Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 424 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2017-$307,527; 2016-$292,581) | [1] | $ 340,100 | $ 321,419 |
Fixed maturities, held-to-maturity, at amortized cost (fair value: 2017-$2,475; 2016-$2,524) | [1] | 2,084 | 2,144 |
Trading account assets supporting insurance liabilities, at fair value | [1] | 22,126 | 21,840 |
Other trading account assets, at fair value | [1] | 6,210 | 5,764 |
Equity securities, available-for-sale, at fair value (cost: 2017-$7,145; 2016-$7,149) | 9,739 | 9,748 | |
Commercial mortgage and other loans (includes $340 and $519 measured at fair value under the fair value option at September 30, 2017 and December 31, 2016, respectively) | [1] | 55,373 | 52,779 |
Policy loans | 11,765 | 11,755 | |
Other long-term investments (includes $1,886 and $1,556 measured at fair value under the fair value option at September 30, 2017 and December 31, 2016, respectively) | [1] | 11,986 | 11,283 |
Short-term investments | 5,508 | 7,508 | |
Total investments | 464,891 | 444,240 | |
Cash and cash equivalents | [1] | 14,541 | 14,127 |
Accrued investment income | [1] | 3,278 | 3,204 |
Deferred policy acquisition costs | 18,724 | 17,661 | |
Value of business acquired | 1,817 | 2,314 | |
Other assets | [1] | 16,770 | 14,780 |
Separate account assets | 301,110 | 287,636 | |
TOTAL ASSETS | 821,131 | 783,962 | |
LIABILITIES | |||
Future policy benefits | 252,339 | 240,908 | |
Policyholders’ account balances | 148,342 | 145,205 | |
Policyholders’ dividends | 6,327 | 5,711 | |
Securities sold under agreements to repurchase | 8,145 | 7,606 | |
Cash collateral for loaned securities | 4,697 | 4,333 | |
Income taxes | 12,509 | 10,412 | |
Short-term debt | 2,358 | 1,133 | |
Long-term debt | 17,153 | 18,041 | |
Other liabilities | [1] | 16,069 | 14,739 |
Notes issued by consolidated variable interest entities (includes $1,194 and $1,839 measured at fair value under the fair value option at September 30, 2017 and December 31, 2016, respectively) | [1] | 1,517 | 2,150 |
Separate account liabilities | 301,110 | 287,636 | |
Total liabilities | 770,566 | 737,874 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
EQUITY | |||
Preferred Stock ($.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 at both September 30, 2017 and December 31, 2016) | 6 | 6 | |
Additional paid-in capital | 24,721 | 24,606 | |
Common Stock held in treasury, at cost (235,378,104 and 230,537,166 shares at September 30, 2017 and December 31, 2016, respectively) | (16,012) | (15,316) | |
Accumulated other comprehensive income (loss) | 16,598 | 14,621 | |
Retained earnings | 25,060 | 21,946 | |
Total Prudential Financial, Inc. equity | 50,373 | 45,863 | |
Noncontrolling interests | 192 | 225 | |
Total equity | 50,565 | 46,088 | |
TOTAL LIABILITIES AND EQUITY | $ 821,131 | $ 783,962 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Unaudited Interim Consolidated3
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Fixed maturities, available-for-sale, amortized cost | $ 307,527 | $ 292,581 | |
Fixed maturities, held-to-maturity, fair value | 2,475 | 2,524 | |
Equity securities, available-for-sale, at cost | 7,145 | 7,149 | |
Commercial mortgage and other loans | [1] | 55,373 | 52,779 |
Other long-term investments | [1] | 11,986 | 11,283 |
Total liabilities of consolidated VIEs | [1] | $ 1,517 | $ 2,150 |
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, at cost, shares | 235,378,104 | 230,537,166 | |
Fair value option | |||
Commercial mortgage and other loans | $ 340 | $ 519 | |
Other long-term investments | 1,886 | 1,556 | |
Total liabilities of consolidated VIEs | $ 1,194 | $ 1,839 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Unaudited Interim Consolidated4
Unaudited Interim Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUES | ||||
Premiums | $ 7,795 | $ 9,635 | $ 22,602 | $ 22,867 |
Policy charges and fee income | 1,502 | 1,540 | 3,760 | 4,415 |
Net investment income | 4,076 | 4,073 | 12,226 | 11,532 |
Asset management and service fees | 1,005 | 955 | 2,929 | 2,780 |
Other income (loss) | 327 | (55) | 964 | 8 |
Realized investment gains (losses), net: | ||||
Other-than-temporary impairments on fixed maturity securities | (22) | (29) | (132) | (204) |
Other-than-temporary impairments on fixed maturity securities transferred to Other comprehensive income | 0 | 0 | 10 | 38 |
Other realized investment gains (losses), net | 1,630 | 842 | 1,065 | 4,293 |
Total realized investment gains (losses), net | 1,608 | 813 | 943 | 4,127 |
Total revenues | 16,313 | 16,961 | 43,424 | 45,729 |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 8,193 | 10,155 | 23,546 | 25,175 |
Interest credited to policyholders’ account balances | 1,035 | 824 | 2,922 | 3,168 |
Dividends to policyholders | 500 | 569 | 1,606 | 1,433 |
Amortization of deferred policy acquisition costs | 643 | 115 | 1,166 | 1,744 |
General and administrative expenses | 2,921 | 2,983 | 8,813 | 8,821 |
Total benefits and expenses | 13,292 | 14,646 | 38,053 | 40,341 |
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 3,021 | 2,315 | 5,371 | 5,388 |
Total income tax expense (benefit) | 800 | 501 | 1,320 | 1,300 |
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 2,221 | 1,814 | 4,051 | 4,088 |
Equity in earnings of operating joint ventures, net of taxes | 20 | 18 | 58 | 38 |
NET INCOME (LOSS) | 2,241 | 1,832 | 4,109 | 4,126 |
Less: Income (loss) attributable to noncontrolling interests | 3 | 5 | 11 | 42 |
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | $ 2,238 | $ 1,827 | $ 4,098 | $ 4,084 |
Basic earnings per share-Common Stock: | ||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ 5.19 | $ 4.14 | $ 9.46 | $ 9.16 |
Diluted earnings per share-Common Stock: | ||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | 5.09 | 4.07 | 9.29 | 9.02 |
Dividends declared per share of Common Stock (in dollars per share) | $ 0.75 | $ 0.7 | $ 2.25 | $ 2.1 |
Unaudited Interim Consolidated5
Unaudited Interim Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 2,241 | $ 1,832 | $ 4,109 | $ 4,126 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments for the period | 122 | 697 | 719 | 1,980 |
Net unrealized investment gains (losses) | 153 | (678) | 1,835 | 16,642 |
Defined benefit pension and postretirement unrecognized periodic benefit (cost) | 62 | 44 | 161 | 117 |
Total | 337 | 63 | 2,715 | 18,739 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 101 | (240) | 757 | 6,051 |
Other comprehensive income (loss), net of taxes | 236 | 303 | 1,958 | 12,688 |
Comprehensive income (loss) | 2,477 | 2,135 | 6,067 | 16,814 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 3 | 50 | (8) | 90 |
Comprehensive income (loss) attributable to Prudential Financial, Inc. | $ 2,474 | $ 2,085 | $ 6,075 | $ 16,724 |
Unaudited Interim Consolidated6
Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock Held In Treasury | Accumulated Other Comprehensive Income (Loss) | Total Prudential Financial, Inc. Equity | Noncontrolling Interests |
Balance at Dec. 31, 2015 | $ 41,923 | $ 6 | $ 24,482 | $ 18,931 | $ (13,814) | $ 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 | (1,375) | (1,375) | (1,375) | |||||
Class B Stock repurchase adjustment | (119) | (119) | (119) | |||||
Contributions from noncontrolling interests | 9 | 9 | ||||||
Distributions to noncontrolling interests | (30) | (30) | ||||||
Consolidations (deconsolidations) of noncontrolling interests | (471) | (471) | ||||||
Stock-based compensation programs | 238 | 38 | 200 | 238 | ||||
Dividends declared on Common Stock | (938) | (938) | (938) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 4,126 | 4,084 | 4,084 | 42 | ||||
Other comprehensive income (loss), net of tax | 12,688 | 12,640 | 12,640 | 48 | ||||
Comprehensive income (loss) | 16,814 | 16,724 | 90 | |||||
Balance at Sep. 30, 2016 | 56,974 | 6 | 24,520 | 21,969 | (14,989) | 24,925 | 56,431 | 543 |
Balance at Dec. 31, 2016 | 46,088 | 6 | 24,606 | 21,946 | (15,316) | 14,621 | 45,863 | 225 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of adoption of accounting changes | 0 | 5 | (5) | 0 | ||||
Common Stock acquired | (937) | (937) | (937) | |||||
Contributions from noncontrolling interests | 7 | 7 | ||||||
Distributions to noncontrolling interests | (31) | (31) | ||||||
Consolidations (deconsolidations) of noncontrolling interests | (1) | (1) | ||||||
Stock-based compensation programs | 351 | 110 | 241 | 351 | ||||
Dividends declared on Common Stock | (979) | (979) | (979) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 4,109 | 4,098 | 4,098 | 11 | ||||
Other comprehensive income (loss), net of tax | 1,958 | 1,977 | 1,977 | (19) | ||||
Comprehensive income (loss) | 6,067 | 6,075 | (8) | |||||
Balance at Sep. 30, 2017 | $ 50,565 | $ 6 | $ 24,721 | $ 25,060 | $ (16,012) | $ 16,598 | $ 50,373 | $ 192 |
Unaudited Interim Consolidated7
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $ 4,109 | $ 4,126 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Realized investment (gains) losses, net | (943) | (4,127) | ||
Policy charges and fee income | (1,880) | (1,417) | ||
Interest credited to policyholders’ account balances | 2,922 | 3,168 | ||
Depreciation and amortization | 271 | 402 | ||
(Gains) losses on trading account assets supporting insurance liabilities, net | (330) | (361) | ||
Change in: | ||||
Deferred policy acquisition costs | (966) | (391) | ||
Future policy benefits and other insurance liabilities | 6,465 | 7,668 | ||
Income taxes | [1] | 1,348 | 749 | |
Derivatives, net | (2,076) | 7,443 | ||
Other, net | [1] | (159) | (186) | |
Cash flows from (used in) operating activities(1) | [1] | 8,761 | 17,074 | |
Proceeds from the sale/maturity/prepayment of: | ||||
Fixed maturities, available-for-sale | 42,243 | 36,420 | ||
Fixed maturities, held-to-maturity | 128 | 205 | ||
Trading account assets supporting insurance liabilities and other trading account assets | 30,728 | 24,720 | ||
Equity securities, available-for-sale | 3,165 | 2,798 | ||
Commercial mortgage and other loans | 3,808 | 4,522 | ||
Policy loans | 1,830 | 1,727 | ||
Other long-term investments | 948 | 457 | ||
Short-term investments | 21,497 | 35,728 | ||
Payments for the purchase/origination of: | ||||
Fixed maturities, available-for-sale | (50,140) | (49,467) | ||
Trading account assets supporting insurance liabilities and other trading account assets | (30,852) | (26,049) | ||
Equity securities, available-for-sale | (2,371) | (2,413) | ||
Commercial mortgage and other loans | (6,195) | (6,011) | ||
Policy loans | (1,392) | (1,402) | ||
Other long-term investments | (1,275) | (1,537) | ||
Short-term investments | (19,553) | (33,196) | ||
Acquisition of business, net of cash acquired | (64) | (532) | ||
Derivatives, net | (61) | 718 | ||
Other, net | (633) | 228 | ||
Cash flows from (used in) investing activities | (8,189) | (13,084) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Policyholders’ account deposits | 20,399 | 22,207 | ||
Policyholders’ account withdrawals | (19,798) | (17,514) | ||
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 903 | 488 | ||
Cash dividends paid on Common Stock | (976) | (939) | ||
Net change in financing arrangements (maturities 90 days or less) | 31 | 516 | ||
Common Stock acquired | (927) | (1,339) | ||
Common Stock reissued for exercise of stock options | 208 | 112 | ||
Proceeds from the issuance of debt (maturities longer than 90 days) | 1,189 | 1,449 | ||
Repayments of debt (maturities longer than 90 days) | (860) | (1,452) | ||
Excess tax benefits from share-based payment arrangements | 0 | 4 | ||
Other, net | [1] | (472) | (647) | |
Cash flows from (used in) financing activities(1) | [1] | (303) | 2,766 | |
Effect of foreign exchange rate changes on cash balances | 145 | 360 | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 414 | 7,116 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 14,127 | [2] | 17,612 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 14,541 | [2] | 24,728 | |
NON-CASH TRANSACTIONS DURING THE PERIOD | ||||
Treasury Stock shares issued for stock-based compensation programs | 102 | 113 | ||
Pension Risk Transfer | ||||
NON-CASH TRANSACTIONS DURING THE PERIOD | ||||
Assets received, excluding cash and cash equivalents | 2,124 | 2,388 | ||
Liabilities Assumed | 3,066 | 3,215 | ||
Net cash received | 942 | 827 | ||
Acquisition | ||||
NON-CASH TRANSACTIONS DURING THE PERIOD | ||||
Liabilities Assumed | 132 | 0 | ||
Assets acquired, excluding cash and cash equivalents | 196 | 0 | ||
Net cash paid on acquisition | 64 | 0 | ||
Class B Stock | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Common Stock acquired | $ 0 | $ (119) | ||
[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 | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | BUSINESS AND BASIS OF PRESENTATION Prudential Financial, Inc. (“Prudential Financial”) and its subsidiaries (collectively, “Prudential” or the “Company”) 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. 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 The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. The Unaudited Interim Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. See Note 5 for more information on the Company’s consolidated variable interest entities. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . 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 unaudited interim consolidated balance sheet data as of September 30, 2017 , include the assets and liabilities of Gibraltar Life as of August 31, 2017. The Company’s unaudited interim consolidated income statement data include Gibraltar Life’s results of operations for the three and nine months ended August 31, 2017 and 2016, respectively. 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 and regulatory matters. Out of Period Adjustments During the second quarter of 2016, the Company recorded an out of period adjustment resulting in a decrease of $148 million to “Income (loss) before income taxes and equity in earnings of operating joint ventures” for the three-month period ended June 30, 2016, and which is reflected in the nine-month period ended September 30, 2016. The adjustment reflects a charge 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 then current quarter or to any previously reported quarterly or annual financial statements. See Note 11 for additional information on the impact of this adjustment to the Company’s operating segments. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Accounting for Certain Reinsurance Contracts in the Individual Life business During the second quarter of 2017, the Company recognized a charge of $237 million in the Individual Life segment, reflecting a change in estimate of reinsurance cash flows associated with universal life products as well as a change in method of reflecting these cash flows in the financial statements. Under the previous method of accounting, with the exception of recoveries pertaining to no lapse guarantees, reinsurance cash flows (e.g., premiums and recoveries) were generally recognized as they occurred. Under the new method, the expected reinsurance cash flows are recognized more ratably over the life of the underlying reinsured policies. In conjunction with this change, the way in which reinsurance is reflected in estimated gross profits used for the amortization of unearned revenue reserves, DAC and VOBA was also revised. The change represents a change in accounting estimate effected by a change in accounting principle and is included within the Company’s annual reviews and update of assumptions and other refinements. The change in accounting estimate reflected insights gained from revised cashflow modeling enabled by a systems conversion, which prompted the change to a preferable accounting method. This new methodology is viewed as preferable as the Company believes it better reflects the economics of reinsurance transactions by aligning the results of reinsurance activity more closely to the underlying direct insurance activity and by better reflecting the profit pattern of this business for purposes of the amortization of the balances noted above. Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. ASU adopted during the nine months ended September 30, 2017 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters 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 ASU. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU issued but not yet adopted as of September 30, 2017 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 is explicitly scoped out of the standard. January 1, 2018 using the modified retrospective method. Based on the assessment completed to date, 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 2016-01 , Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities The ASU revises an entity’s accounting related to the recognition and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU requires equity investments, except for those accounted for using the equity method, to be measured at fair value with changes in fair value recognized in net income. The standard also amends certain disclosure requirements associated with the fair value of financial instruments. January 1, 2018 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. The amendments are to be applied prospectively as they relate to equity investments without readily determinable fair value that exist as of the date of adoption. The transition impact to the Company’s Consolidated Statements of Financial Position will depend on the net unrealized gain or loss on equity securities and the embedded unrealized gain or loss on equity investments currently accounted for under the cost method as of the effective date. As of September 30, 2017, the net unrealized gain on equity investments is $2.8 billion. The cumulative-effect adjustment ultimately recorded on January 1, 2018 will differ from that amount after taking into account portfolio activity and market movements that occur during the fourth quarter of 2017, as well as the offsetting impacts related to the policyholder dividend obligation in the Closed Block and deferred taxes. The prospective impact to the Company’s Consolidated Statements of Operations will depend on equity investment purchases and sales as well as period-to-period fluctuations in the market values of the Company’s equity investments that occur after the effective date. 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 2016-13 , 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 OTTI 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 the 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 OTTI 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. 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). Based on the assessment completed to date, 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. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 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). Based on the assessment completed to date, 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 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 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). Adoption of the ASU will result in general account real estate acquisitions no longer being accounted for as business combinations. As a result, direct transaction costs associated with such transactions will be capitalized. Based on the assessment completed to date, 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 2017-05 , Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued this ASU to clarify the scope and application of ASC 610-20 which provides guidance on accounting for the derecognition of a nonfinancial asset or an in substance nonfinancial asset that is not a business. The ASU defines an in substance nonfinancial asset and requires the application of certain recognition and measurement principles in the new revenue recognition standard when an entity derecognizes nonfinancial assets and in substance nonfinancial assets, and the counterparty is not a customer. January 1, 2018 using the full or modified retrospective method (with early adoption permitted). Based on the assessment completed to date, 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 2017-08 , Receivables -Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date. 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. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. 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. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS 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 is accounted for under the equity method and is recorded within “Other assets.” This acquisition enables the Company to participate in the growing Chilean pension market. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables set forth information relating to fixed maturities and equity securities (excluding investments classified as trading), as of the dates indicated: September 30, 2017 Amortized 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 $ 21,951 $ 3,729 $ 585 $ 25,095 $ 0 Obligations of U.S. states and their political subdivisions 9,321 970 19 10,272 0 Foreign government bonds 86,965 15,783 441 102,307 0 U.S. corporate public securities 80,324 7,539 480 87,383 (10 ) U.S. corporate private securities(1) 31,453 2,179 179 33,453 (9 ) Foreign corporate public securities 26,494 2,979 103 29,370 (5 ) Foreign corporate private securities 23,231 1,071 460 23,842 0 Asset-backed securities(2) 10,908 223 15 11,116 (242 ) Commercial mortgage-backed securities 13,011 281 79 13,213 0 Residential mortgage-backed securities(3) 3,869 188 8 4,049 (2 ) Total fixed maturities, available-for-sale(1) $ 307,527 $ 34,942 $ 2,369 $ 340,100 $ (268 ) Equity securities, available-for-sale $ 7,145 $ 2,623 $ 29 $ 9,739 September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 866 $ 265 $ 0 $ 1,131 Foreign corporate public securities 659 87 0 746 Foreign corporate private securities(5) 84 3 0 87 Commercial mortgage-backed securities 0 0 0 0 Residential mortgage-backed securities(3) 475 36 0 511 Total fixed maturities, held-to-maturity(5) $ 2,084 $ 391 $ 0 $ 2,475 __________ (1) Excludes notes with amortized cost of $2,310 million (fair value, $2,310 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, 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 “Accumulated other comprehensive income (loss)” (“AOCI”), which were not included in earnings. Amount excludes $542 million of net unrealized gains on impaired available-for-sale securities and $2 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 $4,627 million (fair value, $4,758 million ), which have been offset with the associated payables under a netting agreement. December 31, 2016 Amortized Cost or 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 loan obligations, 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. The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity and equity securities had been in a continuous unrealized loss position, as of the dates indicated: September 30, 2017 Less Than Twelve Months Total Fair Gross Fair Gross Fair Gross (in millions) Fixed maturities(1): U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 5,087 $ 127 $ 4,612 $ 458 $ 9,699 $ 585 Obligations of U.S. states and their political subdivisions 600 5 350 14 950 19 Foreign government bonds 6,687 195 2,229 246 8,916 441 U.S. corporate public securities 7,963 107 6,981 373 14,944 480 U.S. corporate private securities 4,679 117 1,224 62 5,903 179 Foreign corporate public securities 2,082 21 1,395 82 3,477 103 Foreign corporate private securities 2,270 36 5,346 424 7,616 460 Asset-backed securities 863 1 428 14 1,291 15 Commercial mortgage-backed securities 2,446 22 1,485 57 3,931 79 Residential mortgage-backed securities 607 4 151 4 758 8 Total $ 33,284 $ 635 $ 24,201 $ 1,734 $ 57,485 $ 2,369 Equity securities, available-for-sale $ 439 $ 28 $ 0 $ 1 $ 439 $ 29 __________ (1) Includes $12 million of fair value and less than $1 million of gross unrealized losses, which are not reflected in AOCI, on securities classified as held-to-maturity, as of September 30, 2017 . December 31, 2016 Less Than Twelve Months Total Fair Gross Fair Gross Fair Gross (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, which are not reflected in AOCI, on securities classified as held-to-maturity, as of December 31, 2016 . As of September 30, 2017 and December 31, 2016 , the gross unrealized losses on fixed maturity securities were composed of $2,098 million and $4,233 million , respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $271 million and $392 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of September 30, 2017 , the $1,734 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in U.S. and foreign government bonds and in the energy, utility and consumer non-cyclical sectors of the Company’s corporate securities. As of December 31, 2016 , the $1,420 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in the energy, utility and capital goods sectors of the Company’s corporate securities. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either September 30, 2017 or December 31, 2016 . These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of September 30, 2017 , the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of September 30, 2017 , $7 million of the gross unrealized losses on equity securities represented declines in value of 2 0 % or more, $4 million of which had been in a gross unrealized loss position for less than six months. As of December 31, 2016 , $9 million of the gross unrealized losses on equity securities represented declines in value of 20% or more, $8 million of which had been in a gross unrealized loss position for less than six months. In accordance with its policy described in Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , the Company concluded that an adjustment to earnings for OTTI for these equity securities was not warranted at either September 30, 2017 or December 31, 2016 . The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: September 30, 2017 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Fixed maturities: Due in one year or less $ 10,528 $ 11,142 $ 0 $ 0 Due after one year through five years 47,418 51,382 178 186 Due after five years through ten years 64,610 69,994 568 650 Due after ten years(1) 157,183 179,204 863 1,128 Asset-backed securities 10,908 11,116 0 0 Commercial mortgage-backed securities 13,011 13,213 0 0 Residential mortgage-backed securities 3,869 4,049 475 511 Total $ 307,527 $ 340,100 $ 2,084 $ 2,475 __________ (1) Excludes available-for-sale notes with amortized cost of $2,310 million (fair value, $2,310 million ) and held-to-maturity notes with amortized cost of $4,627 million (fair value, $4,758 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 do not have a single maturity date. The following table sets forth 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, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 7,973 $ 7,585 $ 23,860 $ 21,939 Proceeds from maturities/prepayments 5,068 4,960 18,488 14,583 Gross investment gains from sales and maturities 359 440 1,160 1,234 Gross investment losses from sales and maturities (109 ) (46 ) (407 ) (343 ) OTTI recognized in earnings(2) (22 ) (29 ) (122 ) (166 ) Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(3) $ 39 $ 83 $ 128 $ 208 Equity securities, available-for-sale: Proceeds from sales(4) $ 1,421 $ 978 $ 3,364 $ 2,815 Gross investment gains from sales 357 177 829 425 Gross investment losses from sales (29 ) (30 ) (70 ) (137 ) OTTI recognized in earnings (12 ) (23 ) (23 ) (65 ) __________ (1) Includes $105 million and $102 million of non-cash related proceeds for the nine months ended September 30, 2017 and 2016 , respectively. (2) 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. (3) Includes $(1) million and $3 million of non-cash related proceeds for the nine months ended September 30, 2017 and 2016 , respectively. (4) Includes $199 million and $17 million of non-cash related proceeds for the nine months ended September 30, 2017 and 2016 , respectively. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company for which a portion of the OTTI loss was recognized in OCI and the corresponding changes in such amounts, for the periods indicated: Three Months Ended Nine Months Ended Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 (in millions) Credit loss impairments: Balance, beginning of period $ 341 $ 359 $ 424 $ 532 New credit loss impairments 3 10 0 27 Additional credit loss impairments on securities previously impaired 0 1 0 0 Increases due to the passage of time on previously recorded credit losses 4 11 5 17 Reductions for securities which matured, paid down, prepaid or were sold during the period (33 ) (49 ) (76 ) (217 ) Reductions for securities impaired to fair value during the period(1) 0 (14 ) 0 (2 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (1 ) (4 ) (2 ) (6 ) Balance, end of period $ 314 $ 314 $ 351 $ 351 __________ (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: September 30, 2017 December 31, 2016 Amortized Fair Value Amortized Fair Value (in millions) Short-term investments and cash equivalents $ 626 $ 626 $ 655 $ 655 Fixed maturities: Corporate securities 13,811 14,115 13,903 13,997 Commercial mortgage-backed securities 2,154 2,183 2,032 2,052 Residential mortgage-backed securities(1) 999 1,010 1,142 1,150 Asset-backed securities(2) 1,190 1,216 1,333 1,349 Foreign government bonds 1,019 1,032 915 926 U.S. government authorities and agencies and obligations of U.S. states 348 398 330 376 Total fixed maturities 19,521 19,954 19,655 19,850 Equity securities 1,251 1,546 1,097 1,335 Total trading account assets supporting insurance liabilities $ 21,398 $ 22,126 $ 21,407 $ 21,840 __________ (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 $66 million and $84 million during the three months ended September 30, 2017 and 2016 , respectively, and $295 million and $459 million during the nine months ended September 30, 2017 and 2016 , respectively. Other Trading Account Assets The following table sets forth the composition of “Other trading account assets,” as of the dates indicated: September 30, 2017 December 31, 2016 Amortized Fair Value Amortized Fair Value (in millions) Short-term investments and cash equivalents $ 27 $ 27 $ 26 $ 26 Fixed maturities 3,379 3,340 3,634 3,453 Equity securities 971 1,115 985 1,056 Other 13 14 4 5 Subtotal $ 4,390 4,496 $ 4,649 4,540 Derivative instruments 1,714 1,224 Total other trading account assets $ 6,210 $ 5,764 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 $56 million and $49 million during the three months ended September 30, 2017 and 2016 , respectively, and $215 million and $210 million during the nine months ended September 30, 2017 and 2016 , 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 the dates indicated, 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 and certain U.S. government agencies and securities guaranteed by the U.S. government, as well as the securities disclosed below: September 30, 2017 December 31, 2016 Amortized Fair Value Amortized Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 64,567 $ 76,263 $ 60,240 $ 73,051 Fixed maturities, held-to-maturity 845 1,104 818 1,075 Trading account assets supporting insurance liabilities 630 641 537 550 Other trading account assets 22 22 16 16 Total $ 66,064 $ 78,030 $ 61,611 $ 74,692 September 30, 2017 December 31, 2016 Amortized Fair Value Amortized Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 8,543 $ 10,161 $ 7,581 $ 9,435 Fixed maturities, held-to-maturity 0 0 0 0 Trading account assets supporting insurance liabilities 15 16 44 44 Other trading account assets 0 0 0 0 Total $ 8,558 $ 10,177 $ 7,625 $ 9,479 Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2017 December 31, 2016 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,527 23.0 % $ 12,424 23.9 % Retail 8,825 16.2 8,555 16.5 Apartments/Multi-Family 14,979 27.4 13,733 26.4 Industrial 8,956 16.4 8,075 15.5 Hospitality 1,989 3.6 2,274 4.4 Other 4,148 7.6 3,966 7.6 Total commercial mortgage loans 51,424 94.2 49,027 94.3 Agricultural property loans 3,167 5.8 2,958 5.7 Total commercial mortgage and agricultural property loans by property type 54,591 100.0 % 51,985 100.0 % Valuation allowance (102 ) (98 ) Total net commercial mortgage and agricultural property loans by property type 54,489 51,887 Other loans: Uncollateralized loans 675 638 Residential property loans 210 252 Other collateralized loans 6 10 Total other loans 891 900 Valuation allowance (7 ) (8 ) Total net other loans 884 892 Total commercial mortgage and other loans(1) $ 55,373 $ 52,779 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of September 30, 2017 and December 31, 2016 , the net carrying value of these loans was $340 million and $519 million , respectively. As of September 30, 2017 , the commercial mortgage and agricultural property loans were geographically dispersed throughout the United States (with the largest concentrations in California (26%) , Texas (9%) and New York (8%) ) and included loans secured by properties in Europe (5%) and Asia (1%) . The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: September 30, 2017 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses: Balance, beginning of year $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 Addition to (release of) allowance for losses 4 1 0 0 (1 ) 4 Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 0 0 Total ending balance $ 99 $ 3 $ 2 $ 0 $ 5 $ 109 December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses: Balance, 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 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: September 30, 2017 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 93 3 2 0 5 103 Total ending balance(1) $ 99 $ 3 $ 2 $ 0 $ 5 $ 109 Recorded investment(2): Individually evaluated for impairment $ 76 $ 36 $ 0 $ 0 $ 2 $ 114 Collectively evaluated for impairment 51,348 3,131 210 6 673 55,368 Total ending balance(1) $ 51,424 $ 3,167 $ 210 $ 6 $ 675 $ 55,482 __________ (1) As of September 30, 2017 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. 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 Total ending balance(1) $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 Recorded investment(2): Individually evaluated for impairment $ 116 $ 30 $ 0 $ 0 $ 2 $ 148 Collectively evaluated for impairment 48,911 2,928 252 10 636 52,737 Total ending balance(1) $ 49,027 $ 2,958 $ 252 $ 10 $ 638 $ 52,885 __________ (1) As of December 31, 2016 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. 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 September 30, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 29,375 $ 518 $ 320 $ 30,213 60%-69.99% 13,591 417 132 14,140 70%-79.99% 6,173 585 28 6,786 80% or greater 110 79 96 285 Total commercial mortgage loans $ 49,249 $ 1,599 $ 576 $ 51,424 Agricultural property loans September 30, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 2,993 $ 119 $ 15 $ 3,127 60%-69.99% 40 0 0 40 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,033 $ 119 $ 15 $ 3,167 Total commercial mortgage and agricultural property loans September 30, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 32,368 $ 637 $ 335 $ 33,340 60%-69.99% 13,631 417 132 14,180 70%-79.99% 6,173 585 28 6,786 80% or greater 110 79 96 285 Total commercial mortgage and agricultural property loans $ 52,282 $ 1,718 $ 591 $ 54,591 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 December 31, 2016 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 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 December 31, 2016 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 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 December 31, 2016 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 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 an aging of past due commercial mortgage and other loans 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: September 30, 2017 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Non-Accrual (in millions) Commercial mortgage loans $ 51,424 $ 0 $ 0 $ 0 $ 0 $ 51,424 $ 47 Agricultural property loans 3,165 0 0 2 2 3,167 25 Residential property loans 202 4 0 4 8 210 4 Other collateralized loans 6 0 0 0 0 6 0 Uncollateralized loans 675 0 0 0 0 675 0 Total $ 55,472 $ 4 $ 0 $ 6 $ 10 $ 55,482 $ 76 __________ (1) As of September 30, 2017 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . 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 Non-Accrual (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) As of December 31, 2016 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . For both the three and nine months ended September 30, 2017 , there were no commercial mortgage and other loans acquired, other than those through direct origination and there were $2 million of commercial mortgage and other loans sold, other than those classified as held-for-sale. For both the three and nine months ended September 30, 2016 , there were no commercial mortgage and other loans acquired, other than those through direct origination and there were no 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. During the three and nine months ended September 30, 2017 and 2016 , there were no new troubled debt restructurings related to commercial mortgage and other loans and no payment defaults on loans that were modified as a troubled debt restructuring within the twelve months preceding. As of September 30, 2017 and December 31, 2016 , the Company had no significant commitments to provide additional funds to borrowers that had been involved in a troubled debt restructuring. For additional information relating to the accounting for troubled debt restructurings, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . As of September 30, 2017 , there were $6 million of private debt commitments to provide additional funds to borrowers that had been involved in a troubled debt restructuring. Other Long-Term Investments The following table sets forth the composition of “Other long-term investments,” as of the dates indicated: September 30, 2017 December 31, 2016 (in millions) Joint ventures and limited partnerships: Private equity $ 4,214 $ 4,059 Hedge funds 3,007 2,660 Real estate-related 1,233 1,291 Total joint ventures and limited partnerships 8,454 8,010 Real estate held through direct ownership(1) 2,381 2,195 Other(2) 1,151 1,078 Total other long-term investments $ 11,986 $ 11,283 __________ (1) As of September 30, 2017 and December 31, 2016 , real estate held through direct ownership had mortgage debt of $780 million and $659 million , respectively. (2) Primarily includes strategic investments made by asset management operations, leveraged leases, member and activity stock held in the Federal Home Loan Banks of New York and Boston and certain derivatives. For additional information regarding the Company’s holdings in the Federal Home Loan Banks of New York and Boston, see Note 14 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Fixed maturities, available-for-sale(1) $ 2,873 $ 2,798 $ 8,524 $ 8,126 Fixed maturities, held-to-maturity(1) 55 52 163 155 Equity securities, available-for-sale 99 95 293 285 Trading account assets 229 252 698 747 Commercial mortgage and other loans 571 553 1,691 1,669 Policy loans 153 160 460 470 Short-term investments and cash equivalents 51 38 141 105 Other long-term investments 245 300 825 509 Gross investment income 4,276 4,248 12,795 12,066 Less: investment expenses (200 ) (175 ) (569 ) (534 ) Net investment income $ 4,076 $ 4,073 $ 12,226 $ 11,532 __________ (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. Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Fixed maturities $ 228 $ 365 $ 631 $ 725 Equity securities 316 124 736 223 Commercial mortgage and other loans 21 5 49 36 Investment real estate 0 14 12 15 Joint ventures and limited partnerships (1 ) (14 ) (22 ) (78 ) Derivatives(1) 1,044 323 (463 ) 3,218 Other 0 (4 ) 0 (12 ) Realized investment gains (losses), net $ 1,608 $ 813 $ 943 $ 4,127 __________ (1) Includes the hedged items offset in qualifying fair value hedge accounting relationships. Net Unrealized Gains (Losses) on Investments The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, December 31, (in millions) Fixed maturity securities, available-for-sale—with OTTI $ 274 $ 312 Fixed maturity securities, available-for-sale—all other 32,299 28,526 Equity securities, available-for-sale 2,594 2,599 Derivatives designated as cash flow hedges(1) 333 1,316 Other investments(2) (9 ) (21 ) Net unrealized gains (losses) on investments $ 35,491 $ 32,732 __________ (1) See Note 14 for more information on cash flow hedges. (2) As of September 30, 2017 , there were no net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.” Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. The following table sets forth the composition of “Securities sold under agreements to repurchase,” as of the dates indicated: September 30, 2017 December |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2017 | |
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”). For additional information, see Note 5 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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(1) Other Consolidated VIEs September 30, December 31, September 30, December 31, (in millions) Fixed maturities, available-for-sale $ 95 $ 65 $ 278 $ 269 Fixed maturities, held-to-maturity 84 81 811 783 Trading account assets supporting insurance liabilities 0 0 9 9 Other trading account assets 1,637 2,140 0 0 Commercial mortgage and other loans 564 503 0 0 Other long-term investments 1,243 1,083 107 114 Cash and cash equivalents 149 618 0 1 Accrued investment income 7 10 3 4 Other assets 419 424 0 1 Total assets of consolidated VIEs $ 4,198 $ 4,924 $ 1,208 $ 1,181 Notes issued by consolidated VIEs(2) $ 1,517 $ 2,150 $ 0 $ 0 Other liabilities 429 611 0 7 Total liabilities of consolidated VIEs $ 1,946 $ 2,761 $ 0 $ 7 __________ (1) Total assets of consolidated VIEs reflects $1,631 million and $1,386 million as of September 30, 2017 and December 31, 2016 , respectively, related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. (2) Recourse is limited to the assets of the respective VIE and does not extend to the general credit of Prudential Financial . As of September 30, 2017 and 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. 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 $866 million and $515 million at September 30, 2017 and December 31, 2016 , 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 Unaudited Interim 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 classifies these investments as “Other long-term investments” and its maximum exposure to loss associated with these entities was $8,454 million and $8,010 million as of September 30, 2017 and December 31, 2016 , 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. |
