 Total assets of consolidated VIEs $ 4,924 $ 10,253 $ 1,181 $ 1,411 Notes issued by consolidated VIEs $ 2,150 $ 8,597 $ 0 $ 0 Other liabilities 611 674 7 3 Total liabilities of consolidated VIEs $ 2,761 $ 9,271 $ 7 $ 3 __________ (1) As a result of the adoption of the new accounting guidance ASU 2015-02 effective January 1, 2016, total assets of consolidated VIEs reflects $1,386 million related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. |
Deferred Policy Acquisition C41
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule Of Deferred Acquisition Costs | The balances of and changes in DAC as of and for the years ended December 31, are as follows: 2016 2015 2014 (in millions) Balance, beginning of year $ 16,718 $ 15,971 $ 16,512 Capitalization of commissions, sales and issue expenses 2,845 2,653 2,694 Amortization—Impact of assumption and experience unlocking and true-ups 445 280 629 Amortization—All other (2,322 ) (2,400 ) (2,602 ) Change in unrealized investment gains and losses (199 ) 477 (697 ) Foreign currency translation and other 174 (263 ) (565 ) Balance, end of year $ 17,661 $ 16,718 $ 15,971 |
Investments in Operating Join42
Investments in Operating Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following tables set forth summarized combined financial information for significant joint ventures and limited partnership interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 7. Changes between periods in the tables below reflect changes in the activities within the joint ventures and limited partnerships, as well as changes in the Company’s level of investment in such entities. At December 31, 2016 2015 (in millions) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 59,897 $ 53,799 Total liabilities(2) $ 14,787 $ 13,610 Partners’ capital 45,110 40,189 Total liabilities and partners’ capital $ 59,897 $ 53,799 Total liabilities and partners’ capital included above $ 5,135 $ 4,398 Equity in limited partnership interests not included above 592 142 Carrying value $ 5,727 $ 4,540 __________ (1) Assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets. (2) Liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities. Years ended December 31, 2016 2015 2014 (in millions) STATEMENTS OF OPERATIONS Total revenue(1) $ 5,360 $ 4,356 $ 5,632 Total expenses(2) (1,995 ) (1,803 ) (1,654 ) Net earnings (losses) $ 3,365 $ 2,553 $ 3,978 Equity in net earnings (losses) included above $ 247 $ 216 $ 522 Equity in net earnings (losses) of limited partnership interests not included above 103 32 72 Total equity in net earnings (losses) $ 350 $ 248 $ 594 __________ (1) Revenue consists of income from investments in real estate, investments in securities and other income. (2) Expenses consist primarily of interest expense, management fees, salary expenses and other expenses. The following table sets forth information related to the Company’s investments in operating joint ventures as of and for the years ended December 31: 2016(1) 2015 2014 (in millions) Investment in operating joint ventures $ 994 $ 341 $ 325 Dividends received from operating joint ventures $ 60 $ 27 $ 27 After-tax equity earnings of operating joint ventures $ 49 $ 15 $ 16 __________ (1) Results include the impact of the Company’s investment in AFP Habitat in March of 2016. |
Value of Business Acquired (Tab
Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Present Value of Future Insurance Profits [Abstract] | |
Schedule of Present Value of Future Insurance Profits | The balances of and changes in VOBA as of and for the years ended December 31, are as follows: 2016(1) 2015 2014 (in millions) Balance, beginning of year $ 2,828 $ 2,836 $ 3,675 Acquisitions 0 0 7 Amortization—Impact of assumption and experience unlocking and true-ups (246 ) 128 (175 ) Amortization—All other (351 ) (385 ) (420 ) Change in unrealized investment gains and losses (112 ) 214 (89 ) Interest(2) 81 86 95 Foreign currency translation 114 (57 ) (257 ) Other 0 6 0 Balance, end of year $ 2,314 $ 2,828 $ 2,836 __________ (1) The VOBA balances at December 31, 2016 were $198 million , $33 million , $1,290 million , $0 million , $786 million , and $7 million related to the insurance transactions associated with the CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The weighted average remaining expected life of VOBA varies by product. The weighted average remaining expected lives were approximately 12 , 5 , 8 , 7 , 8 , and 16 years for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life., Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. (2) The interest accrual rates vary by product. The interest rates for 2016 were 6.40% , 6.00% , 1.28% to 2.87% , 2.60% , 3.00% to 6.17% and 4.07% to 5.51% for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The interest rates for 2015 were 6.40% , 6.05% , 1.28% to 2.87% , 2.60% , 3.00% to 6.17% and 4.07% to 5.51% for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, The Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. The interest rates for 2014 were 6.40% , 6.10% , 1.28% to 2.87% , 2.60% , 3.00% to 6.17% and 4.07% to 5.51% for the VOBA related to CIGNA, Prudential Annuities Holding Co., Gibraltar Life, Aoba Life, the Hartford Life Business, and Gibraltar BSN Life Berhad, respectively. |
Expected Amortization Expense of Ending Value of Future Insurance Profits | The following table provides estimated future amortization, net of interest, for the periods indicated. 2017 2018 2019 2020 2021 (in millions) Estimated future VOBA amortization $ 236 $ 210 $ 187 $ 168 $ 156 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the book value of goodwill by area are as follows: Retirement Asset Management International Insurance Total (in millions) Balance at December 31, 2013: Gross Goodwill $ 444 $ 240 $ 155 $ 839 Accumulated Impairment Losses 0 0 0 0 Net Goodwill 444 240 155 839 2014 Activity: Acquisitions 0 0 18 18 Other(1) 0 (5 ) (21 ) (26 ) Balance at December 31, 2014: Gross Goodwill 444 235 152 831 Accumulated Impairment Losses 0 0 0 0 Net Goodwill 444 235 152 831 2015 Activity: Acquisitions 0 0 0 0 Other(1) 0 (4 ) (3 ) (7 ) Balance at December 31, 2015: Gross Goodwill 444 231 149 824 Accumulated Impairment Losses 0 0 0 0 Net Goodwill 444 231 149 824 2016 Activity: Acquisitions 0 0 0 0 Other(1) 0 (1 ) 10 9 Balance at December 31, 2016: Gross Goodwill 444 230 159 833 Accumulated Impairment Losses 0 0 0 0 Net Goodwill $ 444 $ 230 $ 159 $ 833 __________ (1) Other represents foreign currency translation and purchase price adjustments. |
Schedule of Finite-Lived Intangible Assets | Other intangible balances at December 31, are as follows: 2016 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Subject to amortization: Mortgage servicing rights $ 548 $ (341 ) $ 207 $ 500 $ (302 ) $ 198 Customer relationships 243 (179 ) 64 268 (196 ) 72 Other 138 (102 ) 36 72 (42 ) 30 Not subject to amortization 3 N/A 3 3 N/A 3 Total $ 310 $ 303 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible balances at December 31, are as follows: 2016 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Subject to amortization: Mortgage servicing rights $ 548 $ (341 ) $ 207 $ 500 $ (302 ) $ 198 Customer relationships 243 (179 ) 64 268 (196 ) 72 Other 138 (102 ) 36 72 (42 ) 30 Not subject to amortization 3 N/A 3 3 N/A 3 Total $ 310 $ 303 |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Schedule of Liability for Future Policy Benefits, by Product Segment | Future policy benefits at December 31 for the years indicated are as follows: 2016 2015 (in millions) Life insurance $ 161,406 $ 148,100 Individual and group annuities and supplementary contracts 63,486 60,493 Other contract liabilities 13,173 12,872 Subtotal future policy benefits excluding unpaid claims and claim adjustment expenses 238,065 221,465 Unpaid claims and claim adjustment expenses 2,843 2,919 Total future policy benefits $ 240,908 $ 224,384 Policyholders’ account balances at December 31 for the years indicated are as follows: 2016 2015 (in millions) Individual annuities $ 40,338 $ 37,384 Group annuities 28,350 27,141 Guaranteed investment contracts and guaranteed interest accounts 14,528 14,122 Funding agreements 4,794 3,997 Interest-sensitive life contracts 34,452 32,502 Dividend accumulation and other 22,743 21,638 Total policyholders’ account balances $ 145,205 $ 136,784 |
Certain Long-Duration Contrac46
Certain Long-Duration Contracts with Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Schedule of Net Amount of Risk by Product and Guarantee | As of December 31, 2016 and 2015 , the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2016 December 31, 2015 In the Event of Death At Annuitization / Accumulation(1) In the Event of Death At Annuitization / Accumulation(1) ($ in millions) Annuity Contracts Return of net deposits Account value $ 119,433 $ 152 $ 115,317 $ 142 Net amount at risk $ 493 $ 0 $ 739 $ 0 Average attained age of contractholders 65 years 66 years 65 years 64 years Minimum return or contract value Account value $ 33,843 $ 135,462 $ 34,494 $ 131,005 Net amount at risk $ 3,714 $ 5,788 $ 4,212 $ 5,459 Average attained age of contractholders 67 years 65 years 67 years 64 years Average period remaining until earliest expected annuitization N/A 0.27 years N/A 0.28 years __________ (1) Includes income and withdrawal benefits. December 31, 2016 2015 In the Event of Death ($ in millions) Variable Life, Variable Universal Life and Universal Life Contracts No-lapse guarantees Separate account value $ 8,144 $ 7,643 General account value $ 14,513 $ 13,364 Net amount at risk $ 225,084 $ 211,428 Average attained age of contractholders 56 years 56 years |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2016 2015 (in millions) Equity funds $ 86,751 $ 88,992 Bond funds 48,789 46,642 Balanced funds 914 843 Money market funds 10,124 6,355 Total $ 146,578 $ 142,832 |
Schedule of Minimum Guaranteed Benefit Liabilities | The table below summarizes the changes in general account liabilities for guarantees. The liabilities for guaranteed minimum death benefits (“GMDB”), and guaranteed minimum income benefits (“GMIB”) are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.” Guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”), and guaranteed minimum income and withdrawal benefits (“GMIWB”) are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits.” Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 20 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The Company maintains a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. Additionally, the Company externally reinsures the guaranteed benefit features associated with certain contracts. See Note 13 for further information regarding the external reinsurance arrangement. GMDB GMIB GMAB/GMWB/GMIWB Variable Life, Variable Universal Life and Universal Life Annuity Annuity Annuity (in millions) Balance at December 31, 2013 $ 1,795 $ 461 $ 397 $ 441 Incurred guarantee benefits(1)(3) 794 245 40 7,741 Paid guarantee benefits and other (18 ) (68 ) (15 ) 0 Change in unrealized investment gains and losses(3) 283 4 44 0 Other(2)(3) (4 ) 0 1 0 Balance at December 31, 2014 2,850 642 467 8,182 Incurred guarantee benefits(1)(3) 517 167 (40 ) 252 Paid guarantee benefits (22 ) (85 ) (16 ) 0 Change in unrealized investment gains and losses(3) (193 ) (10 ) 41 0 Other(2)(3) (2 ) 0 (12 ) (1 ) Balance at December 31, 2015 3,150 714 440 8,433 Incurred guarantee benefits(1) 927 98 (18 ) (194 ) Paid guarantee benefits (36 ) (91 ) (15 ) 0 Change in unrealized investment gains and losses 102 0 49 0 Other(2) 0 0 18 (1 ) Balance at December 31, 2016 $ 4,143 $ 721 $ 474 $ 8,238 __________ (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives. (2) Other primarily represents foreign currency translation. (3) Prior period amounts are presented on a basis consistent with the current period presentation. |
Deferred Sales Inducements | Changes in DSI, reported as “Interest credited to policyholders’ account balances,” are as follows: Sales Inducements (in millions) Balance at December 31, 2013 $ 1,813 Capitalization 22 Amortization—Impact of assumption and experience unlocking and true-ups 81 Amortization—All other (403 ) Change in unrealized investment gains and losses 1 Balance at December 31, 2014 1,514 Capitalization 8 Amortization—Impact of assumption and experience unlocking and true-ups 43 Amortization—All other (392 ) Change in unrealized investment gains and losses 16 Balance at December 31, 2015 1,189 Capitalization 47 Amortization—Impact of assumption and experience unlocking and true-ups 118 Amortization—All other (231 ) Change in unrealized investment gains and losses 4 Balance at December 31, 2016 $ 1,127 |
Closed Block (Tables)
Closed Block (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Liabilities and Assets | Closed Block liabilities and assets designated to the Closed Block at December 31, as well as maximum future earnings to be recognized from Closed Block liabilities and Closed Block assets, are as follows: 2016 2015 (in millions) Closed Block liabilities Future policy benefits $ 49,281 $ 49,538 Policyholders’ dividends payable 932 945 Policyholders’ dividend obligation 4,658 4,509 Policyholders’ account balances 5,204 5,250 Other Closed Block liabilities 4,262 4,171 Total Closed Block liabilities 64,337 64,413 Closed Block assets Fixed maturities, available-for-sale, at fair value 38,696 37,584 Other trading account assets, at fair value 283 288 Equity securities, available-for-sale, at fair value 2,572 2,726 Commercial mortgage and other loans 9,437 9,770 Policy loans 4,660 4,790 Other long-term investments 3,020 2,921 Short-term investments 837 1,467 Total investments 59,505 59,546 Cash and cash equivalents 1,310 1,036 Accrued investment income 491 506 Other Closed Block assets 206 458 Total Closed Block assets 61,512 61,546 Excess of reported Closed Block liabilities over Closed Block assets 2,825 2,867 Portion of above representing accumulated other comprehensive income: Net unrealized investment gains (losses) 2,990 2,800 Allocated to policyholder dividend obligation (3,011 ) (2,815 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,804 $ 2,852 |
Schedule of Closed Block Dividend Obligation | Information regarding the policyholder dividend obligation is as follows: 2016 2015 (in millions) Balance, January 1 $ 4,509 $ 6,612 Impact from earnings allocable to policyholder dividend obligation (48 ) 137 Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 197 (2,240 ) Balance, December 31 $ 4,658 $ 4,509 |
Schedule of Closed Block Revenues Benefits Expenses | Closed Block revenues and benefits and expenses for the years ended December 31, are as follows: 2016 2015 2014 (in millions) Revenues Premiums $ 2,619 $ 2,668 $ 2,704 Net investment income 2,597 2,709 2,809 Realized investment gains (losses), net 433 834 1,164 Other income (loss) 36 23 34 Total Closed Block revenues 5,685 6,234 6,711 Benefits and Expenses Policyholders’ benefits 3,283 3,366 3,326 Interest credited to policyholders’ account balances 132 135 136 Dividends to policyholders 1,941 2,130 2,635 General and administrative expenses 402 423 444 Total Closed Block benefits and expenses 5,758 6,054 6,541 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes and discontinued operations (73 ) 180 170 Income tax expense (benefit) (120 ) 136 139 Closed Block revenues, net of Closed Block benefits and expenses and income taxes, before discontinued operations 47 44 31 Income (loss) from discontinued operations, net of taxes 0 0 1 Closed Block revenues, net of Closed Block benefits and expenses, income taxes and discontinued operations $ 47 $ 44 $ 32 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Information | Reinsurance amounts included in the Consolidated Statements of Operations for premiums, policy charges and fee income and policyholders’ benefits for the years ended December 31, were as follows: 2016 2015 2014 (in millions) Direct premiums $ 30,654 $ 27,996 $ 29,666 Reinsurance assumed 2,073 2,147 1,134 Reinsurance ceded (1,763 ) (1,622 ) (1,507 ) Premiums $ 30,964 $ 28,521 $ 29,293 Direct policy charges and fee income $ 5,031 $ 5,127 $ 5,026 Reinsurance assumed 1,243 1,179 1,425 Reinsurance ceded (368 ) (334 ) (272 ) Policy charges and fee income $ 5,906 $ 5,972 $ 6,179 Direct policyholders’ benefits $ 32,957 $ 29,242 $ 31,012 Reinsurance assumed 3,110 3,107 2,732 Reinsurance ceded (2,435 ) (1,722 ) (2,157 ) Policyholders’ benefits $ 33,632 $ 30,627 $ 31,587 |
Reinsurance Recoverables | Reinsurance recoverables at December 31, are as follows: 2016 2015 (in millions) Individual and group annuities(1) $ 658 $ 659 Life insurance(2) 3,388 2,885 Other reinsurance 165 160 Total reinsurance recoverables $ 4,211 $ 3,704 __________ (1) Primarily represents reinsurance recoverables established under the reinsurance arrangements associated with the acquisition of the retirement business of CIGNA. The Company has recorded reinsurance recoverables related to the acquisition of the retirement business of CIGNA of $656 million and $650 million at December 31, 2016 and 2015 , respectively. Also included is $0 million and $7 million of reinsurance recoverables at December 31, 2016 and 2015 , respectively, established under the reinsurance agreement with Union Hamilton Reinsurance, Ltd. related to the ceding of certain embedded derivative liabilities associated with the Company’s guaranteed benefits. (2) Includes $2,049 million and $2,118 million of reinsurance recoverables established at December 31, 2016 and 2015 , respectively, under the reinsurance arrangements associated with the acquisition of the Hartford Life Business. The Company has also recorded reinsurance payables related to the Hartford Life Business acquisition of $1,205 million and $1,305 million at December 31, 2016 and 2015 , respectively. |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term Debt | The table below presents the Company’s short-term debt at December 31, for the years indicated as follows: 2016 2015 ($ in millions) Commercial paper: Prudential Financial $ 65 $ 80 Prudential Funding, LLC 525 384 Subtotal commercial paper 590 464 Current portion of long-term debt 543 752 Total short-term debt(1) $ 1,133 $ 1,216 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 292 $ 331 Daily average commercial paper outstanding $ 1,020 $ 1,127 Weighted average maturity of outstanding commercial paper, in days 21 10 Weighted average interest rate on outstanding short-term debt(2) 0.43 % 0.16 % __________ (1) Includes Prudential Financial debt of $535 million and $831 million at December 31, 2016 and 2015 , respectively. (2) Excludes the current portion of long-term debt. |
Schedule of Line of Credit Facilities | As of December 31, 2016 , the Company maintained syndicated, unsecured committed credit facilities as described below. Borrower Original Term Expiration Date Capacity Amount Outstanding (in millions) Prudential Financial and Prudential Funding 5 years Apr 2020 $ 4,000 $ 0 Prudential Holdings of Japan, Inc. 3 years Sep 2019 ¥ 100,000 ¥ 0 |
Schedule of Long-term Debt Instruments | Maturity Dates Rate(2) December 31, 2016 2015(1) ($ in millions) Fixed-rate notes: Surplus notes 2019-2025 5.36%-8.30% $ 840 $ 841 Surplus notes subject to set-off arrangements 2021-2033 3.52%-5.26% 4,403 3,850 Senior notes 2017-2045 2.30%-11.31% 9,236 10,208 Mortgage debt(3) 2019-2024 1.72%-3.74% 177 134 Floating-rate notes: Surplus notes 2052 1.58%-2.04% 499 500 Surplus notes subject to set-off arrangements 2024 1.73%-2.25% 1,456 1,050 U.S. dollar-denominated senior notes 2017-2020 1.14%-4.39% 1,008 1,608 Foreign currency denominated senior notes (4) 1.07%-1.24% 55 51 Mortgage debt(5) 2017-2025 0.65%-2.40% 409 430 Junior subordinated notes 2042-2068 5.20%-8.88% 5,817 5,811 Subtotal 23,900 24,483 Less: assets under set-off arrangements(6) 5,859 4,889 Total long-term debt(7) $ 18,041 $ 19,594 __________ (1) Prior period has been revised to conform to current period presentation due to the adoption of ASU 2015-03 regarding debt issuance costs. For more information, see Note 2 to the Consolidated Financial Statements. (2) Ranges of interest rates are for the year ended December 31, 2016 . (3) Includes $82 million and $ 38 million of debt denominated in foreign currency at December 31, 2016 and 2015, respectively. (4) Perpetual debt that has no stated maturity. (5) Includes $221 million and $ 212 million of debt denominated in foreign currency at December 31, 2016 and 2015, respectively. (6) Assets under set-off arrangements represent a reduction in the amount of surplus notes included in long-term debt, resulting from an arrangement where valid rights of set-off exist and it is the intent of both parties to settle on a net basis under legally enforceable arrangements. These assets include available-for-sale securities that are valued at market. (7) Includes Prudential Financial debt of $15,389 million and $16,354 million at December 31, 2016 and 2015 , respectively |
Schedule of Maturities of Long-term Debt | The following table presents the contractual maturities of the Company’s long-term debt as of December 31, 2016 : Calendar Year 2018 2019 2020 2021 2022 and thereafter Total (in millions) Long-term debt $ 1,330 $ 1,684 $ 1,253 $ 554 $ 13,220 $ 18,041 |
Junior Subordinated Notes | Junior subordinated notes outstanding, along with their key terms, are as follows: Issue Date Principal Amount Initial Interest Rate Investor Type Optional Redemption Date(1) Interest Rate Subsequent to Optional Redemption Date Scheduled Maturity Date Final Maturity Date ($ in millions) June 2008 $ 600 8.88 % Institutional 6/15/2018 LIBOR + 5.00% 6/15/2038 6/15/2068 August 2012 $ 1,000 5.88 % Institutional 9/15/2022 LIBOR + 4.18% n/a 9/15/2042 November 2012 $ 1,500 5.63 % Institutional 6/15/2023 LIBOR + 3.92% n/a 6/15/2043 December 2012 $ 575 5.75 % Retail 12/4/2017 5.75% n/a 12/15/2052 March 2013 $ 710 5.70 % Retail 3/15/2018 5.70% n/a 3/15/2053 March 2013 $ 500 5.20 % Institutional 3/15/2024 LIBOR + 3.04% n/a 3/15/2044 May 2015 $ 1,000 5.38 % Institutional 5/15/2025 LIBOR + 3.03% n/a 3/15/2045 __________ (1) Represents the initial date on which the notes can be redeemed at par solely at the option of the Company, subject in the case of the 8.88% notes to compliance with a replacement capital covenant. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Common Stock Disclosure | The changes in the number of shares of Common Stock issued, held in treasury and outstanding, are as follows for the periods indicated: Common Stock Issued Held In Treasury Outstanding (in millions) Balance, December 31, 2013 660.1 199.0 461.1 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 11.6 (11.6 ) Stock-based compensation programs(1) 0.0 (5.3 ) 5.3 Balance, December 31, 2014 660.1 205.3 454.8 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 12.1 (12.1 ) Stock-based compensation programs(1) 0.0 (4.4 ) 4.4 Balance, December 31, 2015 660.1 213.0 447.1 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 25.1 (25.1 ) Stock-based compensation programs(1) 0.0 (7.6 ) 7.6 Balance, December 31, 2016 660.1 230.5 429.6 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of “Accumulated other comprehensive income (loss) attributable to Prudential Financial, Inc.” for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) Total Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2013 $ (113 ) $ 10,344 $ (1,550 ) $ 8,681 Change in OCI before reclassifications (1,066 ) 15,490 (1,134 ) 13,290 Amounts reclassified from AOCI (3 ) (1,760 ) 91 (1,672 ) Income tax benefit (expense) 207 (4,823 ) 367 (4,249 ) Balance, December 31, 2014 (975 ) 19,251 (2,226 ) 16,050 Change in OCI before reclassifications (245 ) (3,161 ) (457 ) (3,863 ) Amounts reclassified from AOCI 17 (2,325 ) 193 (2,115 ) Income tax benefit (expense) 116 2,008 89 2,213 Balance, December 31, 2015 (1,087 ) 15,773 (2,401 ) 12,285 Change in OCI before reclassifications 199 5,176 (468 ) 4,907 Amounts reclassified from AOCI 13 (1,493 ) 214 (1,266 ) Income tax benefit (expense) (98 ) (1,285 ) 78 (1,305 ) Balance, December 31, 2016 $ (973 ) $ 18,171 $ (2,577 ) $ 14,621 __________ (1) Includes cash flow hedges of $1,316 million , $1,165 million and $206 million as of December 31, 2016 , 2015 , and 2014 , respectively. |
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Years Ended December 31, Affected line item in Consolidated Statements of Operations 2016 2015 2014 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustment $ (13 ) $ (8 ) $ 3 Realized investment gains (losses), net Foreign currency translation adjustment 0 (9 ) 0 Other income Total foreign currency translation adjustment (13 ) (17 ) 3 Net unrealized investment gains (losses): Cash flow hedges—Interest Rate (5 ) (7 ) (60 ) (3) Cash flow hedges—Currency/Interest rate 456 247 114 (3) Net unrealized investment gains (losses) on available-for-sale securities 1,042 2,085 1,706 Total net unrealized investment gains (losses) 1,493 2,325 1,760 (4) Amortization of defined benefit items: Prior service cost 8 13 20 (5) Actuarial gain (loss) (222 ) (206 ) (111 ) (5) Total amortization of defined benefit items (214 ) (193 ) (91 ) Total reclassifications for the period $ 1,266 $ 2,115 $ 1,672 __________ (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 21 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ dividends. (5) See Note 18 for information on employee benefit plans. |
Net Unrealized Investment Gain (Loss) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments DAC, DSI, and VOBA Future Policy Benefits and Policyholders’ Account Balances Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2013 $ 110 $ (5 ) $ 4 $ 64 $ (60 ) $ 113 Net investment gains (losses) on investments arising during the period 196 (69 ) 127 Reclassification adjustment for (gains) losses included in net income 47 (16 ) 31 Reclassification adjustment for OTTI losses excluded from net income(1) (4 ) 1 (3 ) Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA (1 ) 0 (1 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances (1 ) 0 (1 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (96 ) 34 (62 ) Balance, December 31, 2014 349 (6 ) 3 (32 ) (110 ) 204 Net investment gains (losses) on investments arising during the period (3 ) 1 (2 ) Reclassification adjustment for (gains) losses included in net income (97 ) 35 (62 ) Reclassification adjustment for OTTI losses excluded from net income(1) (15 ) 5 (10 ) Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA 12 (4 ) 8 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances 11 (4 ) 7 Impact of net unrealized investment (gains) losses on policyholders’ dividends 1 0 1 Balance, December 31, 2015 234 6 14 (31 ) (77 ) 146 Net investment gains (losses) on investments arising during the period 93 (31 ) 62 Reclassification adjustment for (gains) losses included in net income 1 0 1 Reclassification adjustment for OTTI losses excluded from net income(1) (16 ) 5 (11 ) Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA (11 ) 3 (8 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances (20 ) (3 ) (23 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (16 ) 6 (10 ) Balance, December 31, 2016 $ 312 $ (5 ) $ (6 ) $ (47 ) $ (97 ) $ 157 __________ (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward | All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized DAC, DSI, Future Policy Policyholders’ Deferred Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2013 $ 20,494 $ (719 ) $ (679 ) $ (3,694 ) $ (5,171 ) $ 10,231 Net investment gains (losses) on investments arising during the period 18,073 (6,337 ) 11,736 Reclassification adjustment for (gains) losses included in net income (1,807 ) 632 (1,175 ) Reclassification adjustment for OTTI losses excluded from net income(2) 4 (1 ) 3 Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA (736 ) 254 (482 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances (603 ) 211 (392 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (1,342 ) 468 (874 ) Balance, December 31, 2014 36,764 (1,455 ) (1,282 ) (5,036 ) (9,944 ) 19,047 Net investment gains (losses) on investments arising during the period (6,311 ) 2,268 (4,043 ) Reclassification adjustment for (gains) losses included in net income (2,228 ) 801 (1,427 ) Reclassification adjustment for OTTI losses excluded from net income(2) 15 (5 ) 10 Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA 695 (240 ) 455 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances 200 (67 ) 133 Impact of net unrealized investment (gains) losses on policyholders’ dividends 2,234 (782 ) 1,452 Balance, December 31, 2015 28,240 (760 ) (1,082 ) (2,802 ) (7,969 ) 15,627 Net investment gains (losses) on investments arising during the period 5,658 (1,910 ) 3,748 Reclassification adjustment for (gains) losses included in net income (1,494 ) 504 (990 ) Reclassification adjustment for OTTI losses excluded from net income(2) 16 (5 ) 11 Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA (296 ) 93 (203 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances (54 ) (9 ) (63 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (178 ) 62 (116 ) Balance, December 31, 2016 $ 32,420 $ (1,056 ) $ (1,136 ) $ (2,980 ) $ (9,234 ) $ 18,014 __________ (1) Includes cash flow hedges. See Note 21 for information on cash flow hedges. (2) Represents “transfers out” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the years ended December 31, 2016 and 2015, is as follows: 2016 2015 Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount (in millions, except per share amounts) Basic earnings per share Income (loss) from continuing operations $ 4,419 $ 5,712 Less: Income (loss) attributable to noncontrolling interests 51 70 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 50 55 Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock $ 4,318 438.2 $ 9.85 $ 5,587 451.7 $ 12.37 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 50 $ 55 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 49 54 Stock options 1.8 2.3 Deferred and long-term compensation programs 0.9 0.9 Exchangeable Surplus Notes 17 5.7 17 5.5 Diluted earnings per share Income (loss) from continuing operations attributable to Prudential Financial available to holders of Common Stock $ 4,336 446.6 $ 9.71 $ 5,605 460.4 $ 12.17 A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on earnings attributable to the former Financial Services Businesses for the year ended December 31, 2014, is as follows: 2014 Income Weighted Average Shares Per Share Amount (in millions, except per share amounts) Basic earnings per share Income (loss) from continuing operations attributable to the Financial Services Businesses $ 1,579 Direct equity adjustment (27 ) Less: Income (loss) attributable to noncontrolling interests 57 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 14 Income (loss) from continuing operations attributable to the Financial Services Businesses available to holders of Common Stock after direct equity adjustment $ 1,481 458.5 $ 3.23 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 14 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 14 Stock options 3.0 Deferred and long-term compensation programs 0.8 Exchangeable Surplus Notes 17 5.4 Diluted earnings per share Income (loss) from continuing operations attributable to the Financial Services Businesses available to holders of Common Stock after direct equity adjustment $ 1,498 467.7 $ 3.20 |
Earnings Per Share Computation | For the years ended December 31, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows: 2016 2015 2014 Shares Exercise Price Per Share Shares Exercise Price Per Share Shares Exercise Price Per Share (in millions, except per share amounts, based on weighted average) Antidilutive stock options based on application of the treasury stock method 2.7 $ 83.97 2.4 $ 87.97 1.9 $ 90.30 Antidilutive stock options due to loss from continuing operations available to holders of Common Stock after direct equity adjustment 0.0 0.0 0.0 Antidilutive shares due to loss from continuing operations available to holders of Common Stock after direct equity adjustment 0.0 0.0 0.0 Total antidilutive stock options and shares 2.7 2.4 1.9 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share Based Payment Award Stock Options Valuation Assumptions | The weighted average grant date assumptions used in the binomial option valuation model are as follows: 2016 2015 2014 Expected volatility 38.36 % 34.67 % 35.52 % Expected dividend yield 3.92 % 3.00 % 2.70 % Expected term 5.61 years 5.57 years 5.63 years Risk-free interest rate 1.25 % 1.61 % 1.74 % |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following chart summarizes the compensation cost recognized and the related income tax benefit for stock options, restricted stock units, performance shares and performance units for the years ended December 31: 2016 2015 2014 Total Compensation Cost Recognized Income Tax Benefit Total Compensation Cost Recognized Income Tax Benefit Total Compensation Cost Recognized Income Tax Benefit (in millions) Employee stock options $ 19 $ 7 $ 21 $ 8 $ 25 $ 9 Employee restricted stock units 126 47 111 42 95 34 Employee performance shares and performance units 57 21 32 12 46 17 Total $ 202 $ 75 $ 164 $ 62 $ 166 $ 60 |
Schedule of Share Based Compensation Stock Options Activity | A summary of the status of the Company’s stock option grants is as follows: Employee Stock Options Shares Weighted Average Exercise Price Outstanding at December 31, 2015 10,926,146 $ 66.18 Granted 1,219,714 63.73 Exercised (4,986,622 ) 68.03 Forfeited (49,299 ) 73.24 Expired (371,137 ) 80.48 Outstanding at December 31, 2016 6,738,802 $ 63.53 Vested and expected to vest at December 31, 2016 6,693,811 $ 63.51 Exercisable at December 31, 2016 4,720,572 $ 60.66 The weighted average remaining contractual term and the aggregate intrinsic value of stock options outstanding, vested and expected to vest and exercisable as of December 31, 2016 is as follows: December 31, 2016 Employee Stock Options Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in millions) Outstanding 5.64 $ 273 Vested and expected to vest 5.62 $ 271 Exercisable 4.50 $ 205 |
Schedule of Nonvested Share Activity | A summary of the Company’s restricted stock units and performance shares and performance unit awards is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Performance Share and Performance Unit Awards(1) Weighted Average Grant Date Fair Value Restricted at December 31, 2015(2) 4,354,286 $ 73.50 1,390,497 $ 81.41 Granted(2) 2,187,653 64.12 694,501 104.06 Forfeited (110,815 ) 72.13 (41,676 ) 76.73 Performance adjustment(3) 188,838 63.59 Released (1,451,417 ) 58.54 (568,487 ) 63.71 Restricted at December 31, 2016(2) 4,979,707 $ 73.77 1,663,673 $ 104.06 __________ (1) Performance share and performance unit awards reflect the target units awarded, reduced for forfeitures and releases to date. The actual number of units to be awarded at the end of each performance period will range between 0% and 125% of the target number of units granted, based upon a measure of the reported performance for the Company relative to stated goals. (2) For performance share and performance unit awards, the grant date is the same as the date the grant vests. The features of the grant are such that a mutual understanding of the key terms and conditions of the award between the employee and employer have not been reached until the grant is vested. Consequently, the weighted average grant date fair value as of December 31, 2016 and December 31, 2015 is the closing stock price of Prudential Financial’s common stock on those dates. (3) Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Status of Employee Benefit Plans | The status of these plans as of December 31, 2016 and 2015 is summarized below: Pension Benefits Other Postretirement Benefits 2016 2015 2016 2015 (in millions) Change in benefit obligation Benefit obligation at the beginning of period $ (12,221 ) $ (12,545 ) $ (2,159 ) $ (2,233 ) Service cost (253 ) (244 ) (19 ) (20 ) Interest cost (498 ) (469 ) (91 ) (86 ) Plan participants’ contributions 0 0 (31 ) (29 ) Medicare Part D subsidy receipts 0 0 (10 ) (12 ) Amendments (3 ) 0 0 (2 ) Actuarial gains (losses), net (602 ) 335 46 43 Settlements 24 22 0 0 Special termination benefits (2 ) (4 ) 0 0 Benefits paid 681 632 181 176 Foreign currency changes and other (43 ) 52 (1 ) 4 Benefit obligation at end of period $ (12,917 ) $ (12,221 ) $ (2,084 ) $ (2,159 ) Change in plan assets Fair value of plan assets at beginning of period $ 12,541 $ 13,028 $ 1,584 $ 1,717 Actual return on plan assets 883 35 82 9 Employer contributions 187 162 15 5 Plan participants’ contributions 0 0 31 29 Disbursement for settlements (24 ) (22 ) 0 0 Benefits paid (681 ) (632 ) (181 ) (176 ) Foreign currency changes and other (45 ) (30 ) 0 0 Fair value of plan assets at end of period $ 12,861 $ 12,541 $ 1,531 $ 1,584 Funded status at end of period $ (56 ) $ 320 $ (553 ) $ (575 ) Amounts recognized in the Statements of Financial Position Prepaid benefit cost $ 2,538 $ 2,687 $ 0 $ 0 Accrued benefit liability (2,594 ) (2,367 ) (553 ) (575 ) Net amount recognized $ (56 ) $ 320 $ (553 ) $ (575 ) Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost: Transition obligation $ 0 $ 0 $ 0 $ 0 Prior service cost (25 ) (33 ) 1 (1 ) Net actuarial loss 3,481 3,173 557 621 Net amount not recognized $ 3,456 $ 3,140 $ 558 $ 620 Accumulated benefit obligation $ (12,300 ) $ (11,607 ) $ (2,084 ) $ (2,159 ) |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | 2016 2015 (in millions) Projected benefit obligation $ 2,638 $ 2,403 Fair value of plan assets $ 44 $ 36 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | 2016 2015 (in millions) Accumulated benefit obligation $ 2,426 $ 2,154 Fair value of plan assets $ 4 $ 5 |
Schedule of Net Benefit Costs | Net periodic (benefit) cost included in “General and administrative expenses” in the Company’s Consolidated Statements of Operations for the years ended December 31, includes the following components: Pension Benefits Other Postretirement Benefits 2016 2015 2014 2016 2015 2014 (in millions) Service cost $ 253 $ 244 $ 234 $ 19 $ 20 $ 17 Interest cost 498 469 481 91 86 96 Expected return on plan assets (754 ) (775 ) (712 ) (105 ) (115 ) (116 ) Amortization of transition obligation 0 0 0 0 0 0 Amortization of prior service cost (6 ) (8 ) (10 ) (2 ) (5 ) (10 ) Amortization of actuarial (gain) loss, net 181 168 86 41 38 25 Settlements 7 5 10 0 0 0 Special termination benefits(1) 2 4 4 0 0 0 Net periodic (benefit) cost $ 181 $ 107 $ 93 $ 44 $ 24 $ 12 __________ (1) Certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination. |
Schedule of Changes in Accumulated Other Comprehensive Income | The amounts recorded in AOCI as of the end of the period, which have not yet been recognized as a component of net periodic (benefit) cost, and the related changes in these items during the period that are recognized in “Other comprehensive income (loss)” are as follows: Pension Benefits Other Postretirement Benefits Transition Obligation Prior Service Cost Net Actuarial (Gain) Loss Transition Obligation Prior Service Cost Net Actuarial (Gain) Loss (in millions) Balance, December 31, 2013 $ 0 $ (56 ) $ 2,065 $ 0 $ (19 ) $ 463 Amortization for the period 0 10 (86 ) 0 10 (25 ) Deferrals for the period 0 (1 ) 1,001 0 0 165 Impact of foreign currency changes and other 0 5 (34 ) 0 1 (3 ) Balance, December 31, 2014 0 (42 ) 2,946 0 (8 ) 600 Amortization for the period 0 8 (168 ) 0 5 (38 ) Deferrals for the period 0 0 405 0 2 63 Impact of foreign currency changes and other 0 1 (10 ) 0 0 (4 ) Balance, December 31, 2015 0 (33 ) 3,173 0 (1 ) 621 Amortization for the period 0 6 (181 ) 0 2 (41 ) Deferrals for the period 0 3 473 0 0 (23 ) Impact of foreign currency changes and other 0 (1 ) 16 0 0 0 Balance, December 31, 2016 $ 0 $ (25 ) $ 3,481 $ 0 $ 1 $ 557 |
Amounts in AOCI to be recognized in next year | The amounts included in AOCI expected to be recognized as components of net periodic (benefit) cost in 2017 are as follows: Pension Benefits Other Postretirement Benefits (in millions) Amortization of prior service cost $ (4 ) $ 0 Amortization of actuarial (gain) loss, net 191 36 Total $ 187 $ 36 |
Schedule of Assumptions Used | The Company’s assumptions related to the calculation of the domestic benefit obligation (end of period) and the determination of net periodic (benefit) cost (beginning of period) are presented in the table below: Pension Benefits Other Postretirement Benefits 2016 2015 2014 2016 2015 2014 Weighted average assumptions Discount rate (beginning of period) 4.50 % 4.10 % 4.95 % 4.35 % 3.95 % 4.75 % Discount rate (end of period) 4.15 % 4.50 % 4.10 % 4.05 % 4.35 % 3.95 % Rate of increase in compensation levels (beginning of period) 4.50 % 4.50 % 4.50 % N/A N/A N/A Rate of increase in compensation levels (end of period) 4.50 % 4.50 % 4.50 % N/A N/A N/A Expected return on plan assets (beginning of period) 6.25 % 6.25 % 6.25 % 7.00 % 7.00 % 7.00 % Health care cost trend rates (beginning of period) N/A N/A N/A 7.00 % 6.66 % 7.08 % Health care cost trend rates (end of period) N/A N/A N/A 6.60 % 7.00 % 6.66 % For 2016, 2015 and 2014, the ultimate health care cost trend rate after gradual decrease until: 2019, 2019, 2019, (beginning of period) N/A N/A N/A 5.00 % 5.00 % 5.00 % For 2016, 2015 and 2014, the ultimate health care cost trend rate after gradual decrease until: 2021, 2021, 2019 (end of period) N/A N/A N/A 5.00 % 5.00 % 5.00 % |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects: Other Postretirement Benefits (in millions) One percentage point increase Increase in total service and interest costs $ 7 Increase in postretirement benefit obligation 158 One percentage point decrease Decrease in total service and interest costs $ 6 Decrease in postretirement benefit obligation 106 |
Schedule of Plans Assets-Fair Value and Allocation % (Target/Actual) | Asset allocation targets as of December 31, 2016 are as follows: Pension Postretirement Minimum Maximum Minimum Maximum Asset Category U.S. Equities 2 % 16 % 27 % 60 % International Equities 2 % 16 % 2 % 23 % Fixed Maturities 50 % 68 % 4 % 50 % Short-term Investments 0 % 15 % 0 % 42 % Real Estate 2 % 16 % 0 % 0 % Other 0 % 16 % 0 % 0 % Postretirement plan asset allocations in accordance with the investment guidelines are as follows: As of December 31, 2016 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Variable Life Insurance Policies(1) $ 0 $ 506 $ 0 $ 0 $ 506 Common trusts(2) 0 170 0 0 170 Subtotal 676 International Equities: Variable Life Insurance Policies(3) 0 90 0 0 90 Common trusts(4) 0 96 0 0 96 Subtotal 186 Fixed Maturities: Variable Life Insurance Policies(5) 0 157 0 0 157 Common trusts(5) 0 59 0 0 59 U.S. government securities (federal): Mortgage-Backed 0 0 0 0 0 Other U.S. government securities 0 78 0 0 78 Non-U.S. government securities 0 2 0 0 2 Corporate Debt: Corporate bonds(6) 0 176 0 0 176 Asset-Backed 0 48 1 0 49 Collateralized Mortgage Obligations(7) 0 22 5 0 27 Interest rate swaps (Notional amount: $271) 0 1 0 0 1 Other(8) 1 0 5 0 6 Unrealized gain (loss) on investment of securities lending collateral(9) 0 0 0 0 0 Subtotal 555 Short-term Investments: Registered investment companies 114 0 0 0 114 Subtotal 114 Total $ 115 $ 1,405 $ 11 $ 0 $ 1,531 As of December 31, 2015 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Variable Life Insurance Policies(1) $ 0 $ 592 $ 0 $ 0 $ 592 Common trusts(2) 0 169 0 0 169 Subtotal 761 International Equities: Variable Life Insurance Policies(3) 0 89 0 0 89 Common trusts(4) 0 97 0 0 97 Subtotal 186 Fixed Maturities: Variable Life Insurance Policies(5) 0 59 0 0 59 Common trusts(5) 0 67 0 0 67 U.S. government securities (federal): Mortgage-Backed 0 4 0 0 4 Other U.S. government securities 0 80 0 0 80 Non-U.S. government securities 0 5 0 0 5 Corporate Debt: Corporate bonds(6) 0 204 0 0 204 Asset-Backed 0 53 0 0 53 Collateralized Mortgage Obligations(7) 0 30 0 0 30 Interest rate swaps (Notional amount: $380) 0 0 0 0 0 Other(8) 6 0 3 0 9 Unrealized gain (loss) on investment of securities lending collateral(10) 0 0 0 0 0 Subtotal 511 Short-term Investments: Registered investment companies 126 0 0 0 126 Subtotal 126 Total $ 132 $ 1,449 $ 3 $ 0 $ 1,584 __________ (1) This category invests in U.S. equity funds, primarily large cap equities whose objective is to track an index via pooled separate accounts and registered investment companies. (2) This category invests in U.S. equity funds, primarily large cap equities. (3) This category invests in international equity funds, primarily large cap international equities whose objective is to track an index. (4) This category fund invests in large cap international equity fund whose objective is to outperform an index. (5) This category invests in U.S. government and corporate bond funds. (6) This category invests in highly rated corporate bonds. (7) This category invests in highly rated Collateralized Mortgage Obligations. (8) Cash and cash equivalents, short-term investments, payables and receivables and open future contract positions (including fixed income collateral). (9) In 2016 , the contractual net value of the investment of securities lending collateral and the liability for securities lending collateral is zero. (10) In 2015 , the contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $2 million and the liability for securities lending collateral is $2 million . Pension plan asset allocations in accordance with the investment guidelines are as follows: As of December 31, 2016 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Pooled separate accounts(1) $ 0 $ 472 $ 0 $ 0 $ 472 Common/collective trusts(1) 0 66 0 0 66 Subtotal 538 International Equities: Pooled separate accounts(2) 0 269 0 0 269 Common/collective trusts(3) 0 219 0 0 219 United Kingdom insurance pooled funds(4) 0 49 0 0 49 Subtotal 537 Fixed Maturities: Pooled separate accounts(5) 0 1,247 36 0 1,283 Common/collective trusts(6) 0 441 0 0 441 U.S. government securities (federal): Mortgage-backed 0 1 0 0 1 Other U.S. government securities 0 993 0 0 993 U.S. government securities (state & other) 0 521 0 0 521 Non-U.S. government securities 0 14 0 0 14 United Kingdom insurance pooled funds(7) 0 305 0 0 305 Corporate Debt: Corporate bonds(8) 0 4,039 0 0 4,039 Asset-backed 0 7 0 0 7 Collateralized Mortgage Obligations(9) 0 506 0 0 506 Interest rate swaps (Notional amount: $2,595) 0 9 0 0 9 Guaranteed investment contract 0 39 0 0 39 Other(10) 533 7 49 0 589 Unrealized gain (loss) on investment of securities lending collateral(11) 0 0 0 0 0 Subtotal 8,747 Short-term Investments: Pooled separate accounts 0 55 0 0 55 United Kingdom insurance pooled funds 0 1 0 0 1 Subtotal 56 Real Estate: Pooled separate accounts(12) 0 0 666 0 666 Partnerships 0 0 0 371 371 Subtotal 1,037 Other: Partnerships 0 0 0 551 551 Hedge funds 0 0 0 1,395 1,395 Subtotal 1,946 Total $ 533 $ 9,260 $ 751 $ 2,317 $ 12,861 As of December 31, 2015 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Pooled separate accounts(1) $ 0 $ 636 $ 0 $ 0 $ 636 Common/collective trusts(1) 0 85 0 0 85 Subtotal 721 International Equities: Pooled separate accounts(2) 0 321 0 0 321 Common/collective trusts(3) 0 229 0 0 229 United Kingdom insurance pooled funds(4) 0 50 0 0 50 Subtotal 600 Fixed Maturities: Pooled separate accounts(5) 0 1,183 35 0 1,218 Common/collective trusts(6) 0 347 0 0 347 U.S. government securities (federal): Mortgage-backed 0 1 0 0 1 Other U.S. government securities 0 661 0 0 661 U.S. government securities (state & other) 0 582 0 0 582 Non-U.S. government securities 0 14 0 0 14 United Kingdom insurance pooled funds(7) 0 293 0 0 293 Corporate Debt: Corporate bonds(8) 0 4,417 0 0 4,417 Asset-backed 0 8 0 0 8 Collateralized Mortgage Obligations(9) 0 109 0 0 109 Interest rate swaps (Notional amount: $2,073) 0 (5 ) 0 0 (5 ) Guaranteed investment contract 0 31 0 0 31 Other(10) 685 2 93 0 780 Unrealized gain (loss) on investment of securities lending collateral(13) 0 0 0 0 0 Subtotal 8,456 Short-term Investments: Pooled separate accounts 0 39 0 0 39 United Kingdom insurance pooled funds 0 0 0 0 0 Subtotal 39 Real Estate: Pooled separate accounts(12) 0 0 607 0 607 Partnerships 0 0 0 347 347 Subtotal 954 Other: Partnerships 0 0 0 481 481 Hedge funds 0 0 0 1,290 1,290 Subtotal 1,771 Total $ 685 $ 9,003 $ 735 $ 2,118 $ 12,541 __________ (1) These categories invest in U.S. equity funds whose objective is to track or outperform various indexes. (2) This category invests in a large cap international equity funds whose objective is to track an index. (3) This category invests in international equity funds, primarily large cap, whose objective is to outperform various indexes. This category also includes a global equity fund, primarily focused on new market leaders with sustainable competitive advantage. (4) This category invests in an international equity fund whose objective is to track an index. (5) This category invests in bond funds, primarily highly rated private placement securities. (6) This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index. (7) This category invests in bond funds, primarily highly rated corporate securities. (8) This category invests in highly rated corporate securities. (9) This category invests in highly rated Collateralized Mortgage Obligations. (10) Primarily cash and cash equivalents, short-term investments, payables and receivables, and open future contract positions (including fixed income collateral). (11) The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $627 million and the liability for securities lending collateral is $627 million . (12) This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index. (13) The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $163 million and the liability for securities lending collateral is $163 million . A summary of pension and postretirement plan asset allocation as of the year ended December 31, are as follows: Pension Percentage of Plan Assets Postretirement Percentage of Plan Assets 2016 2015 2016 2015 Asset Category U.S. Equities 4 % 6 % 44 % 48 % International Equities 4 5 12 12 Fixed Maturities 68 67 36 32 Short-term Investments 0 0 8 8 Real Estate 8 8 0 0 Other 16 14 0 0 Total 100 % 100 % 100 % 100 % |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | Year Ended December 31, 2016 Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Corporate Debt– Asset- Backed Fixed Maturities– Other (in millions) Fair Value, beginning of period $ 0 $ 0 $ 3 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 Relating to assets sold during the period 0 0 0 Purchases, sales and settlements 1 5 2 Transfers in and/or out of Level 3 0 0 0 Fair Value, end of period $ 1 $ 5 $ 5 Year Ended December 31, 2015 Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Corporate Debt– Asset- Backed Fixed Maturities– Other (in millions) Fair Value, beginning of period $ 1 $ 1 $ (5 ) Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 Relating to assets sold during the period 0 0 0 Purchases, sales and settlements 0 0 8 Transfers in and/or out of Level 3(1) (1 ) (1 ) 0 Fair Value, end of period $ 0 $ 0 $ 3 __________ (1) The transfers from level 3 to level 2 are due to the availability of external pricing sources. Year Ended December 31, 2016 Fixed Maturities– Pooled Separate Accounts Fixed Maturities– Other Real Estate– Pooled Separate Accounts (in millions) Fair Value, beginning of period $ 35 $ 93 $ 607 Actual Return on Assets: Relating to assets still held at the reporting date 1 0 61 Relating to assets sold during the period 0 0 6 Purchases, sales and settlements 0 (44 ) (8 ) Transfers in and/or out of Level 3 0 0 0 Fair Value, end of period $ 36 $ 49 $ 666 Year Ended December 31, 2015 Fixed Maturities– Pooled Separate Accounts Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Other Real Estate– Pooled Separate Accounts (in millions) Fair Value, beginning of period $ 35 $ 14 $ 73 $ 465 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 81 Relating to assets sold during the period 0 0 0 2 Purchases, sales and settlements 0 0 20 59 Transfers in and/or out of Level 3(1) 0 (14 ) 0 0 Fair Value, end of period $ 35 $ 0 $ 93 $ 607 __________ (1) The transfers from level 3 to level 2 are due to the availability of external pricing sources. |
