Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 417 |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
ASSETS | |||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2018-$317,548; 2017-$312,385) | [1] | $ 341,151 | $ 346,780 |
Fixed maturities, held-to-maturity, at amortized cost (fair value: 2018-$2,388; 2017-$2,430) | [1] | 2,020 | 2,049 |
Fixed maturities, trading, at fair value (amortized cost: 2018-$2,980; 2017-$3,509) | [1],[2] | 2,916 | 3,507 |
Assets supporting experience-rated contractholder liabilities, at fair value | [1],[2] | 21,497 | 22,097 |
Equity securities, at fair value (cost: 2018-$5,374; 2017-$5,154) | [1],[2] | 7,191 | 7,329 |
Commercial mortgage and other loans (includes $330 and $593 measured at fair value under the fair value option at June 30, 2018 and December 31, 2017, respectively) | [1] | 58,622 | 56,045 |
Policy loans | 11,935 | 11,891 | |
Other invested assets (includes $5,138 and $3,159 measured at fair value at June 30, 2018 and December 31, 2017, respectively) | [1],[2] | 13,459 | 13,373 |
Short-term Investments | [2] | 5,728 | 6,800 |
Total investments | 464,519 | 469,871 | |
Cash and cash equivalents | [1] | 14,918 | 14,490 |
Accrued investment income | [1] | 3,235 | 3,325 |
Deferred policy acquisition costs | 19,643 | 18,992 | |
Value of business acquired | 2,027 | 1,591 | |
Other assets | [1] | 16,860 | 17,250 |
Separate account assets | 298,658 | 306,617 | |
TOTAL ASSETS | 819,860 | 832,136 | |
LIABILITIES | |||
Future policy benefits | 260,435 | 257,317 | |
Policyholders’ account balances | 149,359 | 148,189 | |
Policyholders’ dividends | 4,858 | 6,411 | |
Securities sold under agreements to repurchase | 9,540 | 8,400 | |
Cash collateral for loaned securities | 4,307 | 4,354 | |
Income taxes | 7,888 | 9,648 | |
Short-term debt | 2,056 | 1,380 | |
Long-term debt | 16,732 | 17,172 | |
Other liabilities | [1] | 16,498 | 16,619 |
Notes issued by consolidated variable interest entities (includes $609 and $1,196 measured at fair value under the fair value option at June 30, 2018 and December 31, 2017, respectively) | [1] | 937 | 1,518 |
Separate account liabilities | 298,658 | 306,617 | |
Total liabilities | 771,268 | 777,625 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
EQUITY | |||
Preferred Stock ($.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 June 30, 2018 and December 31, 2017) | 6 | 6 | |
Additional paid-in capital | 24,763 | 24,769 | |
Common Stock held in treasury, at cost (242,400,008 and 230,537,166 shares at June 30, 2018 and December 31, 2017, respectively) | (16,905) | (16,284) | |
Accumulated other comprehensive income (loss) | 11,655 | 17,074 | |
Retained earnings | 28,713 | 28,671 | |
Total Prudential Financial, Inc. equity | 48,232 | 54,236 | |
Noncontrolling interests | 360 | 275 | |
Total equity | 48,592 | 54,511 | |
TOTAL LIABILITIES AND EQUITY | $ 819,860 | $ 832,136 | |
[1] | See Note 4 for details of balances associated with variable interest entities. | ||
[2] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. |
Unaudited Interim Consolidated3
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Fixed Maturities, AFS, amortized cost | $ 317,548 | $ 312,385 | |
Fixed Maturities, HTM, at fair value | 2,388 | 2,430 | |
Fixed Maturities, Trading, amortized cost | 2,980 | 3,509 | |
Equity securities, at cost | 5,374 | 5,154 | |
Commercial mortgage and other loans | [1] | 58,622 | 56,045 |
Other invested assets, at fair value | 5,138 | 3,159 | |
Notes issued by consolidated VIEs | [1] | $ 937 | $ 1,518 |
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 | 242,400,008 | 230,537,166 | |
Fair value option | |||
Commercial mortgage and other loans | $ 330 | $ 593 | |
Notes issued by consolidated VIEs | $ 609 | $ 1,196 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Unaudited Interim Consolidated4
Unaudited Interim Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUES | ||||
Premiums | $ 7,438 | $ 8,326 | $ 14,749 | $ 14,807 |
Policy charges and fee income | 1,480 | 725 | 2,984 | 2,258 |
Net investment income | 4,096 | 4,089 | 8,094 | 8,150 |
Asset management and service fees | 1,010 | 973 | 2,036 | 1,924 |
Other income (loss) | (54) | 420 | (561) | 637 |
Realized investment gains (losses), net: | ||||
Other-than-temporary impairments on fixed maturity securities | (58) | (53) | (97) | (110) |
Other-than-temporary impairments on fixed maturity securities transferred to Other comprehensive income | 0 | 7 | 0 | 10 |
Other realized investment gains (losses), net | 743 | (1,046) | 1,207 | (565) |
Total realized investment gains (losses), net | 685 | (1,092) | 1,110 | (665) |
Total revenues | 14,655 | 13,441 | 28,412 | 27,111 |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 9,512 | 8,328 | 17,187 | 15,353 |
Interest credited to policyholders’ account balances | 894 | 947 | 1,444 | 1,887 |
Dividends to policyholders | 540 | 491 | 868 | 1,106 |
Amortization of deferred policy acquisition costs | 613 | 84 | 1,201 | 523 |
General and administrative expenses | 2,846 | 2,983 | 5,769 | 5,892 |
Total benefits and expenses | 14,405 | 12,833 | 26,469 | 24,761 |
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 250 | 608 | 1,943 | 2,350 |
Total income tax expense (benefit) | 68 | 125 | 420 | 520 |
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 182 | 483 | 1,523 | 1,830 |
Equity in earnings of operating joint ventures, net of taxes | 18 | 13 | 41 | 38 |
NET INCOME (LOSS) | 200 | 496 | 1,564 | 1,868 |
Less: Income (loss) attributable to noncontrolling interests | 3 | 5 | 4 | 8 |
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | $ 197 | $ 491 | $ 1,560 | $ 1,860 |
Basic earnings per share-Common Stock: | ||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ 0.46 | $ 1.13 | $ 3.66 | $ 4.28 |
Diluted earnings per share-Common Stock: | ||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | 0.46 | 1.12 | 3.62 | 4.21 |
Dividends declared per share of Common Stock (in dollars per share) | $ 0.90 | $ 0.75 | $ 1.8 | $ 1.5 |
Unaudited Interim Consolidated5
Unaudited Interim Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 200 | $ 496 | $ 1,564 | $ 1,868 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments for the period | (703) | 45 | (41) | 597 |
Net unrealized investment gains (losses) | (3,326) | 2,491 | (7,992) | 1,682 |
Defined benefit pension and postretirement unrecognized periodic benefit (cost) | 75 | 55 | 129 | 99 |
Total | (3,954) | 2,591 | (7,904) | 2,378 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | (838) | 872 | (1,682) | 656 |
Other comprehensive income (loss), net of taxes | (3,116) | 1,719 | (6,222) | 1,722 |
Comprehensive income (loss) | (2,916) | 2,215 | (4,658) | 3,590 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (7) | 5 | 7 | (11) |
Comprehensive income (loss) attributable to Prudential Financial, Inc. | $ (2,909) | $ 2,210 | $ (4,665) | $ 3,601 |
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, 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 | ||||
Elimination of Gibraltar Life reporting lag | 167 | 167 | 167 | |||||
Common Stock acquired | (625) | (625) | (625) | |||||
Contributions from noncontrolling interests | 8 | 8 | ||||||
Distributions to noncontrolling interests | (27) | (27) | ||||||
Consolidations (deconsolidations) of noncontrolling interests | 1 | 1 | ||||||
Stock-based compensation programs | 260 | 60 | 200 | 260 | ||||
Dividends declared on Common Stock | (655) | (655) | (655) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 1,868 | 1,860 | 1,860 | 8 | ||||
Other comprehensive income (loss), net of tax | 1,722 | 1,741 | 1,741 | (19) | ||||
Comprehensive income (loss) | 3,590 | 3,601 | (11) | |||||
Balance at Jun. 30, 2017 | 48,807 | 6 | 24,671 | 23,313 | (15,741) | 16,362 | 48,611 | 196 |
Balance at Dec. 31, 2017 | 54,511 | 6 | 24,769 | 28,671 | (16,284) | 17,074 | 54,236 | 275 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of adoption of accounting changes | ASU 2016-01 | 57 | 904 | (847) | 57 | ||||
Cumulative effect of adoption of accounting changes | ASU 2018-02 | 0 | (1,653) | 1,653 | 0 | ||||
Common Stock acquired | (750) | (750) | (750) | |||||
Contributions from noncontrolling interests | 99 | 99 | ||||||
Distributions to noncontrolling interests | (21) | (21) | ||||||
Consolidations (deconsolidations) of noncontrolling interests | 0 | 0 | ||||||
Stock-based compensation programs | 123 | (6) | 129 | 123 | ||||
Dividends declared on Common Stock | (769) | (769) | (769) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 1,564 | 1,560 | 1,560 | 4 | ||||
Other comprehensive income (loss), net of tax | (6,222) | (6,225) | (6,225) | 3 | ||||
Comprehensive income (loss) | (4,658) | (4,665) | 7 | |||||
Balance at Jun. 30, 2018 | $ 48,592 | $ 6 | $ 24,763 | $ 28,713 | $ (16,905) | $ 11,655 | $ 48,232 | $ 360 |
Unaudited Interim Consolidated7
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $ 1,564 | $ 1,868 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Realized investment (gains) losses, net | (1,110) | 665 | ||
Policy charges and fee income | (1,058) | (1,263) | ||
Interest credited to policyholders’ account balances | 1,444 | 1,887 | ||
Depreciation and amortization | 48 | 107 | ||
(Gains) losses on assets supporting experience-rated contractholder liabilities, net | [1] | 596 | (245) | |
Change in: | ||||
Deferred policy acquisition costs | (203) | (957) | ||
Future policy benefits and other insurance liabilities | 5,762 | 3,949 | ||
Income taxes | (96) | 559 | ||
Derivatives, net | (1,041) | (1,490) | ||
Other, net | [1] | 769 | (369) | |
Cash flows from (used in) operating activities | [1] | 6,675 | 4,711 | |
Proceeds from the sale/maturity/prepayment of: | ||||
Fixed maturities, available-for-sale | 30,599 | 28,990 | ||
Fixed maturities, held-to-maturity | 56 | 89 | ||
Fixed maturities, trading | [1] | 410 | 897 | |
Assets supporting experience-rated contractholder liabilities | [1] | 9,650 | 17,636 | |
Equity securities | [1] | 1,965 | 1,984 | |
Commercial mortgage and other loans | 2,572 | 2,630 | ||
Policy loans | 1,176 | 1,309 | ||
Other invested assets | [1] | 908 | 591 | |
Short-term investments | [1] | 18,190 | 17,329 | |
Payments for the purchase/origination of: | ||||
Fixed maturities, available-for-sale | (34,922) | (34,153) | ||
Fixed maturities, trading | [1] | (483) | (1,080) | |
Assets supporting experience-rated contractholder liabilities | [1] | (9,560) | (17,580) | |
Equity securities | [1] | (1,826) | (1,646) | |
Commercial mortgage and other loans | (5,525) | (4,494) | ||
Policy loans | (1,002) | (915) | ||
Other invested assets | (1,154) | (769) | ||
Short-term investments | [1] | (17,138) | (13,348) | |
Acquisition of business, net of cash acquired | 0 | (64) | ||
Derivatives, net | (271) | 244 | ||
Other, net | [1] | (134) | (297) | |
Cash flows from (used in) investing activities | [1] | (6,489) | (2,647) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Policyholders’ account deposits | 14,826 | 13,648 | ||
Policyholders’ account withdrawals | (14,076) | (12,706) | ||
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 1,094 | 914 | ||
Cash dividends paid on Common Stock | (769) | (653) | ||
Net change in financing arrangements (maturities 90 days or less) | (103) | 46 | ||
Common Stock acquired | (739) | (612) | ||
Common Stock reissued for exercise of stock options | 74 | 161 | ||
Proceeds from the issuance of debt (maturities longer than 90 days) | 1,194 | 321 | ||
Repayments of debt (maturities longer than 90 days) | (848) | (216) | ||
Other, net | (244) | (451) | ||
Cash flows from (used in) financing activities | 409 | 452 | ||
Effect of foreign exchange rate changes on cash balances | (71) | 110 | ||
NET INCREASE IN CASH, CASH EQUIVALENTS RESTRICTED CASH AND RESTRICTED CASH EQUIVALENT | [1] | 524 | 2,626 | |
CASH, CASH EQUIVALENTS RESTRICTED CASH AND RESTRICTED CASH EQUIVALENT, BEGINNING OF YEAR | [1] | 14,536 | 14,181 | |
CASH, CASH EQUIVALENTS RESTRICTED CASH AND RESTRICTED CASH EQUIVALENT, END OF PERIOD | [1] | 15,060 | 16,807 | |
NON-CASH TRANSACTIONS DURING THE PERIOD | ||||
Treasury Stock shares issued for stock-based compensation programs | 132 | 98 | ||
RECONCILIATION TO STATEMENT OF FINANCIAL POSITION | ||||
Cash and cash equivalents | 14,918 | [2] | 16,605 | |
Restricted cash and restricted cash equivalents (included in “Other assets”) | 142 | 202 | ||
Total cash, cash equivalents restricted cash and restricted cash equivalents | 15,060 | 16,807 | ||
Significant Pension Risk Transfer transactions | ||||
NON-CASH TRANSACTIONS DURING THE PERIOD | ||||
Assets Received And Related Liabilities Recorded Pension Risk Transfer, assets received | 0 | 1,294 | ||
Liabilities assumed | 977 | 1,685 | ||
Net cash received | 977 | 391 | ||
Acquisition | ||||
NON-CASH TRANSACTIONS DURING THE PERIOD | ||||
Assets received, excluding cash and cash equivalents | 0 | 196 | ||
Liabilities assumed | 0 | 132 | ||
Net cash paid on acquisition | $ 0 | $ 64 | ||
[1] | Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
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 five divisions, which together encompass seven segments, and its Corporate and Other operations. The U.S. Individual Solutions division consists of the Individual Annuities and Individual Life segments. The U.S. Workplace Solutions division consists of the Retirement and Group Insurance segments. The PGIM division is comprised of the PGIM segment, the global investment management businesses of the Company (retitled from the “Investment Management division” and the “Investment Management segment” effective in the second quarter of 2018). The International Insurance division is comprised of the International Insurance segment, and the Closed Block division is comprised 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 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 4 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, 2017 . Elimination of Gibraltar Life Reporting Lag Prior to January 1, 2018, the Company’s Gibraltar Life Insurance Company, Ltd. (“Gibraltar Life”) consolidated operations used a November 30 fiscal year end for purposes of inclusion in the Company’s Consolidated Financial Statements. The result of this reporting date difference was a one-month reporting lag for Gibraltar Life. As a result, the Company’s unaudited interim consolidated balance sheet as of June 30 previously included the assets and liabilities of Gibraltar Life as of May 31, and the Company’s unaudited interim consolidated income statement previously included Gibraltar Life’s results of operations for the three and six months ended May 31. Effective January 1, 2018, the Company converted its Gibraltar Life operations to a December 31 fiscal year end. This action eliminated the one-month reporting lag so that the reporting dates and periods of financial balances and results of Gibraltar Life are consistent with those of the Company. The establishment of a new fiscal year end for Gibraltar Life is considered a change in accounting principle to a preferable method and requires retrospective application. The Company believes this change in accounting principle is preferable given that it aligns the reporting dates of Prudential Financial and its subsidiaries which allows for more timely and consistent basis of reporting the financial position and results of Gibraltar Life. In order to effect this elimination, the Company restated prior periods’ equity which increased “Retained Earnings” by approximately $167 million as of December 31, 2015, 2016 and 2017. The impact to the Statements of Operations, Statements of Cash Flows, Statements of Comprehensive Income and other balance sheet captions, as a result of the elimination of the reporting lag, was not material for any of the periods presented. 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. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND 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. Adoption of ASU 2016-01 Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available for sale” are to be reported in net income within “Other income” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available for sale” were reported in “Accumulated other comprehensive income.” The impacts of this ASU on the Company’s Consolidated Financial Statements can be categorized as follows: (1) Changes to the presentation within the Consolidated Statements of Financial Position; (2) Cumulative-effect Adjustment Upon Adoption; and (3) Changes to Accounting Policies. Each of these components is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. (1) Changes to the presentation within the Consolidated Statements of Financial Position Because of the fundamental accounting changes as described in section “—(3) Changes to Accounting Policies” below, the Company determined that changes to the presentation of certain balances in the investment section of the Company’s Consolidated Statements of Financial Position were also necessary to maintain clarity and logical presentation. The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification. December 31, 2017 As previously reported Reclassifications As currently reported Consolidated Statement of Financial Position Line Items (1) (2) (3) (4) (in millions) Fixed maturities, available-for-sale, at fair value $ 346,780 $ 346,780 Fixed maturities, held-to-maturity, at amortized cost 2,049 2,049 * Fixed maturities, trading, at fair value 0 3,507 3,507 Trading account assets supporting insurance liabilities, at fair value 22,097 (22,097 ) 0 * Assets supporting experience-rated contractholder liabilities, at fair value 0 22,097 22,097 Other trading account assets, at fair value 5,752 (5,752 ) 0 Equity securities, available-for-sale, at fair value 6,174 (6,174 ) 0 * Equity securities, at fair value 0 6,174 1,155 7,329 Commercial mortgage and other loans 56,045 56,045 Policy loans 11,891 11,891 Other long-term investments 12,308 (12,308 ) 0 * Other invested assets 0 1,065 12,308 13,373 Short-term investments 6,775 25 6,800 Total investments $ 469,871 $ 0 $ 0 $ 0 $ 0 $ 469,871 * — New line item effective January 1, 2018. Strikethrough — Eliminated line item effective January 1, 2018. ________ (1) Retitled “Trading account assets supporting insurance liabilities, at fair value” to “Assets supporting experience-rated contractholder liabilities, at fair value” as equity securities are included in this line item, and they can no longer be described as trading. (2) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale. (3) Eliminated the line item “Other trading account assets, at fair value” and reclassified each component to another line item. (4) Retitled “Other long-term investments” to “Other invested assets.” (2) Cumulative-effect Adjustment Upon Adoption The provisions of ASU 2016-01 require that the Company apply the amendments through a cumulative-effect adjustment to the Consolidated Statements of Financial Position as of the beginning of the fiscal year of adoption. The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018. Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement of Financial Position upon Adoption on January 1, 2018 (in millions) Increase / (Decrease) Other invested assets $ 229 Total assets $ 229 Policyholders’ dividends $ 157 Income taxes 15 Total liabilities 172 Accumulated other comprehensive income (loss) (847 ) Retained earnings 904 Total equity 57 Total liabilities and equity $ 229 (3) Changes to Accounting Policies This section summarizes the changes in our accounting policies resulting from the adoption of ASU 2016-01 as well as an update to the components of the financial statement line items impacted by the Company’s Consolidated Statements of Financial Position presentation changes described above. ASSETS Fixed maturities, trading is a new financial statement line item comprised of fixed maturities that are carried at fair value. Prior to the adoption of the standard, these fixed maturities were reported in “Other trading account assets, at fair value.” These fixed maturities are primarily related to assets associated with consolidated variable interest entities for which the Company is the investment manager and the realized and unrealized gains and losses activity are generally offset by changes in the corresponding liabilities. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments is reported in “Net investment income.” Assets supporting experience-rated contractholder liabilities, at fair value is the new title of the financial statement line item formerly titled “Trading account assets supporting insurance liabilities, at fair value.” This financial statement line item includes invested assets that consist of fixed maturities, equity securities, and short-term investments and cash equivalents, that support certain products included in the Retirement and International Insurance segments which are experience-rated, meaning that the investment results associated with these products are expected to ultimately accrue to contractholders. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments is reported in “Net investment income.” Equity securities, at fair value is the new title of the financial statement line item formerly titled “Equity securities, available for sale, at fair value.” As a result of the adoption of the standard, equity securities previously reported in “Other trading account asset, at fair value” were reclassified to “Equity securities, at fair value.” The retitled financial statement line item is comprised of common stock, mutual fund shares and non-redeemable preferred stock, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and dividend income is reported in “Net investment income” on the ex-dividend date. Prior to the adoption of the standard, for the equity securities reported in the financial statement line item formerly titled “Equity securities, available for sale, at fair value,” the associated net realized gains and losses were included in “Realized investment gains (losses), net” and the associated net unrealized gains and losses were included in “Accumulated other comprehensive income (loss)” (“AOCI”). In addition, with the adoption of the standard, the identification of OTTI for these investments is no longer needed as all of these investments are now measured at fair value with changes in fair value reported in earnings. Other invested assets is the new title of the financial statement line item formerly titled “Other long-term investments.” Investments previously reported in “Other long-term investments” were reclassified to “Other invested assets.” The retitled financial statement line item consists of the Company’s non-coupon investments in Limited Partnerships and Limited Liability Companies (“LPs/LLCs”) (other than operating joint ventures), wholly-owned investment real estate, derivative assets and other investments. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income.” Prior to the adoption of the standard, the Company applied the cost method of accounting for certain LPs/LLCs interests when its partnership interest was considered minor. The standard effectively eliminated the cost method of accounting for these equity investments. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three-month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income.” The Company consolidates LPs/LLCs in certain other instances where it is deemed to exercise control, or is considered the primary beneficiary of a variable interest entity. See Note 4 for additional information about VIEs. REVENUES AND BENEFITS AND EXPENSES Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading,” “Assets supporting experience-rated contractholder liabilities, at fair value,” “Equity securities, at fair value,” and “Other invested assets” that are measured at fair value. Adoption of ASU 2014-09 This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), using a modified retrospective method. The core principle of this ASU is that an entity should recognize revenue 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 or services. This core principle is assessed via application of a five-step revenue recognition model that is detailed within the ASU. There was no material impact to the financial statements at the date of adoption of this ASU. The prospective impact primarily affects revenue recognition policies pertaining to the Company’s investment management business. This revenue is classified within the “Asset management and service fees” line item in the Consolidated Statements of Operations. Adoption of this standard has no impact on revenues related to financial instruments and insurance contracts (some of which may be reflected within “Asset management and service fees”) given that these types of revenues were specifically scoped out of this ASU. “Asset management and service fees” principally includes asset-based asset management fees (which continue to be recognized in the period in which the services are performed) and performance-based incentive fees. Under the previously existing guidance, the Company recorded performance-based incentive fee revenue when the contractual terms of the asset management fee arrangement were satisfied such that the performance fee was no longer subject to clawback or contingency. Under the new guidance, the Company will record this revenue when the contractual terms of the asset management fee arrangement have been satisfied and it is probable that a significant reversal in the amount of the fee will not occur. Under this principle the Company will continue to record a deferred performance-based incentive fee liability to the extent it receives cash related to the performance-based incentive fee prior to meeting the revenue recognition criteria delineated above. For the three months and six months ended June 30, 2018, respectively, asset management and service fee revenues included $855 million and $1,717 million of asset-based management fees, $6 million and $11 million of performance-based incentive fees, and $149 million and $308 million of other fees. For the three months and six months ended June 30, 2017, respectively, asset management and service fee revenues included $816 million and $1,612 million of asset-based management fees, $5 million and $12 million of performance-based incentive fees, and $152 million and $300 million of other fees. These fees predominantly relate to investment management activities but also include certain asset-based fees associated with insurance contracts. In accordance with the provisions of the ASU, the comparative information for the prior period was not restated and continues to be reported under the accounting standards in effect for that period. Other ASU adopted during the six months ended June 30, 2018 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force) This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows. January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period). 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 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). 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 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, this ASU was issued following the enactment of the Tax Act of 2017. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act of 2017. January 1, 2019 with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 is recognized. The Company early adopted the ASU effective January 1, 2018 and elected to apply the ASU in the period of adoption subsequent to recording the adoption impacts of ASU 2016-01 as described above. As a result, the Company reclassified stranded effects resulting from the Tax Act of 2017 by increasing accumulated other comprehensive income and decreasing retained earnings, each by $1,653 million. Stranded effects unrelated to the Tax Act of 2017 are generally released from accumulated other comprehensive income when an entire portfolio of the type of item related to the stranded effect is liquidated, sold or extinguished (i.e., portfolio approach). ASU issued but not yet adopted as of June 30, 2018 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 either the modified retrospective method with a cumulative effect adjustment as of the earliest period presented or the optional transition method with a cumulative effect adjustment recorded as of the beginning of the fiscal year of adoption. Early adoption is 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. Upon adoption, we expect to apply the optional transition method and record a right-of-use asset and liability on our balance sheet related to existing operating leases. Any new lease arrangements and/or significant modifications entered into subsequent to the adoption date will be accounted for in accordance with the new standard. 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 which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. 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 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test in current U.S. GAAP, which measures a goodwill impairment by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of the goodwill. Under the ASU, a goodwill impairment should be recorded for the amount by which the carrying amount of a reporting unit exceeds its fair value (capped by the total amount of goodwill allocated to the reporting unit). January 1, 2020 using the prospective method (with early adoption permitted). The Company does not expect the adoption of the ASU to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters 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) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. 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 2017-12 , 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) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. 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. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturity Securities The following tables set forth information relating to fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2018 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 $ 22,471 $ 2,987 $ 613 $ 24,845 $ 0 Obligations of U.S. states and their political subdivisions 9,548 771 40 10,279 0 Foreign government bonds 93,464 15,787 414 108,837 0 U.S. corporate public securities 79,744 4,674 2,058 82,360 (4 ) U.S. corporate private securities(1) 32,171 1,269 556 32,884 (11 ) Foreign corporate public securities 26,949 2,290 355 28,884 (5 ) Foreign corporate private securities 24,099 622 760 23,961 0 Asset-backed securities(2) 12,860 195 24 13,031 (172 ) Commercial mortgage-backed securities 13,093 58 305 12,846 0 Residential mortgage-backed securities(3) 3,149 118 43 3,224 (1 ) Total fixed maturities, available-for-sale(1) $ 317,548 $ 28,771 $ 5,168 $ 341,151 $ (193 ) June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 878 $ 271 $ 0 $ 1,149 Foreign corporate public securities 662 67 0 729 Foreign corporate private securities(5) 85 3 0 88 Commercial mortgage-backed securities 0 0 0 0 Residential mortgage-backed securities(3) 395 27 0 422 Total fixed maturities, held-to-maturity(5) $ 2,020 $ 368 $ 0 $ 2,388 __________ (1) Excludes notes with amortized cost of $3,666 million (fair value, $3,666 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $409 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 $4,753 million (fair value, $4,754 million ), which have been offset with the associated payables under a netting agreement. December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(4) (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 22,837 $ 3,647 $ 346 $ 26,138 $ 0 Obligations of U.S. states and their political subdivisions 9,366 1,111 6 10,471 0 Foreign government bonds 88,062 15,650 293 103,419 0 U.S. corporate public securities 81,967 8,671 414 90,224 (10 ) U.S. corporate private securities(1) 31,852 2,051 169 33,734 (13 ) Foreign corporate public securities 26,389 3,118 99 29,408 (5 ) Foreign corporate private securities 23,322 1,242 337 24,227 0 Asset-backed securities(2) 11,965 278 10 12,233 (237 ) Commercial mortgage-backed securities 13,134 238 91 13,281 0 Residential mortgage-backed securities(3) 3,491 165 11 3,645 (2 ) Total fixed maturities, available-for-sale(1) $ 312,385 $ 36,171 $ 1,776 $ 346,780 $ (267 ) December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 865 $ 265 $ 0 $ 1,130 Foreign corporate public securities 654 82 0 736 Foreign corporate private securities(5) 84 2 0 86 Commercial mortgage-backed securities 0 0 0 0 Residential mortgage-backed securities(3) 446 32 0 478 Total fixed maturities, held-to-maturity(5) $ 2,049 $ 381 $ 0 $ 2,430 __________ (1) Excludes notes with amortized cost of $2,660 million (fair value, $2,660 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $553 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, $4,913 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 securities had been in a continuous unrealized loss position, as of the dates indicated: June 30, 2018 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 $ 5,105 $ 125 $ 4,940 $ 488 $ 10,045 $ 613 Obligations of U.S. states and their political subdivisions 1,514 25 252 15 1,766 40 Foreign government bonds 5,039 221 2,737 193 7,776 414 U.S. corporate public securities 36,466 1,451 5,579 607 42,045 2,058 U.S. corporate private securities 14,045 382 2,242 174 16,287 556 Foreign corporate public securities 7,626 242 1,348 113 8,974 355 Foreign corporate private securities 9,568 357 3,161 403 12,729 760 Asset-backed securities 6,825 19 285 5 7,110 24 Commercial mortgage-backed securities 6,705 165 2,057 140 8,762 305 Residential mortgage-backed securities 1,149 29 292 14 1,441 43 Total $ 94,042 $ 3,016 $ 22,893 $ 2,152 $ 116,935 $ 5,168 __________ (1) Includes $13 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 June 30, 2018 . December 31, 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 $ 3,450 $ 28 $ 6,391 $ 318 $ 9,841 $ 346 Obligations of U.S. states and their political subdivisions 44 0 287 6 331 6 Foreign government bonds 4,417 55 2,937 238 7,354 293 U.S. corporate public securities 7,914 110 6,831 304 14,745 414 U.S. corporate private securities 4,596 76 2,009 93 6,605 169 Foreign corporate public securities 2,260 21 1,678 78 3,938 99 Foreign corporate private securities 1,213 20 5,339 317 6,552 337 Asset-backed securities 564 2 366 8 930 10 Commercial mortgage-backed securities 2,593 17 2,212 74 4,805 91 Residential mortgage-backed securities 584 4 286 7 870 11 Total $ 27,635 $ 333 $ 28,336 $ 1,443 $ 55,971 $ 1,776 __________ (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, 2017 . As of June 30, 2018 and December 31, 2017 , the gross unrealized losses on fixed maturity securities were composed of $4,639 million and $1,470 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 $529 million and $306 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of June 30, 2018 , the $2,152 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in U.S. government bonds and in the Company’s corporate securities within the consumer non-cyclical and utility sectors. As of December 31, 2017 , the $1,443 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in U.S. government bonds, foreign government bonds and in the Company’s corporate securities within the energy, utility and consumer non-cyclical sectors. 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, 2017 , the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either June 30, 2018 or December 31, 2017 . 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 June 30, 2018 , 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. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated: June 30, 2018 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Fixed maturities: Due in one year or less $ 10,769 $ 11,156 $ 7 $ 7 Due after one year through five years 50,932 53,917 171 176 Due after five years through ten years 63,671 66,989 572 636 Due after ten years(1) 163,074 179,988 875 1,147 Asset-backed securities 12,860 13,031 0 0 Commercial mortgage-backed securities 13,093 12,846 0 0 Residential mortgage-backed securities 3,149 3,224 395 422 Total $ 317,548 $ 341,151 $ 2,020 $ 2,388 __________ (1) Excludes available-for-sale notes with amortized cost of $3,666 million (fair value, $3,666 million ) and held-to-maturity notes with amortized cost of $4,753 million (fair value, $4,754 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 proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 9,489 $ 8,157 $ 19,074 $ 15,887 Proceeds from maturities/prepayments 6,553 7,546 11,779 13,420 Gross investment gains from sales and maturities 410 410 784 801 Gross investment losses from sales and maturities (187 ) (135 ) (444 ) (298 ) OTTI recognized in earnings(2) (58 ) (46 ) (97 ) (100 ) Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(3) $ 23 $ 39 $ 59 $ 89 __________ (1) Includes $254 million and $317 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2018 and 2017 , respectively. (2) Excludes the portion of OTTI amounts remaining 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 $3 million and $0 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2018 and 2017 , respectively. The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated: Three Months Ended Six Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in millions) Credit loss impairments: Balance, beginning of period $ 203 $ 319 $ 350 $ 359 New credit loss impairments 0 0 7 7 Additional credit loss impairments on securities previously impaired 0 0 0 1 Increases due to the passage of time on previously recorded credit losses 4 6 4 7 Reductions for securities which matured, paid down, prepaid or were sold during the period (42 ) (155 ) (7 ) (16 ) Reductions for securities impaired to fair value during the period(1) 0 (4 ) (11 ) (14 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (2 ) (3 ) (2 ) (3 ) Balance, end of period $ 163 $ 163 $ 341 $ 341 __________ (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. Assets Supporting Experience-Rated Contractholder Liabilities The following table sets forth the composition of “Assets supporting experience-rated contractholder liabilities,” as of the dates indicated: June 30, 2018 December 31, 2017 Amortized Fair Value Amortized Fair Value (in millions) Short-term investments and cash equivalents $ 340 $ 340 $ 245 $ 245 Fixed maturities: Corporate securities 13,263 13,140 13,816 14,073 Commercial mortgage-backed securities 2,390 2,350 2,294 2,311 Residential mortgage-backed securities(1) 888 867 961 966 Asset-backed securities(2) 1,470 1,493 1,363 1,392 Foreign government bonds 1,063 1,061 1,050 1,057 U.S. government authorities and agencies and obligations of U.S. states 579 619 357 410 Total fixed maturities 19,653 19,530 19,841 20,209 Equity securities 1,367 1,627 1,278 1,643 Total assets supporting experience-rated contractholder liabilities $ 21,360 $ 21,497 $ 21,364 $ 22,097 __________ (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 assets supporting experience-rated contractholder liabilities still held at period end, recorded within “Other income,” was $(198) million and $183 million during the three months ended June 30, 2018 and 2017 , respectively, and $(596) million and $229 million during the six months ended June 30, 2018 and 2017 , respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $(80) million and $11 million during the three months ended June 30, 2018 and 2017, respectively. The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income,” was $(271) million and $54 million during the six months ended June 30, 2018 and 2017, 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: June 30, 2018 December 31, 2017 Amortized Fair Value Amortized Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 69,248 $ 81,731 $ 64,628 $ 76,311 Fixed maturities, held-to-maturity 857 1,122 844 1,103 Fixed maturities, trading 23 23 23 23 Assets supporting experience-rated contractholder liabilities 676 686 657 667 Total $ 70,804 $ 83,562 $ 66,152 $ 78,104 June 30, 2018 December 31, 2017 Amortized Fair Value Amortized Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 9,646 $ 10,988 $ 9,425 $ 10,989 Fixed maturities, held-to-maturity 0 0 0 0 Fixed maturities, trading 0 0 0 0 Assets supporting experience-rated contractholder liabilities 15 15 15 15 Total $ 9,661 $ 11,003 $ 9,440 $ 11,004 Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2018 December 31, 2017 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 13,435 23.2 % $ 12,670 22.9 % Retail 8,707 15.1 8,543 15.5 Apartments/Multi-Family 16,194 28.0 15,465 28.0 Industrial 10,609 18.3 9,451 17.1 Hospitality 1,965 3.4 2,067 3.7 Other 3,784 6.5 3,888 7.0 Total commercial mortgage loans 54,694 94.5 52,084 94.2 Agricultural property loans 3,206 5.5 3,203 5.8 Total commercial mortgage and agricultural property loans by property type 57,900 100.0 % 55,287 100.0 % Valuation allowance (119 ) (100 ) Total net commercial mortgage and agricultural property loans by property type 57,781 55,187 Other loans: Uncollateralized loans 666 663 Residential property loans 176 196 Other collateralized loans 4 5 Total other loans 846 864 Valuation allowance (5 ) (6 ) Total net other loans 841 858 Total commercial mortgage and other loans(1) $ 58,622 $ 56,045 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2018 and December 31, 2017 , the net carrying value of these loans was $330 million and $593 million , respectively. As of June 30, 2018 , the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (28%) , Texas (9%) and New York (8%) and included loans secured by properties in Europe (6%) , Australia (1%) 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: June 30, 2018 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 $ 3 $ 1 $ 0 $ 5 $ 106 Addition to (release of) allowance for losses 19 0 0 0 (1 ) 18 Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 0 0 Total ending balance $ 116 $ 3 $ 1 $ 0 $ 4 $ 124 December 31, 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 2 1 (1 ) 0 (1 ) 1 Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 0 0 Total ending balance $ 97 $ 3 $ 1 $ 0 $ 5 $ 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: June 30, 2018 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 $ 20 $ 0 $ 0 $ 0 $ 0 $ 20 Collectively evaluated for impairment 96 3 1 0 4 104 Total ending balance(1) $ 116 $ 3 $ 1 $ 0 $ 4 $ 124 Recorded investment(2): Individually evaluated for impairment $ 70 $ 35 $ 0 $ 0 $ 2 $ 107 Collectively evaluated for impairment 54,624 3,171 176 4 664 58,639 Total ending balance(1) $ 54,694 $ 3,206 $ 176 $ 4 $ 666 $ 58,746 __________ (1) As of June 30, 2018 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 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 $ 7 $ 0 $ 0 $ 0 $ 0 $ 7 Collectively evaluated for impairment 90 3 1 0 5 99 Total ending balance(1) $ 97 $ 3 $ 1 $ 0 $ 5 $ 106 Recorded investment(2): Individually evaluated for impairment $ 75 $ 39 $ 0 $ 0 $ 2 $ 116 Collectively evaluated for impairment 52,009 3,164 196 5 661 56,035 Total ending balance(1) $ 52,084 $ 3,203 $ 196 $ 5 $ 663 $ 56,151 __________ (1) As of December 31, 2017 , 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 June 30, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 29,292 $ 520 $ 281 $ 30,093 60%-69.99% 16,737 579 155 17,471 70%-79.99% 6,047 807 11 6,865 80% or greater 60 182 23 265 Total commercial mortgage loans $ 52,136 $ 2,088 $ 470 $ 54,694 Agricultural property loans June 30, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 2,955 $ 176 $ 0 $ 3,131 60%-69.99% 75 0 0 75 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,030 $ 176 $ 0 $ 3,206 Total commercial mortgage and agricultural property loans June 30, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 32,247 $ 696 $ 281 $ 33,224 60%-69.99% 16,812 579 155 17,546 70%-79.99% 6,047 807 11 6,865 80% or greater 60 182 23 265 Total commercial mortgage and agricultural property loans $ 55,166 $ 2,264 $ 470 $ 57,900 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, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 30,082 $ 639 $ 251 $ 30,972 60%-69.99% 13,658 530 121 14,309 70%-79.99% 5,994 514 29 6,537 80% or greater 93 54 119 266 Total commercial mortgage loans $ 49,827 $ 1,737 $ 520 $ 52,084 Agricultural property loans December 31, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 2,988 $ 170 $ 5 $ 3,163 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 $ 3,028 $ 170 $ 5 $ 3,203 Total commercial mortgage and agricultural property loans December 31, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 33,070 $ 809 $ 256 $ 34,135 60%-69.99% 13,698 530 121 14,349 70%-79.99% 5,994 514 29 6,537 80% or greater 93 54 119 266 Total commercial mortgage and agricultural property loans $ 52,855 $ 1,907 $ 525 $ 55,287 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: June 30, 2018 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 $ 54,694 $ 0 $ 0 $ 0 $ 0 $ 54,694 $ 70 Agricultural property loans 3,190 0 0 16 16 3,206 23 Residential property loans 172 1 1 2 4 176 2 Other collateralized loans 4 0 0 0 0 4 0 Uncollateralized loans 666 0 0 0 0 666 0 Total $ 58,726 $ 1 $ 1 $ 18 $ 20 $ 58,746 $ 95 __________ (1) As of June 30, 2018 , 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, 2017 . December 31, 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 $ 52,084 $ 0 $ 0 $ 0 $ 0 $ 52,084 $ 71 Agricultural property loans 3,201 0 0 2 2 3,203 23 Residential property loans 191 3 0 2 5 196 2 Other collateralized loans 5 0 0 0 0 5 0 Uncollateralized loans 663 0 0 0 0 663 0 Total $ 56,144 $ 3 $ 0 $ 4 $ 7 $ 56,151 $ 96 __________ (1) As of December 31, 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, 2017 . Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2018 December 31, 2017 (in millions) LPs/LLCs: Equity method: Private equity $ 2,927 $ 2,954 Hedge funds 1,021 803 Real estate-related 1,171 972 Subtotal equity method 5,119 4,729 Fair value: Private equity 1,608 1,325 Hedge funds 2,307 2,419 Real estate-related 293 247 Subtotal fair value(1) 4,208 3,991 Total LPs/LLCs 9,327 8,720 Real estate held through direct ownership(2) 2,278 2,409 Derivative instruments 820 1,214 Other(3) 1,034 1,030 Total other invested assets(4) $ 13,459 $ 13,373 _________ (1) As of December 31, 2017 , $ 1,572 million was accounted for using the cost method. (2) As of June 30, 2018 and December 31, 2017 , real estate held through direct ownership had mortgage debt of $751 million and $799 million , respectively. (3) Primarily includes strategic investments made by investment management operations, leveraged leases and member and activity stock held in the Federal Home Loan Banks of New York and Boston. 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, 2017 . (4) Prior period amounts have been reclassified to conform to current period presentation. For additional information, see Note 2. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Fixed maturities, available-for-sale(1) $ 3,001 $ 2,856 $ 5,955 $ 5,651 Fixed maturities, held-to-maturity(1) 57 54 112 108 Fixed maturities, trading 30 45 61 87 Assets supporting experience-rated contractholder liabilities, at fair value 181 177 372 372 Equity securities, at fair value 59 114 94 204 Commercial mortgage and other loans 594 583 1,163 1,120 Policy loans 156 155 308 307 Other invested assets 163 248 304 580 Short-term investments and cash equivalents 82 46 154 90 Gross investment income 4,323 4,278 8,523 8,519 Less: investment expenses (227 ) (189 ) (429 ) (369 ) Net investment income(2) $ 4,096 $ 4,089 $ 8,094 $ 8,150 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line item as related surplus notes, as conditions are met for right to offset. (2) Prior period amounts have been reclassified to conform to current period presentation. 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 Six Months Ended 2018 2017 2018 2017 (in millions) Fixed maturities(1) $ 165 $ 229 $ 243 $ 403 Equity securities(2) 0 164 0 420 Commercial mortgage and other loans 5 14 17 28 Investment real estate 60 6 62 12 LPs/LLCs 10 (10 ) 16 (21 ) Derivatives(3) 445 (1,496 ) 773 (1,507 ) Other 0 1 (1 ) 0 Realized investment gains (losses), net $ 685 $ (1,092 ) $ 1,110 $ (665 ) __________ (1) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading. (2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within “Other income.” (3) Includes the hedged items offset in qualifying fair value hedge accounting relationships. Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: June 30, December 31, (in millions) Fixed maturity securities, available-for-sale—with OTTI $ 216 $ 286 Fixed maturity securities, available-for-sale—all other 23,387 34,109 Equity securities, available-for-sale(1) 0 2,027 Derivatives designated as cash flow hedges(2) 99 (39 ) Other investments(3) (9 ) 15 Net unrealized gains (losses) on investments $ 23,693 $ 36,398 __________ (1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income.” (2) For more information on cash flow hedges, see Note 5. (3) As of June 30, 2018 , 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: June 30, 2018 December 31, 2017 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) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 8,394 $ 775 $ 9,169 $ 911 $ 7,349 $ 8,260 U.S. corporate public securities 20 0 20 1 0 1 Foreign corporate public securities 0 0 0 0 0 0 Residential mortgage-backed securities 351 0 351 0 139 139 Equity securities 0 0 0 0 0 0 Total securities sold under agreements to repurchase(1) $ 8,765 $ 775 $ 9,540 $ 912 $ 7,488 $ 8,400 __________ (1) The Company did not have any 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: June 30, 2018 December 31, 2017 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) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 142 $ 161 $ 303 $ 87 $ 35 $ 122 Obligations of U.S. states and their political subdivisions 139 0 139 103 0 103 Foreign government bonds 368 0 368 335 0 335 U.S. corporate public securities 2,749 0 2,749 2,961 0 2,961 Foreign corporate public securities 612 0 612 655 0 655 Residential mortgage-backed securities 0 0 0 0 0 0 Equity securities 136 0 136 178 0 178 Total cash collateral for loaned securities(1) $ 4,146 $ 161 $ 4,307 $ 4,319 $ 35 $ 4,354 __________ (1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017. 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. 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)(2) Other Consolidated VIEs(1) June 30, December 31, June 30, December 31, (in millions) Fixed maturities, available-for-sale $ 75 $ 69 $ 279 $ 275 Fixed maturities, held-to-maturity 85 83 824 810 Fixed maturities, trading 1,071 1,623 0 0 Assets supporting experience-rated contractholder liabilities 0 0 9 9 Equity securities 38 28 0 0 Commercial mortgage and other loans 652 617 0 0 Other invested assets 1,316 1,390 84 97 Cash and cash equivalents 130 164 0 0 Accrued investment income 5 7 4 4 Other assets 445 440 141 150 Total assets of consolidated VIEs $ 3,817 $ 4,421 $ 1,341 $ 1,345 Other liabilities $ 288 $ 433 $ 8 $ 0 Notes issued by consolidated VIEs(3) 937 1,518 0 0 Total liabilities of consolidated VIEs $ 1,225 $ 1,951 $ 8 $ 0 __________ (1) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for additional information. (2) Total assets of consolidated VIEs reflect $1,796 million and $1,716 million as of June 30, 2018 and December 31, 2017 , 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 the Company . As of June 30, 2018 and December 31, 2017 , 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 $858 million and $1,013 million at June 30, 2018 and December 31, 2017 , respectively. These investments are reflected in “Fixed maturities, available-for-sale,” “Fixed maturities, trading,” “Equity securities” and “Other invested assets.” 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 LPs/LLCs, which 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 invested assets” and its maximum exposure to loss associated with these entities was $9,327 million and $8,720 million as of June 30, 2018 and December 31, 2017 , 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 3 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. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2018 | |
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: futures, swaps, options, swaptions, caps and floors • Equity contracts: futures, 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 (“TBA”) forward contracts, loan commitments, embedded derivatives and synthetic guaranteed investment contracts (“GICs”). 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, 2017 . 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 risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. 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 non-performance risk (“NPR”). This netting impact results in total derivative assets of $812 million and $1,205 million as of June 30, 2018 and December 31, 2017 , respectively, and total derivative liabilities of $676 million and $643 million as of June 30, 2018 and December 31, 2017 , respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position. Primary Underlying Risk /Instrument Type June 30, 2018 December 31, 2017 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 $ 2,925 $ 155 $ (74 ) $ 3,204 $ 271 $ (88 ) Foreign Currency Foreign Currency Forwards 574 8 0 545 0 (8 ) Currency/Interest Rate Foreign Currency Swaps 19,272 946 (645 ) 17,732 766 (735 ) Total Qualifying Hedges $ 22,771 $ 1,109 $ (719 ) $ 21,481 $ 1,037 $ (831 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 150,392 $ 5,891 $ (3,856 ) $ 158,552 $ 7,958 $ (3,509 ) Interest Rate Futures 18,311 2 (2 ) 23,792 25 (1 ) Interest Rate Options 22,424 170 (259 ) 18,456 167 (203 ) Interest Rate Forwards 2,628 10 0 1,498 6 (2 ) Foreign Currency Foreign Currency Forwards 23,197 284 (182 ) 23,905 164 (254 ) Foreign Currency Options 46 0 0 59 0 0 Currency/Interest Rate Foreign Currency Swaps 13,537 740 (449 ) 13,777 822 (414 ) Credit Credit Default Swaps 1,390 18 (6 ) 1,314 21 (5 ) Equity Equity Futures 1,031 1 (9 ) 710 2 (2 ) Equity Options 53,838 535 (534 ) 36,007 588 (364 ) Total Return Swaps 19,712 254 (197 ) 15,558 17 (369 ) Other Other (2) 504 0 0 0 0 0 Synthetic GICs 77,495 2 0 77,290 0 (1 ) Total Non-Qualifying Derivatives $ 384,505 $ 7,907 $ (5,494 ) $ 370,918 $ 9,770 $ (5,124 ) Total Derivatives(1) $ 407,276 $ 9,016 $ (6,213 ) $ 392,399 $ 10,807 $ (5,955 ) __________ (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $6,651 million and $8,748 million as of June 30, 2018 and December 31, 2017 , respectively, primarily included in “Future policy benefits.” (2) “Other” primarily includes derivative contracts used to balance the Company’s tail longevity and mortality risk. Under these contracts, the Company’s gain/loss is capped at the notional amount. Most of the Company’s derivatives do not qualify for hedge accounting for various reasons. For example: (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 GIC, 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. June 30, 2018 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) $ 8,933 $ (8,204 ) $ 729 $ (457 ) $ 272 Securities purchased under agreement to resell 2,339 0 2,339 (2,339 ) 0 Total assets $ 11,272 $ (8,204 ) $ 3,068 $ (2,796 ) $ 272 Offsetting of Financial Liabilities: Derivatives(1) $ 6,205 $ (5,537 ) $ 668 $ (452 ) $ 216 Securities sold under agreement to repurchase 9,540 0 9,540 (9,540 ) 0 Total liabilities $ 15,745 $ (5,537 ) $ 10,208 $ (9,992 ) $ 216 December 31, 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 Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 10,710 $ (9,600 ) $ 1,110 $ (625 ) $ 485 Securities purchased under agreement to resell 240 0 240 (240 ) 0 Total assets $ 10,950 $ (9,600 ) $ 1,350 $ (865 ) $ 485 Offsetting of Financial Liabilities: Derivatives(1) $ 5,948 $ (5,312 ) $ 636 $ (588 ) $ 48 Securities sold under agreement to repurchase 8,400 0 8,400 (8,400 ) 0 Total liabilities $ 14,348 $ (5,312 ) $ 9,036 $ (8,988 ) $ 48 __________ (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, 2017 . 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 June 30, 2018 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 5 $ (2 ) $ 0 $ 0 $ (28 ) $ 0 Currency 1 0 0 0 0 0 Total fair value hedges 6 (2 ) 0 0 (28 ) 0 Cash flow hedges Interest Rate 0 0 0 0 0 (1 ) Currency 0 0 0 0 0 18 Currency/Interest Rate 0 52 209 0 0 704 Total cash flow hedges 0 52 209 0 0 721 Net investment hedges Currency 2 0 0 0 0 5 Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 2 0 0 0 0 5 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (432 ) 0 0 0 0 0 Currency (130 ) 0 (1 ) 0 0 0 Currency/Interest Rate 606 0 2 0 0 0 Credit (1 ) 0 0 0 0 0 Equity (258 ) 0 0 0 0 0 Other (1 ) 0 0 0 0 0 Embedded Derivatives 658 0 0 0 0 0 Total non-qualifying hedges 442 0 1 0 0 0 Total $ 450 $ 50 $ 210 $ 0 $ (28 ) $ 726 Six Months Ended June 30, 2018 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 22 $ (6 ) $ 0 $ 0 $ (111 ) $ 0 Currency 3 0 0 0 0 0 Total fair value hedges 25 (6 ) 0 0 (111 ) 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 6 Currency 0 0 0 0 0 9 Currency/Interest Rate 0 100 118 0 0 123 Total cash flow hedges 0 100 118 (1 ) 0 138 Net investment hedges Currency 0 0 0 0 0 3 Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 3 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,947 ) 0 0 0 0 0 Currency 279 0 0 0 0 0 Currency/Interest Rate 52 0 1 0 0 0 Credit (5 ) 0 0 0 0 0 Equity (248 ) 0 0 0 0 0 Other (1 ) 0 0 0 0 0 Embedded Derivatives 2,637 0 0 0 0 0 Total non-qualifying hedges 767 0 1 0 0 0 Total $ 792 $ 94 $ 119 $ (1 ) $ (111 ) $ 141 Three Months Ended June 30, 2017 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 0 $ (5 ) $ 0 $ 0 $ 0 $ 0 Currency (5 ) 0 0 0 0 0 Total fair value hedges (5 ) (5 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 1 Currency/Interest Rate 0 49 (125 ) 0 0 (340 ) Total cash flow hedges 0 49 (125 ) (1 ) 0 (339 ) Net investment hedges Currency 0 0 0 0 0 (3 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (3 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,110 0 0 0 0 0 Currency (46 ) 0 (2 ) 0 0 0 Currency/Interest Rate (53 ) 0 0 0 0 0 Credit 6 0 0 0 0 0 Equity (453 ) 0 0 0 0 0 Other 0 0 0 0 0 0 Embedded Derivatives (2,059 ) 0 0 0 0 0 Total non-qualifying hedges (1,495 ) 0 (2 ) 0 0 0 Total $ (1,500 ) $ 44 $ (127 ) $ (1 ) $ 0 $ (342 ) _ Six Months Ended June 30, 2017 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 7 $ (11 ) $ 0 $ 0 $ 0 $ 0 Currency (2 ) 0 0 0 0 0 Total fair value hedges 5 (11 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 4 Currency/Interest Rate 0 93 (164 ) 0 0 (540 ) Total cash flow hedges 0 93 (164 ) (1 ) 0 (536 ) Net investment hedges Currency 0 0 0 0 0 (7 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (7 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 964 0 0 0 0 0 Currency (8 ) 0 (1 ) 0 0 0 Currency/Interest Rate (141 ) 0 (2 ) 0 0 0 Credit 16 0 0 0 0 0 Equity (1,157 ) 0 0 0 0 0 Other 0 0 0 0 0 0 Embedded Derivatives (1,182 ) 0 0 0 0 0 Total non-qualifying hedges (1,508 ) 0 (3 ) 0 0 0 Total $ (1,503 ) $ 82 $ (167 ) $ (1 ) $ 0 $ (543 ) _________ (1) Amounts deferred in AOCI. For the six months ended June 30, 2018 , the ineffective portion of derivatives accounted for using hedge accounting was a loss of $12 million and for the six months ended June 30, 2017 , the ineffective portion of derivatives accounted for using hedge accounting was de minimis 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, 2017 $ (39 ) Net deferred gains/(losses) on cash flow hedges from January 1 to June 30, 2018 385 Amount reclassified into current period earnings (247 ) Balance, June 30, 2018 $ 99 The changes in fair value of cash flow hedges are deferred in AOCI and are included in “Net unrealized investment gains (losses)” in the Consolidated Statements of Comprehensive Income; these amounts are then reclassified to earnings when the hedged item affects earnings. Using June 30, 2018 values, it is estimated that a pre-tax gain of approximately $194 million will be reclassified from AOCI to earnings during the subsequent twelve months ending June 30, 2019 , offset by amounts pertaining to the hedged items. The Company’s exposure from the qualifying cash flow hedges reflects variability of future cash flows in foreign currency amounts related to both the forecasted transactions and the receipt or payment of interest on existing financial instruments. As of June 30, 2018 , the maximum length of time over which these cash flow hedges are outstanding were 5 years and 40 years respectively. For effective net investment hedges, the amounts, before applicable taxes, recorded in the cumulative translation adjustment account within AOCI were $529 million and $526 million as of June 30, 2018 and December 31, 2017 , 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 $ 114 million as of June 30, 2018 and December 31, 2017 , respectively. These credit derivatives are reported at fair value as an asset of $1 million and $2 million as of June 30, 2018 and December 31, 2017 , respectively. As of June 30, 2018 , the notional amount of these credit derivatives had the following NAIC ratings: $ 37 million in NAIC 1; $ 62 million in NAIC 2; $5 million in NAIC 3; $1 million in NAIC 4; $1 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 $1,135 million and $1,022 million as of June 30, 2018 and December 31, 2017 , respectively. These credit derivatives are reported at fair value as an asset of $14 million and $ 18 million as of June 30, 2018 and December 31, 2017 , respectively. As of June 30, 2018 , the notional amount of these credit derivatives had the following NAIC ratings: $ 50 million in NAIC 1; $970 million in NAIC 3; and $115 million NAIC 6. 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 29 years . 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 June 30, 2018 and December 31, 2017 , the Company had $145 million and $178 million of outstanding notional amounts reported at fair value as a liability of $2 million and $5 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 with a positive fair value. 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 agreements, as applicable; (ii) trading through central clearing and over-the-counter (“OTC”) parties; (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. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position. As of June 30, 2018, there were no net liability derivative positions with counterparties with credit risk-related contingent features; as such, all derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 . 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 June 30, 2018 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 $ 24,778 $ 67 $ $ 24,845 Obligations of U.S. states and their political subdivisions 0 10,274 5 10,279 Foreign government bonds 0 108,700 137 108,837 U.S. corporate public securities 0 82,244 116 82,360 U.S. corporate private securities(2) 0 31,067 1,817 32,884 Foreign corporate public securities 0 28,819 65 28,884 Foreign corporate private securities 0 23,268 693 23,961 Asset-backed securities(3) 0 11,742 1,289 13,031 Commercial mortgage-backed securities 0 12,562 284 12,846 Residential mortgage-backed securities 0 3,133 91 3,224 Subtotal 0 336,587 4,564 341,151 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 420 0 420 Obligations of U.S. states and their political subdivisions 0 199 0 199 Foreign government bonds 0 840 221 1,061 Corporate securities 0 12,652 488 13,140 Asset-backed securities(3) 0 1,386 107 1,493 Commercial mortgage-backed securities 0 2,350 0 2,350 Residential mortgage-backed securities 0 867 0 867 Equity securities 1,356 267 4 1,627 All other(5) 0 39 5 44 Subtotal 1,356 19,020 825 21,201 Fixed maturities trading 0 2,743 173 2,916 Equity securities 5,617 654 783 7,054 Commercial mortgage and other loans 0 330 0 330 Other invested assets(6) 3 9,009 122 (8,204 ) 930 Short-term investments 2,342 1,789 1 4,132 Cash equivalents 1,141 4,423 2 5,566 Other assets 0 3 0 3 Separate account assets(7)(8) 43,335 228,246 1,816 273,397 Total assets $ 53,794 $ 602,804 $ 8,286 $ (8,204 ) $ 656,680 Future policy benefits(9) $ 0 $ 0 $ 6,585 $ $ 6,585 Other liabilities 15 6,204 60 (5,537 ) 742 Notes issued by consolidated VIEs 0 0 609 609 Total liabilities $ 15 $ 6,204 $ 7,254 $ (5,537 ) $ 7,936 As of December 31, 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 $ 26,086 $ 52 $ $ 26,138 Obligations of U.S. states and their political subdivisions 0 10,466 5 10,471 Foreign government bonds 0 103,271 148 103,419 U.S. corporate public securities 0 90,115 109 90,224 U.S. corporate private securities(2) 0 31,845 1,889 33,734 Foreign corporate public securities 0 29,329 79 29,408 Foreign corporate private securities 0 23,528 699 24,227 Asset-backed securities(3) 0 5,629 6,604 12,233 Commercial mortgage-backed securities 0 13,268 13 13,281 Residential mortgage-backed securities 0 3,547 98 3,645 Subtotal 0 337,084 9,696 346,780 Assets supporting experience-rated contractholder liabilities(4): U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 201 0 201 Obligations of U.S. states and their political subdivisions 0 208 0 208 Foreign government bonds 0 834 223 1,057 Corporate securities 0 13,611 462 14,073 Asset-backed securities(3) 0 670 722 1,392 Commercial mortgage-backed securities 0 2,311 0 2,311 Residential mortgage-backed securities 0 965 1 966 Equity securities 1,381 258 4 1,643 All other(5) 25 105 7 137 Subtotal 1,406 19,163 1,419 21,988 Fixed maturities trading(4) 0 3,351 156 3,507 Equity securities(4) 5,978 556 795 7,329 Commercial mortgage and other loans 0 593 0 593 Other invested assets(4)(6) 32 10,768 137 (9,600 ) 1,337 Short-term investments(4) 3,931 1,850 8 5,789 Cash equivalents(4) 1,900 6,398 0 8,298 Other assets 0 1 13 14 Separate account assets(7)(8) 45,397 232,874 2,122 280,393 Total assets $ 58,644 $ 612,638 $ 14,346 $ (9,600 ) $ 676,028 Future policy benefits(9) $ 0 $ 0 $ 8,720 $ $ 8,720 Other liabilities 4 5,946 50 (5,312 ) 688 Notes issued by consolidated VIEs 0 0 1,196 1,196 Total liabilities $ 4 $ 5,946 $ 9,966 $ (5,312 ) $ 10,604 __________ (1) “Netting” amounts represent cash collateral of $2,667 million and $4,288 million as of June 30, 2018 and December 31, 2017 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Excludes notes with both fair value and carrying amount of $3,666 million and $2,660 million , as of June 30, 2018 and December 31, 2017 , 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) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. (5) All other represents cash equivalents and short-term investments. (6) Other invested assets 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 June 30, 2018 and December 31, 2017 , the fair values of such investments were $4,208 million and $1,969 million respectively. (7) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV 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. At June 30, 2018 and December 31, 2017 , the fair value of such investments was $25,261 million and $26,224 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 June 30, 2018 , the net embedded derivative liability position of $6.6 billion includes $1.0 billion of embedded derivatives in an asset position and $7.6 billion of embedded derivatives in a liability position. As of December 31, 2017 , the net embedded derivative liability position of $8.7 billion includes $0.9 billion of embedded derivatives in an asset position and $9.6 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Transferred from Level 1 to Level 2 $ 10 $ 17 $ 180 $ 63 Transferred from Level 2 to Level 1 $ 3 $ 27 $ 10 $ 83 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 June 30, 2018 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) $ 1,359 Discounted cash flow Discount rate 0.63% - 20.82% 7.20% Decrease Market comparables EBITDA multiples(3) 4.5X 8.0X 6.6X Increase Liquidation Liquidation value 6.40% - 17.80% 15.24% Increase Separate account assets-commercial mortgage loans(4) $ 790 Discounted cash flow Spread 1.05% - 2.73% 1.15% Decrease Liabilities: Future policy benefits(5) $ 6,585 Discounted cash flow Lapse rate(6) 1% - 13% Decrease Spread over LIBOR(7) 0.19% - 1.28% Decrease Utilization rate(8) 54% - 97% Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0% - 15% Decrease Equity volatility curve 15% - 22% Increase As of December 31, 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) $ 1,352 Discounted cash flow Discount rate 0.65% - 22% 7.20% Decrease Market comparables EBITDA multiples(3) 7.4X - 7.4X 7.4X Increase Liquidation Liquidation value 13.10% - 25.00% 14.68% Increase Separate account assets-commercial mortgage loans(4) $ 821 Discounted cash flow Spread 1.08% - 2.78% 1.20% Decrease Liabilities: Future policy benefits(5) $ 8,720 Discounted cash flow Lapse rate(6) 1% - 12% Decrease Spread over LIBOR(7) 0.12% - 1.10% 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 __________ (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, assets supporting experience-rated contractholder liabilities and fixed maturities trading. (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 the London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the proxy for the risk-free rate (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 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 June 30, 2018 and December 31, 2017 , 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, 2017 . 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. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. For the three months ended June 30, 2018 , $5,078 million of investments in collateralized loan obligations (“CLOs”) reported as “Asset-backed securities” were transferred from Level 3 to Level 2 as market activity, liquidity and overall observability of valuation inputs of CLOs have increased. 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, 2017 . Three Months Ended June 30, 2018 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 59 $ 5 $ 128 $ 2,735 $ 6,899 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (20 ) 1 Included in other comprehensive income (loss) 0 0 (2 ) (11 ) (12 ) Net investment income 0 0 0 2 2 Purchases 8 0 0 257 441 Sales 0 0 0 (3 ) (278 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (286 ) (668 ) Foreign currency translation 0 0 (4 ) (9 ) (25 ) Other(6) 0 0 0 (22 ) 1 Transfers into Level 3(7) 0 0 15 69 62 Transfers out of Level 3(7) 0 0 0 (21 ) (4,759 ) Fair Value, end of period $ 67 $ 5 $ 137 $ 2,691 $ 1,664 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (21 ) $ 0 Three Months Ended June 30, 2018 Assets Supporting Experience-Rated Contractholder Liabilities Foreign government Corporate securities(2) Structured securities(3) Equity securities All other activity (in millions) Fair Value, beginning of period $ 220 $ 468 $ 664 $ 5 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 2 (11 ) (2 ) 0 0 Net investment income 2 1 0 0 0 Purchases 0 41 16 0 24 Sales 0 0 0 (1 ) 0 Issuances 0 0 0 0 0 Settlements (3 ) (51 ) (129 ) 0 (26 ) Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 40 5 0 0 Transfers out of Level 3(7) 0 0 (447 ) 0 0 Fair Value, end of period $ 221 $ 488 $ 107 $ 4 $ 5 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 2 $ (10 ) $ (1 ) $ 0 $ 0 Three Months Ended June 30, 2018 Fixed maturities trading Equity securities Other invested assets Short-term investments Cash equivalents (in millions) Fair Value, beginning of period $ 204 $ 785 $ 144 $ 10 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 (4 ) 0 0 Other income 4 (12 ) 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 9 35 0 8 9 Sales (38 ) (15 ) (12 ) 0 0 Issuances 0 0 0 0 0 Settlements (3 ) (2 ) 0 (14 ) (7 ) Foreign currency translation (2 ) (15 ) 0 (1 ) 0 Other(6) 0 4 (6 ) (2 ) 0 Transfers into Level 3(7) 1 3 0 0 0 Transfers out of Level 3(7) (3 ) 0 0 0 0 Fair Value, end of period $ 173 $ 783 $ 122 $ 1 $ 2 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (3 ) $ 0 $ 0 Other income $ 0 $ (15 ) $ 0 $ 0 $ 0 Three Months Ended June 30, 2018 Other Separate account assets(4) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 0 $ 2,360 $ (6,981 ) $ (56 ) $ (612 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 683 (18 ) 3 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 22 0 0 0 Net investment income 0 0 0 0 0 Purchases 0 253 0 8 0 Sales 0 (14 ) 0 0 0 Issuances 0 0 (287 ) 0 0 Settlements 0 (140 ) 0 6 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 29 0 0 0 Transfers out of Level 3(7) 0 (694 ) 0 0 0 Fair Value, end of period $ 0 $ 1,816 $ (6,585 ) $ (60 ) $ (609 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 612 $ (18 ) $ 3 Other income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 21 $ 0 $ 0 $ 0 Six Months Ended June 30, 2018(1) Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 52 $ 5 $ 148 $ 2,776 $ 6,716 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (27 ) 14 Included in other comprehensive income (loss) 0 0 (2 ) 5 (42 ) Net investment income 0 0 0 4 4 Purchases 15 0 0 375 1,988 Sales 0 0 0 (4 ) (344 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (455 ) (1,317 ) Foreign currency translation 0 0 (3 ) 3 1 Other(6) 0 0 0 (22 ) 5 Transfers into Level 3(7) 0 0 20 129 1,133 Transfers out of Level 3(7) 0 0 (26 ) (93 ) (6,494 ) Fair Value, end of period $ 67 $ 5 $ 137 $ 2,691 $ 1,664 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (30 ) $ 0 Six Months Ended June 30, 2018(1) Assets Supporting Experience-Rated Contractholder Liabilities Foreign government Corporate securities(2) Structured securities(3) Equity securities All other activity (in millions) Fair Value, beginning of period $ 223 $ 462 $ 722 $ 4 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income (2 ) (10 ) (2 ) 1 0 Net investment income 3 1 0 0 0 Purchases 0 65 19 0 43 Sales 0 0 0 (1 ) 0 Issuances 0 0 0 0 0 Settlements (3 ) (69 ) (142 ) 0 (45 ) Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 40 33 0 0 Transfers out of Level 3(7) 0 (1 ) (523 ) 0 0 Fair Value, end of period $ 221 $ 488 $ 107 $ 4 $ 5 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ (2 ) $ (9 ) $ (1 ) $ 1 $ 0 Six Months Ended June 30, 2018(1) Fixed maturities trading Equity securities Other invested assets Short-term investments Cash equivalents (in millions) Fair Value, beginning of period $ 156 $ 795 $ 137 $ 8 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 4 (1 ) 0 Other income 2 2 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 49 42 1 22 9 Sales (42 ) (32 ) (12 ) 0 0 Issuances 0 0 0 0 0 Settlements (3 ) (39 ) 0 (26 ) (7 ) Foreign currency translation 3 6 0 0 0 Other(6) 0 9 (8 ) (2 ) 0 Transfers into Level 3(7) 12 3 0 0 0 Transfers out of Level 3(7) (5 ) (3 ) 0 0 0 Fair Value, end of period $ 173 $ 783 $ 122 $ 1 $ 2 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 2 $ (1 ) $ 0 Other income $ 4 $ (1 ) $ 0 $ 0 $ 0 Six Months Ended June 30, 2018(1) Other Separate account assets(4) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 13 $ 2,122 $ (8,720 ) $ (50 ) $ (1,196 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (13 ) 0 2,709 (37 ) 0 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 (11 ) 0 0 0 Net investment income 0 0 0 0 0 Purchases 0 490 0 18 0 Sales 0 (22 ) 0 0 0 Issuances 0 0 (574 ) 0 0 Settlements 0 (261 ) 0 8 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 1 587 Transfers into Level 3(7) 0 224 0 0 0 Transfers out of Level 3(7) 0 (726 ) 0 0 0 Fair Value, end of period $ 0 $ 1,816 $ (6,585 ) $ (60 ) $ (609 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ (13 ) $ 0 $ 2,529 $ (36 ) $ 0 Other income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ (5 ) $ 0 $ 0 $ 0 Three Months Ended June 30, 2017 Fixed Maturities Available-For-Sale U.S. U.S. Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 10 $ 5 $ 136 $ 2,111 $ 5,911 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (17 ) 57 Included in other comprehensive income (loss) 0 0 2 (16 ) (13 ) Net investment income 0 0 0 2 2 Purchases 22 0 (1 ) 88 1,659 Sales 0 0 0 (3 ) (385 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (388 ) (994 ) Foreign currency translation 0 0 (4 ) 0 13 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 0 11 28 998 Transfers out of Level 3(7) 0 0 (1 ) (143 ) (504 ) Fair Value, end of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (31 ) $ 0 Three Months Ended June 30, 2017 Assets Supporting Experience-Rated Contractholder Liabilities(5) Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 227 $ 174 $ 676 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 Other income 1 (1 ) 2 Net investment income 2 1 1 Purchases 0 28 28 Sales 0 0 (9 ) Issuances 0 0 0 Settlements (2 ) (55 ) (113 ) Foreign currency translation 0 0 0 Other(6) 0 0 0 Transfers into Level 3(7) 0 1 165 Transfers out of Level 3(7) 0 0 (129 ) Fair Value, end of period $ 228 $ 148 $ 621 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Other income $ 2 $ (2 ) $ 2 Three Months Ended June 30, 2017 Fixed maturities trading(5) Equity Other Short-term Cash equivalents (in millions) Fair Value, beginning of period $ 106 $ 811 $ 79 $ 1 $ 6 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 4 (1 ) 0 0 Other income 5 (1 ) 0 0 0 Included in other comprehensive income (loss) 0 (2 ) 0 0 0 Net investment income 0 0 0 0 0 Purchases 16 10 0 0 0 Sales (7 ) (6 ) 0 0 0 Issuances 0 0 0 0 0 Settlements (2 ) (1 ) 0 0 (6 ) Foreign currency translation 2 5 0 0 0 Other(6) 3 (4 ) (1 ) 0 (4 ) Transfers into Level 3(7) 1 0 0 1 4 Transfers out of Level 3(7) (27 ) 0 0 0 0 Fair Value, end of period $ 97 $ 816 $ 77 $ 2 $ 0 Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 3 $ (2 ) $ 0 $ 0 Other income $ 4 $ 12 $ 0 $ 0 $ 0 Three Months Ended June 30, 2017 Other Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 0 $ 1,975 $ (7,640 ) $ (27 ) $ (1,854 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 30 0 (2,112 ) (6 ) 1 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 22 0 0 0 Net investment income 0 1 0 0 0 Purchases 9 383 0 0 0 Sales 0 (68 ) 0 0 0 Issuances 0 0 (279 ) 0 0 Settlements 0 (175 ) 0 (1 ) 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 63 0 0 0 Transfers out of Level 3(7) 0 (94 ) 0 0 0 Fair Value, end of period $ 39 $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 30 $ 0 $ (2,173 ) $ (4 ) $ 1 Other Income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 16 $ 0 $ 0 $ 0 Six Months Ended June 30, 2017 Fixed Maturities Available-For-Sale U.S. U.S. Foreign Corporate securities(2) Structured securities(3) (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 27 59 Included in other comprehensive income (loss) 0 0 2 (3 ) (13 ) Net investment income 0 0 0 11 5 Purchases 22 0 0 122 2,441 Sales 0 0 0 (144 ) (395 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (447 ) (1,414 ) Foreign currency translation 0 0 1 9 25 Other(6) 10 0 0 (10 ) (1 ) Transfers into Level 3(7) 0 0 18 126 2,645 Transfers out of Level 3(7) 0 0 (2 ) (202 ) (1,163 ) Fair Value, end of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (40 ) $ 0 Six Months Ended June 30, 2017 Assets Supporting Experience-Rated Contractholder Liabilities(5) Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 227 $ 154 $ 290 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 Other income 0 3 2 Net investment income 3 1 1 Purchases 0 59 218 Sales 0 (2 ) (9 ) Issuances 0 0 0 Settlements (2 ) (85 ) (121 ) Foreign currency translation 0 0 0 Other(6) 0 0 0 Transfers into Level 3(7) 0 22 398 Transfers out of Level 3(7) 0 (4 ) (158 ) Fair Value, end of period $ 228 $ 148 $ 621 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Other income $ 0 $ 0 $ 2 Six Months Ended June 30, 2017 Fixed maturities trading(5) Equity Other Short-term Cash equivalents (in millions) Fair Value, beginning of period $ 76 $ 752 $ 8 $ 1 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 4 (1 ) 0 0 Other income 4 20 0 0 0 Included in other comprehensive income (loss) 0 9 0 0 0 Net investment income 0 0 0 0 2 Purchases 31 32 0 0 0 Sales (8 ) (34 ) 0 0 0 Issuances 0 0 0 0 0 Settlements (12 ) (7 ) 0 0 (6 ) Foreign currency translation 3 14 0 0 0 Other(6) 4 (4 ) 70 0 0 Transfers into Level 3(7) 27 31 0 1 4 Transfers out of Level 3(7) (28 ) (1 ) 0 0 0 Fair Value, end of period $ 97 $ 816 $ 77 $ 2 $ 0 Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 3 $ (5 ) $ 0 $ 0 Other income $ 5 $ 33 $ 0 $ 0 $ 0 Six Months Ended June 30, 2017 Other Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 0 $ 1,849 $ (8,238 ) $ (22 ) $ (1,839 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 22 0 (1,237 ) (12 ) (14 ) Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 46 0 0 0 Net investment income 0 1 0 0 0 Purchases 17 538 0 0 0 Sales 0 (72 ) 0 0 0 Issuances 0 0 (554 ) 0 0 Settlements 0 (381 ) 0 0 0 Foreign currency translation 0 0 (2 ) 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 254 0 0 0 Transfers out of Level 3(7) 0 (128 ) 0 0 0 Fair Value, end of period $ 39 $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 22 $ 0 $ (1,365 ) $ (12 ) $ (14 ) Other Income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 40 $ 0 $ 0 $ 0 __________ (1) Current period amounts include one additional month of activity rela |