Closed Block
Closed Block | 9 Months Ended |
Sep. 30, 2017 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK On December 18, 2001, 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. For more information on the Closed Block, see Note 12 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2016. As of September 30, 2017 and December 31, 2016 , the Company recognized a policyholder dividend obligation of $1,710 million and $1,647 million , respectively, to Closed Block policyholders for the excess of actual cumulative earnings over 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 $3,518 million and $3,011 million at September 30, 2017 and December 31, 2016 , respectively, to be paid to Closed Block policyholders unless offset by future experience, with a corresponding amount reported in AOCI. Closed Block liabilities and assets designated to the Closed Block, as well as maximum future earnings to be recognized from these liabilities and assets, are as follows: September 30, December 31, (in millions) Closed Block liabilities Future policy benefits $ 48,920 $ 49,281 Policyholders’ dividends payable 976 932 Policyholders’ dividend obligation 5,228 4,658 Policyholders’ account balances 5,154 5,204 Other Closed Block liabilities 5,406 4,262 Total Closed Block liabilities 65,684 64,337 Closed Block assets Fixed maturities, available-for-sale, at fair value 41,184 38,696 Other trading account assets, at fair value 334 283 Equity securities, available-for-sale, at fair value 2,391 2,572 Commercial mortgage and other loans 9,332 9,437 Policy loans 4,570 4,660 Other long-term investments 3,167 3,020 Short-term investments 398 837 Total investments 61,376 59,505 Cash and cash equivalents 793 1,310 Accrued investment income 506 491 Other Closed Block assets 223 206 Total Closed Block assets 62,898 61,512 Excess of reported Closed Block liabilities over Closed Block assets 2,786 2,825 Portion of above representing accumulated other comprehensive income: Net unrealized investment gains (losses) 3,494 2,990 Allocated to policyholder dividend obligation (3,518 ) (3,011 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,762 $ 2,804 Information regarding the policyholder dividend obligation is as follows: Nine Months Ended (in millions) Balance, January 1 $ 4,658 Impact from earnings allocable to policyholder dividend obligation 63 Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 507 Balance, September 30 $ 5,228 Closed Block revenues and benefits and expenses are as follows for the periods indicated: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Revenues Premiums $ 577 $ 599 $ 1,852 $ 1,913 Net investment income 671 707 1,997 1,968 Realized investment gains (losses), net 107 152 461 259 Other income (loss) 25 27 85 29 Total Closed Block revenues 1,380 1,485 4,395 4,169 Benefits and Expenses Policyholders’ benefits 727 758 2,371 2,423 Interest credited to policyholders’ account balances 35 34 100 101 Dividends to policyholders 478 550 1,544 1,372 General and administrative expenses 95 100 289 303 Total Closed Block benefits and expenses 1,335 1,442 4,304 4,199 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes 45 43 91 (30 ) Income tax expense (benefit) 30 30 50 (65 ) Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 15 $ 13 $ 41 $ 35 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Equity | EQUITY 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, 2016 660.1 230.5 429.6 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 8.7 (8.7 ) Stock-based compensation programs(1) 0.0 (3.8 ) 3.8 Balance, September 30, 2017 660.1 235.4 424.7 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation program. 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 during the period from January 1, 2017 through December 31, 2017. As of September 30, 2017 , 8.7 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $937 million . 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 (the “Exchange Act”). 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 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, 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.” 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 nine months ended September 30, 2017 and 2016 , 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, 2016 $ (973 ) $ 18,171 $ (2,577 ) $ 14,621 Change in OCI before reclassifications 735 3,164 (7 ) 3,892 Amounts reclassified from AOCI 3 (1,329 ) 168 (1,158 ) Income tax benefit (expense) (95 ) (606 ) (56 ) (757 ) Balance, September 30, 2017 $ (330 ) $ 19,400 $ (2,472 ) $ 16,598 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, 2015 $ (1,087 ) $ 15,773 $ (2,401 ) $ 12,285 Change in OCI before reclassifications 1,921 17,851 (44 ) 19,728 Amounts reclassified from AOCI 11 (1,209 ) 161 (1,037 ) Income tax benefit (expense) (375 ) (5,635 ) (41 ) (6,051 ) Balance, September 30, 2016 $ 470 $ 26,780 $ (2,325 ) $ 24,925 __________ (1) Includes cash flow hedges of $333 million and $1,316 million as of September 30, 2017 and December 31, 2016 , respectively, and $1,093 million and $1,165 million as of September 30, 2016 and December 31, 2015 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended Affected line item in Consolidated Statements of Operations 2017 2016 2017 2016 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustments $ (1 ) $ (3 ) $ (4 ) $ (11 ) Realized investment gains (losses), net Foreign currency translation adjustments 0 0 1 0 Other income Total foreign currency translation adjustment (1 ) (3 ) (3 ) (11 ) Net unrealized investment gains (losses): Cash flow hedges—Interest rate 0 (1 ) (2 ) (4 ) (3) Cash flow hedges—Currency/Interest rate (35 ) 83 (36 ) 265 (3) Net unrealized investment gains (losses) on available-for-sale securities 544 489 1,367 948 Total net unrealized investment gains (losses) 509 571 1,329 1,209 (4) Amortization of defined benefit pension items: Prior service cost 1 2 3 6 (5) Actuarial gain (loss) (57 ) (56 ) (171 ) (167 ) (5) Total amortization of defined benefit pension items (56 ) (54 ) (168 ) (161 ) Total reclassifications for the period $ 452 $ 514 $ 1,158 $ 1,037 __________ (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 14 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 10 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 Unaudited Interim 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 DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2016 $ 312 $ (5 ) $ (6 ) $ (47 ) $ (97 ) $ 157 Net investment gains (losses) on investments arising during the period 57 (19 ) 38 Reclassification adjustment for (gains) losses included in net income (75 ) 25 (50 ) Reclassification adjustment for OTTI losses excluded from net income(1) (20 ) 7 (13 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 3 (1 ) 2 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables 9 (3 ) 6 Impact of net unrealized investment (gains) losses on policyholders’ dividends (8 ) 3 (5 ) Balance, September 30, 2017 $ 274 $ (2 ) $ 3 $ (55 ) $ (85 ) $ 135 __________ (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 Gains (Losses) on Investments(1) DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2016 $ 32,420 $ (1,056 ) $ (1,136 ) $ (2,980 ) $ (9,234 ) $ 18,014 Net investment gains (losses) on investments arising during the period 4,031 (1,364 ) 2,667 Reclassification adjustment for (gains) losses included in net income (1,254 ) 424 (830 ) Reclassification adjustment for OTTI losses excluded from net income(2) 20 (7 ) 13 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables (360 ) 133 (227 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables (65 ) 20 (45 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (503 ) 176 (327 ) Balance, September 30, 2017 $ 35,217 $ (1,416 ) $ (1,201 ) $ (3,483 ) $ (9,852 ) $ 19,265 __________ (1) Includes cash flow hedges. See Note 14 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 | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 periods indicated, is as follows: Three Months Ended September 30, 2017 2016 Income Weighted Per Share Income Weighted Per Share (in millions, except per share amounts) Basic earnings per share Net income (loss) $ 2,241 $ 1,832 Less: Income (loss) attributable to noncontrolling interests 3 5 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 27 21 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 2,211 426.2 $ 5.19 $ 1,806 435.9 $ 4.14 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 27 $ 21 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 27 21 Stock options 1.9 1.9 Deferred and long-term compensation programs 1.1 0.9 Exchangeable Surplus Notes 4 5.8 4 5.6 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 2,215 435.0 $ 5.09 $ 1,810 444.3 $ 4.07 Nine Months Ended September 30, 2017 2016 Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount (in millions, except per share amounts) Basic earnings per share Net income (loss) $ 4,109 $ 4,126 Less: Income (loss) attributable to noncontrolling interests 11 42 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 50 47 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 4,048 428.1 $ 9.46 $ 4,037 440.7 $ 9.16 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 50 $ 47 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 50 46 Stock options 2.2 1.7 Deferred and long-term compensation programs 1.0 0.9 Exchangeable Surplus Notes 13 5.8 13 5.6 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 4,061 437.1 $ 9.29 $ 4,051 448.9 $ 9.02 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 net income available to holders of Common Stock, 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 a net loss available to holders of Common Stock, 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 three months ended September 30, 2017 and 2016 , as applicable, were based on 5.2 million and 5.0 million of such awards, respectively, and for the nine months ended September 30, 2017 and 2016 , as applicable, were based on 5.3 million and 5.1 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 diluted earnings per share. Stock options are considered antidilutive based on application of the treasury stock method or in the event of a net loss available to holders of Common Stock. Shares related to deferred and long-term compensation programs are considered antidilutive in the event of a net loss available to holders of Common Stock. For the periods indicated, 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: Three Months Ended September 30, 2017 2016 Shares Exercise Price Shares Exercise Price (in millions, except per share amounts, based on weighted average) Antidilutive stock options based on application of the treasury stock method 0.4 $ 110.20 3.3 $ 85.22 Antidilutive stock options due to net loss available to holders of Common Stock 0.0 0.0 Antidilutive shares based on application of the treasury stock method 0.0 0.0 Antidilutive shares due to net loss available to holders of Common Stock 0.0 0.0 Total antidilutive stock options and shares 0.4 3.3 Nine Months Ended September 30, 2017 2016 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 0.3 $ 110.27 3.6 $ 83.95 Antidilutive stock options due to net loss available to holders of Common Stock 0.0 0.0 Antidilutive shares based on application of the treasury stock method 0.2 0.0 Antidilutive shares due to net loss available to holders of Common Stock 0.0 0.0 Total antidilutive stock options and shares 0.5 3.6 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 $98.78 ; however, the exchange rate is subject to customary anti-dilution adjustments. In calculating diluted earnings per share under the if-converted method, the potential shares that would be issued assuming a hypothetical exchange, weighted for the period the notes are outstanding, are added to the denominator, and interest expense, net of tax, is added to the numerator, if the overall effect is dilutive. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | SHORT-TERM AND LONG-TERM DEBT Short-term Debt The table below presents the Company’s short-term debt as of the dates indicated: September 30, 2017 December 31, 2016 ($ in millions) Commercial paper: Prudential Financial $ 50 $ 65 Prudential Funding, LLC 616 525 Subtotal commercial paper 666 590 Current portion of long-term debt(1) 1,692 543 Total short-term debt(2) $ 2,358 $ 1,133 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 218 $ 292 Daily average commercial paper outstanding $ 1,294 $ 1,020 Weighted average maturity of outstanding commercial paper, in days 18 21 Weighted average interest rate on outstanding short-term debt(3) 0.93 % 0.43 % __________ (1) Includes $73 million that has recourse only to real estate investment property at December 31, 2016 . (2) Includes Prudential Financial debt of $1,242 million and $535 million at September 30, 2017 and December 31, 2016 , respectively. (3) Excludes the current portion of long-term debt. Prudential Financial and certain subsidiaries have access to other sources of liquidity, including: membership in the Federal Home Loan Banks, commercial paper programs and a contingent financing facility in the form of a put option agreement. The Company also maintains syndicated, unsecured committed credit facilities as an alternative source of liquidity. At September 30, 2017 , no amounts were drawn on the credit facilities. For additional information on these alternative sources of liquidity, see Note 14 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. In July 2017, the Company amended and restated its $4.0 billion five -year credit facility that has both Prudential Financial and Prudential Funding as borrowers and a syndicate of financial institutions as lenders, extending the term of the facility to July 2022 . Borrowings under the credit facility may be used for general corporate purposes, and the Company expects that it may borrow under the facility from time to time to fund its working capital needs and those of its subsidiaries. In addition, amounts under the credit facility may be drawn in the form of standby letters of credit that can be used to meet the operating needs of the Company and its subsidiaries. The credit facility contains representations and warranties, covenants and events of default that are customary for facilities of this type, and borrowings under the facility are not contingent on the borrowers’ credit ratings nor subject to material adverse change clauses. Borrowings under the facility are conditioned on the continued satisfaction of customary conditions, including the maintenance by the Company of consolidated net worth of at least $20.958 billion , which for this purpose is calculated as U.S. GAAP equity, excluding accumulated other comprehensive income (loss), equity of non-controlling interests and equity attributable to the Closed Block. Long-term Debt The table below presents the Company’s long-term debt as of the dates indicated: September 30, 2017 December 31, 2016 (in millions) Fixed-rate notes: Surplus notes $ 840 $ 840 Surplus notes subject to set-off arrangements(1) 5,187 4,403 Senior notes 8,883 9,236 Mortgage debt(2) 223 177 Floating-rate notes: Surplus notes 0 499 Surplus notes subject to set-off arrangements(1) 1,750 1,456 Senior notes(3) 29 1,063 Mortgage debt(4) 557 409 Junior subordinated notes(5) 6,621 5,817 Subtotal 24,090 23,900 Less: assets under set-off arrangements(1) 6,937 5,859 Total long-term debt(6) $ 17,153 $ 18,041 __________ (1) The surplus notes have corresponding assets where rights to set-off exist, thereby reducing the amount of surplus notes included in long-term debt. (2) Includes $104 million and $82 million of debt denominated in foreign currency at September 30, 2017 and December 31, 2016 , respectively. (3) Includes $55 million of debt denominated in foreign currency at December 31, 2016 . (4) Includes $238 million and $221 million of debt denominated in foreign currency at September 30, 2017 and December 31, 2016 , respectively. (5) Includes Prudential Financial debt of $6,564 million and subsidiary debt of $57 million denominated in foreign currency at September 30, 2017. (6) Includes Prudential Financial debt of $15,303 million and $15,389 million at September 30, 2017 and December 31, 2016 , respectively. At September 30, 2017 and December 31, 2016 , the Company was in compliance with all debt covenants related to the borrowings in the table above. Surplus Notes During the first quarter of 2017 , the Company established a new $1.0 billion captive financing facility to finance non-economic reserves required under Guideline AXXX. Similar to the Company’s other captive financing facilities, a captive reinsurance subsidiary issues surplus notes under the facility in exchange for credit-linked notes issued by a special-purpose affiliate that are held to support non-economic reserves. The credit-linked notes are redeemable for cash upon the occurrence of a liquidity stress event affecting the captive and external counterparties have agreed to fund these payments. As of September 30, 2017 , $560 million of surplus notes were outstanding under the facility and no credit-linked note payments have been required. 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. In September 2017 , the Company redeemed $500 million of surplus notes that were issued by a captive reinsurance subsidiary in 2007 to unaffiliated institutions. The surplus notes had been issued to finance non-economic reserves required under Guideline AXXX. 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 September 30, 2017 , the outstanding balance of the Company’s medium-term notes was $9.5 billion , a decrease of $108 million from December 31, 2016 , due to maturities. 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 September 30, 2017 , the outstanding balance of retail notes was $456 million , a decrease of $5 million from December 31,2016, due to $7 million of repayments, offset by $2 million of bond issuance cost amortization. Mortgage Debt. As of September 30, 2017 , the Company’s subsidiaries had mortgage debt of $780 million that has recourse only to real estate property held for investment by those subsidiaries. This represents an increase of $121 million from December 31, 2016 , primarily due to new borrowings of $216 million and $19 million from foreign currency exchange fluctuations, partially offset by $73 million of maturities and $41 million of prepayment activity. Junior Subordinated Notes In September 2017 , Prudential Financial issued $750 million of 4.50% fixed-to-floating rate junior subordinated notes in a public offering. The notes are considered hybrid capital securities that receive enhanced equity treatment from certain of the rating agencies. The notes have a maturity date of September 15, 2047 . Interest is payable semi-annually at a fixed rate of 4.50% until September 15, 2027 , from which date interest is payable quarterly at a floating rate of 3 -month LIBOR plus 2.38% . Prudential Financial may redeem the notes in whole, but not in part, at any time prior to September 15, 2027 , within 90 days after the occurrence of a “tax event”, a “regulatory capital event” or a “rating agency event” at a redemption price equal to (i) in the case of a “tax event” or a “regulatory capital event”, their principal amount plus accrued and unpaid interest or (ii) in the case of a “rating agency event”, 102% of their principal amount plus accrued and unpaid interest. On or after September 15, 2027 , Prudential Financial may redeem the notes, in whole or in part, at their principal amount plus accrued and unpaid interest. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [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 (“Pension Benefits”), 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. Net periodic (benefit) cost included in “General and administrative expenses” includes the following components: Three Months Ended September 30, Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 (in millions) Components of net periodic (benefit) cost Service cost $ 71 $ 64 $ 5 $ 5 Interest cost 119 125 20 22 Expected return on plan assets (195 ) (189 ) (25 ) (26 ) Amortization of prior service cost (1 ) (2 ) 0 0 Amortization of actuarial (gain) loss, net 48 46 9 10 Settlements 7 1 0 0 Special termination benefits 0 0 0 0 Net periodic (benefit) cost $ 49 $ 45 $ 9 $ 11 Nine Months Ended September 30, Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 (in millions) Components of net periodic (benefit) cost Service cost $ 213 $ 189 $ 15 $ 14 Interest cost 357 374 61 68 Expected return on plan assets (585 ) (566 ) (76 ) (79 ) Amortization of prior service cost (3 ) (5 ) 0 (1 ) Amortization of actuarial (gain) loss, net 144 136 27 31 Settlements 7 3 0 0 Special termination benefits 3 2 0 0 Net periodic (benefit) cost $ 136 $ 133 $ 27 $ 33 During the nine months ended September 30, 2017, the Company made cash contributions of $155 million to its pension plans and anticipates making an additional $50 million of cash contributions during the remainder of 2017. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Segments The Company’s principal operations are comprised of four divisions, which together encompass seven segments, and its Corporate and Other operations. The U.S. Retirement Solutions and Investment Management division consists of the Individual Annuities, Retirement and Asset Management segments. The U.S. Individual Life and Group Insurance division consists of the Individual Life and Group Insurance segments. The International Insurance division consists of the International Insurance segment. The Closed Block division consists of the Closed Block segment. The Closed Block division is accounted for as a divested business that is reported separately from the divested businesses that are included in 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. 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) 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) before income taxes and equity in earnings of operating joint ventures” for the following items: • 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. The Company, however, 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. For more information on these reconciling items, see Note 22 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. In addition, as discussed in Note 1, the Company recorded an out of period adjustment during the second quarter of 2016, resulting in a decrease of $148 million to “Income (loss) before income taxes and equity in earnings of operating joint ventures” for the three-month period ended June 30, 2016, and which is reflected in the nine-month period ended September 30, 2016. The adjustment resulted in a decrease in adjusted operating income before income taxes of $148 million for the Individual Life segment in those periods. Reconciliation of adjusted operating income and net income (loss) The table below reconciles “adjusted operating income before income taxes” to “income before income taxes and equity in earnings of operating joint ventures”: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Adjusted operating income before income taxes by segment: Individual Annuities $ 577 $ 588 $ 1,657 $ 1,343 Retirement 248 239 953 694 Asset Management 259 191 673 563 Total U.S. Retirement Solutions and Investment Management division 1,084 1,018 3,283 2,600 Individual Life 150 111 (289 ) (59 ) Group Insurance 61 62 231 177 Total U.S. Individual Life and Group Insurance division 211 173 (58 ) 118 International Insurance 799 780 2,421 2,362 Total International Insurance division 799 780 2,421 2,362 Corporate and Other operations (310 ) (413 ) (974 ) (1,140 ) Total Corporate and Other (310 ) (413 ) (974 ) (1,140 ) Total segment adjusted operating income before income taxes 1,784 1,558 4,672 3,940 Reconciling items: Realized investment gains (losses), net, and related adjustments 1,395 223 (48 ) 2,443 Charges related to realized investment gains (losses), net (231 ) 426 571 (1,096 ) Investment gains (losses) on trading account assets supporting insurance liabilities, net 85 37 330 361 Change in experience-rated contractholder liabilities due to asset value changes (31 ) 1 (188 ) (262 ) Divested businesses: Closed Block division 33 31 49 (74 ) Other divested businesses 10 56 51 76 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (24 ) (17 ) (66 ) 0 Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures $ 3,021 $ 2,315 $ 5,371 $ 5,388 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 table below presents revenues and total assets for the Company’s reportable segments for the periods or as of the dates indicated: Revenues Total Assets Three Months Ended Nine Months Ended September 30, December 31, 2017 2016 2017 2016 (in millions) Individual Annuities $ 1,304 $ 1,221 $ 3,825 $ 3,473 $ 180,005 $ 170,861 Retirement 3,259 5,134 8,803 9,268 178,003 173,509 Asset Management 827 750 2,370 2,188 49,354 49,255 Total U.S. Retirement Solutions and Investment Management division 5,390 7,105 14,998 14,929 407,362 393,625 Individual Life 1,411 1,410 3,510 3,931 83,148 77,524 Group Insurance 1,363 1,333 4,108 4,017 41,147 40,642 Total U.S. Individual Life and Group Insurance division 2,774 2,743 7,618 7,948 124,295 118,166 International Insurance 5,376 5,384 16,268 15,771 211,697 197,119 Total International Insurance division 5,376 5,384 16,268 15,771 211,697 197,119 Corporate and Other operations (179 ) (182 ) (488 ) (494 ) 14,329 13,001 Total Corporate and Other (179 ) (182 ) (488 ) (494 ) 14,329 13,001 Total 13,361 15,050 38,396 38,154 757,683 721,911 Reconciling items: Realized investment gains (losses), net, and related adjustments 1,395 223 (48 ) 2,443 Charges related to realized investment gains (losses), net (63 ) (19 ) (154 ) 57 Investment gains (losses) on trading account assets supporting insurance liabilities, net 85 37 330 361 Divested businesses: Closed Block division 1,376 1,481 4,382 4,156 63,448 62,051 Other divested businesses 185 209 594 602 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (26 ) (20 ) (76 ) (44 ) Total per Unaudited Interim Consolidated Financial Statements $ 16,313 $ 16,961 $ 43,424 $ 45,729 $ 821,131 $ 783,962 Management has determined the intersegment revenues with reference to market rates. Intersegment revenues are eliminated in consolidation in Corporate and Other. The Asset Management segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Asset Management segment intersegment revenues $ 181 $ 173 $ 534 $ 504 Segments may also enter into internal derivative contracts with other segments. For adjusted operating income, each segment accounts for the internal derivative results consistent with the manner in which that segment accounts for other similar external derivatives. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Total income tax expense” divided by projected “Income before income taxes and equity in earnings of operating joint ventures.” Taxes attributable to operating joint ventures are recorded within “Equity in earnings of operating joint ventures, net of taxes.” The interim period tax expense (or benefit) is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year. The Company’s income tax provision, on a consolidated basis, amounted to an income tax expense of $1,320 million , or 24.6% of income (loss) before income taxes and equity in earnings of operating joint ventures, in the first nine months of 2017, compared to $1,300 million , or 24.1% , in the first nine months of 2016. The Company’s current and prior effective tax rates differed from the U.S. statutory rate of 35% primarily due to non-taxable investment income, tax credits and foreign earnings taxed at lower rates than the U.S. statutory rate. In addition, the first nine months of 2017 also includes a $39 million tax benefit as a result of the Company’s adoption of ASU 2016-09 regarding employee share-based payments. Under prior guidance, such tax benefits related to employee share-based payments would have been reported in “Additional paid-in capital.” See Note 2 for additional information. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
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. 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. 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. For a discussion of Company’s valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 20 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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 September 30, 2017 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 $ 25,054 $ 41 $ $ 25,095 Obligations of U.S. states and their political subdivisions 0 10,260 12 10,272 Foreign government bonds 0 102,154 153 102,307 U.S. corporate public securities 0 87,296 87 87,383 U.S. corporate private securities(2) 0 32,323 1,130 33,453 Foreign corporate public securities 0 29,296 74 29,370 Foreign corporate private securities 0 23,382 460 23,842 Asset-backed securities(3) 0 4,296 6,820 11,116 Commercial mortgage-backed securities 0 13,186 27 13,213 Residential mortgage-backed securities 0 3,796 253 4,049 Subtotal 0 331,043 9,057 340,100 Trading account assets(4): U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 324 0 324 Obligations of U.S. states and their political subdivisions 0 199 0 199 Foreign government bonds 0 825 229 1,054 Corporate securities 0 16,876 254 17,130 Asset-backed securities(3) 0 550 768 1,318 Commercial mortgage-backed securities 0 2,162 33 2,195 Residential mortgage-backed securities 0 1,072 2 1,074 Equity securities 1,870 248 543 2,661 All other(5) 69 11,824 6 (9,823 ) 2,076 Subtotal 1,939 34,080 1,835 (9,823 ) 28,031 Equity securities, available-for-sale 5,699 3,759 281 9,739 Commercial mortgage and other loans 0 340 0 340 Other long-term investments(6) 17 115 95 (10 ) 217 Short-term investments 3,198 1,472 5 4,675 Cash equivalents 1,760 6,216 93 8,069 Other assets 0 0 0 0 Separate account assets(7)(8) 42,962 229,983 2,283 275,228 Total assets $ 55,575 $ 607,008 $ 13,649 $ (9,833 ) $ 666,399 Future policy benefits(9) $ 0 $ 0 $ 8,537 $ $ 8,537 Other liabilities 7 6,221 39 (5,505 ) 762 Notes issued by consolidated VIEs 0 0 1,194 1,194 Total liabilities $ 7 $ 6,221 $ 9,770 $ (5,505 ) $ 10,493 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(2) 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(3) 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(4): 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(3) 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(5) 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(6) 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 Separate account assets(7)(8) 38,915 221,253 1,849 262,017 Total assets $ 56,398 $ 581,898 $ 10,214 $ (11,716 ) $ 636,794 Future policy benefits(9) $ 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 __________ (1) “Netting” amounts represent cash collateral of $4,328 million and $5,771 million as of September 30, 2017 and December 31, 2016 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Excludes notes with fair value of $2,310 million and $1,456 million as of September 30, 2017 and December 31, 2016 , respectively, which have been offset with the associated payables under a netting agreement. (3) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (4) Includes “Trading account assets supporting insurance liabilities” and “Other trading account assets.” (5) Level 1 represents cash equivalents and short term investments. All other amounts primarily represent derivative assets. (6) Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At September 30, 2017 and December 31, 2016 , the fair values of such investments were $1,910 million and $1,579 million respectively. (7) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate net asset value per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and other invested assets, for which fair value is measured at net asset value per share (or its equivalent). At September 30, 2017 and December 31, 2016 , the fair value of such investments was $25,882 million and $25,619 million , respectively. (8) 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 Unaudited Interim Consolidated Statements of Financial Position. (9) As of September 30, 2017 , the net embedded derivative liability position of $8.5 billion includes $0.9 billion of embedded derivatives in an asset position and $9.4 billion of embedded derivatives in a liability position. 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. 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 at 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. The following table presents the transfers between Level 1 and Level 2 for dates indicated below: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Transferred from Level 1 to Level 2 $ 35 $ 15 $ 98 $ 81 Transferred from Level 2 to Level 1 $ 11 $ 2 $ 94 $ 33 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. As of September 30, 2017 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) $ 1,577 Discounted cash flow Discount rate 0.58% - 20% 5.94% Decrease Market comparables EBITDA multiples(3) 7.3X 7.3X 7.3X Increase Liquidation Liquidation value 13.07% - 13.21% 13.14% Increase Separate account assets-commercial mortgage loans(4) $ 802 Discounted cash flow Spread 1.07% - 2.78% 1.19% Decrease Liabilities: Future policy benefits(5) $ 8,537 Discounted cash flow Lapse rate(6) 1% - 12% Decrease Spread over LIBOR(7) 0.13% - 1.27% Decrease Utilization rate(8) 52% - 97% Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0% - 14% Decrease Equity volatility curve 13% - 24% Increase 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 Separate account assets-commercial mortgage loans(4) $ 971 Discounted cash flow Spread 1.19% - 2.90% 1.37% Decrease Liabilities: Future policy benefits(5) $ 8,238 Discounted cash flow Lapse rate(6) 0% - 13% Decrease Spread over LIBOR(7) 0.25% - 1.50% Decrease Utilization rate(8) 52% - 96% Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0% - 14% Decrease Equity volatility curve 16% - 25% Increase __________ (1) Conversely, the impact of a decrease in input would have the opposite impact on 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 Company has determined that market participants would use such multiples when valuing the investments. (4) Changes in the fair value of separate account assets are borne by customers and thus are offset by changes in separate account liabilities on the Company’s Unaudited Interim Consolidated Statements of Financial Position. As a result, changes in value associated with these investments are not reflected in the Company’s Unaudited Interim Consolidated Statements of Operations. (5) 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. (6) 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. (7) The spread over London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the risk-free discount rate (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of non-performance risk (“NPR”), which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt. (8) 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. (9) 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 September 30, 2017 and 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%. (10) 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. Interrelationships Between Unobservable Inputs — In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another or multiple inputs. For the discussion of the relationships between unobservable inputs as well as market factors that may affect the range of inputs used in the valuation of Level 3 assets and liabilities, see Note 20 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Changes in Level 3 Assets and Liabilities —The following tables describe 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. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 20 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Three Months Ended September 30, 2017 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (16 ) 8 Included in other comprehensive income (loss) 0 0 (1 ) (11 ) 7 Net investment income 0 0 0 4 1 Purchases 9 7 0 36 1,131 Sales 0 0 0 (1 ) (207 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (51 ) (605 ) Foreign currency translation 0 0 8 0 7 Other(4) 0 0 0 (44 ) 0 Transfers into Level 3(5) 0 0 3 223 698 Transfers out of Level 3(5) 0 0 0 (51 ) (684 ) Fair Value, end of period $ 41 $ 12 $ 153 $ 1,751 $ 7,100 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (10 ) $ 0 Three Months Ended September 30, 2017 Trading Account Assets Foreign government Corporate securities Structured securities(2) Equity securities All other activity (in millions) Fair Value, beginning of period $ 228 $ 200 $ 666 $ 543 $ 1 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (12 ) 0 5 0 Net investment income 1 1 0 0 0 Purchases 0 11 167 1 18 Sales 0 (1 ) 0 (3 ) 0 Issuances 0 0 0 0 0 Settlements 0 (14 ) (123 ) (37 ) (13 ) Foreign currency translation 0 0 1 1 0 Other(4) 0 (3 ) 0 33 0 Transfers into Level 3(5) 0 74 136 0 0 Transfers out of Level 3(5) 0 (2 ) (44 ) 0 0 Fair Value, end of period $ 229 $ 254 $ 803 $ 543 $ 6 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ (12 ) $ 1 $ 5 $ 0 Three Months Ended September 30, 2017 Equity securities available- for-sale Other long-term investments Short-term investments Cash equivalents Other assets (in millions) Fair Value, beginning of period $ 273 $ 76 $ 2 $ 0 $ 39 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (2 ) (1 ) 0 0 (47 ) Other income 0 0 0 0 0 Included in other comprehensive income (loss) 4 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 11 0 12 93 8 Sales (7 ) 0 0 0 0 Issuances 0 0 0 0 0 Settlements 0 (1 ) (8 ) 0 0 Foreign currency translation 0 0 0 0 0 Other(4) 0 11 (1 ) 0 0 Transfers into Level 3(5) 2 10 0 0 0 Transfers out of Level 3(5) 0 0 0 0 0 Fair Value, end of period $ 281 $ 95 $ 5 $ 93 $ 0 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ (2 ) $ (2 ) $ 0 $ 0 $ (47 ) Other income $ 0 $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2017 Separate account assets(3) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 1,777 (6 ) 12 Other Income 0 0 0 0 Interest credited to policyholders’ account balances 11 0 19 0 Net investment income 0 0 0 0 Purchases 465 0 0 0 Sales (12 ) 0 0 0 Issuances 0 (283 ) 0 0 Settlements (174 ) 0 (18 ) 0 Foreign currency translation 0 0 0 0 Other(4) 0 0 0 647 Transfers into Level 3(5) 48 0 0 0 Transfers out of Level 3(5) (162 ) 0 0 0 Fair Value, end of period $ 2,283 $ (8,537 ) $ (39 ) $ (1,194 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 1,698 $ (6 ) $ 12 Other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 13 $ 0 $ 7 $ 0 Nine Months Ended September 30, 2017 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 0 $ 5 $ 124 $ 2,173 $ 4,555 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 11 67 Included in other comprehensive income (loss) 0 0 1 (14 ) (6 ) Net investment income 0 0 0 15 6 Purchases 31 7 0 158 3,572 Sales 0 0 0 (145 ) (602 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (498 ) (2,019 ) Foreign currency translation 0 0 9 9 32 Other(4) 10 0 0 (54 ) (1 ) Transfers into Level 3(5) 0 0 21 349 3,343 Transfers out of Level 3(5) 0 0 (2 ) (253 ) (1,847 ) Fair Value, end of period $ 41 $ 12 $ 153 $ 1,751 $ 7,100 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (50 ) $ 0 Nine Months Ended September 30, 2017 Trading Account Assets Foreign government Corporate securities Structured securities(2) Equity securities All other activity (in millions) Fair Value, beginning of period $ 227 $ 188 $ 332 $ 487 $ 1 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (4 ) 1 25 0 Net investment income 4 2 1 0 0 Purchases 0 84 402 19 18 Sales 0 (7 ) (13 ) (14 ) 0 Issuances 0 0 0 0 0 Settlements (2 ) (99 ) (256 ) (44 ) (13 ) Foreign currency translation 0 0 4 9 0 Other(4) 0 0 1 30 0 Transfers into Level 3(5) 0 96 561 31 0 Transfers out of Level 3(5) 0 (6 ) (230 ) 0 0 Fair Value, end of period $ 229 $ 254 $ 803 $ 543 $ 6 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ (5 ) $ 3 $ 39 $ 0 Nine Months Ended September 30, 2017 Equity securities available- for-sale Other long-term investments Short-term investments Cash equivalents Other assets (in millions) Fair Value, beginning of period $ 265 $ 7 $ 1 $ 0 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 2 (2 ) 0 0 (25 ) Other income 0 0 0 0 0 Included in other comprehensive income (loss) 13 0 0 0 0 Net investment income 0 0 0 2 0 Purchases 25 0 12 93 25 Sales (30 ) 0 0 0 0 Issuances 0 0 0 0 0 Settlements 0 (1 ) (8 ) (6 ) 0 Foreign currency translation 6 0 0 0 0 Other(4) (1 ) 81 (1 ) 0 0 Transfers into Level 3(5) 2 10 1 4 0 Transfers out of Level 3(5) (1 ) 0 0 0 0 Fair Value, end of period $ 281 $ 95 $ 5 $ 93 $ 0 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ (3 ) $ (3 ) $ 0 $ 0 $ (25 ) Other income $ 0 $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2017 Separate account assets(3) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 1,849 $ (8,238 ) $ (22 ) $ (1,839 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 540 (18 ) (2 ) Other Income 0 0 0 0 Interest credited to policyholders’ account balances 57 0 19 0 Net investment income 1 0 0 0 Purchases 1,003 0 0 0 Sales (84 ) 0 0 0 Issuances 0 (837 ) 0 0 Settlements (555 ) 0 (18 ) 0 Foreign currency translation 0 (2 ) 0 0 Other(4) 0 0 0 647 Transfers into Level 3(5) 302 0 0 0 Transfers out of Level 3(5) (290 ) 0 0 0 Fair Value, end of period $ 2,283 $ (8,537 ) $ (39 ) $ (1,194 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 345 $ (18 ) $ (2 ) Other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 53 $ 0 $ 19 $ 0 Three Months Ended September 30, 2016 Fixed Maturities Available-For-Sale U.S. Foreign Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 5 $ 124 $ 2,254 $ 3,267 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (8 ) 5 Included in other comprehensive income (loss) 0 1 22 7 Net investment income 0 0 3 3 Purchases 0 0 75 1,062 Sales 0 0 (7 ) (361 ) Issuances 0 0 0 0 Settlements 0 0 (156 ) (103 ) Foreign currency translation 0 5 9 24 Other(4) 0 0 0 4 Transfers into Level 3(5) 0 0 195 357 Transfers out of Level 3(5) 0 0 (106 ) (756 ) Fair Value, end of period $ 5 $ 130 $ 2,281 $ 3,509 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (9 ) $ 0 Three Months Ended September 30, 2016 Trading Account Assets Foreign Corporate securities Structured securities(2) Equity securities All other (in millions) Fair Value, beginning of period $ 38 $ 216 $ 310 $ 585 $ 2 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 3 (1 ) 11 (1 ) Net investment income 0 0 0 0 0 Purchases 2 0 30 5 0 Sales 0 0 (26 ) (36 ) 0 Issuances 0 0 0 0 0 Settlements 0 (3 ) (5 ) (31 ) 0 Foreign currency translation 0 0 0 18 0 Other(4) 0 0 2 0 1 Transfers into Level 3(5) 0 9 29 0 0 Transfers out of Level 3(5) 0 0 (96 ) 0 0 Fair Value, end of period $ 40 $ 225 $ 243 $ 552 $ 2 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ 3 $ 1 $ 12 $ 0 Three Months Ended September 30, 2016 Equity Other Short-term Other (in millions) Fair Value, beginning of period $ 301 $ 14 $ 0 $ 62 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 0 (5 ) Other income 0 0 0 0 Included in other comprehensive income (loss) (17 ) 0 0 0 Net investment income 0 0 0 0 Purchases 8 0 1 7 Sales (8 ) 0 0 0 Issuances 0 0 0 0 Settlements 0 0 0 0 Foreign currency translation 13 0 0 0 Other(4) 0 0 0 0 Transfers into Level 3(5) 0 0 0 0 Transfers out of Level 3(5) 0 0 0 0 Fair Value, end of period $ 298 $ 14 $ 1 $ 64 Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 18 Other income $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2016 Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 2,128 $ (13,328 ) $ (2 ) $ (2,094 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 578 (6 ) (17 ) Other Income 0 0 0 (5 ) Interest credited to policyholders’ account balances 33 0 0 0 Net investment income 3 0 0 0 Purchases 180 0 0 0 Sales (61 ) 0 0 0 Issuances 0 (271 ) 0 (1,228 ) Settlements (303 ) 0 (5 ) 0 Foreign currency translation 0 (3 ) 0 0 Other(4) 0 0 (6 ) 622 Transfers into Level 3(5) 63 0 0 0 Transfers out of Level 3(5) (70 ) 0 0 0 Fair Value, end of period $ 1,973 $ (13,024 ) $ (19 ) $ (2,722 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 492 $ (5 ) $ (9 ) Other Income $ 0 $ 0 $ 0 $ 27 Interest credited to policyholders’ account balances $ 22 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2016 Fixed Maturities Available-For-Sale U.S. Foreign Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 6 $ 123 $ 1,222 $ 4,269 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (96 ) 7 Included in other comprehensive income (loss) 0 2 42 (32 ) Net investment income 0 0 7 11 Purchases 0 0 266 1,414 Sales 0 0 (13 ) (404 ) Issuances 0 0 0 0 Settlements (1 ) 0 (278 ) (323 ) Foreign currency translation 0 5 34 85 Other(4) 0 0 0 118 Transfers into Level 3(5) 0 0 1,316 1,561 Transfers out of Level 3(5) 0 0 (219 ) (3,197 ) Fair Value, end of period $ 5 $ 130 $ 2,281 $ 3,509 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (91 ) $ 0 Nine Months Ended September 30, 2016 Trading Account Assets Foreign Corporate securities Structured securities(2) Equity securities All other (in millions) Fair Value, beginning of period $ 34 $ 203 $ 603 $ 589 $ 5 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (9 ) (3 ) 6 0 Net investment income 0 1 1 0 0 Purchases 8 8 56 10 0 Sales 0 0 (26 ) (48 ) 0 Issuances 0 0 0 0 0 Settlements (2 ) (38 ) (10 ) (108 ) 0 Foreign currency translation 0 0 (1 ) 60 0 Other(4) 0 (15 ) 21 15 (3 ) Transfers into Level 3(5) 0 136 208 28 0 Transfers out of Level 3(5) 0 (61 ) (606 ) 0 0 Fair Value, end of period $ 40 $ 225 $ 243 $ 552 $ 2 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ 12 $ (3 ) $ 7 $ 0 Nine Months Ended September 30, 2016 Equity Other Short-term Other (in millions) Fair Value, beginning of period $ 266 $ 49 $ 0 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 2 (1 ) 0 41 Other income 0 0 0 0 Included in other comprehensive income (loss) (27 ) 0 0 0 Net investment income 0 (1 ) 0 0 Purchases 61 0 1 16 Sales (22 ) 0 0 0 Issuances 0 0 0 0 Settlements (13 ) 0 0 0 Foreign currency translation 31 0 0 0 Other(4) 0 (33 ) 0 0 Transfers into Level 3(5) 7 0 0 0 Transfers out of Level 3(5) (7 ) 0 0 0 Fair Value, end of period $ 298 $ 14 $ 1 $ 64 Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ (1 ) $ 0 $ 41 Other income $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2016 Separate Future Other Notes issued by (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 (3,800 ) (6 ) (14 ) Other Income 0 0 0 (14 ) Interest credited to policyholders’ account balances 36 0 0 0 Net investment income 16 0 0 0 Purchases 438 0 0 0 Sales (134 ) 0 0 0 Issuances 0 (786 ) 0 (1,228 ) Settlements (391 ) 0 (5 ) 0 Foreign currency translation 0 (4 ) 0 0 Other(4) 0 0 (6 ) 7,131 Transfers into Level 3(5) 336 0 0 0 Transfers out of Level 3(5) (324 ) 0 0 0 Fair Value, end of period $ 1,973 $ (13,024 ) $ (19 ) $ (2,722 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ (3,959 ) $ (6 ) $ (14 ) Other Income $ 0 $ 0 $ 0 $ (14 ) Interest credited to policyholders’ account balances $ 19 $ 0 $ 0 $ 0 __________ (1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period information has been revised to conform to current period presentation. (2) Includes asset-backed (includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types), commercial mortgage-backed and residential mortgage-backed securities. Pri |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies The Company utilizes various derivatives instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate contracts: swaps, options, swaptions, caps and floors • Equity contracts: options and total return swaps • Foreign exchange contracts: futures, options, forwards and swaps • Credit contracts: single and index reference credit default swaps • Other contracts: to-be-announced forward contracts, loan commitments, embedded derivatives and synthetic guaranteed investment contracts For detailed information on these contracts and the related strategies, see Note 21 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Primary Risks Managed by Derivatives 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 and NPR. This netting impact results in total derivative assets of $1,847 million and $1,367 million as of September 30, 2017 and December 31, 2016 , respectively, and total derivative liabilities of $722 million and $345 million as of September 30, 2017 and December 31, 2016 , respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position. Primary Underlying/Instrument Type September 30, 2017 December 31, 2016 Gross Fair Value Gross Fair Value Notional Assets Liabilities Notional Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 1,012 $ 15 $ (95 ) $ 1,117 $ 17 $ (111 ) Foreign Currency Foreign Currency Forwards 177 2 (3 ) 167 3 (1 ) Currency/Interest Rate Foreign Currency Swaps 17,384 1,033 (534 ) 14,737 1,956 (54 ) Total Qualifying Hedges $ 18,573 $ 1,050 $ (632 ) $ 16,021 $ 1,976 $ (166 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 164,478 $ 8,652 $ (3,753 ) $ 162,131 $ 8,969 $ (4,274 ) Interest Rate Futures 26,464 19 (4 ) 31,183 55 (1 ) Interest Rate Options 16,101 177 (148 ) 13,290 289 (132 ) Interest Rate Forwards 1,783 11 (1 ) 321 0 (1 ) Foreign Currency Foreign Currency Forwards 24,239 176 (389 ) 21,042 372 (892 ) Foreign Currency Options 69 0 0 93 0 0 Currency/Interest Rate Foreign Currency Swaps 13,838 915 (404 ) 12,336 1,218 (311 ) Credit Credit Default Swaps 783 7 (6 ) 918 1 (25 ) Equity Equity Futures 74 0 0 1,371 0 (5 ) Equity Options 59,962 657 (566 ) 12,020 102 (93 ) Total Return Swaps 14,644 16 (323 ) 18,167 101 (390 ) Commodity Commodity Futures 0 0 0 1 0 0 Synthetic GICs 76,931 2 (1 ) 77,197 5 0 Total Non-Qualifying Derivatives $ 399,366 $ 10,632 $ (5,595 ) $ 350,070 $ 11,112 $ (6,124 ) Total Derivatives(1) $ 417,939 $ 11,682 $ (6,227 ) $ 366,091 $ 13,088 $ (6,290 ) __________ (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $8,568 million and $8,252 million as of September 30, 2017 and December 31, 2016 , respectively, primarily included in “Future policy benefits.” 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 guaranteed investment contracts (“GICs”), which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules. 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 Unaudited Interim 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 Unaudited Interim Consolidated Statements of Financial Position. September 30, 2017 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) $ 11,566 $ (9,833 ) $ 1,733 $ (1,422 ) $ 311 Securities purchased under agreement to resell 576 0 576 (576 ) 0 Total assets $ 12,142 $ (9,833 ) $ 2,309 $ (1,998 ) $ 311 Offsetting of Financial Liabilities: Derivatives(1) $ 6,219 $ (5,505 ) $ 714 $ (629 ) $ 85 Securities sold under agreement to repurchase 8,145 0 8,145 (8,145 ) 0 Total liabilities $ 14,364 $ (5,505 ) $ 8,859 $ (8,774 ) $ 85 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 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 __________ (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. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 . 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. Three Months Ended September 30, 2017 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 3 $ (4 ) $ 0 $ 0 $ 0 $ 0 Currency (2 ) 0 0 0 0 0 Total fair value hedges 1 (4 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 1 Currency/Interest Rate 0 50 (108 ) 0 0 (447 ) Total cash flow hedges 0 50 (108 ) (1 ) 0 (446 ) Net investment hedges Currency 0 0 0 0 0 (2 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (2 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 137 0 0 0 0 0 Currency (113 ) 0 1 0 0 0 Currency/Interest Rate (93 ) 0 (2 ) 0 0 0 Credit (8 ) 0 0 0 0 0 Equity (604 ) 0 0 0 0 0 Commodity 0 0 0 0 0 0 Embedded Derivatives 1,726 0 0 0 0 0 Total non-qualifying hedges 1,045 0 (1 ) 0 0 0 Total $ 1,046 $ 46 $ (109 ) $ (1 ) $ 0 $ (448 ) Nine Months Ended September 30, 2017 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 $ 11 $ (15 ) $ 0 $ 0 $ 0 $ 0 Currency (4 ) 0 0 0 0 0 Total fair value hedges 7 (15 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (2 ) 0 5 Currency/Interest Rate 0 142 (272 ) 0 0 (988 ) Total cash flow hedges 0 142 (272 ) (2 ) 0 (983 ) Net investment hedges Currency 0 0 0 0 0 (9 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (9 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,101 0 0 0 0 0 Currency (121 ) 0 0 0 0 0 Currency/Interest Rate (233 ) 0 (4 ) 0 0 0 Credit 8 0 0 0 0 0 Equity (1,761 ) 0 0 0 0 0 Commodity 0 0 0 0 0 0 Embedded Derivatives 544 0 0 0 0 0 Total non-qualifying hedges (462 ) 0 (4 ) 0 0 0 Total $ (455 ) $ 127 $ (276 ) $ (2 ) $ 0 $ (992 ) Three Months Ended September 30, 2016 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 9 $ (8 ) $ 0 $ 0 $ 0 $ 0 Currency 7 0 0 0 0 0 Total fair value hedges 16 (8 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 3 Currency/Interest Rate 0 31 32 0 0 (208 ) Total cash flow hedges 0 31 32 (1 ) 0 (205 ) Net investment hedges Currency 0 0 0 0 0 (5 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (5 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 340 0 0 0 0 0 Currency 536 0 (1 ) 0 0 0 Currency/Interest Rate (199 ) 0 0 0 0 0 Credit 13 0 0 0 0 0 Equity (954 ) 0 0 0 0 0 Commodity 0 0 0 0 0 0 Embedded Derivatives 583 0 0 0 0 0 Total non-qualifying hedges 319 0 (1 ) 0 0 0 Total $ 335 $ 23 $ 31 $ (1 ) $ 0 $ (210 ) Nine months ended September 30, 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 $ (10 ) $ (24 ) $ 0 $ 0 $ 0 $ 0 Currency 28 (1 ) 0 0 0 0 Total fair value hedges 18 (25 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (4 ) 0 (7 ) Currency/Interest Rate 0 89 149 0 0 (65 ) Total cash flow hedges 0 89 149 (4 ) 0 (72 ) Net investment hedges Currency 0 0 0 0 0 (16 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (16 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 8,213 0 0 0 0 0 Currency 1,104 0 (4 ) 0 0 0 Currency/Interest Rate (729 ) 0 1 0 0 0 Credit 6 0 0 0 0 0 Equity (1,705 ) 0 0 0 0 0 Commodity (1 ) 0 0 0 0 0 Embedded Derivatives (3,684 ) 0 0 0 0 0 Total non-qualifying hedges 3,204 0 (3 ) 0 0 0 Total $ 3,222 $ 64 $ 146 $ (4 ) $ 0 $ (88 ) __________ (1) Amounts deferred in AOCI. For the nine months ended September 30, 2017 and 2016 , 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, 2016 $ 1,316 Net deferred gains/(losses) on cash flow hedges from January 1 to September 30, 2017 (1,021 ) Amount reclassified into current period earnings 38 Balance, September 30, 2017 $ 333 Using September 30, 2017 values, it is estimated that a pre-tax gain of approximately $151 million will be reclassified from AOCI to earnings during the subsequent twelve months ending September 30, 2018 , offset by amounts pertaining to the hedged items. As of September 30, 2017 , 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 Unaudited Interim 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 $528 million and $536 million as of September 30, 2017 and December 31, 2016 , respectively. Credit Derivatives Credit derivatives, where the Company has written credit protection on a single name reference, had outstanding notional amounts of $110 million and $ 112 million as of September 30, 2017 and December 31, 2016 , respectively. These credit derivatives are reported at fair value as an asset of $2 million and an asset of less than $1 million as of September 30, 2017 and December 31, 2016 , respectively. As of September 30, 2017 , the notional amount of these credit derivatives had the following NAIC ratings: $ 36 million in NAIC 1; $ 62 million in NAIC 2; $5 million in NAIC 3; $1 million in NAIC 4; $2 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 $480 million and $ 50 million as of September 30, 2017 and December 31, 2016 , respectively. These credit derivatives are reported at fair value as a liability of $5 million and less than $ 1 million as of September 30, 2017 and December 31, 2016 , respectively. As of September 30, 2017 , the notional amount of these credit derivatives had the following NAIC ratings: $ 50 million in NAIC 1; and $430 million in NAIC 4. 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 3 years , while the credit protection on the index references have maturities of less than 30 years . This excludes a credit derivative related to surplus notes issued by a subsidiary of Prudential Insurance as further disclosed below. The Company had entered into a credit derivative that required 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. A $12 million payment was made to terminate the credit derivative effective September 14, 2017. As of December 31, 2016 , the notional amount of this credit derivative was $ 500 million and was reported at fair value as a liability of $17 million . No collateral was pledged for this credit derivative. 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 September 30, 2017 and December 31, 2016 , the Company had $193 million and $256 million of outstanding notional amounts reported at fair value as a liability of $6 million and $8 million , respectively. 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 (i) entering into derivative transactions with highly rated major international financial institutions and other creditworthy counterparties governed by master netting agreement as applicable, (ii) trading through a central clearinghouse and over-the-counter (“OTC”), (iii) obtaining collateral, such as cash and securities, when appropriate, and (iv) setting limits on single party credit exposures which are subject to periodic management review. For detailed information on counterparty credit risk, see “—Counterparty Credit Risk” in Note 21 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . A majority of the Company’s derivative agreements have zero thresholds which require full collateralization by the party in a liability position. The Company also has derivative agreements with non-zero thresholds; if the Company’s credit rating were to fall below a certain level, the counterparties to the derivative instruments in a net liability position may request full collateralization. In addition, certain of the Company’s derivative agreements with counterparties contain credit-risk related contingent features; 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 resulting in settlement. As of September 30, 2017 , there were no net liability derivative positions with non-zero thresholds and/or downgrading of credit ratings; as such all derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements. |
Commitments and Guarantees, Con
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters | 9 Months Ended |
Sep. 30, 2017 | |
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 Commitments and Guarantees Commercial Mortgage Loan Commitments September 30, December 31, (in millions) Total outstanding mortgage loan commitments $ 3,087 $ 1,984 Portion of commitment where prearrangement to sell to investor exists $ 704 $ 454 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) September 30, December 31, (in millions) Expected to be funded from the general account and other operations outside the separate accounts(1) $ 6,812 $ 7,232 Expected to be funded from separate accounts(1) $ 118 $ 470 __________ (1) The amounts at December 31, 2016 have been revised to correct the previously reported amounts. 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 September 30, December 31, (in millions) Indemnification provided to certain securities lending clients $ 5,170 $ 5,352 Fair value of related collateral associated with above indemnifications $ 5,286 $ 5,465 Accrued liability associated with guarantee $ 0 $ 0 In the normal course of business, the Company may facilitate securities lending transactions on behalf of certain client accounts (collectively, “the accounts”) for which the Company is also 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 14, 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 September 30, December 31, (in millions) Guaranteed value of third parties’ assets $ 76,931 $ 77,197 Fair value of collateral supporting these assets $ 77,989 $ 77,760 Asset associated with guarantee, carried at fair value $ 2 $ 5 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 Unaudited Interim Consolidated Statements of Financial Position. Indemnification of Serviced Mortgage Loans September 30, December 31, (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 1,521 $ 1,371 First-loss exposure portion of above $ 459 $ 416 Accrued liability associated with guarantees $ 13 $ 13 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, and the size and remaining life of the asset. The Company services $12,174 million and $11,445 million of mortgages subject to these loss-sharing arrangements as of September 30, 2017 and December 31, 2016 , respectively, all of which are collateralized by first priority liens on the underlying multi-family residential properties. As of September 30, 2017 , these mortgages had a weighted-average debt service coverage ratio of 1.89 times and a weighted-average loan-to-value ratio of 59% . 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% . The Company had no losses related to indemnifications that were settled for the nine months ended September 30, 2017 and 2016 , respectively. Other Guarantees September 30, December 31, (in millions) Other guarantees where amount can be determined $ 31 $ 58 Accrued liability for other guarantees and indemnifications $ 4 $ 3 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 $31 million and $51 million as of September 30, 2017 and December 31, 2016 , 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. 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 September 30, 2017 , 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. Prudential of Brazil Labor and Employment Matters Prudential of Brazil (“POB”) sells insurance products to consumers through life planner franchisees (“Life Planners”), who are engaged as independent life insurance brokers and not as employees. When a Life Planner’s contractual relationship with POB is terminated, in many cases the Life Planner commences a labor suit against POB alleging entitlement to employment related benefits. POB is a defendant in numerous such lawsuits in Brazil brought by former Life Planners, and has been subject to regulatory actions challenging the validity of POB's franchise model. POB has recently modified its franchise model to, among other things, mitigate the labor risk involving Life Planners. POB may continue to become subject to additional Life Planner labor suits and regulatory actions in the future notwithstanding the steps that POB has taken to attempt to mitigate the labor risk. Behfarin v. Pruco Life In July 2017, a putative class action complaint entitled Richard Behfarin v. Pruco Life Insurance Company was filed in the United States District Court for the Central District of California, alleging that the Company imposes charges on owners of universal life policies to cure defaults and/or reinstate lapses, that are inconsistent with the applicable universal life policy. The complaint includes claims for breach of contract, breach of implied covenant of good faith and fair dealing, and violation of California law, and seeks unspecified damages along with declaratory and injunctive relief. In September 2017, the Company filed its Answer to the Complaint. The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 23 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , and should be read in conjunction with the complete descriptions provided in the Form 10-K. Individual Annuities, Individual Life and Group Insurance Wells Fargo MyTerm Sales Alex Perea, individually and on behalf of all others similarly situated v. The Prudential Insurance Company of America, et al. In February 2017, the amended complaint was withdrawn with prejudice. Huffman v. The Prudential Insurance Company of America In February 2017, all parties filed motions for summary judgment. Other Matters Securities Lending Matter In 2016, the Company self-reported to the SEC and the DOL, and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments. The Company has substantially implemented a remediation plan for the benefit of customers. The Company is cooperating with regulators in their review of this matter (which includes a review of the remediation plan) and has entered into discussions with the SEC staff regarding a possible settlement that would potentially involve charges under the Investment Advisers Act and financial remedies. We cannot predict the outcome of these discussions. Wood II, et al. v. PRIAC In August 2017, the court denied Plaintiff’s motion for class certification. In October 2017, the court issued an order confirming the parties’ stipulation dismissing the claims of the sole remaining Plaintiff with prejudice. Rosen v. PRIAC, et al. In March 2017, Plaintiff filed a voluntary notice of dismissal with prejudice as to Ferguson Enterprises, Inc. and Capital Partners, LLC d/b/a Captrust Financial Advisors. In October 2017, a three judge panel from the Second Circuit Court of Appeals affirmed the judgment of the district court, and Plaintiff subsequently filed a petition for rehearing before the entire Court of Appeals. Bouder v. PFI In June 2017, the parties filed a consent motion for preliminary approval of the class action settlement. In August 2017, the Court issued an order granting preliminary approval of the parties’ class action settlement. Financial Disclosures Concerning Death Benefits and Unclaimed Property Stephen Silverman, Derivatively on Behalf of Prudential Financial, Inc. v. John R. Strangfeld, et al. In September 2017, the Court issued a stipulated consent order dismissing the complaint without prejudice. Paul Memo, Derivatively on Behalf of Prudential Financial, Inc. v. John R. Strangfeld, et al. In August 2017, the New Jersey Appellate Division affirmed the trial court decision dismissing the complaint. In September 2017, the plaintiff’s time to appeal the New Jersey Appellate Division’s decision expired and the case is now closed. Residential Mortgage-Backed Securities Trustee Litigation PICA et al. v. Citibank N.A. —In April 2017, Citibank filed a motion for summary judgment in the federal court action. In June 2017, the state court issued a decision regarding Defendants’ motion to dismiss the amended complaint: (i) sustaining Plaintiffs’ breach of contract claims concerning Citibank’s pre-Event of Default obligations; (ii) dismissing Plaintiffs’ breach of contract claims concerning Citibank’s post-Event of Default obligations; (iii) sustaining Plaintiffs’ implied covenant of good faith and fair dealing claim; (iv) dismissing Plaintiffs’ claim for breach of fiduciary duty; and (v) dismissing Plaintiffs’ claim for breach of duty to avoid conflicts of interest. In July 2017, Citibank filed an appeal to the Appellate Division of the Supreme Court of New York, First Department, from the June 2017 decision denying, in part, its motion to dismiss. PICA et al. v. Deutsche Bank, et al. —In February 2017, the Court issued a decision regarding Defendants’ motion to dismiss the amended complaint: (i) sustaining Plaintiffs’ breach of contract claims concerning the failure to remedy known servicing violations as to all sixty-two trusts at issue; (ii) sustaining Plaintiffs’ breach of contract claims concerning the failure to enforce seller representation and warranty claims as to forty-one trusts, and dismissing such claims as to the remaining twenty-one trusts; (iii) dismissing Plaintiffs’ claim for breach of fiduciary duty; and (iv) dismissing Plaintiffs’ claim for breach of duty to avoid conflicts of interest. PICA et al. v. HSBC, et al. —In January 2017, Plaintiffs filed a motion seeking class certification and appointing class representatives and class counsel. PICA et al. v. Wells Fargo Bank, et al .—In March 2017, the federal court issued an order concerning Defendant’s motion to dismiss as to the Indenture trusts: (i) sustaining Plaintiffs’ breach of contract claims; Plaintiffs’ claims for violations of the Trust Indenture Act of 1939; and Plaintiffs’ claims for breach of the duty to avoid conflicts of interest; and (ii) dismissing Plaintiffs’ claims for breach of fiduciary duty as duplicative of the sustained contract claims. In May 2017, Wells Fargo filed a third-party complaint for contribution against PGIM, Inc., alleging that, in the event the Prudential Plaintiff Funds prevail on their claims for damages against Wells Fargo, PGIM must contribute to the award due to PGIM’s alleged breach of fiduciary duties owed to the Funds in managing the Funds’ RMBS investments. In June 2017, Wells Fargo filed a motion to dismiss the complaint in New York state court. In October 2017, PGIM filed a motion to dismiss the third-party complaint filed by Wells Fargo seeking contribution. Prudential Investment Portfolios 2, f/k/a Dryden Core Investment Fund, o/b/o Prudential Core Short-Term Bond Fund and Prudential Core Taxable Money Market Fund v. Bank of America Corporation, et al. In February 2017, the Court issued an order holding that antitrust claims cannot be asserted against entities affiliated with a bank that participated in the setting of LIBOR, if they were not involved in the setting of LIBOR. Combined with the Court’s December 2016 ruling, the Funds’ New Jersey antitrust claims were dismissed for lack of personal jurisdiction, while their antitrust claims continue in the New York and North Carolina actions. In July 2017, the Funds obtained an entry of judgment on the New Jersey antitrust claims previously dismissed on personal jurisdiction grounds and then filed an appeal with the Second Circuit Court of Appeals. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flow in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flow for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position. |
Significant Accounting Polici23
Significant Accounting Policies and Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Intercompany balances and transactions have been eliminated. The Unaudited Interim Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. See Note 5 for more information on the Company’s consolidated variable interest entities. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . 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 unaudited interim consolidated balance sheet data as of September 30, 2017 , include the assets and liabilities of Gibraltar Life as of August 31, 2017. The Company’s unaudited interim consolidated income statement data include Gibraltar Life’s results of operations for the three and nine months ended August 31, 2017 and 2016, respectively. |
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 and regulatory matters. |
Out of Period Adjustments | Out of Period Adjustments During the second quarter of 2016, the Company recorded an out of period adjustment resulting in a decrease of $148 million to “Income (loss) before income taxes and equity in earnings of operating joint ventures” for the three-month period ended June 30, 2016, and which is reflected in the nine-month period ended September 30, 2016. The adjustment reflects a charge 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 then current quarter or to any previously reported quarterly or annual financial statements. See Note 11 for additional information on the impact of this adjustment to the Company’s operating segments. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Accounting for Certain Reinsurance Contracts in our Individual Life business | Accounting for Certain Reinsurance Contracts in the Individual Life business During the second quarter of 2017, the Company recognized a charge of $237 million in the Individual Life segment, reflecting a change in estimate of reinsurance cash flows associated with universal life products as well as a change in method of reflecting these cash flows in the financial statements. Under the previous method of accounting, with the exception of recoveries pertaining to no lapse guarantees, reinsurance cash flows (e.g., premiums and recoveries) were generally recognized as they occurred. Under the new method, the expected reinsurance cash flows are recognized more ratably over the life of the underlying reinsured policies. In conjunction with this change, the way in which reinsurance is reflected in estimated gross profits used for the amortization of unearned revenue reserves, DAC and VOBA was also revised. The change represents a change in accounting estimate effected by a change in accounting principle and is included within the Company’s annual reviews and update of assumptions and other refinements. The change in accounting estimate reflected insights gained from revised cashflow modeling enabled by a systems conversion, which prompted the change to a preferable accounting method. This new methodology is viewed as preferable as the Company believes it better reflects the economics of reinsurance transactions by aligning the results of reinsurance activity more closely to the underlying direct insurance activity and by better reflecting the profit pattern of this business for purposes of the amortization of the balances noted above. |
Accounting Standards Updates Pronouncements | Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASU. ASU listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of the date of this filing. ASU not listed below were assessed and determined to be either not applicable or not material. ASU adopted during the nine months ended September 30, 2017 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters 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 ASU. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU issued but not yet adopted as of September 30, 2017 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 is explicitly scoped out of the standard. January 1, 2018 using the modified retrospective method. Based on the assessment completed to date, 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 2016-01 , Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities The ASU revises an entity’s accounting related to the recognition and measurement of certain equity investments and the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU requires equity investments, except for those accounted for using the equity method, to be measured at fair value with changes in fair value recognized in net income. The standard also amends certain disclosure requirements associated with the fair value of financial instruments. January 1, 2018 using the modified retrospective method which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. The amendments are to be applied prospectively as they relate to equity investments without readily determinable fair value that exist as of the date of adoption. The transition impact to the Company’s Consolidated Statements of Financial Position will depend on the net unrealized gain or loss on equity securities and the embedded unrealized gain or loss on equity investments currently accounted for under the cost method as of the effective date. As of September 30, 2017, the net unrealized gain on equity investments is $2.8 billion. The cumulative-effect adjustment ultimately recorded on January 1, 2018 will differ from that amount after taking into account portfolio activity and market movements that occur during the fourth quarter of 2017, as well as the offsetting impacts related to the policyholder dividend obligation in the Closed Block and deferred taxes. The prospective impact to the Company’s Consolidated Statements of Operations will depend on equity investment purchases and sales as well as period-to-period fluctuations in the market values of the Company’s equity investments that occur after the effective date. 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 2016-13 , 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 OTTI 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 the 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 OTTI 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. 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). Based on the assessment completed to date, 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. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 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). Based on the assessment completed to date, 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 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 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). Adoption of the ASU will result in general account real estate acquisitions no longer being accounted for as business combinations. As a result, direct transaction costs associated with such transactions will be capitalized. Based on the assessment completed to date, 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 2017-05 , Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets In February 2017, the FASB issued this ASU to clarify the scope and application of ASC 610-20 which provides guidance on accounting for the derecognition of a nonfinancial asset or an in substance nonfinancial asset that is not a business. The ASU defines an in substance nonfinancial asset and requires the application of certain recognition and measurement principles in the new revenue recognition standard when an entity derecognizes nonfinancial assets and in substance nonfinancial assets, and the counterparty is not a customer. January 1, 2018 using the full or modified retrospective method (with early adoption permitted). Based on the assessment completed to date, 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 2017-08 , Receivables -Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities This ASU requires certain premiums on callable debt securities to be amortized to the earliest call date. 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. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2017-12 , Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This ASU makes targeted changes to the existing hedge accounting model to better portray the economics of an entity’s risk management activities and to simplify the use of hedge accounting. 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. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 loan obligations, 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, 2016 Amortized Cost or 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 $2,310 million (fair value, $2,310 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, 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 “Accumulated other comprehensive income (loss)” (“AOCI”), which were not included in earnings. Amount excludes $542 million of net unrealized gains on impaired available-for-sale securities and $2 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 $4,627 million (fair value, $4,758 million ), which have been offset with the associated payables under a netting agreement. The following tables set forth information relating to fixed maturities and equity securities (excluding investments classified as trading), as of the dates indicated: September 30, 2017 Amortized 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 $ 21,951 $ 3,729 $ 585 $ 25,095 $ 0 Obligations of U.S. states and their political subdivisions 9,321 970 19 10,272 0 Foreign government bonds 86,965 15,783 441 102,307 0 U.S. corporate public securities 80,324 7,539 480 87,383 (10 ) U.S. corporate private securities(1) 31,453 2,179 179 33,453 (9 ) Foreign corporate public securities 26,494 2,979 103 29,370 (5 ) Foreign corporate private securities 23,231 1,071 460 23,842 0 Asset-backed securities(2) 10,908 223 15 11,116 (242 ) Commercial mortgage-backed securities 13,011 281 79 13,213 0 Residential mortgage-backed securities(3) 3,869 188 8 4,049 (2 ) Total fixed maturities, available-for-sale(1) $ 307,527 $ 34,942 $ 2,369 $ 340,100 $ (268 ) Equity securities, available-for-sale $ 7,145 $ 2,623 $ 29 $ 9,739 |
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 __________ (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 loan obligations, 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. September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 866 $ 265 $ 0 $ 1,131 Foreign corporate public securities 659 87 0 746 Foreign corporate private securities(5) 84 3 0 87 Commercial mortgage-backed securities 0 0 0 0 Residential mortgage-backed securities(3) 475 36 0 511 Total fixed maturities, held-to-maturity(5) $ 2,084 $ 391 $ 0 $ 2,475 __________ (1) Excludes notes with amortized cost of $2,310 million (fair value, $2,310 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, 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 “Accumulated other comprehensive income (loss)” (“AOCI”), which were not included in earnings. Amount excludes $542 million of net unrealized gains on impaired available-for-sale securities and $2 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 $4,627 million (fair value, $4,758 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 set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity and equity securities had been in a continuous unrealized loss position, as of the dates indicated: September 30, 2017 Less Than Twelve Months Total Fair Gross Fair Gross Fair Gross (in millions) Fixed maturities(1): U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 5,087 $ 127 $ 4,612 $ 458 $ 9,699 $ 585 Obligations of U.S. states and their political subdivisions 600 5 350 14 950 19 Foreign government bonds 6,687 195 2,229 246 8,916 441 U.S. corporate public securities 7,963 107 6,981 373 14,944 480 U.S. corporate private securities 4,679 117 1,224 62 5,903 179 Foreign corporate public securities 2,082 21 1,395 82 3,477 103 Foreign corporate private securities 2,270 36 5,346 424 7,616 460 Asset-backed securities 863 1 428 14 1,291 15 Commercial mortgage-backed securities 2,446 22 1,485 57 3,931 79 Residential mortgage-backed securities 607 4 151 4 758 8 Total $ 33,284 $ 635 $ 24,201 $ 1,734 $ 57,485 $ 2,369 Equity securities, available-for-sale $ 439 $ 28 $ 0 $ 1 $ 439 $ 29 __________ (1) Includes $12 million of fair value and less than $1 million of gross unrealized losses, which are not reflected in AOCI, on securities classified as held-to-maturity, as of September 30, 2017 . December 31, 2016 Less Than Twelve Months Total Fair Gross Fair Gross Fair Gross (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, which are not reflected in AOCI, on securities classified as held-to-maturity, as of December 31, 2016 . |
Investments Classified by Contractual Maturity Date | The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: September 30, 2017 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Fixed maturities: Due in one year or less $ 10,528 $ 11,142 $ 0 $ 0 Due after one year through five years 47,418 51,382 178 186 Due after five years through ten years 64,610 69,994 568 650 Due after ten years(1) 157,183 179,204 863 1,128 Asset-backed securities 10,908 11,116 0 0 Commercial mortgage-backed securities 13,011 13,213 0 0 Residential mortgage-backed securities 3,869 4,049 475 511 Total $ 307,527 $ 340,100 $ 2,084 $ 2,475 __________ (1) Excludes available-for-sale notes with amortized cost of $2,310 million (fair value, $2,310 million ) and held-to-maturity notes with amortized cost of $4,627 million (fair value, $4,758 million ), which have been offset with the associated payables under a netting agreement. |