Schedule of Expected Benefit Payments | The expected benefit payments for the Company’s pension and postretirement plans, as well as the expected Medicare Part D subsidy receipts related to the Company’s postretirement plan, for the years indicated are as follows: Pension Benefit Payments Other Postretirement Benefit Payments Other Postretirement Benefits– Medicare Part D Subsidy Receipts (in millions) 2017 $ 707 $ 167 $ 10 2018 740 171 11 2019 762 173 11 2020 787 173 11 2021 812 173 12 2022-2026 4,384 835 63 Total $ 8,192 $ 1,692 $ 118 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) for the years ended December 31 were as follows: 2016 2015 2014 (in millions) Current tax expense (benefit) U.S. $ 31 $ 738 $ (80 ) State and local 9 3 (7 ) Foreign 595 622 463 Total 635 1,363 376 Deferred tax expense (benefit) U.S. 132 585 880 State and local 5 4 12 Foreign 563 120 (919 ) Total 700 709 (27 ) Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures 1,335 2,072 349 Income tax expense on equity in earnings of operating joint ventures 11 (1 ) (2 ) Income tax expense on discontinued operations 0 0 6 Income tax expense (benefit) reported in equity related to: Other comprehensive income 1,305 (2,213 ) 4,249 Stock-based compensation programs (30 ) (22 ) (29 ) Total income taxes $ 2,621 $ (164 ) $ 4,573 |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s actual income tax expense on continuing operations before equity in earnings of operating joint ventures for the years ended December 31 differs from the expected amount computed by applying the statutory federal income tax rate of 35% to income from continuing operations before income taxes and equity in earnings of operating joint ventures for the following reasons: 2016 2015 2014 (in millions) Expected federal income tax expense (benefit) $ 1,997 $ 2,719 $ 616 Non-taxable investment income (352 ) (341 ) (381 ) Foreign taxes at other than U.S. rate (172 ) (51 ) 146 Low-income housing and other tax credits (118 ) (116 ) (127 ) Reversal of acquisition opening balance sheet deferred tax items 0 0 53 Change in repatriation assertion 0 (3 ) 32 Change in tax law: active financing exception 0 (108 ) 0 Other (20 ) (28 ) 10 Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures $ 1,335 $ 2,072 $ 349 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at December 31 resulted from the items listed in the following table: 2016 2015 (in millions) Deferred tax assets Insurance reserves $ 1,856 $ 2,878 Policyholders’ dividends 1,849 1,815 Net operating and capital loss carryforwards 190 181 Employee benefits 789 628 Investments 1,166 530 Other 0 0 Deferred tax assets before valuation allowance 5,850 6,032 Valuation allowance (163 ) (133 ) Deferred tax assets after valuation allowance 5,687 5,899 Deferred tax liabilities Net unrealized investment gains 10,551 9,167 Deferred policy acquisition costs 4,443 4,179 Investments 0 0 Unremitted foreign earnings 380 290 Value of business acquired 715 903 Other 393 291 Deferred tax liabilities 16,482 14,830 Net deferred tax liability $ (10,795 ) $ (8,931 ) |
Valuation Allowance For State Local And Foreign Deferred Tax Assets | The valuation allowance includes amounts recorded in connection with deferred tax assets as of December 31 as follows: 2016 2015 (in millions) Valuation allowance related to state and local deferred tax assets $ 138 $ 98 Valuation allowance related to foreign operations deferred tax assets $ 25 $ 35 |
Operating And Capital Loss Carryforwards | The following table sets forth the federal, state and foreign operating, capital loss and tax credit carryforwards for tax purposes, as of December 31: 2016 2015 (in millions) Federal net operating and capital loss carryforwards $ 0 $ 0 State net operating and capital loss carryforwards(1) $ 4,201 $ 3,687 Foreign operating loss carryforwards(2) $ 45 $ 65 General business credits $ 0 $ 0 Alternative minimum tax credits(3) $ 66 $ 85 __________ (1) Expires between 2017 and 2036. (2) $21 million expires between 2017 and 2025 and $24 million has an unlimited carryforward. (3) Alternative minimum tax credits do not expire. |
Schedule Of Repatriation | The following table sets forth the Company’s foreign operations and unremitted earnings for which the Company provides U.S. income taxes as of December 31, 2016: Foreign Operation Unremitted earnings for which the Company provides U.S. income taxes Japanese insurance operations - Pre-2014 U.S. GAAP earnings - Post-2013 realized and unrealized capital gains - An additional amount from Gibraltar Life and Prudential Gibraltar, not to exceed the deferred tax asset recorded in the Statements of Financial Position as of the acquisition date for Prudential Gibraltar and the Star and Edison Businesses Korean insurance operations Portion of post-2011 U.S. GAAP earnings Certain operations in Germany, Taiwan, Brazil, and non-insurance operations in Japan U.S. GAAP earnings |
Undistributed Earnings Of Foreign Subsidiaries Assuming Permanent Reinvestment | Determining the tax liability that would arise if these earnings were remitted is not practicable. At December 31, 2016 2015 2014 (in millions) Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment) $ 4,231 $ 3,215 $ 2,396 |
Unrecognized Tax Benefits Reconciliation | The Company’s unrecognized tax benefits for the years ended December 31 are as follows: 2016 2015 2014 (in millions) Balance at January 1, $ 6 $ 6 $ 11 Increases in unrecognized tax benefits—prior years 10 0 0 (Decreases) in unrecognized tax benefits—prior years 0 0 0 Increases in unrecognized tax benefits—current year 10 0 0 (Decreases) in unrecognized tax benefits—current year 0 0 0 Settlements with taxing authorities 0 0 (5 ) Balance at December 31, $ 26 $ 6 $ 6 Unrecognized tax benefits that, if recognized, would favorably impact the effective rate $ 26 $ 6 $ 6 |
Amounts Recognized In Consolidated Financial Statements For Tax Related Interest And Penalties | The amounts recognized in the consolidated financial statements for tax-related interest and penalties for the years ended December 31 are as follows: 2016 2015 2014 (in millions) Interest and penalties recognized in the consolidated statements of operations $ 1 $ 0 $ 2 2016 2015 (in millions) Interest and penalties recognized in liabilities in the consolidated statements of financial position $ 5 $ 4 |
Open Tax Years By Major Tax Jurisdictions | Listed below are the tax years that remain subject to examination, by major tax jurisdiction, as of December 31, 2016 : Major Tax Jurisdiction Open Tax Years United States 2009-2015 Japan Fiscal years ended March 31, 2012-2016 Korea Fiscal years ended March 31, 2012 and 2013, the periods ended December 31, 2013-2016 |
Fair Value of Assets and Liab55
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 23,784 $ 0 $ $ 23,784 Obligations of U.S. states and their political subdivisions 0 9,687 5 9,692 Foreign government bonds 0 96,132 124 96,256 U.S. corporate public securities 0 81,350 261 81,611 U.S. corporate private securities(7) 0 30,434 1,354 31,788 Foreign corporate public securities 0 28,166 71 28,237 Foreign corporate private securities 0 20,393 487 20,880 Asset-backed securities(8) 0 7,591 4,344 11,935 Commercial mortgage-backed securities 0 12,690 14 12,704 Residential mortgage-backed securities 0 4,335 197 4,532 Subtotal 0 314,562 6,857 321,419 Trading account assets:(2) U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 301 0 301 Obligations of U.S. states and their political subdivisions 0 194 0 194 Foreign government bonds 0 714 227 941 Corporate securities 0 16,992 188 17,180 Asset-backed securities(8) 0 1,086 329 1,415 Commercial mortgage-backed securities 0 2,061 1 2,062 Residential mortgage-backed securities 0 1,208 2 1,210 Equity securities 1,690 214 487 2,391 All other(3) 208 13,259 1 (11,708 ) 1,760 Subtotal 1,898 36,029 1,235 (11,708 ) 27,454 Equity securities, available-for-sale 6,033 3,450 265 9,748 Commercial mortgage and other loans 0 519 0 519 Other long-term investments 44 106 7 (8 ) 149 Short-term investments 5,623 1,558 1 7,182 Cash equivalents 3,885 4,421 0 8,306 Other assets 0 0 0 0 Subtotal excluding separate account assets 17,483 360,645 8,365 (11,716 ) 374,777 Separate account assets(4) 38,915 221,253 1,849 262,017 Total assets $ 56,398 $ 581,898 $ 10,214 $ (11,716 ) $ 636,794 Future policy benefits(5) $ 0 $ 0 $ 8,238 $ $ 8,238 Other liabilities 8 6,284 22 (5,945 ) 369 Notes issued by consolidated VIEs 0 0 1,839 1,839 Total liabilities $ 8 $ 6,284 $ 10,099 $ (5,945 ) $ 10,446 As of December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 0 $ 18,517 $ 0 $ $ 18,517 Obligations of U.S. states and their political subdivisions 0 8,789 6 8,795 Foreign government bonds 0 83,590 123 83,713 U.S. corporate public securities 0 75,163 205 75,368 U.S. corporate private securities(7) 0 29,750 694 30,444 Foreign corporate public securities 0 28,510 44 28,554 Foreign corporate private securities 0 18,859 279 19,138 Asset-backed securities(8) 0 6,178 4,048 10,226 Commercial mortgage-backed securities 0 10,424 38 10,462 Residential mortgage-backed securities 0 4,923 183 5,106 Subtotal 0 284,703 5,620 290,323 Trading account assets:(2) U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 288 0 288 Obligations of U.S. states and their political subdivisions 0 189 0 189 Foreign government bonds 0 697 34 731 Corporate securities 0 23,125 203 23,328 Asset-backed securities(8) 0 749 596 1,345 Commercial mortgage-backed securities 0 1,870 3 1,873 Residential mortgage-backed securities 0 1,509 4 1,513 Equity securities 1,542 221 589 2,352 All other(3) 630 14,173 5 (11,447 ) 3,361 Subtotal 2,172 42,821 1,434 (11,447 ) 34,980 Equity securities, available-for-sale 6,011 2,997 266 9,274 Commercial mortgage and other loans 0 274 0 274 Other long-term investments(6) 13 130 49 (10 ) 182 Short-term investments 6,776 711 0 7,487 Cash equivalents 4,834 9,374 0 14,208 Other assets 0 9 7 16 Subtotal excluding separate account assets 19,806 341,019 7,376 (11,457 ) 356,744 Separate account assets(4)(6) 43,076 214,838 1,995 259,909 Total assets $ 62,882 $ 555,857 $ 9,371 $ (11,457 ) $ 616,653 Future policy benefits(5) $ 0 $ 0 $ 8,434 $ $ 8,434 Other liabilities 1 5,306 2 (5,276 ) 33 Notes issued by consolidated VIEs 0 0 8,597 8,597 Total liabilities $ 1 $ 5,306 $ 17,033 $ (5,276 ) $ 17,064 __________ (1) “Netting” amounts represent cash collateral of $5,771 million and $6,181 million as of December 31, 2016 and 2015 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Includes “Trading account assets supporting insurance liabilities” and “Other trading account assets.” (3) Level 1 represents cash equivalents and short term investments. All other amounts primarily represent derivative assets. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. (5) As of December 31, 2016 , the net embedded derivative liability position of $8.2 billion includes $1.2 billion of embedded derivatives in an asset position and $9.4 billion of embedded derivatives in a liability position. As of December 31, 2015 , the net embedded derivative liability position of $8.4 billion includes $0.7 billion of embedded derivatives in an asset position and $9.1 billion of embedded derivatives in a liability position. (6) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. (7) Excludes notes with fair value of $1,456 million and $1,039 million as of December 31, 2016 and 2015 , respectively, which have been offset with the associated payables under a netting agreement. (8) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
Fair Value Level Three Amounts By Pricing Source | The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources. As of December 31, 2016 Internal(1) External(2) Total (in millions) Obligations of U.S. states and their political subdivisions $ 5 $ 0 $ 5 Foreign government bonds 0 351 351 Corporate securities(3) 1,848 513 2,361 Asset-backed securities(4) 148 4,525 4,673 Commercial mortgage-backed securities 14 1 15 Residential mortgage-backed securities 18 181 199 Equity securities 143 609 752 Other long-term investments 6 1 7 Short-term investments 1 0 1 Other assets 1 0 1 Subtotal excluding separate account assets 2,184 6,181 8,365 Separate account assets 1,179 670 1,849 Total assets $ 3,363 $ 6,851 $ 10,214 Future policy benefits $ 8,238 $ 0 $ 8,238 Other liabilities 22 0 22 Notes issued by consolidated VIEs 0 1,839 1,839 Total liabilities $ 8,260 $ 1,839 $ 10,099 As of December 31, 2015 Internal(1) External(2) Total (in millions) Obligations of U.S. states and their political subdivisions $ 6 $ 0 $ 6 Foreign government bonds 0 157 157 Corporate securities(3) 1,085 340 1,425 Asset-backed securities(4) 149 4,495 4,644 Commercial mortgage-backed securities 5 36 41 Residential mortgage-backed securities 37 150 187 Equity securities 63 792 855 Other long-term investments(5) 39 10 49 Other assets 12 0 12 Subtotal excluding separate account assets 1,396 5,980 7,376 Separate account assets(5) 1,024 971 1,995 Total assets $ 2,420 $ 6,951 $ 9,371 Future policy benefits $ 8,434 $ 0 $ 8,434 Other liabilities 2 0 2 Notes issued by consolidated VIEs 0 8,597 8,597 Total liabilities $ 8,436 $ 8,597 $ 17,033 __________ (1) Represents valuations reflecting both internally-derived and market inputs, as well as third-party pricing information or quotes. See below for additional information related to internally-developed valuation for significant items in the above table. (2) Represents unadjusted prices from independent pricing services and independent indicative broker quotes where pricing inputs are not readily available. (3) Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets. (4) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (5) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-07. |
Fair Value Inputs Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities (see narrative below for quantitative information for separate account assets). As of December 31, 2016 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in millions) Assets: Corporate securities(2) $ 1,848 Discounted cash flow Discount rate 0.70% — 20% 7.12 % Decrease Market comparables EBITDA multiples(3) 4.0X — 4.0X 4.0X Increase Liquidation Liquidation value 15.19% — 98.68% 91.72 % Increase Liabilities: Future policy benefits(4) $ 8,238 Discounted cash flow Lapse rate(5) 0% — 13% Decrease NPR spread(6) 0.25% — 1.50% Decrease Utilization rate(7) 52% — 96% Increase Withdrawal rate See table footnote (8) below. Mortality rate(9) 0% — 14% Decrease Equity volatility curve 16% — 25% Increase As of December 31, 2015 Fair Value Valuation Techniques Unobservable Inputs Minimum Maximum Weighted Average Impact of Increase in Input on Fair Value(1) (in millions) Assets: Corporate securities(2) $ 1,085 Discounted cash flow Discount rate 0.93% — 25% 7.66% Decrease Market comparables EBITDA multiples(3) 1.4X — 5.0X 3.7X Increase Liquidation Liquidation value 15.79% — 29.33% 17.77% Increase Liabilities: Future policy benefits(4) $ 8,434 Discounted cash flow Lapse rate(5) 0% — 14% Decrease NPR spread(6) 0.06% — 1.76% Decrease Utilization rate(7) 56% — 96% Increase Withdrawal rate(8) 74% — 100% Increase Mortality rate(9) 0% — 14% Decrease Equity volatility curve 17% — 28% Increase __________ (1) Conversely, the impact of a decrease in input would have the opposite impact for the fair value as that presented in the table. (2) Includes assets classified as fixed maturities available-for-sale, trading account assets supporting insurance liabilities and other trading account assets. (3) Represents multiples of earnings before interest, taxes, depreciation and amortization (“EBITDA”), and are amounts used when the reporting entity has determined that market participants would use such multiples when pricing the investments. (4) Future policy benefits primarily represent general account liabilities for the living benefit features of the Company’s variable annuity contracts which are accounted for as embedded derivatives. Since the valuation methodology for these liabilities uses a range of inputs that vary at the contract level over the cash flow projection period, presenting a range, rather than weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) Lapse rates are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. (6) To reflect NPR, the Company incorporates an additional spread over LIBOR into the discount rate used in the valuation of individual living benefit contracts in a liability position and generally not to those in a contra-liability position. The NPR spread reflects the financial strength ratings of the Company, as these are insurance liabilities and senior to debt. The additional spread over LIBOR is determined by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. (7) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration, and begin lifetime withdrawals at various time intervals from contract inception. The remaining contractholders are assumed to either begin lifetime withdrawals immediately or never utilize the benefit. Utilization assumptions may vary by product type, tax status, and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal. Range reflects the utilization rate for the vast majority of business with living benefits. (8) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of December 31, 2016 , the minimum withdrawal rate assumption is 78% and the maximum withdrawal rate assumption may be greater than 100% . The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%. (9) Range reflects the mortality rate for the vast majority of business with living benefits, with policyholders ranging from 35 to 90 years old. While the majority of living benefits have a minimum age requirement, certain benefits do not have an age restriction. This results in contractholders for certain benefits with mortality rates approaching 0% . Based on historical experience, the Company applies a set of age and duration specific mortality rate adjustments compared to standard industry tables. A mortality improvement assumption is also incorporated into the overall mortality table. |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | –The following tables provide summaries of the changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. Year Ended December 31, 2016 Fixed Maturities Available-For-Sale U.S. States Foreign Government U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities (in millions) Fair Value, beginning of period $ 6 $ 123 $ 205 $ 694 $ 44 $ 279 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (129 ) 0 (2 ) Included in other comprehensive income (loss) 0 (3 ) 17 64 4 (9 ) Net investment income 0 0 1 9 0 1 Purchases 0 0 24 144 44 106 Sales 0 0 (1 ) (5 ) (1 ) (11 ) Issuances 0 0 0 0 0 0 Settlements (1 ) 0 (3 ) (88 ) (4 ) (228 ) Foreign currency translation 0 3 2 1 3 (1 ) Other(1) 0 0 (13 ) 0 13 0 Transfers into Level 3(2) 0 1 73 775 88 550 Transfers out of Level 3(2) 0 0 (44 ) (111 ) (120 ) (198 ) Fair Value, end of period $ 5 $ 124 $ 261 $ 1,354 $ 71 $ 487 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (109 ) $ 0 $ (1 ) Year Ended December 31, 2016 Fixed Maturities Available-For-Sale Asset- Backed(7) Commercial Mortgage- Backed Residential Mortgage- Backed (in millions) Fair Value, beginning of period $ 4,048 $ 38 $ 183 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 9 1 0 Included in other comprehensive income (loss) (15 ) (7 ) (1 ) Net investment income 13 1 (1 ) Purchases 3,342 155 85 Sales (377 ) (34 ) (33 ) Issuances 0 0 0 Settlements (643 ) (3 ) (54 ) Foreign currency translation 17 0 18 Other(1) 159 0 0 Transfers into Level 3(2) 1,768 19 0 Transfers out of Level 3(2) (3,977 ) (156 ) 0 Fair Value, end of period $ 4,344 $ 14 $ 197 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Year Ended December 31, 2016 Trading Account Assets Foreign Government Corporate Asset- Backed(7) Commercial Mortgage- Backed Residential Mortgage- Backed Equity All Other Activity (in millions) Fair Value, beginning of period $ 34 $ 203 $ 596 $ 3 $ 4 $ 589 $ 5 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 0 0 Other income (5 ) (9 ) (10 ) (1 ) (1 ) 8 1 Net investment income 1 2 2 0 0 0 0 Purchases 201 11 185 0 0 20 0 Sales 0 (3 ) (49 ) 0 0 (65 ) 0 Issuances 0 0 0 0 0 0 0 Settlements (4 ) (41 ) (120 ) 0 (2 ) (108 ) 0 Foreign currency translation 0 0 (2 ) 0 0 31 0 Other(1) 0 (15 ) 141 (1 ) 1 14 (5 ) Transfers into Level 3(2) 0 151 252 0 0 28 0 Transfers out of Level 3(2) 0 (111 ) (666 ) 0 0 (30 ) 0 Fair Value, end of period $ 227 $ 188 $ 329 $ 1 $ 2 $ 487 $ 1 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ (5 ) $ (10 ) $ (2 ) $ (1 ) $ (1 ) $ 3 $ 1 Year Ended December 31, 2016 Equity Securities Available- For-Sale Other Long-term Investments Short-term Investments Other Assets (in millions) Fair Value, beginning of period $ 266 $ 49 $ 0 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 52 (1 ) 0 (30 ) Other income 0 0 0 0 Included in other comprehensive income (loss) (75 ) 0 0 0 Net investment income 0 (1 ) 0 0 Purchases 99 1 1 23 Sales (79 ) 0 0 0 Issuances 0 0 0 0 Settlements (13 ) 0 0 0 Foreign currency translation 13 0 0 0 Other(1) 0 (33 ) 0 0 Transfers into Level 3(2) 9 0 0 0 Transfers out of Level 3(2) (7 ) (8 ) 0 0 Fair Value, end of period $ 265 $ 7 $ 1 $ 0 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ (1 ) $ 0 $ (30 ) Other income $ 0 $ 0 $ 0 $ 0 Year Ended December 31, 2016 Separate Account Assets(4) Future Policy Benefits Other Liabilities Notes Issued by Consolidated VIEs (in millions) Fair Value, beginning of period $ 1,995 $ (8,434 ) $ (2 ) $ (8,597 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 1,252 (8 ) (23 ) Other income 0 0 0 (14 ) Interest credited to policyholders’ account balances 22 0 0 0 Net investment income 17 0 0 0 Purchases 555 0 0 0 Sales (141 ) 0 0 0 Issuances 0 (1,056 ) 0 (2,187 ) Settlements (485 ) 0 (6 ) 697 Foreign currency translation 0 0 0 0 Other(1) 0 0 (6 ) 8,285 Transfers into Level 3(2) 344 0 0 0 Transfers out of Level 3(2) (459 ) 0 0 0 Fair Value, end of period $ 1,849 $ (8,238 ) $ (22 ) $ (1,839 ) Unrealized gains (losses) for assets/liabilities still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ 1,046 $ (9 ) $ (23 ) Other income $ 0 $ 0 $ 0 $ (14 ) Interest credited to policyholders’ account balances $ 3 $ 0 $ 0 $ 0 Year Ended December 31, 2015 Fixed Maturities Available-For-Sale U.S. States Foreign Government U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities (in millions) Fair Value, beginning of period $ 6 $ 2 $ 357 $ 523 $ 252 $ 171 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (14 ) 0 (81 ) Included in other comprehensive income (loss) 0 (3 ) 1 (27 ) 6 27 Net investment income(6) 0 0 1 12 0 4 Purchases 15 20 33 182 33 108 Sales (1 ) 0 (1 ) (43 ) (51 ) 0 Issuances 0 0 0 0 0 0 Settlements(6) 0 0 (26 ) (110 ) (32 ) (90 ) Foreign currency translation 0 (4 ) (3 ) 0 (5 ) 0 Other(1) 0 0 0 (3 ) 0 0 Transfers into Level 3(2) 0 129 23 209 0 140 Transfers out of Level 3(2) (14 ) (21 ) (180 ) (35 ) (159 ) 0 Fair Value, end of period $ 6 $ 123 $ 205 $ 694 $ 44 $ 279 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (19 ) $ 0 $ (68 ) Year Ended December 31, 2015 Fixed Maturities Available-For-Sale Asset- Backed(7) Commercial Mortgage- Backed Residential Mortgage- Backed (in millions) Fair Value, beginning of period $ 4,059 $ 43 $ 253 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 40 1 0 Included in other comprehensive income (loss) (37 ) (1 ) (2 ) Net investment income 21 0 (1 ) Purchases 1,234 44 0 Sales (563 ) 0 (7 ) Issuances (4 ) 0 0 Settlements (308 ) (6 ) (52 ) Foreign currency translation (13 ) 0 (8 ) Other(1) 3 0 0 Transfers into Level 3(2) 2,555 2 0 Transfers out of Level 3(2) (2,939 ) (45 ) 0 Fair Value, end of period $ 4,048 $ 38 $ 183 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 4 $ 0 $ 0 Year Ended December 31, 2015 Trading Account Assets Foreign Corporate Asset- Backed(7) Commercial Mortgage- Backed Residential Mortgage- Backed Equity All Other Activity (in millions) Fair Value, beginning of period $ 21 $ 124 $ 393 $ 5 $ 7 $ 663 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 0 0 Other income 0 (28 ) (7 ) 0 0 (15 ) (1 ) Net investment income 0 1 1 0 0 0 0 Purchases 16 124 325 27 0 28 0 Sales 0 (15 ) (16 ) (3 ) 0 (26 ) (1 ) Issuances 0 0 0 0 0 0 0 Settlements (3 ) (39 ) (11 ) (2 ) (2 ) (40 ) 0 Foreign currency translation 0 0 0 0 0 (13 ) 0 Other(1) 0 0 0 0 0 (8 ) 0 Transfers into Level 3(2) 0 77 272 1 0 0 0 Transfers out of Level 3(2) 0 (41 ) (361 ) (25 ) (1 ) 0 0 Fair Value, end of period $ 34 $ 203 $ 596 $ 3 $ 4 $ 589 $ 5 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ 9 $ (7 ) $ 0 $ 0 $ 6 $ (1 ) Year Ended December 31, 2015 Equity Securities Available- For-Sale Other Long-term Investments(5) Other Assets (in millions) Fair Value, beginning of period $ 275 $ 13 $ 2 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 15 21 0 Other income 0 0 0 Included in other comprehensive income (loss) 1 0 0 Net investment income 0 (1 ) 0 Purchases 31 19 0 Sales (48 ) (2 ) 0 Issuances 0 0 5 Settlements (3 ) 0 0 Foreign currency translation (7 ) 0 0 Other(1) 0 0 0 Transfers into Level 3(2) 2 0 0 Transfers out of Level 3(2) 0 (1 ) 0 Fair Value, end of period $ 266 $ 49 $ 7 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ (3 ) $ 19 $ 2 Other income $ 0 $ 0 $ 0 Year Ended December 31, 2015 Separate Account Assets(4)(5) Future Policy Benefits Other Liabilities Notes Issued by Consolidated VIEs (in millions) Fair Value, beginning of period $ 1,738 $ (8,182 ) $ (5 ) $ (6,033 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 717 1 287 Other income 0 0 0 146 Interest credited to policyholders’ account balances (38 ) 0 0 0 Net investment income 24 0 0 0 Purchases 1,060 0 0 0 Sales (175 ) 0 0 0 Issuances 0 (969 ) 0 (2,997 ) Settlements (140 ) 0 2 0 Foreign currency translation (5 ) 0 0 0 Other(1) 0 0 0 0 Transfers into Level 3(2) 51 0 0 0 Transfers out of Level 3(2) (520 ) 0 0 0 Fair Value, end of period $ 1,995 $ (8,434 ) $ (2 ) $ (8,597 ) Unrealized gains (losses) for assets/liabilities still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ 485 $ 1 $ 287 Other income $ 0 $ 0 $ 0 $ 146 Interest credited to policyholders’ account balances $ 318 $ 0 $ 0 $ 0 The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and other comprehensive income for the year ended December 31, 2014 , as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held as of December 31, 2014 . Year Ended December 31, 2014 Fixed Maturities Available-For-Sale U.S. Corporate Public Securities U.S. Corporate Private Securities Foreign Corporate Public Securities Foreign Corporate Private Securities Asset- Backed(7) Commercial Mortgage- Backed (in millions) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 0 $ 9 $ (8 ) $ 19 $ 17 $ 4 Included in other comprehensive income (loss) $ 11 $ 2 $ 52 $ (20 ) $ 24 $ (1 ) Net investment income $ (1 ) $ 8 $ 1 $ (18 ) $ 17 $ 0 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ (20 ) $ 0 $ 0 $ 2 $ 0 Year Ended December 31, 2014 Trading Account Assets Corporate Asset- Backed(7) Residential Mortgage- Backed Equity All Other Activity (in millions) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 1 $ 0 Other income $ (7 ) $ 0 $ 0 $ 13 $ 1 Net investment income $ 0 $ 1 $ 0 $ 0 $ 0 Unrealized gains (losses) for assets still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 1 $ 0 Other income $ 6 $ 0 $ 1 $ 16 $ 1 Year Ended December 31, 2014 Equity Securities Available- For-Sale Other Long-term Investments(5) (in millions) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 8 $ (1 ) Included in other comprehensive income (loss) $ 9 $ 0 Unrealized gains (losses) for assets/liabilities still held(3): Included in earnings: Realized investment gains (losses), net $ (2 ) $ (1 ) Year Ended December 31, 2014 Separate Account Assets(4)(5) Future Policy Benefits Other Liabilities Notes Issued by Consolidated VIEs (in millions) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 0 $ (6,831 ) $ 2 $ 201 Interest credited to policyholders’ account balances $ (11 ) $ 0 $ 0 $ 0 Net investment income $ 24 $ 0 $ 0 $ 0 Unrealized gains (losses) for assets/liabilities still held(3): Included in earnings: Realized investment gains (losses), net $ 0 $ (6,853 ) $ 2 $ 201 Interest credited to policyholders’ account balances $ (8 ) $ 0 $ 0 $ 0 __________ (1) Other as of December 31, 2016 primarily represents deconsolidations of certain previously consolidated collateralized loan obligations. Other as of December 31, 2015 primarily represents reclassifications of certain assets between reporting categories. (2) Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfers occur for any such assets still held at the end of the quarter. (3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statements of Financial Position. (5) Prior period amounts have been reclassified to conform to current period presentation, including the adoption of ASU 2015-07. (6) Amounts for the year ended December 31, 2015 , have been revised to correct the previously reported amounts. (7) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types. |
Fair Value Assets and Liabilities Measured on Recurring Basis, Derivatives | The following tables present the balance of derivative assets and liabilities measured at fair value on a recurring basis, as of the date indicated, by primary underlying. These tables include NPR and exclude embedded derivatives and associated reinsurance recoverables. The derivative assets and liabilities shown below are included in “Trading account assets-All Other Activity,” “Other long-term investments” or “Other liabilities” in the tables presented above, under the headings “Assets and Liabilities by Hierarchy Level” and “Changes in Level 3 Assets and Liabilities.” As of December 31, 2016 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative assets: Interest Rate $ 55 $ 9,269 $ 6 $ 9,330 Currency 0 375 0 375 Credit 0 1 0 1 Currency/Interest Rate 0 3,174 0 3,174 Equity 0 203 0 203 Commodity 0 0 0 0 Netting(1) (11,716 ) (11,716 ) Total derivative assets $ 55 $ 13,022 $ 6 $ (11,716 ) $ 1,367 Derivative liabilities: Interest Rate $ 1 $ 4,515 $ 2 $ 4,518 Currency 0 893 0 893 Credit 0 25 0 25 Currency/Interest Rate 0 365 0 365 Equity 6 483 0 489 Commodity 0 0 0 0 Netting(1) (5,945 ) (5,945 ) Total derivative liabilities $ 7 $ 6,281 $ 2 $ (5,945 ) $ 345 As of December 31, 2015 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative assets: Interest Rate $ 11 $ 10,561 $ 7 $ 10,579 Currency 0 318 0 318 Credit 0 3 0 3 Currency/Interest Rate 0 2,995 0 2,995 Equity 4 254 32 290 Commodity 0 0 0 0 Netting(1) (11,457 ) (11,457 ) Total derivative assets $ 15 $ 14,131 $ 39 $ (11,457 ) $ 2,728 Derivative liabilities: Interest Rate $ 3 $ 4,573 $ 2 $ 4,578 Currency 0 114 0 114 Credit 0 53 0 53 Currency/Interest Rate 0 244 0 244 Equity 0 327 0 327 Commodity 0 0 0 0 Netting(1) (5,276 ) (5,276 ) Total derivative liabilities $ 3 $ 5,311 $ 2 $ (5,276 ) $ 40 __________ (1) “Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty. |
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation, Derivatives | The following tables provide a summary of the changes in fair value of Level 3 derivative assets and liabilities for the year ended December 31, 2016 , as well as the portion of gains or losses included in income for the year ended December 31, 2016 , attributable to unrealized gains or losses related to those assets and liabilities still held at December 31, 2016 . Year Ended December 31, 2016 Derivative Assets– Equity Derivative Assets– Interest Rate (in millions) Fair Value, beginning of period $ 32 $ 5 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 (1 ) Other income 0 0 Purchases 0 0 Sales 0 0 Issuances 0 0 Settlements 0 0 Other(1) (32 ) 0 Transfers into Level 3(2) 0 0 Transfers out of Level 3(2) 0 0 Fair Value, end of period $ 0 $ 4 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period: Included in earnings: Realized investment gains (losses), net $ 0 $ 0 Other income $ 0 $ 0 Year Ended December 31, 2015 Derivative Assets– Equity Derivative Assets– Interest Rate (in millions) Fair Value, beginning of period $ 6 $ 3 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 20 2 Other income 0 0 Purchases 9 0 Sales (2 ) 0 Issuances 0 0 Settlements 0 0 Other 0 0 Transfers into Level 3(2) 0 0 Transfers out of Level 3(2) (1 ) 0 Fair Value, end of period $ 32 $ 5 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period: Included in earnings: Realized investment gains (losses), net $ 20 $ 2 Other income $ 0 $ 0 Year Ended December 31, 2014 Derivative Assets– Equity Derivative Assets– Interest Rate (in millions) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net $ 1 $ 0 Other income $ 0 $ 0 Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of the period: Included in earnings: Realized investment gains (losses), net $ 1 $ 0 Other income $ 0 $ 0 __________ (1) Primarily related to private warrants reclassified from derivatives to trading securities. (2) Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfer occurs. |
Fair Value Measurements, Nonrecurring | The following table represents information for assets measured at fair value on a nonrecurring basis. The estimated fair values were classified as Level 3 in the valuation hierarchy. Year Ended December 31, 2016 2015 2014 (in millions) Commercial mortgage loans(1): Carrying value as of period end $ 47 $ 0 $ 0 Realized investment gains (losses) net $ (5 ) $ 0 $ 0 Mortgage servicing rights(2): Carrying value as of period end $ 84 $ 90 $ 89 Realized investment gains (losses) net $ (1 ) $ (7 ) $ 7 Cost method investments(3): Carrying value as of period end $ 284 $ 239 $ 102 Realized investment gains (losses) net $ (85 ) $ (123 ) $ (21 ) __________ (1) Commercial mortgage loans are valued based on discounted cash flows utilizing market rates or the fair value of the underlying real estate collateral. (2) Mortgage servicing rights are revalued based on internal models which utilize inputs. The fair value for mortgage servicing rights is determined using a discounted cash flow model incorporating assumptions for servicing revenues, adjusted for expected prepayments, delinquency rates, escrow deposit income and estimated loan servicing expenses. (3) For cost method impairments, the methodologies utilized are primarily discounted cash flow and, where appropriate, valuations provided by the general partners taking into consideration investment-related expenses. |
Fair Value, Option | The following table presents information regarding changes in fair values recorded in earnings for commercial mortgage and other loans, other long-term investments and notes issued by consolidated VIEs, where the fair value option has been elected. Year Ended December 31, 2016 2015 2014 (in millions) Assets: Commercial mortgage and other loans: Changes in instrument-specific credit risk $ 0 $ 0 $ 0 Other changes in fair value 0 0 0 Other long-term investments: Changes in fair value 58 2 54 Liabilities: Notes issued by consolidated VIEs: Changes in fair value $ 37 $ (434 ) $ (201 ) |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Consolidated Statements of Financial Position; however, in some cases, as described below, the carrying amount equals or approximates fair value. December 31, 2016(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in millions) Assets: Fixed maturities, held-to-maturity(3) $ 0 $ 1,526 $ 998 $ 2,524 $ 2,144 Trading account assets 0 150 0 150 150 Commercial mortgage and other loans 0 139 53,625 53,764 52,260 Policy loans 1 0 11,754 11,755 11,755 Short-term investments 0 326 0 326 326 Cash and cash equivalents 4,945 876 0 5,821 5,821 Accrued investment income 0 3,204 0 3,204 3,204 Other assets 54 1,976 658 2,688 2,688 Total assets $ 5,000 $ 8,197 $ 67,035 $ 80,232 $ 78,348 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 41,653 $ 58,392 $ 100,045 $ 99,719 Securities sold under agreements to repurchase 0 7,606 0 7,606 7,606 Cash collateral for loaned securities 0 4,333 0 4,333 4,333 Short-term debt 0 1,077 73 1,150 1,133 Long-term debt(4) 1,267 15,705 2,957 19,929 18,041 Other liabilities 0 6,540 696 7,236 7,236 Separate account liabilities—investment contracts 0 71,010 27,578 98,588 98,588 Total liabilities $ 1,267 $ 147,924 $ 89,696 $ 238,887 $ 236,656 December 31, 2015(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in millions) Assets: Fixed maturities, held-to-maturity(3) $ 0 $ 1,543 $ 1,081 $ 2,624 $ 2,308 Commercial mortgage and other loans 0 533 51,046 51,579 50,285 Policy loans 0 0 11,657 11,657 11,657 Short-term investments 0 617 1 618 618 Cash and cash equivalents 2,832 572 0 3,404 3,404 Accrued investment income 0 3,110 0 3,110 3,110 Other assets 136 2,334 652 3,122 3,122 Total assets $ 2,968 $ 8,709 $ 64,437 $ 76,114 $ 74,504 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 39,314 $ 54,957 $ 94,271 $ 93,937 Securities sold under agreements to repurchase 0 7,882 0 7,882 7,882 Cash collateral for loaned securities 0 3,496 0 3,496 3,496 Short-term debt 0 1,221 0 1,221 1,216 Long-term debt(4)(5) 1,328 16,540 3,433 21,301 19,594 Other liabilities 0 5,344 695 6,039 6,039 Separate account liabilities—investment contracts 0 69,978 32,267 102,245 102,245 Total liabilities $ 1,328 $ 143,775 $ 91,352 $ 236,455 $ 234,409 __________ (1) Effective January 1, 2016, the Company adopted new accounting guidance (ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share or Its Equivalent (Topic 820)), which removes the requirement to categorize within the fair value hierarchy all investments measured at net asset value per share (or its equivalent) as a practical expedient. As a result of the adoption of this new guidance, certain other long-term investments are no longer classified in the fair value hierarchy. The guidance was required to be applied retrospectively, and therefore, prior period amounts have been conformed to the current period presentation. At December 31, 2016 and 2015 , the fair values of these cost method investments were $1,514 million and $1,653 million , respectively, which had been previously classified in level 3 at December 31, 2015. The carrying value of these investments were $1,478 million and $1,563 million as of December 31, 2016 and 2015 , respectively. (2) Carrying values presented herein differ from those in the Company’s Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. Financial statement captions excluded from the above table are not considered financial instruments. (3) As of December 31, 2016 , excludes notes with both fair value and carrying amount of $4,403 million . As of December 31, 2015 , excludes notes with fair value and carrying amount of $4,081 million and $3,850 million , respectively. These amounts have been offset with the associated payables under a netting agreement. (4) As of December 31, 2016 , includes notes with both fair value and carrying amount of $5,859 million . As of December 31, 2015 , includes notes with fair value and carrying amount of $5,120 million and $4,889 million , respectively. These amounts have been offset with the associated receivables under a netting agreement. (5) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlyings. The fair value amounts below represent the gross fair value of derivative contracts prior to taking into account the netting effects of master netting agreements, cash collateral held with the same counterparty and NPR. This netting impact results in total derivative assets of $1,367 million and $2,728 million as of December 31, 2016 and 2015 , respectively, and total derivative liabilities of $345 million and $40 million as of December 31, 2016 and 2015 , respectively, reflected in the Consolidated Statements of Financial Position. December 31, 2016 December 31, 2015 Primary Underlying/ Instrument Type Gross Fair Value Gross Fair Value Notional(1) Assets Liabilities Notional(1) Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 1,117 $ 17 $ (111 ) $ 1,431 $ 20 $ (148 ) Foreign Currency Foreign Currency Forwards 167 3 (1 ) 323 7 (1 ) Currency/Interest Rate Foreign Currency Swaps 14,737 1,956 (54 ) 12,739 1,592 (5 ) Total Qualifying Hedges $ 16,021 $ 1,976 $ (166 ) $ 14,493 $ 1,619 $ (154 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 162,131 $ 8,969 $ (4,274 ) $ 173,091 $ 10,161 $ (4,232 ) Interest Rate Futures 31,183 55 (1 ) 28,209 11 (3 ) Interest Rate Options 13,290 289 (132 ) 40,056 387 (196 ) Interest Rate Forwards 321 0 (1 ) 86 0 0 Foreign Currency Foreign Currency Forwards 21,042 372 (892 ) 17,400 311 (113 ) Foreign Currency Options 93 0 0 93 0 0 Currency/Interest Rate Foreign Currency Swaps 12,336 1,218 (311 ) 11,607 1,404 (238 ) Credit Credit Default Swaps 918 1 (25 ) 1,839 3 (53 ) Equity Equity Futures 1,371 0 (5 ) 249 2 0 Equity Options 12,020 102 (93 ) 48,958 159 (118 ) Total Return Swaps 18,167 101 (390 ) 18,804 128 (209 ) Commodity Commodity Futures 1 0 0 80 0 0 Synthetic GICs 77,197 5 0 72,585 7 0 Total Non-Qualifying Derivatives(2) $ 350,070 $ 11,112 $ (6,124 ) $ 413,057 $ 12,573 $ (5,162 ) Total Derivatives(3) $ 366,091 $ 13,088 $ (6,290 ) $ 427,550 $ 14,192 $ (5,316 ) __________ (1) Notional amounts are presented on a gross basis and include derivatives used to offset existing positions. (2) Based on notional amounts, most of the Company’s derivatives do not qualify for hedge accounting as follows: i) derivatives that economically hedge embedded derivatives do not qualify for hedge accounting because changes in the fair value of the embedded derivatives are already recorded in net income, ii) derivatives that are utilized as macro hedges of the Company’s exposure to various risks typically do not qualify for hedge accounting because they do not meet the criteria required under portfolio hedge accounting rules, and iii) synthetic GICs, which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules. (3) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $8,252 million and $8,408 million as of December 31, 2016 , and 2015 , respectively, primarily included in “Future policy benefits.” |
Offsetting Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 12,987 $ (11,716 ) $ 1,271 $ (399 ) $ 872 Securities purchased under agreement to resell 1,016 0 1,016 (1,016 ) 0 Total Assets $ 14,003 $ (11,716 ) $ 2,287 $ (1,415 ) $ 872 Offsetting of Financial Liabilities: Derivatives(1) $ 6,281 $ (5,945 ) $ 336 $ (299 ) $ 37 Securities sold under agreement to repurchase 7,606 0 7,606 (7,606 ) 0 Total Liabilities $ 13,887 $ (5,945 ) $ 7,942 $ (7,905 ) $ 37 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 14,028 $ (11,457 ) $ 2,571 $ (1,296 ) $ 1,275 Securities purchased under agreement to resell 776 0 776 (776 ) 0 Total Assets $ 14,804 $ (11,457 ) $ 3,347 $ (2,072 ) $ 1,275 Offsetting of Financial Liabilities: Derivatives(1) $ 5,310 $ (5,276 ) $ 34 $ (14 ) $ 20 Securities sold under agreement to repurchase 7,882 0 7,882 (7,882 ) 0 Total Liabilities $ 13,192 $ (5,276 ) $ 7,916 $ (7,896 ) $ 20 __________ (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 2016 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 12,987 $ (11,716 ) $ 1,271 $ (399 ) $ 872 Securities purchased under agreement to resell 1,016 0 1,016 (1,016 ) 0 Total Assets $ 14,003 $ (11,716 ) $ 2,287 $ (1,415 ) $ 872 Offsetting of Financial Liabilities: Derivatives(1) $ 6,281 $ (5,945 ) $ 336 $ (299 ) $ 37 Securities sold under agreement to repurchase 7,606 0 7,606 (7,606 ) 0 Total Liabilities $ 13,887 $ (5,945 ) $ 7,942 $ (7,905 ) $ 37 December 31, 2015 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 14,028 $ (11,457 ) $ 2,571 $ (1,296 ) $ 1,275 Securities purchased under agreement to resell 776 0 776 (776 ) 0 Total Assets $ 14,804 $ (11,457 ) $ 3,347 $ (2,072 ) $ 1,275 Offsetting of Financial Liabilities: Derivatives(1) $ 5,310 $ (5,276 ) $ 34 $ (14 ) $ 20 Securities sold under agreement to repurchase 7,882 0 7,882 (7,882 ) 0 Total Liabilities $ 13,192 $ (5,276 ) $ 7,916 $ (7,896 ) $ 20 __________ (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table provides the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, excluding the offset of the hedged item in an effective hedge relationship. Year Ended December 31, 2016 Realized Investment Gains (Losses) Net Investment Income Other Income Interest Expense Interest Credited To Policyholders’ Account Balances AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 26 $ (31 ) $ 0 $ 0 $ 0 $ 0 Currency 21 (1 ) 0 0 0 0 Total fair value hedges 47 (32 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (5 ) 0 (1 ) Currency/Interest Rate 0 123 269 0 0 152 Total cash flow hedges 0 123 269 (5 ) 0 151 Net investment hedges Currency(2) 5 0 0 0 0 (5 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 5 0 0 0 0 (5 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,564 0 0 0 0 0 Currency 463 0 1 0 0 0 Currency/Interest Rate 10 0 3 0 0 0 Credit 32 0 0 0 0 0 Equity (2,171 ) 0 0 0 0 0 Commodity (1 ) 0 0 0 0 0 Embedded Derivatives 1,260 0 0 0 0 0 Total non-qualifying hedges 1,157 0 4 0 0 0 Total $ 1,209 $ 91 $ 273 $ (5 ) $ 0 $ 146 Year Ended December 31, 2015 Realized Investment Gains (Losses) Net Investment Income Other Income Interest Expense Interest Credited To Policyholders’ Account Balances AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 29 $ (44 ) $ 0 $ 0 $ 0 $ 0 Currency 18 (1 ) 0 0 0 0 Total fair value hedges 47 (45 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (7 ) 0 2 Currency/Interest Rate 0 75 146 0 0 957 Total cash flow hedges 0 75 146 (7 ) 0 959 Net investment hedges Currency 0 0 0 0 0 9 Currency/Interest Rate 0 0 0 0 0 31 Total net investment hedges 0 0 0 0 0 40 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,394 0 0 0 0 0 Currency (124 ) 0 (2 ) 0 0 0 Currency/Interest Rate 563 0 7 0 0 0 Credit (5 ) 0 0 0 0 0 Equity (591 ) 0 0 0 0 0 Commodity 0 0 0 0 0 0 Embedded Derivatives 724 0 0 0 0 0 Total non-qualifying hedges 1,961 0 5 0 0 0 Total $ 2,008 $ 30 $ 151 $ (7 ) $ 0 $ 999 Year Ended December 31, 2014 Realized Investment Gains (Losses) Net Investment Income Other Income Interest Expense Interest Credited To Policyholders’ Account Balances AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ (4 ) $ (57 ) $ 0 $ 0 $ 2 $ 0 Currency (9 ) (1 ) 0 0 0 0 Total fair value hedges (13 ) (58 ) 0 0 2 0 Cash flow hedges Interest Rate 0 0 0 (22 ) 0 38 Currency/Interest Rate 0 7 67 0 0 614 Total cash flow hedges 0 7 67 (22 ) 0 652 Net investment hedges Currency 0 0 0 0 0 17 Currency/Interest Rate 0 0 0 0 0 128 Total net investment hedges 0 0 0 0 0 145 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 7,623 0 0 0 0 0 Currency (562 ) 0 0 0 0 0 Currency/Interest Rate 1,124 0 5 0 0 0 Credit (22 ) 0 0 0 0 0 Equity (1,605 ) 0 0 0 0 0 Commodity 1 0 0 0 0 0 Embedded Derivatives (6,734 ) 0 0 0 0 0 Total non-qualifying hedges (175 ) 0 5 0 0 0 Total $ (188 ) $ (51 ) $ 72 $ (22 ) $ 2 $ 797 __________ (1) Amounts deferred in AOCI. (2) Relates to the sale of equity method investments. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in millions) Balance, December 31, 2013 $ (446 ) Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2014 706 Amount reclassified into current period earnings (54 ) Balance, December 31, 2014 206 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2015 1,199 Amount reclassified into current period earnings (240 ) Balance, December 31, 2015 1,165 Net deferred gains (losses) on cash flow hedges from January 1 to December 31, 2016 602 Amount reclassified into current period earnings (451 ) Balance, December 31, 2016 $ 1,316 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income: Year Ended December 31, 2016 2015 2014 (in millions) Net gains (losses) from(1): Terminated hedges of foreign currency earnings $ 39 $ 284 $ 293 Current period yield adjustments $ 466 $ 475 $ 476 Principal source of earnings $ 74 $ 123 $ 100 __________ (1) In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to divested businesses as results of “Divested businesses,” discussed below. The table below reconciles adjusted operating income before income taxes to income from continuing operations before income taxes and equity in earnings of operating joint ventures: Year ended December 31, 2016 2015 2014 (in millions) Adjusted operating income before income taxes by segment: Individual Annuities $ 1,765 $ 1,797 $ 1,467 Retirement 1,012 931 1,215 Asset Management 787 779 785 Total U.S. Retirement Solutions and Investment Management division 3,564 3,507 3,467 Individual Life 79 635 498 Group Insurance 220 176 23 Total U.S. Individual Life and Group Insurance division 299 811 521 International Insurance 3,117 3,226 3,252 Total International Insurance division 3,117 3,226 3,252 Corporate and Other operations (1,581 ) (1,313 ) (1,348 ) Total Corporate and Other (1,581 ) (1,313 ) (1,348 ) Total segment adjusted operating income before income taxes 5,399 6,231 5,892 Reconciling Items: Realized investment gains (losses), net, and related adjustments 989 2,258 (3,588 ) Charges related to realized investment gains (losses), net (466 ) (679 ) (542 ) Investment gains (losses) on trading account assets supporting insurance liabilities, net (17 ) (524 ) 339 Change in experience-rated contractholder liabilities due to asset value changes 21 433 (294 ) Divested businesses: Closed Block division(1) (132 ) 58 0 Other divested businesses (84 ) (66 ) 167 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (5 ) 58 44 Subtotal(2) 5,705 7,769 2,018 Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures for Closed Block Business(3) 0 0 (259 ) Consolidated income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures $ 5,705 $ 7,769 $ 1,759 __________ (1) As a result of the Class B Repurchase, for the years ended December 31, 2016 and 2015, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. (2) Amounts for the year ended December 31, 2014 represent “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” of the Company’s former Financial Services Businesses, reflecting the existence of two classes of common stock and the separate reporting of the Financial Services Businesses and the Closed Block Business for each period. (3) Reflects the existence of two classes of common stock and the separate reporting of the Company’s former Financial Services Businesses and the Closed Block Business for the year ended December 31, 2014. The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income: Year Ended December 31, 2016 2015 2014 (in millions) Net gains (losses) from: Other trading account assets $ (95 ) $ (94 ) $ (21 ) Foreign currency exchange movements $ (154 ) $ 69 $ (3,023 ) Other activities $ (18 ) $ 9 $ 13 |