Closed Block
Closed Block | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017. As of June 30, 2018 and December 31, 2017 , the Company recognized a policyholder dividend obligation of $2,685 million and $1,790 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 $1,170 million and $3,656 million at June 30, 2018 and December 31, 2017 , 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: June 30, December 31, (in millions) Closed Block liabilities Future policy benefits $ 48,518 $ 48,870 Policyholders’ dividends payable 835 829 Policyholders’ dividend obligation 3,855 5,446 Policyholders’ account balances 5,097 5,146 Other Closed Block liabilities 4,712 5,070 Total Closed Block liabilities 63,017 65,361 Closed Block assets Fixed maturities, available-for-sale, at fair value 39,170 41,043 Fixed maturities, trading, at fair value(1) 190 339 Equity securities, at fair value(1) 2,149 2,340 Commercial mortgage and other loans 8,898 9,017 Policy loans 4,469 4,543 Other invested assets(1) 3,335 3,159 Short-term investments 364 632 Total investments 58,575 61,073 Cash and cash equivalents 803 789 Accrued investment income 469 474 Other Closed Block assets 424 249 Total Closed Block assets 60,271 62,585 Excess of reported Closed Block liabilities over Closed Block assets 2,746 2,776 Portion of above representing accumulated other comprehensive income: Net unrealized investment gains (losses) 1,132 3,627 Allocated to policyholder dividend obligation (1,170 ) (3,656 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,708 $ 2,747 __________ (1) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. Information regarding the policyholder dividend obligation is as follows: Six Months Ended (in millions) Balance, December 31, 2017 $ 5,446 Cumulative-effect adjustment from the adoption of ASU 2016-01(1) 157 Impact from earnings allocable to policyholder dividend obligation (75 ) Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation (1,673 ) Balance, June 30, 2018 $ 3,855 __________ (1) See Note 2 for details. Closed Block revenues and benefits and expenses are as follows for the periods indicated: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Revenues Premiums $ 602 $ 670 $ 1,152 $ 1,275 Net investment income 593 676 1,190 1,326 Realized investment gains (losses), net 110 81 108 354 Other income (loss) 85 26 107 60 Total Closed Block revenues 1,390 1,453 2,557 3,015 Benefits and Expenses Policyholders’ benefits 778 855 1,506 1,644 Interest credited to policyholders’ account balances 33 32 66 65 Dividends to policyholders 508 473 816 1,066 General and administrative expenses 92 97 184 194 Total Closed Block benefits and expenses 1,411 1,457 2,572 2,969 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes (21 ) (4 ) (15 ) 46 Income tax expense (benefit) (36 ) (17 ) (45 ) 20 Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 15 $ 13 $ 30 $ 26 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
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 $420 million , or 21.6% of income (loss) before income taxes and equity in earnings of operating joint ventures, in the first six months of 2018, compared to $520 million , or 22.1% , in the first six months of 2017. The Company’s current effective tax rates differed from the U.S. statutory rate of 21% primarily due to non-taxable investment income, tax credits and foreign earnings taxed at higher rates than the U.S. statutory rate. The Company’s prior effective tax rates differed from the U.S statutory rate in effect at that time of 35% primarily due to non-taxable investment income, tax credits and foreign earnings taxed at lower rates than the U.S. statutory rate. U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act of 2017”). On December 22, 2017, the Tax Act of 2017 was enacted into U.S. law. As a result, the Company recognized a $2,880 million tax benefit in “Total income tax expense (benefit)” in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017. In accordance with SEC Staff Accounting Bulletin 118, the Company recorded the effects of the Tax Act of 2017 as reasonable estimates due to the need for further analysis of the provisions within the Tax Act of 2017 and collection, preparation and analysis of relevant data necessary to complete the accounting. The Company has not fully completed its accounting for the tax effects of the Tax Act of 2017. As the Company completes the collection, preparation and analysis of data relevant to the Tax Act of 2017, and interprets any additional guidance issued by the Internal Revenue Service (“IRS”), U.S. Department of the Treasury, or other standard-setting organizations, the Company may make adjustments to these provisional amounts. These adjustments may materially impact the Company’s provision for income taxes in the period in which the adjustments are made. During the first six months of 2018, the Company recognized additional refinements of our provisional estimates. The cumulative financial statement impact related to the Tax Act of 2017 as of June 30, 2018 was as follows: Twelve Months Ended December 31, 2017 Six Months Ended June 30, 2018 Total (in millions) Deferred tax revaluation from 35% to 21% $ (1,592 ) $ (3 ) $ (1,595 ) Adoption of modified territorial system (1,785 ) (24 ) (1,809 ) Deemed repatriation 497 0 497 Total provision for income tax expense (benefit) $ (2,880 ) $ (27 ) $ (2,907 ) |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, 2018 December 31, 2017 ($ in millions) Commercial paper: Prudential Financial $ 19 $ 50 Prudential Funding, LLC 516 500 Subtotal commercial paper 535 550 Current portion of long-term debt(1) 1,521 830 Total short-term debt(2) $ 2,056 $ 1,380 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 122 $ 277 Daily average commercial paper outstanding $ 1,389 $ 1,110 Weighted average maturity of outstanding commercial paper, in days 16 22 Weighted average interest rate on outstanding short-term debt(3) 1.65 % 0.99 % __________ (1) Includes $41 million that has recourse only to real estate investment property at June 30, 2018. (2) Includes Prudential Financial debt of $1,499 million and $880 million at June 30, 2018 and December 31, 2017 , 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 June 30, 2018 , 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, 2017. Long-term Debt The table below presents the Company’s long-term debt as of the dates indicated: June 30, 2018 December 31, 2017 (in millions) Fixed-rate notes: Surplus notes $ 841 $ 840 Surplus notes subject to set-off arrangements(1) 6,319 5,187 Senior notes 9,126 8,882 Mortgage debt(2) 240 226 Floating-rate notes: Surplus notes 0 0 Surplus notes subject to set-off arrangements(1) 2,100 2,100 Senior notes 29 29 Mortgage debt(3) 470 573 Junior subordinated notes(4) 6,026 6,622 Subtotal 25,151 24,459 Less: assets under set-off arrangements(1) 8,419 7,287 Total long-term debt(5) $ 16,732 $ 17,172 __________ (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 $105 million and $107 million of debt denominated in foreign currency at June 30, 2018 and December 31, 2017 , respectively. (3) Includes $213 million and $245 million of debt denominated in foreign currency at June 30, 2018 and December 31, 2017 , respectively. (4) Includes Prudential Financial debt of $5,970 million and subsidiary debt of $56 million denominated in foreign currency at June 30, 2018. (5) Includes Prudential Financial debt of $14,953 million and $15,304 million at June 30, 2018 and December 31, 2017 , respectively. At June 30, 2018 and December 31, 2017 , the Company was in compliance with all debt covenants related to the borrowings in the table above. Surplus Notes During the first quarter of 2018 , the Company established a new $1.6 billion captive financing facility to finance non-economic reserves required under Regulation XXX. 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 June 30, 2018 , $100 million of surplus notes were outstanding under the facility and no credit-linked note payments have been required. During the second quarter of 2018, the Company amended its captive financing facility initially established in March 2017 for the financing of non-economic reserves required under Guideline AXXX to increase the maximum potential size of the facility to $2 billion . The Company also increased the principal amount of surplus notes outstanding under the facility by $820 million . As of June 30, 2018, an aggregate of $1.5 billion of surplus notes were outstanding under this facility and no credit-linked note payments have been required. Under each of the above transactions, 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. 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 June 30, 2018 , the outstanding balance of the Company’s medium-term notes was $8.7 billion , an increase of $1 billion from December 31, 2017 . The increase was due to the issuance in the first quarter of $600 million of notes with an interest rate of 3.878% maturing in March 2028 and $400 million of notes with an interest rate of 4.418% maturing in March 2048. Mortgage Debt. As of June 30, 2018 , the Company’s subsidiaries had mortgage debt of $751 million that has recourse only to real estate property held for investment by those subsidiaries. This represents a decrease of $48 million from December 31, 2017 , due to $77 million of prepayment activity and $6 million from foreign currency exchange rate fluctuations, partially offset by new borrowings of $35 million . Junior Subordinated Notes . In April 2018, the Company redeemed all of its $600 million 8.875% junior subordinated notes due 2068 and incurred a make-whole fee of $6 million . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 (in millions) Components of net periodic (benefit) cost Service cost $ 79 $ 71 $ 6 $ 5 Interest cost 112 119 17 21 Expected return on plan assets (205 ) (195 ) (27 ) (26 ) Amortization of prior service cost (1 ) (1 ) 0 0 Amortization of actuarial (gain) loss, net 54 48 5 9 Settlements 0 0 0 0 Special termination benefits 1 0 0 0 Net periodic (benefit) cost $ 40 $ 42 $ 1 $ 9 Six Months Ended June 30, Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 (in millions) Components of net periodic (benefit) cost Service cost $ 158 $ 142 $ 12 $ 10 Interest cost 224 238 35 41 Expected return on plan assets (409 ) (390 ) (54 ) (51 ) Amortization of prior service cost (2 ) (2 ) 0 0 Amortization of actuarial (gain) loss, net 107 96 9 18 Settlements 0 0 0 0 Special termination benefits 1 3 0 0 Net periodic (benefit) cost $ 79 $ 87 $ 2 $ 18 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 660.1 237.5 422.6 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 7.0 (7.0 ) Stock-based compensation programs(1) 0.0 (2.1 ) 2.1 Balance, June 30, 2018 660.1 242.4 417.7 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. In December 2017 , Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.5 billion of its outstanding Common Stock during the period from January 1, 2018 through December 31, 2018. As of June 30, 2018 , 7.0 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $750 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. 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 six months ended June 30, 2018 and 2017 , 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, 2017 $ (269 ) $ 19,968 $ (2,625 ) $ 17,074 Change in OCI before reclassifications (44 ) (7,502 ) 15 (7,531 ) Amounts reclassified from AOCI 0 (490 ) 114 (376 ) Income tax benefit (expense) 6 1,704 (28 ) 1,682 Cumulative effect of adoption of ASU 2016-01 0 (847 ) 0 (847 ) Cumulative effect of adoption of ASU 2018-02 (231 ) 2,282 (398 ) 1,653 Balance, June 30, 2018 $ (538 ) $ 15,115 $ (2,922 ) $ 11,655 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 614 2,502 (13 ) 3,103 Amounts reclassified from AOCI 2 (820 ) 112 (706 ) Income tax benefit (expense) (77 ) (544 ) (35 ) (656 ) Balance, June 30, 2017 $ (434 ) $ 19,309 $ (2,513 ) $ 16,362 __________ (1) Includes cash flow hedges of $99 million and $(39) million as of June 30, 2018 and December 31, 2017 , respectively, and $780 million and $1,316 million as of June 30, 2017 and December 31, 2016 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended Affected line item in Consolidated Statements of Operations 2018 2017 2018 2017 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustments $ 0 $ (2 ) $ 0 $ (3 ) Realized investment gains (losses), net Foreign currency translation adjustments 0 1 0 1 Other income Total foreign currency translation adjustment 0 (1 ) 0 (2 ) Net unrealized investment gains (losses): Cash flow hedges—Interest rate 2 (1 ) 2 (2 ) (3) Cash flow hedges—Currency 3 0 0 0 (3) Cash flow hedges—Currency/Interest rate 294 (62 ) 245 (1 ) (3) Net unrealized investment gains (losses) on available-for-sale securities 165 393 243 823 Total net unrealized investment gains (losses) 464 330 490 820 (4) Amortization of defined benefit pension items: Prior service cost 1 1 2 2 (5) Actuarial gain (loss) (59 ) (57 ) (116 ) (114 ) (5) Total amortization of defined benefit pension items (58 ) (56 ) (114 ) (112 ) Total reclassifications for the period $ 406 $ 273 $ 376 $ 706 __________ (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 5 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 invested assets 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, 2017 $ 286 $ (2 ) $ 3 $ (46 ) $ (94 ) $ 147 Net investment gains (losses) on investments arising during the period (13 ) 6 (7 ) Reclassification adjustment for (gains) losses included in net income (56 ) 25 (31 ) Reclassification adjustment for OTTI losses excluded from net income(1) (1 ) 0 (1 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 0 0 0 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables 0 0 0 Impact of net unrealized investment (gains) losses on policyholders’ dividends 22 (9 ) 13 Balance, June 30, 2018 $ 216 $ (2 ) $ 3 $ (24 ) $ (72 ) $ 121 __________ (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, 2017 $ 36,112 $ (1,580 ) $ (1,243 ) $ (3,631 ) $ (9,837 ) $ 19,821 Net investment gains (losses) on investments arising during the period (10,160 ) 2,857 (7,303 ) Reclassification adjustment for (gains) losses included in net income (434 ) 196 (238 ) Reclassification adjustment for OTTI losses excluded from net income(2) 1 0 1 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 825 (118 ) 707 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables 165 (265 ) (100 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends 1,659 (818 ) 841 Cumulative effect of adoption of ASU 2016-01 (2,042 ) 813 212 (1,017 ) Cumulative effect of adoption of ASU 2018-02 2,282 2,282 Balance, June 30, 2018 $ 23,477 $ (755 ) $ (1,078 ) $ (1,159 ) $ (5,491 ) $ 14,994 __________ (1) Includes cash flow hedges. See Note 5 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 | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 and six months ended June 30, 2018 and 2017 , as applicable, were based on 4.9 million and 5.3 million of such awards, respectively, weighted for the period they were outstanding. Stock options and shares related to deferred and long-term compensation programs that are considered antidilutive are excluded from the computation of 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 June 30, 2018 2017 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 0.8 $ 108.61 0.4 $ 110.26 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 0.8 0.4 Six Months Ended June 30, 2018 2017 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 0.5 $ 108.35 0.3 $ 110.32 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 0.3 Antidilutive shares due to net loss available to holders of Common Stock 0.0 0.0 Total antidilutive stock options and shares 0.5 0.6 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. This was equivalent to 5.1 million shares and an initial exchange price per share of Common Stock of $98.78 . The exchange rate is subject to customary anti-dilution adjustments and is accordingly revalued during the fourth quarter of each year. As of June 30, 2018 , the exchange rate is equal to 11.7643 shares of Common Stock per each $1,000 principal amount of surplus notes. This is equivalent to 5.88 million shares and an exchange price per share of Common Stock of $85.00 . 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 the related interest expense, net of tax, is excluded from the numerator, if the overall effect is dilutive. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Segments The Company’s principal operations are comprised of five divisions, which together encompass seven segments, and its Corporate and Other operations. The U.S. Individual Solutions division consists of the Individual Annuities and Individual Life segments. The U.S. Workplace Solutions division consists of the Retirement and Group Insurance segments. The PGIM division consists of the PGIM segment. 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 adjustments; • charges related to realized investment gains (losses), net; • net investment gains (losses) on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes; • divested businesses; 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, 2017. Beginning in the first quarter of 2018, as a result of the adoption of ASU 2016-01 (see Note 2), changes in the fair value of equity securities are included in net income, but are excluded from adjusted operating income. These changes in fair value are classified as related adjustments within “realized investment gains (losses), net, and related adjustments” reconciling item in the tables below. 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 Six Months Ended 2018 2017 2018 2017 (in millions) Adjusted operating income before income taxes by segment: Individual Annuities $ 507 $ 612 $ 1,026 $ 1,080 Individual Life 43 (557 ) 79 (439 ) Total U.S. Individual Solutions division(1) 550 55 1,105 641 Retirement 277 308 594 705 Group Insurance 82 136 137 170 Total U.S. Workplace Solutions division(1) 359 444 731 875 PGIM 254 218 486 414 Total PGIM division(1) 254 218 486 414 International Insurance 784 823 1,640 1,622 Total International Insurance division 784 823 1,640 1,622 Corporate and Other operations (286 ) (312 ) (580 ) (664 ) Total Corporate and Other (286 ) (312 ) (580 ) (664 ) Total segment adjusted operating income before income taxes 1,661 1,228 3,382 2,888 Reconciling items: Realized investment gains (losses), net, and related adjustments 393 (1,377 ) 480 (1,443 ) Charges related to realized investment gains (losses), net (116 ) 698 (139 ) 802 Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net (193 ) 201 (596 ) 245 Change in experience-rated contractholder liabilities due to asset value changes 85 (145 ) 503 (157 ) Divested businesses: Closed Block division (31 ) (18 ) (40 ) 16 Other divested businesses (1,526 ) 35 (1,598 ) 41 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (23 ) (14 ) (49 ) (42 ) Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures $ 250 $ 608 $ 1,943 $ 2,350 __________ (1) Prior period divisional subtotals are presented on a basis consistent with the Company’s new organizational structure effective in the fourth quarter of 2017. Individual segment results and consolidated totals remain unchanged. 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, 2017. 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 Six Months Ended June 30, December 31, 2018 2017 2018 2017 (in millions) Individual Annuities $ 1,266 $ 1,306 $ 2,518 $ 2,521 $ 176,798 $ 183,666 Individual Life 1,451 654 2,876 2,099 84,320 83,985 Total U.S. Individual Solutions division(1) 2,717 1,960 5,394 4,620 261,118 267,651 Retirement 2,988 3,607 5,077 5,544 177,753 183,629 Group Insurance 1,424 1,362 2,840 2,745 40,940 41,575 Total U.S. Workplace Solutions division(1) 4,412 4,969 7,917 8,289 218,693 225,204 PGIM 816 787 1,642 1,543 47,253 49,944 Total PGIM division(1) 816 787 1,642 1,543 47,253 49,944 International Insurance 5,288 5,483 11,328 10,892 217,537 211,647 Total International Insurance division 5,288 5,483 11,328 10,892 217,537 211,647 Corporate and Other operations (190 ) (171 ) (363 ) (309 ) 14,476 14,556 Total Corporate and Other (190 ) (171 ) (363 ) (309 ) 14,476 14,556 Total 13,043 13,028 25,918 25,035 759,077 769,002 Reconciling items: Realized investment gains (losses), net, and related adjustments 393 (1,377 ) 480 (1,443 ) Charges related to realized investment gains (losses), net (92 ) (69 ) (163 ) (91 ) Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net (193 ) 201 (596 ) 245 Divested businesses: Closed Block division 1,388 1,449 2,551 3,006 60,783 63,134 Other divested businesses 143 228 275 409 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (27 ) (19 ) (53 ) (50 ) Total per Unaudited Interim Consolidated Financial Statements $ 14,655 $ 13,441 $ 28,412 $ 27,111 $ 819,860 $ 832,136 __________ (1) Prior period divisional subtotals are presented on a basis consistent with the Company’s new organizational structure effective in the fourth quarter of 2017. Individual segment results and consolidated totals remain unchanged. 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, 2017. Management has determined the intersegment revenues with reference to market rates. Intersegment revenues are eliminated in consolidation in Corporate and Other. The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) PGIM segment intersegment revenues $ 185 $ 181 $ 369 $ 353 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. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments and Guarantees Commercial Mortgage Loan Commitments June 30, December 31, (in millions) Total outstanding mortgage loan commitments $ 3,101 $ 2,772 Portion of commitment where prearrangement to sell to investor exists $ 1,151 $ 435 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) June 30, December 31, (in millions) Expected to be funded from the general account and other operations outside the separate accounts $ 6,507 $ 6,319 Expected to be funded from separate accounts $ 118 $ 141 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 June 30, December 31, (in millions) Indemnification provided to certain securities lending clients $ 5,440 $ 4,619 Fair value of related collateral associated with above indemnifications $ 5,568 $ 4,722 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 5, 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 June 30, December 31, (in millions) Guaranteed value of third-parties’ assets $ 77,495 $ 77,290 Fair value of collateral supporting these assets $ 76,469 $ 77,651 Asset (liability) associated with guarantee, carried at fair value $ 2 $ (1 ) 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 June 30, December 31, (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 1,674 $ 1,609 First-loss exposure portion of above $ 501 $ 483 Accrued liability associated with guarantees $ 15 $ 14 As part of the commercial mortgage activities of the Company’s PGIM 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 $13,168 million and $12,892 million of mortgages subject to these loss-sharing arrangements as of June 30, 2018 and December 31, 2017 , respectively, all of which are collateralized by first priority liens on the underlying multi-family residential properties. As of June 30, 2018 , these mortgages had a weighted-average debt service coverage ratio of 1.88 times and a weighted-average loan-to-value ratio of 60% . As of December 31, 2017 , 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 six months ended June 30, 2018 and 2017 , respectively. Other Guarantees June 30, December 31, (in millions) Other guarantees where amount can be determined $ 84 $ 31 Accrued liability for other guarantees and indemnifications $ 0 $ 0 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 is $31 million for both June 30, 2018 and December 31, 2017 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 potentially material, is disclosed, including matters discussed below. The Company estimates that as of June 30, 2018 , 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. 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, 2017 , and should be read in conjunction with the complete descriptions provided in the Form 10-K. Individual Annuities, Individual Life and Group Insurance Huffman v. The Prudential Insurance Company of America In April 2018, the Third Circuit Court of Appeals denied Prudential Insurance’s request for leave to appeal the class certification decision. Escheatment Litigation Total Asset Recovery Services, LLC v. MetLife, Inc., et al., Prudential Financial, Inc., The Prudential Insurance Company of America, and Prudential Insurance Agency, LLC In May 2018, defendants filed a motion to dismiss the Second Amended Complaint. Other Matters Rosen v. PRIAC, et al. In March 2018, plaintiff’s time to appeal the decision of the Court of Appeals expired. This case is now closed. Residential Mortgage-Backed Securities Trustee Litigation PICA et al. v. Citibank N.A. In March 2018, the federal court granted Citibank’s motion for summary judgment. In April 2018, plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit from the March 2018 decision granting summary judgment. PICA et al. v. Deutsche Bank, et al. In May 2018, plaintiffs’ motion for class certification was denied in the state court action. In June 2018, plaintiffs filed a Notice of Appeal to the California Court of Appeal of the denial of their class certification motion. PICA et al. v. HSBC, et al. In February 2018, the court denied plaintiffs’ motion for class certification and plaintiffs filed a petition with the Second Circuit Court of Appeals seeking permission to appeal the class certification decision. In May 2018, the Second Circuit denied plaintiffs’ request for permission to appeal the denial of their class certification motion. PICA et al. v. U.S. Bank N.A . In February 2018, the federal court entered a stipulated order: (i) dismissing all claims involving three trusts with prejudice; (ii) with respect to twenty trusts, dismissing with prejudice the Trust Indenture Act (“TIA”) claims for lack of standing, and the breach of contract claims without prejudice; and (iii) dismissing without prejudice the TIA and breach of contract claims concerning the four remaining trusts. In February 2018, U.S. Bank filed an appeal from the state court’s order concerning U.S. Bank’s motion to dismiss the amended complaint. In March 2018, plaintiffs filed a cross-appeal of the state court’s order concerning the motion to dismiss. 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 Polici22
Significant Accounting Policies and Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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 4 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, 2017 . Elimination of Gibraltar Life Reporting Lag Prior to January 1, 2018, the Company’s Gibraltar Life Insurance Company, Ltd. (“Gibraltar Life”) consolidated operations used a November 30 fiscal year end for purposes of inclusion in the Company’s Consolidated Financial Statements. The result of this reporting date difference was a one-month reporting lag for Gibraltar Life. As a result, the Company’s unaudited interim consolidated balance sheet as of June 30 previously included the assets and liabilities of Gibraltar Life as of May 31, and the Company’s unaudited interim consolidated income statement previously included Gibraltar Life’s results of operations for the three and six months ended May 31. Effective January 1, 2018, the Company converted its Gibraltar Life operations to a December 31 fiscal year end. This action eliminated the one-month reporting lag so that the reporting dates and periods of financial balances and results of Gibraltar Life are consistent with those of the Company. The establishment of a new fiscal year end for Gibraltar Life is considered a change in accounting principle to a preferable method and requires retrospective application. The Company believes this change in accounting principle is preferable given that it aligns the reporting dates of Prudential Financial and its subsidiaries which allows for more timely and consistent basis of reporting the financial position and results of Gibraltar Life. In order to effect this elimination, the Company restated prior periods’ equity which increased “Retained Earnings” by approximately $167 million as of December 31, 2015, 2016 and 2017. The impact to the Statements of Operations, Statements of Cash Flows, Statements of Comprehensive Income and other balance sheet captions, as a result of the elimination of the reporting lag, was not material for any of the periods presented. |
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. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Investments and Investment Related Lines | Fixed maturities, trading is a new financial statement line item comprised of fixed maturities that are carried at fair value. Prior to the adoption of the standard, these fixed maturities were reported in “Other trading account assets, at fair value.” These fixed maturities are primarily related to assets associated with consolidated variable interest entities for which the Company is the investment manager and the realized and unrealized gains and losses activity are generally offset by changes in the corresponding liabilities. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments is reported in “Net investment income.” Assets supporting experience-rated contractholder liabilities, at fair value is the new title of the financial statement line item formerly titled “Trading account assets supporting insurance liabilities, at fair value.” This financial statement line item includes invested assets that consist of fixed maturities, equity securities, and short-term investments and cash equivalents, that support certain products included in the Retirement and International Insurance segments which are experience-rated, meaning that the investment results associated with these products are expected to ultimately accrue to contractholders. Realized and unrealized gains and losses on these investments are reported in “Other income,” and interest and dividend income from these investments is reported in “Net investment income.” Equity securities, at fair value is the new title of the financial statement line item formerly titled “Equity securities, available for sale, at fair value.” As a result of the adoption of the standard, equity securities previously reported in “Other trading account asset, at fair value” were reclassified to “Equity securities, at fair value.” The retitled financial statement line item is comprised of common stock, mutual fund shares and non-redeemable preferred stock, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income,” and dividend income is reported in “Net investment income” on the ex-dividend date. Prior to the adoption of the standard, for the equity securities reported in the financial statement line item formerly titled “Equity securities, available for sale, at fair value,” the associated net realized gains and losses were included in “Realized investment gains (losses), net” and the associated net unrealized gains and losses were included in “Accumulated other comprehensive income (loss)” (“AOCI”). In addition, with the adoption of the standard, the identification of OTTI for these investments is no longer needed as all of these investments are now measured at fair value with changes in fair value reported in earnings. Other invested assets is the new title of the financial statement line item formerly titled “Other long-term investments.” Investments previously reported in “Other long-term investments” were reclassified to “Other invested assets.” The retitled financial statement line item consists of the Company’s non-coupon investments in Limited Partnerships and Limited Liability Companies (“LPs/LLCs”) (other than operating joint ventures), wholly-owned investment real estate, derivative assets and other investments. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income.” Prior to the adoption of the standard, the Company applied the cost method of accounting for certain LPs/LLCs interests when its partnership interest was considered minor. The standard effectively eliminated the cost method of accounting for these equity investments. The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three-month lag. For the investments reported at fair value with changes in fair value reported in current earnings, the associated realized and unrealized gains and losses are reported in “Other income.” The Company consolidates LPs/LLCs in certain other instances where it is deemed to exercise control, or is considered the primary beneficiary of a variable interest entity. See Note 4 for additional information about VIEs. |
Other Income | Other income includes realized and unrealized gains or losses from investments reported as “Fixed maturities, trading,” “Assets supporting experience-rated contractholder liabilities, at fair value,” “Equity securities, at fair value,” and “Other invested assets” that are measured at fair value. |
Adoption of New Accounting Pronouncements | Adoption of ASU 2014-09 This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), using a modified retrospective method. The core principle of this ASU is that an entity should recognize revenue 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 or services. This core principle is assessed via application of a five-step revenue recognition model that is detailed within the ASU. There was no material impact to the financial statements at the date of adoption of this ASU. The prospective impact primarily affects revenue recognition policies pertaining to the Company’s investment management business. This revenue is classified within the “Asset management and service fees” line item in the Consolidated Statements of Operations. Adoption of this standard has no impact on revenues related to financial instruments and insurance contracts (some of which may be reflected within “Asset management and service fees”) given that these types of revenues were specifically scoped out of this ASU. “Asset management and service fees” principally includes asset-based asset management fees (which continue to be recognized in the period in which the services are performed) and performance-based incentive fees. Under the previously existing guidance, the Company recorded performance-based incentive fee revenue when the contractual terms of the asset management fee arrangement were satisfied such that the performance fee was no longer subject to clawback or contingency. Under the new guidance, the Company will record this revenue when the contractual terms of the asset management fee arrangement have been satisfied and it is probable that a significant reversal in the amount of the fee will not occur. Under this principle the Company will continue to record a deferred performance-based incentive fee liability to the extent it receives cash related to the performance-based incentive fee prior to meeting the revenue recognition criteria delineated above. For the three months and six months ended June 30, 2018, respectively, asset management and service fee revenues included $855 million and $1,717 million of asset-based management fees, $6 million and $11 million of performance-based incentive fees, and $149 million and $308 million of other fees. For the three months and six months ended June 30, 2017, respectively, asset management and service fee revenues included $816 million and $1,612 million of asset-based management fees, $5 million and $12 million of performance-based incentive fees, and $152 million and $300 million of other fees. These fees predominantly relate to investment management activities but also include certain asset-based fees associated with insurance contracts. In accordance with the provisions of the ASU, the comparative information for the prior period was not restated and continues to be reported under the accounting standards in effect for that period. Other ASU adopted during the six months ended June 30, 2018 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force) This ASU addresses diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard provides clarity on the treatment of eight specifically defined types of cash inflows and outflows. January 1, 2018 using the retrospective method (with early adoption permitted provided that all amendments are adopted in the same period). 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 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). 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 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, this ASU was issued following the enactment of the Tax Act of 2017. This ASU allows an entity to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded effects resulting from the Tax Act of 2017. January 1, 2019 with early adoption permitted. The ASU should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act of 2017 is recognized. The Company early adopted the ASU effective January 1, 2018 and elected to apply the ASU in the period of adoption subsequent to recording the adoption impacts of ASU 2016-01 as described above. As a result, the Company reclassified stranded effects resulting from the Tax Act of 2017 by increasing accumulated other comprehensive income and decreasing retained earnings, each by $1,653 million. Stranded effects unrelated to the Tax Act of 2017 are generally released from accumulated other comprehensive income when an entire portfolio of the type of item related to the stranded effect is liquidated, sold or extinguished (i.e., portfolio approach). Adoption of ASU 2016-01 Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available for sale” are to be reported in net income within “Other income” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available for sale” were reported in “Accumulated other comprehensive income.” The impacts of this ASU on the Company’s Consolidated Financial Statements can be categorized as follows: (1) Changes to the presentation within the Consolidated Statements of Financial Position; (2) Cumulative-effect Adjustment Upon Adoption; and (3) Changes to Accounting Policies. Each of these components is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. (1) Changes to the presentation within the Consolidated Statements of Financial Position Because of the fundamental accounting changes as described in section “—(3) Changes to Accounting Policies” below, the Company determined that changes to the presentation of certain balances in the investment section of the Company’s Consolidated Statements of Financial Position were also necessary to maintain clarity and logical presentation. The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification. December 31, 2017 As previously reported Reclassifications As currently reported Consolidated Statement of Financial Position Line Items (1) (2) (3) (4) (in millions) Fixed maturities, available-for-sale, at fair value $ 346,780 $ 346,780 Fixed maturities, held-to-maturity, at amortized cost 2,049 2,049 * Fixed maturities, trading, at fair value 0 3,507 3,507 Trading account assets supporting insurance liabilities, at fair value 22,097 (22,097 ) 0 * Assets supporting experience-rated contractholder liabilities, at fair value 0 22,097 22,097 Other trading account assets, at fair value 5,752 (5,752 ) 0 Equity securities, available-for-sale, at fair value 6,174 (6,174 ) 0 * Equity securities, at fair value 0 6,174 1,155 7,329 Commercial mortgage and other loans 56,045 56,045 Policy loans 11,891 11,891 Other long-term investments 12,308 (12,308 ) 0 * Other invested assets 0 1,065 12,308 13,373 Short-term investments 6,775 25 6,800 Total investments $ 469,871 $ 0 $ 0 $ 0 $ 0 $ 469,871 * — New line item effective January 1, 2018. Strikethrough — Eliminated line item effective January 1, 2018. ________ (1) Retitled “Trading account assets supporting insurance liabilities, at fair value” to “Assets supporting experience-rated contractholder liabilities, at fair value” as equity securities are included in this line item, and they can no longer be described as trading. (2) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale. (3) Eliminated the line item “Other trading account assets, at fair value” and reclassified each component to another line item. (4) Retitled “Other long-term investments” to “Other invested assets.” (2) Cumulative-effect Adjustment Upon Adoption The provisions of ASU 2016-01 require that the Company apply the amendments through a cumulative-effect adjustment to the Consolidated Statements of Financial Position as of the beginning of the fiscal year of adoption. The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018. Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement of Financial Position upon Adoption on January 1, 2018 (in millions) Increase / (Decrease) Other invested assets $ 229 Total assets $ 229 Policyholders’ dividends $ 157 Income taxes 15 Total liabilities 172 Accumulated other comprehensive income (loss) (847 ) Retained earnings 904 Total equity 57 Total liabilities and equity $ 229 (3) Changes to Accounting Policies This section summarizes the changes in our accounting policies resulting from the adoption of ASU 2016-01 as well as an update to the components of the financial statement line items impacted by the Company’s Consolidated Statements of Financial Position presentation changes described above. |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of June 30, 2018 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 either the modified retrospective method with a cumulative effect adjustment as of the earliest period presented or the optional transition method with a cumulative effect adjustment recorded as of the beginning of the fiscal year of adoption. Early adoption is 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. Upon adoption, we expect to apply the optional transition method and record a right-of-use asset and liability on our balance sheet related to existing operating leases. Any new lease arrangements and/or significant modifications entered into subsequent to the adoption date will be accounted for in accordance with the new standard. 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 which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. 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 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This ASU simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test in current U.S. GAAP, which measures a goodwill impairment by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of the goodwill. Under the ASU, a goodwill impairment should be recorded for the amount by which the carrying amount of a reporting unit exceeds its fair value (capped by the total amount of goodwill allocated to the reporting unit). January 1, 2020 using the prospective method (with early adoption permitted). The Company does not expect the adoption of the ASU to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters 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) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. 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 2017-12 , 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) which will include a cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. 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. |