Sources of Fixed Maturity and Equity Securities Proceeds and Related Investment Gains (Losses) as well as Losses on Impairments | The following table sets forth 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, for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 7,973 $ 7,585 $ 23,860 $ 21,939 Proceeds from maturities/prepayments 5,068 4,960 18,488 14,583 Gross investment gains from sales and maturities 359 440 1,160 1,234 Gross investment losses from sales and maturities (109 ) (46 ) (407 ) (343 ) OTTI recognized in earnings(2) (22 ) (29 ) (122 ) (166 ) Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(3) $ 39 $ 83 $ 128 $ 208 Equity securities, available-for-sale: Proceeds from sales(4) $ 1,421 $ 978 $ 3,364 $ 2,815 Gross investment gains from sales 357 177 829 425 Gross investment losses from sales (29 ) (30 ) (70 ) (137 ) OTTI recognized in earnings (12 ) (23 ) (23 ) (65 ) __________ (1) Includes $105 million and $102 million of non-cash related proceeds for the nine months ended September 30, 2017 and 2016 , respectively. (2) 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. (3) Includes $(1) million and $3 million of non-cash related proceeds for the nine months ended September 30, 2017 and 2016 , respectively. (4) Includes $199 million and $17 million of non-cash related proceeds for the nine months ended September 30, 2017 and 2016 , respectively. |
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 for which a portion of the OTTI loss was recognized in OCI and the corresponding changes in such amounts, for the periods indicated: Three Months Ended Nine Months Ended Three Months Ended September 30, 2016 Nine Months Ended September 30, 2016 (in millions) Credit loss impairments: Balance, beginning of period $ 341 $ 359 $ 424 $ 532 New credit loss impairments 3 10 0 27 Additional credit loss impairments on securities previously impaired 0 1 0 0 Increases due to the passage of time on previously recorded credit losses 4 11 5 17 Reductions for securities which matured, paid down, prepaid or were sold during the period (33 ) (49 ) (76 ) (217 ) Reductions for securities impaired to fair value during the period(1) 0 (14 ) 0 (2 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (1 ) (4 ) (2 ) (6 ) Balance, end of period $ 314 $ 314 $ 351 $ 351 __________ (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 and Other Trading Account Assets | The following table sets forth the composition of “Trading account assets supporting insurance liabilities,” as of the dates indicated: September 30, 2017 December 31, 2016 Amortized Fair Value Amortized Fair Value (in millions) Short-term investments and cash equivalents $ 626 $ 626 $ 655 $ 655 Fixed maturities: Corporate securities 13,811 14,115 13,903 13,997 Commercial mortgage-backed securities 2,154 2,183 2,032 2,052 Residential mortgage-backed securities(1) 999 1,010 1,142 1,150 Asset-backed securities(2) 1,190 1,216 1,333 1,349 Foreign government bonds 1,019 1,032 915 926 U.S. government authorities and agencies and obligations of U.S. states 348 398 330 376 Total fixed maturities 19,521 19,954 19,655 19,850 Equity securities 1,251 1,546 1,097 1,335 Total trading account assets supporting insurance liabilities $ 21,398 $ 22,126 $ 21,407 $ 21,840 __________ (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 following table sets forth the composition of “Other trading account assets,” as of the dates indicated: September 30, 2017 December 31, 2016 Amortized Fair Value Amortized Fair Value (in millions) Short-term investments and cash equivalents $ 27 $ 27 $ 26 $ 26 Fixed maturities 3,379 3,340 3,634 3,453 Equity securities 971 1,115 985 1,056 Other 13 14 4 5 Subtotal $ 4,390 4,496 $ 4,649 4,540 Derivative instruments 1,714 1,224 Total other trading account assets $ 6,210 $ 5,764 |
Securities Concentrations of Credit Risk | As of the dates indicated, 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 and certain U.S. government agencies and securities guaranteed by the U.S. government, as well as the securities disclosed below: September 30, 2017 December 31, 2016 Amortized Fair Value Amortized Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 64,567 $ 76,263 $ 60,240 $ 73,051 Fixed maturities, held-to-maturity 845 1,104 818 1,075 Trading account assets supporting insurance liabilities 630 641 537 550 Other trading account assets 22 22 16 16 Total $ 66,064 $ 78,030 $ 61,611 $ 74,692 September 30, 2017 December 31, 2016 Amortized Fair Value Amortized Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 8,543 $ 10,161 $ 7,581 $ 9,435 Fixed maturities, held-to-maturity 0 0 0 0 Trading account assets supporting insurance liabilities 15 16 44 44 Other trading account assets 0 0 0 0 Total $ 8,558 $ 10,177 $ 7,625 $ 9,479 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2017 December 31, 2016 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,527 23.0 % $ 12,424 23.9 % Retail 8,825 16.2 8,555 16.5 Apartments/Multi-Family 14,979 27.4 13,733 26.4 Industrial 8,956 16.4 8,075 15.5 Hospitality 1,989 3.6 2,274 4.4 Other 4,148 7.6 3,966 7.6 Total commercial mortgage loans 51,424 94.2 49,027 94.3 Agricultural property loans 3,167 5.8 2,958 5.7 Total commercial mortgage and agricultural property loans by property type 54,591 100.0 % 51,985 100.0 % Valuation allowance (102 ) (98 ) Total net commercial mortgage and agricultural property loans by property type 54,489 51,887 Other loans: Uncollateralized loans 675 638 Residential property loans 210 252 Other collateralized loans 6 10 Total other loans 891 900 Valuation allowance (7 ) (8 ) Total net other loans 884 892 Total commercial mortgage and other loans(1) $ 55,373 $ 52,779 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of September 30, 2017 and December 31, 2016 , the net carrying value of these loans was $340 million and $519 million , respectively. |
Allowance for Losses | The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: September 30, 2017 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses: Balance, beginning of year $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 Addition to (release of) allowance for losses 4 1 0 0 (1 ) 4 Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 0 0 Total ending balance $ 99 $ 3 $ 2 $ 0 $ 5 $ 109 December 31, 2016 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses: Balance, 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 |
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: September 30, 2017 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 93 3 2 0 5 103 Total ending balance(1) $ 99 $ 3 $ 2 $ 0 $ 5 $ 109 Recorded investment(2): Individually evaluated for impairment $ 76 $ 36 $ 0 $ 0 $ 2 $ 114 Collectively evaluated for impairment 51,348 3,131 210 6 673 55,368 Total ending balance(1) $ 51,424 $ 3,167 $ 210 $ 6 $ 675 $ 55,482 __________ (1) As of September 30, 2017 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. 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 Total ending balance(1) $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 Recorded investment(2): Individually evaluated for impairment $ 116 $ 30 $ 0 $ 0 $ 2 $ 148 Collectively evaluated for impairment 48,911 2,928 252 10 636 52,737 Total ending balance(1) $ 49,027 $ 2,958 $ 252 $ 10 $ 638 $ 52,885 __________ (1) As of December 31, 2016 , there were no loans acquired with deteriorated credit quality. (2) 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 September 30, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 29,375 $ 518 $ 320 $ 30,213 60%-69.99% 13,591 417 132 14,140 70%-79.99% 6,173 585 28 6,786 80% or greater 110 79 96 285 Total commercial mortgage loans $ 49,249 $ 1,599 $ 576 $ 51,424 Agricultural property loans September 30, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 2,993 $ 119 $ 15 $ 3,127 60%-69.99% 40 0 0 40 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,033 $ 119 $ 15 $ 3,167 Total commercial mortgage and agricultural property loans September 30, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 32,368 $ 637 $ 335 $ 33,340 60%-69.99% 13,631 417 132 14,180 70%-79.99% 6,173 585 28 6,786 80% or greater 110 79 96 285 Total commercial mortgage and agricultural property loans $ 52,282 $ 1,718 $ 591 $ 54,591 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 December 31, 2016 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 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 December 31, 2016 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 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 December 31, 2016 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 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 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans 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: September 30, 2017 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Non-Accrual (in millions) Commercial mortgage loans $ 51,424 $ 0 $ 0 $ 0 $ 0 $ 51,424 $ 47 Agricultural property loans 3,165 0 0 2 2 3,167 25 Residential property loans 202 4 0 4 8 210 4 Other collateralized loans 6 0 0 0 0 6 0 Uncollateralized loans 675 0 0 0 0 675 0 Total $ 55,472 $ 4 $ 0 $ 6 $ 10 $ 55,482 $ 76 __________ (1) As of September 30, 2017 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . 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 Non-Accrual (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) As of December 31, 2016 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . |
Other Long-Term Investments | The following table sets forth the composition of “Other long-term investments,” as of the dates indicated: September 30, 2017 December 31, 2016 (in millions) Joint ventures and limited partnerships: Private equity $ 4,214 $ 4,059 Hedge funds 3,007 2,660 Real estate-related 1,233 1,291 Total joint ventures and limited partnerships 8,454 8,010 Real estate held through direct ownership(1) 2,381 2,195 Other(2) 1,151 1,078 Total other long-term investments $ 11,986 $ 11,283 __________ (1) As of September 30, 2017 and December 31, 2016 , real estate held through direct ownership had mortgage debt of $780 million and $659 million , respectively. (2) Primarily includes strategic investments made by asset management operations, leveraged leases, member and activity stock held in the Federal Home Loan Banks of New York and Boston and certain derivatives. For additional information regarding the Company’s holdings in the Federal Home Loan Banks of New York and Boston, see Note 14 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Fixed maturities, available-for-sale(1) $ 2,873 $ 2,798 $ 8,524 $ 8,126 Fixed maturities, held-to-maturity(1) 55 52 163 155 Equity securities, available-for-sale 99 95 293 285 Trading account assets 229 252 698 747 Commercial mortgage and other loans 571 553 1,691 1,669 Policy loans 153 160 460 470 Short-term investments and cash equivalents 51 38 141 105 Other long-term investments 245 300 825 509 Gross investment income 4,276 4,248 12,795 12,066 Less: investment expenses (200 ) (175 ) (569 ) (534 ) Net investment income $ 4,076 $ 4,073 $ 12,226 $ 11,532 __________ (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. |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Fixed maturities $ 228 $ 365 $ 631 $ 725 Equity securities 316 124 736 223 Commercial mortgage and other loans 21 5 49 36 Investment real estate 0 14 12 15 Joint ventures and limited partnerships (1 ) (14 ) (22 ) (78 ) Derivatives(1) 1,044 323 (463 ) 3,218 Other 0 (4 ) 0 (12 ) Realized investment gains (losses), net $ 1,608 $ 813 $ 943 $ 4,127 __________ (1) Includes the hedged items offset in qualifying fair value hedge accounting relationships. |
Net Unrealized Gains (Losses) on Investment | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: September 30, December 31, (in millions) Fixed maturity securities, available-for-sale—with OTTI $ 274 $ 312 Fixed maturity securities, available-for-sale—all other 32,299 28,526 Equity securities, available-for-sale 2,594 2,599 Derivatives designated as cash flow hedges(1) 333 1,316 Other investments(2) (9 ) (21 ) Net unrealized gains (losses) on investments $ 35,491 $ 32,732 __________ (1) See Note 14 for more information on cash flow hedges. (2) As of September 30, 2017 , there were no net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.” |
Repurchase Agreements and Securities Lending | In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. The following table sets forth the composition of “Securities sold under agreements to repurchase,” as of the dates indicated: September 30, 2017 December 31, 2016 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in millions) (in millions) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 683 $ 7,318 $ 8,001 $ 950 $ 6,417 $ 7,367 U.S. corporate public securities 1 0 1 0 0 0 Foreign corporate public securities 0 0 0 6 0 6 Residential mortgage-backed securities 0 143 143 0 233 233 Equity securities 0 0 0 0 0 0 Total securities sold under agreements to repurchase(1) $ 684 $ 7,461 $ 8,145 $ 956 $ 6,650 $ 7,606 __________ (1) The Company did not have agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. The following table sets forth the composition of “Cash collateral for loaned securities” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: September 30, 2017 December 31, 2016 Remaining Contractual Maturities of the Agreements Remaining Contractual Maturities of the Agreements Overnight & Continuous Up to 30 Days Total Overnight & Continuous Up to 30 Days Total (in millions) (in millions) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 39 $ 0 $ 39 $ 9 $ 0 $ 9 Obligations of U.S. states and their political subdivisions 87 0 87 18 0 18 Foreign government bonds 392 0 392 279 0 279 U.S. corporate public securities 3,249 0 3,249 2,731 0 2,731 Foreign corporate public securities 710 0 710 786 0 786 Residential mortgage-backed securities 0 78 78 55 74 129 Equity securities 142 0 142 381 0 381 Total cash collateral for loaned securities(1) $ 4,619 $ 78 $ 4,697 $ 4,259 $ 74 $ 4,333 __________ (1) The Company did not have agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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(1) Other Consolidated VIEs September 30, December 31, September 30, December 31, (in millions) Fixed maturities, available-for-sale $ 95 $ 65 $ 278 $ 269 Fixed maturities, held-to-maturity 84 81 811 783 Trading account assets supporting insurance liabilities 0 0 9 9 Other trading account assets 1,637 2,140 0 0 Commercial mortgage and other loans 564 503 0 0 Other long-term investments 1,243 1,083 107 114 Cash and cash equivalents 149 618 0 1 Accrued investment income 7 10 3 4 Other assets 419 424 0 1 Total assets of consolidated VIEs $ 4,198 $ 4,924 $ 1,208 $ 1,181 Notes issued by consolidated VIEs(2) $ 1,517 $ 2,150 $ 0 $ 0 Other liabilities 429 611 0 7 Total liabilities of consolidated VIEs $ 1,946 $ 2,761 $ 0 $ 7 __________ (1) Total assets of consolidated VIEs reflects $1,631 million and $1,386 million as of September 30, 2017 and December 31, 2016 , respectively, related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. (2) Recourse is limited to the assets of the respective VIE and does not extend to the general credit of Prudential Financial . As of September 30, 2017 and December 31, 2016 , the maturities of these obligations were greater than five years. |
Closed Block (Tables)
Closed Block (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Liabilities and Assets | Closed Block liabilities and assets designated to the Closed Block, as well as maximum future earnings to be recognized from these liabilities and assets, are as follows: September 30, December 31, (in millions) Closed Block liabilities Future policy benefits $ 48,920 $ 49,281 Policyholders’ dividends payable 976 932 Policyholders’ dividend obligation 5,228 4,658 Policyholders’ account balances 5,154 5,204 Other Closed Block liabilities 5,406 4,262 Total Closed Block liabilities 65,684 64,337 Closed Block assets Fixed maturities, available-for-sale, at fair value 41,184 38,696 Other trading account assets, at fair value 334 283 Equity securities, available-for-sale, at fair value 2,391 2,572 Commercial mortgage and other loans 9,332 9,437 Policy loans 4,570 4,660 Other long-term investments 3,167 3,020 Short-term investments 398 837 Total investments 61,376 59,505 Cash and cash equivalents 793 1,310 Accrued investment income 506 491 Other Closed Block assets 223 206 Total Closed Block assets 62,898 61,512 Excess of reported Closed Block liabilities over Closed Block assets 2,786 2,825 Portion of above representing accumulated other comprehensive income: Net unrealized investment gains (losses) 3,494 2,990 Allocated to policyholder dividend obligation (3,518 ) (3,011 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,762 $ 2,804 |
Schedule of Closed Block Dividend Obligation | Information regarding the policyholder dividend obligation is as follows: Nine Months Ended (in millions) Balance, January 1 $ 4,658 Impact from earnings allocable to policyholder dividend obligation 63 Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 507 Balance, September 30 $ 5,228 |
Schedule of Closed Block Revenues Benefits Expenses | Closed Block revenues and benefits and expenses are as follows for the periods indicated: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Revenues Premiums $ 577 $ 599 $ 1,852 $ 1,913 Net investment income 671 707 1,997 1,968 Realized investment gains (losses), net 107 152 461 259 Other income (loss) 25 27 85 29 Total Closed Block revenues 1,380 1,485 4,395 4,169 Benefits and Expenses Policyholders’ benefits 727 758 2,371 2,423 Interest credited to policyholders’ account balances 35 34 100 101 Dividends to policyholders 478 550 1,544 1,372 General and administrative expenses 95 100 289 303 Total Closed Block benefits and expenses 1,335 1,442 4,304 4,199 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes 45 43 91 (30 ) Income tax expense (benefit) 30 30 50 (65 ) Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 15 $ 13 $ 41 $ 35 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016 660.1 230.5 429.6 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 8.7 (8.7 ) Stock-based compensation programs(1) 0.0 (3.8 ) 3.8 Balance, September 30, 2017 660.1 235.4 424.7 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation program. |
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 nine months ended September 30, 2017 and 2016 , 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, 2016 $ (973 ) $ 18,171 $ (2,577 ) $ 14,621 Change in OCI before reclassifications 735 3,164 (7 ) 3,892 Amounts reclassified from AOCI 3 (1,329 ) 168 (1,158 ) Income tax benefit (expense) (95 ) (606 ) (56 ) (757 ) Balance, September 30, 2017 $ (330 ) $ 19,400 $ (2,472 ) $ 16,598 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, 2015 $ (1,087 ) $ 15,773 $ (2,401 ) $ 12,285 Change in OCI before reclassifications 1,921 17,851 (44 ) 19,728 Amounts reclassified from AOCI 11 (1,209 ) 161 (1,037 ) Income tax benefit (expense) (375 ) (5,635 ) (41 ) (6,051 ) Balance, September 30, 2016 $ 470 $ 26,780 $ (2,325 ) $ 24,925 __________ (1) Includes cash flow hedges of $333 million and $1,316 million as of September 30, 2017 and December 31, 2016 , respectively, and $1,093 million and $1,165 million as of September 30, 2016 and December 31, 2015 , respectively. |
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Nine Months Ended Affected line item in Consolidated Statements of Operations 2017 2016 2017 2016 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustments $ (1 ) $ (3 ) $ (4 ) $ (11 ) Realized investment gains (losses), net Foreign currency translation adjustments 0 0 1 0 Other income Total foreign currency translation adjustment (1 ) (3 ) (3 ) (11 ) Net unrealized investment gains (losses): Cash flow hedges—Interest rate 0 (1 ) (2 ) (4 ) (3) Cash flow hedges—Currency/Interest rate (35 ) 83 (36 ) 265 (3) Net unrealized investment gains (losses) on available-for-sale securities 544 489 1,367 948 Total net unrealized investment gains (losses) 509 571 1,329 1,209 (4) Amortization of defined benefit pension items: Prior service cost 1 2 3 6 (5) Actuarial gain (loss) (57 ) (56 ) (171 ) (167 ) (5) Total amortization of defined benefit pension items (56 ) (54 ) (168 ) (161 ) Total reclassifications for the period $ 452 $ 514 $ 1,158 $ 1,037 __________ (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 14 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 10 for information on employee benefit plans. |
OTTI 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 DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2016 $ 312 $ (5 ) $ (6 ) $ (47 ) $ (97 ) $ 157 Net investment gains (losses) on investments arising during the period 57 (19 ) 38 Reclassification adjustment for (gains) losses included in net income (75 ) 25 (50 ) Reclassification adjustment for OTTI losses excluded from net income(1) (20 ) 7 (13 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 3 (1 ) 2 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables 9 (3 ) 6 Impact of net unrealized investment (gains) losses on policyholders’ dividends (8 ) 3 (5 ) Balance, September 30, 2017 $ 274 $ (2 ) $ 3 $ (55 ) $ (85 ) $ 135 __________ (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 Gains (Losses) on Investments(1) DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2016 $ 32,420 $ (1,056 ) $ (1,136 ) $ (2,980 ) $ (9,234 ) $ 18,014 Net investment gains (losses) on investments arising during the period 4,031 (1,364 ) 2,667 Reclassification adjustment for (gains) losses included in net income (1,254 ) 424 (830 ) Reclassification adjustment for OTTI losses excluded from net income(2) 20 (7 ) 13 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables (360 ) 133 (227 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables (65 ) 20 (45 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (503 ) 176 (327 ) Balance, September 30, 2017 $ 35,217 $ (1,416 ) $ (1,201 ) $ (3,483 ) $ (9,852 ) $ 19,265 __________ (1) Includes cash flow hedges. See Note 14 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) | 9 Months Ended |
Sep. 30, 2017 | |
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 periods indicated, is as follows: Three Months Ended September 30, 2017 2016 Income Weighted Per Share Income Weighted Per Share (in millions, except per share amounts) Basic earnings per share Net income (loss) $ 2,241 $ 1,832 Less: Income (loss) attributable to noncontrolling interests 3 5 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 27 21 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 2,211 426.2 $ 5.19 $ 1,806 435.9 $ 4.14 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 27 $ 21 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 27 21 Stock options 1.9 1.9 Deferred and long-term compensation programs 1.1 0.9 Exchangeable Surplus Notes 4 5.8 4 5.6 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 2,215 435.0 $ 5.09 $ 1,810 444.3 $ 4.07 Nine Months Ended September 30, 2017 2016 Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount (in millions, except per share amounts) Basic earnings per share Net income (loss) $ 4,109 $ 4,126 Less: Income (loss) attributable to noncontrolling interests 11 42 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 50 47 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 4,048 428.1 $ 9.46 $ 4,037 440.7 $ 9.16 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 50 $ 47 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 50 46 Stock options 2.2 1.7 Deferred and long-term compensation programs 1.0 0.9 Exchangeable Surplus Notes 13 5.8 13 5.6 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 4,061 437.1 $ 9.29 $ 4,051 448.9 $ 9.02 |
Earnings Per Share Computation | For the periods indicated, 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: Three Months Ended September 30, 2017 2016 Shares Exercise Price Shares Exercise Price (in millions, except per share amounts, based on weighted average) Antidilutive stock options based on application of the treasury stock method 0.4 $ 110.20 3.3 $ 85.22 Antidilutive stock options due to net loss available to holders of Common Stock 0.0 0.0 Antidilutive shares based on application of the treasury stock method 0.0 0.0 Antidilutive shares due to net loss available to holders of Common Stock 0.0 0.0 Total antidilutive stock options and shares 0.4 3.3 Nine Months Ended September 30, 2017 2016 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 0.3 $ 110.27 3.6 $ 83.95 Antidilutive stock options due to net loss available to holders of Common Stock 0.0 0.0 Antidilutive shares based on application of the treasury stock method 0.2 0.0 Antidilutive shares due to net loss available to holders of Common Stock 0.0 0.0 Total antidilutive stock options and shares 0.5 3.6 |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The table below presents the Company’s short-term debt as of the dates indicated: September 30, 2017 December 31, 2016 ($ in millions) Commercial paper: Prudential Financial $ 50 $ 65 Prudential Funding, LLC 616 525 Subtotal commercial paper 666 590 Current portion of long-term debt(1) 1,692 543 Total short-term debt(2) $ 2,358 $ 1,133 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 218 $ 292 Daily average commercial paper outstanding $ 1,294 $ 1,020 Weighted average maturity of outstanding commercial paper, in days 18 21 Weighted average interest rate on outstanding short-term debt(3) 0.93 % 0.43 % __________ (1) Includes $73 million that has recourse only to real estate investment property at December 31, 2016 . (2) Includes Prudential Financial debt of $1,242 million and $535 million at September 30, 2017 and December 31, 2016 , respectively. (3) Excludes the current portion of long-term debt. |
Schedule of Long-term Debt | The table below presents the Company’s long-term debt as of the dates indicated: September 30, 2017 December 31, 2016 (in millions) Fixed-rate notes: Surplus notes $ 840 $ 840 Surplus notes subject to set-off arrangements(1) 5,187 4,403 Senior notes 8,883 9,236 Mortgage debt(2) 223 177 Floating-rate notes: Surplus notes 0 499 Surplus notes subject to set-off arrangements(1) 1,750 1,456 Senior notes(3) 29 1,063 Mortgage debt(4) 557 409 Junior subordinated notes(5) 6,621 5,817 Subtotal 24,090 23,900 Less: assets under set-off arrangements(1) 6,937 5,859 Total long-term debt(6) $ 17,153 $ 18,041 __________ (1) The surplus notes have corresponding assets where rights to set-off exist, thereby reducing the amount of surplus notes included in long-term debt. (2) Includes $104 million and $82 million of debt denominated in foreign currency at September 30, 2017 and December 31, 2016 , respectively. (3) Includes $55 million of debt denominated in foreign currency at December 31, 2016 . (4) Includes $238 million and $221 million of debt denominated in foreign currency at September 30, 2017 and December 31, 2016 , respectively. (5) Includes Prudential Financial debt of $6,564 million and subsidiary debt of $57 million denominated in foreign currency at September 30, 2017. (6) Includes Prudential Financial debt of $15,303 million and $15,389 million at September 30, 2017 and December 31, 2016 , respective |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net periodic (benefit) cost included in “General and administrative expenses” includes the following components: Three Months Ended September 30, Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 (in millions) Components of net periodic (benefit) cost Service cost $ 71 $ 64 $ 5 $ 5 Interest cost 119 125 20 22 Expected return on plan assets (195 ) (189 ) (25 ) (26 ) Amortization of prior service cost (1 ) (2 ) 0 0 Amortization of actuarial (gain) loss, net 48 46 9 10 Settlements 7 1 0 0 Special termination benefits 0 0 0 0 Net periodic (benefit) cost $ 49 $ 45 $ 9 $ 11 Nine Months Ended September 30, Pension Benefits Other Postretirement Benefits 2017 2016 2017 2016 (in millions) Components of net periodic (benefit) cost Service cost $ 213 $ 189 $ 15 $ 14 Interest cost 357 374 61 68 Expected return on plan assets (585 ) (566 ) (76 ) (79 ) Amortization of prior service cost (3 ) (5 ) 0 (1 ) Amortization of actuarial (gain) loss, net 144 136 27 31 Settlements 7 3 0 0 Special termination benefits 3 2 0 0 Net periodic (benefit) cost $ 136 $ 133 $ 27 $ 33 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The table below reconciles “adjusted operating income before income taxes” to “income before income taxes and equity in earnings of operating joint ventures”: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Adjusted operating income before income taxes by segment: Individual Annuities $ 577 $ 588 $ 1,657 $ 1,343 Retirement 248 239 953 694 Asset Management 259 191 673 563 Total U.S. Retirement Solutions and Investment Management division 1,084 1,018 3,283 2,600 Individual Life 150 111 (289 ) (59 ) Group Insurance 61 62 231 177 Total U.S. Individual Life and Group Insurance division 211 173 (58 ) 118 International Insurance 799 780 2,421 2,362 Total International Insurance division 799 780 2,421 2,362 Corporate and Other operations (310 ) (413 ) (974 ) (1,140 ) Total Corporate and Other (310 ) (413 ) (974 ) (1,140 ) Total segment adjusted operating income before income taxes 1,784 1,558 4,672 3,940 Reconciling items: Realized investment gains (losses), net, and related adjustments 1,395 223 (48 ) 2,443 Charges related to realized investment gains (losses), net (231 ) 426 571 (1,096 ) Investment gains (losses) on trading account assets supporting insurance liabilities, net 85 37 330 361 Change in experience-rated contractholder liabilities due to asset value changes (31 ) 1 (188 ) (262 ) Divested businesses: Closed Block division 33 31 49 (74 ) Other divested businesses 10 56 51 76 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (24 ) (17 ) (66 ) 0 Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures $ 3,021 $ 2,315 $ 5,371 $ 5,388 |
Reconciliation of Certain Financial Information from Segments to Consolidated | The table below presents revenues and total assets for the Company’s reportable segments for the periods or as of the dates indicated: Revenues Total Assets Three Months Ended Nine Months Ended September 30, December 31, 2017 2016 2017 2016 (in millions) Individual Annuities $ 1,304 $ 1,221 $ 3,825 $ 3,473 $ 180,005 $ 170,861 Retirement 3,259 5,134 8,803 9,268 178,003 173,509 Asset Management 827 750 2,370 2,188 49,354 49,255 Total U.S. Retirement Solutions and Investment Management division 5,390 7,105 14,998 14,929 407,362 393,625 Individual Life 1,411 1,410 3,510 3,931 83,148 77,524 Group Insurance 1,363 1,333 4,108 4,017 41,147 40,642 Total U.S. Individual Life and Group Insurance division 2,774 2,743 7,618 7,948 124,295 118,166 International Insurance 5,376 5,384 16,268 15,771 211,697 197,119 Total International Insurance division 5,376 5,384 16,268 15,771 211,697 197,119 Corporate and Other operations (179 ) (182 ) (488 ) (494 ) 14,329 13,001 Total Corporate and Other (179 ) (182 ) (488 ) (494 ) 14,329 13,001 Total 13,361 15,050 38,396 38,154 757,683 721,911 Reconciling items: Realized investment gains (losses), net, and related adjustments 1,395 223 (48 ) 2,443 Charges related to realized investment gains (losses), net (63 ) (19 ) (154 ) 57 Investment gains (losses) on trading account assets supporting insurance liabilities, net 85 37 330 361 Divested businesses: Closed Block division 1,376 1,481 4,382 4,156 63,448 62,051 Other divested businesses 185 209 594 602 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (26 ) (20 ) (76 ) (44 ) Total per Unaudited Interim Consolidated Financial Statements $ 16,313 $ 16,961 $ 43,424 $ 45,729 $ 821,131 $ 783,962 |
Schedule of Intersegment Revenues | The Asset Management segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Asset Management segment intersegment revenues $ 181 $ 173 $ 534 $ 504 |
Fair Value of Assets and Liab32
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 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 $ 25,054 $ 41 $ $ 25,095 Obligations of U.S. states and their political subdivisions 0 10,260 12 10,272 Foreign government bonds 0 102,154 153 102,307 U.S. corporate public securities 0 87,296 87 87,383 U.S. corporate private securities(2) 0 32,323 1,130 33,453 Foreign corporate public securities 0 29,296 74 29,370 Foreign corporate private securities 0 23,382 460 23,842 Asset-backed securities(3) 0 4,296 6,820 11,116 Commercial mortgage-backed securities 0 13,186 27 13,213 Residential mortgage-backed securities 0 3,796 253 4,049 Subtotal 0 331,043 9,057 340,100 Trading account assets(4): U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 324 0 324 Obligations of U.S. states and their political subdivisions 0 199 0 199 Foreign government bonds 0 825 229 1,054 Corporate securities 0 16,876 254 17,130 Asset-backed securities(3) 0 550 768 1,318 Commercial mortgage-backed securities 0 2,162 33 2,195 Residential mortgage-backed securities 0 1,072 2 1,074 Equity securities 1,870 248 543 2,661 All other(5) 69 11,824 6 (9,823 ) 2,076 Subtotal 1,939 34,080 1,835 (9,823 ) 28,031 Equity securities, available-for-sale 5,699 3,759 281 9,739 Commercial mortgage and other loans 0 340 0 340 Other long-term investments(6) 17 115 95 (10 ) 217 Short-term investments 3,198 1,472 5 4,675 Cash equivalents 1,760 6,216 93 8,069 Other assets 0 0 0 0 Separate account assets(7)(8) 42,962 229,983 2,283 275,228 Total assets $ 55,575 $ 607,008 $ 13,649 $ (9,833 ) $ 666,399 Future policy benefits(9) $ 0 $ 0 $ 8,537 $ $ 8,537 Other liabilities 7 6,221 39 (5,505 ) 762 Notes issued by consolidated VIEs 0 0 1,194 1,194 Total liabilities $ 7 $ 6,221 $ 9,770 $ (5,505 ) $ 10,493 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(2) 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(3) 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(4): 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(3) 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(5) 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(6) 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 Separate account assets(7)(8) 38,915 221,253 1,849 262,017 Total assets $ 56,398 $ 581,898 $ 10,214 $ (11,716 ) $ 636,794 Future policy benefits(9) $ 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 __________ (1) “Netting” amounts represent cash collateral of $4,328 million and $5,771 million as of September 30, 2017 and December 31, 2016 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Excludes notes with fair value of $2,310 million and $1,456 million as of September 30, 2017 and December 31, 2016 , respectively, which have been offset with the associated payables under a netting agreement. (3) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (4) Includes “Trading account assets supporting insurance liabilities” and “Other trading account assets.” (5) Level 1 represents cash equivalents and short term investments. All other amounts primarily represent derivative assets. (6) Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At September 30, 2017 and December 31, 2016 , the fair values of such investments were $1,910 million and $1,579 million respectively. (7) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate net asset value per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and other invested assets, for which fair value is measured at net asset value per share (or its equivalent). At September 30, 2017 and December 31, 2016 , the fair value of such investments was $25,882 million and $25,619 million , respectively. (8) 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 Unaudited Interim Consolidated Statements of Financial Position. (9) As of September 30, 2017 , the net embedded derivative liability position of $8.5 billion includes $0.9 billion of embedded derivatives in an asset position and $9.4 billion of embedded derivatives in a liability position. 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. |
Fair Value, Transfers Between Level 1 and Level 2 | The following table presents the transfers between Level 1 and Level 2 for dates indicated below: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in millions) Transferred from Level 1 to Level 2 $ 35 $ 15 $ 98 $ 81 Transferred from Level 2 to Level 1 $ 11 $ 2 $ 94 $ 33 |
Fair Value Inputs, Assets, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of September 30, 2017 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) $ 1,577 Discounted cash flow Discount rate 0.58% - 20% 5.94% Decrease Market comparables EBITDA multiples(3) 7.3X 7.3X 7.3X Increase Liquidation Liquidation value 13.07% - 13.21% 13.14% Increase Separate account assets-commercial mortgage loans(4) $ 802 Discounted cash flow Spread 1.07% - 2.78% 1.19% Decrease Liabilities: Future policy benefits(5) $ 8,537 Discounted cash flow Lapse rate(6) 1% - 12% Decrease Spread over LIBOR(7) 0.13% - 1.27% Decrease Utilization rate(8) 52% - 97% Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0% - 14% Decrease Equity volatility curve 13% - 24% Increase 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 Separate account assets-commercial mortgage loans(4) $ 971 Discounted cash flow Spread 1.19% - 2.90% 1.37% Decrease Liabilities: Future policy benefits(5) $ 8,238 Discounted cash flow Lapse rate(6) 0% - 13% Decrease Spread over LIBOR(7) 0.25% - 1.50% Decrease Utilization rate(8) 52% - 96% Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0% - 14% Decrease Equity volatility curve 16% - 25% Increase __________ (1) Conversely, the impact of a decrease in input would have the opposite impact on 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 Company has determined that market participants would use such multiples when valuing the investments. (4) Changes in the fair value of separate account assets are borne by customers and thus are offset by changes in separate account liabilities on the Company’s Unaudited Interim Consolidated Statements of Financial Position. As a result, changes in value associated with these investments are not reflected in the Company’s Unaudited Interim Consolidated Statements of Operations. (5) 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. (6) 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. (7) The spread over London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the risk-free discount rate (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of non-performance risk (“NPR”), which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt. (8) 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. (9) 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 September 30, 2017 and 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%. (10) 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 Inputs, Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of September 30, 2017 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) $ 1,577 Discounted cash flow Discount rate 0.58% - 20% 5.94% Decrease Market comparables EBITDA multiples(3) 7.3X 7.3X 7.3X Increase Liquidation Liquidation value 13.07% - 13.21% 13.14% Increase Separate account assets-commercial mortgage loans(4) $ 802 Discounted cash flow Spread 1.07% - 2.78% 1.19% Decrease Liabilities: Future policy benefits(5) $ 8,537 Discounted cash flow Lapse rate(6) 1% - 12% Decrease Spread over LIBOR(7) 0.13% - 1.27% Decrease Utilization rate(8) 52% - 97% Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0% - 14% Decrease Equity volatility curve 13% - 24% Increase 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 Separate account assets-commercial mortgage loans(4) $ 971 Discounted cash flow Spread 1.19% - 2.90% 1.37% Decrease Liabilities: Future policy benefits(5) $ 8,238 Discounted cash flow Lapse rate(6) 0% - 13% Decrease Spread over LIBOR(7) 0.25% - 1.50% Decrease Utilization rate(8) 52% - 96% Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0% - 14% Decrease Equity volatility curve 16% - 25% Increase __________ (1) Conversely, the impact of a decrease in input would have the opposite impact on 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 Company has determined that market participants would use such multiples when valuing the investments. (4) Changes in the fair value of separate account assets are borne by customers and thus are offset by changes in separate account liabilities on the Company’s Unaudited Interim Consolidated Statements of Financial Position. As a result, changes in value associated with these investments are not reflected in the Company’s Unaudited Interim Consolidated Statements of Operations. (5) 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. (6) 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. (7) The spread over London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the risk-free discount rate (i.e., LIBOR) to reflect our estimates of rates that a market participant would use to value the living benefit contracts in both the accumulation and payout phases. This spread includes an estimate of non-performance risk (“NPR”), which is the risk that the obligation will not be fulfilled by the Company. NPR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because both funding agreements and living benefit contracts are insurance liabilities and are therefore senior to debt. (8) 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. (9) 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 September 30, 2017 and 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%. (10) 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 Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe 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. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 20 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Three Months Ended September 30, 2017 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (16 ) 8 Included in other comprehensive income (loss) 0 0 (1 ) (11 ) 7 Net investment income 0 0 0 4 1 Purchases 9 7 0 36 1,131 Sales 0 0 0 (1 ) (207 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (51 ) (605 ) Foreign currency translation 0 0 8 0 7 Other(4) 0 0 0 (44 ) 0 Transfers into Level 3(5) 0 0 3 223 698 Transfers out of Level 3(5) 0 0 0 (51 ) (684 ) Fair Value, end of period $ 41 $ 12 $ 153 $ 1,751 $ 7,100 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (10 ) $ 0 Three Months Ended September 30, 2017 Trading Account Assets Foreign government Corporate securities Structured securities(2) Equity securities All other activity (in millions) Fair Value, beginning of period $ 228 $ 200 $ 666 $ 543 $ 1 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (12 ) 0 5 0 Net investment income 1 1 0 0 0 Purchases 0 11 167 1 18 Sales 0 (1 ) 0 (3 ) 0 Issuances 0 0 0 0 0 Settlements 0 (14 ) (123 ) (37 ) (13 ) Foreign currency translation 0 0 1 1 0 Other(4) 0 (3 ) 0 33 0 Transfers into Level 3(5) 0 74 136 0 0 Transfers out of Level 3(5) 0 (2 ) (44 ) 0 0 Fair Value, end of period $ 229 $ 254 $ 803 $ 543 $ 6 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ (12 ) $ 1 $ 5 $ 0 Three Months Ended September 30, 2017 Equity securities available- for-sale Other long-term investments Short-term investments Cash equivalents Other assets (in millions) Fair Value, beginning of period $ 273 $ 76 $ 2 $ 0 $ 39 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (2 ) (1 ) 0 0 (47 ) Other income 0 0 0 0 0 Included in other comprehensive income (loss) 4 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 11 0 12 93 8 Sales (7 ) 0 0 0 0 Issuances 0 0 0 0 0 Settlements 0 (1 ) (8 ) 0 0 Foreign currency translation 0 0 0 0 0 Other(4) 0 11 (1 ) 0 0 Transfers into Level 3(5) 2 10 0 0 0 Transfers out of Level 3(5) 0 0 0 0 0 Fair Value, end of period $ 281 $ 95 $ 5 $ 93 $ 0 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ (2 ) $ (2 ) $ 0 $ 0 $ (47 ) Other income $ 0 $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2017 Separate account assets(3) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 1,777 (6 ) 12 Other Income 0 0 0 0 Interest credited to policyholders’ account balances 11 0 19 0 Net investment income 0 0 0 0 Purchases 465 0 0 0 Sales (12 ) 0 0 0 Issuances 0 (283 ) 0 0 Settlements (174 ) 0 (18 ) 0 Foreign currency translation 0 0 0 0 Other(4) 0 0 0 647 Transfers into Level 3(5) 48 0 0 0 Transfers out of Level 3(5) (162 ) 0 0 0 Fair Value, end of period $ 2,283 $ (8,537 ) $ (39 ) $ (1,194 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 1,698 $ (6 ) $ 12 Other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 13 $ 0 $ 7 $ 0 Nine Months Ended September 30, 2017 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 0 $ 5 $ 124 $ 2,173 $ 4,555 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 11 67 Included in other comprehensive income (loss) 0 0 1 (14 ) (6 ) Net investment income 0 0 0 15 6 Purchases 31 7 0 158 3,572 Sales 0 0 0 (145 ) (602 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (498 ) (2,019 ) Foreign currency translation 0 0 9 9 32 Other(4) 10 0 0 (54 ) (1 ) Transfers into Level 3(5) 0 0 21 349 3,343 Transfers out of Level 3(5) 0 0 (2 ) (253 ) (1,847 ) Fair Value, end of period $ 41 $ 12 $ 153 $ 1,751 $ 7,100 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (50 ) $ 0 Nine Months Ended September 30, 2017 Trading Account Assets Foreign government Corporate securities Structured securities(2) Equity securities All other activity (in millions) Fair Value, beginning of period $ 227 $ 188 $ 332 $ 487 $ 1 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (4 ) 1 25 0 Net investment income 4 2 1 0 0 Purchases 0 84 402 19 18 Sales 0 (7 ) (13 ) (14 ) 0 Issuances 0 0 0 0 0 Settlements (2 ) (99 ) (256 ) (44 ) (13 ) Foreign currency translation 0 0 4 9 0 Other(4) 0 0 1 30 0 Transfers into Level 3(5) 0 96 561 31 0 Transfers out of Level 3(5) 0 (6 ) (230 ) 0 0 Fair Value, end of period $ 229 $ 254 $ 803 $ 543 $ 6 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ (5 ) $ 3 $ 39 $ 0 Nine Months Ended September 30, 2017 Equity securities available- for-sale Other long-term investments Short-term investments Cash equivalents Other assets (in millions) Fair Value, beginning of period $ 265 $ 7 $ 1 $ 0 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 2 (2 ) 0 0 (25 ) Other income 0 0 0 0 0 Included in other comprehensive income (loss) 13 0 0 0 0 Net investment income 0 0 0 2 0 Purchases 25 0 12 93 25 Sales (30 ) 0 0 0 0 Issuances 0 0 0 0 0 Settlements 0 (1 ) (8 ) (6 ) 0 Foreign currency translation 6 0 0 0 0 Other(4) (1 ) 81 (1 ) 0 0 Transfers into Level 3(5) 2 10 1 4 0 Transfers out of Level 3(5) (1 ) 0 0 0 0 Fair Value, end of period $ 281 $ 95 $ 5 $ 93 $ 0 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ (3 ) $ (3 ) $ 0 $ 0 $ (25 ) Other income $ 0 $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2017 Separate account assets(3) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 1,849 $ (8,238 ) $ (22 ) $ (1,839 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 540 (18 ) (2 ) Other Income 0 0 0 0 Interest credited to policyholders’ account balances 57 0 19 0 Net investment income 1 0 0 0 Purchases 1,003 0 0 0 Sales (84 ) 0 0 0 Issuances 0 (837 ) 0 0 Settlements (555 ) 0 (18 ) 0 Foreign currency translation 0 (2 ) 0 0 Other(4) 0 0 0 647 Transfers into Level 3(5) 302 0 0 0 Transfers out of Level 3(5) (290 ) 0 0 0 Fair Value, end of period $ 2,283 $ (8,537 ) $ (39 ) $ (1,194 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 345 $ (18 ) $ (2 ) Other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 53 $ 0 $ 19 $ 0 Three Months Ended September 30, 2016 Fixed Maturities Available-For-Sale U.S. Foreign Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 5 $ 124 $ 2,254 $ 3,267 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (8 ) 5 Included in other comprehensive income (loss) 0 1 22 7 Net investment income 0 0 3 3 Purchases 0 0 75 1,062 Sales 0 0 (7 ) (361 ) Issuances 0 0 0 0 Settlements 0 0 (156 ) (103 ) Foreign currency translation 0 5 9 24 Other(4) 0 0 0 4 Transfers into Level 3(5) 0 0 195 357 Transfers out of Level 3(5) 0 0 (106 ) (756 ) Fair Value, end of period $ 5 $ 130 $ 2,281 $ 3,509 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (9 ) $ 0 Three Months Ended September 30, 2016 Trading Account Assets Foreign Corporate securities Structured securities(2) Equity securities All other (in millions) Fair Value, beginning of period $ 38 $ 216 $ 310 $ 585 $ 2 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 3 (1 ) 11 (1 ) Net investment income 0 0 0 0 0 Purchases 2 0 30 5 0 Sales 0 0 (26 ) (36 ) 0 Issuances 0 0 0 0 0 Settlements 0 (3 ) (5 ) (31 ) 0 Foreign currency translation 0 0 0 18 0 Other(4) 0 0 2 0 1 Transfers into Level 3(5) 0 9 29 0 0 Transfers out of Level 3(5) 0 0 (96 ) 0 0 Fair Value, end of period $ 40 $ 225 $ 243 $ 552 $ 2 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ 3 $ 1 $ 12 $ 0 Three Months Ended September 30, 2016 Equity Other Short-term Other (in millions) Fair Value, beginning of period $ 301 $ 14 $ 0 $ 62 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 0 (5 ) Other income 0 0 0 0 Included in other comprehensive income (loss) (17 ) 0 0 0 Net investment income 0 0 0 0 Purchases 8 0 1 7 Sales (8 ) 0 0 0 Issuances 0 0 0 0 Settlements 0 0 0 0 Foreign currency translation 13 0 0 0 Other(4) 0 0 0 0 Transfers into Level 3(5) 0 0 0 0 Transfers out of Level 3(5) 0 0 0 0 Fair Value, end of period $ 298 $ 14 $ 1 $ 64 Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 18 Other income $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2016 Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 2,128 $ (13,328 ) $ (2 ) $ (2,094 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 578 (6 ) (17 ) Other Income 0 0 0 (5 ) Interest credited to policyholders’ account balances 33 0 0 0 Net investment income 3 0 0 0 Purchases 180 0 0 0 Sales (61 ) 0 0 0 Issuances 0 (271 ) 0 (1,228 ) Settlements (303 ) 0 (5 ) 0 Foreign currency translation 0 (3 ) 0 0 Other(4) 0 0 (6 ) 622 Transfers into Level 3(5) 63 0 0 0 Transfers out of Level 3(5) (70 ) 0 0 0 Fair Value, end of period $ 1,973 $ (13,024 ) $ (19 ) $ (2,722 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 492 $ (5 ) $ (9 ) Other Income $ 0 $ 0 $ 0 $ 27 Interest credited to policyholders’ account balances $ 22 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2016 Fixed Maturities Available-For-Sale U.S. Foreign Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 6 $ 123 $ 1,222 $ 4,269 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (96 ) 7 Included in other comprehensive income (loss) 0 2 42 (32 ) Net investment income 0 0 7 11 Purchases 0 0 266 1,414 Sales 0 0 (13 ) (404 ) Issuances 0 0 0 0 Settlements (1 ) 0 (278 ) (323 ) Foreign currency translation 0 5 34 85 Other(4) 0 0 0 118 Transfers into Level 3(5) 0 0 1,316 1,561 Transfers out of Level 3(5) 0 0 (219 ) (3,197 ) Fair Value, end of period $ 5 $ 130 $ 2,281 $ 3,509 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (91 ) $ 0 Nine Months Ended September 30, 2016 Trading Account Assets Foreign Corporate securities Structured securities(2) Equity securities All other (in millions) Fair Value, beginning of period $ 34 $ 203 $ 603 $ 589 $ 5 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (9 ) (3 ) 6 0 Net investment income 0 1 1 0 0 Purchases 8 8 56 10 0 Sales 0 0 (26 ) (48 ) 0 Issuances 0 0 0 0 0 Settlements (2 ) (38 ) (10 ) (108 ) 0 Foreign currency translation 0 0 (1 ) 60 0 Other(4) 0 (15 ) 21 15 (3 ) Transfers into Level 3(5) 0 136 208 28 0 Transfers out of Level 3(5) 0 (61 ) (606 ) 0 0 Fair Value, end of period $ 40 $ 225 $ 243 $ 552 $ 2 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ 12 $ (3 ) $ 7 $ 0 Nine Months Ended September 30, 2016 Equity Other Short-term Other (in millions) Fair Value, beginning of period $ 266 $ 49 $ 0 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 2 (1 ) 0 41 Other income 0 0 0 0 Included in other comprehensive income (loss) (27 ) 0 0 0 Net investment income 0 (1 ) 0 0 Purchases 61 0 1 16 Sales (22 ) 0 0 0 Issuances 0 0 0 0 Settlements (13 ) 0 0 0 Foreign currency translation 31 0 0 0 Other(4) 0 (33 ) 0 0 Transfers into Level 3(5) 7 0 0 0 Transfers out of Level 3(5) (7 ) 0 0 0 Fair Value, end of period $ 298 $ 14 $ 1 $ 64 Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ (1 ) $ 0 $ 41 Other income $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2016 Separate Future Other Notes issued by (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 (3,800 ) (6 ) (14 ) Other Income 0 0 0 (14 ) Interest credited to policyholders’ account balances 36 0 0 0 Net investment income 16 0 0 0 Purchases 438 0 0 0 Sales (134 ) 0 0 0 Issuances 0 (786 ) 0 (1,228 ) Settlements (391 ) 0 (5 ) 0 Foreign currency translation 0 (4 ) 0 0 Other(4) 0 0 (6 ) 7,131 Transfers into Level 3(5) 336 0 0 0 Transfers out of Level 3(5) (324 ) 0 0 0 Fair Value, end of period $ 1,973 $ (13,024 ) $ (19 ) $ (2,722 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ (3,959 ) $ (6 ) $ (14 ) Other Income $ 0 $ 0 $ 0 $ (14 ) Interest credited to policyholders’ account balances $ 19 $ 0 $ 0 $ 0 __________ (1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period information has been revised to conform to current period presentation. (2) Includes asset-backed (includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types), commercial mortgage-backed and residential mortgage-backed securities. Prior period information has been revised to conform to current period presentation. (3) 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 Unaudited Interim Consolidated Statements of Financial Position. (4) Other, for the period ended September 30, 2017 , primarily represents deconsolidation of a VIE and reclassifications of certain assets between reporting categories. Other, for the period ended September 30, 2016 , primarily represents deconsolidations of certain previously consolidated collateralized loan obligations. (5) Transfers into or out of Level 3 are generally reported at 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. (6) 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. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables describe 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. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies or the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. For further information on valuation processes, see Note 20 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Three Months Ended September 30, 2017 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (16 ) 8 Included in other comprehensive income (loss) 0 0 (1 ) (11 ) 7 Net investment income 0 0 0 4 1 Purchases 9 7 0 36 1,131 Sales 0 0 0 (1 ) (207 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (51 ) (605 ) Foreign currency translation 0 0 8 0 7 Other(4) 0 0 0 (44 ) 0 Transfers into Level 3(5) 0 0 3 223 698 Transfers out of Level 3(5) 0 0 0 (51 ) (684 ) Fair Value, end of period $ 41 $ 12 $ 153 $ 1,751 $ 7,100 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (10 ) $ 0 Three Months Ended September 30, 2017 Trading Account Assets Foreign government Corporate securities Structured securities(2) Equity securities All other activity (in millions) Fair Value, beginning of period $ 228 $ 200 $ 666 $ 543 $ 1 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (12 ) 0 5 0 Net investment income 1 1 0 0 0 Purchases 0 11 167 1 18 Sales 0 (1 ) 0 (3 ) 0 Issuances 0 0 0 0 0 Settlements 0 (14 ) (123 ) (37 ) (13 ) Foreign currency translation 0 0 1 1 0 Other(4) 0 (3 ) 0 33 0 Transfers into Level 3(5) 0 74 136 0 0 Transfers out of Level 3(5) 0 (2 ) (44 ) 0 0 Fair Value, end of period $ 229 $ 254 $ 803 $ 543 $ 6 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ (12 ) $ 1 $ 5 $ 0 Three Months Ended September 30, 2017 Equity securities available- for-sale Other long-term investments Short-term investments Cash equivalents Other assets (in millions) Fair Value, beginning of period $ 273 $ 76 $ 2 $ 0 $ 39 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (2 ) (1 ) 0 0 (47 ) Other income 0 0 0 0 0 Included in other comprehensive income (loss) 4 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 11 0 12 93 8 Sales (7 ) 0 0 0 0 Issuances 0 0 0 0 0 Settlements 0 (1 ) (8 ) 0 0 Foreign currency translation 0 0 0 0 0 Other(4) 0 11 (1 ) 0 0 Transfers into Level 3(5) 2 10 0 0 0 Transfers out of Level 3(5) 0 0 0 0 0 Fair Value, end of period $ 281 $ 95 $ 5 $ 93 $ 0 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ (2 ) $ (2 ) $ 0 $ 0 $ (47 ) Other income $ 0 $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2017 Separate account assets(3) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 1,777 (6 ) 12 Other Income 0 0 0 0 Interest credited to policyholders’ account balances 11 0 19 0 Net investment income 0 0 0 0 Purchases 465 0 0 0 Sales (12 ) 0 0 0 Issuances 0 (283 ) 0 0 Settlements (174 ) 0 (18 ) 0 Foreign currency translation 0 0 0 0 Other(4) 0 0 0 647 Transfers into Level 3(5) 48 0 0 0 Transfers out of Level 3(5) (162 ) 0 0 0 Fair Value, end of period $ 2,283 $ (8,537 ) $ (39 ) $ (1,194 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 1,698 $ (6 ) $ 12 Other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 13 $ 0 $ 7 $ 0 Nine Months Ended September 30, 2017 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 0 $ 5 $ 124 $ 2,173 $ 4,555 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 11 67 Included in other comprehensive income (loss) 0 0 1 (14 ) (6 ) Net investment income 0 0 0 15 6 Purchases 31 7 0 158 3,572 Sales 0 0 0 (145 ) (602 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (498 ) (2,019 ) Foreign currency translation 0 0 9 9 32 Other(4) 10 0 0 (54 ) (1 ) Transfers into Level 3(5) 0 0 21 349 3,343 Transfers out of Level 3(5) 0 0 (2 ) (253 ) (1,847 ) Fair Value, end of period $ 41 $ 12 $ 153 $ 1,751 $ 7,100 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (50 ) $ 0 Nine Months Ended September 30, 2017 Trading Account Assets Foreign government Corporate securities Structured securities(2) Equity securities All other activity (in millions) Fair Value, beginning of period $ 227 $ 188 $ 332 $ 487 $ 1 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (4 ) 1 25 0 Net investment income 4 2 1 0 0 Purchases 0 84 402 19 18 Sales 0 (7 ) (13 ) (14 ) 0 Issuances 0 0 0 0 0 Settlements (2 ) (99 ) (256 ) (44 ) (13 ) Foreign currency translation 0 0 4 9 0 Other(4) 0 0 1 30 0 Transfers into Level 3(5) 0 96 561 31 0 Transfers out of Level 3(5) 0 (6 ) (230 ) 0 0 Fair Value, end of period $ 229 $ 254 $ 803 $ 543 $ 6 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ (5 ) $ 3 $ 39 $ 0 Nine Months Ended September 30, 2017 Equity securities available- for-sale Other long-term investments Short-term investments Cash equivalents Other assets (in millions) Fair Value, beginning of period $ 265 $ 7 $ 1 $ 0 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 2 (2 ) 0 0 (25 ) Other income 0 0 0 0 0 Included in other comprehensive income (loss) 13 0 0 0 0 Net investment income 0 0 0 2 0 Purchases 25 0 12 93 25 Sales (30 ) 0 0 0 0 Issuances 0 0 0 0 0 Settlements 0 (1 ) (8 ) (6 ) 0 Foreign currency translation 6 0 0 0 0 Other(4) (1 ) 81 (1 ) 0 0 Transfers into Level 3(5) 2 10 1 4 0 Transfers out of Level 3(5) (1 ) 0 0 0 0 Fair Value, end of period $ 281 $ 95 $ 5 $ 93 $ 0 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ (3 ) $ (3 ) $ 0 $ 0 $ (25 ) Other income $ 0 $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2017 Separate account assets(3) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 1,849 $ (8,238 ) $ (22 ) $ (1,839 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 540 (18 ) (2 ) Other Income 0 0 0 0 Interest credited to policyholders’ account balances 57 0 19 0 Net investment income 1 0 0 0 Purchases 1,003 0 0 0 Sales (84 ) 0 0 0 Issuances 0 (837 ) 0 0 Settlements (555 ) 0 (18 ) 0 Foreign currency translation 0 (2 ) 0 0 Other(4) 0 0 0 647 Transfers into Level 3(5) 302 0 0 0 Transfers out of Level 3(5) (290 ) 0 0 0 Fair Value, end of period $ 2,283 $ (8,537 ) $ (39 ) $ (1,194 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 345 $ (18 ) $ (2 ) Other income $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 53 $ 0 $ 19 $ 0 Three Months Ended September 30, 2016 Fixed Maturities Available-For-Sale U.S. Foreign Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 5 $ 124 $ 2,254 $ 3,267 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (8 ) 5 Included in other comprehensive income (loss) 0 1 22 7 Net investment income 0 0 3 3 Purchases 0 0 75 1,062 Sales 0 0 (7 ) (361 ) Issuances 0 0 0 0 Settlements 0 0 (156 ) (103 ) Foreign currency translation 0 5 9 24 Other(4) 0 0 0 4 Transfers into Level 3(5) 0 0 195 357 Transfers out of Level 3(5) 0 0 (106 ) (756 ) Fair Value, end of period $ 5 $ 130 $ 2,281 $ 3,509 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (9 ) $ 0 Three Months Ended September 30, 2016 Trading Account Assets Foreign Corporate securities Structured securities(2) Equity securities All other (in millions) Fair Value, beginning of period $ 38 $ 216 $ 310 $ 585 $ 2 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 3 (1 ) 11 (1 ) Net investment income 0 0 0 0 0 Purchases 2 0 30 5 0 Sales 0 0 (26 ) (36 ) 0 Issuances 0 0 0 0 0 Settlements 0 (3 ) (5 ) (31 ) 0 Foreign currency translation 0 0 0 18 0 Other(4) 0 0 2 0 1 Transfers into Level 3(5) 0 9 29 0 0 Transfers out of Level 3(5) 0 0 (96 ) 0 0 Fair Value, end of period $ 40 $ 225 $ 243 $ 552 $ 2 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ 3 $ 1 $ 12 $ 0 Three Months Ended September 30, 2016 Equity Other Short-term Other (in millions) Fair Value, beginning of period $ 301 $ 14 $ 0 $ 62 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 0 (5 ) Other income 0 0 0 0 Included in other comprehensive income (loss) (17 ) 0 0 0 Net investment income 0 0 0 0 Purchases 8 0 1 7 Sales (8 ) 0 0 0 Issuances 0 0 0 0 Settlements 0 0 0 0 Foreign currency translation 13 0 0 0 Other(4) 0 0 0 0 Transfers into Level 3(5) 0 0 0 0 Transfers out of Level 3(5) 0 0 0 0 Fair Value, end of period $ 298 $ 14 $ 1 $ 64 Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 18 Other income $ 0 $ 0 $ 0 $ 0 Three Months Ended September 30, 2016 Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 2,128 $ (13,328 ) $ (2 ) $ (2,094 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 578 (6 ) (17 ) Other Income 0 0 0 (5 ) Interest credited to policyholders’ account balances 33 0 0 0 Net investment income 3 0 0 0 Purchases 180 0 0 0 Sales (61 ) 0 0 0 Issuances 0 (271 ) 0 (1,228 ) Settlements (303 ) 0 (5 ) 0 Foreign currency translation 0 (3 ) 0 0 Other(4) 0 0 (6 ) 622 Transfers into Level 3(5) 63 0 0 0 Transfers out of Level 3(5) (70 ) 0 0 0 Fair Value, end of period $ 1,973 $ (13,024 ) $ (19 ) $ (2,722 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 492 $ (5 ) $ (9 ) Other Income $ 0 $ 0 $ 0 $ 27 Interest credited to policyholders’ account balances $ 22 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2016 Fixed Maturities Available-For-Sale U.S. Foreign Corporate securities(1) Structured securities(2) (in millions) Fair Value, beginning of period $ 6 $ 123 $ 1,222 $ 4,269 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 (96 ) 7 Included in other comprehensive income (loss) 0 2 42 (32 ) Net investment income 0 0 7 11 Purchases 0 0 266 1,414 Sales 0 0 (13 ) (404 ) Issuances 0 0 0 0 Settlements (1 ) 0 (278 ) (323 ) Foreign currency translation 0 5 34 85 Other(4) 0 0 0 118 Transfers into Level 3(5) 0 0 1,316 1,561 Transfers out of Level 3(5) 0 0 (219 ) (3,197 ) Fair Value, end of period $ 5 $ 130 $ 2,281 $ 3,509 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (91 ) $ 0 Nine Months Ended September 30, 2016 Trading Account Assets Foreign Corporate securities Structured securities(2) Equity securities All other (in millions) Fair Value, beginning of period $ 34 $ 203 $ 603 $ 589 $ 5 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 0 (9 ) (3 ) 6 0 Net investment income 0 1 1 0 0 Purchases 8 8 56 10 0 Sales 0 0 (26 ) (48 ) 0 Issuances 0 0 0 0 0 Settlements (2 ) (38 ) (10 ) (108 ) 0 Foreign currency translation 0 0 (1 ) 60 0 Other(4) 0 (15 ) 21 15 (3 ) Transfers into Level 3(5) 0 136 208 28 0 Transfers out of Level 3(5) 0 (61 ) (606 ) 0 0 Fair Value, end of period $ 40 $ 225 $ 243 $ 552 $ 2 Unrealized gains (losses) for assets still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 0 $ 12 $ (3 ) $ 7 $ 0 Nine Months Ended September 30, 2016 Equity Other Short-term Other (in millions) Fair Value, beginning of period $ 266 $ 49 $ 0 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 2 (1 ) 0 41 Other income 0 0 0 0 Included in other comprehensive income (loss) (27 ) 0 0 0 Net investment income 0 (1 ) 0 0 Purchases 61 0 1 16 Sales (22 ) 0 0 0 Issuances 0 0 0 0 Settlements (13 ) 0 0 0 Foreign currency translation 31 0 0 0 Other(4) 0 (33 ) 0 0 Transfers into Level 3(5) 7 0 0 0 Transfers out of Level 3(5) (7 ) 0 0 0 Fair Value, end of period $ 298 $ 14 $ 1 $ 64 Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ (1 ) $ 0 $ 41 Other income $ 0 $ 0 $ 0 $ 0 Nine Months Ended September 30, 2016 Separate Future Other Notes issued by (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 (3,800 ) (6 ) (14 ) Other Income 0 0 0 (14 ) Interest credited to policyholders’ account balances 36 0 0 0 Net investment income 16 0 0 0 Purchases 438 0 0 0 Sales (134 ) 0 0 0 Issuances 0 (786 ) 0 (1,228 ) Settlements (391 ) 0 (5 ) 0 Foreign currency translation 0 (4 ) 0 0 Other(4) 0 0 (6 ) 7,131 Transfers into Level 3(5) 336 0 0 0 Transfers out of Level 3(5) (324 ) 0 0 0 Fair Value, end of period $ 1,973 $ (13,024 ) $ (19 ) $ (2,722 ) Unrealized gains (losses) for assets/liabilities still held(6): Included in earnings: Realized investment gains (losses), net $ 0 $ (3,959 ) $ (6 ) $ (14 ) Other Income $ 0 $ 0 $ 0 $ (14 ) Interest credited to policyholders’ account balances $ 19 $ 0 $ 0 $ 0 __________ (1) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period information has been revised to conform to current period presentation. (2) Includes asset-backed (includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types), commercial mortgage-backed and residential mortgage-backed securities. Prior period information has been revised to conform to current period presentation. (3) 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 Unaudited Interim Consolidated Statements of Financial Position. (4) Other, for the period ended September 30, 2017 , primarily represents deconsolidation of a VIE and reclassifications of certain assets between reporting categories. Other, for the period ended September 30, 2016 , primarily represents deconsolidations of certain previously consolidated collateralized loan obligations. (5) Transfers into or out of Level 3 are generally reported at 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. (6) 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. |
Fair Value Assets and Liabilities Measured on Recurring Basis, Derivatives | The following tables present the balances 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,” “Other long-term investments” or “Other liabilities” in the tables contained within the sections “—Assets and Liabilities by Hierarchy Level” and “—Changes in Level 3 Assets and Liabilities”, above. As of September 30, 2017 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative Assets: Interest Rate $ 18 $ 8,853 $ 3 $ $ 8,874 Currency 0 177 0 177 Credit 0 7 0 7 Currency/Interest Rate 0 1,949 0 1,949 Equity 4 659 10 673 Commodity 0 0 0 0 Netting(1) (9,833 ) (9,833 ) Total derivative assets $ 22 $ 11,645 $ 13 $ (9,833 ) $ 1,847 Derivative Liabilities: Interest Rate $ 5 $ 3,996 $ 2 $ $ 4,003 Currency 0 392 0 392 Credit 0 6 0 6 Currency/Interest Rate 0 937 0 937 Equity 0 889 0 889 Commodity 0 0 0 0 Netting(1) (5,505 ) (5,505 ) Total derivative liabilities $ 5 $ 6,220 $ 2 $ (5,505 ) $ 722 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 __________ (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 nine months ended September 30, 2017 , as well as the portion of gains or losses included in income for the nine months ended September 30, 2017 , attributable to unrealized gains or losses related to those assets and liabilities still held at September 30, 2017 . Three Months Ended Nine Months Ended Derivative Assets- Equity Derivative Assets- Interest Rate Derivative Assets- Equity Derivative Assets- Interest Rate (in millions) Fair Value, beginning of period $ 0 $ 3 $ 0 $ 4 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 (2 ) 0 (3 ) Other income 0 0 0 0 Purchases 0 0 0 0 Sales 0 0 0 0 Issuances 0 0 0 0 Settlements 0 0 0 0 Other(1) 10 0 10 0 Transfers into Level 3(2) 0 0 0 0 Transfers out of Level 3(2) 0 0 0 0 Fair Value, end of period $ 10 $ 1 $ 10 $ 1 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 $ (3 ) $ 0 $ (3 ) Other income $ 0 $ 0 $ 0 $ 0 __________ (1) Related to warrants received in an asset restructuring that resulted in reclassification of reporting category. (2) Transfers into or out of Level 3 are generally reported at the value as of the beginning of the quarter in which the transfer occurs. Three Months Ended Nine Months Ended Derivative Assets- Equity Derivative Assets- Interest Rate Derivative Assets- Equity Derivative Assets- Interest Rate (in millions) Fair Value, beginning of period $ 2 $ 4 $ 32 $ 5 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (1 ) Other income 0 0 0 0 Purchases 0 0 0 0 Sales 0 0 0 0 Issuances 0 0 0 0 Settlements 0 0 0 0 Other(1) (2 ) 0 (32 ) 0 Transfers into Level 3(2) 0 0 0 0 Transfers out of Level 3(2) 0 0 0 0 Fair Value, end of period $ 0 $ 4 $ 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 $ 0 $ 0 Other income $ 0 $ 0 $ 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 at 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 fair value measurement is nonrecurring as these assets are measured at fair value only when there is evidence of impairment. Assets included in the table are those that were impaired, and therefore measured at fair value, during the respective reporting periods and that are still held as of the reporting date. The estimated fair values for these amounts were determined using significant unobservable inputs (Level 3). Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Realized investment gains (losses) net: Commercial mortgage loans(1) $ 0 $ (2 ) $ 0 $ (6 ) Mortgage servicing rights(2) $ 2 $ 0 $ 8 $ (2 ) Cost method investments(3) $ (7 ) $ (18 ) $ (24 ) $ (70 ) General and administrative expenses: Long-lived assets held for sale(4) $ (5 ) $ 0 $ (19 ) $ 0 September 30, 2017 December 31, 2016 (in millions) Carrying value after measurement as of period end: Commercial mortgage loans(1) $ 41 $ 47 Mortgage servicing rights(2) $ 86 $ 84 Cost method investments(3) $ 157 $ 284 Long-lived assets held for sale(4) $ 14 $ 0 __________ (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 valued using a discounted cash flow model. The model incorporates assumptions for servicing revenues, which are adjusted for expected prepayments, delinquency rates, escrow deposit income and estimated loan servicing expenses. The discount rates incorporated into the model are determined based on the estimated returns a market participant would require for this business plus a liquidity and risk premium. This estimate includes available relevant data from any active market sales of mortgage servicing rights. (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. (4) Long-lived assets held for sale are valued based on internal estimate utilizing comparable sales and asset specific conditions. |
Fair Value, Option | The following tables present information regarding assets and liabilities where the fair value option has been elected. Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Assets: Commercial mortgage and other loans: Changes in instrument-specific credit risk $ 0 $ 0 $ 0 $ 0 Other changes in fair value $ 0 $ 0 $ 0 $ 0 Other long-term investments: Changes in fair value $ 33 $ 41 $ 110 $ 17 Liabilities: Notes issued by consolidated VIEs: Changes in fair value $ (12 ) $ 22 $ 2 $ 28 Three Months Ended Nine Months Ended 2017 2016 2017 2016 (in millions) Commercial mortgage and other loans: Interest income $ 5 $ 3 $ 10 $ 7 Notes issued by consolidated VIEs: Interest expense $ 16 $ 24 $ 60 $ 92 September 30, 2017 December 31, 2016 (in millions) Commercial mortgage and other loans(1): Fair value as of period end $ 340 $ 519 Aggregate contractual principal as of period end $ 332 $ 508 Other long-term investments: Fair value as of period end $ 1,886 $ 1,556 Notes issued by consolidated VIEs: Fair value as of period end $ 1,194 $ 1,839 Aggregate contractual principal as of period end $ 1,233 $ 1,886 __________ (1) As of September 30, 2017 , for loans for which the fair value option has been elected, there were no loans in non-accrual status and none of the loans were more than 90 days past due and still accruing. |
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 Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. For additional information regarding the methods and significant assumptions used to estimate their fair value, see Note 20 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. September 30, 2017(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in millions) Assets: Fixed maturities, held-to-maturity(3) $ 0 $ 1,504 $ 971 $ 2,475 $ 2,084 Trading account assets 205 50 50 305 305 Commercial mortgage and other loans 0 134 56,716 56,850 55,033 Policy loans 1 0 11,765 11,766 11,765 Short-term investments 810 23 0 833 833 Cash and cash equivalents 6,001 273 198 6,472 6,472 Accrued investment income 0 3,278 0 3,278 3,278 Other assets 46 2,460 680 3,186 3,186 Total assets $ 7,063 $ 7,722 $ 70,380 $ 85,165 $ 82,956 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 33,541 $ 67,962 $ 101,503 $ 100,804 Securities sold under agreements to repurchase 0 8,145 0 8,145 8,145 Cash collateral for loaned securities 0 4,697 0 4,697 4,697 Short-term debt 0 1,867 501 2,368 2,358 Long-term debt(4) 2,079 15,396 2,012 19,487 17,153 Other liabilities 0 6,054 713 6,767 6,767 Separate account liabilities—investment contracts 0 70,094 30,302 100,396 100,396 Total liabilities $ 2,079 $ 139,794 $ 101,490 $ 243,363 $ 240,320 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 __________ (1) Other long-term investments excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at NAV per share (or its equivalent) as a practical expedient. At September 30, 2017 and December 31, 2016 , the fair values of these cost method investments were $1,770 million and $1,514 million , respectively. The carrying value of these investments were $1,543 million and $1,478 million as of September 30, 2017 and December 31, 2016 , respectively. (2) Carrying values presented herein differ from those in the Company’s Unaudited Interim 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. (3) As of September 30, 2017 , excludes notes with fair value and carrying amount of $4,758 million and $4,627 million , respectively. As of December 31, 2016 , excludes notes with both fair value and carrying amount of $4,403 million . These amounts have been offset with the associated payables under a netting agreement. (4) As of September 30, 2017 , includes notes with fair value and carrying amount of $7,068 million and $6,937 million , respectively. As of December 31, 2016 , includes notes with both fair value and carrying amount of $5,859 million . These amounts have been offset with the associated receivables under a netting agreement. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | 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 and NPR. This netting impact results in total derivative assets of $1,847 million and $1,367 million as of September 30, 2017 and December 31, 2016 , respectively, and total derivative liabilities of $722 million and $345 million as of September 30, 2017 and December 31, 2016 , respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position. Primary Underlying/Instrument Type September 30, 2017 December 31, 2016 Gross Fair Value Gross Fair Value Notional Assets Liabilities Notional Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 1,012 $ 15 $ (95 ) $ 1,117 $ 17 $ (111 ) Foreign Currency Foreign Currency Forwards 177 2 (3 ) 167 3 (1 ) Currency/Interest Rate Foreign Currency Swaps 17,384 1,033 (534 ) 14,737 1,956 (54 ) Total Qualifying Hedges $ 18,573 $ 1,050 $ (632 ) $ 16,021 $ 1,976 $ (166 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 164,478 $ 8,652 $ (3,753 ) $ 162,131 $ 8,969 $ (4,274 ) Interest Rate Futures 26,464 19 (4 ) 31,183 55 (1 ) Interest Rate Options 16,101 177 (148 ) 13,290 289 (132 ) Interest Rate Forwards 1,783 11 (1 ) 321 0 (1 ) Foreign Currency Foreign Currency Forwards 24,239 176 (389 ) 21,042 372 (892 ) Foreign Currency Options 69 0 0 93 0 0 Currency/Interest Rate Foreign Currency Swaps 13,838 915 (404 ) 12,336 1,218 (311 ) Credit Credit Default Swaps 783 7 (6 ) 918 1 (25 ) Equity Equity Futures 74 0 0 1,371 0 (5 ) Equity Options 59,962 657 (566 ) 12,020 102 (93 ) Total Return Swaps 14,644 16 (323 ) 18,167 101 (390 ) Commodity Commodity Futures 0 0 0 1 0 0 Synthetic GICs 76,931 2 (1 ) 77,197 5 0 Total Non-Qualifying Derivatives $ 399,366 $ 10,632 $ (5,595 ) $ 350,070 $ 11,112 $ (6,124 ) Total Derivatives(1) $ 417,939 $ 11,682 $ (6,227 ) $ 366,091 $ 13,088 $ (6,290 ) __________ (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlyings. The fair value of these embedded derivatives was a net liability of $8,568 million and $8,252 million as of September 30, 2017 and December 31, 2016 , respectively, primarily included in “Future policy benefits.” |
Offsetting of Financial 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 Unaudited Interim 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 Unaudited Interim Consolidated Statements of Financial Position. September 30, 2017 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) $ 11,566 $ (9,833 ) $ 1,733 $ (1,422 ) $ 311 Securities purchased under agreement to resell 576 0 576 (576 ) 0 Total assets $ 12,142 $ (9,833 ) $ 2,309 $ (1,998 ) $ 311 Offsetting of Financial Liabilities: Derivatives(1) $ 6,219 $ (5,505 ) $ 714 $ (629 ) $ 85 Securities sold under agreement to repurchase 8,145 0 8,145 (8,145 ) 0 Total liabilities $ 14,364 $ (5,505 ) $ 8,859 $ (8,774 ) $ 85 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 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 __________ (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting of Financial 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 Unaudited Interim 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 Unaudited Interim Consolidated Statements of Financial Position. September 30, 2017 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) $ 11,566 $ (9,833 ) $ 1,733 $ (1,422 ) $ 311 Securities purchased under agreement to resell 576 0 576 (576 ) 0 Total assets $ 12,142 $ (9,833 ) $ 2,309 $ (1,998 ) $ 311 Offsetting of Financial Liabilities: Derivatives(1) $ 6,219 $ (5,505 ) $ 714 $ (629 ) $ 85 Securities sold under agreement to repurchase 8,145 0 8,145 (8,145 ) 0 Total liabilities $ 14,364 $ (5,505 ) $ 8,859 $ (8,774 ) $ 85 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 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 __________ (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. Three Months Ended September 30, 2017 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 3 $ (4 ) $ 0 $ 0 $ 0 $ 0 Currency (2 ) 0 0 0 0 0 Total fair value hedges 1 (4 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 1 Currency/Interest Rate 0 50 (108 ) 0 0 (447 ) Total cash flow hedges 0 50 (108 ) (1 ) 0 (446 ) Net investment hedges Currency 0 0 0 0 0 (2 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (2 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 137 0 0 0 0 0 Currency (113 ) 0 1 0 0 0 Currency/Interest Rate (93 ) 0 (2 ) 0 0 0 Credit (8 ) 0 0 0 0 0 Equity (604 ) 0 0 0 0 0 Commodity 0 0 0 0 0 0 Embedded Derivatives 1,726 0 0 0 0 0 Total non-qualifying hedges 1,045 0 (1 ) 0 0 0 Total $ 1,046 $ 46 $ (109 ) $ (1 ) $ 0 $ (448 ) Nine Months Ended September 30, 2017 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 $ 11 $ (15 ) $ 0 $ 0 $ 0 $ 0 Currency (4 ) 0 0 0 0 0 Total fair value hedges 7 (15 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (2 ) 0 5 Currency/Interest Rate 0 142 (272 ) 0 0 (988 ) Total cash flow hedges 0 142 (272 ) (2 ) 0 (983 ) Net investment hedges Currency 0 0 0 0 0 (9 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (9 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,101 0 0 0 0 0 Currency (121 ) 0 0 0 0 0 Currency/Interest Rate (233 ) 0 (4 ) 0 0 0 Credit 8 0 0 0 0 0 Equity (1,761 ) 0 0 0 0 0 Commodity 0 0 0 0 0 0 Embedded Derivatives 544 0 0 0 0 0 Total non-qualifying hedges (462 ) 0 (4 ) 0 0 0 Total $ (455 ) $ 127 $ (276 ) $ (2 ) $ 0 $ (992 ) Three Months Ended September 30, 2016 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 9 $ (8 ) $ 0 $ 0 $ 0 $ 0 Currency 7 0 0 0 0 0 Total fair value hedges 16 (8 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 3 Currency/Interest Rate 0 31 32 0 0 (208 ) Total cash flow hedges 0 31 32 (1 ) 0 (205 ) Net investment hedges Currency 0 0 0 0 0 (5 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (5 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 340 0 0 0 0 0 Currency 536 0 (1 ) 0 0 0 Currency/Interest Rate (199 ) 0 0 0 0 0 Credit 13 0 0 0 0 0 Equity (954 ) 0 0 0 0 0 Commodity 0 0 0 0 0 0 Embedded Derivatives 583 0 0 0 0 0 Total non-qualifying hedges 319 0 (1 ) 0 0 0 Total $ 335 $ 23 $ 31 $ (1 ) $ 0 $ (210 ) Nine months ended September 30, 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 $ (10 ) $ (24 ) $ 0 $ 0 $ 0 $ 0 Currency 28 (1 ) 0 0 0 0 Total fair value hedges 18 (25 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (4 ) 0 (7 ) Currency/Interest Rate 0 89 149 0 0 (65 ) Total cash flow hedges 0 89 149 (4 ) 0 (72 ) Net investment hedges Currency 0 0 0 0 0 (16 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (16 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 8,213 0 0 0 0 0 Currency 1,104 0 (4 ) 0 0 0 Currency/Interest Rate (729 ) 0 1 0 0 0 Credit 6 0 0 0 0 0 Equity (1,705 ) 0 0 0 0 0 Commodity (1 ) 0 0 0 0 0 Embedded Derivatives (3,684 ) 0 0 0 0 0 Total non-qualifying hedges 3,204 0 (3 ) 0 0 0 Total $ 3,222 $ 64 $ 146 $ (4 ) $ 0 $ (88 ) __________ (1) Amounts deferred in AOCI. |
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, 2016 $ 1,316 Net deferred gains/(losses) on cash flow hedges from January 1 to September 30, 2017 (1,021 ) Amount reclassified into current period earnings 38 Balance, September 30, 2017 $ 333 |
Commitments and Guarantees, C34
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Guarantees and Contingent Liabilities [Line Items] | |
Mortgage Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: September 30, 2017 December 31, 2016 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,527 23.0 % $ 12,424 23.9 % Retail 8,825 16.2 8,555 16.5 Apartments/Multi-Family 14,979 27.4 13,733 26.4 Industrial 8,956 16.4 8,075 15.5 Hospitality 1,989 3.6 2,274 4.4 Other 4,148 7.6 3,966 7.6 Total commercial mortgage loans 51,424 94.2 49,027 94.3 Agricultural property loans 3,167 5.8 2,958 5.7 Total commercial mortgage and agricultural property loans by property type 54,591 100.0 % 51,985 100.0 % Valuation allowance (102 ) (98 ) Total net commercial mortgage and agricultural property loans by property type 54,489 51,887 Other loans: Uncollateralized loans 675 638 Residential property loans 210 252 Other collateralized loans 6 10 Total other loans 891 900 Valuation allowance (7 ) (8 ) Total net other loans 884 892 Total commercial mortgage and other loans(1) $ 55,373 $ 52,779 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of September 30, 2017 and December 31, 2016 , the net carrying value of these loans was $340 million and $519 million , respectively. |
Commitments | Commercial Mortgage Loans | |
Commitments and Guarantees and Contingent Liabilities [Line Items] | |
Mortgage Loans | Commercial Mortgage Loan Commitments September 30, December 31, (in millions) Total outstanding mortgage loan commitments $ 3,087 $ 1,984 Portion of commitment where prearrangement to sell to investor exists $ 704 $ 454 |
Commitments | Investment | |
Commitments and Guarantees and Contingent Liabilities [Line Items] | |
Commitments to Purchase Investments (excluding Commercial Mortgage Loans) | Commitments to Purchase Investments (excluding Commercial Mortgage Loans) September 30, December 31, (in millions) Expected to be funded from the general account and other operations outside the separate accounts(1) $ 6,812 $ 7,232 Expected to be funded from separate accounts(1) $ 118 $ 470 |
Indemnification | |
Commitments and Guarantees and Contingent Liabilities [Line Items] | |
Indemnification of Securities Lending Transactions | Indemnification of Securities Lending Transactions September 30, December 31, (in millions) Indemnification provided to certain securities lending clients $ 5,170 $ 5,352 Fair value of related collateral associated with above indemnifications $ 5,286 $ 5,465 Accrued liability associated with guarantee $ 0 $ 0 |
Indemnification | Serviced Mortgage Loans | |
Commitments and Guarantees and Contingent Liabilities [Line Items] | |