Schedule of Segment Reporting Information, by Segment | The tables below present certain financial information for the Company’s reportable segments: As of December 31, 2016 2015(1) (in millions) Total Assets: Individual Annuities $ 170,861 $ 169,447 Retirement 173,509 171,183 Asset Management 49,255 54,491 Total U.S. Retirement Solutions and Investment Management division 393,625 395,121 Individual Life 77,524 71,856 Group Insurance 40,642 39,344 Total U.S. Individual Life and Group Insurance division 118,166 111,200 International Insurance 197,119 175,153 Total International Insurance division 197,119 175,153 Corporate and Other operations 13,001 13,654 Total Corporate and Other 13,001 13,654 Closed Block 62,051 62,127 Total Closed Block division 62,051 62,127 Total per Consolidated Statements of Financial Position $ 783,962 $ 757,255 __________ (1) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. Year Ended December 31, 2016 Revenues Net Investment Income Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) Individual Annuities $ 4,666 $ 698 $ 306 $ 362 $ 0 $ 71 $ 484 Retirement 12,876 4,263 9,328 1,473 0 19 33 Asset Management 2,961 80 0 0 0 15 15 Total U.S. Retirement Solutions and Investment Management division 20,503 5,041 9,634 1,835 0 105 532 Individual Life 5,355 1,822 2,750 680 35 583 115 Group Insurance 5,343 608 4,032 263 0 5 6 Total U.S. Individual Life and Group Insurance division 10,698 2,430 6,782 943 35 588 121 International Insurance 21,009 4,759 13,183 920 49 8 1,068 Total International Insurance division 21,009 4,759 13,183 920 49 8 1,068 Corporate and Other operations (636 ) 465 26 0 0 614 (49 ) Total Corporate and Other (636 ) 465 26 0 0 614 (49 ) Total 51,574 12,695 29,625 3,698 84 1,315 1,672 Reconciling items: Realized investment gains (losses), net, and related adjustments 989 (31 ) 0 0 0 0 0 Charges related to realized investment gains (losses), net 19 0 131 (50 ) 0 0 168 Investment gains (losses) on trading account assets supporting insurance liabilities, net (17 ) 0 0 0 0 0 0 Change in experience-rated contractholder liabilities due to assets value changes 0 0 0 (21 ) 0 0 0 Divested businesses: Closed Block division(1) 5,669 2,578 3,282 134 1,941 2 37 Other divested businesses 602 278 594 0 0 3 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (57 ) 0 0 0 0 0 0 Total per Consolidated Statements of Operations $ 58,779 $ 15,520 $ 33,632 $ 3,761 $ 2,025 $ 1,320 $ 1,877 __________ (1) As a result of the Class B Repurchase, for the year ended December 31, 2016, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. Year Ended December 31, 2015 Revenues Net Investment Income Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) Individual Annuities $ 4,695 $ 603 $ 314 $ 363 $ 0 $ 69 $ 465 Retirement 11,821 4,082 8,352 1,441 (2 ) 25 66 Asset Management 2,944 111 0 0 0 10 19 Total U.S. Retirement Solutions and Investment Management division 19,460 4,796 8,666 1,804 (2 ) 104 550 Individual Life 5,233 1,669 2,245 644 33 550 133 Group Insurance 5,143 586 3,868 257 0 8 6 Total U.S. Individual Life and Group Insurance division 10,376 2,255 6,113 901 33 558 139 International Insurance 19,364 4,357 11,821 880 51 5 989 Total International Insurance division 19,364 4,357 11,821 880 51 5 989 Corporate and Other operations (570 ) 550 16 0 0 635 (47 ) Total Corporate and Other (570 ) 550 16 0 0 635 (47 ) Total 48,630 11,958 26,616 3,585 82 1,302 1,631 Reconciling items: Realized investment gains (losses), net, and related adjustments 2,258 1 0 0 0 0 0 Charges related to realized investment gains (losses), net (31 ) 0 39 191 0 0 452 Investment gains (losses) on trading account assets supporting insurance liabilities, net (524 ) 0 0 0 0 0 0 Change in experience-rated contractholder liabilities due to assets value changes 0 0 0 (433 ) 0 0 0 Divested businesses: Closed Block division(1) 6,160 2,653 3,365 135 2,130 1 37 Other divested businesses 638 217 607 1 0 3 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (12 ) 0 0 0 0 0 0 Total per Consolidated Statements of Operations $ 57,119 $ 14,829 $ 30,627 $ 3,479 $ 2,212 $ 1,306 $ 2,120 __________ (1) As a result of the Class B Repurchase, for the year ended December 31, 2015, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations. Year Ended December 31, 2014 Revenues Net Investment Income Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) Individual Annuities $ 4,710 $ 630 $ 481 $ 429 $ 0 $ 107 $ 543 Retirement 12,077 4,209 8,336 1,476 0 25 31 Asset Management 2,840 120 0 0 0 10 20 Total U.S. Retirement Solutions and Investment Management division 19,627 4,959 8,817 1,905 0 142 594 Individual Life 5,226 1,620 2,108 606 32 533 345 Group Insurance 5,357 613 4,215 248 0 9 8 Total U.S. Individual Life and Group Insurance division 10,583 2,233 6,323 854 32 542 353 International Insurance 20,066 4,434 12,234 961 50 4 961 Total International Insurance division 20,066 4,434 12,234 961 50 4 961 Corporate and Other operations (632 ) 420 83 0 0 620 (55 ) Total Corporate and Other (632 ) 420 83 0 0 620 (55 ) Total 49,644 12,046 27,457 3,720 82 1,308 1,853 Reconciling items: Realized investment gains (losses), net, and related adjustments (3,588 ) (5 ) 0 0 0 0 0 Charges related to realized investment gains (losses), net 55 0 295 111 (1 ) 0 83 Investment gains (losses) on trading account assets supporting insurance liabilities, net 339 0 0 0 0 0 0 Change in experience-rated contractholder liabilities due to assets value changes 0 0 0 294 0 0 0 Divested businesses 762 208 509 2 0 3 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (13 ) 0 0 0 0 0 0 Subtotal 47,199 12,249 28,261 4,127 81 1,311 1,936 Closed Block Business(1) 6,906 3,007 3,326 136 2,635 597 37 Total per Consolidated Statements of Operations $ 54,105 $ 15,256 $ 31,587 $ 4,263 $ 2,716 $ 1,908 $ 1,973 __________ (1) Reflects the existence of two classes of common stock and the separate reporting of the Company’s former Financial Services Businesses and the Closed Block Business for the year ended December 31, 2014. |
Schedule Of Revenues From Domestic And Foreign Operations | Revenues, calculated in accordance with U.S. GAAP, for the years ended December 31, include the following associated with the Company’s foreign and domestic operations: 2016 2015 2014 (in millions) Domestic operations $ 36,079 $ 36,151 $ 35,793 Foreign operations, total $ 22,700 $ 20,968 $ 18,312 Foreign operations, Japan $ 19,768 $ 18,177 $ 15,461 Foreign operations, Korea $ 1,439 $ 1,462 $ 1,484 |
Schedule Of Intersegment Revenues | The Asset Management segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, for the years ended December 31, as follows: 2016 2015 2014 (in millions) Asset Management segment intersegment revenues $ 682 $ 682 $ 645 |
Commitments and Guarantees, C58
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments Gurantees And Contingent Liabilities [Line Items] | |
Operating Leases of Lessee Disclosure | The following table presents, at December 31, 2016 , the Company’s future minimum lease payments under non-cancelable operating and capital leases along with associated sub-lease income: Operating and Capital Leases(1) Sub-lease Income (in millions) 2017 $ 150 $ (1 ) 2018 129 0 2019 106 0 2020 80 0 2021 68 0 2022 and thereafter 185 0 Total $ 718 $ (1 ) __________ (1) Future minimum lease payments under capital leases were $ 24 million as of December 31, 2016 . |
Insolvency Assessment | Assets and liabilities held for insolvency assessments were as follows: As of December 31, 2016 2015 (in millions) Other assets: Premium tax offset for future undiscounted assessments $ 78 $ 79 Premium tax offsets currently available for paid assessments 6 6 Total $ 84 $ 85 Other liabilities: Insolvency assessments $ 52 $ 39 |
Securities Lending Transactions | |
Commitments Gurantees And Contingent Liabilities [Line Items] | |
Commitments And Guarantees | Indemnification of Securities Lending Transactions As of December 31, 2016 2015 (in millions) Indemnification provided to mutual fund, trust fund, and insurance company separate account clients for securities lending $ 5,352 $ 15,084 Fair value of related collateral associated with above indemnifications $ 5,465 $ 15,508 Accrued liability associated with guarantee $ 0 $ 0 |
Asset Values | |
Commitments Gurantees And Contingent Liabilities [Line Items] | |
Commitments And Guarantees | Guarantees of Asset Values As of December 31, 2016 2015 (in millions) Guaranteed value of third parties’ assets $ 77,197 $ 72,585 Fair value of collateral supporting these assets $ 77,760 $ 73,634 Asset associated with guarantee, carried at fair value $ 5 $ 7 |
Serviced Mortgage Loans | |
Commitments Gurantees And Contingent Liabilities [Line Items] | |
Commitments And Guarantees | Indemnification of Serviced Mortgage Loans As of December 31, 2016 2015 (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 1,371 $ 1,200 First-loss exposure portion of above $ 416 $ 371 Accrued liability associated with guarantees $ 13 $ 14 |
Other Guarantees | |
Commitments Gurantees And Contingent Liabilities [Line Items] | |
Commitments And Guarantees | Other Guarantees As of December 31, 2016 2015 (in millions) Other guarantees where amount can be determined $ 58 $ 324 Accrued liability for other guarantees and indemnifications $ 3 $ 4 |
Commercial mortgage and other loans | |
Commitments Gurantees And Contingent Liabilities [Line Items] | |
Commitments And Guarantees | Commercial Mortgage Loan Commitments As of December 31, 2016 2015 (in millions) Total outstanding mortgage loan commitments $ 1,984 $ 2,272 Portion of commitment where prearrangement to sell to investor exists $ 454 $ 721 |
Investments Excluding Commercial Mortgage Loans | |
Commitments Gurantees And Contingent Liabilities [Line Items] | |
Commitments And Guarantees | Commitments to Purchase Investments (excluding Commercial Mortgage Loans) As of December 31, 2016 2015 (in millions) Expected to be funded from the general account and other operations outside the separate accounts(1) $ 6,002 $ 3,787 Expected to be funded from separate accounts $ 374 $ 92 __________ (1) Includes a remaining commitment of $121 million and $152 million at December 31, 2016 and 2015 , respectively, related to the Company’s agreement to co-invest with the Fosun Group in a private equity fund, managed by the Fosun Group, for the Chinese marketplace. |
Quarterly Results of Operatio59
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The unaudited quarterly results of operations for the years ended December 31, 2016 and 2015 are summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 (in millions, except per share amounts) 2016 Total revenues $ 14,329 $ 14,439 $ 16,961 $ 13,050 Total benefits and expenses 12,597 13,098 14,646 12,733 Income (loss) from continuing operations 1,369 925 1,832 293 Income (loss) from discontinued operations 0 0 0 0 Net income (loss) 1,369 925 1,832 293 Less: Income attributable to noncontrolling interests 33 4 5 9 Net income (loss) attributable to Prudential Financial, Inc. $ 1,336 $ 921 $ 1,827 $ 284 Basic earnings per share—Common Stock(1): Income (loss) from continuing operations attributable to Prudential Financial, Inc. $ 2.97 $ 2.06 $ 4.14 $ 0.65 Income (loss) from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 Net income (loss) attributable to Prudential Financial, Inc. $ 2.97 $ 2.06 $ 4.14 $ 0.65 Diluted earnings per share—Common Stock(1): Income (loss) from continuing operations attributable to Prudential Financial, Inc. $ 2.93 $ 2.04 $ 4.07 $ 0.65 Income (loss) from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 Net income (loss) attributable to Prudential Financial, Inc. $ 2.93 $ 2.04 $ 4.07 $ 0.65 2015 Total revenues $ 15,552 $ 13,712 $ 13,599 $ 14,256 Total benefits and expenses 12,804 11,583 11,550 13,413 Income (loss) from continuing operations 2,046 1,459 1,467 740 Income (loss) from discontinued operations 0 0 0 0 Net income (loss) 2,046 1,459 1,467 740 Less: Income attributable to noncontrolling interests 10 53 2 5 Net income (loss) attributable to Prudential Financial, Inc. $ 2,036 $ 1,406 $ 1,465 $ 735 Basic earnings per share—Common Stock(1): Income (loss) from continuing operations attributable to Prudential Financial, Inc. $ 4.44 $ 3.07 $ 3.22 $ 1.62 Income (loss) from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 Net income (loss) attributable to Prudential Financial, Inc. $ 4.44 $ 3.07 $ 3.22 $ 1.62 Diluted earnings per share—Common Stock(1): Income (loss) from continuing operations attributable to Prudential Financial, Inc. $ 4.37 $ 3.03 $ 3.16 $ 1.60 Income (loss) from discontinued operations, net of taxes 0.00 0.00 0.00 0.00 Net income (loss) attributable to Prudential Financial, Inc. $ 4.37 $ 3.03 $ 3.16 $ 1.60 __________ (1) Quarterly earnings per share amounts may not add to the full year amounts due to the averaging of shares. |
Business and Basis of Present60
Business and Basis of Presentation (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)division | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Number of divisions | division | 4 | ||||
Universal Life | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Out of period adjustments | $ (148) | $ (141) | $ (33) | ||
Long-term disability | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Out of period adjustments | $ (58) | ||||
Deferred Profit Liability | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Out of period adjustments | (43) | ||||
Variable Annuity | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Out of period adjustments | $ 62 | (35) | |||
Income From Continuing Operations Before Income Taxes And Equity In Earnings Of Operating Joint Ventures | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Out of period adjustments | $ (153) | $ (134) | $ (193) | $ 41 |
Significant Accounting Polici61
Significant Accounting Policies and Pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Loan-to-value ratios (greater than) | 100.00% | |||||
Debt service coverage ratios (less than) | 1 | |||||
Partnership interest (generally less than) | 3.00% | |||||
Uncertain Tax Positions Measurement Percentage (greater than) | 50.00% | |||||
Other assets | [1],[2] | $ 14,780 | $ 14,225 | |||
Long-term debt | [1] | (18,041) | (19,594) | |||
Decrease to Total assets | (783,962) | (757,255) | ||||
Decrease to Total liabilities | (737,874) | (715,332) | ||||
Decrease to Total investments | (444,240) | (417,192) | ||||
Decrease to Stockholders' Equity Attributable to Noncontrolling Interest | (225) | (33) | ||||
Increase to Total equity | $ 46,088 | 41,923 | $ 42,349 | $ 35,881 | ||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful life | 3 years | |||||
Percent of fair value (at least equal) | 95.00% | |||||
Securities loaned transactions collateral | 102.00% | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful life | 40 years | |||||
Securities loaned transactions collateral | 105.00% | |||||
Accounting Standards Update 2015-03 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other assets | 133 | |||||
Long-term debt | $ 133 | |||||
Accounting Standards Update 2015-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Decrease to Total assets | $ 5,500 | |||||
Decrease to Total liabilities | 5,500 | |||||
Decrease to Total investments | 5,100 | |||||
Decrease to Notes issued by consolidated variable interest entities | 5,100 | |||||
Decrease to Stockholders' Equity Attributable to Noncontrolling Interest | 30 | |||||
Increase to Total equity | 7 | |||||
Accounting Standards Update 2014-13 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Decrease to Total liabilities | 4 | |||||
Increase to Total equity | $ 4 | |||||
[1] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. | |||||
[2] | See Note 5 for details of balances associated with variable interest entities. |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | Jan. 02, 2014USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016CLP / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 833 | $ 824 | $ 831 | $ 839 | |||
AFP Habitat | |||||||
Business Acquisition [Line Items] | |||||||
Ownership interest percent | 40.00% | ||||||
Share price (pesos per share) | CLP / shares | CLP 899.90 | ||||||
Cash paid for business acquisition | $ 532 | ||||||
Gibraltar BSN Life Berhad | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid for business acquisition | $ 158 | ||||||
Total assets acquired | 758 | ||||||
Cash and cash equivalents | 88 | ||||||
Goodwill | 33 | ||||||
Deductible for local tax purposes | 0 | ||||||
Total liabilities assumed | $ 600 | ||||||
Gibraltar BSN Life Berhad | Prudential Insurance | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of cash paid for business acquired | 70.00% | ||||||
Gibraltar BSN Life Berhad | Bank Simpanan Nasional | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of cash paid for business acquired | 30.00% |
Investments (Fixed Maturities a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | $ 292,581 | $ 265,416 | |
Amortized Cost | 7,149 | 6,847 | |
Fair Value | [1] | 321,419 | 290,323 |
Fair Value | 9,748 | 9,274 | |
OTTI in AOCI | (337) | (459) | |
Amortized Cost | [1] | 2,144 | 2,308 |
Fair Value | 2,524 | 2,624 | |
Net unrealized gains on impaired available for sale securities relating to changes in value of securities subsequent to the impairment measurement date | 649 | 693 | |
Net unrealized gains on impaired held to maturity securities (less than for 2015) | 1 | 1 | |
Prudential Netting Agreement | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 4,403 | 3,850 | |
Fair Value | 4,403 | 4,081 | |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 0 | 0 | |
Obligations of U.S. states and their political subdivisions | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 0 | 0 | |
Foreign government bonds | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 0 | 1 | |
U.S. corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (17) | (3) | |
U.S. corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (22) | 0 | |
Foreign corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (6) | 0 | |
Foreign corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 0 | 0 | |
Commercial mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (1) | (1) | |
Asset-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (288) | (452) | |
Residential mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (3) | (4) | |
Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 292,581 | 265,416 | |
Gross Unrealized Gains | 33,463 | 29,240 | |
Gross Unrealized Losses | 4,625 | 4,333 | |
Fair Value | 321,419 | 290,323 | |
Amortized Cost | 2,144 | 2,308 | |
Gross Unrealized Gains | 380 | 316 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2,524 | 2,624 | |
Fixed maturities | Prudential Netting Agreement | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 1,456 | 1,050 | |
Fair Value | 1,456 | 1,039 | |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 21,505 | 14,992 | |
Gross Unrealized Gains | 3,280 | 3,544 | |
Gross Unrealized Losses | 1,001 | 19 | |
Fair Value | 23,784 | 18,517 | |
Fixed maturities | Obligations of U.S. states and their political subdivisions | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 9,060 | 8,089 | |
Gross Unrealized Gains | 716 | 747 | |
Gross Unrealized Losses | 84 | 41 | |
Fair Value | 9,692 | 8,795 | |
Fixed maturities | Foreign government bonds | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 79,862 | 71,849 | |
Gross Unrealized Gains | 16,748 | 12,011 | |
Gross Unrealized Losses | 354 | 147 | |
Fair Value | 96,256 | 83,713 | |
Amortized Cost | 839 | 816 | |
Gross Unrealized Gains | 262 | 196 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,101 | 1,012 | |
Fixed maturities | U.S. corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 76,383 | 70,979 | |
Gross Unrealized Gains | 6,460 | 6,344 | |
Gross Unrealized Losses | 1,232 | 1,955 | |
Fair Value | 81,611 | 75,368 | |
Fixed maturities | U.S. corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 29,974 | 28,525 | |
Gross Unrealized Gains | 2,122 | 2,278 | |
Gross Unrealized Losses | 308 | 359 | |
Fair Value | 31,788 | 30,444 | |
Fixed maturities | Foreign corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 25,758 | 26,354 | |
Gross Unrealized Gains | 2,784 | 2,821 | |
Gross Unrealized Losses | 305 | 621 | |
Fair Value | 28,237 | 28,554 | |
Amortized Cost | 651 | 625 | |
Gross Unrealized Gains | 71 | 62 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 722 | 687 | |
Fixed maturities | Foreign corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 21,383 | 19,393 | |
Gross Unrealized Gains | 646 | 739 | |
Gross Unrealized Losses | 1,149 | 994 | |
Fair Value | 20,880 | 19,138 | |
Amortized Cost | 81 | 78 | |
Gross Unrealized Gains | 4 | 4 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 85 | 82 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 12,589 | 10,337 | |
Gross Unrealized Gains | 240 | 195 | |
Gross Unrealized Losses | 125 | 70 | |
Fair Value | 12,704 | 10,462 | |
Amortized Cost | 0 | 33 | |
Gross Unrealized Gains | 0 | 1 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 0 | 34 | |
Fixed maturities | Asset-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 11,759 | 10,121 | |
Gross Unrealized Gains | 229 | 226 | |
Gross Unrealized Losses | 53 | 121 | |
Fair Value | 11,935 | 10,226 | |
Fixed maturities | Residential mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 4,308 | 4,777 | |
Gross Unrealized Gains | 238 | 335 | |
Gross Unrealized Losses | 14 | 6 | |
Fair Value | 4,532 | 5,106 | |
Amortized Cost | 573 | 756 | |
Gross Unrealized Gains | 43 | 53 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 616 | 809 | |
Equity Securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 7,149 | 6,847 | |
Gross Unrealized Gains | 2,641 | 2,570 | |
Gross Unrealized Losses | 42 | 143 | |
Fair Value | $ 9,748 | $ 9,274 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | $ 68,613 | $ 58,994 |
Less than twelve months, Gross Unrealized Losses | 3,205 | 2,531 |
Twelve months or more, Fair Value | 12,250 | 13,906 |
Twelve months or more Gross Unrealized Losses | 1,420 | 1,802 |
Total, Fair Value | 80,863 | 72,900 |
Total, Gross Unrealized Losses | 4,625 | 4,333 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 9,345 | 3,068 |
Less than twelve months, Gross Unrealized Losses | 1,001 | 19 |
Twelve months or more, Fair Value | 0 | 0 |
Twelve months or more Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 9,345 | 3,068 |
Total, Gross Unrealized Losses | 1,001 | 19 |
Obligations of U.S. states and their political subdivisions | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 2,677 | 1,391 |
Less than twelve months, Gross Unrealized Losses | 79 | 40 |
Twelve months or more, Fair Value | 19 | 7 |
Twelve months or more Gross Unrealized Losses | 5 | 1 |
Total, Fair Value | 2,696 | 1,398 |
Total, Gross Unrealized Losses | 84 | 41 |
Foreign government bonds | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 6,076 | 1,925 |
Less than twelve months, Gross Unrealized Losses | 325 | 82 |
Twelve months or more, Fair Value | 310 | 411 |
Twelve months or more Gross Unrealized Losses | 29 | 65 |
Total, Fair Value | 6,386 | 2,336 |
Total, Gross Unrealized Losses | 354 | 147 |
U.S. corporate public securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 22,803 | 24,642 |
Less than twelve months, Gross Unrealized Losses | 905 | 1,396 |
Twelve months or more, Fair Value | 2,943 | 3,455 |
Twelve months or more Gross Unrealized Losses | 327 | 559 |
Total, Fair Value | 25,746 | 28,097 |
Total, Gross Unrealized Losses | 1,232 | 1,955 |
U.S. corporate private securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 7,797 | 6,996 |
Less than twelve months, Gross Unrealized Losses | 228 | 266 |
Twelve months or more, Fair Value | 1,296 | 802 |
Twelve months or more Gross Unrealized Losses | 80 | 93 |
Total, Fair Value | 9,093 | 7,798 |
Total, Gross Unrealized Losses | 308 | 359 |
Foreign corporate public securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 5,196 | 5,985 |
Less than twelve months, Gross Unrealized Losses | 162 | 288 |
Twelve months or more, Fair Value | 1,047 | 1,584 |
Twelve months or more Gross Unrealized Losses | 143 | 333 |
Total, Fair Value | 6,243 | 7,569 |
Total, Gross Unrealized Losses | 305 | 621 |
Foreign corporate private securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 6,557 | 6,199 |
Less than twelve months, Gross Unrealized Losses | 350 | 340 |
Twelve months or more, Fair Value | 4,916 | 3,917 |
Twelve months or more Gross Unrealized Losses | 799 | 654 |
Total, Fair Value | 11,473 | 10,116 |
Total, Gross Unrealized Losses | 1,149 | 994 |
Commercial mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 4,879 | 3,888 |
Less than twelve months, Gross Unrealized Losses | 123 | 63 |
Twelve months or more, Fair Value | 60 | 473 |
Twelve months or more Gross Unrealized Losses | 2 | 7 |
Total, Fair Value | 4,939 | 4,361 |
Total, Gross Unrealized Losses | 125 | 70 |
Asset-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 2,357 | 4,342 |
Less than twelve months, Gross Unrealized Losses | 20 | 33 |
Twelve months or more, Fair Value | 1,581 | 3,138 |
Twelve months or more Gross Unrealized Losses | 33 | 88 |
Total, Fair Value | 3,938 | 7,480 |
Total, Gross Unrealized Losses | 53 | 121 |
Residential mortgage-backed securities | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 926 | 558 |
Less than twelve months, Gross Unrealized Losses | 12 | 4 |
Twelve months or more, Fair Value | 78 | 119 |
Twelve months or more Gross Unrealized Losses | 2 | 2 |
Total, Fair Value | 1,004 | 677 |
Total, Gross Unrealized Losses | 14 | 6 |
Equity securities, available-for-sale | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Less than twelve months, Fair Value | 637 | 1,862 |
Less than twelve months, Gross Unrealized Losses | 41 | 142 |
Twelve months or more, Fair Value | 12 | 11 |
Twelve months or more Gross Unrealized Losses | 1 | 1 |
Total, Fair Value | 649 | 1,873 |
Total, Gross Unrealized Losses | 42 | $ 143 |
Held-to-maturity | ||
Duration Of Unrealized Losses On Fixed Maturities Investments [Line Items] | ||
Total, Fair Value | 12 | |
Total, Gross Unrealized Losses | $ 1 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Available for Sale, Amortized Cost | |||
Due in one year or less | $ 9,264 | ||
Due after one year through five years | 44,669 | ||
Due after five years through ten years | 61,561 | ||
Due after ten years | 148,431 | ||
Total | 292,581 | $ 265,416 | |
Available-for-Sale, Fair Value | |||
Due in one year or less | 9,827 | ||
Due after one year through five years | 48,592 | ||
Due after five years through ten years | 65,832 | ||
Due after ten years | 167,997 | ||
Fair Value | [1] | 321,419 | 290,323 |
Held-to-Maturity, Amortized Cost | |||
Due in one year or less | 11 | ||
Due after one year through five years | 172 | ||
Due after five years through ten years | 552 | ||
Due after ten years | 836 | ||
Total | [1] | 2,144 | 2,308 |
Held-to-Maturity, Fair Value | |||
Due in one year or less | 11 | ||
Due after one year through five years | 181 | ||
Due after five years through ten years | 618 | ||
Due after ten years | 1,098 | ||
Fixed maturities, held to maturity, fair value | 2,524 | 2,624 | |
Fixed Maturities | |||
Available for Sale, Amortized Cost | |||
Total | 292,581 | 265,416 | |
Available-for-Sale, Fair Value | |||
Fair Value | 321,419 | 290,323 | |
Held-to-Maturity, Amortized Cost | |||
Total | 2,144 | 2,308 | |
Held-to-Maturity, Fair Value | |||
Fixed maturities, held to maturity, fair value | 2,524 | 2,624 | |
Prudential Netting Agreement | |||
Held-to-Maturity, Amortized Cost | |||
Total | 4,403 | 3,850 | |
Held-to-Maturity, Fair Value | |||
Fixed maturities, held to maturity, fair value | 4,403 | 4,081 | |
Prudential Netting Agreement | Fixed Maturities | |||
Available for Sale, Amortized Cost | |||
Total | 1,456 | 1,050 | |
Available-for-Sale, Fair Value | |||
Fair Value | 1,456 | 1,039 | |
Commercial mortgage-backed securities | |||
Available for Sale, Amortized Cost | |||
Debt Maturities, without single maturity date | 12,589 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 12,704 | ||
Held-to-Maturity, Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Held-to-Maturity, Fair Value | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Residential mortgage-backed securities | |||
Available for Sale, Amortized Cost | |||
Debt Maturities, without single maturity date | 4,308 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 4,532 | ||
Held-to-Maturity, Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 573 | ||
Held-to-Maturity, Fair Value | |||
Debt Maturities, without Single Maturity Date | 616 | ||
Asset-backed securities | |||
Available for Sale, Amortized Cost | |||
Debt Maturities, without single maturity date | 11,759 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 11,935 | ||
Held-to-Maturity, Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Held-to-Maturity, Fair Value | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Asset-backed securities | Fixed Maturities | |||
Available for Sale, Amortized Cost | |||
Total | 11,759 | 10,121 | |
Available-for-Sale, Fair Value | |||
Fair Value | $ 11,935 | $ 10,226 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Fixed Maturities66
Investments (Fixed Maturities and Equity Securities Proceeds) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed maturity and equity security impairments | |||
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings | $ (222) | $ (141) | $ (56) |
Writedowns for impairments on equity securities | (74) | (126) | (32) |
Fixed maturities, available-for-sale | |||
Fixed maturities, available-for-sale | |||
Proceeds from sales(1) | 29,878 | 27,679 | 28,359 |
Proceeds from maturities/repayments | 19,710 | 19,559 | 21,040 |
Gross investment gains from sales, prepayments and maturities | 1,433 | 2,115 | 1,664 |
Gross investment losses from sales and maturities | (545) | (340) | (414) |
Fixed maturities, held-to-maturity | |||
Fixed maturities, held-to-maturity | |||
Gross investment gains from prepayments | 0 | 0 | 0 |
Proceeds from maturities/repayments(2) | 272 | 235 | 415 |
Equity securities, available-for-sale | |||
Fixed maturities, available-for-sale | |||
Gross investment gains from sales, prepayments and maturities | 608 | 746 | 676 |
Gross investment losses from sales and maturities | (158) | (169) | (132) |
Equity Securities Available For Sale | |||
Proceeds from sales(3) | 3,504 | 4,589 | 4,993 |
Fixed maturities, available-for-sale | |||
Fixed maturity and equity security impairments | |||
Noncash related proceeds | (125) | 158 | (130) |
Fixed maturities, held-to-maturity | |||
Fixed maturity and equity security impairments | |||
Noncash related proceeds | 1 | 1 | 1 |
Equity Securities | |||
Fixed maturity and equity security impairments | |||
Noncash related proceeds | $ 2 | $ 12 | $ (8) |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Credit losses recognized in earnings on fixed maturity securities | ||
Balance, beginning of period | $ 532 | $ 781 |
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period | (229) | (243) |
Credit loss impairments previously recognized on securities impaired to fair value during the period | (2) | (20) |
Credit loss impairments recognized in the current period on securities not previously impaired | 41 | 3 |
Additional credit loss impairments recognized in the current period on securities previously impaired | 1 | 3 |
Increases due to the passage of time on previously recorded credit losses | 24 | 20 |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (8) | (12) |
Balance, end of period | $ 359 | $ 532 |
Investments (Trading Account As
Investments (Trading Account Assets Supporting Insurance Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | $ 21,407 | $ 20,164 | |
Fair Value | [1] | 21,840 | 20,522 |
Short-term investments and cash equivalents | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 655 | 765 | |
Fair Value | 655 | 765 | |
Fixed maturities | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 19,655 | 18,369 | |
Fair Value | 19,850 | 18,503 | |
Fixed maturities | Corporate securities | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 13,903 | 12,797 | |
Fair Value | 13,997 | 12,851 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 2,032 | 1,860 | |
Fair Value | 2,052 | 1,862 | |
Fixed maturities | Residential mortgage-backed securities | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 1,142 | 1,411 | |
Fair Value | 1,150 | 1,428 | |
Fixed maturities | Asset-backed securities | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 1,333 | 1,295 | |
Fair Value | 1,349 | 1,299 | |
Fixed maturities | Foreign government bonds | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 915 | 680 | |
Fair Value | 926 | 694 | |
Fixed maturities | U.S. government authorities and agencies and obligations of U.S. states | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 330 | 326 | |
Fair Value | 376 | 369 | |
Equity securities | |||
Major Types Of Investment Securities [Line Items] | |||
Amortized Cost | 1,097 | 1,030 | |
Fair Value | $ 1,335 | $ 1,254 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Marketable Securities [Line Items] | |||
Gross unrealized losses related to high or highest quality securities | $ 4,233,000,000 | $ 3,750,000,000 | |
Gross unrealized losses related to other than high or highest quality securities | 392,000,000 | 583,000,000 | |
Twelve months or more, Unrealized Losses | 1,420,000,000 | 1,802,000,000 | |
Gross unrealized losses representing declines in value of greater than 20% | 9,000,000 | 19,000,000 | |
Securities continuous unrealized loss position less than 6 months | 8,000,000 | 19,000,000 | |
Net change in unrealized gains (losses) from trading account assets supporting insurance liabilities | 75,000,000 | (642,000,000) | $ 144,000,000 |
Net change in unrealized gains (losses) from other trading account assets | 164,000,000 | (366,000,000) | $ (108,000,000) |
Net carrying value of commercial loans held for sale | 519,000,000 | 274,000,000 | |
Acquired | 0 | 214,000,000 | |
Sold | 0 | 18,000,000 | |
Significant commitments | 0 | 0 | |
New troubled debt | 47,000,000 | 0 | |
Private debt commitments | 0 | ||
Consolidated feeder funds’ investments | 216,000,000 | 81,000,000 | |
Unaffiliated interest | 93,000,000 | 0 | |
Master funds gross assets | 36,279,000,000 | 17,508,000,000 | |
Master funds gross liabilities | 34,880,000,000 | 16,920,000,000 | |
Fixed maturities | 379,000,000 | ||
Trading account assets | 23,000,000 | ||
Other trading accounts (less than) | 1,000,000 | ||
Commercial mortgage | 1,000,000 | ||
Fair value of securities | 7,185,000,000 | 7,794,000,000 | |
Assets deposited with governmental authorities | 78,000,000 | 162,000,000 | |
Restricted cash and securities | 54,000,000 | 136,000,000 | |
Assets carried at held in trust | 3,300,000,000 | ||
Assets carried at amount | 605,000,000 | 603,000,000 | |
Securities restricted as to sale | 89,000,000 | 109,000,000 | |
Investments | |||
Schedule Of Marketable Securities [Line Items] | |||
Fair value of securities | 1,595,000,000 | 2,195,000,000 | |
Cash | |||
Schedule Of Marketable Securities [Line Items] | |||
Fair value of securities | $ 5,590,000,000 | $ 5,599,000,000 | |
California | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 27.00% | ||
New York | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 9.00% | ||
Texas | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 9.00% | ||
Europe | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 4.00% | ||
Asia | |||
Schedule Of Marketable Securities [Line Items] | |||
Commercial mortgage loan, concentration percentage | 1.00% |
Investments (Other Trading Acco
Investments (Other Trading Account Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Marketable Securities [Line Items] | ||
Fair Value | $ 5,764 | $ 14,458 |
Other | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 4 | 12 |
Fair Value | 5 | 15 |
Fixed maturities | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 3,634 | 11,132 |
Fair Value | 3,453 | 10,764 |
Equity securities | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 985 | 1,006 |
Fair Value | 1,056 | 1,098 |
Short-term investments and cash equivalents | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 26 | 26 |
Fair Value | 26 | 26 |
Subtotal | ||
Schedule Of Marketable Securities [Line Items] | ||
Amortized Cost | 4,649 | 12,176 |
Fair Value | 4,540 | 11,903 |
Derivative instruments | ||
Schedule Of Marketable Securities [Line Items] | ||
Fair Value | $ 1,224 | $ 2,555 |
Investments (Concentrations of
Investments (Concentrations of Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investments in Japanese government and government agency securities: | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | $ 61,611 | $ 55,172 |
Fair Value | 74,692 | 63,434 |
Investments in Japanese government and government agency securities: | Fixed maturities, available-for-sale | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 60,240 | 53,851 |
Fair Value | 73,051 | 61,911 |
Investments in Japanese government and government agency securities: | Fixed maturities, held-to-maturity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 818 | 796 |
Fair Value | 1,075 | 988 |
Investments in Japanese government and government agency securities: | Trading account assets supporting insurance liabilities | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 537 | 492 |
Fair Value | 550 | 502 |
Investments in Japanese government and government agency securities: | Other trading account assets | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 16 | 33 |
Fair Value | 16 | 33 |
Investments in South Korean government and government agency securities: | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 7,625 | 7,235 |
Fair Value | 9,479 | 9,277 |
Investments in South Korean government and government agency securities: | Fixed maturities, available-for-sale | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 7,581 | 7,191 |
Fair Value | 9,435 | 9,233 |
Investments in South Korean government and government agency securities: | Fixed maturities, held-to-maturity | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 0 | 0 |
Fair Value | 0 | 0 |
Investments in South Korean government and government agency securities: | Trading account assets supporting insurance liabilities | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 44 | 44 |
Fair Value | 44 | 44 |
Investments in South Korean government and government agency securities: | Other trading account assets | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Amortized Cost | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 51,985 | $ 49,046 | |
Valuation Allowance | (98) | (99) | |
Total net commercial mortgage and agricultural property loans by property type | 51,887 | 48,947 | |
Loans and Leases Receivable, Gross, Consumer, Real Estate | 900 | 1,625 | |
Total net other loans | 892 | 1,612 | |
Commercial mortgage and other loans | [1] | $ 52,779 | $ 50,559 |
% of Total | 100.00% | 100.00% | |
Allowance for Loan and Lease Losses, Real Estate | $ 8 | $ 13 | |
Total commercial mortgage loans | |||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 49,027 | $ 46,187 | |
% of Total | 94.30% | 94.20% | |
Uncollateralized loans | |||
Servicing Assets at Fair Value [Line Items] | |||
Loans and Leases Receivable, Gross, Consumer, Real Estate | $ 638 | $ 1,012 | |
Residential property loans | |||
Servicing Assets at Fair Value [Line Items] | |||
Loans and Leases Receivable, Gross, Consumer, Real Estate | 252 | 301 | |
Other collateralized loans | |||
Servicing Assets at Fair Value [Line Items] | |||
Loans and Leases Receivable, Gross, Consumer, Real Estate | 10 | 312 | |
Office | |||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 12,424 | $ 11,226 | |
% of Total | 23.90% | 22.90% | |
Retail | |||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 8,555 | $ 8,917 | |
% of Total | 16.50% | 18.20% | |
Apartments/Multi-Family | |||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 13,733 | $ 12,034 | |
% of Total | 26.40% | 24.50% | |
Industrial | |||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 8,075 | $ 7,775 | |
% of Total | 15.50% | 15.90% | |
Hospitality | |||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 2,274 | $ 2,513 | |
% of Total | 4.40% | 5.10% | |
Other | |||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 3,966 | $ 3,722 | |
% of Total | 7.60% | 7.60% | |
Agricultural property loans | |||
Servicing Assets at Fair Value [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 2,958 | $ 2,859 | |
% of Total | 5.70% | 5.80% | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Allowance for Loss
Investments (Allowance for Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | $ 112 | $ 119 |
Addition to (release of) allowance for losses | (6) | (7) |
Charge-offs, net of recoveries | (1) | 0 |
Change in foreign exchange | 1 | 0 |
Total ending balance | 106 | 112 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 97 | 104 |
Addition to (release of) allowance for losses | 0 | (7) |
Charge-offs, net of recoveries | (1) | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 96 | 97 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 2 | 1 |
Addition to (release of) allowance for losses | 0 | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 2 | 2 |
Residential Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 3 | 5 |
Addition to (release of) allowance for losses | (1) | (2) |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 2 | 3 |
Other Collateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 0 | 0 |
Addition to (release of) allowance for losses | 0 | 0 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 0 | 0 |
Uncollateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Allowance for credit losses, beginning of year | 10 | 9 |
Addition to (release of) allowance for losses | (5) | 1 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 1 | 0 |
Total ending balance | $ 6 | $ 10 |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for Credit Losses: | ||
Individually evaluated for impairment | $ 6 | $ 1 |
Collectively evaluated for impairment | 100 | 111 |
Total ending balance | 106 | 112 |
Recorded Investment: | ||
Individually evaluated for impairment | 148 | 121 |
Collectively evaluated for impairment | 52,737 | 50,550 |
Total ending balance | 52,885 | 50,671 |
Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance | 0 | 0 |
Commercial Mortgage Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 6 | 1 |
Collectively evaluated for impairment | 90 | 96 |
Total ending balance | 96 | 97 |
Recorded Investment: | ||
Individually evaluated for impairment | 116 | 111 |
Collectively evaluated for impairment | 48,911 | 46,076 |
Total ending balance | 49,027 | 46,187 |
Commercial Mortgage Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance | 0 | 0 |
Agricultural Property Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2 | 2 |
Total ending balance | 2 | 2 |
Recorded Investment: | ||
Individually evaluated for impairment | 30 | 8 |
Collectively evaluated for impairment | 2,928 | 2,851 |
Total ending balance | 2,958 | 2,859 |
Agricultural Property Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance | 0 | 0 |
Residential Property Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2 | 3 |
Total ending balance | 2 | 3 |
Recorded Investment: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 252 | 301 |
Total ending balance | 252 | 301 |
Residential Property Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance | 0 | 0 |
Other Collateralized Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 |
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 10 | 312 |
Total ending balance | 10 | 312 |
Other Collateralized Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance | 0 | 0 |
Uncollateralized Loans | ||
Allowance for Credit Losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 6 | 10 |
Total ending balance | 6 | 10 |
Recorded Investment: | ||
Individually evaluated for impairment | 2 | 2 |
Collectively evaluated for impairment | 636 | 1,010 |
Total ending balance | 638 | 1,012 |
Uncollateralized Loans | Loans acquired with deteriorated credit quality | ||
Allowance for Credit Losses: | ||
Total ending balance | 0 | 0 |
Recorded Investment: | ||
Total ending balance | $ 0 | $ 0 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | $ 52,885 | $ 50,671 |
Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 49,027 | 46,187 |
Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 2,958 | 2,859 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 0%-59.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 28,131 | 25,978 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 0%-59.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 2,803 | 2,587 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 0%-59.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 30,934 | 28,565 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 60%-69.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 12,608 | 12,191 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 60%-69.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 24 | 185 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 60%-69.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 12,632 | 12,376 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 70%-79.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 5,383 | 5,668 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 70%-79.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, 70%-79.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 5,383 | 5,668 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, Greater than 80% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 373 | 119 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, Greater than 80% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan-to-Value Ratio, Greater than 80% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 373 | 119 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan To Value Ratio, Total | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 46,495 | 43,956 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan To Value Ratio, Total | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 2,827 | 2,772 |
Debt Service Coverage Ratio, Greater than 1.2X | Loan To Value Ratio, Total | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 49,322 | 46,728 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 0%-59.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 446 | 515 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 0%-59.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 114 | 84 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 0%-59.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 560 | 599 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 60%-69.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 401 | 395 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 60%-69.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 60%-69.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 401 | 395 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 70%-79.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 694 | 500 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 70%-79.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, 70%-79.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 694 | 500 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, Greater than 80% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 62 | 151 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, Greater than 80% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan-to-Value Ratio, Greater than 80% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 62 | 151 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan To Value Ratio, Total | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 1,603 | 1,561 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan To Value Ratio, Total | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 114 | 84 |