Significant Accounting Polici23
Significant Accounting Policies and Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Adoption of ASU 2016-01 | The table below illustrates these changes by presenting the balances as previously reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and the reclassifications that were made, along with a footnote explanation of each reclassification. December 31, 2017 As previously reported Reclassifications As currently reported Consolidated Statement of Financial Position Line Items (1) (2) (3) (4) (in millions) Fixed maturities, available-for-sale, at fair value $ 346,780 $ 346,780 Fixed maturities, held-to-maturity, at amortized cost 2,049 2,049 * Fixed maturities, trading, at fair value 0 3,507 3,507 Trading account assets supporting insurance liabilities, at fair value 22,097 (22,097 ) 0 * Assets supporting experience-rated contractholder liabilities, at fair value 0 22,097 22,097 Other trading account assets, at fair value 5,752 (5,752 ) 0 Equity securities, available-for-sale, at fair value 6,174 (6,174 ) 0 * Equity securities, at fair value 0 6,174 1,155 7,329 Commercial mortgage and other loans 56,045 56,045 Policy loans 11,891 11,891 Other long-term investments 12,308 (12,308 ) 0 * Other invested assets 0 1,065 12,308 13,373 Short-term investments 6,775 25 6,800 Total investments $ 469,871 $ 0 $ 0 $ 0 $ 0 $ 469,871 * — New line item effective January 1, 2018. Strikethrough — Eliminated line item effective January 1, 2018. ________ (1) Retitled “Trading account assets supporting insurance liabilities, at fair value” to “Assets supporting experience-rated contractholder liabilities, at fair value” as equity securities are included in this line item, and they can no longer be described as trading. (2) Retitled “Equity securities, available-for-sale, at fair value” to “Equity securities, at fair value” as equity securities can no longer be described as available-for-sale. (3) Eliminated the line item “Other trading account assets, at fair value” and reclassified each component to another line item. (4) Retitled “Other long-term investments” to “Other invested assets.” The following table illustrates the impact on the Company’s Consolidated Statement of Financial Position as a result of recording this cumulative-effect adjustment on January 1, 2018. Summary of ASU 2016-01 Transition Impacts on the Consolidated Statement of Financial Position upon Adoption on January 1, 2018 (in millions) Increase / (Decrease) Other invested assets $ 229 Total assets $ 229 Policyholders’ dividends $ 157 Income taxes 15 Total liabilities 172 Accumulated other comprehensive income (loss) (847 ) Retained earnings 904 Total equity 57 Total liabilities and equity $ 229 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | The following tables set forth information relating to fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2018 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 $ 22,471 $ 2,987 $ 613 $ 24,845 $ 0 Obligations of U.S. states and their political subdivisions 9,548 771 40 10,279 0 Foreign government bonds 93,464 15,787 414 108,837 0 U.S. corporate public securities 79,744 4,674 2,058 82,360 (4 ) U.S. corporate private securities(1) 32,171 1,269 556 32,884 (11 ) Foreign corporate public securities 26,949 2,290 355 28,884 (5 ) Foreign corporate private securities 24,099 622 760 23,961 0 Asset-backed securities(2) 12,860 195 24 13,031 (172 ) Commercial mortgage-backed securities 13,093 58 305 12,846 0 Residential mortgage-backed securities(3) 3,149 118 43 3,224 (1 ) Total fixed maturities, available-for-sale(1) $ 317,548 $ 28,771 $ 5,168 $ 341,151 $ (193 ) (1) Excludes notes with amortized cost of $3,666 million (fair value, $3,666 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $409 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 $4,753 million (fair value, $4,754 million ), which have been offset with the associated payables under a netting agreement. (1) Excludes notes with amortized cost of $2,660 million (fair value, $2,660 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $553 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, $4,913 million ), which have been offset with the associated payables under a netting agreement. December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI(4) (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 22,837 $ 3,647 $ 346 $ 26,138 $ 0 Obligations of U.S. states and their political subdivisions 9,366 1,111 6 10,471 0 Foreign government bonds 88,062 15,650 293 103,419 0 U.S. corporate public securities 81,967 8,671 414 90,224 (10 ) U.S. corporate private securities(1) 31,852 2,051 169 33,734 (13 ) Foreign corporate public securities 26,389 3,118 99 29,408 (5 ) Foreign corporate private securities 23,322 1,242 337 24,227 0 Asset-backed securities(2) 11,965 278 10 12,233 (237 ) Commercial mortgage-backed securities 13,134 238 91 13,281 0 Residential mortgage-backed securities(3) 3,491 165 11 3,645 (2 ) Total fixed maturities, available-for-sale(1) $ 312,385 $ 36,171 $ 1,776 $ 346,780 $ (267 ) |
Fixed Maturities, Held-to-maturity Securities | June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 878 $ 271 $ 0 $ 1,149 Foreign corporate public securities 662 67 0 729 Foreign corporate private securities(5) 85 3 0 88 Commercial mortgage-backed securities 0 0 0 0 Residential mortgage-backed securities(3) 395 27 0 422 Total fixed maturities, held-to-maturity(5) $ 2,020 $ 368 $ 0 $ 2,388 __________ (1) Excludes notes with amortized cost of $3,666 million (fair value, $3,666 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $409 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 $4,753 million (fair value, $4,754 million ), which have been offset with the associated payables under a netting agreement. December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 865 $ 265 $ 0 $ 1,130 Foreign corporate public securities 654 82 0 736 Foreign corporate private securities(5) 84 2 0 86 Commercial mortgage-backed securities 0 0 0 0 Residential mortgage-backed securities(3) 446 32 0 478 Total fixed maturities, held-to-maturity(5) $ 2,049 $ 381 $ 0 $ 2,430 __________ (1) Excludes notes with amortized cost of $2,660 million (fair value, $2,660 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $553 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, $4,913 million ), which have been offset with the associated payables under a netting agreement. |
Duration Of Gross Unrealized Losses On Fixed Maturity 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 securities had been in a continuous unrealized loss position, as of the dates indicated: June 30, 2018 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 $ 5,105 $ 125 $ 4,940 $ 488 $ 10,045 $ 613 Obligations of U.S. states and their political subdivisions 1,514 25 252 15 1,766 40 Foreign government bonds 5,039 221 2,737 193 7,776 414 U.S. corporate public securities 36,466 1,451 5,579 607 42,045 2,058 U.S. corporate private securities 14,045 382 2,242 174 16,287 556 Foreign corporate public securities 7,626 242 1,348 113 8,974 355 Foreign corporate private securities 9,568 357 3,161 403 12,729 760 Asset-backed securities 6,825 19 285 5 7,110 24 Commercial mortgage-backed securities 6,705 165 2,057 140 8,762 305 Residential mortgage-backed securities 1,149 29 292 14 1,441 43 Total $ 94,042 $ 3,016 $ 22,893 $ 2,152 $ 116,935 $ 5,168 __________ (1) Includes $13 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 June 30, 2018 . December 31, 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 $ 3,450 $ 28 $ 6,391 $ 318 $ 9,841 $ 346 Obligations of U.S. states and their political subdivisions 44 0 287 6 331 6 Foreign government bonds 4,417 55 2,937 238 7,354 293 U.S. corporate public securities 7,914 110 6,831 304 14,745 414 U.S. corporate private securities 4,596 76 2,009 93 6,605 169 Foreign corporate public securities 2,260 21 1,678 78 3,938 99 Foreign corporate private securities 1,213 20 5,339 317 6,552 337 Asset-backed securities 564 2 366 8 930 10 Commercial mortgage-backed securities 2,593 17 2,212 74 4,805 91 Residential mortgage-backed securities 584 4 286 7 870 11 Total $ 27,635 $ 333 $ 28,336 $ 1,443 $ 55,971 $ 1,776 __________ (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, 2017 . |
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: June 30, 2018 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Fixed maturities: Due in one year or less $ 10,769 $ 11,156 $ 7 $ 7 Due after one year through five years 50,932 53,917 171 176 Due after five years through ten years 63,671 66,989 572 636 Due after ten years(1) 163,074 179,988 875 1,147 Asset-backed securities 12,860 13,031 0 0 Commercial mortgage-backed securities 13,093 12,846 0 0 Residential mortgage-backed securities 3,149 3,224 395 422 Total $ 317,548 $ 341,151 $ 2,020 $ 2,388 __________ (1) Excludes available-for-sale notes with amortized cost of $3,666 million (fair value, $3,666 million ) and held-to-maturity notes with amortized cost of $4,753 million (fair value, $4,754 million ), which have been offset with the associated payables under a netting agreement. |
Sources of Fixed Maturity Proceeds and Related Investment Gains (Losses) as well as Losses on Impairments | The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 9,489 $ 8,157 $ 19,074 $ 15,887 Proceeds from maturities/prepayments 6,553 7,546 11,779 13,420 Gross investment gains from sales and maturities 410 410 784 801 Gross investment losses from sales and maturities (187 ) (135 ) (444 ) (298 ) OTTI recognized in earnings(2) (58 ) (46 ) (97 ) (100 ) Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(3) $ 23 $ 39 $ 59 $ 89 __________ (1) Includes $254 million and $317 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2018 and 2017 , respectively. (2) Excludes the portion of OTTI amounts remaining 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 $3 million and $0 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2018 and 2017 , 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 a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated: Three Months Ended Six Months Ended June 30, 2018 Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in millions) Credit loss impairments: Balance, beginning of period $ 203 $ 319 $ 350 $ 359 New credit loss impairments 0 0 7 7 Additional credit loss impairments on securities previously impaired 0 0 0 1 Increases due to the passage of time on previously recorded credit losses 4 6 4 7 Reductions for securities which matured, paid down, prepaid or were sold during the period (42 ) (155 ) (7 ) (16 ) Reductions for securities impaired to fair value during the period(1) 0 (4 ) (11 ) (14 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (2 ) (3 ) (2 ) (3 ) Balance, end of period $ 163 $ 163 $ 341 $ 341 __________ (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. |
Assets Supporting Experience-Rated Contractholder Liabilities | The following table sets forth the composition of “Assets supporting experience-rated contractholder liabilities,” as of the dates indicated: June 30, 2018 December 31, 2017 Amortized Fair Value Amortized Fair Value (in millions) Short-term investments and cash equivalents $ 340 $ 340 $ 245 $ 245 Fixed maturities: Corporate securities 13,263 13,140 13,816 14,073 Commercial mortgage-backed securities 2,390 2,350 2,294 2,311 Residential mortgage-backed securities(1) 888 867 961 966 Asset-backed securities(2) 1,470 1,493 1,363 1,392 Foreign government bonds 1,063 1,061 1,050 1,057 U.S. government authorities and agencies and obligations of U.S. states 579 619 357 410 Total fixed maturities 19,653 19,530 19,841 20,209 Equity securities 1,367 1,627 1,278 1,643 Total assets supporting experience-rated contractholder liabilities $ 21,360 $ 21,497 $ 21,364 $ 22,097 __________ (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. |
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: June 30, 2018 December 31, 2017 Amortized Fair Value Amortized Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 69,248 $ 81,731 $ 64,628 $ 76,311 Fixed maturities, held-to-maturity 857 1,122 844 1,103 Fixed maturities, trading 23 23 23 23 Assets supporting experience-rated contractholder liabilities 676 686 657 667 Total $ 70,804 $ 83,562 $ 66,152 $ 78,104 June 30, 2018 December 31, 2017 Amortized Fair Value Amortized Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 9,646 $ 10,988 $ 9,425 $ 10,989 Fixed maturities, held-to-maturity 0 0 0 0 Fixed maturities, trading 0 0 0 0 Assets supporting experience-rated contractholder liabilities 15 15 15 15 Total $ 9,661 $ 11,003 $ 9,440 $ 11,004 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2018 December 31, 2017 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 13,435 23.2 % $ 12,670 22.9 % Retail 8,707 15.1 8,543 15.5 Apartments/Multi-Family 16,194 28.0 15,465 28.0 Industrial 10,609 18.3 9,451 17.1 Hospitality 1,965 3.4 2,067 3.7 Other 3,784 6.5 3,888 7.0 Total commercial mortgage loans 54,694 94.5 52,084 94.2 Agricultural property loans 3,206 5.5 3,203 5.8 Total commercial mortgage and agricultural property loans by property type 57,900 100.0 % 55,287 100.0 % Valuation allowance (119 ) (100 ) Total net commercial mortgage and agricultural property loans by property type 57,781 55,187 Other loans: Uncollateralized loans 666 663 Residential property loans 176 196 Other collateralized loans 4 5 Total other loans 846 864 Valuation allowance (5 ) (6 ) Total net other loans 841 858 Total commercial mortgage and other loans(1) $ 58,622 $ 56,045 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2018 and December 31, 2017 , the net carrying value of these loans was $330 million and $593 million , respectively. |
Allowance for Credit 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: June 30, 2018 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 $ 3 $ 1 $ 0 $ 5 $ 106 Addition to (release of) allowance for losses 19 0 0 0 (1 ) 18 Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 0 0 Total ending balance $ 116 $ 3 $ 1 $ 0 $ 4 $ 124 December 31, 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 2 1 (1 ) 0 (1 ) 1 Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 0 0 Total ending balance $ 97 $ 3 $ 1 $ 0 $ 5 $ 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: June 30, 2018 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 $ 20 $ 0 $ 0 $ 0 $ 0 $ 20 Collectively evaluated for impairment 96 3 1 0 4 104 Total ending balance(1) $ 116 $ 3 $ 1 $ 0 $ 4 $ 124 Recorded investment(2): Individually evaluated for impairment $ 70 $ 35 $ 0 $ 0 $ 2 $ 107 Collectively evaluated for impairment 54,624 3,171 176 4 664 58,639 Total ending balance(1) $ 54,694 $ 3,206 $ 176 $ 4 $ 666 $ 58,746 __________ (1) As of June 30, 2018 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 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 $ 7 $ 0 $ 0 $ 0 $ 0 $ 7 Collectively evaluated for impairment 90 3 1 0 5 99 Total ending balance(1) $ 97 $ 3 $ 1 $ 0 $ 5 $ 106 Recorded investment(2): Individually evaluated for impairment $ 75 $ 39 $ 0 $ 0 $ 2 $ 116 Collectively evaluated for impairment 52,009 3,164 196 5 661 56,035 Total ending balance(1) $ 52,084 $ 3,203 $ 196 $ 5 $ 663 $ 56,151 __________ (1) As of December 31, 2017 , 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 June 30, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 29,292 $ 520 $ 281 $ 30,093 60%-69.99% 16,737 579 155 17,471 70%-79.99% 6,047 807 11 6,865 80% or greater 60 182 23 265 Total commercial mortgage loans $ 52,136 $ 2,088 $ 470 $ 54,694 Agricultural property loans June 30, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 2,955 $ 176 $ 0 $ 3,131 60%-69.99% 75 0 0 75 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,030 $ 176 $ 0 $ 3,206 Total commercial mortgage and agricultural property loans June 30, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 32,247 $ 696 $ 281 $ 33,224 60%-69.99% 16,812 579 155 17,546 70%-79.99% 6,047 807 11 6,865 80% or greater 60 182 23 265 Total commercial mortgage and agricultural property loans $ 55,166 $ 2,264 $ 470 $ 57,900 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, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 30,082 $ 639 $ 251 $ 30,972 60%-69.99% 13,658 530 121 14,309 70%-79.99% 5,994 514 29 6,537 80% or greater 93 54 119 266 Total commercial mortgage loans $ 49,827 $ 1,737 $ 520 $ 52,084 Agricultural property loans December 31, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 2,988 $ 170 $ 5 $ 3,163 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 $ 3,028 $ 170 $ 5 $ 3,203 Total commercial mortgage and agricultural property loans December 31, 2017 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 33,070 $ 809 $ 256 $ 34,135 60%-69.99% 13,698 530 121 14,349 70%-79.99% 5,994 514 29 6,537 80% or greater 93 54 119 266 Total commercial mortgage and agricultural property loans $ 52,855 $ 1,907 $ 525 $ 55,287 |
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: June 30, 2018 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 $ 54,694 $ 0 $ 0 $ 0 $ 0 $ 54,694 $ 70 Agricultural property loans 3,190 0 0 16 16 3,206 23 Residential property loans 172 1 1 2 4 176 2 Other collateralized loans 4 0 0 0 0 4 0 Uncollateralized loans 666 0 0 0 0 666 0 Total $ 58,726 $ 1 $ 1 $ 18 $ 20 $ 58,746 $ 95 __________ (1) As of June 30, 2018 , 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, 2017 . December 31, 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 $ 52,084 $ 0 $ 0 $ 0 $ 0 $ 52,084 $ 71 Agricultural property loans 3,201 0 0 2 2 3,203 23 Residential property loans 191 3 0 2 5 196 2 Other collateralized loans 5 0 0 0 0 5 0 Uncollateralized loans 663 0 0 0 0 663 0 Total $ 56,144 $ 3 $ 0 $ 4 $ 7 $ 56,151 $ 96 __________ (1) As of December 31, 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, 2017 . |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2018 December 31, 2017 (in millions) LPs/LLCs: Equity method: Private equity $ 2,927 $ 2,954 Hedge funds 1,021 803 Real estate-related 1,171 972 Subtotal equity method 5,119 4,729 Fair value: Private equity 1,608 1,325 Hedge funds 2,307 2,419 Real estate-related 293 247 Subtotal fair value(1) 4,208 3,991 Total LPs/LLCs 9,327 8,720 Real estate held through direct ownership(2) 2,278 2,409 Derivative instruments 820 1,214 Other(3) 1,034 1,030 Total other invested assets(4) $ 13,459 $ 13,373 _________ (1) As of December 31, 2017 , $ 1,572 million was accounted for using the cost method. (2) As of June 30, 2018 and December 31, 2017 , real estate held through direct ownership had mortgage debt of $751 million and $799 million , respectively. (3) Primarily includes strategic investments made by investment management operations, leveraged leases and member and activity stock held in the Federal Home Loan Banks of New York and Boston. 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, 2017 . (4) Prior period amounts have been reclassified to conform to current period presentation. For additional information, see Note 2. |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Fixed maturities, available-for-sale(1) $ 3,001 $ 2,856 $ 5,955 $ 5,651 Fixed maturities, held-to-maturity(1) 57 54 112 108 Fixed maturities, trading 30 45 61 87 Assets supporting experience-rated contractholder liabilities, at fair value 181 177 372 372 Equity securities, at fair value 59 114 94 204 Commercial mortgage and other loans 594 583 1,163 1,120 Policy loans 156 155 308 307 Other invested assets 163 248 304 580 Short-term investments and cash equivalents 82 46 154 90 Gross investment income 4,323 4,278 8,523 8,519 Less: investment expenses (227 ) (189 ) (429 ) (369 ) Net investment income(2) $ 4,096 $ 4,089 $ 8,094 $ 8,150 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line item as related surplus notes, as conditions are met for right to offset. (2) Prior period amounts have been reclassified to conform to current period presentation. |
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 Six Months Ended 2018 2017 2018 2017 (in millions) Fixed maturities(1) $ 165 $ 229 $ 243 $ 403 Equity securities(2) 0 164 0 420 Commercial mortgage and other loans 5 14 17 28 Investment real estate 60 6 62 12 LPs/LLCs 10 (10 ) 16 (21 ) Derivatives(3) 445 (1,496 ) 773 (1,507 ) Other 0 1 (1 ) 0 Realized investment gains (losses), net $ 685 $ (1,092 ) $ 1,110 $ (665 ) __________ (1) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading. (2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within “Other income.” (3) 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: June 30, December 31, (in millions) Fixed maturity securities, available-for-sale—with OTTI $ 216 $ 286 Fixed maturity securities, available-for-sale—all other 23,387 34,109 Equity securities, available-for-sale(1) 0 2,027 Derivatives designated as cash flow hedges(2) 99 (39 ) Other investments(3) (9 ) 15 Net unrealized gains (losses) on investments $ 23,693 $ 36,398 __________ (1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income.” (2) For more information on cash flow hedges, see Note 5. (3) As of June 30, 2018 , 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: June 30, 2018 December 31, 2017 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) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 8,394 $ 775 $ 9,169 $ 911 $ 7,349 $ 8,260 U.S. corporate public securities 20 0 20 1 0 1 Foreign corporate public securities 0 0 0 0 0 0 Residential mortgage-backed securities 351 0 351 0 139 139 Equity securities 0 0 0 0 0 0 Total securities sold under agreements to repurchase(1) $ 8,765 $ 775 $ 9,540 $ 912 $ 7,488 $ 8,400 __________ (1) The Company did not have any 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: June 30, 2018 December 31, 2017 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) U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 142 $ 161 $ 303 $ 87 $ 35 $ 122 Obligations of U.S. states and their political subdivisions 139 0 139 103 0 103 Foreign government bonds 368 0 368 335 0 335 U.S. corporate public securities 2,749 0 2,749 2,961 0 2,961 Foreign corporate public securities 612 0 612 655 0 655 Residential mortgage-backed securities 0 0 0 0 0 0 Equity securities 136 0 136 178 0 178 Total cash collateral for loaned securities(1) $ 4,146 $ 161 $ 4,307 $ 4,319 $ 35 $ 4,354 __________ (1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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. 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)(2) Other Consolidated VIEs(1) June 30, December 31, June 30, December 31, (in millions) Fixed maturities, available-for-sale $ 75 $ 69 $ 279 $ 275 Fixed maturities, held-to-maturity 85 83 824 810 Fixed maturities, trading 1,071 1,623 0 0 Assets supporting experience-rated contractholder liabilities 0 0 9 9 Equity securities 38 28 0 0 Commercial mortgage and other loans 652 617 0 0 Other invested assets 1,316 1,390 84 97 Cash and cash equivalents 130 164 0 0 Accrued investment income 5 7 4 4 Other assets 445 440 141 150 Total assets of consolidated VIEs $ 3,817 $ 4,421 $ 1,341 $ 1,345 Other liabilities $ 288 $ 433 $ 8 $ 0 Notes issued by consolidated VIEs(3) 937 1,518 0 0 Total liabilities of consolidated VIEs $ 1,225 $ 1,951 $ 8 $ 0 __________ (1) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for additional information. (2) Total assets of consolidated VIEs reflect $1,796 million and $1,716 million as of June 30, 2018 and December 31, 2017 , 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 the Company . As of June 30, 2018 and December 31, 2017 , the maturities of these obligations were greater than five years. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. 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 non-performance risk (“NPR”). This netting impact results in total derivative assets of $812 million and $1,205 million as of June 30, 2018 and December 31, 2017 , respectively, and total derivative liabilities of $676 million and $643 million as of June 30, 2018 and December 31, 2017 , respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position. Primary Underlying Risk /Instrument Type June 30, 2018 December 31, 2017 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 $ 2,925 $ 155 $ (74 ) $ 3,204 $ 271 $ (88 ) Foreign Currency Foreign Currency Forwards 574 8 0 545 0 (8 ) Currency/Interest Rate Foreign Currency Swaps 19,272 946 (645 ) 17,732 766 (735 ) Total Qualifying Hedges $ 22,771 $ 1,109 $ (719 ) $ 21,481 $ 1,037 $ (831 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 150,392 $ 5,891 $ (3,856 ) $ 158,552 $ 7,958 $ (3,509 ) Interest Rate Futures 18,311 2 (2 ) 23,792 25 (1 ) Interest Rate Options 22,424 170 (259 ) 18,456 167 (203 ) Interest Rate Forwards 2,628 10 0 1,498 6 (2 ) Foreign Currency Foreign Currency Forwards 23,197 284 (182 ) 23,905 164 (254 ) Foreign Currency Options 46 0 0 59 0 0 Currency/Interest Rate Foreign Currency Swaps 13,537 740 (449 ) 13,777 822 (414 ) Credit Credit Default Swaps 1,390 18 (6 ) 1,314 21 (5 ) Equity Equity Futures 1,031 1 (9 ) 710 2 (2 ) Equity Options 53,838 535 (534 ) 36,007 588 (364 ) Total Return Swaps 19,712 254 (197 ) 15,558 17 (369 ) Other Other (2) 504 0 0 0 0 0 Synthetic GICs 77,495 2 0 77,290 0 (1 ) Total Non-Qualifying Derivatives $ 384,505 $ 7,907 $ (5,494 ) $ 370,918 $ 9,770 $ (5,124 ) Total Derivatives(1) $ 407,276 $ 9,016 $ (6,213 ) $ 392,399 $ 10,807 $ (5,955 ) __________ (1) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $6,651 million and $8,748 million as of June 30, 2018 and December 31, 2017 , respectively, primarily included in “Future policy benefits.” (2) “Other” primarily includes derivative contracts used to balance the Company’s tail longevity and mortality risk. Under these contracts, the Company’s gain/loss is capped at the notional amount. |
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. June 30, 2018 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) $ 8,933 $ (8,204 ) $ 729 $ (457 ) $ 272 Securities purchased under agreement to resell 2,339 0 2,339 (2,339 ) 0 Total assets $ 11,272 $ (8,204 ) $ 3,068 $ (2,796 ) $ 272 Offsetting of Financial Liabilities: Derivatives(1) $ 6,205 $ (5,537 ) $ 668 $ (452 ) $ 216 Securities sold under agreement to repurchase 9,540 0 9,540 (9,540 ) 0 Total liabilities $ 15,745 $ (5,537 ) $ 10,208 $ (9,992 ) $ 216 December 31, 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 Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 10,710 $ (9,600 ) $ 1,110 $ (625 ) $ 485 Securities purchased under agreement to resell 240 0 240 (240 ) 0 Total assets $ 10,950 $ (9,600 ) $ 1,350 $ (865 ) $ 485 Offsetting of Financial Liabilities: Derivatives(1) $ 5,948 $ (5,312 ) $ 636 $ (588 ) $ 48 Securities sold under agreement to repurchase 8,400 0 8,400 (8,400 ) 0 Total liabilities $ 14,348 $ (5,312 ) $ 9,036 $ (8,988 ) $ 48 __________ (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. June 30, 2018 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) $ 8,933 $ (8,204 ) $ 729 $ (457 ) $ 272 Securities purchased under agreement to resell 2,339 0 2,339 (2,339 ) 0 Total assets $ 11,272 $ (8,204 ) $ 3,068 $ (2,796 ) $ 272 Offsetting of Financial Liabilities: Derivatives(1) $ 6,205 $ (5,537 ) $ 668 $ (452 ) $ 216 Securities sold under agreement to repurchase 9,540 0 9,540 (9,540 ) 0 Total liabilities $ 15,745 $ (5,537 ) $ 10,208 $ (9,992 ) $ 216 December 31, 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 Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 10,710 $ (9,600 ) $ 1,110 $ (625 ) $ 485 Securities purchased under agreement to resell 240 0 240 (240 ) 0 Total assets $ 10,950 $ (9,600 ) $ 1,350 $ (865 ) $ 485 Offsetting of Financial Liabilities: Derivatives(1) $ 5,948 $ (5,312 ) $ 636 $ (588 ) $ 48 Securities sold under agreement to repurchase 8,400 0 8,400 (8,400 ) 0 Total liabilities $ 14,348 $ (5,312 ) $ 9,036 $ (8,988 ) $ 48 __________ (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 June 30, 2018 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 5 $ (2 ) $ 0 $ 0 $ (28 ) $ 0 Currency 1 0 0 0 0 0 Total fair value hedges 6 (2 ) 0 0 (28 ) 0 Cash flow hedges Interest Rate 0 0 0 0 0 (1 ) Currency 0 0 0 0 0 18 Currency/Interest Rate 0 52 209 0 0 704 Total cash flow hedges 0 52 209 0 0 721 Net investment hedges Currency 2 0 0 0 0 5 Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 2 0 0 0 0 5 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (432 ) 0 0 0 0 0 Currency (130 ) 0 (1 ) 0 0 0 Currency/Interest Rate 606 0 2 0 0 0 Credit (1 ) 0 0 0 0 0 Equity (258 ) 0 0 0 0 0 Other (1 ) 0 0 0 0 0 Embedded Derivatives 658 0 0 0 0 0 Total non-qualifying hedges 442 0 1 0 0 0 Total $ 450 $ 50 $ 210 $ 0 $ (28 ) $ 726 Six Months Ended June 30, 2018 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 22 $ (6 ) $ 0 $ 0 $ (111 ) $ 0 Currency 3 0 0 0 0 0 Total fair value hedges 25 (6 ) 0 0 (111 ) 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 6 Currency 0 0 0 0 0 9 Currency/Interest Rate 0 100 118 0 0 123 Total cash flow hedges 0 100 118 (1 ) 0 138 Net investment hedges Currency 0 0 0 0 0 3 Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 3 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,947 ) 0 0 0 0 0 Currency 279 0 0 0 0 0 Currency/Interest Rate 52 0 1 0 0 0 Credit (5 ) 0 0 0 0 0 Equity (248 ) 0 0 0 0 0 Other (1 ) 0 0 0 0 0 Embedded Derivatives 2,637 0 0 0 0 0 Total non-qualifying hedges 767 0 1 0 0 0 Total $ 792 $ 94 $ 119 $ (1 ) $ (111 ) $ 141 Three Months Ended June 30, 2017 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 0 $ (5 ) $ 0 $ 0 $ 0 $ 0 Currency (5 ) 0 0 0 0 0 Total fair value hedges (5 ) (5 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 1 Currency/Interest Rate 0 49 (125 ) 0 0 (340 ) Total cash flow hedges 0 49 (125 ) (1 ) 0 (339 ) Net investment hedges Currency 0 0 0 0 0 (3 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (3 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,110 0 0 0 0 0 Currency (46 ) 0 (2 ) 0 0 0 Currency/Interest Rate (53 ) 0 0 0 0 0 Credit 6 0 0 0 0 0 Equity (453 ) 0 0 0 0 0 Other 0 0 0 0 0 0 Embedded Derivatives (2,059 ) 0 0 0 0 0 Total non-qualifying hedges (1,495 ) 0 (2 ) 0 0 0 Total $ (1,500 ) $ 44 $ (127 ) $ (1 ) $ 0 $ (342 ) _ Six Months Ended June 30, 2017 Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Interest Rate $ 7 $ (11 ) $ 0 $ 0 $ 0 $ 0 Currency (2 ) 0 0 0 0 0 Total fair value hedges 5 (11 ) 0 0 0 0 Cash flow hedges Interest Rate 0 0 0 (1 ) 0 4 Currency/Interest Rate 0 93 (164 ) 0 0 (540 ) Total cash flow hedges 0 93 (164 ) (1 ) 0 (536 ) Net investment hedges Currency 0 0 0 0 0 (7 ) Currency/Interest Rate 0 0 0 0 0 0 Total net investment hedges 0 0 0 0 0 (7 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 964 0 0 0 0 0 Currency (8 ) 0 (1 ) 0 0 0 Currency/Interest Rate (141 ) 0 (2 ) 0 0 0 Credit 16 0 0 0 0 0 Equity (1,157 ) 0 0 0 0 0 Other 0 0 0 0 0 0 Embedded Derivatives (1,182 ) 0 0 0 0 0 Total non-qualifying hedges (1,508 ) 0 (3 ) 0 0 0 Total $ (1,503 ) $ 82 $ (167 ) $ (1 ) $ 0 $ (543 ) _________ (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, 2017 $ (39 ) Net deferred gains/(losses) on cash flow hedges from January 1 to June 30, 2018 385 Amount reclassified into current period earnings (247 ) Balance, June 30, 2018 $ 99 |
Fair Value of Assets and Liab27