Mortgage Loans | Indemnification of Serviced Mortgage Loans September 30, December 31, (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 1,521 $ 1,371 First-loss exposure portion of above $ 459 $ 416 Accrued liability associated with guarantees $ 13 $ 13 |
Guarantees of Asset Values | |
Commitments and Guarantees and Contingent Liabilities [Line Items] | |
Guarantees | Guarantees of Asset Values September 30, December 31, (in millions) Guaranteed value of third parties’ assets $ 76,931 $ 77,197 Fair value of collateral supporting these assets $ 77,989 $ 77,760 Asset associated with guarantee, carried at fair value $ 2 $ 5 |
Other Guarantees | |
Commitments and Guarantees and Contingent Liabilities [Line Items] | |
Guarantees | Other Guarantees September 30, December 31, (in millions) Other guarantees where amount can be determined $ 31 $ 58 Accrued liability for other guarantees and indemnifications $ 4 $ 3 |
Business and Basis of Present35
Business and Basis of Presentation (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2017USD ($)division | Sep. 30, 2016USD ($) | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||||
Income (loss) before income taxes and equity in earnings of operating joint ventures | $ 3,021 | $ 2,315 | $ 5,371 | $ 5,388 | |
Number of divisions | division | 4 | ||||
Individual Life | Out of period adjustment | |||||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||||
Income (loss) before income taxes and equity in earnings of operating joint ventures | $ (148) | $ (148) |
Significant Accounting Polici36
Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Change in Accounting Estimate [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | [1] | $ 8,761 | $ 17,074 | ||
Net Unrealized gains on equity investments | 35,491 | $ 32,732 | |||
Change in Accounting Method Accounted for as Change in Estimate | Individual Life | |||||
Change in Accounting Estimate [Line Items] | |||||
Net Cash Provided by (Used in) Operating Activities | $ (237) | ||||
ASU 2016-01 | |||||
Change in Accounting Estimate [Line Items] | |||||
Net Unrealized gains on equity investments | $ 2,800 | ||||
[1] | Prior period amounts have been reclassified to conform to current period presentation. |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - 1 months ended Mar. 31, 2016 - AFP Habitat $ in Millions | USD ($) | CLP / shares |
Business Acquisition [Line Items] | ||
Percentage of shares acquired | 40.00% | |
Acquisition Price per Share (Chilean pesos per share) | CLP / shares | CLP 899.90 | |
Cash paid for business acquisition | $ | $ 532 |
Investments (Fixed Maturities a
Investments (Fixed Maturities and Equity Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | $ 307,527 | $ 292,581 | |
Fair Value | [1] | 340,100 | 321,419 |
Amortized Cost or Cost | 7,145 | 7,149 | |
Fair Value | 9,739 | 9,748 | |
Amortized Cost | [1] | 2,084 | 2,144 |
Fair Value | 2,475 | 2,524 | |
Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 307,527 | 292,581 | |
Gross Unrealized Gains | 34,942 | 33,463 | |
Gross Unrealized Losses | 2,369 | 4,625 | |
Fair Value | 340,100 | 321,419 | |
Amortized Cost | 2,084 | 2,144 | |
Gross Unrealized Gains | 391 | 380 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2,475 | 2,524 | |
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 or Cost | 21,951 | 21,505 | |
Gross Unrealized Gains | 3,729 | 3,280 | |
Gross Unrealized Losses | 585 | 1,001 | |
Fair Value | 25,095 | 23,784 | |
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 or Cost | 9,321 | 9,060 | |
Gross Unrealized Gains | 970 | 716 | |
Gross Unrealized Losses | 19 | 84 | |
Fair Value | 10,272 | 9,692 | |
Fixed maturities | Foreign government bonds | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 86,965 | 79,862 | |
Gross Unrealized Gains | 15,783 | 16,748 | |
Gross Unrealized Losses | 441 | 354 | |
Fair Value | 102,307 | 96,256 | |
Amortized Cost | 866 | 839 | |
Gross Unrealized Gains | 265 | 262 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,131 | 1,101 | |
Fixed maturities | U.S. corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 80,324 | 76,383 | |
Gross Unrealized Gains | 7,539 | 6,460 | |
Gross Unrealized Losses | 480 | 1,232 | |
Fair Value | 87,383 | 81,611 | |
Fixed maturities | U.S. Corporate Private Securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 31,453 | 29,974 | |
Gross Unrealized Gains | 2,179 | 2,122 | |
Gross Unrealized Losses | 179 | 308 | |
Fair Value | 33,453 | 31,788 | |
Fixed maturities | Foreign corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 26,494 | 25,758 | |
Gross Unrealized Gains | 2,979 | 2,784 | |
Gross Unrealized Losses | 103 | 305 | |
Fair Value | 29,370 | 28,237 | |
Amortized Cost | 659 | 651 | |
Gross Unrealized Gains | 87 | 71 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 746 | 722 | |
Fixed maturities | Foreign corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 23,231 | 21,383 | |
Gross Unrealized Gains | 1,071 | 646 | |
Gross Unrealized Losses | 460 | 1,149 | |
Fair Value | 23,842 | 20,880 | |
Amortized Cost | 84 | 81 | |
Gross Unrealized Gains | 3 | 4 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 87 | 85 | |
Fixed maturities | Asset-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 10,908 | 11,759 | |
Gross Unrealized Gains | 223 | 229 | |
Gross Unrealized Losses | 15 | 53 | |
Fair Value | 11,116 | 11,935 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 13,011 | 12,589 | |
Gross Unrealized Gains | 281 | 240 | |
Gross Unrealized Losses | 79 | 125 | |
Fair Value | 13,213 | 12,704 | |
Amortized Cost | 0 | 0 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 0 | 0 | |
Fixed maturities | Residential mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 3,869 | 4,308 | |
Gross Unrealized Gains | 188 | 238 | |
Gross Unrealized Losses | 8 | 14 | |
Fair Value | 4,049 | 4,532 | |
Amortized Cost | 475 | 573 | |
Gross Unrealized Gains | 36 | 43 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 511 | 616 | |
Equity securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Gross Unrealized Gains | 2,623 | 2,641 | |
Gross Unrealized Losses | 29 | 42 | |
Amortized Cost or Cost | 7,145 | 7,149 | |
Fair Value | 9,739 | 9,748 | |
Available-for-sale | OTTI | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (268) | (337) | |
Available-for-sale | OTTI | 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] | |||
OTTI in AOCI | 0 | 0 | |
Available-for-sale | OTTI | Fixed maturities | 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 | |
Available-for-sale | OTTI | Fixed maturities | Foreign government bonds | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 0 | 0 | |
Available-for-sale | OTTI | Fixed maturities | U.S. corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (10) | (17) | |
Available-for-sale | OTTI | Fixed maturities | U.S. Corporate Private Securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (9) | (22) | |
Available-for-sale | OTTI | Fixed maturities | Foreign corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (5) | (6) | |
Available-for-sale | OTTI | Fixed maturities | Foreign corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 0 | 0 | |
Available-for-sale | OTTI | Fixed maturities | Asset-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (242) | (288) | |
Available-for-sale | OTTI | Fixed maturities | Commercial mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 0 | (1) | |
Available-for-sale | OTTI | Fixed maturities | Residential mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (2) | (3) | |
Available-for-sale | Net Unrealized Investment Gains (Losses) | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 542 | 649 | |
Held-to-maturity | Net Unrealized Investment Gains (Losses) | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 2 | 1 | |
Prudential Netting Agreement | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 4,627 | 4,403 | |
Fair Value | 4,758 | 4,403 | |
Prudential Netting Agreement | Fixed maturities | U.S. Corporate Private Securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost or Cost | 2,310 | 1,456 | |
Fair Value | $ 2,310 | $ 1,456 | |
[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 | Sep. 30, 2017 | Dec. 31, 2016 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | $ 33,284 | $ 68,613 |
Less than twelve months, Gross Unrealized Losses | 635 | 3,205 |
Twelve months or more, Fair Value | 24,201 | 12,250 |
Twelve months or more, Gross Unrealized Losses | 1,734 | 1,420 |
Total, Fair Value | 57,485 | 80,863 |
Total, Gross Unrealized Losses | 2,369 | 4,625 |
Fair Value not reflected in AOCI, held-to-maturity securities | 12 | 12 |
Gross Unrealized Losses not reflected in AOCI, held-to-maturity securities | 1 | 1 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 5,087 | 9,345 |
Less than twelve months, Gross Unrealized Losses | 127 | 1,001 |
Twelve months or more, Fair Value | 4,612 | 0 |
Twelve months or more, Gross Unrealized Losses | 458 | 0 |
Total, Fair Value | 9,699 | 9,345 |
Total, Gross Unrealized Losses | 585 | 1,001 |
Fixed maturities | Obligations of U.S. states and their political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 600 | 2,677 |
Less than twelve months, Gross Unrealized Losses | 5 | 79 |
Twelve months or more, Fair Value | 350 | 19 |
Twelve months or more, Gross Unrealized Losses | 14 | 5 |
Total, Fair Value | 950 | 2,696 |
Total, Gross Unrealized Losses | 19 | 84 |
Fixed maturities | Foreign government bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 6,687 | 6,076 |
Less than twelve months, Gross Unrealized Losses | 195 | 325 |
Twelve months or more, Fair Value | 2,229 | 310 |
Twelve months or more, Gross Unrealized Losses | 246 | 29 |
Total, Fair Value | 8,916 | 6,386 |
Total, Gross Unrealized Losses | 441 | 354 |
Fixed maturities | U.S. corporate public securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 7,963 | 22,803 |
Less than twelve months, Gross Unrealized Losses | 107 | 905 |
Twelve months or more, Fair Value | 6,981 | 2,943 |
Twelve months or more, Gross Unrealized Losses | 373 | 327 |
Total, Fair Value | 14,944 | 25,746 |
Total, Gross Unrealized Losses | 480 | 1,232 |
Fixed maturities | U.S. corporate private securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 4,679 | 7,797 |
Less than twelve months, Gross Unrealized Losses | 117 | 228 |
Twelve months or more, Fair Value | 1,224 | 1,296 |
Twelve months or more, Gross Unrealized Losses | 62 | 80 |
Total, Fair Value | 5,903 | 9,093 |
Total, Gross Unrealized Losses | 179 | 308 |
Fixed maturities | Foreign corporate public securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 2,082 | 5,196 |
Less than twelve months, Gross Unrealized Losses | 21 | 162 |
Twelve months or more, Fair Value | 1,395 | 1,047 |
Twelve months or more, Gross Unrealized Losses | 82 | 143 |
Total, Fair Value | 3,477 | 6,243 |
Total, Gross Unrealized Losses | 103 | 305 |
Fixed maturities | Foreign corporate private securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 2,270 | 6,557 |
Less than twelve months, Gross Unrealized Losses | 36 | 350 |
Twelve months or more, Fair Value | 5,346 | 4,916 |
Twelve months or more, Gross Unrealized Losses | 424 | 799 |
Total, Fair Value | 7,616 | 11,473 |
Total, Gross Unrealized Losses | 460 | 1,149 |
Fixed maturities | Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 863 | 2,357 |
Less than twelve months, Gross Unrealized Losses | 1 | 20 |
Twelve months or more, Fair Value | 428 | 1,581 |
Twelve months or more, Gross Unrealized Losses | 14 | 33 |
Total, Fair Value | 1,291 | 3,938 |
Total, Gross Unrealized Losses | 15 | 53 |
Fixed maturities | Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 2,446 | 4,879 |
Less than twelve months, Gross Unrealized Losses | 22 | 123 |
Twelve months or more, Fair Value | 1,485 | 60 |
Twelve months or more, Gross Unrealized Losses | 57 | 2 |
Total, Fair Value | 3,931 | 4,939 |
Total, Gross Unrealized Losses | 79 | 125 |
Fixed maturities | Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 607 | 926 |
Less than twelve months, Gross Unrealized Losses | 4 | 12 |
Twelve months or more, Fair Value | 151 | 78 |
Twelve months or more, Gross Unrealized Losses | 4 | 2 |
Total, Fair Value | 758 | 1,004 |
Total, Gross Unrealized Losses | 8 | 14 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than twelve months, Fair Value | 439 | 637 |
Less than twelve months, Gross Unrealized Losses | 28 | 41 |
Twelve months or more, Fair Value | 0 | 12 |
Twelve months or more, Gross Unrealized Losses | 1 | 1 |
Total, Fair Value | 439 | 649 |
Total, Gross Unrealized Losses | $ 29 | $ 42 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investment [Line Items] | |||||
Net change in unrealized gains (losses) from trading account assets | $ 66 | $ 84 | $ 295 | $ 459 | |
Commercial mortgage and other loans, Acquired | 0 | 0 | 0 | 0 | |
Commercial mortgage and other loans, Sold | 2 | 0 | 2 | 0 | |
Troubled debt restructuring, Commitment to borrowers | 0 | 0 | $ 0 | ||
Troubled debt restructuring, Private debt commitments | 6 | 6 | |||
Fixed maturities | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 2,369 | 2,369 | 4,625 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 1,734 | 1,734 | 1,420 | ||
Fixed maturities | NAIC high or highest quality rating | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 2,098 | 2,098 | 4,233 | ||
Fixed maturities | NAIC other than high or highest quality rating | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 271 | 271 | 392 | ||
Corporate securities | |||||
Investment [Line Items] | |||||
Gross unrealized losses of twelve months or more concentrated in various sectors | 1,734 | 1,734 | 1,420 | ||
Equity securities | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 29 | 29 | 42 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 1 | 1 | 1 | ||
Declines in Value of 20% or More | Equity securities | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 7 | 7 | 9 | ||
Declines in Value of 20% or More and in loss position for less than six months | Equity securities | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 4 | 4 | $ 8 | ||
Other trading account assets | Other trading account assets excluding derivative | |||||
Investment [Line Items] | |||||
Net change in unrealized gains (losses) from trading account assets | $ 56 | $ 49 | $ 215 | $ 210 | |
California | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 26.00% | 26.00% | |||
Texas | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 9.00% | 9.00% | |||
New York | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 8.00% | 8.00% | |||
Europe | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 5.00% | 5.00% | |||
Asia | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 1.00% | 1.00% |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Available for Sale Securities Amortized Cost | |||
Due in one year or less | $ 10,528 | ||
Due after one year through five years | 47,418 | ||
Due after five years through ten years | 64,610 | ||
Due after ten years | 157,183 | ||
Amortized Cost | 307,527 | $ 292,581 | |
Available for Sale Securities Fair Value | |||
Due in one year or less | 11,142 | ||
Due after one year through five years | 51,382 | ||
Due after five years through ten years | 69,994 | ||
Due after ten years | 179,204 | ||
Fair Value | [1] | 340,100 | 321,419 |
Held to Maturity Securities Amortized Cost | |||
Due in one year or less | 0 | ||
Due after one year through five years | 178 | ||
Due after five years through ten years | 568 | ||
Due after ten years | 863 | ||
Amortized Cost | [1] | 2,084 | 2,144 |
Held to Maturity Securities Fair Value | |||
Due in one year or less | 0 | ||
Due after one year through five years | 186 | ||
Due after five years through ten years | 650 | ||
Due after ten years | 1,128 | ||
Fair Value | 2,475 | 2,524 | |
Asset-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Debt Maturities, without single maturity date | 10,908 | ||
Available for Sale Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 11,116 | ||
Held to Maturity Securities Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Held to Maturity Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Commercial mortgage-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Debt Maturities, without single maturity date | 13,011 | ||
Available for Sale Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 13,213 | ||
Held to Maturity Securities Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Held to Maturity Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Residential mortgage-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Debt Maturities, without single maturity date | 3,869 | ||
Available for Sale Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 4,049 | ||
Held to Maturity Securities Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 475 | ||
Held to Maturity Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 511 | ||
Fixed maturities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 307,527 | 292,581 | |
Available for Sale Securities Fair Value | |||
Fair Value | 340,100 | 321,419 | |
Held to Maturity Securities Amortized Cost | |||
Amortized Cost | 2,084 | 2,144 | |
Held to Maturity Securities Fair Value | |||
Fair Value | 2,475 | 2,524 | |
Fixed maturities | U.S. corporate private securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 31,453 | 29,974 | |
Available for Sale Securities Fair Value | |||
Fair Value | 33,453 | 31,788 | |
Fixed maturities | Asset-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 10,908 | 11,759 | |
Available for Sale Securities Fair Value | |||
Fair Value | 11,116 | 11,935 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 13,011 | 12,589 | |
Available for Sale Securities Fair Value | |||
Fair Value | 13,213 | 12,704 | |
Held to Maturity Securities Amortized Cost | |||
Amortized Cost | 0 | 0 | |
Held to Maturity Securities Fair Value | |||
Fair Value | 0 | 0 | |
Fixed maturities | Residential mortgage-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 3,869 | 4,308 | |
Available for Sale Securities Fair Value | |||
Fair Value | 4,049 | 4,532 | |
Held to Maturity Securities Amortized Cost | |||
Amortized Cost | 475 | 573 | |
Held to Maturity Securities Fair Value | |||
Fair Value | 511 | 616 | |
Fixed maturities | Prudential Netting Agreement | |||
Held to Maturity Securities Amortized Cost | |||
Amortized Cost | 4,627 | 4,403 | |
Held to Maturity Securities Fair Value | |||
Fair Value | 4,758 | 4,403 | |
Fixed maturities | Prudential Netting Agreement | U.S. corporate private securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 2,310 | 1,456 | |
Available for Sale Securities Fair Value | |||
Fair Value | $ 2,310 | $ 1,456 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Fixed Maturities42
Investments (Fixed Maturities and Equity Securities Proceeds) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Proceeds from sales | $ 3,165 | $ 2,798 | ||
Proceeds from maturities/repayments | 42,243 | 36,420 | ||
Proceeds from maturities/prepayments | 128 | 205 | ||
Fixed maturities | Available-for-sale | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Proceeds from sales | $ 7,973 | $ 7,585 | 23,860 | 21,939 |
Proceeds from maturities/repayments | 5,068 | 4,960 | 18,488 | 14,583 |
Gross investment gains from sales and maturities | 359 | 440 | 1,160 | 1,234 |
Gross investment losses from sales and maturities | (109) | (46) | (407) | (343) |
OTTI recognized in earnings | (22) | (29) | (122) | (166) |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | 105 | 102 | ||
Fixed maturities | Held-to-maturity | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Proceeds from maturities/prepayments | 39 | 83 | 128 | 208 |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | (1) | 3 | ||
Equity securities | Available-for-sale | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Proceeds from sales | 1,421 | 978 | 3,364 | 2,815 |
Gross investment gains from sales and maturities | 357 | 177 | 829 | 425 |
Gross investment losses from sales and maturities | (29) | (30) | (70) | (137) |
OTTI recognized in earnings | $ (12) | $ (23) | (23) | (65) |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ 199 | $ 17 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance, beginning of period | $ 341 | $ 424 | $ 359 | $ 532 |
New credit loss impairments | 3 | 0 | 10 | 27 |
Additional credit loss impairments on securities previously impaired | 0 | 0 | 1 | 0 |
Increases due to the passage of time on previously recorded credit losses | 4 | 5 | 11 | 17 |
Reductions for securities which matured, paid down, prepaid or were sold during the period | (33) | (76) | (49) | (217) |
Reductions for securities impaired to fair value during the period | 0 | 0 | (14) | (2) |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (1) | (2) | (4) | (6) |
Balance, ending of period | $ 314 | $ 351 | $ 314 | $ 351 |
Investments (Trading Account As
Investments (Trading Account Assets Supporting Insurance Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | $ 21,398 | $ 21,407 | |
Fair Value | [1] | 22,126 | 21,840 |
Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 19,521 | 19,655 | |
Fair Value | 19,954 | 19,850 | |
Equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 1,251 | 1,097 | |
Fair Value | 1,546 | 1,335 | |
Short-term investments and cash equivalents | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 626 | 655 | |
Fair Value | 626 | 655 | |
Corporate securities | Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 13,811 | 13,903 | |
Fair Value | 14,115 | 13,997 | |
Commercial mortgage-backed securities | Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 2,154 | 2,032 | |
Fair Value | 2,183 | 2,052 | |
Residential mortgage-backed securities | Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 999 | 1,142 | |
Fair Value | 1,010 | 1,150 | |
Asset-backed securities | Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 1,190 | 1,333 | |
Fair Value | 1,216 | 1,349 | |
Foreign government bonds | Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 1,019 | 915 | |
Fair Value | 1,032 | 926 | |
U.S. government authorities and agencies and obligations of U.S. states | Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 348 | 330 | |
Fair Value | $ 398 | $ 376 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Other Trading Acco
Investments (Other Trading Account Assets) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | $ 21,398 | $ 21,407 | |
Fair Value | [1] | 22,126 | 21,840 |
Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 19,521 | 19,655 | |
Fair Value | 19,954 | 19,850 | |
Equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 1,251 | 1,097 | |
Fair Value | 1,546 | 1,335 | |
Other trading account assets | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair Value | 6,210 | 5,764 | |
Other trading account assets | Short-term investments and cash equivalents | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 27 | 26 | |
Fair Value | 27 | 26 | |
Other trading account assets | Fixed maturities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 3,379 | 3,634 | |
Fair Value | 3,340 | 3,453 | |
Other trading account assets | Equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 971 | 985 | |
Fair Value | 1,115 | 1,056 | |
Other trading account assets | Other | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 13 | 4 | |
Fair Value | 14 | 5 | |
Other trading account assets | Subtotal other trading account assets excluding derivative | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized Cost or Cost | 4,390 | 4,649 | |
Fair Value | 4,496 | 4,540 | |
Other trading account assets | Derivative instruments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair Value | $ 1,714 | $ 1,224 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Concentrations of
Investments (Concentrations of Credit Risk) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | $ 66,064 | $ 61,611 |
Concentrations of credit risk at fair value | 78,030 | 74,692 |
Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 8,558 | 7,625 |
Concentrations of credit risk at fair value | 10,177 | 9,479 |
Trading account assets supporting insurance liabilities | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 630 | 537 |
Concentrations of credit risk at fair value | 641 | 550 |
Trading account assets supporting insurance liabilities | Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 15 | 44 |
Concentrations of credit risk at fair value | 16 | 44 |
Other trading account assets | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 22 | 16 |
Concentrations of credit risk at fair value | 22 | 16 |
Other trading account assets | Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 0 | 0 |
Concentrations of credit risk at fair value | 0 | 0 |
Available-for-sale | Fixed maturities | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 64,567 | 60,240 |
Concentrations of credit risk at fair value | 76,263 | 73,051 |
Available-for-sale | Fixed maturities | Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 8,543 | 7,581 |
Concentrations of credit risk at fair value | 10,161 | 9,435 |
Held-to-maturity | Fixed maturities | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 845 | 818 |
Concentrations of credit risk at fair value | 1,104 | 1,075 |
Held-to-maturity | Fixed maturities | Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 0 | 0 |
Concentrations of credit risk at fair value | $ 0 | $ 0 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 54,591 | $ 51,985 | |
Other loans | 891 | 900 | |
Total commercial mortgage and other loans | [1] | $ 55,373 | $ 52,779 |
% of Total | 100.00% | 100.00% | |
Net carrying value of commercial loans held for sale | $ 340 | $ 519 | |
Commercial Mortgage Loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 51,424 | $ 49,027 | |
% of Total | 94.20% | 94.30% | |
Commercial mortgage and agricultural property loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Valuation allowance, Commercial mortgage and agricultural property loans | $ (102) | $ (98) | |
Total net loans | 54,489 | 51,887 | |
Uncollateralized loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Other loans | 675 | 638 | |
Residential property loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Other loans | 210 | 252 | |
Other collateralized loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Other loans | 6 | 10 | |
Other loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total net loans | 884 | 892 | |
Valuation allowance, Other loans | (7) | (8) | |
Office | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 12,527 | $ 12,424 | |
% of Total | 23.00% | 23.90% | |
Retail | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 8,825 | $ 8,555 | |
% of Total | 16.20% | 16.50% | |
Apartments/Multi-Family | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 14,979 | $ 13,733 | |
% of Total | 27.40% | 26.40% | |
Industrial | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 8,956 | $ 8,075 | |
% of Total | 16.40% | 15.50% | |
Hospitality | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 1,989 | $ 2,274 | |
% of Total | 3.60% | 4.40% | |
Other | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 4,148 | $ 3,966 | |
% of Total | 7.60% | 7.60% | |
Agricultural property loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 3,167 | $ 2,958 | |
% of Total | 5.80% | 5.70% | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 106 | $ 112 |
Addition to (release of) allowance for losses | 4 | (6) |
Charge-offs, net of recoveries | (1) | (1) |
Change in foreign exchange | 0 | 1 |
Total ending balance | 109 | 106 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 96 | 97 |
Addition to (release of) allowance for losses | 4 | 0 |
Charge-offs, net of recoveries | (1) | (1) |
Change in foreign exchange | 0 | 0 |
Total ending balance | 99 | 96 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 2 | 2 |
Addition to (release of) allowance for losses | 1 | 0 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 3 | 2 |
Residential Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 2 | 3 |
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 |
Other Collateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, 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] | ||
Balance, beginning of year | 6 | 10 |
Addition to (release of) allowance for losses | (1) | (5) |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 1 |
Total ending balance | $ 5 | $ 6 |
Investments (Allowance for Cr49
Investments (Allowance for Credit Losses and Recorded Investment) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for credit losses: | |||
Individually evaluated for impairment | $ 6 | $ 6 | |
Collectively evaluated for impairment | 103 | 100 | |
Total ending balance | 109 | 106 | $ 112 |
Recorded Investment: | |||
Individually evaluated for impairment | 114 | 148 | |
Collectively evaluated for impairment | 55,368 | 52,737 | |
Total ending balance | 55,482 | 52,885 | |
Commercial Mortgage Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 6 | 6 | |
Collectively evaluated for impairment | 93 | 90 | |
Total ending balance | 99 | 96 | 97 |
Recorded Investment: | |||
Individually evaluated for impairment | 76 | 116 | |
Collectively evaluated for impairment | 51,348 | 48,911 | |
Total ending balance | 51,424 | 49,027 | |
Agricultural Property Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 3 | 2 | |
Total ending balance | 3 | 2 | 2 |
Recorded Investment: | |||
Individually evaluated for impairment | 36 | 30 | |
Collectively evaluated for impairment | 3,131 | 2,928 | |
Total ending balance | 3,167 | 2,958 | |
Residential Property Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 2 | 2 | |
Total ending balance | 2 | 2 | 3 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 210 | 252 | |
Total ending balance | 210 | 252 | |
Other Collateralized Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | |
Total ending balance | 0 | 0 | 0 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 6 | 10 | |
Total ending balance | 6 | 10 | |
Uncollateralized Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 5 | 6 | |
Total ending balance | 5 | 6 | $ 10 |
Recorded Investment: | |||
Individually evaluated for impairment | 2 | 2 | |
Collectively evaluated for impairment | 673 | 636 | |
Total ending balance | $ 675 | $ 638 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 51,424 | $ 49,027 |
Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,167 | 2,958 |
Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 54,591 | 51,985 |
0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 30,213 | 29,203 |
0%-59.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,127 | 2,934 |
0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 33,340 | 32,137 |
60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 14,140 | 13,124 |
60%-69.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 40 | 24 |
60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 14,180 | 13,148 |
70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,786 | 6,133 |
70%-79.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,786 | 6,133 |
80% or greater | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 285 | 567 |
80% or greater | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 285 | 567 |
1.2X | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 49,249 | 46,495 |
1.2X | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,033 | 2,827 |
1.2X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 52,282 | 49,322 |
1.2X | 0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 29,375 | 28,131 |
1.2X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,993 | 2,803 |
1.2X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 32,368 | 30,934 |
1.2X | 60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 13,591 | 12,608 |
1.2X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 40 | 24 |
1.2X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 13,631 | 12,632 |
1.2X | 70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,173 | 5,383 |
1.2X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.2X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,173 | 5,383 |
1.2X | 80% or greater | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 110 | 373 |
1.2X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.2X | 80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 110 | 373 |
1.0X to 1.2X | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,599 | 1,603 |
1.0X to 1.2X | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 119 | 114 |
1.0X to 1.2X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 1,718 | 1,717 |
1.0X to 1.2X | 0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 518 | 446 |
1.0X to 1.2X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 119 | 114 |
1.0X to 1.2X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 637 | 560 |
1.0X to 1.2X | 60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 417 | 401 |
1.0X to 1.2X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X to 1.2X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 417 | 401 |
1.0X to 1.2X | 70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 585 | 694 |
1.0X to 1.2X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X to 1.2X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 585 | 694 |
1.0X to 1.2X | 80% or greater | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 79 | 62 |
1.0X to 1.2X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X to 1.2X | 80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 79 | 62 |
1.0X | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 576 | 929 |
1.0X | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 15 | 17 |
1.0X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 591 | 946 |
1.0X | 0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 320 | 626 |
1.0X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 15 | 17 |
1.0X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 335 | 643 |
1.0X | 60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 132 | 115 |
1.0X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 132 | 115 |
1.0X | 70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 28 | 56 |
1.0X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 28 | 56 |
1.0X | 80% or greater | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 96 | 132 |
1.0X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
1.0X | 80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 96 | $ 132 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 55,472 | $ 52,851 |
Total Past Due | 10 | 34 |
Total Loans | 55,482 | 52,885 |
Non-Accrual Status | 76 | 54 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 28 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1 |
Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6 | 5 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 51,424 | 49,006 |
Total Past Due | 0 | 21 |
Total Loans | 51,424 | 49,027 |
Non-Accrual Status | 47 | 49 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 21 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial mortgage loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Agricultural property loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,165 | 2,956 |
Total Past Due | 2 | 2 |
Total Loans | 3,167 | 2,958 |
Non-Accrual Status | 25 | 2 |
Agricultural property loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Agricultural property loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Agricultural property loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | 2 |
Residential Property Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 202 | 241 |
Total Past Due | 8 | 11 |
Total Loans | 210 | 252 |
Non-Accrual Status | 4 | 3 |
Residential Property Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 7 |
Residential Property Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1 |
Residential Property Loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 3 |
Other collateralized loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 6 | 10 |
Total Past Due | 0 | 0 |
Total Loans | 6 | 10 |
Non-Accrual Status | 0 | 0 |
Other collateralized loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other collateralized loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other collateralized loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 675 | 638 |
Total Past Due | 0 | 0 |
Total Loans | 675 | 638 |
Non-Accrual Status | 0 | 0 |
Uncollateralized loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | Greater Than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Investments (Other Long Term In
Investments (Other Long Term Investments) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Other Long-Term Investments [Line Items] | |||
Other long-term investments | [1] | $ 11,986 | $ 11,283 |
Private equity | |||
Other Long-Term Investments [Line Items] | |||
Other long-term investments | 4,214 | 4,059 | |
Hedge funds | |||
Other Long-Term Investments [Line Items] | |||
Other long-term investments | 3,007 | 2,660 | |
Real estate-related | |||
Other Long-Term Investments [Line Items] | |||
Other long-term investments | 1,233 | 1,291 | |
Total joint ventures and limited partnerships | |||
Other Long-Term Investments [Line Items] | |||
Other long-term investments | 8,454 | 8,010 | |
Wholly Owned Properties [Member] | |||
Other Long-Term Investments [Line Items] | |||
Other long-term investments | 2,381 | 2,195 | |
Other | |||
Other Long-Term Investments [Line Items] | |||
Other long-term investments | 1,151 | 1,078 | |
Mortgage | Senior notes | Real estate-related | |||
Other Long-Term Investments [Line Items] | |||
Long-term Debt | $ 780 | $ 659 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 4,276 | $ 4,248 | $ 12,795 | $ 12,066 |
Less: investment expenses | (200) | (175) | (569) | (534) |
Net investment income | 4,076 | 4,073 | 12,226 | 11,532 |
Trading account assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 229 | 252 | 698 | 747 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 571 | 553 | 1,691 | 1,669 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 153 | 160 | 460 | 470 |
Short-term investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 51 | 38 | 141 | 105 |
Other long-term investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 245 | 300 | 825 | 509 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 2,873 | 2,798 | 8,524 | 8,126 |
Available-for-sale | Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 99 | 95 | 293 | 285 |
Held-to-maturity | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 55 | $ 52 | $ 163 | $ 155 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 1,608 | $ 813 | $ 943 | $ 4,127 |
Fixed maturities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses), net | 228 | 365 | 631 | 725 |
Equity securities | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses), net | 316 | 124 | 736 | 223 |
Commercial mortgage and other loans | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses), net | 21 | 5 | 49 | 36 |
Investment real estate | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses), net | 0 | 14 | 12 | 15 |
Joint ventures and limited partnerships | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses), net | (1) | (14) | (22) | (78) |
Derivatives | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses), net | 1,044 | 323 | (463) | 3,218 |
Other | ||||
Gain (Loss) on Investments [Line Items] | ||||
Realized investment gains (losses), net | $ 0 | $ (4) | $ 0 | $ (12) |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Gain (Loss) on Investments [Line Items] | ||
Net unrealized gains (losses) on investments | $ 35,491 | $ 32,732 |
Fixed maturities | Available-for-sale | OTTI | ||
Gain (Loss) on Investments [Line Items] | ||
Net unrealized gains (losses) on investments | 274 | 312 |
Fixed maturities | Available-for-sale | All other | ||
Gain (Loss) on Investments [Line Items] | ||
Net unrealized gains (losses) on investments | 32,299 | 28,526 |
Equity securities | Available-for-sale | ||
Gain (Loss) on Investments [Line Items] | ||
Net unrealized gains (losses) on investments | 2,594 | 2,599 |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Investments [Line Items] | ||
Net unrealized gains (losses) on investments | 333 | 1,316 |
Other investments | ||
Gain (Loss) on Investments [Line Items] | ||
Net unrealized gains (losses) on investments | (9) | $ (21) |
Other investments | Held-to-maturity | ||
Gain (Loss) on Investments [Line Items] | ||
Net unrealized gains (losses) on investments | $ 0 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreements and Securities Lending Transactions) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | $ 8,145 | $ 7,606 |
Total cash collateral for loaned securities | 4,697 | 4,333 |
Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 684 | 956 |
Total cash collateral for loaned securities | 4,619 | 4,259 |
Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 7,461 | 6,650 |
Total cash collateral for loaned securities | 78 | 74 |
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 securities sold under agreements to repurchase | 8,001 | 7,367 |
Total cash collateral for loaned securities | 39 | 9 |
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 securities sold under agreements to repurchase | 683 | 950 |
Total cash collateral for loaned securities | 39 | 9 |
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 securities sold under agreements to repurchase | 7,318 | 6,417 |
Total cash collateral for loaned securities | 0 | 0 |
Obligations of U.S. states and their political subdivisions | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 87 | 18 |
Obligations of U.S. states and their political subdivisions | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 87 | 18 |
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 cash collateral for loaned securities | 0 | 0 |
Foreign government bonds | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 392 | 279 |
Foreign government bonds | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 392 | 279 |
Foreign government bonds | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 0 | 0 |
U.S. corporate public securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 1 | 0 |
Total cash collateral for loaned securities | 3,249 | 2,731 |
U.S. corporate public securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 1 | 0 |