Debt Service Coverage Ratio, 1.0X to 1.2X | Loan To Value Ratio, Total | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 1,717 | 1,645 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 0%-59.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 626 | 207 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 0%-59.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 17 | 3 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 0%-59.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 643 | 210 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 60%-69.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 115 | 234 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 60%-69.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 60%-69.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 115 | 234 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 70%-79.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 56 | 97 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 70%-79.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, 70%-79.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 56 | 97 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, Greater than 80% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 132 | 132 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, Greater than 80% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, Less than 1.0X | Loan-to-Value Ratio, Greater than 80% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 132 | 132 |
Debt Service Coverage Ratio, Less than 1.0X | Loan To Value Ratio, Total | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 929 | 670 |
Debt Service Coverage Ratio, Less than 1.0X | Loan To Value Ratio, Total | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 17 | 3 |
Debt Service Coverage Ratio, Less than 1.0X | Loan To Value Ratio, Total | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 946 | 673 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 0%-59.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 29,203 | 26,700 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 0%-59.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 2,934 | 2,674 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 0%-59.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 32,137 | 29,374 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 60%-69.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 13,124 | 12,820 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 60%-69.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 24 | 185 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 60%-69.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 13,148 | 13,005 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 70%-79.99% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 6,133 | 6,265 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 70%-79.99% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, 70%-79.99% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 6,133 | 6,265 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, Greater than 80% | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 567 | 402 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, Greater than 80% | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 0 | 0 |
Debt Service Coverage Ratio, Total | Loan-to-Value Ratio, Greater than 80% | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 567 | 402 |
Debt Service Coverage Ratio, Total | Loan To Value Ratio, Total | Commercial Mortgage Loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 49,027 | 46,187 |
Debt Service Coverage Ratio, Total | Loan To Value Ratio, Total | Agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | 2,958 | 2,859 |
Debt Service Coverage Ratio, Total | Loan To Value Ratio, Total | Total commercial mortgage and agricultural property loans | ||
Credit Quality Indicators [Line Items] | ||
Total commercial mortgage and agricultural property loans | $ 51,985 | $ 49,046 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Servicing Liabilities at Fair Value [Line Items] | ||
Current | $ 52,851 | $ 50,655 |
Past Due | 34 | 16 |
Total Loans | 52,885 | 50,671 |
Non- Accrual Status | 54 | 60 |
Commercial Mortgage Loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 49,006 | 46,187 |
Past Due | 21 | 0 |
Total Loans | 49,027 | 46,187 |
Non- Accrual Status | 49 | 53 |
Agricultural property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 2,956 | 2,856 |
Past Due | 2 | 3 |
Total Loans | 2,958 | 2,859 |
Non- Accrual Status | 2 | 1 |
Residential property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 241 | 288 |
Past Due | 11 | 13 |
Total Loans | 252 | 301 |
Non- Accrual Status | 3 | 6 |
Other collateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 10 | 312 |
Past Due | 0 | 0 |
Total Loans | 10 | 312 |
Non- Accrual Status | 0 | 0 |
Uncollateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Current | 638 | 1,012 |
Past Due | 0 | 0 |
Total Loans | 638 | 1,012 |
Non- Accrual Status | 0 | 0 |
30-59 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 28 | 9 |
30-59 Days Past Due | Commercial Mortgage Loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 21 | 0 |
30-59 Days Past Due | Agricultural property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 0 | 2 |
30-59 Days Past Due | Residential property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 7 | 7 |
30-59 Days Past Due | Other collateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 0 | 0 |
30-59 Days Past Due | Uncollateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 1 | 0 |
60-89 Days Past Due | Commercial Mortgage Loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | Agricultural property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | Residential property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 1 | 0 |
60-89 Days Past Due | Other collateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days Past Due | Uncollateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Past Due | 0 | 0 |
Greater Than 90 Days | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Financing Receivable Recorded Investment Greater Than 90 Days Past Due And Still Accruing | 5 | 7 |
Greater Than 90 Days | Commercial Mortgage Loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Financing Receivable Recorded Investment Greater Than 90 Days Past Due | 0 | 0 |
Greater Than 90 Days | Agricultural property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Financing Receivable Recorded Investment Greater Than 90 Days Past Due | 2 | 1 |
Greater Than 90 Days | Residential property loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Financing Receivable Recorded Investment Greater Than 90 Days Past Due | 3 | 6 |
Greater Than 90 Days | Other collateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Financing Receivable Recorded Investment Greater Than 90 Days Past Due | 0 | 0 |
Greater Than 90 Days | Uncollateralized loans | ||
Servicing Liabilities at Fair Value [Line Items] | ||
Financing Receivable Recorded Investment Greater Than 90 Days Past Due | $ 0 | $ 0 |
Investments (Other Long Term In
Investments (Other Long Term Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Long Term Investments [Line Items] | |||
Other long-term investments | [1] | $ 11,283 | $ 9,986 |
Joint ventures and limited partnerships: | |||
Other Long Term Investments [Line Items] | |||
Other long-term investments | 8,010 | 7,532 | |
Joint ventures and limited partnerships: | Private Equity Funds | |||
Other Long Term Investments [Line Items] | |||
Other long-term investments | 4,059 | 4,393 | |
Joint ventures and limited partnerships: | Hedge Fund | |||
Other Long Term Investments [Line Items] | |||
Other long-term investments | 2,660 | 2,054 | |
Joint ventures and limited partnerships: | Real estate-related | |||
Other Long Term Investments [Line Items] | |||
Other long-term investments | 1,291 | 1,085 | |
Real estate held through direct ownership | |||
Other Long Term Investments [Line Items] | |||
Other long-term investments | 2,195 | 1,464 | |
Other | |||
Other Long Term Investments [Line Items] | |||
Other long-term investments | $ 1,078 | $ 990 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Equity Method Inve
Investments (Equity Method Investments, Statement of Financial Position) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investments [Abstract] | ||
Total assets | $ 59,897 | $ 53,799 |
Total liabilities | 14,787 | 13,610 |
Partners’ capital | 45,110 | 40,189 |
Total liabilities and partners’ capital | 59,897 | 53,799 |
Total liabilities and partners’ capital included above | 5,135 | 4,398 |
Equity in limited partnership interests not included above | 592 | 142 |
Carrying value | $ 5,727 | $ 4,540 |
Investments (Equity Method In79
Investments (Equity Method Investments, Statement of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Abstract] | |||
Total revenue | $ 5,360 | $ 4,356 | $ 5,632 |
Total expenses | (1,995) | (1,803) | (1,654) |
Net earnings (losses) | 3,365 | 2,553 | 3,978 |
Equity in net earnings (losses) included above | 247 | 216 | 522 |
Equity in net earnings (losses) of limited partnership interests not included above | 103 | 32 | 72 |
Total equity in net earnings (losses) | $ 350 | $ 248 | $ 594 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 16,226 | $ 15,738 | $ 15,994 |
Less: investment expenses | (706) | (909) | (738) |
Net investment income | 15,520 | 14,829 | 15,256 |
Fixed maturities, available-for-sale | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 10,920 | 10,347 | 10,558 |
Fixed maturities, held-to-maturity | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 208 | 202 | 185 |
Equity securities, available-for-sale | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 366 | 337 | 354 |
Trading account assets | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 986 | 1,205 | 1,074 |
Commercial mortgage and other loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 2,243 | 2,255 | 2,103 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 627 | 619 | 632 |
Short-term investments and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 145 | 56 | 38 |
Other long-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 731 | $ 717 | $ 1,050 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ 2,194 | $ 4,025 | $ 1,636 |
Fixed maturities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 666 | 1,634 | 1,194 |
Equity securities | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 376 | 451 | 512 |
Commercial mortgage and other loans | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 55 | 37 | 110 |
Investment real estate | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 15 | 40 | (5) |
Joint ventures and limited partnerships | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | (94) | (122) | (15) |
Derivatives | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | 1,175 | 1,970 | (182) |
Other | |||
Schedule Of Gain Loss On Investments [Line Items] | |||
Realized investment gains (losses), net | $ 1 | $ 15 | $ 22 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Marketable Securities [Line Items] | |||
Net unrealized gains (losses) on investments | $ 32,732 | $ 28,474 | $ 37,113 |
Net unrealized losses on held to maturity securities transferred from available-for-sale | 0 | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | |||
Schedule Of Marketable Securities [Line Items] | |||
Net unrealized gains (losses) on investments | 1,316 | 1,165 | 206 |
Fixed Maturities | |||
Schedule Of Marketable Securities [Line Items] | |||
Net unrealized gains (losses) on investments | 312 | 234 | 349 |
Fixed Maturities | Available-for-sale | |||
Schedule Of Marketable Securities [Line Items] | |||
Net unrealized gains (losses) on investments | 28,526 | 24,673 | 33,625 |
Equity securities, available-for-sale | Available-for-sale | |||
Schedule Of Marketable Securities [Line Items] | |||
Net unrealized gains (losses) on investments | 2,599 | 2,427 | 2,940 |
Other investments | |||
Schedule Of Marketable Securities [Line Items] | |||
Net unrealized gains (losses) on investments | $ (21) | $ (25) | $ (7) |
Investments (Repurchase Agreeme
Investments (Repurchase Agreements and Securities Lending Transactions) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | $ 7,606 | $ 7,882 |
Total securities lending transactions | 4,333 | 3,496 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 956 | 2,171 |
Total securities lending transactions | 4,259 | 3,263 |
Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 6,650 | 5,458 |
Total securities lending transactions | 74 | 233 |
30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 253 |
Total securities lending transactions | 0 | 0 |
Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 7,367 | 6,757 |
Total securities lending transactions | 9 | 94 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 950 | 1,991 |
Total securities lending transactions | 9 | 94 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 6,417 | 4,513 |
Total securities lending transactions | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 253 |
Total securities lending transactions | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Obligations of U.S. states and their political subdivisions | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 18 | 4 |
Obligations of U.S. states and their political subdivisions | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 18 | 4 |
Obligations of U.S. states and their political subdivisions | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Obligations of U.S. states and their political subdivisions | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Obligations of U.S. states and their political subdivisions | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign government bonds | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 279 | 0 |
Foreign government bonds | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 279 | 0 |
Foreign government bonds | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign government bonds | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign government bonds | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate public securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 11 |
Total securities lending transactions | 2,731 | 1,487 |
U.S. corporate public securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 11 |
Total securities lending transactions | 2,731 | 1,401 |
U.S. corporate public securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 86 |
U.S. corporate public securities | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate public securities | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
U.S. corporate private securities | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign corporate public securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 6 | 0 |
Total securities lending transactions | 786 | 629 |
Foreign corporate public securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 6 | 0 |
Total securities lending transactions | 786 | 579 |
Foreign corporate public securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 50 |
Foreign corporate public securities | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign corporate public securities | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign corporate private securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign corporate private securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign corporate private securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign corporate private securities | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Foreign corporate private securities | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Asset-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 241 |
Asset-backed securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 241 |
Asset-backed securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Asset-backed securities | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Asset-backed securities | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Commercial mortgage-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 8 |
Commercial mortgage-backed securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 8 |
Commercial mortgage-backed securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Commercial mortgage-backed securities | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Commercial mortgage-backed securities | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Residential mortgage-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 233 | 1,114 |
Total securities lending transactions | 129 | 97 |
Residential mortgage-backed securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 169 |
Total securities lending transactions | 55 | 0 |
Residential mortgage-backed securities | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 233 | 945 |
Total securities lending transactions | 74 | 97 |
Residential mortgage-backed securities | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Residential mortgage-backed securities | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Equity securities, available-for-sale | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 381 | 936 |
Equity securities, available-for-sale | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 381 | 936 |
Equity securities, available-for-sale | Up to 30 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Equity securities, available-for-sale | 30 to 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | 0 | 0 |
Equity securities, available-for-sale | Greater than 90 Days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total repurchase agreements | 0 | 0 |
Total securities lending transactions | $ 0 | $ 0 |
Investments (Securities Pledged
Investments (Securities Pledged) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | $ 15,626 | $ 15,098 |
Fixed maturities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 11,393 | 11,732 |
Trading account assets supporting insurance liabilities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 477 | 327 |
Other trading account assets | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 2 | 8 |
Separate account assets | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 3,386 | 2,128 |
Equity securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | $ 368 | $ 903 |
Investments Investments (Restri
Investments Investments (Restricted Assets and Special Deposits) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments Owned and Pledged as Collateral | $ 16,402 | $ 14,557 |
Securities Sold under Agreements to Repurchase | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments Owned and Pledged as Collateral | 7,606 | 7,882 |
Cash Collateral For Loaned Securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments Owned and Pledged as Collateral | 4,333 | 3,496 |
Separate Account Liabilities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments Owned and Pledged as Collateral | 3,462 | 2,178 |
Policyholders' Account Balances | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Financial Instruments Owned and Pledged as Collateral | $ 1,001 | $ 1,001 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | [1] | $ 2,150 | $ 8,597 |
Consolidated VIEs for Which the Company is the Investment Manager | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 4,924 | 10,253 | |
Total liabilities of consolidated VIEs | 2,761 | 9,271 | |
Consolidated VIEs for Which the Company is the Investment Manager | ASU 2015-02, Wholly-owned by consolidated subsidiaries | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,386 | ||
Consolidated VIEs for Which the Company is the Investment Manager | Fixed maturities, available-for-sale | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 65 | 0 | |
Consolidated VIEs for Which the Company is the Investment Manager | Fixed maturities, held-to-maturity | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 81 | 0 | |
Consolidated VIEs for Which the Company is the Investment Manager | Trading account assets supporting insurance liabilities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 0 | 0 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other trading account assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 2,140 | 9,536 | |
Consolidated VIEs for Which the Company is the Investment Manager | Commercial mortgage and other loans | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 503 | 0 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other long-term investments | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,083 | 0 | |
Consolidated VIEs for Which the Company is the Investment Manager | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 618 | 337 | |
Consolidated VIEs for Which the Company is the Investment Manager | Accrued investment income | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 10 | 56 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 424 | 324 | |
Consolidated VIEs for Which the Company is the Investment Manager | Notes issued by consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 2,150 | 8,597 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 611 | 674 | |
Other Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,181 | 1,411 | |
Total liabilities of consolidated VIEs | 7 | 3 | |
Other Consolidated VIEs | Fixed maturities, available-for-sale | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 269 | 179 | |
Other Consolidated VIEs | Fixed maturities, held-to-maturity | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 783 | 760 | |
Other Consolidated VIEs | Trading account assets supporting insurance liabilities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 9 | 10 | |
Other Consolidated VIEs | Other trading account assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 0 | 0 | |
Other Consolidated VIEs | Commercial mortgage and other loans | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 0 | 300 | |
Other Consolidated VIEs | Other long-term investments | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 114 | 155 | |
Other Consolidated VIEs | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1 | 1 | |
Other Consolidated VIEs | Accrued investment income | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 4 | 3 | |
Other Consolidated VIEs | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1 | 3 | |
Other Consolidated VIEs | Notes issued by consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 0 | 0 | |
Other Consolidated VIEs | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | $ 7 | $ 3 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
VIEs Assets, maturities obligations (greater than) | 5 years | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Liabilities held within unconsolidated VIEs | $ 0 | $ 0 |
Variable Interest Entity, Not Primary Beneficiary | Fixed maturities, AFS, Other trading account assets, at FV, and Other long-term investments | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss resulting from investment in unconsolidated VIEs | 515,000,000 | 218,000,000 |
Variable Interest Entity, Not Primary Beneficiary | Other long-term investments | Joint ventures and limited partnerships | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss resulting from investment in unconsolidated VIEs | $ 8,010,000,000 | $ 7,532,000,000 |
Deferred Policy Acquisition C88
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 16,718 | $ 15,971 | $ 16,512 |
Capitalization of commissions, sales and issue expenses | 2,845 | 2,653 | 2,694 |
Amortization—Impact of assumption and experience unlocking and true-ups | 445 | 280 | 629 |
Amortization—All other | (2,322) | (2,400) | (2,602) |
Change in unrealized investment gains and losses | (199) | 477 | (697) |
Foreign currency translation and other | 174 | (263) | (565) |
Balance, end of year | $ 17,661 | $ 16,718 | $ 15,971 |
Investments in Operating Join89
Investments in Operating Joint Ventures (Investments in Operating Joint Ventures) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Investment in operating joint ventures | $ 994 | $ 341 | $ 325 |
Dividends received from operating joint ventures | 60 | 27 | 27 |
After-tax equity earnings of operating joint ventures | $ 49 | $ 15 | $ 16 |
Investments in Operating Join90
Investments in Operating Joint Ventures (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | |||
Investment in operating joint ventures | $ 994 | $ 341 | $ 325 |
Asset management fee income | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in operating joint ventures | $ 32 | $ 34 | $ 33 |
Value of Business Acquired (Bal
Value of Business Acquired (Balance of and Changes in VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, beginning of year | $ 2,828 | $ 2,836 | $ 3,675 |
Acquisitions | 0 | 0 | 7 |
Amortization—Impact of assumption and experience unlocking and true-ups | (246) | 128 | (175) |
Amortization—All other | (351) | (385) | (420) |
Change in unrealized investment gains and losses | (112) | 214 | (89) |
Interest | 81 | 86 | 95 |
Foreign currency translation | 114 | (57) | (257) |
Other | 0 | 6 | 0 |
Balance, end of year | 2,314 | $ 2,828 | $ 2,836 |
CIGNA | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of year | $ 198 | ||
Weighted Average Useful Life | 12 years | ||
Interest accrual rates | 6.40% | 6.40% | 6.40% |
Prudential Annuities Holding Company | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of year | $ 33 | ||
Weighted Average Useful Life | 5 years | ||
Interest accrual rates | 6.00% | 6.05% | 6.10% |
Gibraltar Life | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of year | $ 1,290 | ||
Weighted Average Useful Life | 8 years | ||
Gibraltar Life | Minimum | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Interest accrual rates | 1.28% | 1.28% | 1.28% |
Gibraltar Life | Maximum | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Interest accrual rates | 2.87% | 2.87% | 2.87% |
Aoba Life | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of year | $ 0 | ||
Weighted Average Useful Life | 7 years | ||
Interest accrual rates | 2.60% | 2.60% | 2.60% |
Hartford Life Business | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of year | $ 786 | ||
Weighted Average Useful Life | 8 years | ||
Hartford Life Business | Minimum | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Interest accrual rates | 3.00% | 3.00% | 3.00% |
Hartford Life Business | Maximum | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Interest accrual rates | 6.17% | 6.17% | 6.17% |
Gibraltar BSN Life Berhad | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of year | $ 7 | ||
Weighted Average Useful Life | 16 years | ||
Gibraltar BSN Life Berhad | Minimum | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Interest accrual rates | 4.07% | 4.07% | 4.07% |
Gibraltar BSN Life Berhad | Maximum | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Interest accrual rates | 5.51% | 5.51% | 5.51% |
Value of Business Acquired (Est
Value of Business Acquired (Estimated Future Amortization, Net of Interest) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Present Value of Future Insurance Profits [Abstract] | |
Estimated future VOBA amortization - 2017 | $ 236 |
Estimated future VOBA amortization - 2018 | 210 |
Estimated future VOBA amortization - 2019 | 187 |
Estimated future VOBA amortization - 2020 | 168 |
Estimated future VOBA amortization - 2021 | $ 156 |
Goodwill and Other Intangible93
Goodwill and Other Intangibles (Changes in the Book Value of Goodwill by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | |||
Gross Goodwill, Beginning of the year | $ 824 | $ 831 | $ 839 |
Accumulated Impairment Losses, Beginning of the year | 0 | 0 | 0 |
Net Goodwill, Beginning of the year | 824 | 831 | 839 |
Acquisitions | 0 | 0 | 18 |
Other | 9 | (7) | (26) |
Gross Goodwill, End of the year | 833 | 824 | 831 |
Accumulated Impairment Losses, End of the year | 0 | 0 | 0 |
Net Goodwill, End of the year | 833 | 824 | 831 |
Retirement | |||
Goodwill [Roll Forward] | |||
Gross Goodwill, Beginning of the year | 444 | 444 | 444 |
Accumulated Impairment Losses, Beginning of the year | 0 | 0 | 0 |
Net Goodwill, Beginning of the year | 444 | 444 | 444 |
Acquisitions | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Gross Goodwill, End of the year | 444 | 444 | 444 |
Accumulated Impairment Losses, End of the year | 0 | 0 | 0 |
Net Goodwill, End of the year | 444 | 444 | 444 |
Asset Management | |||
Goodwill [Roll Forward] | |||
Gross Goodwill, Beginning of the year | 231 | 235 | 240 |
Accumulated Impairment Losses, Beginning of the year | 0 | 0 | 0 |
Net Goodwill, Beginning of the year | 231 | 235 | 240 |
Acquisitions | 0 | 0 | 0 |
Other | (1) | (4) | (5) |
Gross Goodwill, End of the year | 230 | 231 | 235 |
Accumulated Impairment Losses, End of the year | 0 | 0 | 0 |
Net Goodwill, End of the year | 230 | 231 | 235 |
International Insurance | |||
Goodwill [Roll Forward] | |||
Gross Goodwill, Beginning of the year | 149 | 152 | 155 |
Accumulated Impairment Losses, Beginning of the year | 0 | 0 | 0 |
Net Goodwill, Beginning of the year | 149 | 152 | 155 |
Acquisitions | 0 | 0 | 18 |
Other | 10 | (3) | (21) |
Gross Goodwill, End of the year | 159 | 149 | 152 |
Accumulated Impairment Losses, End of the year | 0 | 0 | 0 |
Net Goodwill, End of the year | $ 159 | $ 149 | $ 152 |
Goodwill and Other Intangible94
Goodwill and Other Intangibles (Other Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Not subject to amortization | $ 3 | $ 3 |
Total | 310 | 303 |
Mortgage servicing rights | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 548 | 500 |
Accumulated Amortization | (341) | (302) |
Net Carrying Amount | 207 | 198 |
Customer relationships | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 243 | 268 |
Accumulated Amortization | (179) | (196) |
Net Carrying Amount | 64 | 72 |
Other | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 138 | 72 |
Accumulated Amortization | (102) | (42) |
Net Carrying Amount | $ 36 | $ 30 |
Goodwill and Other Intangible95
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization expense for other intangibles | $ 116 | $ 64 | $ 55 |
Expected amortization expense for other intangibles - 2017 | 49 | ||
Expected amortization expense for other intangibles - 2018 | 42 | ||
Expected amortization expense for other intangibles - 2019 | 37 | ||
Expected amortization expense for other intangibles - 2020 | 31 | ||
Expected amortization expense for other intangibles - 2021 | 27 | ||
Mortgage servicing rights | |||
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Fair values of net mortgage servicing rights | 207 | 198 | |
Mortgage servicing rights | Fair Value | |||
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Fair values of net mortgage servicing rights | $ 217 | $ 203 |
Policyholders' Liabilities (Fut
Policyholders' Liabilities (Future Policy Benefits) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Life insurance | $ 161,406 | $ 148,100 |
Individual and group annuities and supplementary contracts | 63,486 | 60,493 |
Other contract liabilities | 13,173 | 12,872 |
Subtotal future policy benefits excluding unpaid claims and claim adjustment expenses | 238,065 | 221,465 |
Unpaid claims and claim adjustment expenses | 2,843 | 2,919 |
Total future policy benefits | $ 240,908 | $ 224,384 |
Policyholders' Liabilities (Nar
Policyholders' Liabilities (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Policyholders’ account balances | $ 145,205,000,000 | $ 136,784,000,000 | |
Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Unpaid claims and claim adjustment expenses interest rate | 2.60% | ||
Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Unpaid claims and claim adjustment expenses interest rate | 6.40% | ||
Individual participating life insurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Participating policies direct in force | 4.00% | 4.00% | |
Participating policies direct premiums | 14.00% | 16.00% | 16.00% |
Individual participating life insurance | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liabilities for future policy benefits, interest rate | 2.50% | ||
Individual participating life insurance | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liabilities for future policy benefits, interest rate | 7.50% | ||
Individual nonparticipating life insurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Percentage of reserves based on interest rates in excess of 8 Percent (less than) | 1.00% | ||
Individual nonparticipating life insurance | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liabilities for future policy benefits, interest rate | 0.20% | ||
Individual nonparticipating life insurance | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liabilities for future policy benefits, interest rate | 9.50% | ||
Individual and group annuities and supplementary contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Percentage of reserves based on interest rates in excess of 8 Percent (less than) | 1.00% | ||
Individual and group annuities and supplementary contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liabilities for future policy benefits, interest rate | 0.40% | ||
Individual and group annuities and supplementary contracts | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liabilities for future policy benefits, interest rate | 11.30% | ||
Other contract liabilities | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liabilities for future policy benefits, interest rate | 1.00% | ||
Other contract liabilities | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liabilities for future policy benefits, interest rate | 7.30% | ||
Funding agreements | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Policyholders’ account balances | $ 4,794,000,000 | $ 3,997,000,000 | |
Interest-sensitive life contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Policyholders’ account balances | $ 34,452,000,000 | 32,502,000,000 | |
Interest-sensitive life contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 0.00% | ||
Interest-sensitive life contracts | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 7.50% | ||
Other than interest-sensitive life contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Less than 1% of policyholders' account balances have interest crediting rates in excess of 8% | 1.00% | ||
Other than interest-sensitive life contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 0.00% | ||
Other than interest-sensitive life contracts | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 13.30% | ||
Delaware Statutory Trust | Funding agreements | Prudential Insurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Policyholders’ account balances | $ 3,758,000,000 | 2,957,000,000 | |
Medium-term Notes, at amortized cost | 3,210,000,000 | 2,958,000,000 | |
Commercial Paper | $ 550,000,000 | 0 | |
Delaware Statutory Trust | Funding agreements | Minimum | Prudential Insurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 0.00% | ||
Original maturities | 7 days | ||
Delaware Statutory Trust | Funding agreements | Maximum | Prudential Insurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 2.60% | ||
Original maturities | 5 years | ||
Medium-term notes | Delaware Statutory Trust | Funding agreements | Prudential Insurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
FANIP maximum authorized amount | $ 15,000,000,000 | ||
Commercial Paper | Delaware Statutory Trust | Funding agreements | Prudential Insurance | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
FANIP maximum authorized amount | 3,000,000,000 | ||
Federal Home Loan Bank of New York | Funding agreements | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Policyholders’ account balances | $ 1,001,000,000 | $ 1,001,000,000 | |
Federal Home Loan Bank of New York | Funding agreements | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 1.10% | ||
Original maturities | 4 years | ||
Federal Home Loan Bank of New York | Funding agreements | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Liability for policyholder contract deposits, interest rate | 1.70% | ||
Original maturities | 7 years |
Policyholders' Liabilities (Pol
Policyholders' Liabilities (Policyholders' Account Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 145,205 | $ 136,784 |
Individual annuities | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 40,338 | 37,384 |
Group annuities | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 28,350 | 27,141 |
Guaranteed investment contracts and guaranteed interest accounts | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 14,528 | 14,122 |
Funding agreements | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 4,794 | 3,997 |
Interest-sensitive life contracts | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 34,452 | 32,502 |
Dividend accumulation and other | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 22,743 | $ 21,638 |
Certain Long-Duration Contrac99
Certain Long-Duration Contracts with Guarantees (Variable Annuity, Variable Life, Variable Universal Life and Universal Life Contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Annuity Contracts | Return of net deposits | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 119,433 | $ 115,317 |
Net amount at risk | $ 493 | $ 739 |
Average attained age of contractholders | 65 years | 65 years |
Annuity Contracts | Return of net deposits | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 152 | $ 142 |
Net amount at risk | $ 0 | $ 0 |
Average attained age of contractholders | 66 years | 64 years |
Annuity Contracts | Minimum return or contract value | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 33,843 | $ 34,494 |
Net amount at risk | $ 3,714 | $ 4,212 |
Average attained age of contractholders | 67 years | 67 years |
Annuity Contracts | Minimum return or contract value | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 135,462 | $ 131,005 |
Net amount at risk | $ 5,788 | $ 5,459 |
Average attained age of contractholders | 65 years | 64 years |
Average period remaining until earliest expected annuitization | 3 months 6 days | 3 months 11 days |
Variable Life, Variable Universal Life and Universal Life Contracts | No-lapse guarantees | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net amount at risk | $ 225,084 | $ 211,428 |
Average attained age of contractholders | 56 years | 56 years |
Separate account value | $ 8,144 | $ 7,643 |
General account value | $ 14,513 | $ 13,364 |
Certain Long-Duration Contra100
Certain Long-Duration Contracts With Guarantees (Separate Account Investment Options) (Details) - Annuity Contracts - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | $ 146,578 | $ 142,832 |
Equity funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 86,751 | 88,992 |
Bond funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 48,789 | 46,642 |
Balanced funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | 914 | 843 |
Money market funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate Account Investment Options | $ 10,124 | $ 6,355 |
Certain Long-Duration Contra101
Certain Long-Duration Contracts with Guarantees (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Annuity Contracts | Market Value Adjusted | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account Investment Option | $ 8,566 | $ 8,714 |
Certain Long-Duration Contra102
Certain Long-Duration Contracts with Guarantees (Liabilities for Guarantee Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
GMDB | Variable Life, Variable Universal Life and Universal Life Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | $ 3,150 | $ 2,850 | $ 1,795 |
Incurred guarantee benefits | 927 | 517 | 794 |
Paid guarantee benefits and other | (36) | (22) | (18) |
Change in unrealized investment gains and losses | 102 | (193) | 283 |
Other | 0 | (2) | (4) |
Ending balance | 4,143 | 3,150 | 2,850 |
GMDB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 714 | 642 | 461 |
Incurred guarantee benefits | 98 | 167 | 245 |
Paid guarantee benefits and other | (91) | (85) | (68) |
Change in unrealized investment gains and losses | 0 | (10) | 4 |
Other | 0 | 0 | 0 |
Ending balance | 721 | 714 | 642 |
GMIB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 440 | 467 | 397 |
Incurred guarantee benefits | (18) | (40) | 40 |
Paid guarantee benefits and other | (15) | (16) | (15) |
Change in unrealized investment gains and losses | 49 | 41 | 44 |
Other | 18 | (12) | 1 |
Ending balance | 474 | 440 | 467 |
GMAB/GMWB/GMIWB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 8,433 | 8,182 | 441 |
Incurred guarantee benefits | (194) | 252 | 7,741 |
Paid guarantee benefits and other | 0 | 0 | 0 |
Change in unrealized investment gains and losses | 0 | 0 | 0 |
Other | (1) | (1) | 0 |
Ending balance | $ 8,238 | $ 8,433 | $ 8,182 |
Certain Long-Duration Contra103
Certain Long-Duration Contracts with Guarantees (Sales Inducements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Beginning balance | $ 1,189 | $ 1,514 | $ 1,813 |
Capitalization | 47 | 8 | 22 |
Amortization—Impact of assumption and experience unlocking and true-ups | 118 | 43 | 81 |
Amortization—All other | (231) | (392) | (403) |
Change in unrealized investment gains and losses | 4 | 16 | 1 |
Ending balance | $ 1,127 | $ 1,189 | $ 1,514 |
Closed Block (Narrative) (Detai
Closed Block (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Policyholders’ dividend obligation | $ 4,658 | $ 4,509 | $ 6,612 |
Dividends to policyholders | 1,941 | 2,130 | 2,635 |
Dividend Declared | |||
Dividends to policyholders | 32 | 58 | $ 60 |
Excess Of Actual Cumulative Earnings Over Expected Cumulative Earnings | |||
Policyholders’ dividend obligation | 1,647 | 1,694 | |
Net Unrealized Gains (Losses) on Investments | |||
Policyholders’ dividend obligation | $ 3,011 | $ 2,815 |
Closed Block (Closed Block Liab
Closed Block (Closed Block Liabilities and Assets Designated to Closed Block; Maximum Future Earnings to be Recognized) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Closed Block liabilities | |||
Future policy benefits | $ 49,281 | $ 49,538 | |
Policyholders’ dividends payable | 932 | 945 | |
Policyholders’ dividend obligation | 4,658 | 4,509 | $ 6,612 |
Policyholders’ account balances | 5,204 | 5,250 | |
Other Closed Block liabilities | 4,262 | 4,171 | |
Total Closed Block liabilities | 64,337 | 64,413 | |
Closed Block assets | |||
Fixed maturities, available-for-sale, at fair value | 38,696 | 37,584 | |
Other trading account assets, at fair value | 283 | 288 | |
Equity securities, available-for-sale, at fair value | 2,572 | 2,726 | |
Commercial mortgage and other loans | 9,437 | 9,770 | |
Policy loans | 4,660 | 4,790 | |
Other long-term investments | 3,020 | 2,921 | |
Short-term investments | 837 | 1,467 | |
Total investments | 59,505 | 59,546 | |
Cash and cash equivalents | 1,310 | 1,036 | |
Accrued investment income | 491 | 506 | |
Other Closed Block assets | 206 | 458 | |
Total Closed Block assets | 61,512 | 61,546 | |
Excess of reported Closed Block liabilities over Closed Block assets | 2,825 | 2,867 | |
Portion of above representing accumulated other comprehensive income: | |||
Net unrealized investment gains (losses) | 2,990 | 2,800 | |
Allocated to policyholder dividend obligation | (3,011) | (2,815) | |
Future earnings to be recognized from Closed Block assets and Closed Block liabilities | $ 2,804 | $ 2,852 |
Closed Block (Information Regar
Closed Block (Information Regarding Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Balance, January 1 | $ 4,509 | $ 6,612 |
Impact from earnings allocable to policyholder dividend obligation | (48) | 137 |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation | 197 | (2,240) |
Balance, December 31 | $ 4,658 | $ 4,509 |
Closed Block (Closed Block Reve
Closed Block (Closed Block Revenues and Benefits and Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Premiums | $ 2,619 | $ 2,668 | $ 2,704 |
Net investment income | 2,597 | 2,709 | 2,809 |
Realized investment gains (losses), net | 433 | 834 | 1,164 |
Other income (loss) | 36 | 23 | 34 |
Total Closed Block revenues | 5,685 | 6,234 | 6,711 |
Benefits and Expenses | |||
Policyholders’ benefits | 3,283 | 3,366 | 3,326 |
Interest credited to policyholders’ account balances | 132 | 135 | 136 |
Dividends to policyholders | 1,941 | 2,130 | 2,635 |
General and administrative expenses | 402 | 423 | 444 |
Total Closed Block benefits and expenses | 5,758 | 6,054 | 6,541 |
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes and discontinued operations | (73) | 180 | 170 |
Income tax expense (benefit) | (120) | 136 | 139 |
Closed Block revenues, net of Closed Block benefits and expenses and income taxes, before discontinued operations | 47 | 44 | 31 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 1 |
Closed Block revenues, net of Closed Block benefits and expenses, income taxes and discontinued operations | $ 47 | $ 44 | $ 32 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) policy in Millions, $ in Millions | Apr. 01, 2015USD ($) | Jan. 02, 2013USD ($)policy | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2016company |
Effects of Reinsurance [Line Items] | ||||||
Major reinsurance companies | company | 4 | |||||
Percentage of reinsurance recoverable | 59.00% | |||||
Domestic Business, per Life | ||||||
Effects of Reinsurance [Line Items] | ||||||
Cumulative quota share | $ 20 | $ 30 | ||||
United Kingdom | Longevity risk associated with pension benefits | ||||||
Effects of Reinsurance [Line Items] | ||||||
Account value | $ 27,000 | |||||
Hartford Life Business | ||||||
Effects of Reinsurance [Line Items] | ||||||
Cumulative quota share | $ 141,000 | |||||
Life insurance policies | policy | 0.7 | |||||
Unaffiliated third party through various Modco | Closed Block division | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsure percent | 73.00% | |||||
Quote Share Reinsurance | Union Hamilton Reinsurance, Ltd. | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsure percent | 50.00% | |||||
Cumulative quota share | $ 2,900 |
Reinsurance (Reinsurance Info)
Reinsurance (Reinsurance Info) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Disclosures [Abstract] | |||
Direct premiums | $ 30,654 | $ 27,996 | $ 29,666 |
Reinsurance assumed | 2,073 | 2,147 | 1,134 |
Reinsurance ceded | (1,763) | (1,622) | (1,507) |
Premiums | 30,964 | 28,521 | 29,293 |
Direct policy charges and fee income | 5,031 | 5,127 | 5,026 |
Reinsurance assumed | 1,243 | 1,179 | 1,425 |
Reinsurance ceded | (368) | (334) | (272) |
Policy charges and fee income | 5,906 | 5,972 | 6,179 |
Direct policyholders’ benefits | 32,957 | 29,242 | 31,012 |
Reinsurance assumed | 3,110 | 3,107 | 2,732 |
Reinsurance ceded | (2,435) | (1,722) | (2,157) |
Policyholders’ benefits | $ 33,632 | $ 30,627 | $ 31,587 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 4,211 | $ 3,704 |
Individual and group annuities | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 658 | 659 |
Life insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 3,388 | 2,885 |
Other reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 165 | 160 |
CIGNA | Individual and group annuities | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 656 | 650 |
Hartford Life Business | Life insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,049 | 2,118 |
Reinsurance Payable | 1,205 | 1,305 |
Union Hamilton Reinsurance, Ltd. | Individual and group annuities | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 0 | $ 7 |
Short-Term and Long-Term Deb111
Short-Term and Long-Term Debt (Short-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short Term Debt [Line Items] | ||
Short-term debt | $ 1,133 | $ 1,216 |
Weighted average maturity of outstanding commercial paper, in days | 21 days | 10 days |
Weighted average interest rate on outstanding short-term debt | 0.43% | 0.16% |
Prudential Financial | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 535 | $ 831 |
Commercial paper | ||
Short Term Debt [Line Items] | ||
Short-term debt | 590 | 464 |
Commercial paper | Prudential Financial | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 65 | $ 80 |
Weighted average interest rate on outstanding short-term debt | 0.63% | 0.40% |
Commercial paper | Prudential Funding, LLC | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 525 | $ 384 |
Current portion of long-term debt | ||
Short Term Debt [Line Items] | ||
Short-term debt | 543 | 752 |
Current portion of long-term debt | Prudential Financial | ||
Short Term Debt [Line Items] | ||
Short-term debt | 470 | 751 |
Portion of commercial paper borrowings due overnight | ||
Short Term Debt [Line Items] | ||
Short-term debt | 292 | 331 |
Daily average commercial paper outstanding | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 1,020 | $ 1,127 |
Short-Term and Long-Term Deb112
Short-Term and Long-Term Debt (Narrative) (Details) | Feb. 18, 2015USD ($) | Dec. 31, 2014 | Dec. 31, 2013USD ($) | Nov. 30, 2013USD ($) | Sep. 30, 2009USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2016JPY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2016JPY (¥) | Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Other long-term investments | [1] | $ 11,283,000,000 | $ 9,986,000,000 | ||||||||||
Federal Home Loan Bank of New York | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Purchase requirement of FHLBNY activity based stock in percent of the outstanding borrowings | 4.50% | 4.50% | |||||||||||
Debt Instrument, Term Upon Certain Events | 90 days | 90 days | |||||||||||
Other long-term investments | $ 78,000,000 | 98,000,000 | |||||||||||
Maximum amount of qualifying assets, percentage collateral to the FHLBNY, prior year-end statutory net admitted assets exclusive of separate account assets | 5.00% | 5.00% | |||||||||||