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 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 $ 24,778 $ 67 $ $ 24,845 Obligations of U.S. states and their political subdivisions 0 10,274 5 10,279 Foreign government bonds 0 108,700 137 108,837 U.S. corporate public securities 0 82,244 116 82,360 U.S. corporate private securities(2) 0 31,067 1,817 32,884 Foreign corporate public securities 0 28,819 65 28,884 Foreign corporate private securities 0 23,268 693 23,961 Asset-backed securities(3) 0 11,742 1,289 13,031 Commercial mortgage-backed securities 0 12,562 284 12,846 Residential mortgage-backed securities 0 3,133 91 3,224 Subtotal 0 336,587 4,564 341,151 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 420 0 420 Obligations of U.S. states and their political subdivisions 0 199 0 199 Foreign government bonds 0 840 221 1,061 Corporate securities 0 12,652 488 13,140 Asset-backed securities(3) 0 1,386 107 1,493 Commercial mortgage-backed securities 0 2,350 0 2,350 Residential mortgage-backed securities 0 867 0 867 Equity securities 1,356 267 4 1,627 All other(5) 0 39 5 44 Subtotal 1,356 19,020 825 21,201 Fixed maturities trading 0 2,743 173 2,916 Equity securities 5,617 654 783 7,054 Commercial mortgage and other loans 0 330 0 330 Other invested assets(6) 3 9,009 122 (8,204 ) 930 Short-term investments 2,342 1,789 1 4,132 Cash equivalents 1,141 4,423 2 5,566 Other assets 0 3 0 3 Separate account assets(7)(8) 43,335 228,246 1,816 273,397 Total assets $ 53,794 $ 602,804 $ 8,286 $ (8,204 ) $ 656,680 Future policy benefits(9) $ 0 $ 0 $ 6,585 $ $ 6,585 Other liabilities 15 6,204 60 (5,537 ) 742 Notes issued by consolidated VIEs 0 0 609 609 Total liabilities $ 15 $ 6,204 $ 7,254 $ (5,537 ) $ 7,936 As of December 31, 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 $ 26,086 $ 52 $ $ 26,138 Obligations of U.S. states and their political subdivisions 0 10,466 5 10,471 Foreign government bonds 0 103,271 148 103,419 U.S. corporate public securities 0 90,115 109 90,224 U.S. corporate private securities(2) 0 31,845 1,889 33,734 Foreign corporate public securities 0 29,329 79 29,408 Foreign corporate private securities 0 23,528 699 24,227 Asset-backed securities(3) 0 5,629 6,604 12,233 Commercial mortgage-backed securities 0 13,268 13 13,281 Residential mortgage-backed securities 0 3,547 98 3,645 Subtotal 0 337,084 9,696 346,780 Assets supporting experience-rated contractholder liabilities(4): U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 201 0 201 Obligations of U.S. states and their political subdivisions 0 208 0 208 Foreign government bonds 0 834 223 1,057 Corporate securities 0 13,611 462 14,073 Asset-backed securities(3) 0 670 722 1,392 Commercial mortgage-backed securities 0 2,311 0 2,311 Residential mortgage-backed securities 0 965 1 966 Equity securities 1,381 258 4 1,643 All other(5) 25 105 7 137 Subtotal 1,406 19,163 1,419 21,988 Fixed maturities trading(4) 0 3,351 156 3,507 Equity securities(4) 5,978 556 795 7,329 Commercial mortgage and other loans 0 593 0 593 Other invested assets(4)(6) 32 10,768 137 (9,600 ) 1,337 Short-term investments(4) 3,931 1,850 8 5,789 Cash equivalents(4) 1,900 6,398 0 8,298 Other assets 0 1 13 14 Separate account assets(7)(8) 45,397 232,874 2,122 280,393 Total assets $ 58,644 $ 612,638 $ 14,346 $ (9,600 ) $ 676,028 Future policy benefits(9) $ 0 $ 0 $ 8,720 $ $ 8,720 Other liabilities 4 5,946 50 (5,312 ) 688 Notes issued by consolidated VIEs 0 0 1,196 1,196 Total liabilities $ 4 $ 5,946 $ 9,966 $ (5,312 ) $ 10,604 __________ (1) “Netting” amounts represent cash collateral of $2,667 million and $4,288 million as of June 30, 2018 and December 31, 2017 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Excludes notes with both fair value and carrying amount of $3,666 million and $2,660 million , as of June 30, 2018 and December 31, 2017 , 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) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. (5) All other represents cash equivalents and short-term investments. (6) Other invested assets 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 June 30, 2018 and December 31, 2017 , the fair values of such investments were $4,208 million and $1,969 million respectively. (7) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV 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. At June 30, 2018 and December 31, 2017 , the fair value of such investments was $25,261 million and $26,224 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 June 30, 2018 , the net embedded derivative liability position of $6.6 billion includes $1.0 billion of embedded derivatives in an asset position and $7.6 billion of embedded derivatives in a liability position. As of December 31, 2017 , the net embedded derivative liability position of $8.7 billion includes $0.9 billion of embedded derivatives in an asset position and $9.6 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Transferred from Level 1 to Level 2 $ 10 $ 17 $ 180 $ 63 Transferred from Level 2 to Level 1 $ 3 $ 27 $ 10 $ 83 |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of June 30, 2018 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) $ 1,359 Discounted cash flow Discount rate 0.63% - 20.82% 7.20% Decrease Market comparables EBITDA multiples(3) 4.5X 8.0X 6.6X Increase Liquidation Liquidation value 6.40% - 17.80% 15.24% Increase Separate account assets-commercial mortgage loans(4) $ 790 Discounted cash flow Spread 1.05% - 2.73% 1.15% Decrease Liabilities: Future policy benefits(5) $ 6,585 Discounted cash flow Lapse rate(6) 1% - 13% Decrease Spread over LIBOR(7) 0.19% - 1.28% Decrease Utilization rate(8) 54% - 97% Increase Withdrawal rate See table footnote (9) below. Mortality rate(10) 0% - 15% Decrease Equity volatility curve 15% - 22% Increase As of December 31, 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) $ 1,352 Discounted cash flow Discount rate 0.65% - 22% 7.20% Decrease Market comparables EBITDA multiples(3) 7.4X - 7.4X 7.4X Increase Liquidation Liquidation value 13.10% - 25.00% 14.68% Increase Separate account assets-commercial mortgage loans(4) $ 821 Discounted cash flow Spread 1.08% - 2.78% 1.20% Decrease Liabilities: Future policy benefits(5) $ 8,720 Discounted cash flow Lapse rate(6) 1% - 12% Decrease Spread over LIBOR(7) 0.12% - 1.10% 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 __________ (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, assets supporting experience-rated contractholder liabilities and fixed maturities trading. (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 the London Inter-Bank Offered Rate (“LIBOR”) swap curve represents the premium added to the proxy for the risk-free rate (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 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 June 30, 2018 and December 31, 2017 , 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. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. For the three months ended June 30, 2018 , $5,078 million of investments in collateralized loan obligations (“CLOs”) reported as “Asset-backed securities” were transferred from Level 3 to Level 2 as market activity, liquidity and overall observability of valuation inputs of CLOs have increased. 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, 2017 . Three Months Ended June 30, 2018 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 59 $ 5 $ 128 $ 2,735 $ 6,899 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (20 ) 1 Included in other comprehensive income (loss) 0 0 (2 ) (11 ) (12 ) Net investment income 0 0 0 2 2 Purchases 8 0 0 257 441 Sales 0 0 0 (3 ) (278 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (286 ) (668 ) Foreign currency translation 0 0 (4 ) (9 ) (25 ) Other(6) 0 0 0 (22 ) 1 Transfers into Level 3(7) 0 0 15 69 62 Transfers out of Level 3(7) 0 0 0 (21 ) (4,759 ) Fair Value, end of period $ 67 $ 5 $ 137 $ 2,691 $ 1,664 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (21 ) $ 0 Three Months Ended June 30, 2018 Assets Supporting Experience-Rated Contractholder Liabilities Foreign government Corporate securities(2) Structured securities(3) Equity securities All other activity (in millions) Fair Value, beginning of period $ 220 $ 468 $ 664 $ 5 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 2 (11 ) (2 ) 0 0 Net investment income 2 1 0 0 0 Purchases 0 41 16 0 24 Sales 0 0 0 (1 ) 0 Issuances 0 0 0 0 0 Settlements (3 ) (51 ) (129 ) 0 (26 ) Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 40 5 0 0 Transfers out of Level 3(7) 0 0 (447 ) 0 0 Fair Value, end of period $ 221 $ 488 $ 107 $ 4 $ 5 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 2 $ (10 ) $ (1 ) $ 0 $ 0 Three Months Ended June 30, 2018 Fixed maturities trading Equity securities Other invested assets Short-term investments Cash equivalents (in millions) Fair Value, beginning of period $ 204 $ 785 $ 144 $ 10 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 (4 ) 0 0 Other income 4 (12 ) 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 9 35 0 8 9 Sales (38 ) (15 ) (12 ) 0 0 Issuances 0 0 0 0 0 Settlements (3 ) (2 ) 0 (14 ) (7 ) Foreign currency translation (2 ) (15 ) 0 (1 ) 0 Other(6) 0 4 (6 ) (2 ) 0 Transfers into Level 3(7) 1 3 0 0 0 Transfers out of Level 3(7) (3 ) 0 0 0 0 Fair Value, end of period $ 173 $ 783 $ 122 $ 1 $ 2 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (3 ) $ 0 $ 0 Other income $ 0 $ (15 ) $ 0 $ 0 $ 0 Three Months Ended June 30, 2018 Other Separate account assets(4) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 0 $ 2,360 $ (6,981 ) $ (56 ) $ (612 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 683 (18 ) 3 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 22 0 0 0 Net investment income 0 0 0 0 0 Purchases 0 253 0 8 0 Sales 0 (14 ) 0 0 0 Issuances 0 0 (287 ) 0 0 Settlements 0 (140 ) 0 6 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 29 0 0 0 Transfers out of Level 3(7) 0 (694 ) 0 0 0 Fair Value, end of period $ 0 $ 1,816 $ (6,585 ) $ (60 ) $ (609 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 612 $ (18 ) $ 3 Other income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 21 $ 0 $ 0 $ 0 Six Months Ended June 30, 2018(1) Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 52 $ 5 $ 148 $ 2,776 $ 6,716 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (27 ) 14 Included in other comprehensive income (loss) 0 0 (2 ) 5 (42 ) Net investment income 0 0 0 4 4 Purchases 15 0 0 375 1,988 Sales 0 0 0 (4 ) (344 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (455 ) (1,317 ) Foreign currency translation 0 0 (3 ) 3 1 Other(6) 0 0 0 (22 ) 5 Transfers into Level 3(7) 0 0 20 129 1,133 Transfers out of Level 3(7) 0 0 (26 ) (93 ) (6,494 ) Fair Value, end of period $ 67 $ 5 $ 137 $ 2,691 $ 1,664 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (30 ) $ 0 Six Months Ended June 30, 2018(1) Assets Supporting Experience-Rated Contractholder Liabilities Foreign government Corporate securities(2) Structured securities(3) Equity securities All other activity (in millions) Fair Value, beginning of period $ 223 $ 462 $ 722 $ 4 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income (2 ) (10 ) (2 ) 1 0 Net investment income 3 1 0 0 0 Purchases 0 65 19 0 43 Sales 0 0 0 (1 ) 0 Issuances 0 0 0 0 0 Settlements (3 ) (69 ) (142 ) 0 (45 ) Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 40 33 0 0 Transfers out of Level 3(7) 0 (1 ) (523 ) 0 0 Fair Value, end of period $ 221 $ 488 $ 107 $ 4 $ 5 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ (2 ) $ (9 ) $ (1 ) $ 1 $ 0 Six Months Ended June 30, 2018(1) Fixed maturities trading Equity securities Other invested assets Short-term investments Cash equivalents (in millions) Fair Value, beginning of period $ 156 $ 795 $ 137 $ 8 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 4 (1 ) 0 Other income 2 2 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 49 42 1 22 9 Sales (42 ) (32 ) (12 ) 0 0 Issuances 0 0 0 0 0 Settlements (3 ) (39 ) 0 (26 ) (7 ) Foreign currency translation 3 6 0 0 0 Other(6) 0 9 (8 ) (2 ) 0 Transfers into Level 3(7) 12 3 0 0 0 Transfers out of Level 3(7) (5 ) (3 ) 0 0 0 Fair Value, end of period $ 173 $ 783 $ 122 $ 1 $ 2 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 2 $ (1 ) $ 0 Other income $ 4 $ (1 ) $ 0 $ 0 $ 0 Six Months Ended June 30, 2018(1) Other Separate account assets(4) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 13 $ 2,122 $ (8,720 ) $ (50 ) $ (1,196 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (13 ) 0 2,709 (37 ) 0 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 (11 ) 0 0 0 Net investment income 0 0 0 0 0 Purchases 0 490 0 18 0 Sales 0 (22 ) 0 0 0 Issuances 0 0 (574 ) 0 0 Settlements 0 (261 ) 0 8 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 1 587 Transfers into Level 3(7) 0 224 0 0 0 Transfers out of Level 3(7) 0 (726 ) 0 0 0 Fair Value, end of period $ 0 $ 1,816 $ (6,585 ) $ (60 ) $ (609 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ (13 ) $ 0 $ 2,529 $ (36 ) $ 0 Other income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ (5 ) $ 0 $ 0 $ 0 Three Months Ended June 30, 2017 Fixed Maturities Available-For-Sale U.S. U.S. Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 10 $ 5 $ 136 $ 2,111 $ 5,911 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (17 ) 57 Included in other comprehensive income (loss) 0 0 2 (16 ) (13 ) Net investment income 0 0 0 2 2 Purchases 22 0 (1 ) 88 1,659 Sales 0 0 0 (3 ) (385 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (388 ) (994 ) Foreign currency translation 0 0 (4 ) 0 13 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 0 11 28 998 Transfers out of Level 3(7) 0 0 (1 ) (143 ) (504 ) Fair Value, end of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (31 ) $ 0 Three Months Ended June 30, 2017 Assets Supporting Experience-Rated Contractholder Liabilities(5) Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 227 $ 174 $ 676 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 Other income 1 (1 ) 2 Net investment income 2 1 1 Purchases 0 28 28 Sales 0 0 (9 ) Issuances 0 0 0 Settlements (2 ) (55 ) (113 ) Foreign currency translation 0 0 0 Other(6) 0 0 0 Transfers into Level 3(7) 0 1 165 Transfers out of Level 3(7) 0 0 (129 ) Fair Value, end of period $ 228 $ 148 $ 621 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Other income $ 2 $ (2 ) $ 2 Three Months Ended June 30, 2017 Fixed maturities trading(5) Equity Other Short-term Cash equivalents (in millions) Fair Value, beginning of period $ 106 $ 811 $ 79 $ 1 $ 6 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 4 (1 ) 0 0 Other income 5 (1 ) 0 0 0 Included in other comprehensive income (loss) 0 (2 ) 0 0 0 Net investment income 0 0 0 0 0 Purchases 16 10 0 0 0 Sales (7 ) (6 ) 0 0 0 Issuances 0 0 0 0 0 Settlements (2 ) (1 ) 0 0 (6 ) Foreign currency translation 2 5 0 0 0 Other(6) 3 (4 ) (1 ) 0 (4 ) Transfers into Level 3(7) 1 0 0 1 4 Transfers out of Level 3(7) (27 ) 0 0 0 0 Fair Value, end of period $ 97 $ 816 $ 77 $ 2 $ 0 Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 3 $ (2 ) $ 0 $ 0 Other income $ 4 $ 12 $ 0 $ 0 $ 0 Three Months Ended June 30, 2017 Other Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 0 $ 1,975 $ (7,640 ) $ (27 ) $ (1,854 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 30 0 (2,112 ) (6 ) 1 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 22 0 0 0 Net investment income 0 1 0 0 0 Purchases 9 383 0 0 0 Sales 0 (68 ) 0 0 0 Issuances 0 0 (279 ) 0 0 Settlements 0 (175 ) 0 (1 ) 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 63 0 0 0 Transfers out of Level 3(7) 0 (94 ) 0 0 0 Fair Value, end of period $ 39 $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 30 $ 0 $ (2,173 ) $ (4 ) $ 1 Other Income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 16 $ 0 $ 0 $ 0 Six Months Ended June 30, 2017 Fixed Maturities Available-For-Sale U.S. U.S. Foreign Corporate securities(2) Structured securities(3) (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 27 59 Included in other comprehensive income (loss) 0 0 2 (3 ) (13 ) Net investment income 0 0 0 11 5 Purchases 22 0 0 122 2,441 Sales 0 0 0 (144 ) (395 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (447 ) (1,414 ) Foreign currency translation 0 0 1 9 25 Other(6) 10 0 0 (10 ) (1 ) Transfers into Level 3(7) 0 0 18 126 2,645 Transfers out of Level 3(7) 0 0 (2 ) (202 ) (1,163 ) Fair Value, end of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (40 ) $ 0 Six Months Ended June 30, 2017 Assets Supporting Experience-Rated Contractholder Liabilities(5) Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 227 $ 154 $ 290 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 Other income 0 3 2 Net investment income 3 1 1 Purchases 0 59 218 Sales 0 (2 ) (9 ) Issuances 0 0 0 Settlements (2 ) (85 ) (121 ) Foreign currency translation 0 0 0 Other(6) 0 0 0 Transfers into Level 3(7) 0 22 398 Transfers out of Level 3(7) 0 (4 ) (158 ) Fair Value, end of period $ 228 $ 148 $ 621 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Other income $ 0 $ 0 $ 2 Six Months Ended June 30, 2017 Fixed maturities trading(5) Equity Other Short-term Cash equivalents (in millions) Fair Value, beginning of period $ 76 $ 752 $ 8 $ 1 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 4 (1 ) 0 0 Other income 4 20 0 0 0 Included in other comprehensive income (loss) 0 9 0 0 0 Net investment income 0 0 0 0 2 Purchases 31 32 0 0 0 Sales (8 ) (34 ) 0 0 0 Issuances 0 0 0 0 0 Settlements (12 ) (7 ) 0 0 (6 ) Foreign currency translation 3 14 0 0 0 Other(6) 4 (4 ) 70 0 0 Transfers into Level 3(7) 27 31 0 1 4 Transfers out of Level 3(7) (28 ) (1 ) 0 0 0 Fair Value, end of period $ 97 $ 816 $ 77 $ 2 $ 0 Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 3 $ (5 ) $ 0 $ 0 Other income $ 5 $ 33 $ 0 $ 0 $ 0 Six Months Ended June 30, 2017 Other Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 0 $ 1,849 $ (8,238 ) $ (22 ) $ (1,839 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 22 0 (1,237 ) (12 ) (14 ) Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 46 0 0 0 Net investment income 0 1 0 0 0 Purchases 17 538 0 0 0 Sales 0 (72 ) 0 0 0 Issuances 0 0 (554 ) 0 0 Settlements 0 (381 ) 0 0 0 Foreign currency translation 0 0 (2 ) 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 254 0 0 0 Transfers out of Level 3(7) 0 (128 ) 0 0 0 Fair Value, end of period $ 39 $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 22 $ 0 $ (1,365 ) $ (12 ) $ (14 ) Other Income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 40 $ 0 $ 0 $ 0 __________ (1) Current period amounts include one additional month of activity related to the elimination of Gibraltar Life’s reporting lag. (2) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation. (3) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (5) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. (6) Other, for the period ended June 30, 2018 , primarily represents deconsolidation of a VIE and reclassifications of certain assets between reporting categories. Other, for the period ended June 30, 2017 , primarily represents consolidations of VIE and reclassifications of certain assets between reporting categories. (7) 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. (8) 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. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. All transfers are generally reported at the value as of the beginning of the quarter in which transfers occur for any such assets still held at the end of the quarter. For the three months ended June 30, 2018 , $5,078 million of investments in collateralized loan obligations (“CLOs”) reported as “Asset-backed securities” were transferred from Level 3 to Level 2 as market activity, liquidity and overall observability of valuation inputs of CLOs have increased. 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, 2017 . Three Months Ended June 30, 2018 Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 59 $ 5 $ 128 $ 2,735 $ 6,899 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (20 ) 1 Included in other comprehensive income (loss) 0 0 (2 ) (11 ) (12 ) Net investment income 0 0 0 2 2 Purchases 8 0 0 257 441 Sales 0 0 0 (3 ) (278 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (286 ) (668 ) Foreign currency translation 0 0 (4 ) (9 ) (25 ) Other(6) 0 0 0 (22 ) 1 Transfers into Level 3(7) 0 0 15 69 62 Transfers out of Level 3(7) 0 0 0 (21 ) (4,759 ) Fair Value, end of period $ 67 $ 5 $ 137 $ 2,691 $ 1,664 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (21 ) $ 0 Three Months Ended June 30, 2018 Assets Supporting Experience-Rated Contractholder Liabilities Foreign government Corporate securities(2) Structured securities(3) Equity securities All other activity (in millions) Fair Value, beginning of period $ 220 $ 468 $ 664 $ 5 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income 2 (11 ) (2 ) 0 0 Net investment income 2 1 0 0 0 Purchases 0 41 16 0 24 Sales 0 0 0 (1 ) 0 Issuances 0 0 0 0 0 Settlements (3 ) (51 ) (129 ) 0 (26 ) Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 40 5 0 0 Transfers out of Level 3(7) 0 0 (447 ) 0 0 Fair Value, end of period $ 221 $ 488 $ 107 $ 4 $ 5 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ 2 $ (10 ) $ (1 ) $ 0 $ 0 Three Months Ended June 30, 2018 Fixed maturities trading Equity securities Other invested assets Short-term investments Cash equivalents (in millions) Fair Value, beginning of period $ 204 $ 785 $ 144 $ 10 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 (4 ) 0 0 Other income 4 (12 ) 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 9 35 0 8 9 Sales (38 ) (15 ) (12 ) 0 0 Issuances 0 0 0 0 0 Settlements (3 ) (2 ) 0 (14 ) (7 ) Foreign currency translation (2 ) (15 ) 0 (1 ) 0 Other(6) 0 4 (6 ) (2 ) 0 Transfers into Level 3(7) 1 3 0 0 0 Transfers out of Level 3(7) (3 ) 0 0 0 0 Fair Value, end of period $ 173 $ 783 $ 122 $ 1 $ 2 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ (3 ) $ 0 $ 0 Other income $ 0 $ (15 ) $ 0 $ 0 $ 0 Three Months Ended June 30, 2018 Other Separate account assets(4) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 0 $ 2,360 $ (6,981 ) $ (56 ) $ (612 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 683 (18 ) 3 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 22 0 0 0 Net investment income 0 0 0 0 0 Purchases 0 253 0 8 0 Sales 0 (14 ) 0 0 0 Issuances 0 0 (287 ) 0 0 Settlements 0 (140 ) 0 6 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 29 0 0 0 Transfers out of Level 3(7) 0 (694 ) 0 0 0 Fair Value, end of period $ 0 $ 1,816 $ (6,585 ) $ (60 ) $ (609 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 612 $ (18 ) $ 3 Other income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 21 $ 0 $ 0 $ 0 Six Months Ended June 30, 2018(1) Fixed Maturities Available-For-Sale U.S. government U.S. states Foreign government Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 52 $ 5 $ 148 $ 2,776 $ 6,716 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (27 ) 14 Included in other comprehensive income (loss) 0 0 (2 ) 5 (42 ) Net investment income 0 0 0 4 4 Purchases 15 0 0 375 1,988 Sales 0 0 0 (4 ) (344 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (455 ) (1,317 ) Foreign currency translation 0 0 (3 ) 3 1 Other(6) 0 0 0 (22 ) 5 Transfers into Level 3(7) 0 0 20 129 1,133 Transfers out of Level 3(7) 0 0 (26 ) (93 ) (6,494 ) Fair Value, end of period $ 67 $ 5 $ 137 $ 2,691 $ 1,664 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (30 ) $ 0 Six Months Ended June 30, 2018(1) Assets Supporting Experience-Rated Contractholder Liabilities Foreign government Corporate securities(2) Structured securities(3) Equity securities All other activity (in millions) Fair Value, beginning of period $ 223 $ 462 $ 722 $ 4 $ 7 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 0 0 Other income (2 ) (10 ) (2 ) 1 0 Net investment income 3 1 0 0 0 Purchases 0 65 19 0 43 Sales 0 0 0 (1 ) 0 Issuances 0 0 0 0 0 Settlements (3 ) (69 ) (142 ) 0 (45 ) Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 40 33 0 0 Transfers out of Level 3(7) 0 (1 ) (523 ) 0 0 Fair Value, end of period $ 221 $ 488 $ 107 $ 4 $ 5 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ 0 $ 0 Other income $ (2 ) $ (9 ) $ (1 ) $ 1 $ 0 Six Months Ended June 30, 2018(1) Fixed maturities trading Equity securities Other invested assets Short-term investments Cash equivalents (in millions) Fair Value, beginning of period $ 156 $ 795 $ 137 $ 8 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 1 0 4 (1 ) 0 Other income 2 2 0 0 0 Included in other comprehensive income (loss) 0 0 0 0 0 Net investment income 0 0 0 0 0 Purchases 49 42 1 22 9 Sales (42 ) (32 ) (12 ) 0 0 Issuances 0 0 0 0 0 Settlements (3 ) (39 ) 0 (26 ) (7 ) Foreign currency translation 3 6 0 0 0 Other(6) 0 9 (8 ) (2 ) 0 Transfers into Level 3(7) 12 3 0 0 0 Transfers out of Level 3(7) (5 ) (3 ) 0 0 0 Fair Value, end of period $ 173 $ 783 $ 122 $ 1 $ 2 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 2 $ (1 ) $ 0 Other income $ 4 $ (1 ) $ 0 $ 0 $ 0 Six Months Ended June 30, 2018(1) Other Separate account assets(4) Future policy benefits Other liabilities Notes issued by consolidated VIEs (in millions) Fair Value, beginning of period $ 13 $ 2,122 $ (8,720 ) $ (50 ) $ (1,196 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net (13 ) 0 2,709 (37 ) 0 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 (11 ) 0 0 0 Net investment income 0 0 0 0 0 Purchases 0 490 0 18 0 Sales 0 (22 ) 0 0 0 Issuances 0 0 (574 ) 0 0 Settlements 0 (261 ) 0 8 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 1 587 Transfers into Level 3(7) 0 224 0 0 0 Transfers out of Level 3(7) 0 (726 ) 0 0 0 Fair Value, end of period $ 0 $ 1,816 $ (6,585 ) $ (60 ) $ (609 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ (13 ) $ 0 $ 2,529 $ (36 ) $ 0 Other income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ (5 ) $ 0 $ 0 $ 0 Three Months Ended June 30, 2017 Fixed Maturities Available-For-Sale U.S. U.S. Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 10 $ 5 $ 136 $ 2,111 $ 5,911 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 (17 ) 57 Included in other comprehensive income (loss) 0 0 2 (16 ) (13 ) Net investment income 0 0 0 2 2 Purchases 22 0 (1 ) 88 1,659 Sales 0 0 0 (3 ) (385 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (388 ) (994 ) Foreign currency translation 0 0 (4 ) 0 13 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 0 11 28 998 Transfers out of Level 3(7) 0 0 (1 ) (143 ) (504 ) Fair Value, end of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (31 ) $ 0 Three Months Ended June 30, 2017 Assets Supporting Experience-Rated Contractholder Liabilities(5) Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 227 $ 174 $ 676 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 Other income 1 (1 ) 2 Net investment income 2 1 1 Purchases 0 28 28 Sales 0 0 (9 ) Issuances 0 0 0 Settlements (2 ) (55 ) (113 ) Foreign currency translation 0 0 0 Other(6) 0 0 0 Transfers into Level 3(7) 0 1 165 Transfers out of Level 3(7) 0 0 (129 ) Fair Value, end of period $ 228 $ 148 $ 621 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Other income $ 2 $ (2 ) $ 2 Three Months Ended June 30, 2017 Fixed maturities trading(5) Equity Other Short-term Cash equivalents (in millions) Fair Value, beginning of period $ 106 $ 811 $ 79 $ 1 $ 6 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 4 (1 ) 0 0 Other income 5 (1 ) 0 0 0 Included in other comprehensive income (loss) 0 (2 ) 0 0 0 Net investment income 0 0 0 0 0 Purchases 16 10 0 0 0 Sales (7 ) (6 ) 0 0 0 Issuances 0 0 0 0 0 Settlements (2 ) (1 ) 0 0 (6 ) Foreign currency translation 2 5 0 0 0 Other(6) 3 (4 ) (1 ) 0 (4 ) Transfers into Level 3(7) 1 0 0 1 4 Transfers out of Level 3(7) (27 ) 0 0 0 0 Fair Value, end of period $ 97 $ 816 $ 77 $ 2 $ 0 Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 3 $ (2 ) $ 0 $ 0 Other income $ 4 $ 12 $ 0 $ 0 $ 0 Three Months Ended June 30, 2017 Other Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 0 $ 1,975 $ (7,640 ) $ (27 ) $ (1,854 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 30 0 (2,112 ) (6 ) 1 Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 22 0 0 0 Net investment income 0 1 0 0 0 Purchases 9 383 0 0 0 Sales 0 (68 ) 0 0 0 Issuances 0 0 (279 ) 0 0 Settlements 0 (175 ) 0 (1 ) 0 Foreign currency translation 0 0 0 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 63 0 0 0 Transfers out of Level 3(7) 0 (94 ) 0 0 0 Fair Value, end of period $ 39 $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 30 $ 0 $ (2,173 ) $ (4 ) $ 1 Other Income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 16 $ 0 $ 0 $ 0 Six Months Ended June 30, 2017 Fixed Maturities Available-For-Sale U.S. U.S. Foreign Corporate securities(2) Structured securities(3) (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 27 59 Included in other comprehensive income (loss) 0 0 2 (3 ) (13 ) Net investment income 0 0 0 11 5 Purchases 22 0 0 122 2,441 Sales 0 0 0 (144 ) (395 ) Issuances 0 0 0 0 0 Settlements 0 0 0 (447 ) (1,414 ) Foreign currency translation 0 0 1 9 25 Other(6) 10 0 0 (10 ) (1 ) Transfers into Level 3(7) 0 0 18 126 2,645 Transfers out of Level 3(7) 0 0 (2 ) (202 ) (1,163 ) Fair Value, end of period $ 32 $ 5 $ 143 $ 1,662 $ 6,744 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 $ (40 ) $ 0 Six Months Ended June 30, 2017 Assets Supporting Experience-Rated Contractholder Liabilities(5) Foreign Corporate securities(2) Structured securities(3) (in millions) Fair Value, beginning of period $ 227 $ 154 $ 290 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 0 0 Other income 0 3 2 Net investment income 3 1 1 Purchases 0 59 218 Sales 0 (2 ) (9 ) Issuances 0 0 0 Settlements (2 ) (85 ) (121 ) Foreign currency translation 0 0 0 Other(6) 0 0 0 Transfers into Level 3(7) 0 22 398 Transfers out of Level 3(7) 0 (4 ) (158 ) Fair Value, end of period $ 228 $ 148 $ 621 Unrealized gains (losses) for assets still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 0 $ 0 Other income $ 0 $ 0 $ 2 Six Months Ended June 30, 2017 Fixed maturities trading(5) Equity Other Short-term Cash equivalents (in millions) Fair Value, beginning of period $ 76 $ 752 $ 8 $ 1 $ 0 Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 4 (1 ) 0 0 Other income 4 20 0 0 0 Included in other comprehensive income (loss) 0 9 0 0 0 Net investment income 0 0 0 0 2 Purchases 31 32 0 0 0 Sales (8 ) (34 ) 0 0 0 Issuances 0 0 0 0 0 Settlements (12 ) (7 ) 0 0 (6 ) Foreign currency translation 3 14 0 0 0 Other(6) 4 (4 ) 70 0 0 Transfers into Level 3(7) 27 31 0 1 4 Transfers out of Level 3(7) (28 ) (1 ) 0 0 0 Fair Value, end of period $ 97 $ 816 $ 77 $ 2 $ 0 Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 0 $ 3 $ (5 ) $ 0 $ 0 Other income $ 5 $ 33 $ 0 $ 0 $ 0 Six Months Ended June 30, 2017 Other Separate Future Other Notes issued by (in millions) Fair Value, beginning of period $ 0 $ 1,849 $ (8,238 ) $ (22 ) $ (1,839 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 22 0 (1,237 ) (12 ) (14 ) Other Income 0 0 0 0 0 Interest credited to policyholders’ account balances 0 46 0 0 0 Net investment income 0 1 0 0 0 Purchases 17 538 0 0 0 Sales 0 (72 ) 0 0 0 Issuances 0 0 (554 ) 0 0 Settlements 0 (381 ) 0 0 0 Foreign currency translation 0 0 (2 ) 0 0 Other(6) 0 0 0 0 0 Transfers into Level 3(7) 0 254 0 0 0 Transfers out of Level 3(7) 0 (128 ) 0 0 0 Fair Value, end of period $ 39 $ 2,107 $ (10,031 ) $ (34 ) $ (1,853 ) Unrealized gains (losses) for assets/liabilities still held(8): Included in earnings: Realized investment gains (losses), net $ 22 $ 0 $ (1,365 ) $ (12 ) $ (14 ) Other Income $ 0 $ 0 $ 0 $ 0 $ 0 Interest credited to policyholders’ account balances $ 0 $ 40 $ 0 $ 0 $ 0 __________ (1) Current period amounts include one additional month of activity related to the elimination of Gibraltar Life’s reporting lag. (2) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. Prior period amounts were aggregated to conform to current period presentation. (3) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. Prior period amounts were aggregated to conform to current period presentation. (4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (5) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. (6) Other, for the period ended June 30, 2018 , primarily represents deconsolidation of a VIE and reclassifications of certain assets between reporting categories. Other, for the period ended June 30, 2017 , primarily represents consolidations of VIE and reclassifications of certain assets between reporting categories. (7) 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. (8) 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 risk. These tables include NPR and exclude embedded derivatives and associated reinsurance recoverables. The derivative assets and liabilities shown below are included in “Other invested assets” 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 June 30, 2018 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative Assets: Interest Rate $ 2 $ 6,225 $ 2 $ $ 6,229 Currency 0 293 0 293 Credit 0 18 0 18 Currency/Interest Rate 0 1,686 0 1,686 Equity 1 787 2 790 Other 0 0 0 0 Netting(1) (8,204 ) (8,204 ) Total derivative assets $ 3 $ 9,009 $ 4 $ (8,204 ) $ 812 Derivative Liabilities: Interest Rate $ 2 $ 4,189 $ 0 $ $ 4,191 Currency 0 181 0 181 Credit 0 6 0 6 Currency/Interest Rate 0 1,095 0 1,095 Equity 9 731 0 740 Other 0 0 0 0 Netting(1) (5,537 ) (5,537 ) Total derivative liabilities $ 11 $ 6,202 $ 0 $ (5,537 ) $ 676 As of December 31, 2017 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative Assets: Interest Rate $ 25 $ 8,399 $ 0 $ $ 8,424 Currency 0 165 0 165 Credit 0 21 0 21 Currency/Interest Rate 0 1,588 0 1,588 Equity 2 595 10 607 Other 0 0 0 0 Netting(1) (9,600 ) (9,600 ) Total derivative assets $ 27 $ 10,768 $ 10 $ (9,600 ) $ 1,205 Derivative Liabilities: Interest Rate $ 1 $ 3,800 $ 3 $ $ 3,804 Currency 0 262 0 262 Credit 0 5 0 5 Currency/Interest Rate 0 1,149 0 1,149 Equity 2 733 0 735 Other 0 0 0 0 Netting(1) (5,312 ) (5,312 ) Total derivative liabilities $ 3 $ 5,949 $ 3 $ (5,312 ) $ 643 __________ (1) “Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting agreement. |
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 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. Three Months Ended Six Months Ended Net Derivative- Equity Net Derivative- Interest Rate Net Derivative- Equity Net Derivative- Interest Rate (in millions) Fair Value, beginning of period $ 6 $ 6 $ 10 $ (3 ) Total gains (losses) (realized/unrealized): Included in earnings: Realized investment gains (losses), net 0 (4 ) 1 5 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 Foreign currency translation 0 0 0 0 Other(1) (4 ) 0 (9 ) 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 $ 2 $ 2 $ 2 $ 2 Unrealized gains (losses) for assets still held: Included in earnings: Realized investment gains (losses), net $ 0 $ 4 $ 0 $ 5 Other income $ 0 $ 0 $ 0 $ 0 Three Months Ended Six Months Ended Net Derivative- Equity Net Derivative- Interest Rate Net Derivative- Equity Net Derivative- 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 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 0 0 0 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 $ 3 $ 0 $ 3 Unrealized gains (losses) for assets still held: Included in earnings: Realized investment gains (losses), net $ 0 $ (1 ) $ 0 $ (1 ) Other income $ 0 $ 0 $ 0 $ 0 __________ (1) Represents conversion of warrants to equity shares. (2) 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 positions still held at the end of the quarter. |
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 a triggering event (e.g., an evidence of impairment). Assets included in the table are those that were impaired 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 Six Months Ended 2018 2017 2018 2017 (in millions) Realized investment gains (losses) net: Commercial mortgage loans(1) $ (13 ) $ 0 $ (13 ) $ 0 Mortgage servicing rights(2) $ 2 $ 4 $ 4 $ 6 Cost method investments(3) $ 0 $ (7 ) $ 0 $ (17 ) June 30, 2018 December 31, 2017 (in millions) Carrying value after measurement as of period end: Commercial mortgage loans(1) $ 51 $ 64 Mortgage servicing rights(2) $ 68 $ 60 Cost method investments(3) $ 0 $ 150 __________ (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) Due to the adoption of ASU 2016-01 effective January 1, 2018, LPs/LLCs (formerly accounted for under the cost method) are carried at fair value at each reporting date with changes in fair value reported in “Other income.” Therefore, these assets are no longer reported in this table because they are no longer carried at fair value on a non-recurring basis. |
Fair Value, Option | The following tables present information regarding assets and liabilities where the fair value option has been elected. Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Assets: Other invested assets(2): Changes in fair value $ 0 $ 23 $ 0 $ 77 Liabilities: Notes issued by consolidated VIEs: Changes in fair value $ (3 ) $ (1 ) $ 0 $ 14 Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Commercial mortgage and other loans: Interest income $ 4 $ 3 $ 6 $ 5 Notes issued by consolidated VIEs: Interest expense $ 9 $ 22 $ 18 $ 44 June 30, 2018 December 31, 2017 (in millions) Commercial mortgage and other loans(1): Fair value as of period end $ 330 $ 593 Aggregate contractual principal as of period end $ 327 $ 582 Other invested assets(2): Fair value as of period end $ 0 $ 1,945 Notes issued by consolidated VIEs: Fair value as of period end $ 609 $ 1,196 Aggregate contractual principal as of period end $ 632 $ 1,233 __________ (1) As of June 30, 2018 , 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. (2) Effective January 1, 2018, LPs/LLCs are reported at fair value due to adoption of ASU 2016-01, which in prior period were reported at fair value option. See Note 2 for details. |
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. June 30, 2018(1) Fair Value Carrying Amount(2) Level 1 Level 2 Level 3 Total Total (in millions) Assets: Fixed maturities, held-to-maturity(3) $ 0 $ 1,481 $ 907 $ 2,388 $ 2,020 Assets supporting experience-rated contractholders liabilities 111 185 0 296 296 Commercial mortgage and other loans 0 128 57,928 58,056 58,292 Policy loans 0 0 11,935 11,935 11,935 Other invested assets 0 49 0 49 49 Short-term investments 1,573 23 0 1,596 1,596 Cash and cash equivalents 7,189 2,163 0 9,352 9,352 Accrued investment income 0 3,235 0 3,235 3,235 Other assets 143 2,538 551 3,232 3,232 Total assets $ 9,016 $ 9,802 $ 71,321 $ 90,139 $ 90,007 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 31,938 $ 66,840 $ 98,778 $ 99,783 Securities sold under agreements to repurchase 0 9,540 0 9,540 9,540 Cash collateral for loaned securities 0 4,307 0 4,307 4,307 Short-term debt 0 2,047 41 2,088 2,056 Long-term debt(5) 1,310 14,852 1,822 17,984 16,732 Notes issued by consolidated VIEs 0 0 328 328 328 Other liabilities 0 6,359 579 6,938 6,938 Separate account liabilities—investment contracts 0 72,450 26,148 98,598 98,598 Total liabilities $ 1,310 $ 141,493 $ 95,758 $ 238,561 $ 238,282 December 31, 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 $ 1,484 $ 946 $ 2,430 $ 2,049 Assets supporting experience-rated contractholders liabilities(4) 58 51 0 109 109 Commercial mortgage and other loans 0 129 56,619 56,748 55,452 Policy loans 1 0 11,890 11,891 11,891 Short-term investments 989 22 0 1,011 1,011 Cash and cash equivalents 5,997 195 0 6,192 6,192 Accrued investment income 0 3,325 0 3,325 3,325 Other assets 45 2,385 685 3,115 3,115 Total assets $ 7,090 $ 7,591 $ 70,140 $ 84,821 $ 83,144 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 33,045 $ 67,141 $ 100,186 $ 99,948 Securities sold under agreements to repurchase 0 8,400 0 8,400 8,400 Cash collateral for loaned securities 0 4,354 0 4,354 4,354 Short-term debt 0 1,384 0 1,384 1,380 Long-term debt(5) 1,296 16,369 2,095 19,760 17,172 Notes issued by consolidated VIEs 0 0 322 322 322 Other liabilities 0 6,002 715 6,717 6,717 Separate account liabilities—investment contracts 0 71,336 30,490 101,826 101,826 Total liabilities $ 1,296 $ 140,890 $ 100,763 $ 242,949 $ 240,119 __________ (1) The information presented as of December 31, 2017 , excludes certain hedge funds, private equity funds and other funds that were accounted for using the cost method and for which the fair value was measured at NAV per share (or its equivalent) as a practical expedient. The fair value and the carrying value of these cost method investments were $1,795 million and $1,571 million , respectively. Due to the adoption of ASU 2016-01 effective January 1, 2018, these assets are carried at fair value at each reporting date with changes in fair value reported in “Other income.” Therefore, as of June 30, 2018 , these assets are excluded from this table but are reported in the fair value recurring measurement table. (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 are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. (3) As of June 30, 2018 , excludes notes with fair value and carrying amount of $4,754 million and $4,753 million , respectively. As of December 31, 2017 , excludes notes with fair value and carrying amount of $4,913 million and $4,627 million , respectively. These amounts have been offset with the associated payables under a netting agreement. (4) Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. (5) As of June 30, 2018 , includes notes with fair value and carrying amount of $8,420 million and $8,419 million , respectively. As of December 31, 2017 , includes notes with fair value and carrying amount of $7,577 million and $7,287 million , respectively. These amounts have been offset with the associated receivables under a netting agreement. |
Closed Block (Tables)
Closed Block (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, December 31, (in millions) Closed Block liabilities Future policy benefits $ 48,518 $ 48,870 Policyholders’ dividends payable 835 829 Policyholders’ dividend obligation 3,855 5,446 Policyholders’ account balances 5,097 5,146 Other Closed Block liabilities 4,712 5,070 Total Closed Block liabilities 63,017 65,361 Closed Block assets Fixed maturities, available-for-sale, at fair value 39,170 41,043 Fixed maturities, trading, at fair value(1) 190 339 Equity securities, at fair value(1) 2,149 2,340 Commercial mortgage and other loans 8,898 9,017 Policy loans 4,469 4,543 Other invested assets(1) 3,335 3,159 Short-term investments 364 632 Total investments 58,575 61,073 Cash and cash equivalents 803 789 Accrued investment income 469 474 Other Closed Block assets 424 249 Total Closed Block assets 60,271 62,585 Excess of reported Closed Block liabilities over Closed Block assets 2,746 2,776 Portion of above representing accumulated other comprehensive income: Net unrealized investment gains (losses) 1,132 3,627 Allocated to policyholder dividend obligation (1,170 ) (3,656 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,708 $ 2,747 |
Schedule of Closed Block Dividend Obligation | Information regarding the policyholder dividend obligation is as follows: Six Months Ended (in millions) Balance, December 31, 2017 $ 5,446 Cumulative-effect adjustment from the adoption of ASU 2016-01(1) 157 Impact from earnings allocable to policyholder dividend obligation (75 ) Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation (1,673 ) Balance, June 30, 2018 $ 3,855 __________ (1) See Note 2 for details. |