Total cash collateral for loaned securities | 3,249 | 2,731 |
U.S. corporate public securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 0 |
Total cash collateral for loaned securities | 0 | 0 |
Foreign corporate public securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 6 |
Total cash collateral for loaned securities | 710 | 786 |
Foreign corporate public securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 6 |
Total cash collateral for loaned securities | 710 | 786 |
Foreign corporate public securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 0 |
Total cash collateral for loaned securities | 0 | 0 |
Residential mortgage-backed securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 143 | 233 |
Total cash collateral for loaned securities | 78 | 129 |
Residential mortgage-backed securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 0 |
Total cash collateral for loaned securities | 0 | 55 |
Residential mortgage-backed securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 143 | 233 |
Total cash collateral for loaned securities | 78 | 74 |
Equity securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 0 |
Total cash collateral for loaned securities | 142 | 381 |
Equity securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 0 |
Total cash collateral for loaned securities | 142 | 381 |
Equity securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 0 |
Total cash collateral for loaned securities | $ 0 | $ 0 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | [1] | $ 1,517 | $ 2,150 |
Consolidated VIEs for Which the Company is the Investment Manager | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | [2] | 4,198 | 4,924 |
Total liabilities of consolidated VIEs | $ 1,946 | $ 2,761 | |
VIEs Liabilities, maturities obligations (greater than) | 5 years | 5 years | |
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 | 1,637 | 2,140 | |
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 | 564 | 503 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other long-term investments | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,243 | 1,083 | |
Consolidated VIEs for Which the Company is the Investment Manager | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 149 | 618 | |
Consolidated VIEs for Which the Company is the Investment Manager | Accrued investment income | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 7 | 10 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 419 | 424 | |
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 | [3] | 1,517 | 2,150 |
Consolidated VIEs for Which the Company is the Investment Manager | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 429 | 611 | |
Consolidated VIEs for Which the Company is the Investment Manager | Available-for-sale | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 95 | 65 | |
Consolidated VIEs for Which the Company is the Investment Manager | Held-to-maturity | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 84 | 81 | |
Other Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,208 | 1,181 | |
Total liabilities of consolidated VIEs | 0 | 7 | |
Other Consolidated VIEs | Trading account assets supporting insurance liabilities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 9 | 9 | |
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 | 0 | |
Other Consolidated VIEs | Other long-term investments | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 107 | 114 | |
Other Consolidated VIEs | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 0 | 1 | |
Other Consolidated VIEs | Accrued investment income | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 3 | 4 | |
Other Consolidated VIEs | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 0 | 1 | |
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 | 0 | 7 | |
Other Consolidated VIEs | Available-for-sale | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 278 | 269 | |
Other Consolidated VIEs | Held-to-maturity | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 811 | 783 | |
ASU 2015-02, Wholly-owned by consolidated subsidiaries | Consolidated VIEs for Which the Company is the Investment Manager | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | $ 1,631 | $ 1,386 | |
[1] | See Note 5 for details of balances associated with variable interest entities. | ||
[2] | Total assets of consolidated VIEs reflects $1,631 million and $1,386 million as of September 30, 2017 and December 31, 2016, respectively, related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. | ||
[3] | Recourse is limited to the assets of the respective VIE and does not extend to the general credit of Prudential Financial. As of September 30, 2017 and December 31, 2016, the maturities of these obligations were greater than five years. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Other long-term investments | [1] | $ 11,986,000,000 | $ 11,283,000,000 |
Other Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Liabilities held within unconsolidated VIEs | 0 | ||
Other Consolidated VIEs | 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 | 866,000,000 | 515,000,000 | |
VIEs and Non-VIEs | Joint ventures and limited partnerships | |||
Variable Interest Entity [Line Items] | |||
Other long-term investments | $ 8,454,000,000 | $ 8,010,000,000 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Closed Block (Narrative) (Detai
Closed Block (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Policyholders’ dividend obligation | $ 5,228 | $ 4,658 |
Excess of actual cumulative earnings over expected cumulative earnings | ||
Policyholders’ dividend obligation | 1,710 | 1,647 |
Accumulated net unrealized investment gains | ||
Policyholders’ dividend obligation | $ 3,518 | $ 3,011 |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Closed Block liabilities | ||
Future policy benefits | $ 48,920 | $ 49,281 |
Policyholders’ dividends payable | 976 | 932 |
Policyholders’ dividend obligation | 5,228 | 4,658 |
Policyholders’ account balances | 5,154 | 5,204 |
Other Closed Block liabilities | 5,406 | 4,262 |
Total Closed Block liabilities | 65,684 | 64,337 |
Closed Block assets | ||
Fixed maturities, available-for-sale, at fair value | 41,184 | 38,696 |
Other trading account assets, at fair value | 334 | 283 |
Equity securities, available-for-sale, at fair value | 2,391 | 2,572 |
Commercial mortgage and other loans | 9,332 | 9,437 |
Policy loans | 4,570 | 4,660 |
Other long-term investments | 3,167 | 3,020 |
Short-term investments | 398 | 837 |
Total investments | 61,376 | 59,505 |
Cash and cash equivalents | 793 | 1,310 |
Accrued investment income | 506 | 491 |
Other Closed Block assets | 223 | 206 |
Total Closed Block assets | 62,898 | 61,512 |
Excess of reported Closed Block liabilities over Closed Block assets | 2,786 | 2,825 |
Portion of above representing accumulated other comprehensive income: | ||
Net unrealized investment gains (losses) | 3,494 | 2,990 |
Allocated to policyholder dividend obligation | (3,518) | (3,011) |
Future earnings to be recognized from Closed Block assets and Closed Block liabilities | $ 2,762 | $ 2,804 |
Closed Block (Information Regar
Closed Block (Information Regarding Policyholder Dividend Obligation) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Movement in Closed Block Dividend Obligation [Roll Forward] | |
Balance, beginning | $ 4,658 |
Impact from earnings allocable to policyholder dividend obligation | 63 |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation | 507 |
Balance, ending | $ 5,228 |
Closed Block (Closed Block Reve
Closed Block (Closed Block Revenues and Benefits and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Premiums | $ 577 | $ 599 | $ 1,852 | $ 1,913 |
Net investment income | 671 | 707 | 1,997 | 1,968 |
Realized investment gains (losses), net | 107 | 152 | 461 | 259 |
Other income (loss) | 25 | 27 | 85 | 29 |
Total Closed Block revenues | 1,380 | 1,485 | 4,395 | 4,169 |
Benefits and Expenses | ||||
Policyholders’ benefits | 727 | 758 | 2,371 | 2,423 |
Interest credited to policyholders’ account balances | 35 | 34 | 100 | 101 |
Dividends to policyholders | 478 | 550 | 1,544 | 1,372 |
General and administrative expenses | 95 | 100 | 289 | 303 |
Total Closed Block benefits and expenses | 1,335 | 1,442 | 4,304 | 4,199 |
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes | 45 | 43 | 91 | (30) |
Income tax expense (benefit) | 30 | 30 | 50 | (65) |
Closed Block revenues, net of Closed Block benefits and expenses and income taxes | $ 15 | $ 13 | $ 41 | $ 35 |
Equity (Common Stock Changes in
Equity (Common Stock Changes in Number of Shares Issued, Held in Treasury and Outstanding) (Details) | 9 Months Ended |
Sep. 30, 2017shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 660,111,339 |
Balance, ending | 660,111,339 |
Issued | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 660,100,000 |
Common Stock issued | 0 |
Common Stock acquired | 0 |
Stock-based compensation programs | 0 |
Balance, ending | 660,100,000 |
Held In Treasury | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 230,500,000 |
Common Stock issued | 0 |
Common Stock acquired | 8,700,000 |
Stock-based compensation programs | (3,800,000) |
Balance, ending | 235,400,000 |
Outstanding | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 429,600,000 |
Common Stock issued | 0 |
Common Stock acquired | (8,700,000) |
Stock-based compensation programs | 3,800,000 |
Balance, ending | 424,700,000 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) shares in Millions | Jan. 02, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||||
Cost of Treasury Stock Acquired | $ 927,000,000 | $ 1,339,000,000 | ||
Stock repurchased and canceled during period, value | (119,000,000) | |||
Retained Earnings | ||||
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) | |||
Class B Stock | ||||
Class of Stock [Line Items] | ||||
Cost of Treasury Stock Acquired | $ 0 | 119,000,000 | ||
Class B Stock | Held In Treasury | ||||
Class of Stock [Line Items] | ||||
Stock repurchased and canceled during period, value | $ 651,000,000 | $ 770,000,000 | ||
Under December 2016 Board Of Directors Authorization | ||||
Class of Stock [Line Items] | ||||
Amount of Stock Repurchases Authorized by the Board of Directors | $ 1,250,000,000 | |||
Under December 2016 Board Of Directors Authorization | Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of Treasury Stock Shares Acquired | 8.7 | |||
Cost of Treasury Stock Acquired | $ 937,000,000 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 14,621 | |||
Income tax benefit (expense) | $ (101) | $ 240 | (757) | $ (6,051) |
Ending balance | 16,598 | 16,598 | ||
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (973) | (1,087) | ||
Change in OCI before reclassifications | 735 | 1,921 | ||
Amounts reclassified from AOCI | 3 | 11 | ||
Income tax benefit (expense) | (95) | (375) | ||
Ending balance | (330) | 470 | (330) | 470 |
Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 18,171 | 15,773 | ||
Change in OCI before reclassifications | 3,164 | 17,851 | ||
Amounts reclassified from AOCI | (1,329) | (1,209) | ||
Income tax benefit (expense) | (606) | (5,635) | ||
Ending balance | 19,400 | 26,780 | 19,400 | 26,780 |
Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (2,577) | (2,401) | ||
Change in OCI before reclassifications | (7) | (44) | ||
Amounts reclassified from AOCI | 168 | 161 | ||
Income tax benefit (expense) | (56) | (41) | ||
Ending balance | (2,472) | (2,325) | (2,472) | (2,325) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 14,621 | 12,285 | ||
Change in OCI before reclassifications | 3,892 | 19,728 | ||
Amounts reclassified from AOCI | (1,158) | (1,037) | ||
Income tax benefit (expense) | (757) | (6,051) | ||
Ending balance | 16,598 | 24,925 | 16,598 | 24,925 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 1,316 | 1,165 | ||
Ending balance | $ 333 | $ 1,093 | $ 333 | $ 1,093 |
Equity (Reclassifications out o
Equity (Reclassifications out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized investment gains (losses), net | $ 1,608 | $ 813 | $ 943 | $ 4,127 |
Other income | 327 | (55) | 964 | 8 |
Total foreign currency translation adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 3 | 11 | ||
Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (1,329) | (1,209) | ||
Total amortization of defined benefit pension items | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 168 | 161 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (1,158) | (1,037) | ||
Amounts reclassified from AOCI | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized investment gains (losses), net | (1) | (3) | (4) | (11) |
Other income | 0 | 0 | 1 | 0 |
Amortization of defined benefit pension items: | ||||
Prior service cost | 1 | 2 | 3 | 6 |
Actuarial gain (loss) | (57) | (56) | (171) | (167) |
Amounts reclassified from AOCI | Total foreign currency translation adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (1) | (3) | (3) | (11) |
Amounts reclassified from AOCI | Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 509 | 571 | 1,329 | 1,209 |
Amounts reclassified from AOCI | Total amortization of defined benefit pension items | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (56) | (54) | (168) | (161) |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 452 | 514 | 1,158 | 1,037 |
Amounts reclassified from AOCI | Net unrealized investment gains (losses) on available-for-sale securities | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 544 | 489 | 1,367 | 948 |
Amounts reclassified from AOCI | Interest Rate | Cash flow hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 0 | (1) | (2) | (4) |
Amounts reclassified from AOCI | Currency/Interest rate | Cash flow hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | $ (35) | $ 83 | $ (36) | $ 265 |
Equity (OTTI Net Unrealized Inv
Equity (OTTI Net Unrealized Investment Gains and Losses in AOCI) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 14,621 |
Ending balance | 16,598 |
OTTI | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 312 |
Net investment gains (losses) on investments arising during the period | 57 |
Reclassification adjustment for (gains) losses included in net income | (75) |
Reclassification adjustment for OTTI losses excluded from net income | (20) |
Ending balance | 274 |
OTTI | DAC, DSI, VOBA and Reinsurance Recoverables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (5) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 3 |
Ending balance | (2) |
OTTI | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (6) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | 9 |
Ending balance | 3 |
OTTI | Policyholders’ Dividends | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (47) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (8) |
Ending balance | (55) |
OTTI | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (97) |
Net investment gains (losses) on investments arising during the period | (19) |
Reclassification adjustment for (gains) losses included in net income | 25 |
Reclassification adjustment for OTTI losses excluded from net income | 7 |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (1) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | (3) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 3 |
Ending balance | (85) |
OTTI | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 157 |
Net investment gains (losses) on investments arising during the period | 38 |
Reclassification adjustment for (gains) losses included in net income | (50) |
Reclassification adjustment for OTTI losses excluded from net income | (13) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 2 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | 6 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (5) |
Ending balance | $ 135 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 14,621 |
Ending balance | 16,598 |
All Other | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 32,420 |
Net investment gains (losses) on investments arising during the period | 4,031 |
Reclassification adjustment for (gains) losses included in net income | (1,254) |
Reclassification adjustment for OTTI losses excluded from net income | 20 |
Ending balance | 35,217 |
All Other | DAC, DSI, VOBA and Reinsurance Recoverables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (1,056) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (360) |
Ending balance | (1,416) |
All Other | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (1,136) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | (65) |
Ending balance | (1,201) |
All Other | Policyholders’ Dividends | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (2,980) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (503) |
Ending balance | (3,483) |
All Other | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (9,234) |
Net investment gains (losses) on investments arising during the period | (1,364) |
Reclassification adjustment for (gains) losses included in net income | 424 |
Reclassification adjustment for OTTI losses excluded from net income | (7) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 133 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | 20 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 176 |
Ending balance | (9,852) |
All Other | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 18,014 |
Net investment gains (losses) on investments arising during the period | 2,667 |
Reclassification adjustment for (gains) losses included in net income | (830) |
Reclassification adjustment for OTTI losses excluded from net income | 13 |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (227) |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | (45) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (327) |
Ending balance | $ 19,265 |
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic earnings per share | ||||
Net income (loss) | $ 2,241 | $ 1,832 | $ 4,109 | $ 4,126 |
Less: Income (loss) attributable to noncontrolling interests | 3 | 5 | 11 | 42 |
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards | 27 | 21 | 50 | 47 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Income | $ 2,211 | $ 1,806 | $ 4,048 | $ 4,037 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Weighted Average Shares | 426.2 | 435.9 | 428.1 | 440.7 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Per Share Amount | $ 5.19 | $ 4.14 | $ 9.46 | $ 9.16 |
Effect of dilutive securities and compensation programs | ||||
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic | $ 27 | $ 21 | $ 50 | $ 47 |
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted | $ 27 | $ 21 | $ 50 | $ 46 |
Stock options, Weighted Average Shares | 1.9 | 1.9 | 2.2 | 1.7 |
Deferred and long-term compensation programs, Weighted Average Shares | 1.1 | 0.9 | 1 | 0.9 |
Exchangeable Surplus Notes | $ 4 | $ 4 | $ 13 | $ 13 |
Exchangeable Surplus Notes, Weighted Average Shares | 5.8 | 5.6 | 5.8 | 5.6 |
Diluted earnings per share | ||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Income | $ 2,215 | $ 1,810 | $ 4,061 | $ 4,051 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Weighted Average Shares | 435 | 444.3 | 437.1 | 448.9 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Per Share Amount | $ 5.09 | $ 4.07 | $ 9.29 | $ 9.02 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2009USD ($)$ / shares | Sep. 30, 2017shares | Sep. 30, 2016shares | Sep. 30, 2017shares | Sep. 30, 2016shares | |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||
Undistributed earnings allocated to participating unvested share-based payment awards, weighted outstanding shares | shares | 5.2 | 5 | 5.3 | 5.1 | |
Equity Options | |||||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||||
Surplus Notes | $ 500,000,000 | ||||
Interest Rate | 5.36% | ||||
Debt Instrument Convertible Exchange Ratio per $1,000 (in shares) | 10.1235 | ||||
Surplus notes principle amount | $ 1,000 | ||||
Initial exchange price per share of Common Stock (in dollars per share) | $ / shares | $ 98.78 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities Excluded From the Computation of Diluted Earnings Per Share) (Details) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0.4 | 3.3 | 0.5 | 3.6 |
Antidilutive stock options based on application of the treasury stock method | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0.4 | 3.3 | 0.3 | 3.6 |
Antidilutive securities excluded from computation of earnings, Exercise Price Per Share | $ 110.20 | $ 85.22 | $ 110.27 | $ 83.95 |
Antidilutive stock options due to net loss available to holders of Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0 | 0 | 0 | 0 |
Antidilutive shares based on application of the treasury stock method | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0 | 0 | 0.2 | 0 |
Antidilutive shares due to net loss available to holders of Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0 | 0 | 0 | 0 |
Short-Term and Long-Term Debt72
Short-Term and Long-Term Debt (Short-Term Debt) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 2,358 | $ 1,133 |
Weighted average interest rate on outstanding short-term debt | 0.93% | 0.43% |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 666 | $ 590 |
Weighted average maturity of outstanding commercial paper, in days | 18 days | 21 days |
Long-term debt | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 1,692 | $ 543 |
Borrowings due overnight | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 218 | 292 |
Daily average outstanding | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 1,294 | 1,020 |
Prudential Financial | ||
Short-term Debt [Line Items] | ||
Short-term debt | 1,242 | 535 |
Prudential Financial | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 50 | 65 |
Prudential Funding, LLC | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 616 | 525 |
Real estate investment property | Long-term debt | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 73 |
Short-Term and Long-Term Debt73
Short-Term and Long-Term Debt (Narrative) (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Amounts drawn on credit facilities | $ 0 | $ 0 | |
Prudential credit facility consolidated net worth of at least | 20,958,000,000 | 20,958,000,000 | |
Prudential Financial and Prudential Funding | |||
Debt Instrument [Line Items] | |||
Credit facility | 4,000,000,000 | $ 4,000,000,000 | |
Credit facility, term period | 5 years | ||
Assets Under Set-Off Arrangements | Guideline AXXX | |||
Debt Instrument [Line Items] | |||
Debt instrument authorized for captive reinsurance | 1,000,000,000 | $ 1,000,000,000 | |
Surplus notes captive financing facility | 560,000,000 | 560,000,000 | |
Medium-term Notes | Senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument authorized for captive reinsurance | 20,000,000,000 | 20,000,000,000 | |
Long-term Debt | 9,500,000,000 | 9,500,000,000 | |
Maturity of debt | 108,000,000 | ||
Retail Medium Term Note | Senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument authorized for captive reinsurance | 5,000,000,000 | 5,000,000,000 | |
Long-term Debt | 456,000,000 | 456,000,000 | |
Increase (decrease) of debt | (5,000,000) | ||
Prepayments of Debt | 7,000,000 | ||
Amortization of Debt Issuance Costs | 2,000,000 | ||
Junior subordinated debt issued in September 2017 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 750,000,000 | $ 750,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |
Debt Instrument, Basis Spread on Variable Rate | 2.38% | ||
Debt Instrument, Payment Terms | P90D | ||
Debt Instrument, Redemption Price, Percentage | 102.00% | ||
Junior subordinated debt issued in September 2017 | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Variable Rate Measurement Period | 3 months | ||
Real estate investment property | Mortgage | Senior notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 780,000,000 | $ 780,000,000 | $ 659,000,000 |
Increase (decrease) of debt | 121,000,000 | ||
Increase due to new borrowings | 216,000,000 | ||
Foreign exchange fluctuations of debt | 19,000,000 | ||
Maturity of debt | 73,000,000 | ||
Prepayments of Debt | 41,000,000 | ||
Guideline AXXX | Captive Reinsurance Subsidiary | Floating Rate Debt Surplus Notes | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 500,000,000 | $ 500,000,000 |
Short-Term and Long-Term Debt74
Short-Term and Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 17,153 | $ 18,041 |
Surplus notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 840 | 840 |
Surplus notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 499 |
Surplus notes subject to set-off arrangements | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 5,187 | 4,403 |
Surplus notes subject to set-off arrangements | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,750 | 1,456 |
Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 8,883 | 9,236 |
Senior notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 29 | 1,063 |
Mortgage | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 223 | 177 |
Mortgage | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 557 | 409 |
Junior subordinated notes(5) | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,621 | 5,817 |
Subtotal | ||
Debt Instrument [Line Items] | ||
Long-term debt | 24,090 | 23,900 |
Less: assets under set-off arrangements | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,937 | 5,859 |
Debt denominated in foreign currency | Senior notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 55 | |
Debt denominated in foreign currency | Mortgage | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 104 | 82 |
Debt denominated in foreign currency | Mortgage | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 238 | 221 |
Prudential Financial | ||
Debt Instrument [Line Items] | ||
Long-term debt | 15,303 | $ 15,389 |
Prudential Financial | Junior subordinated notes(5) | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,564 | |
Subsidiaries [Member] | Junior subordinated notes(5) | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 57 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)year | |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ | $ 155 |
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year, Description | $ | $ 50 |
Other Postretirement Benefits | Minimum | |
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 |
Other Postretirement Benefits | Maximum | |
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 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost Included in General and Administrative Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 71 | $ 64 | $ 213 | $ 189 |
Interest cost | 119 | 125 | 357 | 374 |
Expected return on plan assets | (195) | (189) | (585) | (566) |
Amortization of prior service cost | (1) | (2) | (3) | (5) |
Amortization of actuarial (gain) loss, net | 48 | 46 | 144 | 136 |
Settlements | 7 | 1 | 7 | 3 |
Special termination benefits | 0 | 0 | 3 | 2 |
Net periodic (benefit) cost | 49 | 45 | 136 | 133 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 5 | 15 | 14 |
Interest cost | 20 | 22 | 61 | 68 |
Expected return on plan assets | (25) | (26) | (76) | (79) |
Amortization of prior service cost | 0 | 0 | 0 | (1) |
Amortization of actuarial (gain) loss, net | 9 | 10 | 27 | 31 |
Settlements | 0 | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 | 0 |
Net periodic (benefit) cost | $ 9 | $ 11 | $ 27 | $ 33 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2017USD ($)divisionsegment | Sep. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes and equity in earnings of operating joint ventures | $ 3,021 | $ 2,315 | $ 5,371 | $ 5,388 | |
Number of operating divisions | division | 4 | ||||
Number of reportable segments | segment | 7 | ||||
Individual Life | Out of period adjustment | |||||
Segment Reporting Information [Line Items] | |||||
Income (loss) before income taxes and equity in earnings of operating joint ventures | $ (148) | $ (148) |
Segment Information (Reconcilia
Segment Information (Reconciliation of Adjusted Operating Income and Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | $ 3,021 | $ 2,315 | $ 5,371 | $ 5,388 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 1,784 | 1,558 | 4,672 | 3,940 |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 1,084 | 1,018 | 3,283 | 2,600 |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 577 | 588 | 1,657 | 1,343 |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 248 | 239 | 953 | 694 |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 259 | 191 | 673 | 563 |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 211 | 173 | (58) | 118 |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 150 | 111 | (289) | (59) |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 61 | 62 | 231 | 177 |
Operating Segments | Total International Insurance division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 799 | 780 | 2,421 | 2,362 |
Operating Segments | Total International Insurance division | International Insurance | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 799 | 780 | 2,421 | 2,362 |
Operating Segments | Total Corporate and Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | (310) | (413) | (974) | (1,140) |
Operating Segments | Total Corporate and Other | Corporate and Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | (310) | (413) | (974) | (1,140) |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 1,395 | 223 | (48) | 2,443 |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | (231) | 426 | 571 | (1,096) |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 85 | 37 | 330 | 361 |
Segment Reconciling Items | Change in experience-rated contractholder liabilities due to asset value changes | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | (31) | 1 | (188) | (262) |
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] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | (24) | (17) | (66) | 0 |
Segment Reconciling Items | Closed Block division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | 33 | 31 | 49 | (74) |
Segment Reconciling Items | Other divested businesses | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures | $ 10 | $ 56 | $ 51 | $ 76 |
Segment Information (Reconcil79
Segment Information (Reconciliation of Select Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 16,313 | $ 16,961 | $ 43,424 | $ 45,729 | |
Total Assets | 821,131 | 821,131 | $ 783,962 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 13,361 | 15,050 | 38,396 | 38,154 | |
Total Assets | 757,683 | 757,683 | 721,911 | ||
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,390 | 7,105 | 14,998 | 14,929 | |
Total Assets | 407,362 | 407,362 | 393,625 | ||
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Individual Annuities | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,304 | 1,221 | 3,825 | 3,473 | |
Total Assets | 180,005 | 180,005 | 170,861 | ||
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Retirement | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,259 | 5,134 | 8,803 | 9,268 | |
Total Assets | 178,003 | 178,003 | 173,509 | ||
Operating Segments | Total U.S. Retirement Solutions and Investment Management division | Asset Management | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 827 | 750 | 2,370 | 2,188 | |
Total Assets | 49,354 | 49,354 | 49,255 | ||
Operating Segments | Total U.S. Individual Life and Group Insurance division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,774 | 2,743 | 7,618 | 7,948 | |
Total Assets | 124,295 | 124,295 | 118,166 | ||
Operating Segments | Total U.S. Individual Life and Group Insurance division | Individual Life | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,411 | 1,410 | 3,510 | 3,931 | |
Total Assets | 83,148 | 83,148 | 77,524 | ||
Operating Segments | Total U.S. Individual Life and Group Insurance division | Group Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,363 | 1,333 | 4,108 | 4,017 | |
Total Assets | 41,147 | 41,147 | 40,642 | ||
Operating Segments | Total International Insurance division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,376 | 5,384 | 16,268 | 15,771 | |
Total Assets | 211,697 | 211,697 | 197,119 | ||
Operating Segments | Total International Insurance division | International Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,376 | 5,384 | 16,268 | 15,771 | |
Total Assets | 211,697 | 211,697 | 197,119 | ||
Operating Segments | Total Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (179) | (182) | (488) | (494) | |
Total Assets | 14,329 | 14,329 | 13,001 | ||
Operating Segments | Total Corporate and Other | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (179) | (182) | (488) | (494) | |
Total Assets | 14,329 | 14,329 | 13,001 | ||
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,395 | 223 | (48) | 2,443 | |
Segment Reconciling Items | Charges related to realized investment gains (losses), net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (63) | (19) | (154) | 57 | |
Segment Reconciling Items | Investment gains (losses) on trading account assets supporting insurance liabilities, net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 85 | 37 | 330 | 361 | |
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (26) | (20) | (76) | (44) | |
Segment Reconciling Items | Closed Block division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,376 | 1,481 | 4,382 | 4,156 | |
Total Assets | 63,448 | 63,448 | $ 62,051 | ||
Segment Reconciling Items | Other divested businesses | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 185 | 209 | 594 | 602 | |
Intersegment Eliminations | Total U.S. Retirement Solutions and Investment Management division | Asset Management | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 181 | $ 173 | $ 534 | $ 504 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Total income tax expense (benefit) | $ 800 | $ 501 | $ 1,320 | $ 1,300 |
Effective Income Tax Rate, Percent | 24.60% | 24.10% | ||
Federal Statutory Income Tax Rate, Percent | 35.00% | |||
Tax benefit due to ASU 2016-09 implementation regarding employee shared-based payments | $ 39 |
Fair Value of Assets and Liab81
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | [1] | $ 340,100 | $ 321,419 |
Trading securities, equity | [1] | 22,126 | 21,840 |
Trading account assets, all other | [1] | 6,210 | 5,764 |
Equity securities, available-for-sale | 9,739 | 9,748 | |
Commercial mortgage and other loans | [1] | 55,373 | 52,779 |
Other long-term investments | [1] | 11,986 | 11,283 |
Short-term investments | 5,508 | 7,508 | |
Other assets | [1] | 16,770 | 14,780 |
Separate account assets | 301,110 | 287,636 | |
TOTAL ASSETS | 821,131 | 783,962 | |
Future policy benefits | 252,339 | 240,908 | |
Other Liabilities | [1] | 16,069 | 14,739 |
Total liabilities | 770,566 | 737,874 | |
Netting | 9,833 | 11,716 | |
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 8,568 | 8,252 | |
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 | 8,500 | 8,200 | |
Embedded Derivative, Fair Value Of Embedded Derivative Gross Asset | 900 | 1,200 | |
Embedded Derivative, Fair Value Of Embedded Derivative Gross Liability | 9,400 | 9,400 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 340,100 | 321,419 | |
Trading accounts assets | 28,031 | 27,454 | |
Equity securities, available-for-sale | 9,739 | 9,748 | |
Commercial mortgage and other loans | 340 | 519 | |
Other long-term investments | 217 | 149 | |
Short-term investments | 4,675 | 7,182 | |
Cash equivalents | 8,069 | 8,306 | |
Other assets | 0 | 0 | |
Separate account assets | 275,228 | 262,017 | |
TOTAL ASSETS | 666,399 | 636,794 | |
Future policy benefits | 8,537 | 8,238 | |
Other Liabilities | 762 | 369 | |
Notes issued by consolidated VIEs | 1,194 | 1,839 | |
Total liabilities | 10,493 | 10,446 | |
Assets Netting | (9,833) | (11,716) | |
Liabilities Netting | (5,505) | (5,945) | |
Netting | 4,328 | 5,771 | |
Fair Value, Measurements, Recurring | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Netting | (9,823) | (11,708) | |
Fair Value, Measurements, Recurring | Other long-term investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Netting | (10) | (8) | |
Fair Value, Measurements, Recurring | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities Netting | (5,505) | (5,945) | |
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: | 25,095 | 23,784 | |
Trading account assets, debt | 324 | 301 | |
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: | 10,272 | 9,692 | |
Trading account assets, debt | 199 | 194 | |
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: | 102,307 | 96,256 | |
Trading account assets, debt | 1,054 | 941 | |
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: | 87,383 | 81,611 | |
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: | 33,453 | 31,788 | |
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: | 29,370 | 28,237 | |
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: | 23,842 | 20,880 | |
Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets, debt | 17,130 | 17,180 | |
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: | 11,116 | 11,935 | |
Trading account assets, debt | 1,318 | 1,415 | |
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: | 13,213 | 12,704 | |
Trading account assets, debt | 2,195 | 2,062 | |
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: | 4,049 | 4,532 | |
Trading account assets, debt | 1,074 | 1,210 | |
Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities, equity | 2,661 | 2,391 | |
Fair Value, Measurements, Recurring | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading account assets, all other | 2,076 | 1,760 | |
Fair Value, Measurements, Recurring | All other | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Netting | (9,823) | (11,708) | |
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 accounts assets | 1,939 | 1,898 | |
Equity securities, available-for-sale | 5,699 | 6,033 | |
Commercial mortgage and other loans | 0 | 0 | |
Other long-term investments | 17 | 44 | |
Short-term investments | 3,198 | 5,623 | |
Cash equivalents | 1,760 | 3,885 | |
Other assets | 0 | 0 | |
Separate account assets | 42,962 | 38,915 | |
TOTAL ASSETS | 55,575 | 56,398 | |
Future policy benefits | 0 | 0 | |
Other Liabilities | 7 | 8 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 7 | 8 | |
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 securities, equity | 1,870 | 1,690 | |
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 | 69 | 208 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 331,043 | 314,562 | |
Trading accounts assets | 34,080 | 36,029 | |
Equity securities, available-for-sale | 3,759 | 3,450 | |
Commercial mortgage and other loans | 340 | 519 | |
Other long-term investments | 115 | 106 | |
Short-term investments | 1,472 | 1,558 | |
Cash equivalents | 6,216 | 4,421 | |
Other assets | 0 | 0 | |
Separate account assets | 229,983 | 221,253 | |
TOTAL ASSETS | 607,008 | 581,898 | |
Future policy benefits | 0 | 0 | |
Other Liabilities | 6,221 | 6,284 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 6,221 | 6,284 | |
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: | 25,054 | 23,784 | |
Trading account assets, debt | 324 | 301 | |
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: | 10,260 | 9,687 | |
Trading account assets, debt | 199 | 194 | |
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: | 102,154 | 96,132 | |
Trading account assets, debt | 825 | 714 | |
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: | 87,296 | 81,350 | |
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: | 32,323 | 30,434 | |
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: | 29,296 | 28,166 | |
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: | 23,382 | 20,393 | |
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 | 16,876 | 16,992 | |
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: | 4,296 | 7,591 | |
Trading account assets, debt | 550 | 1,086 | |
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: | 13,186 | 12,690 | |
Trading account assets, debt | 2,162 | 2,061 | |
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: | 3,796 | 4,335 | |
Trading account assets, debt | 1,072 | 1,208 | |
Fair Value, Measurements, Recurring | Level 2 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities, equity | 248 | 214 | |
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 | 11,824 | 13,259 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 9,057 | 6,857 | |
Trading accounts assets | 1,835 | 1,235 | |
Equity securities, available-for-sale | 281 | 265 | |
Commercial mortgage and other loans | 0 | 0 | |
Other long-term investments | 95 | 7 | |
Short-term investments | 5 | 1 | |
Cash equivalents | 93 | 0 | |
Other assets | 0 | 0 | |
Separate account assets | 2,283 | 1,849 | |
TOTAL ASSETS | 13,649 | 10,214 | |
Future policy benefits | 8,537 | 8,238 | |
Other Liabilities | 39 | 22 | |
Notes issued by consolidated VIEs | 1,194 | 1,839 | |
Total liabilities | 9,770 | 10,099 | |
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: | 41 | 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: | 12 | 5 | |
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: | 153 | 124 | |
Trading account assets, debt | 229 | 227 | |
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: | 87 | 261 | |
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: | 1,130 | 1,354 | |
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: | 74 | 71 | |
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: | 460 | 487 | |
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 | 254 | 188 | |
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: | 6,820 | 4,344 | |
Trading account assets, debt | 768 | 329 | |
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: | 27 | 14 | |
Trading account assets, debt | 33 | 1 | |
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: | 253 | 197 | |
Trading account assets, debt | 2 | 2 | |
Fair Value, Measurements, Recurring | Level 3 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities, equity | 543 | 487 | |
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 | 6 | 1 | |
Prudential Netting Agreement | 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: | 2,310 | 1,456 | |
Other long-term investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | 1,910 | 1,579 | |
Separate account assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | $ 25,882 | $ 25,619 | |