Maximum amount of pledged asset | $ 5,800,000,000 | ||||||||||||
Estimated maximum borrowing capacity, after taking into account applicable required collateralization levels and required purchases of activity based stock | 5,000,000,000 | ||||||||||||
Pledged qualifying assets with a fair value | 1,200,000,000 | ||||||||||||
Collateralized agreements | 1,000,000,000 | ||||||||||||
Assets not pledged fair value | 5,900,000,000 | ||||||||||||
Outstanding amount of notes | 0 | ||||||||||||
Federal Home Loan Bank of Boston | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Other long-term investments | 10,000,000 | 11,000,000 | |||||||||||
Estimated maximum borrowing capacity, after taking into account applicable required collateralization levels and required purchases of activity based stock | 245,000,000 | ||||||||||||
Outstanding amount of notes | $ 0 | ||||||||||||
Minimum purchase requirement of activity based stock in percent of the outstanding borrowings | 3.00% | 3.00% | |||||||||||
Maximum purchase requirement of activity based stock in percent of the outstanding borrowings | 4.50% | 4.50% | |||||||||||
Prudential Financial | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commercial paper authorized capacity | $ 3,000,000,000 | ||||||||||||
Assets Under Set Off Arrangements | 1,000,000,000 | ||||||||||||
Captive Reinsurance Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Original maturities | 20 years | ||||||||||||
Prudential Funding, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commercial paper authorized capacity | 7,000,000,000 | ||||||||||||
Prudential Financial and Prudential Funding | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from Lines of Credit | 0 | ||||||||||||
Capacity | $ 4,000,000,000 | ||||||||||||
Original Term | 5 years | 5 years | |||||||||||
Prudential Holdings of Japan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from Lines of Credit | ¥ | ¥ 0 | ||||||||||||
Capacity | ¥ | ¥ 100,000,000,000 | ||||||||||||
Original Term | 3 years | 3 years | |||||||||||
Line of Credit Facility, option to extend term | 2 years | 2 years | |||||||||||
Other Subsidiaries | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Capacity | $ 838,000,000 | ||||||||||||
Assets Under Set Off Arrangements | 1,900,000,000 | ||||||||||||
Prudential Legacy Insurance Company [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Original maturities | 20 years | ||||||||||||
Future Debt Instrument Authorized | $ 4,000,000,000 | ||||||||||||
Collateral | Other Subsidiaries | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Assets Under Set Off Arrangements | 800,000,000 | ||||||||||||
Line of Credit and Other Credit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Minimum statutory consolidated net worth | 18,985,000,000 | ||||||||||||
Line of Credit and Other Credit Facilities | Real Estate Separate Account | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from Lines of Credit | 462,000,000 | ||||||||||||
Capacity | $ 765,000,000 | ||||||||||||
Put Option | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Term of contract | 10 years | ||||||||||||
Put Option Premium | 1.777% | 1.777% | |||||||||||
Derivative, Time To Cure | 30 days | ||||||||||||
Minimum Equity Less AOCI For Automatic Exercise | $ 7,000,000,000 | ||||||||||||
Private Placement | Trust | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issued amount | $ 1,500,000,000 | ||||||||||||
Interest Rate | 4.419% | ||||||||||||
Surplus notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount of notes | $ 840,000,000 | ||||||||||||
Surplus notes | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 5.36% | 5.36% | |||||||||||
Surplus notes | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 8.30% | 8.30% | |||||||||||
Exhangeable Surplus Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Exchangeable Debt Threshold Percentage Amount Of Total Consideration Which Consisting Of Cash Other Property Securities Not Listed On Exchange Will Trigger Make Whole Increase | 10.00% | ||||||||||||
Outstanding amount of notes | $ 500,000,000 | ||||||||||||
Interest Rate | 5.36% | ||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 10.1235 | ||||||||||||
Surplus Notes, Principle Amount | $ 1,000 | ||||||||||||
Initial exchange price per share of Common Stock (in dollars per share) | $ / shares | $ 98.78 | ||||||||||||
Exhangeable Surplus Notes | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Exchangeable Debt Common Stock Exchange Rate Prescribed Cash Reduction Value | $ / shares | $ 102.62 | ||||||||||||
Surplus notes subject to set-off arrangements | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 3.52% | 3.52% | |||||||||||
Surplus notes subject to set-off arrangements | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 5.26% | 5.26% | |||||||||||
Surplus notes subject to set-off arrangements | Captive Reinsurance Subsidiary | Regulation XXX | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount of notes | $ 1,750,000,000 | ||||||||||||
Debt Instrument Authorized (up to) | $ 2,000,000,000 | $ 2,000,000,000 | |||||||||||
Original maturities | 10 years | ||||||||||||
Surplus notes subject to set-off arrangements | Captive Reinsurance Subsidiary | Guideline AXXX | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount of notes | 2,650,000,000 | ||||||||||||
Debt Instrument Authorized (up to) | 3,500,000,000 | ||||||||||||
Future Debt Instrument Authorized | 4,500,000,000 | ||||||||||||
Floating Rate Debt Surplus Notes Subject To Set Off Arrangement | Captive Reinsurance Subsidiary | Regulation XXX | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount of notes | $ 1,460,000,000 | ||||||||||||
Debt Instrument Authorized (up to) | $ 1,750,000,000 | ||||||||||||
Debt Instrument, Extension Term | 5 years | ||||||||||||
Original maturities | 10 years | ||||||||||||
Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term Debt, Weighted Average Interest Rate | 5.54% | 5.03% | 5.54% | ||||||||||
Issued amount | $ 500,000,000 | ||||||||||||
Interest Rate | 5.90% | 5.90% | |||||||||||
Debt Instrument, Repurchase Amount | $ 600,000,000 | ||||||||||||
Senior Notes | Other Subsidiaries | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Original maturities | 18 years | 18 years | |||||||||||
Surplus notes | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 1.58% | 1.58% | |||||||||||
Surplus notes | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 2.04% | 2.04% | |||||||||||
Surplus notes | Captive Reinsurance Subsidiary | Guideline AXXX | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount of notes | $ 500,000,000 | ||||||||||||
Medium Term Note | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Payments of Debt Extinguishment Costs | 36,000,000 | ||||||||||||
Outstanding amount of notes | 9,600,000,000 | ||||||||||||
Debt Instrument Authorized (up to) | 20,000,000,000 | ||||||||||||
Increase (decrease) in outstanding debt | (1,300,000,000) | ||||||||||||
Maturities of Senior Debt | 750,000,000 | ||||||||||||
Debt Instrument, Repurchased Face Amount | $ 500,000,000 | ||||||||||||
Retail Medium Term Note | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount of notes | 461,000,000 | ||||||||||||
Debt Instrument Authorized (up to) | 5,000,000,000 | ||||||||||||
Mortgage Debt | Real Estate subsidiaries | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount of notes | 659,000,000 | ||||||||||||
Issued amount | 113,000,000 | ||||||||||||
Increase (decrease) in outstanding debt | 95,000,000 | ||||||||||||
Debt Instrument, Translation Adjustment | 14,000,000 | ||||||||||||
Asset-backed securities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Assets Under Set Off Arrangements | $ 500,000,000 | ||||||||||||
CashDividendsPaidtoPrudentialInsurance | 500,000,000 | ||||||||||||
Derivative Financial Instruments, Liabilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Expense, Debt | 5,000,000 | 7,000,000 | $ 22,000,000 | ||||||||||
Current And Long Term Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Expense, Debt | 1,324,000,000 | 1,328,000,000 | 1,934,000,000 | ||||||||||
Net investment income | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Expense, Debt | 11,000,000 | 11,000,000 | $ 11,000,000 | ||||||||||
Affiliated surplus note subject to set-off arrangement | Captive Reinsurance Subsidiary | Regulation XXX | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument Authorized (up to) | $ 2,700,000,000 | ||||||||||||
Junior subordinated notes | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 5.20% | 5.20% | |||||||||||
Debt Instrument, Deferral Period | 5 years | 5 years | |||||||||||
Junior subordinated notes | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 8.88% | 8.88% | |||||||||||
Debt Instrument, Deferral Period | 10 years | 10 years | |||||||||||
Junior subordinated notes | Prudential Financial | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 5.20% | 5.20% | |||||||||||
Junior subordinated notes | Prudential Financial | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate | 8.88% | 8.88% | |||||||||||
Limited Recourse Note | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issued amount | $ 500,000,000 | ||||||||||||
Junior Subordinated Institutional Notes June 2008 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Issued amount | $ 600,000,000 | ||||||||||||
Interest Rate | 8.88% | 8.88% | |||||||||||
[1] | See Note 5 for details of balances associated with variable interest entities. |
Short-Term and Long-Term Deb113
Short-Term and Long-Term Debt (Credit Facilities) (Details) - 12 months ended Dec. 31, 2016 | USD ($) | JPY (¥) | JPY (¥) |
Prudential Financial and Prudential Funding | |||
CreditFacility [Line Items] | |||
Original Term | 5 years | 5 years | |
Capacity | $ | $ 4,000,000,000 | ||
Amount Outstanding | $ | $ 0 | ||
Prudential Holdings of Japan | |||
CreditFacility [Line Items] | |||
Original Term | 3 years | 3 years | |
Line of Credit Facility, option to extend term | 2 years | 2 years | |
Capacity | ¥ | ¥ 100,000,000,000 | ||
Amount Outstanding | ¥ | ¥ 0 |
Short-Term and Long-Term Deb114
Short-Term and Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | ||||
Long-term debt | [1] | $ 18,041 | $ 19,594 | |
Surplus notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 840 | 841 | ||
Surplus notes subject to set-off arrangements | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 4,403 | 3,850 | ||
Senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 9,236 | 10,208 | ||
Mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 177 | 134 | ||
Surplus notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 499 | 500 | ||
Surplus notes subject to set-off arrangements | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,456 | 1,050 | ||
U.S. dollar-denominated senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,008 | 1,608 | ||
Foreign currency denominated senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 55 | 51 | ||
Mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 409 | 430 | ||
Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 5,817 | 5,811 | ||
Subtotal Long-term debt including assets under set-off arrangements(6) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 23,900 | 24,483 | ||
Less: assets under set-off arrangements | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 5,859 | 4,889 | ||
Fixed rate foreign currency mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 82 | 38 | ||
Floating rate foreign currency mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 221 | 212 | ||
Minimum | Surplus notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.36% | |||
Minimum | Surplus notes subject to set-off arrangements | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.52% | |||
Minimum | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 2.30% | |||
Minimum | Mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.72% | |||
Minimum | Surplus notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.58% | |||
Minimum | Surplus notes subject to set-off arrangements | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.73% | |||
Minimum | U.S. dollar-denominated senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.14% | |||
Minimum | Foreign currency denominated senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.07% | |||
Minimum | Mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 0.65% | |||
Minimum | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.20% | |||
Maximum | Surplus notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 8.30% | |||
Maximum | Surplus notes subject to set-off arrangements | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.26% | |||
Maximum | Senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 11.31% | |||
Maximum | Mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.74% | |||
Maximum | Surplus notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 2.04% | |||
Maximum | Surplus notes subject to set-off arrangements | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 2.25% | |||
Maximum | U.S. dollar-denominated senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 4.39% | |||
Maximum | Foreign currency denominated senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.24% | |||
Maximum | Mortgage debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 2.40% | |||
Maximum | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 8.88% | |||
Prudential Financial | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 15,389 | [1] | 16,354 | |
Prudential Financial | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 5,817 | $ 5,811 | ||
Prudential Financial | Minimum | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.20% | |||
Prudential Financial | Maximum | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 8.88% | |||
[1] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Short-Term and Long-Term Deb115
Short-Term and Long-Term Debt (Contractual Maturities for Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
2,018 | $ 1,330 | ||
2,019 | 1,684 | ||
2,020 | 1,253 | ||
2,021 | 554 | ||
2022 and thereafter | 13,220 | ||
Long-term debt | [1] | $ 18,041 | $ 19,594 |
[1] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Short-Term and Long-Term Deb116
Short-Term and Long-Term Debt (Schedule of Junior Subordinated Notes) (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Junior Subordinated Institutional Notes June 2008 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 600,000,000 |
Interest Rate | 8.88% |
Interest Rate Subsequent to Optional Redemption Date | 5.00% |
Junior Subordinated Institutional Notes August 2012 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,000,000,000 |
Interest Rate | 5.88% |
Interest Rate Subsequent to Optional Redemption Date | 4.18% |
Junior Subordinated Institutional Notes November 2012 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,500,000,000 |
Interest Rate | 5.63% |
Interest Rate Subsequent to Optional Redemption Date | 3.92% |
Junior Subordinated Retail Notes December 2012 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 575,000,000 |
Interest Rate | 5.75% |
Junior Subordinated Retail Notes March 2013 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 710,000,000 |
Interest Rate | 5.70% |
Junior Subordinated Institutional Notes March 2013 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 500,000,000 |
Interest Rate | 5.20% |
Interest Rate Subsequent to Optional Redemption Date | 3.04% |
Junior Subordinated Institutional Notes May 2015 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,000,000,000 |
Interest Rate | 5.38% |
Interest Rate Subsequent to Optional Redemption Date | 3.03% |
Equity (Narrative) (Details)
Equity (Narrative) (Details) $ / shares in Units, ¥ in Billions | Aug. 05, 2016USD ($) | Jan. 02, 2015shares | Jan. 02, 2015USD ($)shares | Dec. 18, 2001$ / sharesshares | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($)shares | Jun. 30, 2015USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2016JPY (¥)shares | Dec. 31, 2015USD ($)shares | Jun. 30, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Jun. 30, 2014USD ($) |
Class of Stock [Line Items] | |||||||||||||
Retained earnings | $ 18,931,000,000 | $ 21,946,000,000 | $ 18,931,000,000 | ||||||||||
Stock repurchased and canceled during period, value | 119,000,000 | 0 | |||||||||||
Cost of Treasury Stock acquired | $ 2,000,000,000 | $ 1,013,000,000 | $ 1,000,000,000 | ||||||||||
Preferred Stock, Shares Outstanding | shares | 0 | 0 | 0 | 0 | |||||||||
Prudential Financial | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Retained earnings | $ 18,931,000,000 | $ 21,946,000,000 | $ 18,931,000,000 | ||||||||||
Cost of Treasury Stock acquired | 2,000,000,000 | 1,664,000,000 | $ 999,000,000 | ||||||||||
Cash and Short Term Investments at Carrying Value Excluding Intercompany Liquidity Account | 4,553,000,000 | ||||||||||||
Prudential Insurance | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Unassigned Surplus | $ 10,176,000,000 | ||||||||||||
Percentage of Statutory Surplus | 10.00% | ||||||||||||
Statutory Surplus Balance | $ 11,290,000,000 | ||||||||||||
Dividend permitted to be paid without prior approval | 5,720,000,000 | ||||||||||||
Statutory Net Income | 5,214,000,000 | 5,253,000,000 | 901,000,000 | ||||||||||
Statutory Capital and Surplus | 11,543,000,000 | $ 11,290,000,000 | 11,543,000,000 | ||||||||||
RBC or solvency margin ratio multiple | 4 | ||||||||||||
Prudential Annuities Life Assurance Corporation | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Percentage of Statutory Surplus | 10.00% | ||||||||||||
Statutory Net Income | $ (2,018,000,000) | 340,000,000 | 393,000,000 | ||||||||||
Statutory Capital and Surplus | $ 482,000,000 | $ 5,718,000,000 | 482,000,000 | ||||||||||
RBC or solvency margin ratio multiple | 4 | ||||||||||||
POJ | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Japan Permitted Percentage of Statutory Earnings w/o approval | 83.00% | ||||||||||||
Japan-Retained Earnings Level- Permitted Percentage of Prior Year Statutory Earnings | 100.00% | ||||||||||||
RBC or solvency margin ratio multiple | 3.50 | ||||||||||||
Gibraltar Life | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Japan Permitted Percentage of Statutory Earnings w/o approval | 83.00% | ||||||||||||
RBC or solvency margin ratio multiple | 3.50 | ||||||||||||
Prudential International Insurance Holdings | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Proceeds from Dividends Received | $ 446,000,000 | ||||||||||||
Prudential Holdings of Japan | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Proceeds from Dividends Received | 842,000,000 | ¥ 98.3 | |||||||||||
Dividends Receivable | 450,000,000 | ||||||||||||
Under June 2014 Board Of Directors Authorization | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of Treasury Stock Shares Acquired | shares | 6,000,000 | 11,700,000 | |||||||||||
Authorized repurchase amount | $ 1,000,000,000 | ||||||||||||
Cost of Treasury Stock acquired | $ 500,000,000 | $ 1,000,000,000 | |||||||||||
Under June 2015 Board Of Directors Authorization | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of Treasury Stock Shares Acquired | shares | 6,100,000 | ||||||||||||
Authorized repurchase amount | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||
Cost of Treasury Stock acquired | $ 500,000,000 | ||||||||||||
Under August 2016 Board of Director Authorization | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Authorized repurchase amount | $ 2,000,000,000 | ||||||||||||
Authorized increase | $ 500,000,000 | ||||||||||||
Under December 2015 Board Of Directors Authorization | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Authorized repurchase amount | $ 1,500,000,000 | 1,500,000,000 | |||||||||||
Under December 2016 Board Of Directors Authorization | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Authorized repurchase amount | 1,250,000,000 | ||||||||||||
Permitted to be paid prior to April 2017 | Prudential Insurance | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividend permitted to be paid without prior approval | 2,702,000,000 | ||||||||||||
Remaining permitted to be paid after April 2017 | Prudential Insurance | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividend permitted to be paid without prior approval | 3,018,000,000 | ||||||||||||
Permitted to be paid after April 2017 | Prudential Insurance | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividend permitted to be paid without prior approval | 2,118,000,000 | ||||||||||||
Permitted to be paid after June 2017 | Prudential Insurance | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividend permitted to be paid without prior approval | $ 900,000,000 | ||||||||||||
Common Stock | Under August 2016 Board of Director Authorization | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of Treasury Stock Shares Acquired | shares | 25,100,000 | 25,100,000 | |||||||||||
Cost of Treasury Stock acquired | $ 2,000,000,000 | ||||||||||||
Common Stock | IPO | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Price Per Share (in dollars per share) | $ / shares | $ 27.50 | ||||||||||||
Common Class B Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of Treasury Stock Shares Acquired | shares | 2,000,000 | 2,000,000 | |||||||||||
Cost of Treasury Stock acquired | 119,000,000 | 651,000,000 | $ 0 | ||||||||||
Common Class B Stock | Private Placement | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Price Per Share (in dollars per share) | $ / shares | $ 87.50 | ||||||||||||
Number of shares sold (in shares) | shares | 2,000,000 | ||||||||||||
Held In Treasury | Common Class B Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock repurchased and canceled during period, value | $ 651,000,000 | $ 770,000,000 | (651,000,000) | ||||||||||
Held In Treasury | Common Class B Stock | Prudential Financial | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock repurchased and canceled during period, value | 651,000,000 | 770,000,000 | |||||||||||
Retained Earnings | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock repurchased and canceled during period, value | (484,000,000) | (119,000,000) | 119,000,000 | 484,000,000 | |||||||||
Retained Earnings | Prudential Financial | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock repurchased and canceled during period, value | (484,000,000) | $ (119,000,000) | |||||||||||
Additional Paid-in Capital | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock repurchased and canceled during period, value | (167,000,000) | $ 167,000,000 | |||||||||||
Additional Paid-in Capital | Prudential Financial | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Stock repurchased and canceled during period, value | $ (167,000,000) | ||||||||||||
Cumulative unrealized investment gains | Prudential Insurance | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Unassigned Surplus | $ 256,000,000 |
Equity (Common Stock Changes in
Equity (Common Stock Changes in Number of Shares Issued, Held in Treasury and Outstanding) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 660,111,339 | ||
Ending Balance | 660,111,339 | 660,111,339 | |
Issued | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 660,100,000 | 660,100,000 | 660,100,000 |
Common Stock issued | 0 | 0 | 0 |
Common Stock acquired | 0 | 0 | 0 |
Stock-based compensation programs | 0 | 0 | 0 |
Ending Balance | 660,100,000 | 660,100,000 | 660,100,000 |
Held In Treasury | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 213,000,000 | 205,300,000 | 199,000,000 |
Common Stock issued | 0 | 0 | 0 |
Common Stock acquired | 25,100,000 | 12,100,000 | 11,600,000 |
Stock-based compensation programs | (7,600,000) | (4,400,000) | (5,300,000) |
Ending Balance | 230,500,000 | 213,000,000 | 205,300,000 |
Outstanding | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 447,100,000 | 454,800,000 | 461,100,000 |
Common Stock issued | 0 | 0 | 0 |
Common Stock acquired | (25,100,000) | (12,100,000) | (11,600,000) |
Stock-based compensation programs | 7,600,000 | 4,400,000 | 5,300,000 |
Ending Balance | 429,600,000 | 447,100,000 | 454,800,000 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 12,285 | ||
Income tax benefit (expense) | (1,305) | $ 2,213 | $ (4,249) |
Ending balance | 14,621 | 12,285 | |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (1,087) | (975) | (113) |
Change in OCI before reclassifications | 199 | (245) | (1,066) |
Amounts reclassified from AOCI | 13 | 17 | (3) |
Income tax benefit (expense) | (98) | 116 | 207 |
Ending balance | (973) | (1,087) | (975) |
Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 15,773 | 19,251 | 10,344 |
Change in OCI before reclassifications | 5,176 | (3,161) | 15,490 |
Amounts reclassified from AOCI | (1,493) | (2,325) | (1,760) |
Income tax benefit (expense) | (1,285) | 2,008 | (4,823) |
Ending balance | 18,171 | 15,773 | 19,251 |
Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (2,401) | (2,226) | (1,550) |
Change in OCI before reclassifications | (468) | (457) | (1,134) |
Amounts reclassified from AOCI | 214 | 193 | 91 |
Income tax benefit (expense) | 78 | 89 | 367 |
Ending balance | (2,577) | (2,401) | (2,226) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 12,285 | 16,050 | 8,681 |
Change in OCI before reclassifications | 4,907 | (3,863) | 13,290 |
Amounts reclassified from AOCI | (1,266) | (2,115) | (1,672) |
Income tax benefit (expense) | (1,305) | 2,213 | (4,249) |
Ending balance | 14,621 | 12,285 | 16,050 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 1,165 | 206 | |
Ending balance | $ 1,316 | $ 1,165 | $ 206 |
Equity (Reclassifications out o
Equity (Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Realized investment gains (losses), net | $ 2,194 | $ 4,025 | $ 1,636 |
Other income (loss) | 443 | 0 | (1,978) |
Foreign Currency Translation Adjustment | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 13 | 17 | (3) |
Net Unrealized Investment Gains (Losses) | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (1,493) | (2,325) | (1,760) |
Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (1,266) | (2,115) | (1,672) |
Reclassification Out Of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (214) | (193) | (91) |
Amortization of defined benefit items: | |||
Prior service cost | 8 | 13 | 20 |
Actuarial gain (loss) | (222) | (206) | (111) |
Reclassification Out Of Accumulated Other Comprehensive Income | Cash flow hedges—Interest Rate | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized investment gains (losses, net | (5) | (7) | (60) |
Reclassification Out Of Accumulated Other Comprehensive Income | Cash flow hedges—Currency/Interest rate | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized investment gains (losses, net | 456 | 247 | 114 |
Reclassification Out Of Accumulated Other Comprehensive Income | Net unrealized investment gains (losses) on available-for-sale securities | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Unrealized investment gains (losses, net | 1,042 | 2,085 | 1,706 |
Reclassification Out Of Accumulated Other Comprehensive Income | Foreign Currency Translation Adjustment | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (13) | (17) | 3 |
Realized investment gains (losses), net | (13) | (8) | 3 |
Other income (loss) | 0 | (9) | 0 |
Reclassification Out Of Accumulated Other Comprehensive Income | Net Unrealized Investment Gains (Losses) | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 1,493 | 2,325 | 1,760 |
Reclassification Out Of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | $ 1,266 | $ 2,115 | $ 1,672 |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains and Losses on Fixed Maturity Securities on which an OTTI loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 12,285 | ||
Ending balance | 14,621 | $ 12,285 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 12,285 | 16,050 | $ 8,681 |
Ending balance | 14,621 | 12,285 | 16,050 |
OTTI | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 234 | 349 | 110 |
Net investment gains (losses) on investments arising during the period | 93 | (3) | 196 |
Reclassification adjustment for (gains) losses included in net income | 1 | (97) | 47 |
Reclassification adjustment for OTTI losses excluded from net income | (16) | (15) | (4) |
Ending balance | 312 | 234 | 349 |
OTTI | DAC, DSI, and VOBA | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 6 | (6) | (5) |
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA | (11) | 12 | (1) |
Ending balance | (5) | 6 | (6) |
OTTI | Future Policy Benefits and Policyholders’ Account Balances | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 14 | 3 | 4 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (20) | 11 | (1) |
Ending balance | (6) | 14 | 3 |
OTTI | Policyholders’ Dividends | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (31) | (32) | 64 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (16) | 1 | (96) |
Ending balance | (47) | (31) | (32) |
OTTI | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (77) | (110) | (60) |
Net investment gains (losses) on investments arising during the period | (31) | 1 | (69) |
Reclassification adjustment for (gains) losses included in net income | 0 | 35 | (16) |
Reclassification adjustment for OTTI losses excluded from net income | 5 | 5 | 1 |
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA | 3 | (4) | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (3) | (4) | 0 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 6 | 0 | 34 |
Ending balance | (97) | (77) | (110) |
OTTI | Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 146 | 204 | 113 |
Net investment gains (losses) on investments arising during the period | 62 | (2) | 127 |
Reclassification adjustment for (gains) losses included in net income | 1 | (62) | 31 |
Reclassification adjustment for OTTI losses excluded from net income | (11) | (10) | (3) |
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA | (8) | 8 | (1) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (23) | 7 | (1) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (10) | 1 | (62) |
Ending balance | $ 157 | $ 146 | $ 204 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 12,285 | ||
Ending balance | 14,621 | $ 12,285 | |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 12,285 | 16,050 | $ 8,681 |
Ending balance | 14,621 | 12,285 | 16,050 |
All Other | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 28,240 | 36,764 | 20,494 |
Net investment gains (losses) on investments arising during the period | 5,658 | (6,311) | 18,073 |
Reclassification adjustment for (gains) losses included in net income | (1,494) | (2,228) | (1,807) |
Reclassification adjustment for OTTI losses excluded from net income | 16 | 15 | 4 |
Ending balance | 32,420 | 28,240 | 36,764 |
All Other | DAC, DSI, and VOBA | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (760) | (1,455) | (719) |
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA | (296) | 695 | (736) |
Ending balance | (1,056) | (760) | (1,455) |
All Other | Future Policy Benefits and Policyholders’ Account Balances | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (1,082) | (1,282) | (679) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (54) | 200 | (603) |
Ending balance | (1,136) | (1,082) | (1,282) |
All Other | Policyholders’ Dividends | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (2,802) | (5,036) | (3,694) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (178) | 2,234 | (1,342) |
Ending balance | (2,980) | (2,802) | (5,036) |
All Other | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (7,969) | (9,944) | (5,171) |
Net investment gains (losses) on investments arising during the period | (1,910) | 2,268 | (6,337) |
Reclassification adjustment for (gains) losses included in net income | 504 | 801 | 632 |
Reclassification adjustment for OTTI losses excluded from net income | (5) | (5) | (1) |
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA | 93 | (240) | 254 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (9) | (67) | 211 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 62 | (782) | 468 |
Ending balance | (9,234) | (7,969) | (9,944) |
All Other | Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 15,627 | 19,047 | 10,231 |
Net investment gains (losses) on investments arising during the period | 3,748 | (4,043) | 11,736 |
Reclassification adjustment for (gains) losses included in net income | (990) | (1,427) | (1,175) |
Reclassification adjustment for OTTI losses excluded from net income | 11 | 10 | 3 |
Impact of net unrealized investment (gains) losses on DAC, DSI, and VOBA | (203) | 455 | (482) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances | (63) | 133 | (392) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (116) | 1,452 | (874) |
Ending balance | $ 18,014 | $ 15,627 | $ 19,047 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) $ / shares in Units, shares in Millions | Jan. 02, 2015shares | Jan. 02, 2015shares | Sep. 30, 2009USD ($)$ / shares | Dec. 31, 2016shares | Dec. 31, 2015shares | Dec. 31, 2014shares |
Debt Instrument [Line Items] | ||||||
Undistributed earnings allocated to participating unvested share-based payment awards, weighted outstanding shares | shares | 5.1 | 4.4 | 4.3 | |||
Exhangeable Surplus Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long Term Debt Gross Of Set Off Arrangements | $ | $ 500,000,000 | |||||
Interest Rate | 5.36% | |||||
Debt Instrument, Convertible, Conversion Ratio | 10.1235 | |||||
Surplus Notes, Principle Amount | $ | $ 1,000 | |||||
Initial exchange price per share of Common Stock (in dollars per share) | $ / shares | $ 98.78 | |||||
Common Class B Stock | ||||||
Debt Instrument [Line Items] | ||||||
Number of shares canceled (in shares) | shares | 2 | 2 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of the Numerators and Denominators of the Basic and Diluted Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Income | ||||||||||||||
Less: Income (loss) attributable to noncontrolling interests | $ (9) | $ (5) | $ (4) | $ (33) | $ (5) | $ (2) | $ (53) | $ (10) | $ (51) | $ (70) | $ (57) | |||
Basic earnings per share | ||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses available to holders of Common Stock (in dollars per share) | $ 0.65 | $ 4.14 | $ 2.06 | $ 2.97 | $ 1.62 | $ 3.22 | $ 3.07 | $ 4.44 | $ 9.85 | [1] | $ 12.37 | [1] | $ 3.23 | [1] |
Diluted earnings per share | ||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses available to holders of Common Stock (in dollars per share) | $ 0.65 | $ 4.07 | $ 2.04 | $ 2.93 | $ 1.60 | $ 3.16 | $ 3.03 | $ 4.37 | $ 9.71 | [1] | $ 12.17 | [1] | $ 3.20 | [1] |
Common Stock | ||||||||||||||
Income | ||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses | $ 4,419 | $ 5,712 | $ 1,579 | |||||||||||
Direct equity adjustment | (27) | |||||||||||||
Less: Income (loss) attributable to noncontrolling interests | 51 | 70 | 57 | |||||||||||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards | 50 | 55 | 14 | |||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses available to holders of Common Stock after direct equity adjustment | 4,318 | 5,587 | 1,481 | |||||||||||
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic | 50 | 55 | 14 | |||||||||||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted | 49 | 54 | 14 | |||||||||||
Exchangeable Surplus Notes | 17 | 17 | 17 | |||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses available to holders of Common Stock after direct equity adjustment | $ 4,336 | $ 5,605 | $ 1,498 | |||||||||||
Weighted Average Shares | ||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses available to holders of Common Stock (in shares) | 438.2 | 451.7 | 458.5 | |||||||||||
Stock options (in shares) | 1.8 | 2.3 | 3 | |||||||||||
Deferred and long-term compensation programs (in shares) | 0.9 | 0.9 | 0.8 | |||||||||||
Exchangeable Surplus Notes (in shares) | 5.7 | 5.5 | 5.4 | |||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses available to holders of Common Stock (in shares) | 446.6 | 460.4 | 467.7 | |||||||||||
Basic earnings per share | ||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses available to holders of Common Stock (in dollars per share) | $ 9.85 | $ 12.37 | $ 3.23 | |||||||||||
Diluted earnings per share | ||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial/Financial Services Businesses available to holders of Common Stock (in dollars per share) | $ 9.71 | $ 12.17 | $ 3.20 | |||||||||||
[1] | For 2016 and 2015, represents consolidated earnings per share of Common Stock. For 2014, represents earnings of the Company’s former Financial Services Businesses per share of Common Stock. See Note 16 for additional information. |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities Excluded From the Computation of Diluted Earnings Per Share) (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 2.7 | 2.4 | 1.9 |
Stock Options | Treasury Stock Method | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 2.7 | 2.4 | 1.9 |
Weighted average exercise price of options excluded from computation of diluted earnings per share (in dollars per share) | $ 83.97 | $ 87.97 | $ 90.30 |
Stock Options | Direct Equity Adjustment | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 0 | 0 | 0 |
Employee And Non Employee Restricted Stock Shares Restricted Stock Units Performance Shares And Performance Units | Direct Equity Adjustment | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 0 | 0 | 0 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Cash used to settle performance units | $ 18 | $ 21 | $ 15 |
Omnibus Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Authorized shares remain available for grant including previously authorized but unissued shares under the Option Plan | 26,157,173 | ||
Employee stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum term of stock option granted (in years) | 10 years | ||
Weighed Average grant date fair value of stock options granted (in dollars per share) | $ 14.81 | $ 18.45 | $ 21.65 |
The total intrinsic value of stock options exercised | $ 120 | $ 49 | $ 97 |
Unrecognized Compensation Cost | $ 4 | ||
Weighted Average Recognition Period (in years) | 1 year 8 months 12 days | ||
Employee Restricted Stock Restricted Units And Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
The fair market value of share awards released | $ 128 | $ 162 | $ 145 |
The number of employee restricted stock units and performance shares expected to vest | 5,994,809 | ||
Unrecognized Compensation Cost | $ 113 | ||
Weighted Average Recognition Period (in years) | 1 year 8 months 9 days | ||
Employee restricted stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 64.12 | $ 78.40 | $ 84.56 |
Employee performance shares and performance units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 104.06 | $ 81.41 | $ 90.46 |
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax Benefit realized for exercises of employee and non-employee stock options | $ 41 | $ 20 | $ 35 |
Employee And Non Employee Restricted Stock Shares Restricted Stock Units Performance Shares And Performance Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax benefit realized upon vesting of restricted stock shares, restricted stock units, and performance shares | $ 46 | $ 58 | $ 51 |
Share-Based Payments (Weighted
Share-Based Payments (Weighted Average Grant Date Assumptions Used in Binomial Optional Valuation Model) (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected volatility | 38.36% | 34.67% | 35.52% |
Expected dividend yield | 3.92% | 3.00% | 2.70% |
Expected term | 5 years 7 months 10 days | 5 years 6 months 26 days | 5 years 7 months 17 days |
Risk-free interest rate | 1.25% | 1.61% | 1.74% |
Share-Based Payments (Compensat
Share-Based Payments (Compensation Cost Recognized and Related Income Tax Benefit for Stock Options, Restricted Stock Shares, Restricted Stock Units, and Performance Share Awards) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | $ 202 | $ 164 | $ 166 |
Income Tax Benefit | 75 | 62 | 60 |
Employee stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 19 | 21 | 25 |
Income Tax Benefit | 7 | 8 | 9 |
Employee restricted stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 126 | 111 | 95 |
Income Tax Benefit | 47 | 42 | 34 |
Employee performance shares and performance units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 57 | 32 | 46 |
Income Tax Benefit | $ 21 | $ 12 | $ 17 |
Share-Based Payments (Summary o
Share-Based Payments (Summary of the Status of the Company's Employee Stock Option Grants) (Details) - Employee stock options | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Shares | |
Outstanding (in shares) | shares | 10,926,146 |
Granted (in shares) | shares | 1,219,714 |
Exercised (in shares) | shares | (4,986,622) |
Forfeited (in shares) | shares | (49,299) |
Expired (in shares) | shares | (371,137) |
Outstanding (in shares) | shares | 6,738,802 |
Vested and expected to vest (in shares) | shares | 6,693,811 |
Exercisable (in shares) | shares | 4,720,572 |
Weighted Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 66.18 |
Granted (in dollars per share) | $ / shares | 63.73 |
Exercised (in dollars per share) | $ / shares | 68.03 |
Forfeited (in dollars per share) | $ / shares | 73.24 |
Expired (in dollars per share) | $ / shares | 80.48 |
Outstanding (in dollars per share) | $ / shares | 63.53 |
Vested and expected to vest (in dollars per share) | $ / shares | 63.51 |
Exercisable (in dollars per share) | $ / shares | $ 60.66 |
Share-Based Payments (Weight130
Share-Based Payments (Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value of Stock Options Outstanding, Vested and Expected to Vest, and Exercisable) (Details) - Employee stock options $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Weighted Average Remaining Contractual Term | 5 years 7 months 21 days |
Vested and expected to vest, Weighted Average Remaining Contractual Term | 5 years 7 months 13 days |
Exercisable, Weighted Average Remaining Contractual Term | 4 years 6 months |
Outstanding, Aggregate Intrinsic Value | $ 273 |
Vested and Expected to Vest, Aggregate Intrinsic Value | 271 |
Exercisable, Aggregate Intrinsic Value | $ 205 |
Share-Based Payments (Summar131
Share-Based Payments (Summary of the Company's Employee Restricted Stock Shares, Restricted Stock Units and Performance Shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Grant Date Fair Value | |||
Number of shares to be awarded at the end of each performance period, lower limit | 0.00% | 0.00% | 0.00% |
Number of shares to be awarded at the end of each performance period, upper limit | 125.00% | 125.00% | 125.00% |
Employee restricted stock units | |||
Restricted Awards | |||
Restricted (in shares) | 4,354,286 | ||
Granted (in shares) | 2,187,653 | ||
Forfeited (in shares) | (110,815) | ||
Released (in shares) | (1,451,417) | ||
Restricted (in shares) | 4,979,707 | 4,354,286 | |
Weighted Average Grant Date Fair Value | |||
Restricted (in dollars per share) | $ 73.50 | ||
Granted (in dollars per share) | 64.12 | $ 78.40 | $ 84.56 |
Forfeited (in dollars per share) | 72.13 | ||
Released (in dollars per share) | 58.54 | ||
Restricted (in dollars per share) | $ 73.77 | $ 73.50 | |
Employee performance shares and performance units | |||
Restricted Awards | |||
Restricted (in shares) | 1,390,497 | ||
Granted (in shares) | 694,501 | ||
Forfeited (in shares) | (41,676) | ||
Performance adjustment (in shares) | 188,838 | ||
Released (in shares) | (568,487) | ||
Restricted (in shares) | 1,663,673 | 1,390,497 | |
Weighted Average Grant Date Fair Value | |||
Restricted (in dollars per share) | $ 81.41 | ||
Granted (in dollars per share) | 104.06 | $ 81.41 | $ 90.46 |
Forfeited (in dollars per share) | 76.73 | ||
Performance adjustment (in dollars per share) | 63.59 | ||
Released (in dollars per share) | 63.71 | ||
Restricted (in dollars per share) | $ 104.06 | $ 81.41 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)year | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of annual salary Contributed by the Company for employees (401(k) plans) | 4.00% | |||
General And Administrative Expense | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Cost Recognized | $ 72 | $ 64 | $ 60 | |
Other liabilities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net accumulated liability for non-retiree postemployment benefits provided to former or inactive employee | 20 | 48 | ||
Rabbi Trust | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | 1,227 | 1,175 | ||
Discretionary contributions from the Company to defined benefit or other plans | 0 | 95 | ||
Fair value of plan assets | 829 | 722 | ||
Rabbi Trust | Discontinued Operations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | 81 | 78 | ||
Fair value of plan assets | $ 115 | $ 118 | ||
Foreign Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension benefits for foreign plans percentage of the ending benefit obligation | 14.00% | 13.00% | ||
Defined Benefit Plan Weighted Average Asset Allocations | 5.00% | 5.00% | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | $ 12,917 | $ 12,221 | 12,545 | |
Fair value of plan assets | $ 12,861 | $ 12,541 | $ 13,028 | |
Defined Benefit Plan Weighted Average Asset Allocations | 100.00% | 100.00% | ||
Bond Yield rate used in determining Discount rate | 4.15% | 4.50% | 4.10% | 4.95% |
Expected long-term rate of return on plan assets | 6.25% | 6.25% | 6.25% | 6.25% |
Defined Benefit Plans Estimated Future Employer Contributions in Next Fiscal Year | $ 150 | |||
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | 2,084 | $ 2,159 | $ 2,233 | |
Fair value of plan assets | $ 1,531 | $ 1,584 | $ 1,717 | |
Defined Benefit Plan Weighted Average Asset Allocations | 100.00% | 100.00% | ||
Bond Yield rate used in determining Discount rate | 4.05% | 4.35% | 3.95% | 4.75% |
Expected long-term rate of return on plan assets | 7.00% | 7.00% | 7.00% | 7.00% |
Defined Benefit Plans Estimated Future Employer Contributions in Next Fiscal Year | $ 10 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Bond Yield rate used in determining Discount rate | 90.00% | |||
Maximum | Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred Compensation Arrangement with Individual, Requisite Age | year | 55 | |||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 20 years | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Bond Yield rate used in determining Discount rate | 10.00% | |||
Minimum | Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred Compensation Arrangement with Individual, Requisite Age | year | 50 | |||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 10 years | |||
Annuity Contracts | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | $ 19 | $ 20 | ||
Private Equity Funds and Real Estate Funds | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fund expected term | 15 years | |||
Liquidation extension period (up to) | 2 years | |||
Private Equity Funds and Real Estate Funds | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fund expected term | 7 years | |||
Hedge Fund | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Lock-up restriction period | 2 years | |||
Period for written notice | 185 days | |||
Percent of fund's net assets | 25.00% | |||
Hedge Fund | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Lock-up restriction period | 1 year | |||
Period for written notice | 65 days | |||
Percent of fund's net assets | 20.00% |
Employee Benefit Plans (Status
Employee Benefit Plans (Status of Prepaid Benefits Costs and Accrued Benefit Liabilities Included in Other Assets and Other Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at the beginning of period | $ (12,221) | $ (12,545) | |
Service cost | (253) | (244) | $ (234) |
Interest cost | (498) | (469) | (481) |
Plan participants’ contributions | 0 | 0 | |
Medicare Part D subsidy receipts | 0 | 0 | |
Amendments | (3) | 0 | |
Actuarial gains (losses), net | (602) | 335 | |
Settlements | 24 | 22 | |
Special termination benefits | (2) | (4) | |
Benefits paid | 681 | 632 | |
Foreign currency changes and other | (43) | 52 | |
Benefit obligation at end of period | (12,917) | (12,221) | (12,545) |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 12,541 | 13,028 | |
Actual return on plan assets | 883 | 35 | |
Employer contributions | 187 | 162 | |
Plan participants’ contributions | 0 | 0 | |
Disbursement for settlements | (24) | (22) | |
Benefits paid | (681) | (632) | |
Foreign currency changes and other | (45) | (30) | |
Fair value of plan assets at end of period | 12,861 | 12,541 | 13,028 |
Funded status at end of period | (56) | 320 | |
Amounts recognized in the Statements of Financial Position | |||
Prepaid benefit cost | 2,538 | 2,687 | |
Accrued benefit liability | (2,594) | (2,367) | |
Net amount recognized | (56) | 320 | |
Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost: | |||
Transition obligation | 0 | 0 | |
Prior service cost | (25) | (33) | |
Net actuarial loss | 3,481 | 3,173 | |
Net amount not recognized | 3,456 | 3,140 | |
Accumulated benefit obligation | (12,300) | (11,607) | |
Other Postretirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at the beginning of period | (2,159) | (2,233) | |
Service cost | (19) | (20) | (17) |
Interest cost | (91) | (86) | (96) |
Plan participants’ contributions | (31) | (29) | |
Medicare Part D subsidy receipts | (10) | (12) | |
Amendments | 0 | (2) | |
Actuarial gains (losses), net | 46 | 43 | |
Settlements | 0 | 0 | |
Special termination benefits | 0 | 0 | |
Benefits paid | 181 | 176 | |
Foreign currency changes and other | (1) | 4 | |
Benefit obligation at end of period | (2,084) | (2,159) | (2,233) |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 1,584 | 1,717 | |
Actual return on plan assets | 82 | 9 | |
Employer contributions | 15 | 5 | |
Plan participants’ contributions | 31 | 29 | |
Disbursement for settlements | 0 | 0 | |
Benefits paid | (181) | (176) | |
Foreign currency changes and other | 0 | 0 | |
Fair value of plan assets at end of period | 1,531 | 1,584 | $ 1,717 |
Funded status at end of period | (553) | (575) | |
Amounts recognized in the Statements of Financial Position | |||