Schedule of Closed Block Revenues Benefits Expenses | Closed Block revenues and benefits and expenses are as follows for the periods indicated: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) Revenues Premiums $ 602 $ 670 $ 1,152 $ 1,275 Net investment income 593 676 1,190 1,326 Realized investment gains (losses), net 110 81 108 354 Other income (loss) 85 26 107 60 Total Closed Block revenues 1,390 1,453 2,557 3,015 Benefits and Expenses Policyholders’ benefits 778 855 1,506 1,644 Interest credited to policyholders’ account balances 33 32 66 65 Dividends to policyholders 508 473 816 1,066 General and administrative expenses 92 97 184 194 Total Closed Block benefits and expenses 1,411 1,457 2,572 2,969 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes (21 ) (4 ) (15 ) 46 Income tax expense (benefit) (36 ) (17 ) (45 ) 20 Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 15 $ 13 $ 30 $ 26 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Cumulative Impact of the Tax Act of 2017 | The cumulative financial statement impact related to the Tax Act of 2017 as of June 30, 2018 was as follows: Twelve Months Ended December 31, 2017 Six Months Ended June 30, 2018 Total (in millions) Deferred tax revaluation from 35% to 21% $ (1,592 ) $ (3 ) $ (1,595 ) Adoption of modified territorial system (1,785 ) (24 ) (1,809 ) Deemed repatriation 497 0 497 Total provision for income tax expense (benefit) $ (2,880 ) $ (27 ) $ (2,907 ) |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The table below presents the Company’s short-term debt as of the dates indicated: June 30, 2018 December 31, 2017 ($ in millions) Commercial paper: Prudential Financial $ 19 $ 50 Prudential Funding, LLC 516 500 Subtotal commercial paper 535 550 Current portion of long-term debt(1) 1,521 830 Total short-term debt(2) $ 2,056 $ 1,380 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 122 $ 277 Daily average commercial paper outstanding $ 1,389 $ 1,110 Weighted average maturity of outstanding commercial paper, in days 16 22 Weighted average interest rate on outstanding short-term debt(3) 1.65 % 0.99 % __________ (1) Includes $41 million that has recourse only to real estate investment property at June 30, 2018. (2) Includes Prudential Financial debt of $1,499 million and $880 million at June 30, 2018 and December 31, 2017 , 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: June 30, 2018 December 31, 2017 (in millions) Fixed-rate notes: Surplus notes $ 841 $ 840 Surplus notes subject to set-off arrangements(1) 6,319 5,187 Senior notes 9,126 8,882 Mortgage debt(2) 240 226 Floating-rate notes: Surplus notes 0 0 Surplus notes subject to set-off arrangements(1) 2,100 2,100 Senior notes 29 29 Mortgage debt(3) 470 573 Junior subordinated notes(4) 6,026 6,622 Subtotal 25,151 24,459 Less: assets under set-off arrangements(1) 8,419 7,287 Total long-term debt(5) $ 16,732 $ 17,172 __________ (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 $105 million and $107 million of debt denominated in foreign currency at June 30, 2018 and December 31, 2017 , respectively. (3) Includes $213 million and $245 million of debt denominated in foreign currency at June 30, 2018 and December 31, 2017 , respectively. (4) Includes Prudential Financial debt of $5,970 million and subsidiary debt of $56 million denominated in foreign currency at June 30, 2018. (5) Includes Prudential Financial debt of $14,953 million and $15,304 million at June 30, 2018 and December 31, 2017 , respective |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 (in millions) Components of net periodic (benefit) cost Service cost $ 79 $ 71 $ 6 $ 5 Interest cost 112 119 17 21 Expected return on plan assets (205 ) (195 ) (27 ) (26 ) Amortization of prior service cost (1 ) (1 ) 0 0 Amortization of actuarial (gain) loss, net 54 48 5 9 Settlements 0 0 0 0 Special termination benefits 1 0 0 0 Net periodic (benefit) cost $ 40 $ 42 $ 1 $ 9 Six Months Ended June 30, Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 (in millions) Components of net periodic (benefit) cost Service cost $ 158 $ 142 $ 12 $ 10 Interest cost 224 238 35 41 Expected return on plan assets (409 ) (390 ) (54 ) (51 ) Amortization of prior service cost (2 ) (2 ) 0 0 Amortization of actuarial (gain) loss, net 107 96 9 18 Settlements 0 0 0 0 Special termination benefits 1 3 0 0 Net periodic (benefit) cost $ 79 $ 87 $ 2 $ 18 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 660.1 237.5 422.6 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 7.0 (7.0 ) Stock-based compensation programs(1) 0.0 (2.1 ) 2.1 Balance, June 30, 2018 660.1 242.4 417.7 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of “Accumulated other comprehensive income (loss) attributable to Prudential Financial, Inc.” for the six months ended June 30, 2018 and 2017 , 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, 2017 $ (269 ) $ 19,968 $ (2,625 ) $ 17,074 Change in OCI before reclassifications (44 ) (7,502 ) 15 (7,531 ) Amounts reclassified from AOCI 0 (490 ) 114 (376 ) Income tax benefit (expense) 6 1,704 (28 ) 1,682 Cumulative effect of adoption of ASU 2016-01 0 (847 ) 0 (847 ) Cumulative effect of adoption of ASU 2018-02 (231 ) 2,282 (398 ) 1,653 Balance, June 30, 2018 $ (538 ) $ 15,115 $ (2,922 ) $ 11,655 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 614 2,502 (13 ) 3,103 Amounts reclassified from AOCI 2 (820 ) 112 (706 ) Income tax benefit (expense) (77 ) (544 ) (35 ) (656 ) Balance, June 30, 2017 $ (434 ) $ 19,309 $ (2,513 ) $ 16,362 __________ (1) Includes cash flow hedges of $99 million and $(39) million as of June 30, 2018 and December 31, 2017 , respectively, and $780 million and $1,316 million as of June 30, 2017 and December 31, 2016 , respectively. |
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended Affected line item in Consolidated Statements of Operations 2018 2017 2018 2017 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustments $ 0 $ (2 ) $ 0 $ (3 ) Realized investment gains (losses), net Foreign currency translation adjustments 0 1 0 1 Other income Total foreign currency translation adjustment 0 (1 ) 0 (2 ) Net unrealized investment gains (losses): Cash flow hedges—Interest rate 2 (1 ) 2 (2 ) (3) Cash flow hedges—Currency 3 0 0 0 (3) Cash flow hedges—Currency/Interest rate 294 (62 ) 245 (1 ) (3) Net unrealized investment gains (losses) on available-for-sale securities 165 393 243 823 Total net unrealized investment gains (losses) 464 330 490 820 (4) Amortization of defined benefit pension items: Prior service cost 1 1 2 2 (5) Actuarial gain (loss) (59 ) (57 ) (116 ) (114 ) (5) Total amortization of defined benefit pension items (58 ) (56 ) (114 ) (112 ) Total reclassifications for the period $ 406 $ 273 $ 376 $ 706 __________ (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 5 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, 2017 $ 286 $ (2 ) $ 3 $ (46 ) $ (94 ) $ 147 Net investment gains (losses) on investments arising during the period (13 ) 6 (7 ) Reclassification adjustment for (gains) losses included in net income (56 ) 25 (31 ) Reclassification adjustment for OTTI losses excluded from net income(1) (1 ) 0 (1 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 0 0 0 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables 0 0 0 Impact of net unrealized investment (gains) losses on policyholders’ dividends 22 (9 ) 13 Balance, June 30, 2018 $ 216 $ (2 ) $ 3 $ (24 ) $ (72 ) $ 121 __________ (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, 2017 $ 36,112 $ (1,580 ) $ (1,243 ) $ (3,631 ) $ (9,837 ) $ 19,821 Net investment gains (losses) on investments arising during the period (10,160 ) 2,857 (7,303 ) Reclassification adjustment for (gains) losses included in net income (434 ) 196 (238 ) Reclassification adjustment for OTTI losses excluded from net income(2) 1 0 1 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 825 (118 ) 707 Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables 165 (265 ) (100 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends 1,659 (818 ) 841 Cumulative effect of adoption of ASU 2016-01 (2,042 ) 813 212 (1,017 ) Cumulative effect of adoption of ASU 2018-02 2,282 2,282 Balance, June 30, 2018 $ 23,477 $ (755 ) $ (1,078 ) $ (1,159 ) $ (5,491 ) $ 14,994 __________ (1) Includes cash flow hedges. See Note 5 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) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | Six Months Ended June 30, 2018 2017 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) $ 1,564 $ 1,868 Less: Income (loss) attributable to noncontrolling interests 4 8 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 18 23 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 1,542 420.8 $ 3.66 $ 1,837 429.1 $ 4.28 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 18 $ 23 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 18 23 Stock options 1.7 2.2 Deferred and long-term compensation programs 1.1 1.0 Exchangeable Surplus Notes 11 5.9 9 5.8 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 1,553 429.5 $ 3.62 $ 1,846 438.1 $ 4.21 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 June 30, 2018 2017 Income Weighted Per Share Income Weighted Per Share (in millions, except per share amounts) Basic earnings per share Net income (loss) $ 200 $ 496 Less: Income (loss) attributable to noncontrolling interests 3 5 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 4 6 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 193 419.5 $ 0.46 $ 485 428.3 $ 1.13 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 4 $ 6 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 4 7 Stock options 1.5 2.1 Deferred and long-term compensation programs 1.1 1.0 Exchangeable Surplus Notes 6 5.9 5 5.8 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 199 428.0 $ 0.46 $ 489 437.2 $ 1.12 Six Months Ended June 30, 2018 2017 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) $ 1,564 $ 1,868 Less: Income (loss) attributable to noncontrolling interests 4 8 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 18 23 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 1,542 420.8 $ 3.66 $ 1,837 429.1 $ 4.28 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 18 $ 23 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 18 23 Stock options 1.7 2.2 Deferred and long-term compensation programs 1.1 1.0 Exchangeable Surplus Notes 11 5.9 9 5.8 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 1,553 429.5 $ 3.62 $ 1,846 438.1 $ 4.21 |
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 June 30, 2018 2017 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 0.8 $ 108.61 0.4 $ 110.26 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 0.8 0.4 Six Months Ended June 30, 2018 2017 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 0.5 $ 108.35 0.3 $ 110.32 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 0.3 Antidilutive shares due to net loss available to holders of Common Stock 0.0 0.0 Total antidilutive stock options and shares 0.5 0.6 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended 2018 2017 2018 2017 (in millions) Adjusted operating income before income taxes by segment: Individual Annuities $ 507 $ 612 $ 1,026 $ 1,080 Individual Life 43 (557 ) 79 (439 ) Total U.S. Individual Solutions division(1) 550 55 1,105 641 Retirement 277 308 594 705 Group Insurance 82 136 137 170 Total U.S. Workplace Solutions division(1) 359 444 731 875 PGIM 254 218 486 414 Total PGIM division(1) 254 218 486 414 International Insurance 784 823 1,640 1,622 Total International Insurance division 784 823 1,640 1,622 Corporate and Other operations (286 ) (312 ) (580 ) (664 ) Total Corporate and Other (286 ) (312 ) (580 ) (664 ) Total segment adjusted operating income before income taxes 1,661 1,228 3,382 2,888 Reconciling items: Realized investment gains (losses), net, and related adjustments 393 (1,377 ) 480 (1,443 ) Charges related to realized investment gains (losses), net (116 ) 698 (139 ) 802 Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net (193 ) 201 (596 ) 245 Change in experience-rated contractholder liabilities due to asset value changes 85 (145 ) 503 (157 ) Divested businesses: Closed Block division (31 ) (18 ) (40 ) 16 Other divested businesses (1,526 ) 35 (1,598 ) 41 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (23 ) (14 ) (49 ) (42 ) Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures $ 250 $ 608 $ 1,943 $ 2,350 __________ (1) Prior period divisional subtotals are presented on a basis consistent with the Company’s new organizational structure effective in the fourth quarter of 2017. Individual segment results and consolidated totals remain unchanged. 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, 2017. |
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 Six Months Ended June 30, December 31, 2018 2017 2018 2017 (in millions) Individual Annuities $ 1,266 $ 1,306 $ 2,518 $ 2,521 $ 176,798 $ 183,666 Individual Life 1,451 654 2,876 2,099 84,320 83,985 Total U.S. Individual Solutions division(1) 2,717 1,960 5,394 4,620 261,118 267,651 Retirement 2,988 3,607 5,077 5,544 177,753 183,629 Group Insurance 1,424 1,362 2,840 2,745 40,940 41,575 Total U.S. Workplace Solutions division(1) 4,412 4,969 7,917 8,289 218,693 225,204 PGIM 816 787 1,642 1,543 47,253 49,944 Total PGIM division(1) 816 787 1,642 1,543 47,253 49,944 International Insurance 5,288 5,483 11,328 10,892 217,537 211,647 Total International Insurance division 5,288 5,483 11,328 10,892 217,537 211,647 Corporate and Other operations (190 ) (171 ) (363 ) (309 ) 14,476 14,556 Total Corporate and Other (190 ) (171 ) (363 ) (309 ) 14,476 14,556 Total 13,043 13,028 25,918 25,035 759,077 769,002 Reconciling items: Realized investment gains (losses), net, and related adjustments 393 (1,377 ) 480 (1,443 ) Charges related to realized investment gains (losses), net (92 ) (69 ) (163 ) (91 ) Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net (193 ) 201 (596 ) 245 Divested businesses: Closed Block division 1,388 1,449 2,551 3,006 60,783 63,134 Other divested businesses 143 228 275 409 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (27 ) (19 ) (53 ) (50 ) Total per Unaudited Interim Consolidated Financial Statements $ 14,655 $ 13,441 $ 28,412 $ 27,111 $ 819,860 $ 832,136 __________ (1) Prior period divisional subtotals are presented on a basis consistent with the Company’s new organizational structure effective in the fourth quarter of 2017. Individual segment results and consolidated totals remain unchanged. 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, 2017. |
Schedule of Intersegment Revenues | The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: Three Months Ended Six Months Ended 2018 2017 2018 2017 (in millions) PGIM segment intersegment revenues $ 185 $ 181 $ 369 $ 353 |
Commitments and Contingent Li35
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments 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: June 30, 2018 December 31, 2017 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 13,435 23.2 % $ 12,670 22.9 % Retail 8,707 15.1 8,543 15.5 Apartments/Multi-Family 16,194 28.0 15,465 28.0 Industrial 10,609 18.3 9,451 17.1 Hospitality 1,965 3.4 2,067 3.7 Other 3,784 6.5 3,888 7.0 Total commercial mortgage loans 54,694 94.5 52,084 94.2 Agricultural property loans 3,206 5.5 3,203 5.8 Total commercial mortgage and agricultural property loans by property type 57,900 100.0 % 55,287 100.0 % Valuation allowance (119 ) (100 ) Total net commercial mortgage and agricultural property loans by property type 57,781 55,187 Other loans: Uncollateralized loans 666 663 Residential property loans 176 196 Other collateralized loans 4 5 Total other loans 846 864 Valuation allowance (5 ) (6 ) Total net other loans 841 858 Total commercial mortgage and other loans(1) $ 58,622 $ 56,045 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2018 and December 31, 2017 , the net carrying value of these loans was $330 million and $593 million , respectively. |
Commitments | Commercial Mortgage Loans | |
Commitments and Contingent Liabilities [Line Items] | |
Mortgage Loans | Commercial Mortgage Loan Commitments June 30, December 31, (in millions) Total outstanding mortgage loan commitments $ 3,101 $ 2,772 Portion of commitment where prearrangement to sell to investor exists $ 1,151 $ 435 |
Commitments | Investments | |
Commitments and Contingent Liabilities [Line Items] | |
Commitments to Purchase Investments (excluding Commercial Mortgage Loans) | Commitments to Purchase Investments (excluding Commercial Mortgage Loans) June 30, December 31, (in millions) Expected to be funded from the general account and other operations outside the separate accounts $ 6,507 $ 6,319 Expected to be funded from separate accounts $ 118 $ 141 |
Indemnifications | |
Commitments and Contingent Liabilities [Line Items] | |
Indemnification of Securities Lending Transactions | Indemnification of Securities Lending Transactions June 30, December 31, (in millions) Indemnification provided to certain securities lending clients $ 5,440 $ 4,619 Fair value of related collateral associated with above indemnifications $ 5,568 $ 4,722 Accrued liability associated with guarantee $ 0 $ 0 |
Indemnifications | Serviced Mortgage Loans | |
Commitments and Contingent Liabilities [Line Items] | |
Mortgage Loans | Indemnification of Serviced Mortgage Loans June 30, December 31, (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 1,674 $ 1,609 First-loss exposure portion of above $ 501 $ 483 Accrued liability associated with guarantees $ 15 $ 14 |
Guarantees of Asset Values | |
Commitments and Contingent Liabilities [Line Items] | |
Guarantees | Guarantees of Asset Values June 30, December 31, (in millions) Guaranteed value of third-parties’ assets $ 77,495 $ 77,290 Fair value of collateral supporting these assets $ 76,469 $ 77,651 Asset (liability) associated with guarantee, carried at fair value $ 2 $ (1 ) |
Other Guarantees | |
Commitments and Contingent Liabilities [Line Items] | |
Guarantees | Other Guarantees June 30, December 31, (in millions) Other guarantees where amount can be determined $ 84 $ 31 Accrued liability for other guarantees and indemnifications $ 0 $ 0 |
Business and Basis of Present36
Business and Basis of Presentation (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018divisionsegment | Jun. 30, 2018divisionsegment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Prior Period Adjustments Restatement [Line Items] | |||||
Number of divisions | division | 5 | 5 | |||
Number of reportable segments | segment | 7 | 7 | |||
Retained Earnings | Change in Accounting Principle, Adjustment To Reporting Calendar | |||||
Prior Period Adjustments Restatement [Line Items] | |||||
Increase in retained earnings | $ | $ 167 | $ 167 | $ 167 |
Significant Accounting Polici37
Significant Accounting Policies and Pronouncements (Changes to the presentation within the Consolidated Statements of Financial Position) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturities, available-for-sale | [1] | $ 341,151 | $ 346,780 | |
Fixed maturities, held-to-maturity | [1] | 2,020 | 2,049 | |
Fixed maturities, trading, at fair value | [1],[2] | 2,916 | 3,507 | |
Trading account assets supporting insurance liabilities, at fair value | 0 | |||
Assets supporting experience-rated contractholder liabilities, at fair value | [1],[2] | 21,497 | 22,097 | |
Other trading account assets, at fair value | 0 | |||
Equity securities, available-for-sale, at fair value | 0 | |||
Equity securities, at fair value | [1],[2] | 7,191 | 7,329 | |
Commercial mortgage and other loans | [1] | 58,622 | 56,045 | |
Policy loans | 11,935 | 11,891 | ||
Other long-term investments | 0 | |||
Other invested assets | [1],[2] | 13,459 | 13,373 | |
Short-term Investments | [2] | 5,728 | 6,800 | |
Total investments | $ 464,519 | 469,871 | ||
As Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturities, available-for-sale | 346,780 | |||
Fixed maturities, held-to-maturity | 2,049 | |||
Fixed maturities, trading, at fair value | 0 | |||
Trading account assets supporting insurance liabilities, at fair value | 22,097 | |||
Assets supporting experience-rated contractholder liabilities, at fair value | 0 | |||
Other trading account assets, at fair value | 5,752 | |||
Equity securities, available-for-sale, at fair value | 6,174 | |||
Equity securities, at fair value | 0 | |||
Commercial mortgage and other loans | 56,045 | |||
Policy loans | 11,891 | |||
Other long-term investments | 12,308 | |||
Other invested assets | 0 | |||
Short-term Investments | 6,775 | |||
Total investments | 469,871 | |||
Reclassifications (1) | ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Trading account assets supporting insurance liabilities, at fair value | (22,097) | |||
Assets supporting experience-rated contractholder liabilities, at fair value | 22,097 | |||
Other invested assets | $ 229 | |||
Total investments | 0 | |||
Reclassifications (2) | ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity securities, available-for-sale, at fair value | (6,174) | |||
Equity securities, at fair value | 6,174 | |||
Total investments | 0 | |||
Reclassifications (3) | ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Fixed maturities, trading, at fair value | 3,507 | |||
Other trading account assets, at fair value | (5,752) | |||
Equity securities, at fair value | 1,155 | |||
Other invested assets | 1,065 | |||
Short-term Investments | 25 | |||
Total investments | 0 | |||
Reclassifications (4) | ASU 2016-01 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other long-term investments | (12,308) | |||
Other invested assets | 12,308 | |||
Total investments | $ 0 | |||
[1] | See Note 4 for details of balances associated with variable interest entities. | |||
[2] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. |
Significant Accounting Polici38
Significant Accounting Policies and Pronouncements (Cumulative-effect Adjustment Upon Adoption) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other invested assets | [1],[2] | $ 13,459 | $ 13,373 | |||
Total assets | 819,860 | 832,136 | ||||
Policyholders’ dividends | 4,858 | 6,411 | ||||
Income taxes | 7,888 | 9,648 | ||||
Total liabilities | 771,268 | 777,625 | ||||
Accumulated other comprehensive income (loss) | 11,655 | 17,074 | ||||
Retained earnings | 28,713 | 28,671 | ||||
Total equity | 48,592 | 54,511 | $ 48,807 | $ 46,088 | ||
Total liabilities and equity | $ 819,860 | $ 832,136 | ||||
ASU 2016-01 | Restatement Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other invested assets | $ 229 | |||||
Total assets | 229 | |||||
Policyholders’ dividends | 157 | |||||
Income taxes | 15 | |||||
Total liabilities | 172 | |||||
Accumulated other comprehensive income (loss) | (847) | |||||
Retained earnings | 904 | |||||
Total equity | 57 | |||||
Total liabilities and equity | $ 229 | |||||
[1] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. | |||||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Significant Accounting Polici39
Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Asset management and service fees | $ 1,010 | $ 973 | $ 2,036 | $ 1,924 | ||
Accumulated other comprehensive income (loss) | 11,655 | 11,655 | $ 17,074 | |||
ASU 2014-09 | Asset-based management fees | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Asset management and service fees | 855 | 816 | 1,717 | 1,612 | ||
ASU 2014-09 | Performance-based incentive fees | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Asset management and service fees | 6 | 5 | 11 | 12 | ||
ASU 2014-09 | Other fees | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Asset management and service fees | $ 149 | $ 152 | $ 308 | $ 300 | ||
ASU 2018-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated other comprehensive income (loss) | $ 1,653 | |||||
Retained earnings | $ (1,653) |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | $ 317,548 | $ 312,385 | |
Fair Value | [1] | 341,151 | 346,780 |
Amortized Cost | [1] | 2,020 | 2,049 |
Fair Value | 2,388 | 2,430 | |
Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 317,548 | 312,385 | |
Gross Unrealized Gains | 28,771 | 36,171 | |
Gross Unrealized Losses | 5,168 | 1,776 | |
Fair Value | 341,151 | 346,780 | |
Amortized Cost | 2,020 | 2,049 | |
Gross Unrealized Gains | 368 | 381 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2,388 | 2,430 | |
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 | 22,471 | 22,837 | |
Gross Unrealized Gains | 2,987 | 3,647 | |
Gross Unrealized Losses | 613 | 346 | |
Fair Value | 24,845 | 26,138 | |
Fixed maturities | Obligations of U.S. states and their political subdivisions | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 9,548 | 9,366 | |
Gross Unrealized Gains | 771 | 1,111 | |
Gross Unrealized Losses | 40 | 6 | |
Fair Value | 10,279 | 10,471 | |
Fixed maturities | Foreign government bonds | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 93,464 | 88,062 | |
Gross Unrealized Gains | 15,787 | 15,650 | |
Gross Unrealized Losses | 414 | 293 | |
Fair Value | 108,837 | 103,419 | |
Amortized Cost | 878 | 865 | |
Gross Unrealized Gains | 271 | 265 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,149 | 1,130 | |
Fixed maturities | U.S. corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 79,744 | 81,967 | |
Gross Unrealized Gains | 4,674 | 8,671 | |
Gross Unrealized Losses | 2,058 | 414 | |
Fair Value | 82,360 | 90,224 | |
Fixed maturities | U.S. corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 32,171 | 31,852 | |
Gross Unrealized Gains | 1,269 | 2,051 | |
Gross Unrealized Losses | 556 | 169 | |
Fair Value | 32,884 | 33,734 | |
Fixed maturities | Foreign corporate public securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 26,949 | 26,389 | |
Gross Unrealized Gains | 2,290 | 3,118 | |
Gross Unrealized Losses | 355 | 99 | |
Fair Value | 28,884 | 29,408 | |
Amortized Cost | 662 | 654 | |
Gross Unrealized Gains | 67 | 82 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 729 | 736 | |
Fixed maturities | Foreign corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 24,099 | 23,322 | |
Gross Unrealized Gains | 622 | 1,242 | |
Gross Unrealized Losses | 760 | 337 | |
Fair Value | 23,961 | 24,227 | |
Amortized Cost | 85 | 84 | |
Gross Unrealized Gains | 3 | 2 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 88 | 86 | |
Fixed maturities | Asset-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 12,860 | 11,965 | |
Gross Unrealized Gains | 195 | 278 | |
Gross Unrealized Losses | 24 | 10 | |
Fair Value | 13,031 | 12,233 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 13,093 | 13,134 | |
Gross Unrealized Gains | 58 | 238 | |
Gross Unrealized Losses | 305 | 91 | |
Fair Value | 12,846 | 13,281 | |
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 | 3,149 | 3,491 | |
Gross Unrealized Gains | 118 | 165 | |
Gross Unrealized Losses | 43 | 11 | |
Fair Value | 3,224 | 3,645 | |
Amortized Cost | 395 | 446 | |
Gross Unrealized Gains | 27 | 32 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 422 | 478 | |
Available-for-sale | OTTI | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (193) | (267) | |
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 | (4) | (10) | |
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 | (11) | (13) | |
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) | (5) | |
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 | (172) | (237) | |
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 | 0 | |
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 | (1) | (2) | |
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 | 409 | 553 | |
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 | 1 | 2 | |
Prudential Netting Agreement | U.S. corporate private securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Fair Value | 3,666 | 2,660 | |
Prudential Netting Agreement | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 4,753 | 4,627 | |
Fair Value | 4,754 | 4,913 | |
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 | 3,666 | 2,660 | |
Fair Value | $ 3,666 | $ 2,660 | |
[1] | See Note 4 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) - Fixed maturities - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | $ 94,042 | $ 27,635 |
Less than twelve months, Gross Unrealized Losses | 3,016 | 333 |
Twelve months or more, Fair Value | 22,893 | 28,336 |
Twelve months or more, Gross Unrealized Losses | 2,152 | 1,443 |
Total, Fair Value | 116,935 | 55,971 |
Total, Gross Unrealized Losses | 5,168 | 1,776 |
Fair Value not reflected in AOCI, held-to-maturity securities | 13 | 12 |
Gross Unrealized Losses not reflected in AOCI, held-to-maturity securities | 1 | 1 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 5,105 | 3,450 |
Less than twelve months, Gross Unrealized Losses | 125 | 28 |
Twelve months or more, Fair Value | 4,940 | 6,391 |
Twelve months or more, Gross Unrealized Losses | 488 | 318 |
Total, Fair Value | 10,045 | 9,841 |
Total, Gross Unrealized Losses | 613 | 346 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 1,514 | 44 |
Less than twelve months, Gross Unrealized Losses | 25 | 0 |
Twelve months or more, Fair Value | 252 | 287 |
Twelve months or more, Gross Unrealized Losses | 15 | 6 |
Total, Fair Value | 1,766 | 331 |
Total, Gross Unrealized Losses | 40 | 6 |
Foreign government bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 5,039 | 4,417 |
Less than twelve months, Gross Unrealized Losses | 221 | 55 |
Twelve months or more, Fair Value | 2,737 | 2,937 |
Twelve months or more, Gross Unrealized Losses | 193 | 238 |
Total, Fair Value | 7,776 | 7,354 |
Total, Gross Unrealized Losses | 414 | 293 |
U.S. corporate public securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 36,466 | 7,914 |
Less than twelve months, Gross Unrealized Losses | 1,451 | 110 |
Twelve months or more, Fair Value | 5,579 | 6,831 |
Twelve months or more, Gross Unrealized Losses | 607 | 304 |
Total, Fair Value | 42,045 | 14,745 |
Total, Gross Unrealized Losses | 2,058 | 414 |
U.S. corporate private securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 14,045 | 4,596 |
Less than twelve months, Gross Unrealized Losses | 382 | 76 |
Twelve months or more, Fair Value | 2,242 | 2,009 |
Twelve months or more, Gross Unrealized Losses | 174 | 93 |
Total, Fair Value | 16,287 | 6,605 |
Total, Gross Unrealized Losses | 556 | 169 |
Foreign corporate public securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 7,626 | 2,260 |
Less than twelve months, Gross Unrealized Losses | 242 | 21 |
Twelve months or more, Fair Value | 1,348 | 1,678 |
Twelve months or more, Gross Unrealized Losses | 113 | 78 |
Total, Fair Value | 8,974 | 3,938 |
Total, Gross Unrealized Losses | 355 | 99 |
Foreign corporate private securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 9,568 | 1,213 |
Less than twelve months, Gross Unrealized Losses | 357 | 20 |
Twelve months or more, Fair Value | 3,161 | 5,339 |
Twelve months or more, Gross Unrealized Losses | 403 | 317 |
Total, Fair Value | 12,729 | 6,552 |
Total, Gross Unrealized Losses | 760 | 337 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 6,825 | 564 |
Less than twelve months, Gross Unrealized Losses | 19 | 2 |
Twelve months or more, Fair Value | 285 | 366 |
Twelve months or more, Gross Unrealized Losses | 5 | 8 |
Total, Fair Value | 7,110 | 930 |
Total, Gross Unrealized Losses | 24 | 10 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 6,705 | 2,593 |
Less than twelve months, Gross Unrealized Losses | 165 | 17 |
Twelve months or more, Fair Value | 2,057 | 2,212 |
Twelve months or more, Gross Unrealized Losses | 140 | 74 |
Total, Fair Value | 8,762 | 4,805 |
Total, Gross Unrealized Losses | 305 | 91 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than twelve months, Fair Value | 1,149 | 584 |
Less than twelve months, Gross Unrealized Losses | 29 | 4 |
Twelve months or more, Fair Value | 292 | 286 |
Twelve months or more, Gross Unrealized Losses | 14 | 7 |
Total, Fair Value | 1,441 | 870 |
Total, Gross Unrealized Losses | $ 43 | $ 11 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fixed maturities | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | $ 5,168 | $ 5,168 | $ 1,776 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 2,152 | 2,152 | 1,443 | ||
Fixed maturities | NAIC high or highest quality rating | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 4,639 | 4,639 | 1,470 | ||
Fixed maturities | NAIC other than high or highest quality rating | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 529 | 529 | 306 | ||
Corporate securities | |||||
Investment [Line Items] | |||||
Gross unrealized losses of twelve months or more concentrated in various sectors | 2,152 | 2,152 | $ 1,443 | ||
Other income | Equity securities | |||||
Investment [Line Items] | |||||
Unrealized gains (losses) for assets still held: | (80) | $ 11 | (271) | $ 54 | |
Other income | Assets supporting experience-rated contractholder liabilities | |||||
Investment [Line Items] | |||||
Unrealized gains (losses) for assets still held: | $ (198) | $ 183 | $ (596) | $ 229 | |
California | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 28.00% | 28.00% | |||
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 | 6.00% | 6.00% | |||
Australia | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 1.00% | 1.00% | |||
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 | Jun. 30, 2018 | Dec. 31, 2017 | |
Available for Sale Securities Amortized Cost | |||
Due in one year or less | $ 10,769 | ||
Due after one year through five years | 50,932 | ||
Due after five years through ten years | 63,671 | ||
Due after ten years | 163,074 | ||
Amortized Cost | 317,548 | $ 312,385 | |
Available for Sale Securities Fair Value | |||
Due in one year or less | 11,156 | ||
Due after one year through five years | 53,917 | ||
Due after five years through ten years | 66,989 | ||
Due after ten years | 179,988 | ||
Fair Value | [1] | 341,151 | 346,780 |
Held to Maturity Securities Amortized Cost | |||
Due in one year or less | 7 | ||
Due after one year through five years | 171 | ||
Due after five years through ten years | 572 | ||
Due after ten years | 875 | ||
Amortized Cost | [1] | 2,020 | 2,049 |
Held to Maturity Securities Fair Value | |||
Due in one year or less | 7 | ||
Due after one year through five years | 176 | ||
Due after five years through ten years | 636 | ||
Due after ten years | 1,147 | ||
Fair Value | 2,388 | 2,430 | |
Asset-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Debt Maturities, without single maturity date | 12,860 | ||
Available for Sale Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 13,031 | ||
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 | 13,093 | ||
Available for Sale Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 12,846 | ||
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 | 3,149 | ||
Available for Sale Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 3,224 | ||
Held to Maturity Securities Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 395 | ||
Held to Maturity Securities Fair Value | |||
Debt Maturities, without Single Maturity Date | 422 | ||
Prudential Netting Agreement | U.S. corporate private securities | |||
Available for Sale Securities Fair Value | |||
Fair Value | 3,666 | 2,660 | |
Fixed maturities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 317,548 | 312,385 | |
Available for Sale Securities Fair Value | |||
Fair Value | 341,151 | 346,780 | |
Held to Maturity Securities Amortized Cost | |||
Amortized Cost | 2,020 | 2,049 | |
Held to Maturity Securities Fair Value | |||
Fair Value | 2,388 | 2,430 | |
Fixed maturities | U.S. corporate private securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 32,171 | 31,852 | |
Available for Sale Securities Fair Value | |||
Fair Value | 32,884 | 33,734 | |
Fixed maturities | Asset-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 12,860 | 11,965 | |
Available for Sale Securities Fair Value | |||
Fair Value | 13,031 | 12,233 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 13,093 | 13,134 | |
Available for Sale Securities Fair Value | |||
Fair Value | 12,846 | 13,281 | |
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 | 3,149 | 3,491 | |
Available for Sale Securities Fair Value | |||
Fair Value | 3,224 | 3,645 | |
Held to Maturity Securities Amortized Cost | |||
Amortized Cost | 395 | 446 | |
Held to Maturity Securities Fair Value | |||
Fair Value | 422 | 478 | |
Fixed maturities | Prudential Netting Agreement | |||
Held to Maturity Securities Amortized Cost | |||
Amortized Cost | 4,753 | 4,627 | |
Held to Maturity Securities Fair Value | |||
Fair Value | 4,754 | 4,913 | |
Fixed maturities | Prudential Netting Agreement | U.S. corporate private securities | |||
Available for Sale Securities Amortized Cost | |||
Amortized Cost | 3,666 | 2,660 | |
Available for Sale Securities Fair Value | |||
Fair Value | $ 3,666 | $ 2,660 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Fixed Maturity Pro
Investments (Fixed Maturity Proceeds) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments - AFS | $ 30,599 | $ 28,990 | ||
Proceeds from maturities/prepayments - HTM | 56 | 89 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | $ 9,489 | $ 8,157 | 19,074 | 15,887 |
Proceeds from maturities/prepayments - AFS | 6,553 | 7,546 | 11,779 | 13,420 |
Gross investment gains from sales and maturities | 410 | 410 | 784 | 801 |
Gross investment losses from sales and maturities | (187) | (135) | (444) | (298) |
OTTI recognized in earnings | (58) | (46) | (97) | (100) |
Fixed maturities | Held-to-maturity | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from maturities/prepayments - HTM | $ 23 | $ 39 | 59 | 89 |
Fixed maturities | Available-for-sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | 254 | 317 | ||
Fixed maturities | Held-to-maturity | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ 3 | $ 0 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance, beginning of period | $ 203 | $ 350 | $ 319 | $ 359 |
New credit loss impairments | 0 | 7 | 0 | 7 |
Additional credit loss impairments on securities previously impaired | 0 | 0 | 0 | 1 |
Increases due to the passage of time on previously recorded credit losses | 4 | 4 | 6 | 7 |
Reductions for securities which matured, paid down, prepaid or were sold during the period | (42) | (7) | (155) | (16) |
Reductions for securities impaired to fair value during the period | 0 | (11) | (4) | (14) |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (2) | (2) | (3) | (3) |
Balance, ending of period | $ 163 | $ 341 | $ 163 | $ 341 |
Investments (Assets Supporting
Investments (Assets Supporting Experience-Rated Contractholder Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | $ 21,360 | $ 21,364 | |
Assets supporting experience-rated contractholder liabilities, at fair value | [1],[2] | 21,497 | 22,097 |
Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 19,653 | 19,841 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 19,530 | 20,209 | |
Equity securities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,367 | 1,278 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,627 | 1,643 | |
Short-term investments and cash equivalents | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 340 | 245 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 340 | 245 | |
Corporate securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 13,263 | 13,816 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 13,140 | 14,073 | |
Commercial mortgage-backed securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 2,390 | 2,294 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 2,350 | 2,311 | |
Residential mortgage-backed securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 888 | 961 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 867 | 966 | |
Asset-backed securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,470 | 1,363 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,493 | 1,392 | |
Foreign government bonds | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,063 | 1,050 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,061 | 1,057 | |
U.S. government authorities and agencies and obligations of U.S. states | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 579 | 357 | |
Assets supporting experience-rated contractholder liabilities, at fair value | $ 619 | $ 410 | |
[1] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. | ||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Concentrations of
Investments (Concentrations of Credit Risk) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
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 | $ 70,804 | $ 66,152 |
Concentrations of credit risk at fair value | 83,562 | 78,104 |
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 | 9,661 | 9,440 |
Concentrations of credit risk at fair value | 11,003 | 11,004 |
Assets supporting experience-rated contractholder 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 | 676 | 657 |
Concentrations of credit risk at fair value | 686 | 667 |
Assets supporting experience-rated contractholder 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 | 15 |
Concentrations of credit risk at fair value | 15 | 15 |
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 | 69,248 | 64,628 |
Concentrations of credit risk at fair value | 81,731 | 76,311 |
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 | 9,646 | 9,425 |
Concentrations of credit risk at fair value | 10,988 | 10,989 |
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 | 857 | 844 |
Concentrations of credit risk at fair value | 1,122 | 1,103 |
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 |
Trading | 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 | 23 | 23 |
Concentrations of credit risk at fair value | 23 | 23 |
Trading | 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 | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | ||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 57,900 | $ 55,287 | |
Other loans | 846 | 864 | |