[1] | See Note 5 for details of balances associated with variable interest entities. |
Fair Value of Assets and Liab82
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Transfers Between Level 1 and Level 2) (Details) - Separate account assets - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Assets Level1 To Level2 Transfers | $ 35 | $ 15 | $ 98 | $ 81 |
Fair Value Assets Level2 to Level1 Transfers | $ 11 | $ 2 | $ 94 | $ 33 |
Fair Value of Assets and Liab83
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 252,339 | $ 240,908 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 8,537 | 8,238 |
Level 3 | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 35 years | |
Level 3 | Minimum | Future Policy Benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortality rate | 0.00% | |
Level 3 | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 90 years | |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 8,537 | $ 8,238 |
Level 3 | Internal | Minimum | Discounted cash flow | Future Policy Benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | 0.00% |
Spread over LIBOR | 0.13% | 0.25% |
Utilization rate | 52.00% | 52.00% |
Withdrawal rate (greater than maximum range) | 78.00% | 78.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 13.00% | 16.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 0.58% | 0.70% |
Level 3 | Internal | Minimum | Discounted cash flow | Separate Accounts Commercial Mortgage Loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs Credit Risk | 1.07% | 1.19% |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 7.3 | 4 |
Level 3 | Internal | Minimum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 13.07% | 15.19% |
Level 3 | Internal | Maximum | Discounted cash flow | Future Policy Benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 12.00% | 13.00% |
Spread over LIBOR | 1.27% | 1.50% |
Utilization rate | 97.00% | 96.00% |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% |
Mortality rate | 14.00% | 14.00% |
Equity volatility curve | 24.00% | 25.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 20.00% | 20.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Separate Accounts Commercial Mortgage Loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs Credit Risk | 2.78% | 2.90% |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 7.3 | 4 |
Level 3 | Internal | Maximum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 13.21% | 98.68% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 5.94% | 7.12% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Separate Accounts Commercial Mortgage Loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs Credit Risk | 1.19% | 1.37% |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 7.3 | 4 |
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 13.14% | 91.72% |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future Policy Benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 8,537 | $ 8,238 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 1,577 | 1,848 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Separate Accounts Commercial Mortgage Loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Commercial Mortgage Loans | $ 802 | $ 971 |
Fair Value of Assets and Liab84
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 273 | $ 301 | $ 265 | $ 266 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 4 | (17) | 13 | (27) |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 11 | 8 | 25 | 61 |
Sales | (7) | (8) | (30) | (22) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | (13) |
Foreign currency translation | 0 | 13 | 6 | 31 |
Other | 0 | 0 | (1) | 0 |
Transfers into Level 3 | 2 | 0 | 2 | 7 |
Transfers out of Level 3 | 0 | 0 | (1) | (7) |
Fair Value, end of period | 281 | 298 | 281 | 298 |
Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (2) | 1 | 2 | 2 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (2) | 0 | (3) | 0 |
Equity securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 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 | (1,853) | (2,094) | (1,839) | (8,597) |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | (1,228) | 0 | (1,228) |
Settlements | 0 | 0 | 0 | 0 |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 647 | 622 | 647 | 7,131 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (1,194) | (2,722) | (1,194) | (2,722) |
Notes Issued by Consolidated VIEs | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 12 | (17) | (2) | (14) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 12 | (9) | (2) | (14) |
Notes Issued by Consolidated VIEs | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (5) | 0 | (14) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 27 | 0 | (14) |
Notes Issued by Consolidated VIEs | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 32 | 0 | ||
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | ||
Net investment income | 0 | 0 | ||
Purchases | 9 | 31 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Foreign currency translation | 0 | 0 | ||
Other | 0 | 10 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | 41 | 41 | ||
Fixed maturities | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 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 | 5 | 5 | 5 | 6 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 7 | 0 | 7 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | (1) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 12 | 5 | 12 | 5 |
Fixed maturities | U.S. states | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Fixed maturities | Foreign government bonds | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 143 | 124 | 124 | 123 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | (1) | 1 | 1 | 2 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Foreign currency translation | 8 | 5 | 9 | 5 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 3 | 0 | 21 | 0 |
Transfers out of Level 3 | 0 | 0 | (2) | 0 |
Fair Value, end of period | 153 | 130 | 153 | 130 |
Fixed maturities | Foreign government bonds | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Fixed maturities | Corporate securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 1,662 | 2,254 | 2,173 | 1,222 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | (11) | 22 | (14) | 42 |
Net investment income | 4 | 3 | 15 | 7 |
Purchases | 36 | 75 | 158 | 266 |
Sales | (1) | (7) | (145) | (13) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (51) | (156) | (498) | (278) |
Foreign currency translation | 0 | 9 | 9 | 34 |
Other | (44) | 0 | (54) | 0 |
Transfers into Level 3 | 223 | 195 | 349 | 1,316 |
Transfers out of Level 3 | (51) | (106) | (253) | (219) |
Fair Value, end of period | 1,751 | 2,281 | 1,751 | 2,281 |
Fixed maturities | Corporate securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (16) | (8) | 11 | (96) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (10) | (9) | (50) | (91) |
Fixed maturities | Structured securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 6,744 | 3,267 | 4,555 | 4,269 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 7 | 7 | (6) | (32) |
Net investment income | 1 | 3 | 6 | 11 |
Purchases | 1,131 | 1,062 | 3,572 | 1,414 |
Sales | (207) | (361) | (602) | (404) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (605) | (103) | (2,019) | (323) |
Foreign currency translation | 7 | 24 | 32 | 85 |
Other | 0 | 4 | (1) | 118 |
Transfers into Level 3 | 698 | 357 | 3,343 | 1,561 |
Transfers out of Level 3 | (684) | (756) | (1,847) | (3,197) |
Fair Value, end of period | 7,100 | 3,509 | 7,100 | 3,509 |
Fixed maturities | Structured securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 8 | 5 | 67 | 7 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading account assets | Foreign government bonds | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 228 | 38 | 227 | 34 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 1 | 0 | 4 | 0 |
Purchases | 0 | 2 | 0 | 8 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (2) | (2) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 229 | 40 | 229 | 40 |
Trading account assets | Foreign government bonds | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading account assets | Foreign government bonds | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 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 | 200 | 216 | 188 | 203 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 1 | 0 | 2 | 1 |
Purchases | 11 | 0 | 84 | 8 |
Sales | (1) | 0 | (7) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (14) | (3) | (99) | (38) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | (3) | 0 | 0 | (15) |
Transfers into Level 3 | 74 | 9 | 96 | 136 |
Transfers out of Level 3 | (2) | 0 | (6) | (61) |
Fair Value, end of period | 254 | 225 | 254 | 225 |
Trading account assets | Corporate securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading account assets | Corporate securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (12) | 3 | (4) | (9) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (12) | 3 | (5) | 12 |
Trading account assets | Structured securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 666 | 310 | 332 | 603 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 1 | 1 |
Purchases | 167 | 30 | 402 | 56 |
Sales | 0 | (26) | (13) | (26) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (123) | (5) | (256) | (10) |
Foreign currency translation | 1 | 0 | 4 | (1) |
Other | 0 | 2 | 1 | 21 |
Transfers into Level 3 | 136 | 29 | 561 | 208 |
Transfers out of Level 3 | (44) | (96) | (230) | (606) |
Fair Value, end of period | 803 | 243 | 803 | 243 |
Trading account assets | Structured securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading account assets | Structured securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (1) | 1 | (3) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1 | 1 | 3 | (3) |
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 | 543 | 585 | 487 | 589 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 1 | 5 | 19 | 10 |
Sales | (3) | (36) | (14) | (48) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (37) | (31) | (44) | (108) |
Foreign currency translation | 1 | 18 | 9 | 60 |
Other | 33 | 0 | 30 | 15 |
Transfers into Level 3 | 0 | 0 | 31 | 28 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 543 | 552 | 543 | 552 |
Trading account assets | Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading account assets | Equity securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 5 | 11 | 25 | 6 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 5 | 12 | 39 | 7 |
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 | 1 | 2 | 1 | 5 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 18 | 0 | 18 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (13) | 0 | (13) | 0 |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 1 | 0 | (3) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 6 | 2 | 6 | 2 |
Trading account assets | All other activity | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading account assets | All other activity | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (1) | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 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 | 76 | 14 | 7 | 49 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | (1) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (1) | 0 | (1) | 0 |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 11 | 0 | 81 | (33) |
Transfers into Level 3 | 10 | 0 | 10 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 95 | 14 | 95 | 14 |
Other long-term investments | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1) | 0 | (2) | (1) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (2) | 0 | (3) | (1) |
Other long-term investments | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 2 | 0 | 1 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 12 | 1 | 12 | 1 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (8) | 0 | (8) | 0 |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | (1) | 0 | (1) | 0 |
Transfers into Level 3 | 0 | 0 | 1 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 5 | 1 | 5 | 1 |
Short-term investments | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 0 | ||
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | ||
Net investment income | 0 | 2 | ||
Purchases | 93 | 93 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | (6) | ||
Foreign currency translation | 0 | 0 | ||
Other | 0 | 0 | ||
Transfers into Level 3 | 0 | 4 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | 93 | 93 | ||
Cash equivalents | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Cash equivalents | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Other assets | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 39 | 62 | 0 | 7 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 8 | 7 | 25 | 16 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 64 | 0 | 64 |
Other assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (47) | (5) | (25) | 41 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (47) | 18 | (25) | 41 |
Other assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 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 | 2,107 | 2,128 | 1,849 | 1,995 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 3 | 1 | 16 |
Purchases | 465 | 180 | 1,003 | 438 |
Sales | (12) | (61) | (84) | (134) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (174) | (303) | (555) | (391) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 48 | 63 | 302 | 336 |
Transfers out of Level 3 | (162) | (70) | (290) | (324) |
Fair Value, end of period | 2,283 | 1,973 | 2,283 | 1,973 |
Separate accounts assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 1 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Separate accounts assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Separate accounts assets | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 11 | 33 | 57 | 36 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 13 | 22 | 53 | 19 |
Future policy benefits | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (10,031) | (13,328) | (8,238) | (8,434) |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (283) | (271) | (837) | (786) |
Settlements | 0 | 0 | 0 | 0 |
Foreign currency translation | 0 | (3) | (2) | (4) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (8,537) | (13,024) | (8,537) | (13,024) |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,777 | 578 | 540 | (3,800) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,698 | 492 | 345 | (3,959) |
Future policy benefits | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 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 | (34) | (2) | (22) | (2) |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (18) | (5) | (18) | (5) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | (6) | 0 | (6) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (39) | (19) | (39) | (19) |
Other liabilities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (6) | (6) | (18) | (6) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (6) | (5) | (18) | (6) |
Other liabilities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other liabilities | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 19 | 0 | 19 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | $ 7 | $ 0 | $ 19 | $ 0 |
Fair Value of Assets and Liab85
Fair Value of Assets and Liabilities (Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | $ 1,847 | $ 1,367 |
Netting | (9,833) | (11,716) |
Total derivative liabilities | 722 | 345 |
Netting | (5,505) | (5,945) |
Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 8,874 | 9,330 |
Total derivative liabilities | 4,003 | 4,518 |
Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 177 | 375 |
Total derivative liabilities | 392 | 893 |
Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 7 | 1 |
Total derivative liabilities | 6 | 25 |
Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 1,949 | 3,174 |
Total derivative liabilities | 937 | 365 |
Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 673 | 203 |
Total derivative liabilities | 889 | 489 |
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 | 22 | 55 |
Total derivative liabilities | 5 | 7 |
Level 1 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 18 | 55 |
Total derivative liabilities | 5 | 1 |
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 | 4 | 0 |
Total derivative liabilities | 0 | 6 |
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 | 11,645 | 13,022 |
Total derivative liabilities | 6,220 | 6,281 |
Level 2 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 8,853 | 9,269 |
Total derivative liabilities | 3,996 | 4,515 |
Level 2 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 177 | 375 |
Total derivative liabilities | 392 | 893 |
Level 2 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 7 | 1 |
Total derivative liabilities | 6 | 25 |
Level 2 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 1,949 | 3,174 |
Total derivative liabilities | 937 | 365 |
Level 2 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 659 | 203 |
Total derivative liabilities | 889 | 483 |
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 | 13 | 6 |
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 | 3 | 6 |
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 | 10 | 0 |
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, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Netting | $ (4,328) | $ (5,771) |
Fair Value of Assets and Liab86
Fair Value of Assets and Liabilities (Changes in Level 3 Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Assets- Equity | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, beginning of period | $ 0 | $ 2 | $ 0 | $ 32 |
Total gains (losses) (realized/unrealized): | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 10 | (2) | 10 | (32) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 10 | 0 | 10 | 0 |
Derivative Assets- Interest Rate | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, beginning of period | 3 | 4 | 4 | 5 |
Total gains (losses) (realized/unrealized): | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 4 | 1 | 4 |
Realized investment gains (losses), net | Derivative Assets- Equity | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 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 | 0 | 0 | 0 | 0 |
Realized investment gains (losses), net | Derivative Assets- Interest Rate | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (2) | 0 | (3) | (1) |
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 | (3) | 0 | (3) | 0 |
Other income | Derivative Assets- Equity | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 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 | 0 | 0 | 0 | 0 |
Other income | Derivative Assets- Interest Rate | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 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 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab87
Fair Value of Assets and Liabilities (Nonrecurring Fair Value Measurements) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
General and administrative expenses | $ (2,921) | $ (2,983) | $ (8,813) | $ (8,821) | |
Commercial mortgage loans | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized investment gains (losses) net | 0 | (2) | 0 | (6) | |
Carrying value after measurement as of period end | 41 | 41 | $ 47 | ||
Mortgage servicing rights | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized investment gains (losses) net | 2 | 0 | 8 | (2) | |
Carrying value after measurement as of period end | 86 | 86 | 84 | ||
Cost method investments | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized investment gains (losses) net | (7) | (18) | (24) | (70) | |
Carrying value after measurement as of period end | 157 | 157 | 284 | ||
Long-lived assets held for sale | Fair Value, Measurements, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
General and administrative expenses | (5) | $ 0 | (19) | $ 0 | |
Carrying value after measurement as of period end | $ 14 | $ 14 | $ 0 |
Fair Value of Assets and Liab88
Fair Value of Assets and Liabilities (Changes in Fair Values Recorded in Earnings for FVO Assets-Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | [1] | $ 55,373 | $ 55,373 | $ 52,779 | ||
Other long-term investments | [1] | 11,986 | 11,986 | 11,283 | ||
Commercial mortgage and other loans | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Changes in instrument-specific credit risk | 0 | $ 0 | 0 | $ 0 | ||
Changes in fair value | 0 | 0 | 0 | 0 | ||
Interest income | 5 | 3 | 10 | 7 | ||
Fair value option loans in non-accrual status | 0 | 0 | ||||
Fair value option loans in more than 90 days past due and still accruing | 0 | 0 | ||||
Other long-term investments | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Changes in fair value | 33 | 41 | 110 | 17 | ||
Notes Issued by Consolidated VIEs | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Changes in fair value | (12) | 22 | 2 | 28 | ||
Interest Expense | 16 | $ 24 | 60 | $ 92 | ||
Fair value option | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | 340 | 340 | 519 | |||
Other long-term investments | 1,886 | 1,886 | 1,556 | |||
Notes issued by consolidated VIEs | 1,194 | 1,194 | 1,839 | |||
Fair value option, aggregate contractual principal | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | 332 | 332 | 508 | |||
Notes issued by consolidated VIEs | $ 1,233 | $ 1,233 | $ 1,886 | |||
[1] | See Note 5 for details of balances associated with variable interest entities. |
Fair Value of Assets and Liab89
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |||
Assets: | |||||||
Fixed maturities, held-to-maturity | [1] | $ 2,084 | $ 2,144 | ||||
Commercial mortgage and other loans | [1] | 55,373 | 52,779 | ||||
Policy loans | 11,765 | 11,755 | |||||
Cash and cash equivalents | 14,541 | [1] | 14,127 | [1] | $ 24,728 | $ 17,612 | |
Accrued investment income | [1] | 3,278 | 3,204 | ||||
Liabilities: | |||||||
Securities sold under agreements to repurchase | 8,145 | 7,606 | |||||
Cash collateral for loaned securities | 4,697 | 4,333 | |||||
Short-term debt | 2,358 | 1,133 | |||||
Long-term debt | 17,153 | 18,041 | |||||
Fair Value | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 2,475 | 2,524 | |||||
Trading account assets | 305 | 150 | |||||
Commercial mortgage and other loans | 56,850 | 53,764 | |||||
Policy loans | 11,766 | 11,755 | |||||
Short-term investments | 833 | 326 | |||||
Cash and cash equivalents | 6,472 | 5,821 | |||||
Accrued investment income | 3,278 | 3,204 | |||||
Other assets | 3,186 | 2,688 | |||||
Total assets | 85,165 | 80,232 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 101,503 | 100,045 | |||||
Securities sold under agreements to repurchase | 8,145 | 7,606 | |||||
Cash collateral for loaned securities | 4,697 | 4,333 | |||||
Short-term debt | 2,368 | 1,150 | |||||
Long-term debt | 19,487 | 19,929 | |||||
Other liabilities | 6,767 | 7,236 | |||||
Separate account liabilities—investment contracts | 100,396 | 98,588 | |||||
Total liabilities | 243,363 | 238,887 | |||||
Carrying Amount | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 2,084 | 2,144 | |||||
Trading account assets | 305 | 150 | |||||
Commercial mortgage and other loans | 55,033 | 52,260 | |||||
Policy loans | 11,765 | 11,755 | |||||
Short-term investments | 833 | 326 | |||||
Cash and cash equivalents | 6,472 | 5,821 | |||||
Accrued investment income | 3,278 | 3,204 | |||||
Other assets | 3,186 | 2,688 | |||||
Total assets | 82,956 | 78,348 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 100,804 | 99,719 | |||||
Securities sold under agreements to repurchase | 8,145 | 7,606 | |||||
Cash collateral for loaned securities | 4,697 | 4,333 | |||||
Short-term debt | 2,358 | 1,133 | |||||
Long-term debt | 17,153 | 18,041 | |||||
Other liabilities | 6,767 | 7,236 | |||||
Separate account liabilities—investment contracts | 100,396 | 98,588 | |||||
Total liabilities | 240,320 | 236,656 | |||||
Level 1 | Fair Value | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 0 | 0 | |||||
Trading account assets | 205 | 0 | |||||
Commercial mortgage and other loans | 0 | 0 | |||||
Policy loans | 1 | 1 | |||||
Short-term investments | 810 | 0 | |||||
Cash and cash equivalents | 6,001 | 4,945 | |||||
Accrued investment income | 0 | 0 | |||||
Other assets | 46 | 54 | |||||
Total assets | 7,063 | 5,000 | |||||
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 | 2,079 | 1,267 | |||||
Other liabilities | 0 | 0 | |||||
Separate account liabilities—investment contracts | 0 | 0 | |||||
Total liabilities | 2,079 | 1,267 | |||||
Level 2 | Fair Value | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 1,504 | 1,526 | |||||
Trading account assets | 50 | 150 | |||||
Commercial mortgage and other loans | 134 | 139 | |||||
Policy loans | 0 | 0 | |||||
Short-term investments | 23 | 326 | |||||
Cash and cash equivalents | 273 | 876 | |||||
Accrued investment income | 3,278 | 3,204 | |||||
Other assets | 2,460 | 1,976 | |||||
Total assets | 7,722 | 8,197 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 33,541 | 41,653 | |||||
Securities sold under agreements to repurchase | 8,145 | 7,606 | |||||
Cash collateral for loaned securities | 4,697 | 4,333 | |||||
Short-term debt | 1,867 | 1,077 | |||||
Long-term debt | 15,396 | 15,705 | |||||
Other liabilities | 6,054 | 6,540 | |||||
Separate account liabilities—investment contracts | 70,094 | 71,010 | |||||
Total liabilities | 139,794 | 147,924 | |||||
Level 3 | Fair Value | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 971 | 998 | |||||
Trading account assets | 50 | 0 | |||||
Commercial mortgage and other loans | 56,716 | 53,625 | |||||
Policy loans | 11,765 | 11,754 | |||||
Short-term investments | 0 | 0 | |||||
Cash and cash equivalents | 198 | 0 | |||||
Accrued investment income | 0 | 0 | |||||
Other assets | 680 | 658 | |||||
Total assets | 70,380 | 67,035 | |||||
Liabilities: | |||||||
Policyholders’ account balances—investment contracts | 67,962 | 58,392 | |||||
Securities sold under agreements to repurchase | 0 | 0 | |||||
Cash collateral for loaned securities | 0 | 0 | |||||
Short-term debt | 501 | 73 | |||||
Long-term debt | 2,012 | 2,957 | |||||
Other liabilities | 713 | 696 | |||||
Separate account liabilities—investment contracts | 30,302 | 27,578 | |||||
Total liabilities | 101,490 | 89,696 | |||||
Prudential Netting Agreement | Fair Value | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 4,758 | 4,403 | |||||
Liabilities: | |||||||
Long-term debt | 7,068 | 5,859 | |||||
Prudential Netting Agreement | Carrying Amount | |||||||
Assets: | |||||||
Fixed maturities, held-to-maturity | 4,627 | 4,403 | |||||
Liabilities: | |||||||
Long-term debt | 6,937 | 5,859 | |||||
Other long-term investments | Fair Value | Measurement at NAV per share | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Cost Method Investments, Fair Value Disclosure | 1,770 | 1,514 | |||||
Other long-term investments | Carrying Amount | Measurement at NAV per share | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Cost Method Investments, Fair Value Disclosure | $ 1,543 | $ 1,478 | |||||
[1] | See Note 5 for details of balances associated with variable interest entities. |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 14, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Total derivative assets | $ 1,847 | $ 1,367 | |
Total derivative liabilities | 722 | 345 | |
Anticipated pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) to earnings | $ 151 | ||
Maximum Length of Time Hedged in Cash Flow Hedge | 40 years | ||
Net investment hedges income (loss) before taxes | $ 528 | 536 | |
Credit Derivatives [Line Items] | |||
Derivative, Notional Amount | 417,939 | 366,091 | |
Single Name Credit Default Swaps | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 110 | 112 | |
Credit Derivatives Written Max Length Of Maturities (less than) | 3 years | ||
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ 2 | 1 | |
Single Name Credit Default Swaps | NAIC 1 | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 36 | ||
Single Name Credit Default Swaps | NAIC 2 | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 62 | ||
Single Name Credit Default Swaps | NAIC 3 | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 5 | ||
Single Name Credit Default Swaps | NAIC 4 | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 1 | ||
Single Name Credit Default Swaps | NAIC 5 | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 2 | ||
Single Name Credit Default Swaps | NAIC 6 | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 4 | ||
Credit Default Swaps Referencing Indices | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 480 | 50 | |
Credit Derivatives Written Max Length Of Maturities (less than) | 30 years | ||
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ (5) | (1) | |
Credit Default Swaps Referencing Indices | NAIC 1 | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 50 | ||
Credit Default Swaps Referencing Indices | NAIC 4 | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 430 | ||
Credit Default Swap, Buying Protection | |||
Credit Derivatives [Line Items] | |||
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | (6) | (8) | |
Derivative, Notional Amount | $ 193 | 256 | |
Prudential Insurance | Surplus notes | Credit Derivatives | |||
Credit Derivatives [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 500 | ||
Credit derivative termination fee | $ 12 | ||
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ 17 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional | $ 417,939 | $ 366,091 |
Assets | 11,682 | 13,088 |
Liabilities | (6,227) | (6,290) |
Net Embedded Derivative Liability | (8,568) | (8,252) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 18,573 | 16,021 |
Assets | 1,050 | 1,976 |
Liabilities | (632) | (166) |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 1,012 | 1,117 |
Assets | 15 | 17 |
Liabilities | (95) | (111) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 177 | 167 |
Assets | 2 | 3 |
Liabilities | (3) | (1) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 17,384 | 14,737 |
Assets | 1,033 | 1,956 |
Liabilities | (534) | (54) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 399,366 | 350,070 |
Assets | 10,632 | 11,112 |
Liabilities | (5,595) | (6,124) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 164,478 | 162,131 |
Assets | 8,652 | 8,969 |
Liabilities | (3,753) | (4,274) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Futures | ||
Derivative [Line Items] | ||
Notional | 26,464 | 31,183 |
Assets | 19 | 55 |
Liabilities | (4) | (1) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Options | ||
Derivative [Line Items] | ||
Notional | 16,101 | 13,290 |
Assets | 177 | 289 |
Liabilities | (148) | (132) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forwards | ||
Derivative [Line Items] | ||
Notional | 1,783 | 321 |
Assets | 11 | 0 |
Liabilities | (1) | (1) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 24,239 | 21,042 |
Assets | 176 | 372 |
Liabilities | (389) | (892) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Options | ||
Derivative [Line Items] | ||
Notional | 69 | 93 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 13,838 | 12,336 |
Assets | 915 | 1,218 |
Liabilities | (404) | (311) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Notional | 783 | 918 |
Assets | 7 | 1 |
Liabilities | (6) | (25) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Futures | ||
Derivative [Line Items] | ||
Notional | 74 | 1,371 |
Assets | 0 | 0 |
Liabilities | 0 | (5) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 59,962 | 12,020 |
Assets | 657 | 102 |
Liabilities | (566) | (93) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swaps | ||
Derivative [Line Items] | ||
Notional | 14,644 | 18,167 |
Assets | 16 | 101 |
Liabilities | (323) | (390) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Commodity Futures | ||
Derivative [Line Items] | ||
Notional | 0 | 1 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Synthetic GICs | ||
Derivative [Line Items] | ||
Notional | 76,931 | 77,197 |
Assets | 2 | 5 |
Liabilities | $ (1) | $ 0 |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 11,566 | $ 12,987 |
Gross Amounts Offset in the Statements of Financial Position | (9,833) | (11,716) |
Net Amounts Presented in the Statements of Financial Position | 1,733 | 1,271 |
Financial Instruments/Collateral | (1,422) | (399) |
Net Amount | 311 | 872 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 576 | 1,016 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 576 | 1,016 |
Financial Instruments/Collateral | (576) | (1,016) |
Net Amount | 0 | 0 |
Total assets | ||
Gross Amounts of Recognized Financial Instruments | 12,142 | 14,003 |
Gross Amounts Offset in the Statements of Financial Position | (9,833) | (11,716) |
Net Amounts Presented in the Statements of Financial Position | 2,309 | 2,287 |
Financial Instruments/Collateral | (1,998) | (1,415) |
Net Amount | 311 | 872 |
Derivative Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 6,219 | 6,281 |
Gross Amounts Offset in the Statements of Financial Position | (5,505) | (5,945) |
Net Amounts Presented in the Statements of Financial Position | 714 | 336 |
Financial Instruments/Collateral | (629) | (299) |
Net Amount | 85 | 37 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 8,145 | 7,606 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 8,145 | 7,606 |
Financial Instruments/Collateral | (8,145) | (7,606) |
Net Amount | 0 | 0 |
Total liabilities | ||
Gross Amounts of Recognized Financial Instruments | 14,364 | 13,887 |
Gross Amounts Offset in the Statements of Financial Position | (5,505) | (5,945) |
Net Amounts Presented in the Statements of Financial Position | 8,859 | 7,942 |
Financial Instruments/Collateral | (8,774) | (7,905) |
Net Amount | $ 85 | $ 37 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 1,046 | $ 335 | $ (455) | $ 3,222 |
Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,045 | 319 | (462) | 3,204 |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 46 | 23 | 127 | 64 |
Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (109) | 31 | (276) | 146 |
Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | (1) | (4) | (3) |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | (1) | (2) | (4) |
Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (448) | (210) | (992) | (88) |
AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Fair value hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | 16 | 7 | 18 |
Fair value hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (4) | (8) | (15) | (25) |
Fair value hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Fair value hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Fair value hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Fair value hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Cash flow hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Cash flow hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 50 | 31 | 142 | 89 |
Cash flow hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (108) | 32 | (272) | 149 |
Cash flow hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | (1) | (2) | (4) |
Cash flow hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Cash flow hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (446) | (205) | (983) | (72) |
Net investment hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2) | (5) | (9) | (16) |
Interest Rate | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 137 | 340 | 1,101 | 8,213 |
Interest Rate | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Fair value hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 3 | 9 | 11 | (10) |
Interest Rate | Fair value hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (4) | (8) | (15) | (24) |
Interest Rate | Fair value hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Fair value hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Fair value hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Fair value hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | (1) | (2) | (4) |
Interest Rate | Cash flow hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | 3 | 5 | (7) |
Currency | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (113) | 536 | (121) | 1,104 |
Currency | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | (1) | 0 | (4) |
Currency | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2) | 7 | (4) | 28 |
Currency | Fair value hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | (1) |
Currency | Fair value hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2) | (5) | (9) | (16) |
Currency/Interest Rate | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (93) | (199) | (233) | (729) |
Currency/Interest Rate | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2) | 0 | (4) | 1 |
Currency/Interest Rate | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Cash flow hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Cash flow hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 50 | 31 | 142 | 89 |
Currency/Interest Rate | Cash flow hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (108) | 32 | (272) | 149 |
Currency/Interest Rate | Cash flow hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Cash flow hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Cash flow hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (447) | (208) | (988) | (65) |
Currency/Interest Rate | Net investment hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (8) | 13 | 8 | 6 |
Credit | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (604) | (954) | (1,761) | (1,705) |
Equity | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Commodity | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | (1) |
Commodity | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Commodity | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Commodity | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Commodity | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Commodity | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,726 | 583 | 544 | (3,684) |
Embedded Derivatives | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - Cash flow hedges in AOCI $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ 1,316 |
Net deferred gains/(losses) on cash flow hedges from January 1 to September 30, 2017 | (1,021) |
Amount reclassified into current period earnings | 38 |
Balance, ending | $ 333 |
Commitments and Guarantees, C95
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Commitments and Guarantees) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||
Fair value of collateral supporting these assets | $ 1,422 | $ 399 |
Commitments | Serviced Mortgage Loans | ||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||
Total outstanding mortgage loan commitments | 3,087 | 1,984 |
Purchase Obligation Portion Prearranged To Sell | 704 | 454 |
Expected to be funded from the GA and other operations outside the SA | ||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 6,812 | 7,232 |
Expected to be funded from separate accounts | ||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 118 | 470 |
Indemnification | Securities Lending Transactions | ||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||
Indemnification provided to certain securities lending clients | 5,170 | 5,352 |
Fair value of related collateral associated with above indemnifications | 5,286 | 5,465 |
Accrued liability associated with guarantee | 0 | 0 |
Indemnification | Serviced Mortgage Loans | ||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||
Maximum exposure under indemnification agreements for mortgage loans serviced by the Company | 1,521 | 1,371 |
First-loss exposure portion of above | 459 | 416 |
Accrued liability associated with guarantee | 13 | 13 |
Guarantees of Asset Values | ||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||
Guaranteed value of third parties’ assets | 76,931 | 77,197 |
Fair value of collateral supporting these assets | 77,989 | 77,760 |
Asset associated with guarantee, carried at fair value | 2 | 5 |
Other Guarantees | ||
Commitments and Guarantees and Contingent Liabilities [Line Items] | ||
Other guarantees where amount can be determined | 31 | 58 |
Accrued liability associated with guarantee | $ 4 | $ 3 |
Commitments and Guarantees, C96
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Narrative Excluding Litigation) (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Indemnification | Securities Lending Transactions | |||
Commitments and Guarantees and Contingent Liabilities [Line Items] | |||
Fair value of loaned securities, minimum collateral (greater than) | 102.00% | ||
Indemnification | Mortgage | |||
Commitments and Guarantees and Contingent Liabilities [Line Items] | |||
Mortgages subject to loss-sharing arrangements | $ 12,174 | $ 11,445 | |
Weighted-average debt service coverage ratio of mortgages subject to loss-sharing arrangements | 1.89 | 1.82 | |
Weighted-average loan-to-value ratio of mortgages subject to loss-sharing arrangements | 59.00% | 59.00% | |
Serviced mortgage loans, losses | $ 0 | $ 0 | |
Indemnification | Minimum | Mortgage | |||
Commitments and Guarantees and Contingent Liabilities [Line Items] | |||
Share losses incurred of loan balances, Percent | 2.00% | ||
Indemnification | Maximum | Mortgage | |||
Commitments and Guarantees and Contingent Liabilities [Line Items] | |||
Share losses incurred of loan balances, Percent | 20.00% | ||
Yield Maintenance Guarantee | |||
Commitments and Guarantees and Contingent Liabilities [Line Items] | |||
Guarantees related to certain investments the Company sold | $ 31 | $ 51 |
Commitments and Guarantees, C97
Commitments and Guarantees, Contingent Liabilities and Litigation and Regulatory Matters (Litigation Narrative) (Details) $ in Millions | 1 Months Ended | |
Feb. 28, 2017plaintiff | Sep. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | ||
Estimate of possible losses in excess of accruals (less than) for litigation and regulatory matters | $ | $ 250 | |
Residential mortgage-backed securities | PICA et al. v. Deutsche Bank, et al. | ||
Loss Contingencies [Line Items] | ||
Trust at issue in claims, number | 62 | |
Trust at issue pending claims, number | 41 | |
Trust at issue dismissed claims, number | 21 |