Prepaid benefit cost | 0 | 0 | |
Accrued benefit liability | (553) | (575) | |
Net amount recognized | (553) | (575) | |
Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost: | |||
Transition obligation | 0 | 0 | |
Prior service cost | 1 | (1) | |
Net actuarial loss | 557 | 621 | |
Net amount not recognized | 558 | 620 | |
Accumulated benefit obligation | $ (2,084) | $ (2,159) |
Employee Benefit Plans (Informa
Employee Benefit Plans (Information for Pension Plans with a Projected and Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan, Plans with Benefit Obligations in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 2,638 | $ 2,403 |
Fair value of plan assets | 44 | 36 |
Information On Pension Plans With Accumulated Benefit Obligation In Excess Of Plan Assets [Abstract] | ||
Accumulated benefit obligation | 2,426 | 2,154 |
Fair value of plan assets | $ 4 | $ 5 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost Included in General and Administrative Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 253 | $ 244 | $ 234 |
Interest cost | 498 | 469 | 481 |
Expected return on plan assets | (754) | (775) | (712) |
Amortization of transition obligation | 0 | 0 | 0 |
Amortization of prior service cost | (6) | (8) | (10) |
Amortization of actuarial (gain) loss, net | 181 | 168 | 86 |
Settlements | 7 | 5 | 10 |
Special termination benefits | 2 | 4 | 4 |
Net periodic (benefit) cost | 181 | 107 | 93 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 19 | 20 | 17 |
Interest cost | 91 | 86 | 96 |
Expected return on plan assets | (105) | (115) | (116) |
Amortization of transition obligation | 0 | 0 | 0 |
Amortization of prior service cost | (2) | (5) | (10) |
Amortization of actuarial (gain) loss, net | 41 | 38 | 25 |
Settlements | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 |
Net periodic (benefit) cost | $ 44 | $ 24 | $ 12 |
Employee Benefit Plans (Amounts
Employee Benefit Plans (Amounts Recorded in Accumulated Other Comprehensive Income not yet Recognized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | $ 3,140 | ||
Deferrals for the period | 187 | ||
Impact of foreign currency changes and other | 43 | $ (52) | |
Balance, end of period | 3,456 | 3,140 | |
Pension Benefits | Transition Obligation | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 0 | 0 | $ 0 |
Amortization for the period | 0 | 0 | 0 |
Deferrals for the period | 0 | 0 | 0 |
Impact of foreign currency changes and other | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 |
Pension Benefits | Prior Service Cost | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | (33) | (42) | (56) |
Amortization for the period | 6 | 8 | 10 |
Deferrals for the period | 3 | 0 | (1) |
Impact of foreign currency changes and other | (1) | 1 | 5 |
Balance, end of period | (25) | (33) | (42) |
Pension Benefits | Net Actuarial (Gain) Loss | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 3,173 | 2,946 | 2,065 |
Amortization for the period | (181) | (168) | (86) |
Deferrals for the period | 473 | 405 | 1,001 |
Impact of foreign currency changes and other | 16 | (10) | (34) |
Balance, end of period | 3,481 | 3,173 | 2,946 |
Other Postretirement Benefits | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 620 | ||
Deferrals for the period | 36 | ||
Impact of foreign currency changes and other | 1 | (4) | |
Balance, end of period | 558 | 620 | |
Other Postretirement Benefits | Transition Obligation | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 0 | 0 | 0 |
Amortization for the period | 0 | 0 | 0 |
Deferrals for the period | 0 | 0 | 0 |
Impact of foreign currency changes and other | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 |
Other Postretirement Benefits | Prior Service Cost | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | (1) | (8) | (19) |
Amortization for the period | 2 | 5 | 10 |
Deferrals for the period | 0 | 2 | 0 |
Impact of foreign currency changes and other | 0 | 0 | 1 |
Balance, end of period | 1 | (1) | (8) |
Other Postretirement Benefits | Net Actuarial (Gain) Loss | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 621 | 600 | 463 |
Amortization for the period | (41) | (38) | (25) |
Deferrals for the period | (23) | 63 | 165 |
Impact of foreign currency changes and other | 0 | (4) | (3) |
Balance, end of period | $ 557 | $ 621 | $ 600 |
Employee Benefit Plans (Amou137
Employee Benefit Plans (Amounts Included in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost in Subsequent Year) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost | $ (4) |
Amortization of actuarial (gain) loss, net | 191 |
Total | 187 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost | 0 |
Amortization of actuarial (gain) loss, net | 36 |
Total | $ 36 |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions Related to Calculation of Domestic Benefit Obligation (End of Period) and Determination of Net Periodic (Benefit) Cost (Beginning of Period)) (Details) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 10.00% | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 90.00% | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.15% | 4.50% | 4.10% | 4.95% |
Rate of increase in compensation levels | 4.50% | 4.50% | 4.50% | 4.50% |
Expected return on plan assets | 6.25% | 6.25% | 6.25% | 6.25% |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.05% | 4.35% | 3.95% | 4.75% |
Expected return on plan assets | 7.00% | 7.00% | 7.00% | 7.00% |
Health care cost trend rates | 6.60% | 7.00% | 6.66% | 7.08% |
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% | 5.00% |
Employee Benefit Plans (Effects
Employee Benefit Plans (Effects of a One-Percentage Point Increase and Decrease in Assumed Health Care Cost Trend Rates) (Details) - Other Postretirement Benefits $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Increase in total service and interest costs | $ 7 |
Increase in postretirement benefit obligation | 158 |
Decrease in total service and interest costs | 6 |
Decrease in postretirement benefit obligation | $ 106 |
Employee Benefit Plans (Asset A
Employee Benefit Plans (Asset Allocation Targets Reflecting a Percentage of Total Assets by Asset Class) (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Pension Benefits | Equity securities | U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 2.00% |
Maximum | 16.00% |
Pension Benefits | Equity securities | International | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 2.00% |
Maximum | 16.00% |
Pension Benefits | Fixed Maturities | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 50.00% |
Maximum | 68.00% |
Pension Benefits | Short-term Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 0.00% |
Maximum | 15.00% |
Pension Benefits | Real Estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 2.00% |
Maximum | 16.00% |
Pension Benefits | Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 0.00% |
Maximum | 16.00% |
Other Postretirement Benefits | Equity securities | U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 27.00% |
Maximum | 60.00% |
Other Postretirement Benefits | Equity securities | International | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 2.00% |
Maximum | 23.00% |
Other Postretirement Benefits | Fixed Maturities | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 4.00% |
Maximum | 50.00% |
Other Postretirement Benefits | Short-term Investments | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 0.00% |
Maximum | 42.00% |
Other Postretirement Benefits | Real Estate | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 0.00% |
Maximum | 0.00% |
Other Postretirement Benefits | Other | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum | 0.00% |
Maximum | 0.00% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension and Post Retirement Asset Allocations in Accordance with Investment Guidelines) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Notional | $ 366,091 | $ 427,550 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 12,861 | 12,541 | $ 13,028 |
Net Value of investment of securities lending collateral invested in short-term bond | 627 | 163 | |
Liability for securities lending collateral | 627 | 163 | |
Pension Benefits | Equity securities | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 538 | 721 | |
Pension Benefits | Equity securities | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 537 | 600 | |
Pension Benefits | Equity securities | Pooled separate accounts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 472 | 636 | |
Pension Benefits | Equity securities | Pooled separate accounts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 269 | 321 | |
Pension Benefits | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 66 | 85 | |
Pension Benefits | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 219 | 229 | |
Pension Benefits | Equity securities | United Kingdom insurance pooled funds | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 49 | 50 | |
Pension Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 8,747 | 8,456 | |
Pension Benefits | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,283 | 1,218 | |
Pension Benefits | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 441 | 347 | |
Pension Benefits | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 1 | |
Pension Benefits | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 993 | 661 | |
Pension Benefits | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 521 | 582 | |
Pension Benefits | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 14 | 14 | |
Pension Benefits | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 305 | 293 | |
Pension Benefits | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,039 | 4,417 | |
Pension Benefits | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7 | 8 | |
Pension Benefits | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 506 | 109 | |
Pension Benefits | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 9 | (5) | |
Pension Benefits | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 39 | 31 | |
Pension Benefits | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 589 | 780 | |
Pension Benefits | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 56 | 39 | |
Pension Benefits | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 55 | 39 | |
Pension Benefits | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 0 | |
Pension Benefits | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,037 | 954 | |
Pension Benefits | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 666 | 607 | |
Pension Benefits | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 371 | 347 | |
Pension Benefits | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Notional | 2,595 | 2,073 | |
Pension Benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,946 | 1,771 | |
Pension Benefits | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 551 | 481 | |
Pension Benefits | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,395 | 1,290 | |
Pension Benefits | NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2,317 | 2,118 | |
Pension Benefits | NAV Practical Expedient | Equity securities | Pooled separate accounts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Equity securities | Pooled separate accounts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Equity securities | United Kingdom insurance pooled funds | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 371 | 347 | |
Pension Benefits | NAV Practical Expedient | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 551 | 481 | |
Pension Benefits | NAV Practical Expedient | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,395 | 1,290 | |
Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 533 | 685 | |
Pension Benefits | Level 1 | Equity securities | Pooled separate accounts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Equity securities | Pooled separate accounts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Equity securities | United Kingdom insurance pooled funds | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 533 | 685 | |
Pension Benefits | Level 1 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 9,260 | 9,003 | |
Pension Benefits | Level 2 | Equity securities | Pooled separate accounts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 472 | 636 | |
Pension Benefits | Level 2 | Equity securities | Pooled separate accounts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 269 | 321 | |
Pension Benefits | Level 2 | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 66 | 85 | |
Pension Benefits | Level 2 | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 219 | 229 | |
Pension Benefits | Level 2 | Equity securities | United Kingdom insurance pooled funds | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 49 | 50 | |
Pension Benefits | Level 2 | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,247 | 1,183 | |
Pension Benefits | Level 2 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 441 | 347 | |
Pension Benefits | Level 2 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 1 | |
Pension Benefits | Level 2 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 993 | 661 | |
Pension Benefits | Level 2 | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 521 | 582 | |
Pension Benefits | Level 2 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 14 | 14 | |
Pension Benefits | Level 2 | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 305 | 293 | |
Pension Benefits | Level 2 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,039 | 4,417 | |
Pension Benefits | Level 2 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7 | 8 | |
Pension Benefits | Level 2 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 506 | 109 | |
Pension Benefits | Level 2 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 9 | (5) | |
Pension Benefits | Level 2 | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 39 | 31 | |
Pension Benefits | Level 2 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7 | 2 | |
Pension Benefits | Level 2 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 55 | 39 | |
Pension Benefits | Level 2 | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 0 | |
Pension Benefits | Level 2 | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 751 | 735 | |
Pension Benefits | Level 3 | Equity securities | Pooled separate accounts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Equity securities | Pooled separate accounts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Equity securities | United Kingdom insurance pooled funds | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 36 | 35 | |
Pension Benefits | Level 3 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 49 | 93 | |
Pension Benefits | Level 3 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 666 | 607 | |
Pension Benefits | Level 3 | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,531 | 1,584 | $ 1,717 |
Net Value of investment of securities lending collateral invested in short-term bond | 2 | ||
Liability for securities lending collateral | 2 | ||
Other Postretirement Benefits | Equity securities | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 676 | 761 | |
Other Postretirement Benefits | Equity securities | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 186 | 186 | |
Other Postretirement Benefits | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 170 | 169 | |
Other Postretirement Benefits | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 96 | 97 | |
Other Postretirement Benefits | Equity securities | Guaranteed investment contract | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 506 | 592 | |
Other Postretirement Benefits | Equity securities | Guaranteed investment contract | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 90 | 89 | |
Other Postretirement Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 555 | 511 | |
Other Postretirement Benefits | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 59 | 67 | |
Other Postretirement Benefits | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 4 | |
Other Postretirement Benefits | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 78 | 80 | |
Other Postretirement Benefits | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2 | 5 | |
Other Postretirement Benefits | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 176 | 204 | |
Other Postretirement Benefits | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 49 | 53 | |
Other Postretirement Benefits | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 27 | 30 | |
Other Postretirement Benefits | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 0 | |
Other Postretirement Benefits | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 157 | 59 | |
Other Postretirement Benefits | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 6 | 9 | |
Other Postretirement Benefits | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 114 | 126 | |
Other Postretirement Benefits | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 114 | 126 | |
Other Postretirement Benefits | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Notional | 271 | 380 | |
Other Postretirement Benefits | NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Equity securities | Guaranteed investment contract | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Equity securities | Guaranteed investment contract | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 115 | 132 | |
Other Postretirement Benefits | Level 1 | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Equity securities | Guaranteed investment contract | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Equity securities | Guaranteed investment contract | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 6 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 114 | 126 | |
Other Postretirement Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,405 | 1,449 | |
Other Postretirement Benefits | Level 2 | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 170 | 169 | |
Other Postretirement Benefits | Level 2 | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 96 | 97 | |
Other Postretirement Benefits | Level 2 | Equity securities | Guaranteed investment contract | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 506 | 592 | |
Other Postretirement Benefits | Level 2 | Equity securities | Guaranteed investment contract | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 90 | 89 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 59 | 67 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 4 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 78 | 80 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2 | 5 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 176 | 204 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 48 | 53 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 22 | 30 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 0 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 157 | 59 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 2 | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 11 | 3 | |
Other Postretirement Benefits | Level 3 | Equity securities | Common/collective trusts | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Equity securities | Common/collective trusts | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Equity securities | Guaranteed investment contract | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Equity securities | Guaranteed investment contract | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 5 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Guaranteed investment contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 5 | 3 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 0 | $ 0 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Fair Value of Level 3 Pension and Post Retirement Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | Fixed Maturities | Pooled Separate Accounts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | $ 35 | $ 35 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 1 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair Value, end of period | 36 | 35 |
Pension Benefits | Fixed Maturities | Corporate Debt-Corporate Bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 0 | 14 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | |
Relating to assets sold during the period | 0 | |
Purchases, sales and settlements | 0 | |
Transfers in and/or out of Level 3 | (14) | |
Fair Value, end of period | 0 | |
Pension Benefits | Fixed Maturities | Other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 93 | 73 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | (44) | 20 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair Value, end of period | 49 | 93 |
Pension Benefits | Real Estate | Pooled Separate Accounts | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 607 | 465 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 61 | 81 |
Relating to assets sold during the period | 6 | 2 |
Purchases, sales and settlements | (8) | 59 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair Value, end of period | 666 | 607 |
Other Postretirement Benefits | Fixed Maturities | Corporate Debt-Corporate Bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 0 | 1 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | 1 | 0 |
Transfers in and/or out of Level 3 | 0 | (1) |
Fair Value, end of period | 1 | 0 |
Other Postretirement Benefits | Fixed Maturities | Asset-Backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 0 | 1 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | 5 | 0 |
Transfers in and/or out of Level 3 | 0 | (1) |
Fair Value, end of period | 5 | 0 |
Other Postretirement Benefits | Fixed Maturities | Other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 3 | (5) |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | 2 | 8 |
Transfers in and/or out of Level 3 | 0 | 0 |
Fair Value, end of period | $ 5 | $ 3 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Pension and Postretirement Plan Asset Allocation) (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 100.00% | 100.00% |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 100.00% | 100.00% |
Equity securities, available-for-sale | U.S. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 4.00% | 6.00% |
Equity securities, available-for-sale | U.S. | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 44.00% | 48.00% |
Equity securities, available-for-sale | International | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 4.00% | 5.00% |
Equity securities, available-for-sale | International | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 12.00% | 12.00% |
Fixed Maturities | U.S. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 68.00% | 67.00% |
Fixed Maturities | U.S. | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 36.00% | 32.00% |
Short-term investments | U.S. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 0.00% | 0.00% |
Short-term investments | U.S. | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 8.00% | 8.00% |
Real Estate | U.S. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 8.00% | 8.00% |
Real Estate | U.S. | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 0.00% | 0.00% |
Other | U.S. | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 16.00% | 14.00% |
Other | U.S. | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 0.00% | 0.00% |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Benefit Payments for Company's Pension and Postretirement Plans as well as Expected Medicare Part D Subsidy Receipts Related to Postretirement Plan) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 707 |
2,018 | 740 |
2,019 | 762 |
2,020 | 787 |
2,021 | 812 |
2022-2026 | 4,384 |
Total | 8,192 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 167 |
2,018 | 171 |
2,019 | 173 |
2,020 | 173 |
2,021 | 173 |
2022-2026 | 835 |
Total | 1,692 |
Other Postretirement Benefits | Other Postretirement Benefits– Medicare Part D Subsidy Receipts | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 10 |
2,018 | 11 |
2,019 | 11 |
2,020 | 11 |
2,021 | 12 |
2022-2026 | 63 |
Total | $ 118 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current tax expense (benefit) | |||
U.S. | $ 31 | $ 738 | $ (80) |
State and local | 9 | 3 | (7) |
Foreign | 595 | 622 | 463 |
Total | 635 | 1,363 | 376 |
Deferred tax expense (benefit) | |||
U.S. | 132 | 585 | 880 |
State and local | 5 | 4 | 12 |
Foreign | 563 | 120 | (919) |
Total | 700 | 709 | (27) |
Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures | 1,335 | 2,072 | 349 |
Income tax expense on equity in earnings of operating joint ventures | 11 | (1) | (2) |
Income tax expense on discontinued operations | 0 | 0 | 6 |
Income tax expense (benefit) reported in equity related to: | |||
Other comprehensive income | 1,305 | (2,213) | 4,249 |
Stock-based compensation programs | (30) | (22) | (29) |
Total income taxes | $ 2,621 | $ (164) | $ 4,573 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||||
Hedging IDD | $ 475 | |||||
Tax rate | 35.00% | |||||
Change in repatriation assertion | $ 108 | $ 0 | $ (3) | 32 | ||
Tax expense | $ 734 | 734 | ||||
Tax expense (benefit) | $ 32 | $ (3) | ||||
Income (loss) from domestic operations | 1,242 | 4,235 | 3,487 | |||
Income (loss) from foreign operations | $ 4,463 | $ 3,534 | $ (1,728) |
Income Taxes (Reconciliation To
Income Taxes (Reconciliation To Effective Rate) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Expected federal income tax expense (benefit) | $ 1,997 | $ 2,719 | $ 616 | |
Non-taxable investment income | (352) | (341) | (381) | |
Foreign taxes at other than U.S. rate | (172) | (51) | 146 | |
Low-income housing and other tax credits | (118) | (116) | (127) | |
Reversal of acquisition opening balance sheet deferred tax items | 0 | 0 | 53 | |
Change in repatriation assertion | $ 108 | 0 | (3) | 32 |
Change in tax law: active financing exception | 0 | (108) | 0 | |
Other | (20) | (28) | 10 | |
Total income tax expense (benefit) on continuing operations before equity in earnings of operating joint ventures | $ 1,335 | $ 2,072 | $ 349 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Insurance reserves | $ 1,856 | $ 2,878 |
Policyholders’ dividends | 1,849 | 1,815 |
Net operating and capital loss carryforwards | 190 | 181 |
Employee benefits | 789 | 628 |
Investments | 1,166 | 530 |
Deferred tax assets before valuation allowance | 5,850 | 6,032 |
Valuation allowance | (163) | (133) |
Deferred tax assets after valuation allowance | 5,687 | 5,899 |
Deferred tax liabilities | ||
Net unrealized investment gains | 10,551 | 9,167 |
Deferred policy acquisition costs | 4,443 | 4,179 |
Unremitted foreign earnings | 380 | 290 |
Value of business acquired | 715 | 903 |
Other | 393 | 291 |
Deferred tax liabilities | 16,482 | 14,830 |
Net deferred tax liability | $ (10,795) | $ (8,931) |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Asset Valuation [Line Items] | ||
Valuation allowance | $ 163 | $ 133 |
State and local | ||
Deferred Tax Asset Valuation [Line Items] | ||
Valuation allowance | 138 | 98 |
Foreign operations | ||
Deferred Tax Asset Valuation [Line Items] | ||
Valuation allowance | $ 25 | $ 35 |
Income Taxes (Operating and Cap
Income Taxes (Operating and Capital Loss Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Loss Carryforwards [Line Items] | ||
General business credits | $ 0 | $ 0 |
Alternative minimum tax credits | 66 | 85 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating and capital loss carryforwards | 0 | 0 |
State and local | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating and capital loss carryforwards | 4,201 | 3,687 |
Foreign operations | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 45 | $ 65 |
Foreign operations | Operating Loss Expiring Between 2019 And 2023 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 21 | |
Foreign operations | Net Operating Loss Unlimited Carryforward | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 24 |
Income Taxes (Undistributed Ear
Income Taxes (Undistributed Earnings) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment) | $ 4,231 | $ 3,215 | $ 2,396 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Amount | $ 6 | $ 6 | $ 11 |
Increases in unrecognized tax benefits—prior years | 10 | 0 | 0 |
(Decreases) in unrecognized tax benefits—prior years | 0 | 0 | 0 |
Increases in unrecognized tax benefits—current year | 10 | 0 | 0 |
(Decreases) in unrecognized tax benefits—current year | 0 | 0 | 0 |
Settlements with taxing authorities | 0 | 0 | (5) |
Amount | 26 | 6 | 6 |
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate | $ 26 | $ 6 | $ 6 |
Income Taxes (Amounts Recognize
Income Taxes (Amounts Recognized for Tax Related Interest and Penalties) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Interest and penalties recognized in the consolidated statements of operations | $ 1 | $ 0 | $ 2 |
Interest and penalties recognized in liabilities in the consolidated statements of financial position | $ 5 | $ 4 |
Fair Value of Assets and Lia154
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | [1] | $ 321,419 | $ 290,323 |
Equity securities, available-for-sale | 9,748 | 9,274 | |
Commercial mortgage and other loans | [1] | 52,779 | 50,559 |
Other long-term investments | [1] | 11,283 | 9,986 |
Short-term investments | 7,508 | 8,105 | |
Other assets | [1],[2] | 14,780 | 14,225 |
Separate account assets | 287,636 | 285,570 | |
TOTAL ASSETS | 783,962 | 757,255 | |
Future policy benefits | 240,908 | 224,384 | |
Other liabilities | [1] | 14,739 | 13,517 |
Total liabilities | 737,874 | 715,332 | |
Netting | (11,716) | (11,457) | |
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 8,252 | 8,408 | |
Future policy benefits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 8,200 | 8,400 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 1,200 | 700 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 9,400 | 9,100 | |
U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Under Set Off Arrangements | 1,456 | 1,039 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 321,419 | 290,323 | |
Trading account assets | 27,454 | 34,980 | |
Equity securities, available-for-sale | 9,748 | 9,274 | |
Commercial mortgage and other loans | 519 | 274 | |
Other long-term investments | 149 | 182 | |
Short-term investments | 7,182 | 7,487 | |
Cash equivalents | 8,306 | 14,208 | |
Other assets | 0 | 16 | |
Subtotal excluding separate account assets | 374,777 | 356,744 | |
Separate account assets | 262,017 | 259,909 | |
TOTAL ASSETS | 636,794 | 616,653 | |
Future policy benefits | 8,238 | 8,434 | |
Other liabilities | 369 | 33 | |
Notes issued by consolidated VIEs | 1,839 | 8,597 | |
Total liabilities | 10,446 | 17,064 | |
Asset Netting | (11,716) | (11,457) | |
Liability Netting | (5,945) | (5,276) | |
Netting | (5,771) | (6,181) | |
Fair Value, Measurements, Recurring | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Netting | (11,708) | (11,447) | |
Fair Value, Measurements, Recurring | Other long-term investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Netting | (8) | (10) | |
Fair Value, Measurements, Recurring | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liability Netting | (5,945) | (5,276) | |
Fair Value, Measurements, Recurring | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 23,784 | 18,517 | |
Trading account assets - debt | 301 | 288 | |
Fair Value, Measurements, Recurring | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 9,692 | 8,795 | |
Trading account assets - debt | 194 | 189 | |
Fair Value, Measurements, Recurring | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 96,256 | 83,713 | |
Trading account assets - debt | 941 | 731 | |
Fair Value, Measurements, Recurring | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 81,611 | 75,368 | |
Fair Value, Measurements, Recurring | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 31,788 | 30,444 | |
Fair Value, Measurements, Recurring | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 28,237 | 28,554 | |
Fair Value, Measurements, Recurring | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 20,880 | 19,138 | |
Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - debt | 17,180 | 23,328 | |
Fair Value, Measurements, Recurring | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 11,935 | 10,226 | |
Trading account assets - debt | 1,415 | 1,345 | |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 12,704 | 10,462 | |
Trading account assets - debt | 2,062 | 1,873 | |
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 4,532 | 5,106 | |
Trading account assets - debt | 1,210 | 1,513 | |
Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - equity | 2,391 | 2,352 | |
Fair Value, Measurements, Recurring | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - all other | 1,760 | 3,361 | |
Fair Value, Measurements, Recurring | All other | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Netting | (11,708) | (11,447) | |
Fair Value, Measurements, Recurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Trading account assets | 1,898 | 2,172 | |
Equity securities, available-for-sale | 6,033 | 6,011 | |
Commercial mortgage and other loans | 0 | 0 | |
Other long-term investments | 44 | 13 | |
Short-term investments | 5,623 | 6,776 | |
Cash equivalents | 3,885 | 4,834 | |
Other assets | 0 | 0 | |
Subtotal excluding separate account assets | 17,483 | 19,806 | |
Separate account assets | 38,915 | 43,076 | |
TOTAL ASSETS | 56,398 | 62,882 | |
Future policy benefits | 0 | 0 | |
Other liabilities | 8 | 1 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 8 | 1 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - equity | 1,690 | 1,542 | |
Fair Value, Measurements, Recurring | Level 1 | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - all other | 208 | 630 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 314,562 | 284,703 | |
Trading account assets | 36,029 | 42,821 | |
Equity securities, available-for-sale | 3,450 | 2,997 | |
Commercial mortgage and other loans | 519 | 274 | |
Other long-term investments | 106 | 130 | |
Short-term investments | 1,558 | 711 | |
Cash equivalents | 4,421 | 9,374 | |
Other assets | 0 | 9 | |
Subtotal excluding separate account assets | 360,645 | 341,019 | |
Separate account assets | 221,253 | 214,838 | |
TOTAL ASSETS | 581,898 | 555,857 | |
Future policy benefits | 0 | 0 | |
Other liabilities | 6,284 | 5,306 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 6,284 | 5,306 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 23,784 | 18,517 | |
Trading account assets - debt | 301 | 288 | |
Fair Value, Measurements, Recurring | Level 2 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 9,687 | 8,789 | |
Trading account assets - debt | 194 | 189 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 96,132 | 83,590 | |
Trading account assets - debt | 714 | 697 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 81,350 | 75,163 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 30,434 | 29,750 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 28,166 | 28,510 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 20,393 | 18,859 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - debt | 16,992 | 23,125 | |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 7,591 | 6,178 | |
Trading account assets - debt | 1,086 | 749 | |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 12,690 | 10,424 | |
Trading account assets - debt | 2,061 | 1,870 | |
Fair Value, Measurements, Recurring | Level 2 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 4,335 | 4,923 | |
Trading account assets - debt | 1,208 | 1,509 | |
Fair Value, Measurements, Recurring | Level 2 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - equity | 214 | 221 | |
Fair Value, Measurements, Recurring | Level 2 | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - all other | 13,259 | 14,173 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 6,857 | 5,620 | |
Trading account assets | 1,235 | 1,434 | |
Equity securities, available-for-sale | 265 | 266 | |
Commercial mortgage and other loans | 0 | 0 | |
Other long-term investments | 7 | 49 | |
Short-term investments | 1 | 0 | |
Cash equivalents | 0 | 0 | |
Other assets | 0 | 7 | |
Subtotal excluding separate account assets | 8,365 | 7,376 | |
Separate account assets | 1,849 | 1,995 | |
TOTAL ASSETS | 10,214 | 9,371 | |
Future policy benefits | 8,238 | 8,434 | |
Other liabilities | 22 | 2 | |
Notes issued by consolidated VIEs | 1,839 | 8,597 | |
Total liabilities | 10,099 | 17,033 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 0 | 0 | |
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 5 | 6 | |
Trading account assets - debt | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 124 | 123 | |
Trading account assets - debt | 227 | 34 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 261 | 205 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 1,354 | 694 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 71 | 44 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 487 | 279 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - debt | 188 | 203 | |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 4,344 | 4,048 | |
Trading account assets - debt | 329 | 596 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 14 | 38 | |
Trading account assets - debt | 1 | 3 | |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 197 | 183 | |
Trading account assets - debt | 2 | 4 | |
Fair Value, Measurements, Recurring | Level 3 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - equity | 487 | 589 | |
Fair Value, Measurements, Recurring | Level 3 | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets - all other | $ 1 | $ 5 | |
[1] | See Note 5 for details of balances associated with variable interest entities. | ||
[2] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Fair Value of Assets and Lia155
Fair Value of Assets and Liabilities (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value Reporting [Line Items] | ||||
Fair Value Assets Level 1 To Level 2 Transfers | $ 100,000,000 | $ 200,000,000 | ||
Fair Value Assets Level 2 to Level 1 Transfers | 0 | 200,000,000 | ||
Commercial mortgage and other loans | [1] | 52,779,000,000 | 50,559,000,000 | |
Other long-term investments | [1] | 11,283,000,000 | 9,986,000,000 | |
Interest Expense | 1,320,000,000 | 1,306,000,000 | $ 1,908,000,000 | |
Fair value option | ||||
Fair Value Reporting [Line Items] | ||||
Commercial mortgage and other loans | 519,000,000 | 274,000,000 | ||
Interest income recorded on certain commercial loans | 10,000,000 | 11,000,000 | 11,000,000 | |
Contractual principal amounts of commercial mortgage loans, for which the fair value option has been elected | 508,000,000 | 270,000,000 | ||
Other long-term investments | 1,556,000,000 | 1,322,000,000 | ||
Notes Of Consolidated Variable Interest Entities | 1,839,000,000 | 8,597,000,000 | ||
Notes Of Vies Contractual Principle Amount | 1,886,000,000 | 9,186,000,000 | ||
Interest Expense | 120,000,000 | 351,000,000 | $ 200,000,000 | |
Non Accrual Loans | ||||
Fair Value Reporting [Line Items] | ||||
Commercial mortgage and other loans | 0 | |||
Contractual principal amounts of commercial mortgage loans, for which the fair value option has been elected | 0 | |||
Fair Value, Measurements, Recurring | ||||
Fair Value Reporting [Line Items] | ||||
Commercial mortgage and other loans | 519,000,000 | 274,000,000 | ||
Other long-term investments | 149,000,000 | 182,000,000 | ||
Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value Reporting [Line Items] | ||||
Commercial mortgage and other loans | 519,000,000 | 274,000,000 | ||
Other long-term investments | 106,000,000 | 130,000,000 | ||
Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value Reporting [Line Items] | ||||
Commercial mortgage and other loans | 0 | 0 | ||
Other long-term investments | 7,000,000 | 49,000,000 | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | ||||
Fair Value Reporting [Line Items] | ||||
Other long-term investments | 6,000,000 | 39,000,000 | ||
Level 3 | Internal | Fair Value, Measurements, Recurring | Separate Accounts Assets | ||||
Fair Value Reporting [Line Items] | ||||
Commercial mortgage and other loans | $ 971,000,000 | $ 960,000,000 | ||
Separate Accounts Commercial Mortgage Loan [Member] | Level 3 | Minimum | Discounted cash flow | ||||
Fair Value Reporting [Line Items] | ||||
Fair Value Inputs Credit Risk | 1.19% | 1.49% | ||
Separate Accounts Commercial Mortgage Loan [Member] | Level 3 | Maximum | Discounted cash flow | ||||
Fair Value Reporting [Line Items] | ||||
Fair Value Inputs Credit Risk | 2.90% | 4.81% | ||
Separate Accounts Commercial Mortgage Loan [Member] | Level 3 | Weighted Average | Discounted cash flow | ||||
Fair Value Reporting [Line Items] | ||||
Fair Value Inputs Credit Risk | 1.37% | 1.79% | ||
Accounting Standards Update 2015-07 | Other long-term investments | ||||
Fair Value Reporting [Line Items] | ||||
Investments, Fair Value Disclosure | $ 1,579,000,000 | $ 1,413,000,000 | ||
Accounting Standards Update 2015-07 | Other long-term investments | Scenario, Previously Reported | Level 2 | ||||
Fair Value Reporting [Line Items] | ||||
Investments, Fair Value Disclosure | 82,000,000 | |||
Accounting Standards Update 2015-07 | Other long-term investments | Scenario, Previously Reported | Level 3 | ||||
Fair Value Reporting [Line Items] | ||||
Investments, Fair Value Disclosure | 1,331,000,000 | |||
Accounting Standards Update 2015-07 | Separate account assets | ||||
Fair Value Reporting [Line Items] | ||||
Investments, Fair Value Disclosure | $ 25,619,000,000 | $ 25,661,000,000 | ||
[1] | See Note 5 for details of balances associated with variable interest entities. |
Fair Value of Assets and Lia156
Fair Value of Assets and Liabilities (Level 3 by Pricing Source) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other long-term investments | [1] | $ 11,283 | $ 9,986 |
Separate account assets | 287,636 | 285,570 | |
Future policy benefits | 240,908 | 224,384 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other long-term investments | 149 | 182 | |
Subtotal excluding separate account assets | 374,777 | 356,744 | |
Separate account assets | 262,017 | 259,909 | |
Future policy benefits | 8,238 | 8,434 | |
Notes issued by consolidated VIEs | 1,839 | 8,597 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 752 | 855 | |
Other long-term investments | 7 | 49 | |
Short-term Investments | 1 | ||
Other assets | 1 | 12 | |
Subtotal excluding separate account assets | 8,365 | 7,376 | |
Separate account assets | 1,849 | 1,995 | |
Total assets | 10,214 | 9,371 | |
Future policy benefits | 8,238 | 8,434 | |
Other liabilities | 22 | 2 | |
Notes issued by consolidated VIEs | 1,839 | 8,597 | |
Total liabilities | 10,099 | 17,033 | |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 5 | 6 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 351 | 157 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 2,361 | 1,425 | |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 4,673 | 4,644 | |
Fair Value, Measurements, Recurring | Level 3 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 15 | 41 | |
Fair Value, Measurements, Recurring | Level 3 | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 199 | 187 | |
Fair Value, Measurements, Recurring | Level 3 | Internal | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 143 | 63 | |
Other long-term investments | 6 | 39 | |
Short-term Investments | 1 | ||
Other assets | 1 | 12 | |
Subtotal excluding separate account assets | 2,184 | 1,396 | |
Separate account assets | 1,179 | 1,024 | |
Total assets | 3,363 | 2,420 | |
Future policy benefits | 8,238 | 8,434 | |
Other liabilities | 22 | 2 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 8,260 | 8,436 | |
Fair Value, Measurements, Recurring | Level 3 | Internal | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 5 | 6 | |
Fair Value, Measurements, Recurring | Level 3 | Internal | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Internal | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 1,848 | 1,085 | |
Fair Value, Measurements, Recurring | Level 3 | Internal | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 148 | 149 | |
Fair Value, Measurements, Recurring | Level 3 | Internal | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 14 | 5 | |
Fair Value, Measurements, Recurring | Level 3 | Internal | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 18 | 37 | |
Fair Value, Measurements, Recurring | Level 3 | External | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities | 609 | 792 | |
Other long-term investments | 1 | 10 | |
Short-term Investments | 0 | ||
Other assets | 0 | 0 | |
Subtotal excluding separate account assets | 6,181 | 5,980 | |
Separate account assets | 670 | 971 | |
Total assets | 6,851 | 6,951 | |
Future policy benefits | 0 | 0 | |
Other liabilities | 0 | 0 | |
Notes issued by consolidated VIEs | 1,839 | 8,597 | |
Total liabilities | 1,839 | 8,597 | |
Fair Value, Measurements, Recurring | Level 3 | External | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | External | Foreign government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 351 | 157 | |
Fair Value, Measurements, Recurring | Level 3 | External | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 513 | 340 | |
Fair Value, Measurements, Recurring | Level 3 | External | Asset-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 4,525 | 4,495 | |
Fair Value, Measurements, Recurring | Level 3 | External | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | 1 | 36 | |
Fair Value, Measurements, Recurring | Level 3 | External | Residential mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities | $ 181 | $ 150 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Fair Value of Assets and Lia157
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 240,908 | $ 224,384 |
Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 8,238 | $ 8,434 |
Level 3 | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 35 years | |
Level 3 | Minimum | Discounted cash flow | Future policy benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 0.00% | 0.00% |
NPR spread | 0.25% | 0.06% |
Utilization rate | 52.00% | 56.00% |
Withdrawal rate (greater than maximum range for current year) | 78.00% | 74.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 16.00% | 17.00% |
Level 3 | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 0.70% | 0.93% |
Level 3 | Minimum | Market comparables | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA multiples | 4 | 1.4 |
Level 3 | Minimum | Liquidation | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Liquidation value | 15.19% | 15.79% |
Level 3 | Maximum | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Maximum | Discounted cash flow | Future policy benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Lapse rate | 13.00% | 14.00% |
NPR spread | 1.50% | 1.76% |
Utilization rate | 96.00% | 96.00% |
Withdrawal rate (greater than maximum range for current year) | 100.00% | 100.00% |
Mortality rate | 14.00% | 14.00% |
Equity volatility curve | 25.00% | 28.00% |
Level 3 | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 20.00% | 25.00% |
Level 3 | Maximum | Market comparables | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA multiples | 4 | 5 |
Level 3 | Maximum | Liquidation | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Liquidation value | 98.68% | 29.33% |
Level 3 | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Discount rate | 7.12% | 7.66% |
Level 3 | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
EBITDA multiples | 4 | 3.7 |
Level 3 | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Liquidation value | 91.72% | 17.77% |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | $ 8,238 | $ 8,434 |
Level 3 | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value | 2,361 | 1,425 |
Level 3 | Internal | Fair Value, Measurements, Recurring | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | 8,238 | 8,434 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | ||
Fair Value Quantiative Information [Line Items] | ||
Future policy benefits | 8,238 | 8,434 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Quantiative Information [Line Items] | ||
Fair Value | $ 1,848 | $ 1,085 |
Future policy benefits | Level 3 | Minimum | ||
Fair Value Quantiative Information [Line Items] | ||
Mortality rate | 0.00% |
Fair Value of Assets and Lia158
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | $ 266 | $ 275 | |
Included in earnings: | |||
Realized investment gains (losses), net | 52 | 15 | $ 8 |
Included in other comprehensive income (loss) | (75) | 1 | 9 |
Purchases | 99 | 31 | |
Sales | (79) | (48) | |
Issuances | 0 | 0 | |
Settlements | (13) | (3) | |
Foreign currency translation | 13 | (7) | |
Other | 0 | 0 | |
Transfers into Level 3 | 9 | 2 | |
Transfers out of Level 3 | (7) | 0 | |
Fair Value, end of period | 265 | 266 | 275 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | (3) | (2) |
Other income | 0 | 0 | |
Equity securities | Other income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Equity securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Notes issued by consolidated VIEs | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (8,597) | (6,033) | |
Included in earnings: | |||
Realized investment gains (losses), net | (23) | 287 | 201 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (2,187) | (2,997) | |
Settlements | 697 | 0 | |
Foreign currency translation | 0 | 0 | |
Other | 8,285 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (1,839) | (8,597) | (6,033) |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | (23) | 287 | 201 |
Other income | (14) | 146 | |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Notes issued by consolidated VIEs | Other income | |||
Included in earnings: | |||
Net investment income | (14) | 146 | |
Notes issued by consolidated VIEs | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | 0 |
Fixed Maturities | U.S. States | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 6 | 6 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Included in other comprehensive income (loss) | 0 | 0 | |