Total commercial mortgage and other loans | [1] | $ 58,622 | $ 56,045 |
% of Total | 100.00% | 100.00% | |
Net carrying value of commercial loans held for sale | $ 330 | $ 593 | |
Commercial Mortgage Loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 54,694 | $ 52,084 | |
% of Total | 94.50% | 94.20% | |
Commercial mortgage and agricultural property loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Valuation allowance, Commercial mortgage and agricultural property loans | $ (119) | $ (100) | |
Total net loans | 57,781 | 55,187 | |
Uncollateralized loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Other loans | 666 | 663 | |
Residential property loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Other loans | 176 | 196 | |
Other collateralized loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Other loans | 4 | 5 | |
Other loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total net loans | 841 | 858 | |
Valuation allowance, Other loans | (5) | (6) | |
Office | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 13,435 | $ 12,670 | |
% of Total | 23.20% | 22.90% | |
Retail | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 8,707 | $ 8,543 | |
% of Total | 15.10% | 15.50% | |
Apartments/Multi-Family | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 16,194 | $ 15,465 | |
% of Total | 28.00% | 28.00% | |
Industrial | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 10,609 | $ 9,451 | |
% of Total | 18.30% | 17.10% | |
Hospitality | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 1,965 | $ 2,067 | |
% of Total | 3.40% | 3.70% | |
Other | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 3,784 | $ 3,888 | |
% of Total | 6.50% | 7.00% | |
Agricultural property loans | |||
Commercial Mortgage and Other Loans [Line Items] | |||
Total commercial mortgage and agricultural property loans by property type | $ 3,206 | $ 3,203 | |
% of Total | 5.50% | 5.80% | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 106 | $ 106 |
Addition to (release of) allowance for losses | 18 | 1 |
Charge-offs, net of recoveries | 0 | (1) |
Change in foreign exchange | 0 | 0 |
Total ending balance | 124 | 106 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 97 | 96 |
Addition to (release of) allowance for losses | 19 | 2 |
Charge-offs, net of recoveries | 0 | (1) |
Change in foreign exchange | 0 | 0 |
Total ending balance | 116 | 97 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 3 | 2 |
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 | 3 | 3 |
Residential Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 1 | 2 |
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 | 1 | 1 |
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 | 5 | 6 |
Addition to (release of) allowance for losses | (1) | (1) |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | $ 4 | $ 5 |
Investments (Allowance for Cr50
Investments (Allowance for Credit Losses and Recorded Investment) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for credit losses: | |||
Individually evaluated for impairment | $ 20 | $ 7 | |
Collectively evaluated for impairment | 104 | 99 | |
Total ending balance | 124 | 106 | $ 106 |
Recorded Investment: | |||
Individually evaluated for impairment | 107 | 116 | |
Collectively evaluated for impairment | 58,639 | 56,035 | |
Total ending balance | 58,746 | 56,151 | |
Commercial Mortgage Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 20 | 7 | |
Collectively evaluated for impairment | 96 | 90 | |
Total ending balance | 116 | 97 | 96 |
Recorded Investment: | |||
Individually evaluated for impairment | 70 | 75 | |
Collectively evaluated for impairment | 54,624 | 52,009 | |
Total ending balance | 54,694 | 52,084 | |
Agricultural Property Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 3 | 3 | |
Total ending balance | 3 | 3 | 2 |
Recorded Investment: | |||
Individually evaluated for impairment | 35 | 39 | |
Collectively evaluated for impairment | 3,171 | 3,164 | |
Total ending balance | 3,206 | 3,203 | |
Residential Property Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1 | 1 | |
Total ending balance | 1 | 1 | 2 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 176 | 196 | |
Total ending balance | 176 | 196 | |
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 | 4 | 5 | |
Total ending balance | 4 | 5 | |
Uncollateralized Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 4 | 5 | |
Total ending balance | 4 | 5 | $ 6 |
Recorded Investment: | |||
Individually evaluated for impairment | 2 | 2 | |
Collectively evaluated for impairment | 664 | 661 | |
Total ending balance | 666 | 663 | |
Financial Asset Acquired with Credit Deterioration | |||
Recorded Investment: | |||
Financing Receivable Total | $ 0 | $ 0 |
Investments (Credit Quality Ind
Investments (Credit Quality Indicators) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 54,694 | $ 52,084 |
Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,206 | 3,203 |
Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 57,900 | 55,287 |
0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 30,093 | 30,972 |
0%-59.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,131 | 3,163 |
0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 33,224 | 34,135 |
60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 17,471 | 14,309 |
60%-69.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 75 | 40 |
60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 17,546 | 14,349 |
70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,865 | 6,537 |
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 | 6,865 | 6,537 |
80% or greater | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 265 | 266 |
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 | 265 | 266 |
≥ 1.2X | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 52,136 | 49,827 |
≥ 1.2X | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,030 | 3,028 |
≥ 1.2X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 55,166 | 52,855 |
≥ 1.2X | 0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 29,292 | 30,082 |
≥ 1.2X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,955 | 2,988 |
≥ 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 | 32,247 | 33,070 |
≥ 1.2X | 60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 16,737 | 13,658 |
≥ 1.2X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 75 | 40 |
≥ 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 | 16,812 | 13,698 |
≥ 1.2X | 70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,047 | 5,994 |
≥ 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 | 6,047 | 5,994 |
≥ 1.2X | 80% or greater | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 60 | 93 |
≥ 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 | 60 | 93 |
1.0X to 1.2X | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,088 | 1,737 |
1.0X to 1.2X | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 176 | 170 |
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 | 2,264 | 1,907 |
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 | 520 | 639 |
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 | 176 | 170 |
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 | 696 | 809 |
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 | 579 | 530 |
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 | 579 | 530 |
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 | 807 | 514 |
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 | 807 | 514 |
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 | 182 | 54 |
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 | 182 | 54 |
Less than 1.0X | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 470 | 520 |
Less than 1.0X | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 5 |
Less than 1.0X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 470 | 525 |
Less than 1.0X | 0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 281 | 251 |
Less than 1.0X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 5 |
Less than 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 | 281 | 256 |
Less than 1.0X | 60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 155 | 121 |
Less than 1.0X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 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 | 155 | 121 |
Less than 1.0X | 70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 11 | 29 |
Less than 1.0X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 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 | 11 | 29 |
Less than 1.0X | 80% or greater | Commercial mortgage loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 23 | 119 |
Less than 1.0X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 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 | $ 23 | $ 119 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 58,726 | $ 56,144 |
Total Past Due | 20 | 7 |
Total Loans | 58,746 | 56,151 |
Non-Accrual Status | 95 | 96 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 3 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 0 |
90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18 | 4 |
Commercial mortgage loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 54,694 | 52,084 |
Total Past Due | 0 | 0 |
Total Loans | 54,694 | 52,084 |
Non-Accrual Status | 70 | 71 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial mortgage loans | 90 days or more past due | ||
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 | 3,190 | 3,201 |
Total Past Due | 16 | 2 |
Total Loans | 3,206 | 3,203 |
Non-Accrual Status | 23 | 23 |
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 | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 16 | 2 |
Residential Property Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 172 | 191 |
Total Past Due | 4 | 5 |
Total Loans | 176 | 196 |
Non-Accrual Status | 2 | 2 |
Residential Property Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 3 |
Residential Property Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1 | 0 |
Residential Property Loans | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | 2 |
Other collateralized loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4 | 5 |
Total Past Due | 0 | 0 |
Total Loans | 4 | 5 |
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 | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 666 | 663 |
Total Past Due | 0 | 0 |
Total Loans | 666 | 663 |
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 | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans | 90 days or more past due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Other Invested Assets [Line Items] | |||
Other invested assets | [1],[2] | $ 13,459 | $ 13,373 |
LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 9,327 | 8,720 | |
Real estate held through direct ownership | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 2,278 | 2,409 | |
Derivative instruments | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 820 | 1,214 | |
Other | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,034 | 1,030 | |
Mortgage debt | Real estate-related | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 751 | 799 | |
Equity method | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 5,119 | 4,729 | |
Equity method | Private equity | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 2,927 | 2,954 | |
Equity method | Hedge funds | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,021 | 803 | |
Equity method | Real estate-related | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,171 | 972 | |
Cost method | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,572 | ||
Fair Value | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 49 | ||
Fair Value | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 4,208 | 3,991 | |
Fair Value | Private equity | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,608 | 1,325 | |
Fair Value | Hedge funds | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 2,307 | 2,419 | |
Fair Value | Real estate-related | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | $ 293 | $ 247 | |
[1] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. | ||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 4,323 | $ 4,278 | $ 8,523 | $ 8,519 |
Less: investment expenses | (227) | (189) | (429) | (369) |
Net investment income | 4,096 | 4,089 | 8,094 | 8,150 |
Assets supporting experience-rated contractholder liabilities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 181 | 177 | 372 | 372 |
Equity securities, at fair value | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 59 | 114 | 94 | 204 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 594 | 583 | 1,163 | 1,120 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 156 | 155 | 308 | 307 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 163 | 248 | 304 | 580 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 82 | 46 | 154 | 90 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 3,001 | 2,856 | 5,955 | 5,651 |
Held-to-maturity | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 57 | 54 | 112 | 108 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 30 | $ 45 | $ 61 | $ 87 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | $ 685 | $ (1,092) | $ 1,110 | $ (665) |
Fixed maturities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 165 | 229 | 243 | 403 |
Equity securities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 0 | 164 | 0 | 420 |
Commercial mortgage and other loans | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 5 | 14 | 17 | 28 |
Investment real estate | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 60 | 6 | 62 | 12 |
LPs/LLCs | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 10 | (10) | 16 | (21) |
Derivatives | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 445 | (1,496) | 773 | (1,507) |
Other | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | $ 0 | $ 1 | $ (1) | $ 0 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 23,693 | $ 36,398 |
Fixed maturities | Available-for-sale | OTTI | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 216 | 286 |
Fixed maturities | Available-for-sale | All other | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 23,387 | 34,109 |
Equity securities | Available-for-sale | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 0 | 2,027 |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 99 | (39) |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (9) | $ 15 |
Other investments | Held-to-maturity | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 0 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreements and Securities Lending Transactions) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | $ 9,540 | $ 8,400 |
Total cash collateral for loaned securities | 4,307 | 4,354 |
Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 8,765 | 912 |
Total cash collateral for loaned securities | 4,146 | 4,319 |
Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 775 | 7,488 |
Total cash collateral for loaned securities | 161 | 35 |
30 days or greater | ||
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 |
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 | 9,169 | 8,260 |
Total cash collateral for loaned securities | 303 | 122 |
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 | 8,394 | 911 |
Total cash collateral for loaned securities | 142 | 87 |
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 | 775 | 7,349 |
Total cash collateral for loaned securities | 161 | 35 |
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 | 139 | 103 |
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 | 139 | 103 |
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 | 368 | 335 |
Foreign government bonds | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 368 | 335 |
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 | 20 | 1 |
Total cash collateral for loaned securities | 2,749 | 2,961 |
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 | 20 | 1 |
Total cash collateral for loaned securities | 2,749 | 2,961 |
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 | 0 |
Total cash collateral for loaned securities | 612 | 655 |
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 | 0 |
Total cash collateral for loaned securities | 612 | 655 |
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 | 351 | 139 |
Total cash collateral for loaned securities | 0 | 0 |
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 | 351 | 0 |
Total cash collateral for loaned securities | 0 | 0 |
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 | 0 | 139 |
Total cash collateral for loaned securities | 0 | 0 |
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 | 136 | 178 |
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 | 136 | 178 |
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 | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | ||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | [1] | $ 937 | $ 1,518 |
Consolidated VIEs for Which the Company is the Investment Manager | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 3,817 | 4,421 | |
Total liabilities of consolidated VIEs | $ 1,225 | $ 1,951 | |
VIEs Liabilities, maturities obligations (greater than) | 5 years | 5 years | |
Consolidated VIEs for Which the Company is the Investment Manager | Assets supporting experience-rated contractholder liabilities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | $ 0 | $ 0 | |
Consolidated VIEs for Which the Company is the Investment Manager | Equity securities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 38 | 28 | |
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 | 652 | 617 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,316 | 1,390 | |
Consolidated VIEs for Which the Company is the Investment Manager | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 130 | 164 | |
Consolidated VIEs for Which the Company is the Investment Manager | Accrued investment income | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 5 | 7 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 445 | 440 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 288 | 433 | |
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 | 937 | 1,518 | |
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 | 75 | 69 | |
Consolidated VIEs for Which the Company is the Investment Manager | Trading | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,071 | 1,623 | |
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 | 85 | 83 | |
Other Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,341 | 1,345 | |
Total liabilities of consolidated VIEs | 8 | 0 | |
Other Consolidated VIEs | Assets supporting experience-rated contractholder liabilities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 9 | 9 | |
Other Consolidated VIEs | Equity securities | |||
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 | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 84 | 97 | |
Other Consolidated VIEs | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 0 | 0 | |
Other Consolidated VIEs | Accrued investment income | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 4 | 4 | |
Other Consolidated VIEs | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 141 | 150 | |
Other Consolidated VIEs | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 8 | 0 | |
Other Consolidated VIEs | Notes Issued by Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 0 | 0 | |
Other Consolidated VIEs | Available-for-sale | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 279 | 275 | |
Other Consolidated VIEs | Trading | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 0 | 0 | |
Other Consolidated VIEs | Held-to-maturity | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 824 | 810 | |
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 | $ 1,796 | $ 1,716 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | |
Variable Interest Entity [Line Items] | |||
Other invested assets | [1],[2] | $ 13,459,000,000 | $ 13,373,000,000 |
LPs/LLCs | |||
Variable Interest Entity [Line Items] | |||
Other invested assets | 9,327,000,000 | 8,720,000,000 | |
Other Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Liabilities held within unconsolidated VIEs | 0 | ||
Other Consolidated VIEs | Fixed maturities, AFS, Fixed maturities, trading, Equity securities and Other invested assets. | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss resulting from investment in unconsolidated VIEs | 858,000,000 | 1,013,000,000 | |
VIEs and Non-VIEs | LPs/LLCs | |||
Variable Interest Entity [Line Items] | |||
Other invested assets | $ 9,327,000,000 | $ 8,720,000,000 | |
[1] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. | ||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total derivative assets | $ 812 | $ 1,205 |
Total derivative liabilities | 676 | 643 |
Gain (Loss) on Hedge Ineffectiveness, Net | 12 | |
Anticipated pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) to earnings | $ 194 | |
Maximum Length of Time Hedged in Cash Flow Hedge | 5 years | |
Maximum Length Of Time Hedged In Cash Flow Hedge (Existing Cash Flows) | 40 years | |
Net investment hedges income (loss) before taxes | $ 529 | 526 |
Credit Derivatives [Line Items] | ||
Credit Derivative Protection Purchased Notional Amount | 145 | 178 |
Single Name Credit Default Swaps | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | $ 110 | 114 |
Credit Derivatives Written Max Length Of Maturities (less than) | 3 years | |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ 1 | 2 |
Single Name Credit Default Swaps | NAIC 1 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 37 | |
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 | 1 | |
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 | $ 1,135 | 1,022 |
Credit Derivatives Written Max Length Of Maturities (less than) | 29 years | |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ 14 | 18 |
Credit Default Swaps Referencing Indices | NAIC 1 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 50 | |
Credit Default Swaps Referencing Indices | NAIC 3 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 970 | |
Credit Default Swaps Referencing Indices | NAIC 6 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 115 | |
Credit Default Swap, Buying Protection | ||
Credit Derivatives [Line Items] | ||
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ (2) | $ (5) |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional | $ 407,276 | $ 392,399 |
Assets | 9,016 | 10,807 |
Liabilities | (6,213) | (5,955) |
Net Embedded Derivative Liability | (6,651) | (8,748) |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 22,771 | 21,481 |
Assets | 1,109 | 1,037 |
Liabilities | (719) | (831) |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 2,925 | 3,204 |
Assets | 155 | 271 |
Liabilities | (74) | (88) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 574 | 545 |
Assets | 8 | 0 |
Liabilities | 0 | (8) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 19,272 | 17,732 |
Assets | 946 | 766 |
Liabilities | (645) | (735) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 384,505 | 370,918 |
Assets | 7,907 | 9,770 |
Liabilities | (5,494) | (5,124) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 150,392 | 158,552 |
Assets | 5,891 | 7,958 |
Liabilities | (3,856) | (3,509) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Futures | ||
Derivative [Line Items] | ||
Notional | 18,311 | 23,792 |
Assets | 2 | 25 |
Liabilities | (2) | (1) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Options | ||
Derivative [Line Items] | ||
Notional | 22,424 | 18,456 |
Assets | 170 | 167 |
Liabilities | (259) | (203) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forwards | ||
Derivative [Line Items] | ||
Notional | 2,628 | 1,498 |
Assets | 10 | 6 |
Liabilities | 0 | (2) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 23,197 | 23,905 |
Assets | 284 | 164 |
Liabilities | (182) | (254) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Options | ||
Derivative [Line Items] | ||
Notional | 46 | 59 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 13,537 | 13,777 |
Assets | 740 | 822 |
Liabilities | (449) | (414) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Notional | 1,390 | 1,314 |
Assets | 18 | 21 |
Liabilities | (6) | (5) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Futures | ||
Derivative [Line Items] | ||
Notional | 1,031 | 710 |
Assets | 1 | 2 |
Liabilities | (9) | (2) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 53,838 | 36,007 |
Assets | 535 | 588 |
Liabilities | (534) | (364) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swaps | ||
Derivative [Line Items] | ||
Notional | 19,712 | 15,558 |
Assets | 254 | 17 |
Liabilities | (197) | (369) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other (2) | ||
Derivative [Line Items] | ||
Notional | 504 | 0 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Synthetic GICs | ||
Derivative [Line Items] | ||
Notional | 77,495 | 77,290 |
Assets | 2 | 0 |
Liabilities | $ 0 | $ (1) |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 8,933 | $ 10,710 |
Gross Amounts Offset in the Statements of Financial Position | (8,204) | (9,600) |
Net Amounts Presented in the Statements of Financial Position | 729 | 1,110 |
Financial Instruments/Collateral | (457) | (625) |
Net Amount | 272 | 485 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 2,339 | 240 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 2,339 | 240 |
Financial Instruments/Collateral | (2,339) | (240) |
Net Amount | 0 | 0 |
Total assets | ||
Gross Amounts of Recognized Financial Instruments | 11,272 | 10,950 |
Gross Amounts Offset in the Statements of Financial Position | (8,204) | (9,600) |
Net Amounts Presented in the Statements of Financial Position | 3,068 | 1,350 |
Financial Instruments/Collateral | (2,796) | (865) |
Net Amount | 272 | 485 |
Derivative Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 6,205 | 5,948 |
Gross Amounts Offset in the Statements of Financial Position | (5,537) | (5,312) |
Net Amounts Presented in the Statements of Financial Position | 668 | 636 |
Financial Instruments/Collateral | (452) | (588) |
Net Amount | 216 | 48 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 9,540 | 8,400 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 9,540 | 8,400 |
Financial Instruments/Collateral | (9,540) | (8,400) |
Net Amount | 0 | 0 |
Total liabilities | ||
Gross Amounts of Recognized Financial Instruments | 15,745 | 14,348 |
Gross Amounts Offset in the Statements of Financial Position | (5,537) | (5,312) |
Net Amounts Presented in the Statements of Financial Position | 10,208 | 9,036 |
Financial Instruments/Collateral | (9,992) | (8,988) |
Net Amount | $ 216 | $ 48 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 450 | $ (1,500) | $ 792 | $ (1,503) |
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 | 442 | (1,495) | 767 | (1,508) |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 50 | 44 | 94 | 82 |
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 | 210 | (127) | 119 | (167) |
Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | (2) | 1 | (3) |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (1) | (1) | (1) |
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 | (28) | 0 | (111) | 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 | 726 | (342) | 141 | (543) |
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 | 6 | (5) | 25 | 5 |
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 | (2) | (5) | (6) | (11) |
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 | (28) | 0 | (111) | 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 | 52 | 49 | 100 | 93 |
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 | 209 | (125) | 118 | (164) |
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 | (1) | (1) | (1) |
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 | 721 | (339) | 138 | (536) |
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 | 2 | 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 | 5 | (3) | 3 | (7) |
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 | (432) | 1,110 | (1,947) | 964 |
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 | 5 | 0 | 22 | 7 |
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 | (2) | (5) | (6) | (11) |
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 | (28) | 0 | (111) | 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 | 0 | (1) | (1) | (1) |
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) | 1 | 6 | 4 |
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 | (130) | (46) | 279 | (8) |
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) | (2) | 0 | (1) |
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 | 1 | (5) | 3 | (2) |
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 | 0 |
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 | 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 | ||
Currency | 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 | ||
Currency | 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 | ||
Currency | 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 | ||
Currency | 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 | ||
Currency | Cash flow hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 18 | 9 | ||
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 | 2 | 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 | 5 | (3) | 3 | (7) |
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 | 606 | (53) | 52 | (141) |
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 | 1 | (2) |
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 | 52 | 49 | 100 | 93 |
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 | 209 | (125) | 118 | (164) |
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 | 704 | (340) | 123 | (540) |
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 | (1) | 6 | (5) | 16 |
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 | (258) | (453) | (248) | (1,157) |
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 |
Other | 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) | 0 | (1) | 0 |
Other | 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 | 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 |
Other | 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 |
Other | 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 |
Other | 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 | 658 | (2,059) | 2,637 | (1,182) |
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 | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ (39) |
Net deferred gains/(losses) on cash flow hedges from January 1 to June 30, 2018 | 385 |
Amount reclassified into current period earnings | (247) |
Balance, ending | $ 99 |
Fair Value of Assets and Liab65
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | [1] | $ 341,151 | $ 346,780 |
Assets supporting experience-rated contractholder liabilities | [1],[2] | 21,497 | 22,097 |
Fixed maturities trading | [1],[2] | 2,916 | 3,507 |
Equity securities | [1],[2] | 7,191 | 7,329 |
Commercial mortgage and other loans | [1] | 58,622 | 56,045 |
Other invested assets | [1],[2] | 13,459 | 13,373 |
Other assets | [1] | 16,860 | 17,250 |
Separate account assets | 298,658 | 306,617 | |
TOTAL ASSETS | 819,860 | 832,136 | |
Future policy benefits | 260,435 | 257,317 | |
Other Liabilities | [1] | 16,498 | 16,619 |
Total liabilities | 771,268 | 777,625 | |
Netting | 8,204 | 9,600 | |
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 6,651 | 8,748 | |
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 | 6,600 | 8,700 | |
Embedded Derivative, Fair Value Of Embedded Derivative Gross Asset | 1,000 | 900 | |
Embedded Derivative, Fair Value Of Embedded Derivative Gross Liability | 7,600 | 9,600 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 341,151 | 346,780 | |
Assets supporting experience-rated contractholder liabilities | 21,201 | 21,988 | |
Fixed maturities trading | 2,916 | 3,507 | |
Equity securities | 7,054 | 7,329 | |
Commercial mortgage and other loans | 330 | 593 | |
Other invested assets | 930 | 1,337 | |
Short-term investments | 4,132 | 5,789 | |
Cash equivalents | 5,566 | 8,298 | |
Other assets | 3 | 14 | |
Separate account assets | 273,397 | 280,393 | |
TOTAL ASSETS | 656,680 | 676,028 | |
Future policy benefits | 6,585 | 8,720 | |
Other Liabilities | 742 | 688 | |
Notes issued by consolidated VIEs | 609 | 1,196 | |
Total liabilities | 7,936 | 10,604 | |
Assets Netting | (8,204) | (9,600) | |
Liabilities Netting | (5,537) | (5,312) | |
Netting | 2,667 | 4,288 | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Netting | (8,204) | (9,600) | |
Fair Value, Measurements, Recurring | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities Netting | (5,537) | (5,312) | |
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 | 24,845 | 26,138 | |
Assets supporting experience-rated contractholder liabilities | 420 | 201 | |
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 | 10,279 | 10,471 | |
Assets supporting experience-rated contractholder liabilities | 199 | 208 | |
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 | 108,837 | 103,419 | |
Assets supporting experience-rated contractholder liabilities | 1,061 | 1,057 | |
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 | 82,360 | 90,224 | |
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 | 32,884 | 33,734 | |
Fair Value, Measurements, Recurring | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 28,884 | 29,408 | |
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 | 23,961 | 24,227 | |
Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 13,140 | 14,073 | |
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 | 13,031 | 12,233 | |
Assets supporting experience-rated contractholder liabilities | 1,493 | 1,392 | |
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 12,846 | 13,281 | |
Assets supporting experience-rated contractholder liabilities | 2,350 | 2,311 | |
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 | 3,224 | 3,645 | |
Assets supporting experience-rated contractholder liabilities | 867 | 966 | |
Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 1,627 | 1,643 | |
Fair Value, Measurements, Recurring | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 44 | 137 | |
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 | |
Assets supporting experience-rated contractholder liabilities | 1,356 | 1,406 | |
Fixed maturities trading | 0 | 0 | |
Equity securities | 5,617 | 5,978 | |
Commercial mortgage and other loans | 0 | 0 | |
Other invested assets | 3 | 32 | |
Short-term investments | 2,342 | 3,931 | |
Cash equivalents | 1,141 | 1,900 | |
Other assets | 0 | 0 | |
Separate account assets | 43,335 | 45,397 | |
TOTAL ASSETS | 53,794 | 58,644 | |
Future policy benefits | 0 | 0 | |
Other Liabilities | 15 | 4 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 15 | 4 | |
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 | |
Assets supporting experience-rated contractholder liabilities | 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 | |
Assets supporting experience-rated contractholder liabilities | 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 | |
Assets supporting experience-rated contractholder liabilities | 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] | |||
Assets supporting experience-rated contractholder liabilities | 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 | |
Assets supporting experience-rated contractholder liabilities | 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 | |
Assets supporting experience-rated contractholder liabilities | 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 | |
Assets supporting experience-rated contractholder liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 1,356 | 1,381 | |
Fair Value, Measurements, Recurring | Level 1 | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 0 | 25 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 336,587 | 337,084 | |
Assets supporting experience-rated contractholder liabilities | 19,020 | 19,163 | |
Fixed maturities trading | 2,743 | 3,351 | |
Equity securities | 654 | 556 | |
Commercial mortgage and other loans | 330 | 593 | |
Other invested assets | 9,009 | 10,768 | |
Short-term investments | 1,789 | 1,850 | |
Cash equivalents | 4,423 | 6,398 | |
Other assets | 3 | 1 | |
Separate account assets | 228,246 | 232,874 | |
TOTAL ASSETS | 602,804 | 612,638 | |
Future policy benefits | 0 | 0 | |
Other Liabilities | 6,204 | 5,946 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 6,204 | 5,946 | |
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 | 24,778 | 26,086 | |
Assets supporting experience-rated contractholder liabilities | 420 | 201 | |
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 | 10,274 | 10,466 | |
Assets supporting experience-rated contractholder liabilities | 199 | 208 | |
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 | 108,700 | 103,271 | |
Assets supporting experience-rated contractholder liabilities | 840 | 834 | |
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 | 82,244 | 90,115 | |
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 | 31,067 | 31,845 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign corporate public securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 28,819 | 29,329 | |
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 | 23,268 | 23,528 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 12,652 | 13,611 | |
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 | 11,742 | 5,629 | |
Assets supporting experience-rated contractholder liabilities | 1,386 | 670 | |
Fair Value, Measurements, Recurring | Level 2 | Commercial mortgage-backed securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 12,562 | 13,268 | |
Assets supporting experience-rated contractholder liabilities | 2,350 | 2,311 | |
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 | 3,133 | 3,547 | |
Assets supporting experience-rated contractholder liabilities | 867 | 965 | |
Fair Value, Measurements, Recurring | Level 2 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 267 | 258 | |
Fair Value, Measurements, Recurring | Level 2 | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 39 | 105 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 4,564 | 9,696 | |
Assets supporting experience-rated contractholder liabilities | 825 | 1,419 | |
Fixed maturities trading | 173 | 156 | |
Equity securities | 783 | 795 | |
Commercial mortgage and other loans | 0 | 0 | |
Other invested assets | 122 | 137 | |
Short-term investments | 1 | 8 | |
Cash equivalents | 2 | 0 | |
Other assets | 0 | 13 | |
Separate account assets | 1,816 | 2,122 | |
TOTAL ASSETS | 8,286 | 14,346 | |
Future policy benefits | 6,585 | 8,720 | |
Other Liabilities | 60 | 50 | |
Notes issued by consolidated VIEs | 609 | 1,196 | |
Total liabilities | 7,254 | 9,966 | |
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 | 67 | 52 | |
Assets supporting experience-rated contractholder liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Obligations of U.S. states and their political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 5 | 5 | |
Assets supporting experience-rated contractholder liabilities | 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 | 137 | 148 | |
Assets supporting experience-rated contractholder liabilities | 221 | 223 | |
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 | 116 | 109 | |
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 | 1,817 | 1,889 | |
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 | 65 | 79 | |
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 | 693 | 699 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 488 | 462 | |
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 | 1,289 | 6,604 | |
Assets supporting experience-rated contractholder liabilities | 107 | 722 | |
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 | 284 | 13 | |
Assets supporting experience-rated contractholder liabilities | 0 | 0 | |
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 | 91 | 98 | |
Assets supporting experience-rated contractholder liabilities | 0 | 1 | |
Fair Value, Measurements, Recurring | Level 3 | Equity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 4 | 4 | |