Purchases | 0 | 15 | |
Sales | 0 | (1) | |
Issuances | 0 | 0 | |
Settlements | (1) | 0 | |
Foreign currency translation | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | (14) | |
Fair Value, end of period | 5 | 6 | 6 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Fixed Maturities | U.S. States | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Fixed Maturities | Foreign Government | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 123 | 2 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Included in other comprehensive income (loss) | (3) | (3) | |
Purchases | 0 | 20 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign currency translation | 3 | (4) | |
Other | 0 | 0 | |
Transfers into Level 3 | 1 | 129 | |
Transfers out of Level 3 | 0 | (21) | |
Fair Value, end of period | 124 | 123 | 2 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Fixed Maturities | Foreign Government | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Fixed Maturities | U.S. corporate public securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 205 | 357 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Included in other comprehensive income (loss) | 17 | 1 | 11 |
Purchases | 24 | 33 | |
Sales | (1) | (1) | |
Issuances | 0 | 0 | |
Settlements | (3) | (26) | |
Foreign currency translation | 2 | (3) | |
Other | (13) | 0 | |
Transfers into Level 3 | 73 | 23 | |
Transfers out of Level 3 | (44) | (180) | |
Fair Value, end of period | 261 | 205 | 357 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Fixed Maturities | U.S. corporate public securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 1 | 1 | (1) |
Fixed Maturities | U.S. Corporate Private Securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 694 | 523 | |
Included in earnings: | |||
Realized investment gains (losses), net | (129) | (14) | 9 |
Included in other comprehensive income (loss) | 64 | (27) | 2 |
Purchases | 144 | 182 | |
Sales | (5) | (43) | |
Issuances | 0 | 0 | |
Settlements | (88) | (110) | |
Foreign currency translation | 1 | 0 | |
Other | 0 | (3) | |
Transfers into Level 3 | 775 | 209 | |
Transfers out of Level 3 | (111) | (35) | |
Fair Value, end of period | 1,354 | 694 | 523 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | (109) | (19) | (20) |
Fixed Maturities | U.S. Corporate Private Securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 9 | 12 | 8 |
Fixed Maturities | Foreign Corporate Public Securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 44 | 252 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | (8) |
Included in other comprehensive income (loss) | 4 | 6 | 52 |
Purchases | 44 | 33 | |
Sales | (1) | (51) | |
Issuances | 0 | 0 | |
Settlements | (4) | (32) | |
Foreign currency translation | 3 | (5) | |
Other | 13 | 0 | |
Transfers into Level 3 | 88 | 0 | |
Transfers out of Level 3 | (120) | (159) | |
Fair Value, end of period | 71 | 44 | 252 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Fixed Maturities | Foreign Corporate Public Securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | 1 |
Fixed Maturities | Foreign Corporate Private Securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 279 | 171 | |
Included in earnings: | |||
Realized investment gains (losses), net | (2) | (81) | 19 |
Included in other comprehensive income (loss) | (9) | 27 | (20) |
Purchases | 106 | 108 | |
Sales | (11) | 0 | |
Issuances | 0 | 0 | |
Settlements | (228) | (90) | |
Foreign currency translation | (1) | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 550 | 140 | |
Transfers out of Level 3 | (198) | 0 | |
Fair Value, end of period | 487 | 279 | 171 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | (1) | (68) | 0 |
Fixed Maturities | Foreign Corporate Private Securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 1 | 4 | (18) |
Fixed Maturities | Asset-Backed | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 4,048 | 4,059 | |
Included in earnings: | |||
Realized investment gains (losses), net | 9 | 40 | 17 |
Included in other comprehensive income (loss) | (15) | (37) | 24 |
Purchases | 3,342 | 1,234 | |
Sales | (377) | (563) | |
Issuances | 0 | 4 | |
Settlements | (643) | (308) | |
Foreign currency translation | 17 | (13) | |
Other | 159 | 3 | |
Transfers into Level 3 | 1,768 | 2,555 | |
Transfers out of Level 3 | (3,977) | (2,939) | |
Fair Value, end of period | 4,344 | 4,048 | 4,059 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 4 | 2 |
Fixed Maturities | Asset-Backed | Net investment income | |||
Included in earnings: | |||
Net investment income | 13 | 21 | 17 |
Fixed Maturities | Commercial mortgage-backed securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 38 | 43 | |
Included in earnings: | |||
Realized investment gains (losses), net | 1 | 1 | 4 |
Included in other comprehensive income (loss) | (7) | (1) | (1) |
Purchases | 155 | 44 | |
Sales | (34) | 0 | |
Issuances | 0 | 0 | |
Settlements | (3) | (6) | |
Foreign currency translation | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 19 | 2 | |
Transfers out of Level 3 | (156) | (45) | |
Fair Value, end of period | 14 | 38 | 43 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Fixed Maturities | Commercial mortgage-backed securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 1 | 0 | 0 |
Fixed Maturities | Residential Mortgage- Backed | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 183 | 253 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Included in other comprehensive income (loss) | (1) | (2) | |
Purchases | 85 | 0 | |
Sales | (33) | (7) | |
Issuances | 0 | 0 | |
Settlements | (54) | (52) | |
Foreign currency translation | 18 | (8) | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 197 | 183 | 253 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Fixed Maturities | Residential Mortgage- Backed | Net investment income | |||
Included in earnings: | |||
Net investment income | (1) | (1) | |
Trading Account Assets | Foreign Government | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 34 | 21 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Purchases | 201 | 16 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (4) | (3) | |
Foreign currency translation | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 227 | 34 | 21 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Other income | (5) | 0 | |
Trading Account Assets | Foreign Government | Other income | |||
Included in earnings: | |||
Net investment income | (5) | 0 | |
Trading Account Assets | Foreign Government | Net investment income | |||
Included in earnings: | |||
Net investment income | 1 | 0 | |
Trading Account Assets | Corporate securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 203 | 124 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Purchases | 11 | 124 | |
Sales | (3) | (15) | |
Issuances | 0 | 0 | |
Settlements | (41) | (39) | |
Foreign currency translation | 0 | 0 | |
Other | (15) | 0 | |
Transfers into Level 3 | 151 | 77 | |
Transfers out of Level 3 | (111) | (41) | |
Fair Value, end of period | 188 | 203 | 124 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Other income | (10) | 9 | 6 |
Trading Account Assets | Corporate securities | Other income | |||
Included in earnings: | |||
Net investment income | (9) | (28) | (7) |
Trading Account Assets | Corporate securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 2 | 1 | 0 |
Trading Account Assets | Asset-Backed | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 596 | 393 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Purchases | 185 | 325 | |
Sales | (49) | (16) | |
Issuances | 0 | 0 | |
Settlements | (120) | (11) | |
Foreign currency translation | (2) | 0 | |
Other | 141 | 0 | |
Transfers into Level 3 | 252 | 272 | |
Transfers out of Level 3 | (666) | (361) | |
Fair Value, end of period | 329 | 596 | 393 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Other income | (2) | (7) | 0 |
Trading Account Assets | Asset-Backed | Other income | |||
Included in earnings: | |||
Net investment income | (10) | (7) | 0 |
Trading Account Assets | Asset-Backed | Net investment income | |||
Included in earnings: | |||
Net investment income | 2 | 1 | 1 |
Trading Account Assets | Commercial mortgage-backed securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 3 | 5 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Purchases | 0 | 27 | |
Sales | 0 | (3) | |
Issuances | 0 | 0 | |
Settlements | 0 | (2) | |
Foreign currency translation | 0 | 0 | |
Other | (1) | 0 | |
Transfers into Level 3 | 0 | 1 | |
Transfers out of Level 3 | 0 | (25) | |
Fair Value, end of period | 1 | 3 | 5 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | |
Other income | (1) | 0 | |
Trading Account Assets | Commercial mortgage-backed securities | Other income | |||
Included in earnings: | |||
Net investment income | (1) | 0 | |
Trading Account Assets | Commercial mortgage-backed securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Trading Account Assets | Residential Mortgage- Backed | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 4 | 7 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (2) | (2) | |
Foreign currency translation | 0 | 0 | |
Other | 1 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | (1) | |
Fair Value, end of period | 2 | 4 | 7 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Other income | (1) | 0 | 1 |
Trading Account Assets | Residential Mortgage- Backed | Other income | |||
Included in earnings: | |||
Net investment income | (1) | 0 | 0 |
Trading Account Assets | Residential Mortgage- Backed | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | 0 |
Trading Account Assets | Equity securities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 589 | 663 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 1 |
Purchases | 20 | 28 | |
Sales | (65) | (26) | |
Issuances | 0 | 0 | |
Settlements | (108) | (40) | |
Foreign currency translation | 31 | (13) | |
Other | 14 | (8) | |
Transfers into Level 3 | 28 | 0 | |
Transfers out of Level 3 | (30) | 0 | |
Fair Value, end of period | 487 | 589 | 663 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 1 |
Other income | 3 | 6 | 16 |
Trading Account Assets | Equity securities | Other income | |||
Included in earnings: | |||
Net investment income | 8 | (15) | 13 |
Trading Account Assets | Equity securities | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | 0 |
Trading Account Assets | All Other Activity | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 5 | 7 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | (1) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Other | (5) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 1 | 5 | 7 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Other income | 1 | (1) | 1 |
Trading Account Assets | All Other Activity | Other income | |||
Included in earnings: | |||
Net investment income | 1 | (1) | 1 |
Trading Account Assets | All Other Activity | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | 0 |
Other Long-term Investments | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 49 | 13 | |
Included in earnings: | |||
Realized investment gains (losses), net | (1) | 21 | (1) |
Included in other comprehensive income (loss) | 0 | 0 | 0 |
Purchases | 1 | 19 | |
Sales | 0 | (2) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Other | (33) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | (8) | (1) | |
Fair Value, end of period | 7 | 49 | 13 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | (1) | 19 | (1) |
Other income | 0 | 0 | |
Other Long-term Investments | Other income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Other Long-term Investments | Net investment income | |||
Included in earnings: | |||
Net investment income | (1) | (1) | |
Short-term investments | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | ||
Included in earnings: | |||
Realized investment gains (losses), net | 0 | ||
Included in other comprehensive income (loss) | 0 | ||
Purchases | 1 | ||
Sales | 0 | ||
Issuances | 0 | ||
Settlements | 0 | ||
Foreign currency translation | 0 | ||
Other | 0 | ||
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Fair Value, end of period | 1 | 0 | |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | ||
Other income | 0 | ||
Short-term investments | Other income | |||
Included in earnings: | |||
Net investment income | 0 | ||
Short-term investments | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | ||
Other Assets | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 7 | 2 | |
Included in earnings: | |||
Realized investment gains (losses), net | (30) | 0 | |
Included in other comprehensive income (loss) | 0 | 0 | |
Purchases | 23 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | (5) | |
Settlements | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 0 | 7 | 2 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | (30) | 2 | |
Other income | 0 | 0 | |
Other Assets | Other income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Other Assets | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Separate Accounts Assets | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 1,995 | 1,738 | |
Included in earnings: | |||
Realized investment gains (losses), net | 1 | 0 | 0 |
Interest credited to policyholders’ account balances | 22 | (38) | (11) |
Purchases | 555 | 1,060 | |
Sales | (141) | (175) | |
Issuances | 0 | 0 | |
Settlements | (485) | (140) | |
Foreign currency translation | 0 | (5) | |
Other | 0 | 0 | |
Transfers into Level 3 | 344 | 51 | |
Transfers out of Level 3 | (459) | (520) | |
Fair Value, end of period | 1,849 | 1,995 | 1,738 |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Other income | 0 | 0 | |
Interest credited to policyholders’ account balances | 3 | 318 | (8) |
Separate Accounts Assets | Other income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Separate Accounts Assets | Net investment income | |||
Included in earnings: | |||
Net investment income | 17 | 24 | 24 |
Future Policy Benefits | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (8,434) | (8,182) | |
Included in earnings: | |||
Realized investment gains (losses), net | 1,252 | 717 | (6,831) |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (1,056) | (969) | |
Settlements | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (8,238) | (8,434) | (8,182) |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | 1,046 | 485 | (6,853) |
Other income | 0 | 0 | |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Future Policy Benefits | Other income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Future Policy Benefits | Net investment income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | 0 |
Other Liabilities | |||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (2) | (5) | |
Included in earnings: | |||
Realized investment gains (losses), net | (8) | 1 | 2 |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (6) | 2 | |
Foreign currency translation | 0 | 0 | |
Other | (6) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (22) | (2) | (5) |
Unrealized gains (losses) for assets still held included in earnings: | |||
Realized investment gains (losses), net | (9) | 1 | 2 |
Other income | 0 | 0 | |
Interest credited to policyholders’ account balances | 0 | 0 | 0 |
Other Liabilities | Other income | |||
Included in earnings: | |||
Net investment income | 0 | 0 | |
Other Liabilities | Net investment income | |||
Included in earnings: | |||
Net investment income | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Lia159
Fair Value of Assets and Liabilities (Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | $ 1,367 | $ 2,728 |
Netting | (11,716) | (11,457) |
Total derivative liabilities | 345 | 40 |
Netting | (5,945) | (5,276) |
Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 9,330 | 10,579 |
Total derivative liabilities | 4,518 | 4,578 |
Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 375 | 318 |
Total derivative liabilities | 893 | 114 |
Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 1 | 3 |
Total derivative liabilities | 25 | 53 |
Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 3,174 | 2,995 |
Total derivative liabilities | 365 | 244 |
Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 203 | 290 |
Total derivative liabilities | 489 | 327 |
Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 55 | 15 |
Total derivative liabilities | 7 | 3 |
Level 1 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 55 | 11 |
Total derivative liabilities | 1 | 3 |
Level 1 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 4 |
Total derivative liabilities | 6 | 0 |
Level 1 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 13,022 | 14,131 |
Total derivative liabilities | 6,281 | 5,311 |
Level 2 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 9,269 | 10,561 |
Total derivative liabilities | 4,515 | 4,573 |
Level 2 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 375 | 318 |
Total derivative liabilities | 893 | 114 |
Level 2 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 1 | 3 |
Total derivative liabilities | 25 | 53 |
Level 2 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 3,174 | 2,995 |
Total derivative liabilities | 365 | 244 |
Level 2 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 203 | 254 |
Total derivative liabilities | 483 | 327 |
Level 2 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 6 | 39 |
Total derivative liabilities | 2 | 2 |
Level 3 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 6 | 7 |
Total derivative liabilities | 2 | 2 |
Level 3 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 32 |
Total derivative liabilities | 0 | 0 |
Level 3 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | $ 0 | $ 0 |
Fair Value of Assets and Lia160
Fair Value of Assets and Liabilities (Changes in Level 3 Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, beginning of period | $ 32 | $ 6 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 20 | $ 1 |
Other income | 0 | 0 | 0 |
Purchases | 0 | 9 | |
Sales | 0 | (2) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | (32) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | (1) | |
Fair Value, end of period | 0 | 32 | 6 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 20 | 1 |
Other income | 0 | 0 | 0 |
Interest Rate | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, beginning of period | 5 | 3 | |
Included in earnings: | |||
Realized investment gains (losses), net | (1) | 2 | 0 |
Other income | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 4 | 5 | 3 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 2 | 0 |
Other income | 0 | 0 | 0 |
All Other Activity | Trading account assets | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, beginning of period | 5 | 7 | |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Purchases | 0 | 0 | |
Sales | 0 | (1) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 5 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 1 | 5 | 7 |
Included in earnings: | |||
Realized investment gains (losses), net | 0 | 0 | 0 |
Other income | $ 1 | $ (1) | $ 1 |
Fair Value of Assets and Lia161
Fair Value of Assets and Liabilities (Nonrecurring Fair Value Measurements) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial mortgage loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value as of period end | $ 47 | $ 0 | $ 0 |
Realized investment gains (losses) net | (5) | 0 | 0 |
Mortgage servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value as of period end | 84 | 90 | 89 |
Realized investment gains (losses) net | (1) | (7) | 7 |
Cost method investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value as of period end | 284 | 239 | 102 |
Realized investment gains (losses) net | $ (85) | $ (123) | $ (21) |
Fair Value of Assets and Lia162
Fair Value of Assets and Liabilities (Changes in Fair Values Recorded in Earnings for FVO Assets-Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commercial mortgage and other loans | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Changes in instrument-specific credit risk | $ 0 | $ 0 | $ 0 |
Other changes in fair value | 0 | 0 | 0 |
Other long-term investments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Changes in fair value | 58 | 2 | 54 |
Notes issued by consolidated VIEs | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Changes in fair value | $ 37 | $ (434) | $ (201) |
Fair Value of Assets and Lia163
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets: | |||
Fixed maturities, held-to-maturity | [1] | $ 2,144 | $ 2,308 |
Trading account assets | 5,764 | 14,458 | |
Policy loans | 11,755 | 11,657 | |
Accrued investment income | [1] | 3,204 | 3,110 |
Liabilities: | |||
Securities sold under agreements to repurchase | 7,606 | 7,882 | |
Cash collateral for loaned securities | 4,333 | 3,496 | |
Short-term debt | 1,133 | 1,216 | |
Long-term debt | [2] | 18,041 | 19,594 |
Fair Value | |||
Assets: | |||
Fixed maturities, held-to-maturity | 2,524 | 2,624 | |
Trading account assets | 150 | ||
Commercial mortgage and other loans | 53,764 | 51,579 | |
Policy loans | 11,755 | 11,657 | |
Short-term investments | 326 | 618 | |
Cash and cash equivalents | 5,821 | 3,404 | |
Accrued investment income | 3,204 | 3,110 | |
Other assets | 2,688 | 3,122 | |
Total assets | 80,232 | 76,114 | |
Liabilities: | |||
Policyholders’ account balances—investment contracts | 100,045 | 94,271 | |
Securities sold under agreements to repurchase | 7,606 | 7,882 | |
Cash collateral for loaned securities | 4,333 | 3,496 | |
Short-term debt | 1,150 | 1,221 | |
Long-term debt | 19,929 | 21,301 | |
Other liabilities | 7,236 | 6,039 | |
Separate account liabilities—investment contracts | 98,588 | 102,245 | |
Total liabilities | 238,887 | 236,455 | |
Fair Value | Long-term debt | |||
Liabilities: | |||
Assets Under Set Off Arrangements | 5,859 | 5,120 | |
Fair Value | Fixed maturities, held-to-maturity | |||
Liabilities: | |||
Assets Under Set Off Arrangements | 4,403 | 4,081 | |
Fair Value | Accounting Standards Update 2015-07 | |||
Liabilities: | |||
Cost Method Investments, Fair Value Disclosure | 1,514 | 1,653 | |
Fair Value | Level 1 | |||
Assets: | |||
Fixed maturities, held-to-maturity | 0 | 0 | |
Trading account assets | 0 | ||
Commercial mortgage and other loans | 0 | 0 | |
Policy loans | 1 | 0 | |
Short-term investments | 0 | 0 | |
Cash and cash equivalents | 4,945 | 2,832 | |
Accrued investment income | 0 | 0 | |
Other assets | 54 | 136 | |
Total assets | 5,000 | 2,968 | |
Liabilities: | |||
Policyholders’ account balances—investment contracts | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Cash collateral for loaned securities | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 1,267 | 1,328 | |
Other liabilities | 0 | 0 | |
Separate account liabilities—investment contracts | 0 | 0 | |
Total liabilities | 1,267 | 1,328 | |
Fair Value | Level 2 | |||
Assets: | |||
Fixed maturities, held-to-maturity | 1,526 | 1,543 | |
Trading account assets | 150 | ||
Commercial mortgage and other loans | 139 | 533 | |
Policy loans | 0 | 0 | |
Short-term investments | 326 | 617 | |
Cash and cash equivalents | 876 | 572 | |
Accrued investment income | 3,204 | 3,110 | |
Other assets | 1,976 | 2,334 | |
Total assets | 8,197 | 8,709 | |
Liabilities: | |||
Policyholders’ account balances—investment contracts | 41,653 | 39,314 | |
Securities sold under agreements to repurchase | 7,606 | 7,882 | |
Cash collateral for loaned securities | 4,333 | 3,496 | |
Short-term debt | 1,077 | 1,221 | |
Long-term debt | 15,705 | 16,540 | |
Other liabilities | 6,540 | 5,344 | |
Separate account liabilities—investment contracts | 71,010 | 69,978 | |
Total liabilities | 147,924 | 143,775 | |
Fair Value | Level 3 | |||
Assets: | |||
Fixed maturities, held-to-maturity | 998 | 1,081 | |
Trading account assets | 0 | ||
Commercial mortgage and other loans | 53,625 | 51,046 | |
Policy loans | 11,754 | 11,657 | |
Short-term investments | 0 | 1 | |
Cash and cash equivalents | 0 | 0 | |
Accrued investment income | 0 | 0 | |
Other assets | 658 | 652 | |
Total assets | 67,035 | 64,437 | |
Liabilities: | |||
Policyholders’ account balances—investment contracts | 58,392 | 54,957 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Cash collateral for loaned securities | 0 | 0 | |
Short-term debt | 73 | 0 | |
Long-term debt | 2,957 | 3,433 | |
Other liabilities | 696 | 695 | |
Separate account liabilities—investment contracts | 27,578 | 32,267 | |
Total liabilities | 89,696 | 91,352 | |
Carrying Amount | |||
Assets: | |||
Fixed maturities, held-to-maturity | 2,144 | 2,308 | |
Trading account assets | 150 | ||
Commercial mortgage and other loans | 52,260 | 50,285 | |
Policy loans | 11,755 | 11,657 | |
Short-term investments | 326 | 618 | |
Cash and cash equivalents | 5,821 | 3,404 | |
Accrued investment income | 3,204 | 3,110 | |
Other assets | 2,688 | 3,122 | |
Total assets | 78,348 | 74,504 | |
Liabilities: | |||
Policyholders’ account balances—investment contracts | 99,719 | 93,937 | |
Securities sold under agreements to repurchase | 7,606 | 7,882 | |
Cash collateral for loaned securities | 4,333 | 3,496 | |
Short-term debt | 1,133 | 1,216 | |
Long-term debt | 18,041 | 19,594 | |
Other liabilities | 7,236 | 6,039 | |
Separate account liabilities—investment contracts | 98,588 | 102,245 | |
Total liabilities | 236,656 | 234,409 | |
Carrying Amount | Long-term debt | |||
Liabilities: | |||
Assets Under Set Off Arrangements | 5,859 | 4,889 | |
Carrying Amount | Fixed maturities, held-to-maturity | |||
Liabilities: | |||
Assets Under Set Off Arrangements | 4,403 | 3,850 | |
Carrying Amount | Accounting Standards Update 2015-07 | |||
Liabilities: | |||
Cost Method Investments, Fair Value Disclosure | $ 1,478 | $ 1,563 | |
[1] | See Note 5 for details of balances associated with variable interest entities. | ||
[2] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Total derivative assets | $ 1,367 | $ 2,728 | |
Total derivative liabilities | 345 | 40 | |
Gain (Loss) on Hedge Ineffectiveness, Net | 5.6 | ||
Anticipated pre-tax loss reclassified from accumulated other comprehensive income (loss) to earnings | $ 161 | ||
Max length of time hedged in cash flow hedge | 40 years | ||
Net investment hedges income (loss) before taxes | $ 536 | 541 | $ 501 |
Derivative [Line Items] | |||
Notional of credit derivative | 500 | 500 | |
Fair value of credit derivative liability | 17 | 15 | |
Credit protection derivatives outstanding notional amounts | 256 | 532 | |
Purchased credit protection, Liability | 8 | 8 | |
Single Name | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 112 | 106 | |
Credit Risk Derivatives, at Fair Value, Net Asset (Liability) | $ 1 | (3) | |
Credit Derivatives Written Max Length Of Maturities (less than) | 4 years | ||
Single Name | NAIC 1 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 48 | ||
Single Name | NAIC 2 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 48 | ||
Single Name | NAIC 3 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 5 | ||
Single Name | NAIC 4 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 1 | ||
Single Name | NAIC 5 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 6 | ||
Single Name | NAIC 6 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 4 | ||
Credit Default Index | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 50 | 701 | |
Credit Risk Derivatives, at Fair Value, Net Asset (Liability) | $ (1) | $ (24) | |
Credit Derivatives Written Max Length Of Maturities (less than) | 31 years | ||
Credit Default Index | NAIC 1 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 50 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Notional | $ 366,091 | $ 427,550 |
Assets | 13,088 | 14,192 |
Liabilities | (6,290) | (5,316) |
Net Embedded Derivative Liability | 8,252 | 8,408 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 16,021 | 14,493 |
Assets | 1,976 | 1,619 |
Liabilities | (166) | (154) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 350,070 | 413,057 |
Assets | 11,112 | 12,573 |
Liabilities | (6,124) | (5,162) |
Interest Rate Swaps | Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 1,117 | 1,431 |
Assets | 17 | 20 |
Liabilities | (111) | (148) |
Interest Rate Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 162,131 | 173,091 |
Assets | 8,969 | 10,161 |
Liabilities | (4,274) | (4,232) |
Interest Rate Futures | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 31,183 | 28,209 |
Assets | 55 | 11 |
Liabilities | (1) | (3) |
Interest Rate Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 13,290 | 40,056 |
Assets | 289 | 387 |
Liabilities | (132) | (196) |
Interest Rate Forwards | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 321 | 86 |
Assets | 0 | 0 |
Liabilities | (1) | 0 |
Foreign Currency Forwards | Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 167 | 323 |
Assets | 3 | 7 |
Liabilities | (1) | (1) |
Foreign Currency Forwards | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 21,042 | 17,400 |
Assets | 372 | 311 |
Liabilities | (892) | (113) |
Foreign Currency Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 93 | 93 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Foreign Currency Swaps | Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 14,737 | 12,739 |
Assets | 1,956 | 1,592 |
Liabilities | (54) | (5) |
Foreign Currency Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 12,336 | 11,607 |
Assets | 1,218 | 1,404 |
Liabilities | (311) | (238) |
Credit Default Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 918 | 1,839 |
Assets | 1 | 3 |
Liabilities | (25) | (53) |
Equity Futures | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 1,371 | 249 |
Assets | 0 | 2 |
Liabilities | (5) | 0 |
Equity Options | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 12,020 | 48,958 |
Assets | 102 | 159 |
Liabilities | (93) | (118) |
Total Return Swaps | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 18,167 | 18,804 |
Assets | 101 | 128 |
Liabilities | (390) | (209) |
Commodity Futures | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 1 | 80 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Synthetic GICs | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 77,197 | 72,585 |
Assets | 5 | 7 |
Liabilities | $ 0 | $ 0 |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | $ 13,088 | $ 14,192 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 1,016 | 776 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 1,016 | 776 |
Financial Instruments/Collateral | (1,016) | (776) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 14,003 | 14,804 |
Gross Amounts Offset in the Statements of Financial Position | (11,716) | (11,457) |
Net Amounts Presented in the Statements of Financial Position | 2,287 | 3,347 |
Financial Instruments/Collateral | (1,415) | (2,072) |
Net Amount | 872 | 1,275 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 6,290 | 5,316 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 7,606 | 7,882 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 7,606 | 7,882 |
Financial Instruments/Collateral | (7,606) | (7,882) |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 13,887 | 13,192 |
Gross Amounts Offset in the Statement of Financial Position | (5,945) | (5,276) |
Net Amounts Presented in the Statement of Financial Position | 7,942 | 7,916 |
Financial Instruments/Collateral | (7,905) | (7,896) |
Net Amount | 37 | 20 |
Counterparty | ||
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 12,987 | 14,028 |
Gross Amounts Offset in the Statements of Financial Position | (11,716) | (11,457) |
Net Amounts Presented in the Statements of Financial Position | 1,271 | 2,571 |
Financial Instruments/Collateral | (399) | (1,296) |
Net Amount | 872 | 1,275 |
Derivatives | ||
Gross Amounts of Recognized Financial Instruments | 6,281 | 5,310 |
Gross Amounts Offset in the Statement of Financial Position | (5,945) | (5,276) |
Net Amounts Presented in the Statement of Financial Position | 336 | 34 |
Financial Instruments/Collateral | (299) | (14) |
Net Amount | $ 37 | $ 20 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 1,209 | $ 2,008 | $ (188) |
Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 91 | 30 | (51) |
Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 273 | 151 | 72 |
Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (5) | (7) | (22) |
Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 2 |
AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 146 | 999 | 797 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 47 | 47 | (13) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (32) | (45) | (58) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 2 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 26 | 29 | (4) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (31) | (44) | (57) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 2 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 21 | 18 | (9) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | (1) | (1) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 123 | 75 | 7 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 269 | 146 | 67 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (5) | (7) | (22) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 151 | 959 | 652 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (5) | (7) | (22) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | 2 | 38 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 123 | 75 | 7 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 269 | 146 | 67 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 152 | 957 | 614 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 5 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (5) | 40 | 145 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 5 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (5) | 9 | 17 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 31 | 128 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,157 | 1,961 | (175) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 4 | 5 | 5 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,564 | 1,394 | 7,623 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 463 | (124) | (562) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | (2) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 10 | 563 | 1,124 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3 | 7 | 5 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 32 | (5) | (22) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2,171) | (591) | (1,605) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | 0 | 1 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Realized Investment Gains (Losses) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,260 | 724 | (6,734) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Net Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Other Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivatives | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Before Tax [Roll Forward] | |||
Beginning Balance | $ 1,165 | $ 206 | $ (446) |
Net deferred gains (losses) on cash flow hedges for the period | 602 | 1,199 | 706 |
Amount reclassified into current period earnings | (451) | (240) | (54) |
Ending Balance | $ 1,316 | $ 1,165 | $ 206 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)divisionsegment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of divisions | division | 4 | ||||
Number of Reportable Segments | segment | 7 | ||||
Total deferred gain (loss) | $ 169 | $ 169 | |||
Synthetic Gic Fees | 158 | $ 158 | $ 168 | ||
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net, Terminated Or Offset Before Maturity | 49 | $ 55 | 105 | ||
Individual Life | |||||
Segment Reporting Information [Line Items] | |||||
Out of period adjustments | (153) | ||||
Group Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Out of period adjustments | (77) | ||||
International Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Out of period adjustments | (72) | ||||
Included In Operating Measure | |||||
Segment Reporting Information [Line Items] | |||||
Out of period adjustments | (114) | (155) | |||
Income From Continuing Operations Before Income Taxes And Equity In Earnings Of Operating Joint Ventures | |||||
Segment Reporting Information [Line Items] | |||||
Out of period adjustments | $ (153) | (134) | $ (193) | 41 | |
Universal Life | |||||
Segment Reporting Information [Line Items] | |||||
Out of period adjustments | $ (148) | $ (141) | $ (33) |
Segment Information (Operating
Segment Information (Operating Income of Reportable Segments) (Reconciling Items) (Details) - Segment Reconciling Items - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Terminated hedges of foreign currency earnings | $ 39 | $ 284 | $ 293 |
Current period yield adjustments | 466 | 475 | 476 |
Principal source of earnings | 74 | 123 | 100 |
Other trading account assets | (95) | (94) | (21) |
Foreign currency exchange movements | (154) | 69 | (3,023) |
Other activities | $ (18) | $ 9 | $ 13 |
Segment Information (Operati171
Segment Information (Operating Income of Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 5,705 | $ 7,769 | $ 1,759 |
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 5,399 | 6,231 | 5,892 |
Operating Segments | Closed Block Business | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 0 | 0 | (259) |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 3,564 | 3,507 | 3,467 |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Individual Annuities | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 1,765 | 1,797 | 1,467 |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Retirement | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 1,012 | 931 | 1,215 |
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Asset Management | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 787 | 779 | 785 |
Operating Segments | Total U.S. Individual Life and Group Insurance division | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 299 | 811 | 521 |
Operating Segments | Total U.S. Individual Life and Group Insurance division | Individual Life | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 79 | 635 | 498 |
Operating Segments | Total U.S. Individual Life and Group Insurance division | Group Insurance | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 220 | 176 | 23 |
Operating Segments | Total International Insurance division | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 3,117 | 3,226 | 3,252 |
Operating Segments | Total International Insurance division | International Insurance | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 3,117 | 3,226 | 3,252 |
Operating Segments | Total Corporate and Other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (1,581) | (1,313) | (1,348) |
Operating Segments | Total Corporate and Other | Total Corporate and Other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (1,581) | (1,313) | (1,348) |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 5,705 | 7,769 | 2,018 |
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 989 | 2,258 | (3,588) |
Segment Reconciling Items | Charges related to realized investment gains (losses), net | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (466) | (679) | (542) |
Segment Reconciling Items | Investment gains (losses) on trading account assets supporting insurance liabilities, net | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (17) | (524) | 339 |
Segment Reconciling Items | Change in experience-rated contractholder liabilities due to assets value changes | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 21 | 433 | (294) |
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (5) | 58 | 44 |
Segment Reconciling Items | Closed Block division | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (132) | 58 | 0 |
Segment Reconciling Items | Other divested businesses | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ (84) | $ (66) | $ 167 |
Segment Information (Certain Fi
Segment Information (Certain Financial Information for the Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 783,962 | $ 757,255 | $ 783,962 | $ 757,255 | |||||||
Revenues | 13,050 | $ 16,961 | $ 14,439 | $ 14,329 | 14,256 | $ 13,599 | $ 13,712 | $ 15,552 | 58,779 | 57,119 | $ 54,105 |
Net Investment Income | 15,520 | 14,829 | 15,256 | ||||||||
Policyholders’ Benefits | 33,632 | 30,627 | 31,587 | ||||||||
Interest Credited to Policyholders’ Account Balances | 3,761 | 3,479 | 4,263 | ||||||||
Dividends to Policyholders | 2,025 | 2,212 | 2,716 | ||||||||
Interest Expense | 1,320 | 1,306 | 1,908 | ||||||||
Amortization of DAC | 1,877 | 2,120 | 1,973 | ||||||||
Closed Block Business | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 62,051 | 62,127 | 62,051 | 62,127 | |||||||
Closed Block Business | Closed Block division | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 62,051 | 62,127 | 62,051 | 62,127 | |||||||
Revenues | 5,669 | 6,160 | 6,906 | ||||||||
Net Investment Income | 2,578 | 2,653 | 3,007 | ||||||||
Policyholders’ Benefits | 3,282 | 3,365 | 3,326 | ||||||||
Interest Credited to Policyholders’ Account Balances | 134 | 135 | 136 | ||||||||
Dividends to Policyholders | 1,941 | 2,130 | 2,635 | ||||||||
Interest Expense | 2 | 1 | 597 | ||||||||
Amortization of DAC | 37 | 37 | 37 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 51,574 | 48,630 | 49,644 | ||||||||
Net Investment Income | 12,695 | 11,958 | 12,046 | ||||||||
Policyholders’ Benefits | 29,625 | 26,616 | 27,457 | ||||||||
Interest Credited to Policyholders’ Account Balances | 3,698 | 3,585 | 3,720 | ||||||||
Dividends to Policyholders | 84 | 82 | 82 | ||||||||
Interest Expense | 1,315 | 1,302 | 1,308 | ||||||||
Amortization of DAC | 1,672 | 1,631 | 1,853 | ||||||||
Operating Segments | Other divested businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 602 | 638 | 762 | ||||||||
Net Investment Income | 278 | 217 | 208 | ||||||||
Policyholders’ Benefits | 594 | 607 | 509 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 1 | 2 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 3 | 3 | 3 | ||||||||
Amortization of DAC | 0 | 0 | 0 | ||||||||
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 393,625 | 395,121 | 393,625 | 395,121 | |||||||
Revenues | 20,503 | 19,460 | 19,627 | ||||||||
Net Investment Income | 5,041 | 4,796 | 4,959 | ||||||||
Policyholders’ Benefits | 9,634 | 8,666 | 8,817 | ||||||||
Interest Credited to Policyholders’ Account Balances | 1,835 | 1,804 | 1,905 | ||||||||
Dividends to Policyholders | 0 | (2) | 0 | ||||||||
Interest Expense | 105 | 104 | 142 | ||||||||
Amortization of DAC | 532 | 550 | 594 | ||||||||
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Individual annuities | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 170,861 | 169,447 | 170,861 | 169,447 | |||||||
Revenues | 4,666 | 4,695 | 4,710 | ||||||||
Net Investment Income | 698 | 603 | 630 | ||||||||
Policyholders’ Benefits | 306 | 314 | 481 | ||||||||
Interest Credited to Policyholders’ Account Balances | 362 | 363 | 429 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 71 | 69 | 107 | ||||||||
Amortization of DAC | 484 | 465 | 543 | ||||||||
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Retirement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 173,509 | 171,183 | 173,509 | 171,183 | |||||||
Revenues | 12,876 | 11,821 | 12,077 | ||||||||
Net Investment Income | 4,263 | 4,082 | 4,209 | ||||||||
Policyholders’ Benefits | 9,328 | 8,352 | 8,336 | ||||||||
Interest Credited to Policyholders’ Account Balances | 1,473 | 1,441 | 1,476 | ||||||||
Dividends to Policyholders | 0 | (2) | 0 | ||||||||
Interest Expense | 19 | 25 | 25 | ||||||||
Amortization of DAC | 33 | 66 | 31 | ||||||||
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Asset Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 49,255 | 54,491 | 49,255 | 54,491 | |||||||
Revenues | 2,961 | 2,944 | 2,840 | ||||||||
Net Investment Income | 80 | 111 | 120 | ||||||||
Policyholders’ Benefits | 0 | 0 | 0 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 15 | 10 | 10 | ||||||||
Amortization of DAC | 15 | 19 | 20 | ||||||||
Operating Segments | Total U.S. Individual Life and Group Insurance division | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 118,166 | 111,200 | 118,166 | 111,200 | |||||||
Revenues | 10,698 | 10,376 | 10,583 | ||||||||
Net Investment Income | 2,430 | 2,255 | 2,233 | ||||||||
Policyholders’ Benefits | 6,782 | 6,113 | 6,323 | ||||||||
Interest Credited to Policyholders’ Account Balances | 943 | 901 | 854 | ||||||||
Dividends to Policyholders | 35 | 33 | 32 | ||||||||
Interest Expense | 588 | 558 | 542 | ||||||||
Amortization of DAC | 121 | 139 | 353 | ||||||||
Operating Segments | Total U.S. Individual Life and Group Insurance division | Individual Life | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 77,524 | 71,856 | 77,524 | 71,856 | |||||||
Revenues | 5,355 | 5,233 | 5,226 | ||||||||
Net Investment Income | 1,822 | 1,669 | 1,620 | ||||||||
Policyholders’ Benefits | 2,750 | 2,245 | 2,108 | ||||||||
Interest Credited to Policyholders’ Account Balances | 680 | 644 | 606 | ||||||||
Dividends to Policyholders | 35 | 33 | 32 | ||||||||
Interest Expense | 583 | 550 | 533 | ||||||||
Amortization of DAC | 115 | 133 | 345 | ||||||||
Operating Segments | Total U.S. Individual Life and Group Insurance division | Group Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 40,642 | 39,344 | 40,642 | 39,344 | |||||||
Revenues | 5,343 | 5,143 | 5,357 | ||||||||
Net Investment Income | 608 | 586 | 613 | ||||||||
Policyholders’ Benefits | 4,032 | 3,868 | 4,215 | ||||||||
Interest Credited to Policyholders’ Account Balances | 263 | 257 | 248 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 5 | 8 | 9 | ||||||||
Amortization of DAC | 6 | 6 | 8 | ||||||||
Operating Segments | Total International Insurance division | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 197,119 | 175,153 | 197,119 | 175,153 | |||||||
Revenues | 21,009 | 19,364 | 20,066 | ||||||||
Net Investment Income | 4,759 | 4,357 | 4,434 | ||||||||
Policyholders’ Benefits | 13,183 | 11,821 | 12,234 | ||||||||
Interest Credited to Policyholders’ Account Balances | 920 | 880 | 961 | ||||||||
Dividends to Policyholders | 49 | 51 | 50 | ||||||||
Interest Expense | 8 | 5 | 4 | ||||||||
Amortization of DAC | 1,068 | 989 | 961 | ||||||||
Operating Segments | Total International Insurance division | International Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 197,119 | 175,153 | 197,119 | 175,153 | |||||||
Revenues | 21,009 | 19,364 | 20,066 | ||||||||
Net Investment Income | 4,759 | 4,357 | 4,434 | ||||||||
Policyholders’ Benefits | 13,183 | 11,821 | 12,234 | ||||||||
Interest Credited to Policyholders’ Account Balances | 920 | 880 | 961 | ||||||||
Dividends to Policyholders | 49 | 51 | 50 | ||||||||
Interest Expense | 8 | 5 | 4 | ||||||||
Amortization of DAC | 1,068 | 989 | 961 | ||||||||
Operating Segments | Corporate and Other operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 13,001 | 13,654 | 13,001 | 13,654 | |||||||
Revenues | (636) | (570) | (632) | ||||||||
Net Investment Income | 465 | 550 | 420 | ||||||||
Policyholders’ Benefits | 26 | 16 | 83 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 614 | 635 | 620 | ||||||||
Amortization of DAC | (49) | (47) | (55) | ||||||||
Operating Segments | Corporate and Other operations | Corporate and Other operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 13,001 | $ 13,654 | 13,001 | 13,654 | |||||||
Revenues | (636) | (570) | (632) | ||||||||
Net Investment Income | 465 | 550 | 420 | ||||||||
Policyholders’ Benefits | 26 | 16 | 83 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 614 | 635 | 620 | ||||||||
Amortization of DAC | (49) | (47) | (55) | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 47,199 | ||||||||||
Net Investment Income | 12,249 | ||||||||||
Policyholders’ Benefits | 28,261 | ||||||||||
Interest Credited to Policyholders’ Account Balances | 4,127 | ||||||||||
Dividends to Policyholders | 81 | ||||||||||
Interest Expense | 1,311 | ||||||||||
Amortization of DAC | 1,936 | ||||||||||
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 989 | 2,258 | (3,588) | ||||||||
Net Investment Income | (31) | 1 | (5) | ||||||||
Policyholders’ Benefits | 0 | 0 | 0 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Amortization of DAC | 0 | 0 | 0 | ||||||||
Segment Reconciling Items | Charges related to realized investment gains (losses), net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 19 | (31) | 55 | ||||||||
Net Investment Income | 0 | 0 | 0 | ||||||||
Policyholders’ Benefits | 131 | 39 | 295 | ||||||||
Interest Credited to Policyholders’ Account Balances | (50) | 191 | 111 | ||||||||
Dividends to Policyholders | 0 | 0 | (1) | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Amortization of DAC | 168 | 452 | 83 | ||||||||
Segment Reconciling Items | Investment gains (losses) on trading account assets supporting insurance liabilities, net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (17) | (524) | 339 | ||||||||
Net Investment Income | 0 | 0 | 0 | ||||||||
Policyholders’ Benefits | 0 | 0 | 0 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Amortization of DAC | 0 | 0 | 0 | ||||||||
Segment Reconciling Items | Change in experience-rated contractholder liabilities due to assets value changes | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Net Investment Income | 0 | 0 | 0 | ||||||||
Policyholders’ Benefits | 0 | 0 | 0 | ||||||||
Interest Credited to Policyholders’ Account Balances | (21) | (433) | 294 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Amortization of DAC | 0 | 0 | 0 | ||||||||
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (57) | (12) | (13) | ||||||||
Net Investment Income | 0 | 0 | 0 | ||||||||
Policyholders’ Benefits | 0 | 0 | 0 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Amortization of DAC | $ 0 | $ 0 | $ 0 |
Segment Information (Revenues a
Segment Information (Revenues and Asset Management Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 13,050 | $ 16,961 | $ 14,439 | $ 14,329 | $ 14,256 | $ 13,599 | $ 13,712 | $ 15,552 | $ 58,779 | $ 57,119 | $ 54,105 |
Total U.S. Retirement Solutions and Investment Management division | Asset Management | Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 682 | 682 | 645 | ||||||||
Domestic operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 36,079 | 36,151 | 35,793 | ||||||||
Foreign operations, total | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 22,700 | 20,968 | 18,312 | ||||||||
Foreign operations, Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 19,768 | 18,177 | 15,461 | ||||||||
Foreign operations, Korea | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 1,439 | $ 1,462 | $ 1,484 |
Commitments and Guarantees, 174
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Narrative Excluding Litigation) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 252 | $ 232 | $ 225 |
Yield Maintenance Guarantee | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Guarantee obligation - maximum exposure | 51 | 317 | |
Securities Lending Transactions | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Accrued liability (asset) associated with guarantee | $ 0 | 0 | |
Fair value of the loaned securities, minimum collateral (greater than) | 102.00% | ||
Guarantee obligation - maximum exposure | $ 5,352 | 15,084 | |
Serviced Mortgage Loans | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Accrued liability (asset) associated with guarantee | $ 13 | 14 | |
Minimum percentage share of losses incurred of loan balance | 2.00% | ||
Maximum percentage share of losses incurred of loan balance | 20.00% | ||
Mortgages subject to loss-sharing arrangements | $ 11,445 | $ 9,833 | |
Average debt service coverage ratio of mortgages subject to loss-sharing arrangements | 1.82 | 1.96 | |
Average loan-to-value ratio of mortgages subject to loss-sharing arrangements | 59.00% | 61.00% | |
Indemnification of Serviced Mortgage Loans, Losses | $ 0 | $ 1 | $ 1 |
Guarantee obligation - maximum exposure | 1,371 | $ 1,200 | |
Operating Leases Reserves | |||
Commitments Guarantees Contingent Liabilities And Litigation [Line Items] | |||
Accrued liability (asset) associated with guarantee | $ 2 |
Commitments and Guarantees, 175
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Commitments and Guarantees) (Lease) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Operating and Capital Leases | |
2,017 | $ 150 |
2,018 | 129 |
2,019 | 106 |
2,020 | 80 |
2,021 | 68 |
2022 and thereafter | 185 |
Total | 718 |
Sub-lease Income | |
2,017 | (1) |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2022 and thereafter | 0 |
Total | (1) |
Capital Leases | $ 24 |
Commitments and Guarantees, 176
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Commitments and Guarantees) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Premium tax offset for future undiscounted assessments | $ 78 | $ 79 |
Premium tax offsets currently available for paid assessments | 6 | 6 |
Total | 84 | 85 |
Insolvency assessments | 52 | 39 |
Securities Lending Transactions | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | 5,352 | 15,084 |
Fair value of related collateral | 5,465 | 15,508 |
Accrued liability (asset) associated with guarantee | 0 | 0 |
Asset Values | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | 77,197 | 72,585 |
Fair value of related collateral | 77,760 | 73,634 |
Accrued liability (asset) associated with guarantee | (5) | (7) |
Serviced Mortgage Loans | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | 1,371 | 1,200 |
First-loss exposure portion of above | 416 | 371 |
Accrued liability (asset) associated with guarantee | 13 | 14 |
Other Guarantees | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Guarantee obligation - maximum exposure | 58 | 324 |
Accrued liability (asset) associated with guarantee | 3 | 4 |
Commercial mortgage and other loans | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Total outstanding mortgage loan commitments | 1,984 | 2,272 |
Portion of commitment where prearrangement to sell to investor exists | 454 | 721 |
Investments Excluding Commercial Mortgage Loans | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Expected to be funded from the general account and other operations outside the separate accounts | 6,002 | 3,787 |
Expected to be funded from separate accounts | 374 | 92 |
Investments Excluding Commercial Mortgage Loans | Fosun Group | ||
Commitments Gurantees And Contingent Liabilities [Line Items] | ||
Expected to be funded from the general account and other operations outside the separate accounts | $ 121 | $ 152 |
Commitments and Guarantees, 177
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Litigation Narrative) (Details) $ in Millions | 1 Months Ended | 31 Months Ended | |||||||||
Dec. 31, 2015 | Oct. 31, 2015plaintiff | Jul. 31, 2015case | Jun. 30, 2014caseplaintiff | May 31, 2013plaintiff | Feb. 29, 2012state_and_jurisdiction | Jan. 31, 2012state_and_jurisdiction | Mar. 31, 2008state | Dec. 31, 2016USD ($) | Jul. 31, 2014defendant | May 31, 2014defendant | |
Litigation [Line Items] | |||||||||||
Wells Fargo Annualized New Business Premiums | $ | $ 4 | ||||||||||
Positive Outcome of Litigation | Residential mortgage-backed securities | Trusts Rights | |||||||||||
Litigation [Line Items] | |||||||||||
Number of other institutions filing actions along with Company | 9 | ||||||||||
Number of Trusts represented in legal action filed by the Company (more than) | 2,200 | ||||||||||
Number of defendants in legal action filed by the company | defendant | 6 | ||||||||||
Positive Outcome of Litigation | Residential mortgage-backed securities | New York State Court | Trusts Rights | |||||||||||
Litigation [Line Items] | |||||||||||
Number of actions filed by the Company | case | 6 | ||||||||||
Positive Outcome of Litigation | LIBOR | United States District Court | |||||||||||
Litigation [Line Items] | |||||||||||
Number of defendants in legal action filed by the company | defendant | 10 | ||||||||||
Huffman v. The Prudential Insurance Company of America | |||||||||||
Litigation [Line Items] | |||||||||||
Number of Complaints Filed Against The Company | case | 2 | ||||||||||
Wood II, et al. v. PRIAC | |||||||||||
Litigation [Line Items] | |||||||||||
Loss Contingency, Claim Period | 6 years | ||||||||||
North Valley GI Medical Group v. Prudential Investments LLC | |||||||||||
Litigation [Line Items] | |||||||||||
Loss Contingency, Number of Plaintiffs | 6 | ||||||||||
Bouder v. Prudential Financial, Inc. And Prudential Insurance Company Of America | |||||||||||
Litigation [Line Items] | |||||||||||
Loss Contingency, Alleged Violations Of Overtime And Wage Payment Laws, Number Of States | state | 9 | ||||||||||
Litigation And Regulatory Matters | |||||||||||
Litigation [Line Items] | |||||||||||
Estimate of possible losses in excess of accruals (less than) | $ | $ 250 | ||||||||||
Litigation And Regulatory Matters | Abandoned Property | Sterling Heights | |||||||||||
Litigation [Line Items] | |||||||||||
Number of lead plaintiffs added | 3 | ||||||||||
Litigation And Regulatory Matters | Abandoned Property | Global Resolution Agreement | |||||||||||
Litigation [Line Items] | |||||||||||
Number of states accepting agreement | state_and_jurisdiction | 20 | 20 |
Quarterly Results of Operati178
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Quarterly Financial Data [Abstract] | ||||||||||||||
Total revenues | $ 13,050 | $ 16,961 | $ 14,439 | $ 14,329 | $ 14,256 | $ 13,599 | $ 13,712 | $ 15,552 | $ 58,779 | $ 57,119 | $ 54,105 | |||
Total benefits and expenses | 12,733 | 14,646 | 13,098 | 12,597 | 13,413 | 11,550 | 11,583 | 12,804 | 53,074 | 49,350 | 52,346 | |||
Income (loss) from continuing operations | 293 | 1,832 | 925 | 1,369 | 740 | 1,467 | 1,459 | 2,046 | 4,419 | 5,712 | 1,426 | |||
Income (loss) from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12 | |||
NET INCOME (LOSS) | 293 | 1,832 | 925 | 1,369 | 740 | 1,467 | 1,459 | 2,046 | 4,419 | 5,712 | 1,438 | |||
Less: Income attributable to noncontrolling interests | 9 | 5 | 4 | 33 | 5 | 2 | 53 | 10 | 51 | 70 | 57 | |||
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC | $ 284 | $ 1,827 | $ 921 | $ 1,336 | $ 735 | $ 1,465 | $ 1,406 | $ 2,036 | $ 4,368 | $ 5,642 | $ 1,381 | |||
Basic earnings per share-Common Stock: | ||||||||||||||
Income (loss) from continuing operations attributable to Prudential Financial, Inc. (in dollars per share) | $ 0.65 | $ 4.14 | $ 2.06 | $ 2.97 | $ 1.62 | $ 3.22 | $ 3.07 | $ 4.44 | $ 9.85 | [1] | $ 12.37 | [1] | $ 3.23 | [1] |
Basic Income from discontinued operations attributable to Prudential Financial, Inc. per share of Common Stock (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | [1] | 0 | [1] | 0.02 | [1] |
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | 0.65 | 4.14 | 2.06 | 2.97 | 1.62 | 3.22 | 3.07 | 4.44 | 9.85 | [1] | 12.37 | [1] | 3.25 | [1] |
Diluted earnings per share-Common Stock: | ||||||||||||||
Diluted Income from continuing operations attributable to Prudential Financial, Inc. per share of Common Stock (in dollars per share) | 0.65 | 4.07 | 2.04 | 2.93 | 1.60 | 3.16 | 3.03 | 4.37 | 9.71 | [1] | 12.17 | [1] | 3.20 | [1] |
Diluted Income from discontinued operations attributable to Prudential Financial, Inc. per share of Common Stock (in dollars per share) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | [1] | 0 | [1] | 0.03 | [1] |
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ 0.65 | $ 4.07 | $ 2.04 | $ 2.93 | $ 1.60 | $ 3.16 | $ 3.03 | $ 4.37 | $ 9.71 | [1] | $ 12.17 | [1] | $ 3.23 | [1] |
[1] | For 2016 and 2015, represents consolidated earnings per share of Common Stock. For 2014, represents earnings of the Company’s former Financial Services Businesses per share of Common Stock. See Note 16 for additional information. |
Quarterly Results of Operati179
Quarterly Results of Operations (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2016 | |
Universal Life | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Out of period adjustments | $ (148) | $ (141) | $ (33) | |
Income From Continuing Operations Before Income Taxes And Equity In Earnings Of Operating Joint Ventures | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Out of period adjustments | $ (153) | $ (134) | $ (193) | $ 41 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - $ / shares | Feb. 08, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | |||||
Dividends declared per share of Common Stock (in dollars per share) | [1] | $ 2.80 | $ 2.44 | $ 2.17 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share of Common Stock (in dollars per share) | $ 0.75 | ||||
[1] | For 2016 and 2015, represents consolidated earnings per share of Common Stock. For 2014, represents earnings of the Company’s former Financial Services Businesses per share of Common Stock. See Note 16 for additional information. |
Schedule I - Summary of Inve181
Schedule I - Summary of Investments Other Than investments in Related Parties (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Investment Details [Line Items] | |
Cost | $ 412,803 |
Amount shown in the Balance Sheet | 444,240 |
Total Commercial Mortgage And Other Loans | 52,147 |
Uncollateralized Loans | 632 |
Equity securities | |
Investment Details [Line Items] | |
Cost | 7,149 |
Fair Value | 9,748 |
Amount shown in the Balance Sheet | 9,748 |
Fixed maturities, available-for-sale | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 292,581 |
Fair Value | 321,419 |
Amount shown in the Balance Sheet | 321,419 |
Fixed maturities, available-for-sale | Redeemable preferred stock | |
Investment Details [Line Items] | |
Cost | 500 |
Fair Value | 539 |
Amount shown in the Balance Sheet | 539 |
Fixed maturities, available-for-sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 21,505 |
Fair Value | 23,784 |
Amount shown in the Balance Sheet | 23,784 |
Fixed maturities, available-for-sale | Obligations of U.S. states and their political subdivisions | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 9,060 |
Fair Value | 9,692 |
Amount shown in the Balance Sheet | 9,692 |
Fixed maturities, available-for-sale | Foreign government bonds | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 79,862 |
Fair Value | 96,256 |
Amount shown in the Balance Sheet | 96,256 |
Fixed maturities, available-for-sale | Asset-backed securities | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 11,759 |
Fair Value | 11,935 |
Amount shown in the Balance Sheet | 11,935 |
Fixed maturities, available-for-sale | Residential mortgage-backed securities | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 4,308 |
Fair Value | 4,532 |
Amount shown in the Balance Sheet | 4,532 |
Fixed maturities, available-for-sale | Commercial mortgage-backed securities | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 12,589 |
Fair Value | 12,704 |
Amount shown in the Balance Sheet | 12,704 |
Fixed maturities, available-for-sale | Public utilities | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 23,101 |
Fair Value | 24,606 |
Amount shown in the Balance Sheet | 24,606 |
Fixed maturities, available-for-sale | Certificates of deposit | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 31 |
Fair Value | 30 |
Amount shown in the Balance Sheet | 30 |
Fixed maturities, available-for-sale | All other corporate bonds | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 129,866 |
Fair Value | 137,341 |
Amount shown in the Balance Sheet | 137,341 |
Fixed maturities, held-to-maturity | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 2,144 |
Fair Value | 2,524 |
Amount shown in the Balance Sheet | 2,144 |
Fixed maturities, held-to-maturity | Foreign government bonds | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 839 |
Fair Value | 1,101 |
Amount shown in the Balance Sheet | 839 |
Fixed maturities, held-to-maturity | Residential mortgage-backed securities | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 573 |
Fair Value | 616 |
Amount shown in the Balance Sheet | 573 |
Fixed maturities, held-to-maturity | Commercial mortgage-backed securities | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 0 |
Fair Value | 0 |
Amount shown in the Balance Sheet | 0 |
Fixed maturities, held-to-maturity | All other corporate bonds | Fixed Maturities | |
Investment Details [Line Items] | |
Cost | 732 |
Fair Value | 807 |
Amount shown in the Balance Sheet | 732 |
Trading account assets supporting insurance liabilities | |
Investment Details [Line Items] | |
Cost | 21,840 |
Amount shown in the Balance Sheet | 21,840 |
Other trading account assets | |
Investment Details [Line Items] | |
Cost | 5,764 |
Amount shown in the Balance Sheet | 5,764 |
Commercial mortgage and other loans | |
Investment Details [Line Items] | |
Cost | 52,779 |
Amount shown in the Balance Sheet | 52,779 |
Policy loans | |
Investment Details [Line Items] | |
Cost | 11,755 |
Amount shown in the Balance Sheet | 11,755 |
Short-term investments | |
Investment Details [Line Items] | |
Cost | 7,508 |
Amount shown in the Balance Sheet | 7,508 |
Other long-term investments | |
Investment Details [Line Items] | |
Cost | 11,283 |
Amount shown in the Balance Sheet | 11,283 |
Common Stock | Public utilities | Equity securities | |
Investment Details [Line Items] | |
Cost | 108 |
Fair Value | 138 |
Amount shown in the Balance Sheet | 138 |
Common Stock | Banks, trust and insurance companies | Equity securities | |
Investment Details [Line Items] | |
Cost | 1,182 |
Fair Value | 1,852 |
Amount shown in the Balance Sheet | 1,852 |
Common Stock | Industrial, miscellaneous and other | Equity securities | |
Investment Details [Line Items] | |
Cost | 5,845 |
Fair Value | 7,745 |
Amount shown in the Balance Sheet | 7,745 |
Nonredeemable preferred stocks | Equity securities | |
Investment Details [Line Items] | |
Cost | 14 |
Fair Value | 13 |
Amount shown in the Balance Sheet | $ 13 |
Schedule II - Condensed Fina182
Schedule II - Condensed Financial Information of Registrant (Condensed Statements of Financial Position) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
ASSETS | |||||||
Fixed maturities, available for sale, at fair value (amortized cost: 2016- $1,105; 2015- $0) | [1] | $ 321,419 | $ 290,323 | ||||
Total investments | 444,240 | 417,192 | |||||
Cash and cash equivalents | 14,127 | [1] | 17,612 | [1] | $ 14,918 | $ 11,439 | |
Investment in subsidiaries | 994 | 341 | 325 | ||||
Other assets | [1],[2] | 14,780 | 14,225 | ||||
TOTAL ASSETS | 783,962 | 757,255 | |||||
LIABILITIES | |||||||
Short-term debt | 1,133 | 1,216 | |||||
Long-term debt | [2] | 18,041 | 19,594 | ||||
Income taxes payable | 10,412 | 8,714 | |||||
Other liabilities | [1] | 14,739 | 13,517 | ||||
Total liabilities | 737,874 | 715,332 | |||||
EQUITY | |||||||
Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued) | 0 | 0 | |||||
Common Stock ($.01 par value; 1,500,000,000 shares authorized; 660,111,339 shares issued as of both December 31, 2016 and 2015) | 6 | 6 | |||||
Additional paid-in capital | 24,606 | 24,482 | |||||
Common Stock held in treasury, at cost (230,537,166 and 213,009,970 shares as of December 31, 2016 and 2015, respectively) | (15,316) | (13,814) | |||||
Accumulated other comprehensive income (loss) | 14,621 | 12,285 | |||||
Retained earnings | 21,946 | 18,931 | |||||
Total equity | 45,863 | 41,890 | |||||
TOTAL LIABILITIES AND EQUITY | 783,962 | 757,255 | |||||
Fixed maturities, available-for-sale, amortized cost | $ 292,581 | $ 265,416 | |||||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | |||||
Preferred Stock, shares issued | 0 | 0 | |||||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 | |||||
Common stock, shares issued | 660,111,339 | 660,111,339 | |||||
Common Stock held in treasury, shares | 230,537,166 | 213,009,970 | |||||
Prudential Financial | |||||||
ASSETS | |||||||
Investment contracts from subsidiaries | $ 1 | $ 1 | |||||
Fixed maturities, available for sale, at fair value (amortized cost: 2016- $1,105; 2015- $0) | 1,071 | 0 | |||||
Other investments | 3,215 | 1,691 | |||||
Total investments | 4,287 | 1,692 | |||||
Cash and cash equivalents | 1,116 | 9,437 | $ 8,692 | $ 4,370 | |||
Due from subsidiaries | 1,836 | 1,723 | |||||
Loans receivable from subsidiaries | 6,719 | 6,122 | |||||
Investment in subsidiaries | 54,422 | 50,625 | |||||
Property, plant and equipment | 559 | 579 | |||||
Other assets | [2] | 384 | 595 | ||||
TOTAL ASSETS | 69,323 | 70,773 | |||||
LIABILITIES | |||||||
Due to subsidiaries | 2,585 | 7,664 | |||||
Loans payable to subsidiaries | 4,295 | 3,248 | |||||
Short-term debt | 535 | 831 | |||||
Long-term debt | 15,389 | [2] | 16,354 | ||||
Income taxes payable | 0 | 0 | |||||
Other liabilities | 656 | 786 | |||||
Total liabilities | 23,460 | 28,883 | |||||
EQUITY | |||||||
Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued) | 0 | 0 | |||||
Common Stock ($.01 par value; 1,500,000,000 shares authorized; 660,111,339 shares issued as of both December 31, 2016 and 2015) | 6 | 6 | |||||
Additional paid-in capital | 24,606 | 24,482 | |||||
Common Stock held in treasury, at cost (230,537,166 and 213,009,970 shares as of December 31, 2016 and 2015, respectively) | (15,316) | (13,814) | |||||
Accumulated other comprehensive income (loss) | 14,621 | 12,285 | |||||
Retained earnings | 21,946 | 18,931 | |||||
Total equity | 45,863 | 41,890 | |||||
TOTAL LIABILITIES AND EQUITY | 69,323 | 70,773 | |||||
Fixed maturities, available-for-sale, amortized cost | $ 1,105 | $ 0 | |||||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | |||||
Preferred Stock, shares issued | 0 | 0 | |||||
Prudential Financial | Common Stock | |||||||
EQUITY | |||||||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 | |||||
Common stock, shares issued | 660,111,339 | 660,111,339 | |||||
Common Stock held in treasury, shares | 230,537,166 | 213,009,970 | |||||
[1] | See Note 5 for details of balances associated with variable interest entities. | ||||||
[2] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Schedule II - Condensed Fina183
Schedule II - Condensed Financial Information of Registrant (Condensed Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUES | |||||||||||
Net investment income | $ 15,520 | $ 14,829 | $ 15,256 | ||||||||
Realized investment gains (losses), net | 2,194 | 4,025 | 1,636 | ||||||||
Other income (loss) | 443 | 0 | (1,978) | ||||||||
Total revenues | $ 13,050 | $ 16,961 | $ 14,439 | $ 14,329 | $ 14,256 | $ 13,599 | $ 13,712 | $ 15,552 | 58,779 | 57,119 | 54,105 |
EXPENSES | |||||||||||
Interest expense | 1,320 | 1,306 | 1,908 | ||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES | 5,705 | 7,769 | 1,759 | ||||||||
Total income tax expense (benefit) | 1,335 | 2,072 | 349 | ||||||||
Equity in earnings of subsidiaries | 49 | 15 | 16 | ||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 293 | 1,832 | 925 | 1,369 | 740 | 1,467 | 1,459 | 2,046 | 4,419 | 5,712 | 1,426 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12 |
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC | $ 284 | $ 1,827 | $ 921 | $ 1,336 | $ 735 | $ 1,465 | $ 1,406 | $ 2,036 | 4,368 | 5,642 | 1,381 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 6,704 | 1,877 | 8,750 | ||||||||
Prudential Financial | |||||||||||
REVENUES | |||||||||||
Net investment income | 61 | 19 | 7 | ||||||||
Realized investment gains (losses), net | (126) | (98) | (793) | ||||||||
Affiliated interest revenue | 353 | 353 | 417 | ||||||||
Other income (loss) | (2) | 28 | 146 | ||||||||
Total revenues | 286 | 302 | (223) | ||||||||
EXPENSES | |||||||||||
General and administrative expenses | 101 | 170 | 59 | ||||||||
Interest expense | 1,106 | 1,080 | 1,075 | ||||||||
Total expenses | 1,207 | 1,250 | 1,134 | ||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES | (921) | (948) | (1,357) | ||||||||
Total income tax expense (benefit) | (320) | (396) | (492) | ||||||||
LOSS FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES | (601) | (552) | (865) | ||||||||
Equity in earnings of subsidiaries | 4,969 | 6,194 | 2,246 | ||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 4,368 | 5,642 | 1,381 | ||||||||
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC | 4,368 | 5,642 | 1,381 | ||||||||
Other Comprehensive Income (loss) | 2,336 | (3,765) | 7,369 | ||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 6,704 | $ 1,877 | $ 8,750 |
Schedule II - Condensed Fina184
Schedule II - Condensed Financial Information of Registrant (Condensed Statements of Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
NET INCOME (LOSS) | $ 293 | $ 1,832 | $ 925 | $ 1,369 | $ 740 | $ 1,467 | $ 1,459 | $ 2,046 | $ 4,419 | $ 5,712 | $ 1,438 | ||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||||
Realized investment (gains) losses, net | (2,194) | (4,025) | (1,636) | ||||||||||||||
Dividends received from subsidiaries | 60 | 27 | 27 | ||||||||||||||
Change in: | |||||||||||||||||
Other, operating | [1] | (877) | (581) | 1,309 | |||||||||||||
Cash flows from (used in) operating activities | 14,778 | 13,895 | 19,396 | ||||||||||||||
Proceeds from the sale/maturity of: | |||||||||||||||||
Short-term investments | 43,700 | 77,021 | 73,823 | ||||||||||||||
Payments for the purchase of: | |||||||||||||||||
Fixed maturities, available-for-sale | (66,857) | (47,606) | (57,467) | ||||||||||||||
Short-term investments | (43,370) | (76,622) | (74,295) | ||||||||||||||
Other, investing | (227) | 106 | 227 | ||||||||||||||
Cash flows from (used in) investing activities | (21,551) | (7,746) | (17,088) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Cash dividends paid on Common Stock | (1,300) | (1,117) | (1,008) | ||||||||||||||
Common Stock acquired | (2,000) | (1,013) | (1,000) | ||||||||||||||
Common Stock reissued for exercise of stock options | 426 | 209 | 269 | ||||||||||||||
Proceeds from the issuance of debt (maturities longer than 90 days) | 2,742 | 5,166 | 7,955 | ||||||||||||||
Repayments of debt (maturities longer than 90 days) | (2,753) | (4,957) | (7,384) | ||||||||||||||
Net change in financing arrangements (maturities 90 days or less) | 292 | 68 | (27) | ||||||||||||||
Excess tax benefits from share-based payment arrangements | 21 | 19 | 26 | ||||||||||||||
Other, financing | (131) | (221) | 133 | ||||||||||||||
Cash flows from (used in) financing activities | 3,238 | (3,524) | 1,629 | ||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (3,485) | 2,694 | 3,479 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 17,612 | [2] | 14,918 | 17,612 | [2] | 14,918 | 11,439 | ||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 14,127 | [2] | 17,612 | [2] | 14,127 | [2] | 17,612 | [2] | 14,918 | ||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||||||||
Cash paid during the period for interest | 1,257 | 1,324 | 1,883 | ||||||||||||||
Cash paid (refunds received) during the period for taxes | 770 | 1,083 | 109 | ||||||||||||||
Common Class B Stock | |||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Cash dividends paid on Common Stock | 0 | 0 | (19) | ||||||||||||||
Common Stock acquired | (119) | (651) | 0 | ||||||||||||||
Prudential Financial | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
NET INCOME (LOSS) | 4,368 | 5,642 | 1,381 | ||||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||||
Equity in earnings of subsidiaries | (4,969) | (6,194) | (2,246) | ||||||||||||||
Realized investment (gains) losses, net | 126 | 98 | 793 | ||||||||||||||
Dividends received from subsidiaries | 2,828 | 4,557 | 2,218 | ||||||||||||||
Property, plant and equipment | (13) | (579) | 0 | ||||||||||||||
Change in: | |||||||||||||||||
Due to/from subsidiaries, net | (5,109) | (493) | 5,718 | ||||||||||||||
Other, operating | 167 | (380) | 647 | ||||||||||||||
Cash flows from (used in) operating activities | (2,602) | 2,651 | 8,511 | ||||||||||||||
Proceeds from the sale/maturity of: | |||||||||||||||||
Short-term investments | 17,575 | 13,700 | 10,207 | ||||||||||||||
Payments for the purchase of: | |||||||||||||||||
Fixed maturities, available-for-sale | (1,106) | 0 | 0 | ||||||||||||||
Short-term investments | (19,111) | (13,002) | (11,394) | ||||||||||||||
Capital contributions to subsidiaries | (2,018) | (2,545) | (3,065) | ||||||||||||||
Returns of capital contributions from subsidiaries | 2,755 | 75 | 258 | ||||||||||||||
Loans to subsidiaries, net of maturities | (596) | 2,056 | 925 | ||||||||||||||
Other, investing | 1 | 244 | 21 | ||||||||||||||
Cash flows from (used in) investing activities | (2,500) | 528 | (3,048) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Common Stock acquired | (2,000) | (1,664) | (999) | ||||||||||||||
Common Stock reissued for exercise of stock options | 426 | 209 | 269 | ||||||||||||||
Proceeds from the issuance of debt (maturities longer than 90 days) | 30 | 1,332 | 2,063 | ||||||||||||||
Repayments of debt (maturities longer than 90 days) | (1,319) | (2,404) | (1,659) | ||||||||||||||
Repayments of loans from subsidiaries | (390) | (102) | (241) | ||||||||||||||
Proceeds from loans payable to subsidiaries | 1,405 | 1,316 | 558 | ||||||||||||||
Net change in financing arrangements (maturities 90 days or less) | 14 | 8 | (94) | ||||||||||||||
Excess tax benefits from share-based payment arrangements | 10 | 3 | 7 | ||||||||||||||
Other, financing | (95) | (15) | (18) | ||||||||||||||
Cash flows from (used in) financing activities | (3,219) | (2,434) | (1,141) | ||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (8,321) | 745 | 4,322 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $ 9,437 | $ 8,692 | 9,437 | 8,692 | 4,370 | ||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 1,116 | $ 9,437 | 1,116 | 9,437 | 8,692 | ||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||||||||
Cash paid during the period for interest | 1,002 | 1,048 | 1,036 | ||||||||||||||
Cash paid (refunds received) during the period for taxes | (544) | 46 | (1,231) | ||||||||||||||
NON-CASH TRANSACTIONS DURING THE YEAR | |||||||||||||||||
Non-cash capital contributions to subsidiaries | (4,158) | 1,453 | 100 | ||||||||||||||
Non-cash dividends from subsidiaries | 4,142 | 1,335 | 650 | ||||||||||||||
Treasury Stock shares issued for stock-based compensation programs | 115 | 115 | 100 | ||||||||||||||
Prudential Financial | Common Stock | |||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Cash dividends paid on Common Stock | (1,300) | (1,117) | (1,008) | ||||||||||||||
Prudential Financial | Common Class B Stock | |||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Cash dividends paid on Common Stock | $ 0 | $ 0 | $ (19) | ||||||||||||||
[1] | Prior period amounts have been reclassified to conform to current period presentation. | ||||||||||||||||
[2] | See Note 5 for details of balances associated with variable interest entities. |
Schedule II - Condensed Fina185
Schedule II - Condensed Financial Information of Registrant (Short and Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 1,133 | $ 1,216 | ||
Long-term debt | [1] | $ 18,041 | $ 19,594 | |
Commercial Paper, Weighted Average Interest Rate | 0.43% | 0.16% | ||
Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 590 | $ 464 | ||
Current portion of long-term debt | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | 543 | 752 | ||
Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 5,817 | 5,811 | ||
Minimum | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.20% | |||
Maximum | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 8.88% | |||
Prudential Financial | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 535 | 831 | ||
Long-term debt | 15,389 | [1] | 16,354 | |
Prudential Financial | Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 65 | $ 80 | ||
Commercial Paper, Weighted Average Interest Rate | 0.63% | 0.40% | ||
Prudential Financial | Current portion of long-term debt | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | $ 470 | $ 751 | ||
Prudential Financial | Fixed rate debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 9,064 | 10,035 | ||
Prudential Financial | Floating rate debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 508 | 508 | ||
Prudential Financial | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 5,817 | $ 5,811 | ||
Prudential Financial | Minimum | Fixed rate debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 2.30% | |||
Prudential Financial | Minimum | Floating rate debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.14% | |||
Prudential Financial | Minimum | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 5.20% | |||
Prudential Financial | Maximum | Fixed rate debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 7.38% | |||
Prudential Financial | Maximum | Floating rate debt | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 4.39% | |||
Prudential Financial | Maximum | Junior subordinated notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 8.88% | |||
[1] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Schedule II - Condensed Fina186
Schedule II - Condensed Financial Information of Registrant (Contractual Maturities for Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | ||||
2,018 | $ 1,330 | |||
2,019 | 1,684 | |||
2,020 | 1,253 | |||
2,021 | 554 | |||
2022 and thereafter | 13,220 | |||
Long-term debt | [1] | 18,041 | $ 19,594 | |
Prudential Financial | ||||
Debt Instrument [Line Items] | ||||
2,018 | 831 | |||
2,019 | 1,100 | |||
2,020 | 1,179 | |||
2,021 | 400 | |||
2022 and thereafter | 11,879 | |||
Long-term debt | $ 15,389 | [1] | $ 16,354 | |
[1] | Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03. See Note 2 for additional information. |
Schedule II - Condensed Fina187
Schedule II - Condensed Financial Information of Registrant (Dividends and Returns of Capital) (Details) - Prudential Financial - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | $ 5,584 | $ 4,632 | $ 2,476 |
Pruco Reinsurance | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 1,298 | 0 | 0 |
Prudential Annuities Holding Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 98 | 102 | 102 |
International Insurance and Investments Holding Companies | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 1,171 | 1,818 | 966 |
International Insurance and Investments Holding Companies | Scenario, Previously Reported | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 526 | ||
Prudential Insurance Company of America | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 900 | 1,950 | 400 |
Prudential Asset Management Holding Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 746 | 266 | 578 |
Prudential Asset Management Holding Company | Scenario, Previously Reported | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 588 | ||
Prudential Annuities Life Assurance Corporation | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 1,140 | 450 | 342 |
Other Holding Companies | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | $ 231 | $ 46 | 88 |
Other Holding Companies | Scenario, Previously Reported | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | $ 620 |
Schedule II - Condensed Fina188
Schedule II - Condensed Financial Information of Registrant (Narratives) (Details) - USD ($) | Jan. 02, 2015 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule II Narrative [Line Items] | ||||||
Increase (Decrease) In Interest Expense, Derivative Instruments | $ 1,320,000,000 | $ 1,306,000,000 | $ 1,908,000,000 | |||
Stock repurchased and canceled during period, value | 119,000,000 | 0 | ||||
Prudential Financial | ||||||
Schedule II Narrative [Line Items] | ||||||
Increase (Decrease) In Interest Expense, Derivative Instruments | 1,106,000,000 | 1,080,000,000 | 1,075,000,000 | |||
Derivatives | Prudential Financial | ||||||
Schedule II Narrative [Line Items] | ||||||
Increase (Decrease) In Interest Expense, Derivative Instruments | 2,000,000 | 3,000,000 | $ 2,000,000 | |||
Prudential Financial Subsidiaries | Commercial Paper | Prudential Financial | ||||||
Schedule II Narrative [Line Items] | ||||||
Guarantee obligation | 525,000,000 | |||||
Prudential Financial Subsidiaries | Investee Debt | Prudential Financial | ||||||
Schedule II Narrative [Line Items] | ||||||
Guarantee obligation | 3,900,000,000 | |||||
Prudential Financial Subsidiaries | Commitments to Extend Credit | Prudential Financial | ||||||
Schedule II Narrative [Line Items] | ||||||
Guarantee obligation | $ 500,000,000 | |||||
Held In Treasury | Common Class B Stock | ||||||
Schedule II Narrative [Line Items] | ||||||
Stock repurchased and canceled during period, value | $ 651,000,000 | $ 770,000,000 | (651,000,000) | |||
Held In Treasury | Common Class B Stock | Prudential Financial | ||||||
Schedule II Narrative [Line Items] | ||||||
Stock repurchased and canceled during period, value | 651,000,000 | 770,000,000 | ||||
Retained Earnings | ||||||
Schedule II Narrative [Line Items] | ||||||
Stock repurchased and canceled during period, value | (484,000,000) | (119,000,000) | $ 119,000,000 | 484,000,000 | ||
Retained Earnings | Prudential Financial | ||||||
Schedule II Narrative [Line Items] | ||||||
Stock repurchased and canceled during period, value | (484,000,000) | $ (119,000,000) | ||||
Additional Paid-in Capital | ||||||
Schedule II Narrative [Line Items] | ||||||
Stock repurchased and canceled during period, value | (167,000,000) | $ 167,000,000 | ||||
Additional Paid-in Capital | Prudential Financial | ||||||
Schedule II Narrative [Line Items] | ||||||
Stock repurchased and canceled during period, value | $ (167,000,000) |
Schedule III - Supplementary189
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | $ 17,661 | $ 16,718 | $ 15,971 |
Future Policy Benefits, Losses, Claims, Expenses | 240,611 | 221,769 | 215,174 |
Unearned Premiums | 297 | 2,615 | 2,592 |
Other Policy Claims and Benefits Payable | 150,916 | 142,362 | 143,811 |
Premiums, Policy Charges and Fee Income | 36,870 | 34,493 | 35,472 |
Net Investment Income | 15,520 | 14,829 | 15,256 |
Benefits, Claims, Losses and Settlement Expenses | 39,418 | 36,318 | 38,566 |
Amortization of DAC | 1,877 | 2,120 | 1,973 |
Other Operating Expenses | 11,779 | 10,912 | 11,807 |
Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 15,561 | ||
Future Policy Benefits, Losses, Claims, Expenses | 165,311 | ||
Unearned Premiums | 2,592 | ||
Other Policy Claims and Benefits Payable | 130,958 | ||
Premiums, Policy Charges and Fee Income | 32,768 | ||
Net Investment Income | 12,249 | ||
Benefits, Claims, Losses and Settlement Expenses | 32,469 | ||
Amortization of DAC | 1,936 | ||
Other Operating Expenses | 10,776 | ||
Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 17,325 | 16,345 | |
Future Policy Benefits, Losses, Claims, Expenses | 191,330 | 172,230 | |
Unearned Premiums | 297 | 2,615 | |
Other Policy Claims and Benefits Payable | 140,123 | 131,658 | |
Premiums, Policy Charges and Fee Income | 34,250 | 31,824 | |
Net Investment Income | 12,942 | 12,176 | |
Benefits, Claims, Losses and Settlement Expenses | 34,061 | 30,688 | |
Amortization of DAC | 1,840 | 2,083 | |
Other Operating Expenses | 11,372 | 10,477 | |
Closed Block Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 410 | ||
Future Policy Benefits, Losses, Claims, Expenses | 49,863 | ||
Unearned Premiums | 0 | ||
Other Policy Claims and Benefits Payable | 12,853 | ||
Premiums, Policy Charges and Fee Income | 2,704 | ||
Net Investment Income | 3,007 | ||
Benefits, Claims, Losses and Settlement Expenses | 6,097 | ||
Amortization of DAC | 37 | ||
Other Operating Expenses | 1,031 | ||
U.S. Retirement Solutions and Investment Management division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 5,493 | ||
Future Policy Benefits, Losses, Claims, Expenses | 59,457 | ||
Unearned Premiums | 1,848 | ||
Other Policy Claims and Benefits Payable | 56,158 | ||
Premiums, Policy Charges and Fee Income | 9,798 | ||
Net Investment Income | 4,973 | ||
Benefits, Claims, Losses and Settlement Expenses | 10,935 | ||
Amortization of DAC | 656 | ||
Other Operating Expenses | 4,787 | ||
U.S. Retirement Solutions and Investment Management division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 5,003 | 5,048 | |
Future Policy Benefits, Losses, Claims, Expenses | 65,972 | 61,750 | |
Unearned Premiums | 0 | 1,835 | |
Other Policy Claims and Benefits Payable | 58,371 | 55,833 | |
Premiums, Policy Charges and Fee Income | 10,529 | 9,769 | |
Net Investment Income | 5,055 | 4,815 | |
Benefits, Claims, Losses and Settlement Expenses | 11,572 | 10,165 | |
Amortization of DAC | 601 | 1,025 | |
Other Operating Expenses | 4,875 | 4,867 | |
U.S. Individual Life and Group Insurance division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 4,233 | ||
Future Policy Benefits, Losses, Claims, Expenses | 14,149 | ||
Unearned Premiums | 201 | ||
Other Policy Claims and Benefits Payable | 29,805 | ||
Premiums, Policy Charges and Fee Income | 7,699 | ||
Net Investment Income | 2,220 | ||
Benefits, Claims, Losses and Settlement Expenses | 7,508 | ||
Amortization of DAC | 376 | ||
Other Operating Expenses | 2,608 | ||
U.S. Individual Life and Group Insurance division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 5,454 | 5,064 | |
Future Policy Benefits, Losses, Claims, Expenses | 16,767 | 14,847 | |
Unearned Premiums | 220 | 206 | |
Other Policy Claims and Benefits Payable | 33,879 | 31,994 | |
Premiums, Policy Charges and Fee Income | 7,590 | 7,412 | |
Net Investment Income | 2,425 | 2,252 | |
Benefits, Claims, Losses and Settlement Expenses | 7,716 | 7,090 | |
Amortization of DAC | 222 | 139 | |
Other Operating Expenses | 2,751 | 2,345 | |
International Insurance division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 6,156 | ||
Future Policy Benefits, Losses, Claims, Expenses | 87,744 | ||
Unearned Premiums | 543 | ||
Other Policy Claims and Benefits Payable | 44,977 | ||
Premiums, Policy Charges and Fee Income | 14,961 | ||
Net Investment Income | 4,434 | ||
Benefits, Claims, Losses and Settlement Expenses | 13,432 | ||
Amortization of DAC | 962 | ||
Other Operating Expenses | 2,608 | ||
International Insurance division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 7,208 | 6,554 | |
Future Policy Benefits, Losses, Claims, Expenses | 103,853 | 91,357 | |
Unearned Premiums | 77 | 574 | |
Other Policy Claims and Benefits Payable | 47,862 | 43,828 | |
Premiums, Policy Charges and Fee Income | 15,813 | 14,311 | |
Net Investment Income | 4,759 | 4,383 | |
Benefits, Claims, Losses and Settlement Expenses | 14,155 | 12,809 | |
Amortization of DAC | 1,065 | 987 | |
Other Operating Expenses | 2,677 | 2,396 | |
Individual annuities | U.S. Retirement Solutions and Investment Management division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 5,376 | ||
Future Policy Benefits, Losses, Claims, Expenses | 10,220 | ||
Unearned Premiums | 0 | ||
Other Policy Claims and Benefits Payable | 8,693 | ||
Premiums, Policy Charges and Fee Income | 2,785 | ||
Net Investment Income | 615 | ||
Benefits, Claims, Losses and Settlement Expenses | 1,017 | ||
Amortization of DAC | 603 | ||
Other Operating Expenses | 1,791 | ||
Individual annuities | U.S. Retirement Solutions and Investment Management division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 4,871 | 4,915 | |
Future Policy Benefits, Losses, Claims, Expenses | 10,311 | 10,486 | |
Unearned Premiums | 0 | 0 | |
Other Policy Claims and Benefits Payable | 8,601 | 8,720 | |
Premiums, Policy Charges and Fee Income | 2,721 | 2,823 | |
Net Investment Income | 700 | 594 | |
Benefits, Claims, Losses and Settlement Expenses | 614 | 864 | |
Amortization of DAC | 462 | 940 | |
Other Operating Expenses | 1,749 | 1,757 | |
Retirement | U.S. Retirement Solutions and Investment Management division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 117 | ||
Future Policy Benefits, Losses, Claims, Expenses | 49,237 | ||
Unearned Premiums | 1,848 | ||
Other Policy Claims and Benefits Payable | 47,465 | ||
Premiums, Policy Charges and Fee Income | 7,013 | ||
Net Investment Income | 4,238 | ||
Benefits, Claims, Losses and Settlement Expenses | 9,918 | ||
Amortization of DAC | 33 | ||
Other Operating Expenses | 1,020 | ||
Retirement | U.S. Retirement Solutions and Investment Management division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 132 | 133 | |
Future Policy Benefits, Losses, Claims, Expenses | 55,661 | 51,264 | |
Unearned Premiums | 0 | 1,835 | |
Other Policy Claims and Benefits Payable | 49,770 | 47,113 | |
Premiums, Policy Charges and Fee Income | 7,808 | 6,946 | |
Net Investment Income | 4,275 | 4,110 | |
Benefits, Claims, Losses and Settlement Expenses | 10,958 | 9,301 | |
Amortization of DAC | 124 | 66 | |
Other Operating Expenses | 1,031 | 1,034 | |
Asset Management | U.S. Retirement Solutions and Investment Management division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | ||
Future Policy Benefits, Losses, Claims, Expenses | 0 | ||
Unearned Premiums | 0 | ||
Other Policy Claims and Benefits Payable | 0 | ||
Premiums, Policy Charges and Fee Income | 0 | ||
Net Investment Income | 120 | ||
Benefits, Claims, Losses and Settlement Expenses | 0 | ||
Amortization of DAC | 20 | ||
Other Operating Expenses | 1,976 | ||
Asset Management | U.S. Retirement Solutions and Investment Management division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | 0 | |
Future Policy Benefits, Losses, Claims, Expenses | 0 | 0 | |
Unearned Premiums | 0 | 0 | |
Other Policy Claims and Benefits Payable | 0 | 0 | |
Premiums, Policy Charges and Fee Income | 0 | 0 | |
Net Investment Income | 80 | 111 | |
Benefits, Claims, Losses and Settlement Expenses | 0 | 0 | |
Amortization of DAC | 15 | 19 | |
Other Operating Expenses | 2,095 | 2,076 | |
Individual Life | U.S. Individual Life and Group Insurance division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 4,056 | ||
Future Policy Benefits, Losses, Claims, Expenses | 9,224 | ||
Unearned Premiums | 0 | ||
Other Policy Claims and Benefits Payable | 21,463 | ||
Premiums, Policy Charges and Fee Income | 3,073 | ||
Net Investment Income | 1,610 | ||
Benefits, Claims, Losses and Settlement Expenses | 3,040 | ||
Amortization of DAC | 368 | ||
Other Operating Expenses | 1,745 | ||
Individual Life | U.S. Individual Life and Group Insurance division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 5,279 | 4,883 | |
Future Policy Benefits, Losses, Claims, Expenses | 12,057 | 10,102 | |
Unearned Premiums | 0 | 0 | |
Other Policy Claims and Benefits Payable | 25,021 | 23,425 | |
Premiums, Policy Charges and Fee Income | 2,941 | 2,944 | |
Net Investment Income | 1,815 | 1,679 | |
Benefits, Claims, Losses and Settlement Expenses | 3,414 | 2,961 | |
Amortization of DAC | 216 | 133 | |
Other Operating Expenses | 1,929 | 1,508 | |
Group Insurance | U.S. Individual Life and Group Insurance division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 177 | ||
Future Policy Benefits, Losses, Claims, Expenses | 4,925 | ||
Unearned Premiums | 201 | ||
Other Policy Claims and Benefits Payable | 8,342 | ||
Premiums, Policy Charges and Fee Income | 4,626 | ||
Net Investment Income | 610 | ||
Benefits, Claims, Losses and Settlement Expenses | 4,468 | ||
Amortization of DAC | 8 | ||
Other Operating Expenses | 863 | ||
Group Insurance | U.S. Individual Life and Group Insurance division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 175 | 181 | |
Future Policy Benefits, Losses, Claims, Expenses | 4,710 | 4,745 | |
Unearned Premiums | 220 | 206 | |
Other Policy Claims and Benefits Payable | 8,858 | 8,569 | |
Premiums, Policy Charges and Fee Income | 4,649 | 4,468 | |
Net Investment Income | 610 | 573 | |
Benefits, Claims, Losses and Settlement Expenses | 4,302 | 4,129 | |
Amortization of DAC | 6 | 6 | |
Other Operating Expenses | 822 | 837 | |
International Insurance | International Insurance division | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 6,156 | ||
Future Policy Benefits, Losses, Claims, Expenses | 87,744 | ||
Unearned Premiums | 543 | ||
Other Policy Claims and Benefits Payable | 44,977 | ||
Premiums, Policy Charges and Fee Income | 14,961 | ||
Net Investment Income | 4,434 | ||
Benefits, Claims, Losses and Settlement Expenses | 13,432 | ||
Amortization of DAC | 962 | ||
Other Operating Expenses | 2,608 | ||
International Insurance | International Insurance division | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 7,208 | 6,554 | |
Future Policy Benefits, Losses, Claims, Expenses | 103,853 | 91,357 | |
Unearned Premiums | 77 | 574 | |
Other Policy Claims and Benefits Payable | 47,862 | 43,828 | |
Premiums, Policy Charges and Fee Income | 15,813 | 14,311 | |
Net Investment Income | 4,759 | 4,383 | |
Benefits, Claims, Losses and Settlement Expenses | 14,155 | 12,809 | |
Amortization of DAC | 1,065 | 987 | |
Other Operating Expenses | 2,677 | 2,396 | |
Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 336 | 373 | |
Future Policy Benefits, Losses, Claims, Expenses | 49,281 | 49,539 | |
Unearned Premiums | 0 | 0 | |
Other Policy Claims and Benefits Payable | 10,793 | 10,704 | |
Premiums, Policy Charges and Fee Income | 2,620 | 2,669 | |
Net Investment Income | 2,578 | 2,653 | |
Benefits, Claims, Losses and Settlement Expenses | 5,357 | 5,630 | |
Amortization of DAC | 37 | 37 | |
Other Operating Expenses | 407 | 435 | |
Corporate and Other operations | Financial Services Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | (321) | ||
Future Policy Benefits, Losses, Claims, Expenses | 3,961 | ||
Unearned Premiums | 0 | ||
Other Policy Claims and Benefits Payable | 18 | ||
Premiums, Policy Charges and Fee Income | 310 | ||
Net Investment Income | 622 | ||
Benefits, Claims, Losses and Settlement Expenses | 594 | ||
Amortization of DAC | (58) | ||
Other Operating Expenses | $ 773 | ||
Corporate and Other operations | Total PFI excluding Closed Block division | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | (340) | (321) | |
Future Policy Benefits, Losses, Claims, Expenses | 4,738 | 4,276 | |
Unearned Premiums | 0 | 0 | |
Other Policy Claims and Benefits Payable | 11 | 3 | |
Premiums, Policy Charges and Fee Income | 318 | 332 | |
Net Investment Income | 703 | 726 | |
Benefits, Claims, Losses and Settlement Expenses | 618 | 624 | |
Amortization of DAC | (48) | (68) | |
Other Operating Expenses | $ 1,069 | $ 869 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Face Amount/Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 3,652,206 | $ 3,457,711 | $ 3,492,396 |
Ceded to Other Companies | 706,918 | 642,525 | 633,501 |
Assumed from Other Companies | 218,262 | 235,418 | 245,674 |
Net Amount | $ 3,163,550 | $ 3,050,604 | $ 3,104,569 |
Percentage of Amount Assumed to Net | 6.90% | 7.70% | 7.90% |
Gross Amount | $ 30,654 | $ 27,996 | $ 29,666 |
Ceded to Other Companies | 1,763 | 1,622 | 1,507 |
Assumed from Other Companies | 2,073 | 2,147 | 1,134 |
Premiums | $ 30,964 | $ 28,521 | $ 29,293 |
Percentage of Amount Assumed to Net | 6.70% | 7.50% | 3.90% |
Life Insurance | |||
Reinsurance Face Amount/Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 27,857 | $ 25,346 | $ 26,638 |
Ceded to Other Companies | 1,719 | 1,573 | 1,451 |
Assumed from Other Companies | 2,073 | 2,147 | 1,134 |
Premiums | $ 28,211 | $ 25,920 | $ 26,321 |
Percentage of Amount Assumed to Net | 7.30% | 8.30% | 4.30% |
Accident and Health Insurance | |||
Reinsurance Face Amount/Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 2,797 | $ 2,650 | $ 3,028 |
Ceded to Other Companies | 44 | 49 | 56 |
Assumed from Other Companies | 0 | 0 | 0 |
Premiums | $ 2,753 | $ 2,601 | $ 2,972 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Schedule V - Valuation and Q191
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 245 | $ 396 | $ 451 |
Charged to Costs and Expenses | 68 | 38 | 44 |
Other | (1) | (3) | 0 |
Deductions | 43 | 185 | 96 |
Effect of Foreign Exchange Rates | 0 | (1) | (3) |
Balance at End of Period | 269 | 245 | 396 |
Allowance for losses on commercial mortgage and other loans | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 112 | 119 | 216 |
Charged to Costs and Expenses | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Deductions | 7 | 7 | 96 |
Effect of Foreign Exchange Rates | 1 | 0 | (1) |
Balance at End of Period | 106 | 112 | 119 |
Valuation allowance on deferred tax asset | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 133 | 277 | 235 |
Charged to Costs and Expenses | 68 | 38 | 44 |
Other | (1) | (3) | 0 |
Deductions | 36 | 178 | 0 |
Effect of Foreign Exchange Rates | (1) | (1) | (2) |
Balance at End of Period | $ 163 | $ 133 | $ 277 |