Fair Value, Measurements, Recurring | Level 3 | All other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 5 | 7 | |
Prudential Netting Agreement | U.S. corporate private securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 3,666 | 2,660 | |
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 | 3,666 | 2,660 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | 4,208 | 1,969 | |
Separate account assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | $ 25,261 | $ 26,224 | |
[1] | See Note 4 for details of balances associated with variable interest entities. | ||
[2] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. |
Fair Value of Assets and Liab66
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value Assets Level1 To Level2 Transfers | $ 10 | $ 17 | $ 180 | $ 63 |
Fair Value Assets Level2 to Level1 Transfers | $ 3 | $ 27 | $ 10 | $ 83 |
Fair Value of Assets and Liab67
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | $ 5,374 | $ 5,154 |
Future policy benefits | 260,435 | 257,317 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 6,585 | 8,720 |
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 | $ 6,585 | $ 8,720 |
Level 3 | Internal | Minimum | Discounted cash flow | Future Policy Benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | 1.00% |
Spread over LIBOR | 0.19% | 0.12% |
Utilization rate | 54.00% | 52.00% |
Withdrawal rate (greater than maximum range) | 78.00% | 78.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 15.00% | 13.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 0.63% | 0.65% |
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 | 1.05% | 1.08% |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 4.5 | 7.4 |
Level 3 | Internal | Minimum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 6.40% | 13.10% |
Level 3 | Internal | Maximum | Discounted cash flow | Future Policy Benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 13.00% | 12.00% |
Spread over LIBOR | 1.28% | 1.10% |
Utilization rate | 97.00% | 97.00% |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% |
Mortality rate | 15.00% | 14.00% |
Equity volatility curve | 22.00% | 24.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 20.82% | 22.00% |
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 | 2.73% | 2.78% |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 8 | 7.4 |
Level 3 | Internal | Maximum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 17.80% | 25.00% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 7.20% | 7.20% |
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 | 1.15% | 1.20% |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 6.6 | 7.4 |
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 15.24% | 14.68% |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future Policy Benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 6,585 | $ 8,720 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 1,359 | 1,352 |
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 | $ 790 | $ 821 |
Fair Value of Assets and Liab68
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Narrative) (Details) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Available-for-sale | Collateralized Loan Obligations | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Transfers out of Level 3 | $ 5,078 |
Fair Value of Assets and Liab69
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 785 | $ 811 | $ 795 | $ 752 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | (2) | 0 | 9 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 35 | 10 | 42 | 32 |
Sales | (15) | (6) | (32) | (34) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (2) | (1) | (39) | (7) |
Foreign currency translation | (15) | 5 | 6 | 14 |
Other | 4 | (4) | 9 | (4) |
Transfers into Level 3 | 3 | 0 | 3 | 31 |
Transfers out of Level 3 | 0 | 0 | (3) | (1) |
Fair Value, end of period | 783 | 816 | 783 | 816 |
Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 4 | 0 | 4 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 3 | 0 | 3 |
Equity securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (12) | (1) | 2 | 20 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (15) | 12 | (1) | 33 |
Assets supporting experience-rated contractholder liabilities | Foreign government | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 220 | 227 | 223 | 227 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 2 | 2 | 3 | 3 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (3) | (2) | (3) | (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 | 221 | 228 | 221 | 228 |
Assets supporting experience-rated contractholder liabilities | Foreign government | 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 |
Assets supporting experience-rated contractholder liabilities | Foreign government | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 2 | 1 | (2) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 2 | 2 | (2) | 0 |
Assets supporting experience-rated contractholder liabilities | Corporate securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 468 | 174 | 462 | 154 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 1 | 1 | 1 | 1 |
Purchases | 41 | 28 | 65 | 59 |
Sales | 0 | 0 | 0 | (2) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (51) | (55) | (69) | (85) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 40 | 1 | 40 | 22 |
Transfers out of Level 3 | 0 | 0 | (1) | (4) |
Fair Value, end of period | 488 | 148 | 488 | 148 |
Assets supporting experience-rated contractholder liabilities | 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 |
Assets supporting experience-rated contractholder liabilities | Corporate securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (11) | (1) | (10) | 3 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (10) | (2) | (9) | 0 |
Assets supporting experience-rated contractholder liabilities | Structured securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 664 | 676 | 722 | 290 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 1 | 0 | 1 |
Purchases | 16 | 28 | 19 | 218 |
Sales | 0 | (9) | 0 | (9) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (129) | (113) | (142) | (121) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 5 | 165 | 33 | 398 |
Transfers out of Level 3 | (447) | (129) | (523) | (158) |
Fair Value, end of period | 107 | 621 | 107 | 621 |
Assets supporting experience-rated contractholder liabilities | 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 |
Assets supporting experience-rated contractholder liabilities | Structured securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (2) | 2 | (2) | 2 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1) | 2 | (1) | 2 |
Assets supporting experience-rated contractholder liabilities | Equity securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 5 | 4 | ||
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | (1) | (1) | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Foreign currency translation | 0 | 0 | ||
Other | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | 4 | 4 | ||
Assets supporting experience-rated contractholder liabilities | Equity securities | 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 | ||
Assets supporting experience-rated contractholder liabilities | Equity securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 1 | ||
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 1 | ||
Assets supporting experience-rated contractholder liabilities | All other activity | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 7 | 7 | ||
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | ||
Purchases | 24 | 43 | ||
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (26) | (45) | ||
Foreign currency translation | 0 | 0 | ||
Other | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair Value, end of period | 5 | 5 | ||
Assets supporting experience-rated contractholder liabilities | All other activity | 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 | ||
Assets supporting experience-rated contractholder liabilities | All other activity | 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 invested assets | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 144 | 79 | 137 | 8 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 1 | 0 |
Sales | (12) | 0 | (12) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | (6) | (1) | (8) | 70 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 122 | 77 | 122 | 77 |
Other invested assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (4) | (1) | 4 | (1) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (3) | (2) | 2 | (5) |
Other invested 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 |
Short-term investments | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 10 | 1 | 8 | 1 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 8 | 0 | 22 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (14) | 0 | (26) | 0 |
Foreign currency translation | (1) | 0 | 0 | 0 |
Other | (2) | 0 | (2) | 0 |
Transfers into Level 3 | 0 | 1 | 0 | 1 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 2 | 1 | 2 |
Short-term investments | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | (1) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | (1) | 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 | 6 | 0 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 2 |
Purchases | 9 | 0 | 9 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (7) | (6) | (7) | (6) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | (4) | 0 | 0 |
Transfers into Level 3 | 0 | 4 | 0 | 4 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 2 | 0 | 2 | 0 |
Cash equivalents | 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 |
Cash equivalents | 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 assets | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 0 | 13 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 9 | 0 | 17 |
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 | 39 | 0 | 39 |
Other assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 30 | (13) | 22 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 30 | (13) | 22 |
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 |
Other assets | 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 |
Separate accounts assets | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 2,360 | 1,975 | 2,122 | 1,849 |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 1 | 0 | 1 |
Purchases | 253 | 383 | 490 | 538 |
Sales | (14) | (68) | (22) | (72) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (140) | (175) | (261) | (381) |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 29 | 63 | 224 | 254 |
Transfers out of Level 3 | (694) | (94) | (726) | (128) |
Fair Value, end of period | 1,816 | 2,107 | 1,816 | 2,107 |
Separate accounts assets | 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 |
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 | 22 | 22 | (11) | 46 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 21 | 16 | (5) | 40 |
Future policy benefits | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (6,981) | (7,640) | (8,720) | (8,238) |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (287) | (279) | (574) | (554) |
Settlements | 0 | 0 | 0 | 0 |
Foreign currency translation | 0 | 0 | 0 | (2) |
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 | (6,585) | (10,031) | (6,585) | (10,031) |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 683 | (2,112) | 2,709 | (1,237) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 612 | (2,173) | 2,529 | (1,365) |
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 | (56) | (27) | (50) | (22) |
Total gains (losses) (realized/unrealized): | ||||
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 8 | 0 | 18 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 6 | (1) | 8 | 0 |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 1 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (60) | (34) | (60) | (34) |
Other liabilities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (18) | (6) | (37) | (12) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (18) | (4) | (36) | (12) |
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 | 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 | (612) | (1,854) | (1,196) | (1,839) |
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 | 0 | 0 | 0 | 0 |
Foreign currency translation | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 587 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (609) | (1,853) | (609) | (1,853) |
Notes Issued by Consolidated VIEs | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 3 | 1 | 0 | (14) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 3 | 1 | 0 | (14) |
Notes Issued by Consolidated VIEs | 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 | 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 |
Available-for-sale | Fixed maturities | U.S. government | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 59 | 10 | 52 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 8 | 22 | 15 | 22 |
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 | 10 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 67 | 32 | 67 | 32 |
Available-for-sale | Fixed maturities | U.S. government | 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 |
Available-for-sale | 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 | 5 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
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 | 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 | 5 | 5 | 5 | 5 |
Available-for-sale | 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 |
Available-for-sale | Fixed maturities | Foreign government | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 128 | 136 | 148 | 124 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | (2) | 2 | (2) | 2 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 0 | (1) | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Foreign currency translation | (4) | (4) | (3) | 1 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 15 | 11 | 20 | 18 |
Transfers out of Level 3 | 0 | (1) | (26) | (2) |
Fair Value, end of period | 137 | 143 | 137 | 143 |
Available-for-sale | Fixed maturities | Foreign government | 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 |
Available-for-sale | Fixed maturities | Corporate securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 2,735 | 2,111 | 2,776 | 2,173 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | (11) | (16) | 5 | (3) |
Net investment income | 2 | 2 | 4 | 11 |
Purchases | 257 | 88 | 375 | 122 |
Sales | (3) | (3) | (4) | (144) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (286) | (388) | (455) | (447) |
Foreign currency translation | (9) | 0 | 3 | 9 |
Other | (22) | 0 | (22) | (10) |
Transfers into Level 3 | 69 | 28 | 129 | 126 |
Transfers out of Level 3 | (21) | (143) | (93) | (202) |
Fair Value, end of period | 2,691 | 1,662 | 2,691 | 1,662 |
Available-for-sale | Fixed maturities | Corporate securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (20) | (17) | (27) | 27 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (21) | (31) | (30) | (40) |
Available-for-sale | Fixed maturities | Structured securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 6,899 | 5,911 | 6,716 | 4,555 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | (12) | (13) | (42) | (13) |
Net investment income | 2 | 2 | 4 | 5 |
Purchases | 441 | 1,659 | 1,988 | 2,441 |
Sales | (278) | (385) | (344) | (395) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (668) | (994) | (1,317) | (1,414) |
Foreign currency translation | (25) | 13 | 1 | 25 |
Other | 1 | 0 | 5 | (1) |
Transfers into Level 3 | 62 | 998 | 1,133 | 2,645 |
Transfers out of Level 3 | (4,759) | (504) | (6,494) | (1,163) |
Fair Value, end of period | 1,664 | 6,744 | 1,664 | 6,744 |
Available-for-sale | Fixed maturities | Structured securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | 57 | 14 | 59 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading | Fixed maturities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 204 | 106 | 156 | 76 |
Total gains (losses) (realized/unrealized): | ||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Purchases | 9 | 16 | 49 | 31 |
Sales | (38) | (7) | (42) | (8) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (3) | (2) | (3) | (12) |
Foreign currency translation | (2) | 2 | 3 | 3 |
Other | 0 | 3 | 0 | 4 |
Transfers into Level 3 | 1 | 1 | 12 | 27 |
Transfers out of Level 3 | (3) | (27) | (5) | (28) |
Fair Value, end of period | 173 | 97 | 173 | 97 |
Trading | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | 0 | 1 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 4 | 5 | 2 | 4 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | $ 0 | $ 4 | $ 4 | $ 5 |
Fair Value of Assets and Liab70
Fair Value of Assets and Liabilities (Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | $ 812 | $ 1,205 |
Netting | (8,204) | (9,600) |
Total derivative liabilities | 676 | 643 |
Netting | (5,537) | (5,312) |
Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 6,229 | 8,424 |
Total derivative liabilities | 4,191 | 3,804 |
Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 293 | 165 |
Total derivative liabilities | 181 | 262 |
Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 18 | 21 |
Total derivative liabilities | 6 | 5 |
Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 1,686 | 1,588 |
Total derivative liabilities | 1,095 | 1,149 |
Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 790 | 607 |
Total derivative liabilities | 740 | 735 |
Other | ||
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 | 3 | 27 |
Total derivative liabilities | 11 | 3 |
Level 1 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2 | 25 |
Total derivative liabilities | 2 | 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 | 1 | 2 |
Total derivative liabilities | 9 | 2 |
Level 1 | Other | ||
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 | 9,009 | 10,768 |
Total derivative liabilities | 6,202 | 5,949 |
Level 2 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 6,225 | 8,399 |
Total derivative liabilities | 4,189 | 3,800 |
Level 2 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 293 | 165 |
Total derivative liabilities | 181 | 262 |
Level 2 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 18 | 21 |
Total derivative liabilities | 6 | 5 |
Level 2 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 1,686 | 1,588 |
Total derivative liabilities | 1,095 | 1,149 |
Level 2 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 787 | 595 |
Total derivative liabilities | 731 | 733 |
Level 2 | Other | ||
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 | 4 | 10 |
Total derivative liabilities | 0 | 3 |
Level 3 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2 | 0 |
Total derivative liabilities | 0 | 3 |
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 | 2 | 10 |
Total derivative liabilities | 0 | 0 |
Level 3 | Other | ||
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 | $ (2,667) | $ (4,288) |
Fair Value of Assets and Liab71
Fair Value of Assets and Liabilities (Changes in Level 3 Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Derivative- Equity | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, beginning of period | $ 6 | $ 0 | $ 10 | $ 0 |
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 |
Foreign currency translation | 0 | 0 | ||
Other | (4) | 0 | (9) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 2 | 0 | 2 | 0 |
Net Derivative- Interest Rate | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, beginning of period | 6 | 3 | (3) | 4 |
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 |
Foreign currency translation | 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 | 2 | 3 | 2 | 3 |
Realized investment gains (losses), net | Net Derivative- Equity | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 1 | 0 |
Unrealized Gain (Loss) for assets still held | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Realized investment gains (losses), net | Net Derivative- Interest Rate | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (4) | 0 | 5 | (1) |
Unrealized Gain (Loss) for assets still held | ||||
Included in earnings | 4 | (1) | 5 | (1) |
Other income | Net Derivative- Equity | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized Gain (Loss) for assets still held | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other income | Net Derivative- Interest Rate | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized Gain (Loss) for assets still held | ||||
Included in earnings | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value of Assets and Liab72
Fair Value of Assets and Liabilities (Nonrecurring Fair Value Measurements) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative Liability | $ 676 | $ 676 | $ 643 | ||
Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative Liability | 6,202 | 6,202 | 5,949 | ||
Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative Liability | 0 | 0 | 3 | ||
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 | (13) | $ 0 | (13) | $ 0 | |
Carrying value after measurement as of period end | 51 | 51 | 64 | ||
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 | 4 | 4 | 6 | |
Carrying value after measurement as of period end | 68 | 68 | 60 | ||
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 | 0 | $ (7) | 0 | $ (17) | |
Carrying value after measurement as of period end | $ 0 | $ 0 | $ 150 |
Fair Value of Assets and Liab73
Fair Value of Assets and Liabilities (Changes in Fair Values Recorded in Earnings for FVO Assets-Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | [1] | $ 58,622 | $ 58,622 | $ 56,045 | ||
Other invested assets | [1],[2] | 13,459 | 13,459 | 13,373 | ||
Commercial mortgage and other loans | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Interest income | 4 | $ 3 | 6 | $ 5 | ||
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 invested assets | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Changes in fair value | 0 | 23 | 0 | 77 | ||
Notes Issued by Consolidated VIEs | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Changes in fair value | (3) | (1) | 0 | 14 | ||
Interest expense | 9 | $ 22 | 18 | $ 44 | ||
Fair value option | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | 330 | 330 | 593 | |||
Other invested assets | 0 | 0 | 1,945 | |||
Notes issued by consolidated VIEs | 609 | 609 | 1,196 | |||
Fair value option, aggregate contractual principal | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | 327 | 327 | 582 | |||
Notes issued by consolidated VIEs | $ 632 | $ 632 | $ 1,233 | |||
[1] | See Note 4 for details of balances associated with variable interest entities. | |||||
[2] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. |
Fair Value of Assets and Liab74
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |||
Assets: | ||||||
Fixed maturities, held-to-maturity | [1] | $ 2,020 | $ 2,049 | |||
Assets supporting experience-rated contractholder liabilities | [1],[2] | 21,497 | 22,097 | |||
Commercial mortgage and other loans | [1] | 58,622 | 56,045 | |||
Policy loans | 11,935 | 11,891 | ||||
Other invested assets | [1],[2] | 13,459 | 13,373 | |||
Short-term Investments | [2] | 5,728 | 6,800 | |||
Cash and cash equivalents | 14,918 | [1] | 14,490 | [1] | $ 16,605 | |
Accrued investment income | [1] | 3,235 | 3,325 | |||
Liabilities: | ||||||
Securities sold under agreements to repurchase | 9,540 | 8,400 | ||||
Cash collateral for loaned securities | 4,307 | 4,354 | ||||
Short-term debt | 2,056 | 1,380 | ||||
Long-term debt | 16,732 | 17,172 | ||||
Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,388 | 2,430 | ||||
Assets supporting experience-rated contractholder liabilities | 296 | 109 | ||||
Commercial mortgage and other loans | 58,056 | 56,748 | ||||
Policy loans | 11,935 | 11,891 | ||||
Other invested assets | 49 | |||||
Short-term Investments | 1,596 | 1,011 | ||||
Cash and cash equivalents | 9,352 | 6,192 | ||||
Accrued investment income | 3,235 | 3,325 | ||||
Other assets | 3,232 | 3,115 | ||||
Total assets | 90,139 | 84,821 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 98,778 | 100,186 | ||||
Securities sold under agreements to repurchase | 9,540 | 8,400 | ||||
Cash collateral for loaned securities | 4,307 | 4,354 | ||||
Short-term debt | 2,088 | 1,384 | ||||
Long-term debt | 17,984 | 19,760 | ||||
Notes issued by consolidated VIEs | 328 | 322 | ||||
Other liabilities | 6,938 | 6,717 | ||||
Separate account liabilities—investment contracts | 98,598 | 101,826 | ||||
Total liabilities | 238,561 | 242,949 | ||||
Carrying Amount | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,020 | 2,049 | ||||
Assets supporting experience-rated contractholder liabilities | 296 | 109 | ||||
Commercial mortgage and other loans | 58,292 | 55,452 | ||||
Policy loans | 11,935 | 11,891 | ||||
Other invested assets | 49 | |||||
Short-term Investments | 1,596 | 1,011 | ||||
Cash and cash equivalents | 9,352 | 6,192 | ||||
Accrued investment income | 3,235 | 3,325 | ||||
Other assets | 3,232 | 3,115 | ||||
Total assets | 90,007 | 83,144 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 99,783 | 99,948 | ||||
Securities sold under agreements to repurchase | 9,540 | 8,400 | ||||
Cash collateral for loaned securities | 4,307 | 4,354 | ||||
Short-term debt | 2,056 | 1,380 | ||||
Long-term debt | 16,732 | 17,172 | ||||
Notes issued by consolidated VIEs | 328 | 322 | ||||
Other liabilities | 6,938 | 6,717 | ||||
Separate account liabilities—investment contracts | 98,598 | 101,826 | ||||
Total liabilities | 238,282 | 240,119 | ||||
Level 1 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 0 | 0 | ||||
Assets supporting experience-rated contractholder liabilities | 111 | 58 | ||||
Commercial mortgage and other loans | 0 | 0 | ||||
Policy loans | 0 | 1 | ||||
Other invested assets | 0 | |||||
Short-term Investments | 1,573 | 989 | ||||
Cash and cash equivalents | 7,189 | 5,997 | ||||
Accrued investment income | 0 | 0 | ||||
Other assets | 143 | 45 | ||||
Total assets | 9,016 | 7,090 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 0 | 0 | ||||
Securities sold under agreements to repurchase | 0 | 0 | ||||
Cash collateral for loaned securities | 0 | 0 | ||||
Short-term debt | 0 | 0 | ||||
Long-term debt | 1,310 | 1,296 | ||||
Notes issued by consolidated VIEs | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Separate account liabilities—investment contracts | 0 | 0 | ||||
Total liabilities | 1,310 | 1,296 | ||||
Level 2 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 1,481 | 1,484 | ||||
Assets supporting experience-rated contractholder liabilities | 185 | 51 | ||||
Commercial mortgage and other loans | 128 | 129 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 49 | |||||
Short-term Investments | 23 | 22 | ||||
Cash and cash equivalents | 2,163 | 195 | ||||
Accrued investment income | 3,235 | 3,325 | ||||
Other assets | 2,538 | 2,385 | ||||
Total assets | 9,802 | 7,591 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 31,938 | 33,045 | ||||
Securities sold under agreements to repurchase | 9,540 | 8,400 | ||||
Cash collateral for loaned securities | 4,307 | 4,354 | ||||
Short-term debt | 2,047 | 1,384 | ||||
Long-term debt | 14,852 | 16,369 | ||||
Notes issued by consolidated VIEs | 0 | 0 | ||||
Other liabilities | 6,359 | 6,002 | ||||
Separate account liabilities—investment contracts | 72,450 | 71,336 | ||||
Total liabilities | 141,493 | 140,890 | ||||
Level 3 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 907 | 946 | ||||
Assets supporting experience-rated contractholder liabilities | 0 | 0 | ||||
Commercial mortgage and other loans | 57,928 | 56,619 | ||||
Policy loans | 11,935 | 11,890 | ||||
Other invested assets | 0 | |||||
Short-term Investments | 0 | 0 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Accrued investment income | 0 | 0 | ||||
Other assets | 551 | 685 | ||||
Total assets | 71,321 | 70,140 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 66,840 | 67,141 | ||||
Securities sold under agreements to repurchase | 0 | 0 | ||||
Cash collateral for loaned securities | 0 | 0 | ||||
Short-term debt | 41 | 0 | ||||
Long-term debt | 1,822 | 2,095 | ||||
Notes issued by consolidated VIEs | 328 | 322 | ||||
Other liabilities | 579 | 715 | ||||
Separate account liabilities—investment contracts | 26,148 | 30,490 | ||||
Total liabilities | 95,758 | 100,763 | ||||
Prudential Netting Agreement | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 4,754 | 4,913 | ||||
Liabilities: | ||||||
Long-term debt | 8,420 | 7,577 | ||||
Prudential Netting Agreement | Carrying Amount | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 4,753 | 4,627 | ||||
Liabilities: | ||||||
Long-term debt | $ 8,419 | 7,287 | ||||
Other invested assets | Fair Value | Measurement at NAV per share | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cost Method Investments, Fair Value Disclosure | 1,795 | |||||
Other invested assets | Carrying Amount | Measurement at NAV per share | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cost Method Investments, Fair Value Disclosure | $ 1,571 | |||||
[1] | See Note 4 for details of balances associated with variable interest entities. | |||||
[2] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. |
Closed Block (Narrative) (Detai
Closed Block (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Policyholders’ dividend obligation | $ 3,855 | $ 5,446 |
Accumulated net unrealized investment gains | ||
Policyholders’ dividend obligation | $ 1,170 | $ 3,656 |
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 | Jun. 30, 2018 | Dec. 31, 2017 | |
Closed Block liabilities | |||
Future policy benefits | $ 48,518 | $ 48,870 | |
Policyholders’ dividends payable | 835 | 829 | |
Policyholders’ dividend obligation | 3,855 | 5,446 | |
Policyholders’ account balances | 5,097 | 5,146 | |
Other Closed Block liabilities | 4,712 | 5,070 | |
Total Closed Block liabilities | 63,017 | 65,361 | |
Closed Block assets | |||
Fixed maturities, available-for-sale, at fair value | 39,170 | 41,043 | |
Fixed maturities, trading, at fair value | 190 | 339 | [1] |
Equity securities, at fair value | 2,149 | 2,340 | [1] |
Commercial mortgage and other loans | 8,898 | 9,017 | |
Policy loans | 4,469 | 4,543 | |
Other invested assets | 3,335 | 3,159 | [1] |
Short-term investments | 364 | 632 | |
Total investments | 58,575 | 61,073 | |
Cash and cash equivalents | 803 | 789 | |
Accrued investment income | 469 | 474 | |
Other Closed Block assets | 424 | 249 | |
Total Closed Block assets | 60,271 | 62,585 | |
Excess of reported Closed Block liabilities over Closed Block assets | 2,746 | 2,776 | |
Portion of above representing accumulated other comprehensive income: | |||
Net unrealized investment gains (losses) | 1,132 | 3,627 | |
Allocated to policyholder dividend obligation | (1,170) | (3,656) | |
Future earnings to be recognized from Closed Block assets and Closed Block liabilities | $ 2,708 | $ 2,747 | |
[1] | Prior period amounts have been reclassified to conform to current period presentation. See Note 2 for details. |
Closed Block (Information Regar
Closed Block (Information Regarding Policyholder Dividend Obligation) (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($) | ||
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Balance, beginning | $ 5,446 | |
Impact from earnings allocable to policyholder dividend obligation | (75) | |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation | (1,673) | |
Balance, ending | 3,855 | |
ASU 2016-01 | ||
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Cumulative-effect adjustment from the adoption of ASU 2016-01 | $ 157 | [1] |
[1] | See Note 2 for details. |
Closed Block (Closed Block Reve
Closed Block (Closed Block Revenues and Benefits and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Premiums | $ 602 | $ 670 | $ 1,152 | $ 1,275 |
Net investment income | 593 | 676 | 1,190 | 1,326 |
Realized investment gains (losses), net | 110 | 81 | 108 | 354 |
Other income (loss) | 85 | 26 | 107 | 60 |
Total Closed Block revenues | 1,390 | 1,453 | 2,557 | 3,015 |
Benefits and Expenses | ||||
Policyholders’ benefits | 778 | 855 | 1,506 | 1,644 |
Interest credited to policyholders’ account balances | 33 | 32 | 66 | 65 |
Dividends to policyholders | 508 | 473 | 816 | 1,066 |
General and administrative expenses | 92 | 97 | 184 | 194 |
Total Closed Block benefits and expenses | 1,411 | 1,457 | 2,572 | 2,969 |
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes | (21) | (4) | (15) | 46 |
Income tax expense (benefit) | (36) | (17) | (45) | 20 |
Closed Block revenues, net of Closed Block benefits and expenses and income taxes | $ 15 | $ 13 | $ 30 | $ 26 |
Income Taxes Income Taxes (Deta
Income Taxes Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Change in Accounting Estimate [Line Items] | ||
Deferred tax revaluation from 35% to 21% | $ (1,595) | $ (1,592) |
Adoption of modified territorial system | (1,809) | (1,785) |
Deemed repatriation | 497 | 497 |
Total provision for income tax expense (benefit) | (2,907) | $ (2,880) |
U.S. Tax Cut and Jobs Act of 2017 | ||
Change in Accounting Estimate [Line Items] | ||
Deferred tax revaluation from 35% to 21% | (3) | |
Adoption of modified territorial system | (24) | |
Deemed repatriation | 0 | |
Total provision for income tax expense (benefit) | $ (27) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Total income tax expense (benefit) | $ 68 | $ 125 | $ 420 | $ 520 | |
Effective Income Tax Rate, Percent | 21.60% | 22.10% | |||
Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |||
Total provision for income tax expense (benefit) | $ (2,907) | $ (2,880) |
Short-Term and Long-Term Debt81
Short-Term and Long-Term Debt (Short-Term Debt) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 2,056 | $ 1,380 |
Weighted average interest rate on outstanding short-term debt | 1.65% | 0.99% |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 535 | $ 550 |
Weighted average maturity of outstanding commercial paper, in days | 16 days | 22 days |
Long-term debt | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 1,521 | $ 830 |
Borrowings due overnight | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 122 | 277 |
Daily average outstanding | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 1,389 | 1,110 |
Prudential Financial | ||
Short-term Debt [Line Items] | ||
Short-term debt | 1,499 | 880 |
Prudential Financial | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 19 | 50 |
Prudential Funding, LLC | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 516 | $ 500 |
Real estate investment property | Long-term debt | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 41 |
Short-Term and Long-Term Debt82
Short-Term and Long-Term Debt (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | |||
Debt, Current | $ 2,056,000,000 | $ 1,380,000,000 | |
Amounts drawn on credit facilities | 0 | ||
Other invested assets | [1],[2] | 13,459,000,000 | 13,373,000,000 |
Assets Under Set-Off Arrangements | Regulation XXX [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument authorized for captive reinsurance | 1,600,000,000 | ||
Surplus notes captive financing facility | 100,000,000 | ||
Assets Under Set-Off Arrangements | Guideline AXXX [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument authorized for captive reinsurance | 2,000,000,000 | ||
Surplus notes captive financing facility | 1,500,000,000 | ||
Increase (decrease) of debt | 820,000,000 | ||
Long-term debt | |||
Debt Instrument [Line Items] | |||
Debt, Current | 1,521,000,000 | 830,000,000 | |
Medium-term Notes | Senior notes | |||
Debt Instrument [Line Items] | |||
Debt instrument authorized for captive reinsurance | 20,000,000,000 | ||
Long-term Debt | 8,700,000,000 | ||
Increase (decrease) of debt | 1,000,000,000 | ||
Junior subordinated debt issued in September 2017 | Senior notes | |||
Debt Instrument [Line Items] | |||
Prepayments of Debt | $ 600,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 8.875% | ||
Debt Instrument, Fee Amount | $ 6,000,000 | ||
Real estate investment property | Long-term debt | |||
Debt Instrument [Line Items] | |||
Debt, Current | 41,000,000 | ||
Real estate investment property | Mortgage | Senior notes | |||
Debt Instrument [Line Items] | |||
Increase (decrease) of debt | 48,000,000 | ||
Increase due to new borrowings | 35,000,000 | ||
Foreign exchange fluctuations of debt | 6,000,000 | ||
Prepayments of Debt | 77,000,000 | ||
Real estate investment property | ERROR in label resolution. | |||
Debt Instrument [Line Items] | |||
Other invested assets | 751,000,000 | $ 799,000,000 | |
Maturing in 2028 [Member] | Medium-term Notes | Senior notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 600,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.878% | ||
Maturing 2048 [Member] | Medium-term Notes | Senior notes | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 400,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.418% | ||
[1] | Prior period amounts have been reclassified to conform to current period presentation. See “Adoption of ASU 2016-01” in Note 2 for details. | ||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Short-Term and Long-Term Debt83
Short-Term and Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 16,732 | $ 17,172 |
Surplus notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 841 | 840 |
Surplus notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 0 |
Surplus notes subject to set-off arrangements | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,319 | 5,187 |
Surplus notes subject to set-off arrangements | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,100 | 2,100 |
Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 9,126 | 8,882 |
Senior notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 29 | 29 |
Mortgage | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 240 | 226 |
Mortgage | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 470 | 573 |
Junior subordinated notes(4) | ||
Debt Instrument [Line Items] | ||
Long-term debt | 6,026 | 6,622 |
Subtotal | ||
Debt Instrument [Line Items] | ||
Long-term debt | 25,151 | 24,459 |
Less: assets under set-off arrangements | ||
Debt Instrument [Line Items] | ||
Long-term debt | 8,419 | 7,287 |
Debt denominated in foreign currency | Mortgage | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 105 | 107 |
Debt denominated in foreign currency | Mortgage | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 213 | 245 |
Prudential Financial | ||
Debt Instrument [Line Items] | ||
Long-term debt | 14,953 | $ 15,304 |
Prudential Financial | Junior subordinated notes(4) | ||
Debt Instrument [Line Items] | ||
Long-term debt | 5,970 | |
Subsidiaries [Member] | Junior subordinated notes(4) | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 56 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2018year | |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Deferred Compensation Arrangement with Individual, Requisite Age | 50 |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 10 years |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Deferred Compensation Arrangement with Individual, Requisite Age | 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 79 | $ 71 | $ 158 | $ 142 |
Interest cost | 112 | 119 | 224 | 238 |
Expected return on plan assets | (205) | (195) | (409) | (390) |
Amortization of prior service cost | (1) | (1) | (2) | (2) |
Amortization of actuarial (gain) loss, net | 54 | 48 | 107 | 96 |
Settlements | 0 | 0 | 0 | 0 |
Special termination benefits | 1 | 0 | 1 | 3 |
Net periodic (benefit) cost | 40 | 42 | 79 | 87 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | 5 | 12 | 10 |
Interest cost | 17 | 21 | 35 | 41 |
Expected return on plan assets | (27) | (26) | (54) | (51) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial (gain) loss, net | 5 | 9 | 9 | 18 |
Settlements | 0 | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 | 0 |
Net periodic (benefit) cost | $ 1 | $ 9 | $ 2 | $ 18 |
Equity (Common Stock Changes in
Equity (Common Stock Changes in Number of Shares Issued, Held in Treasury and Outstanding) (Details) | 6 Months Ended |
Jun. 30, 2018shares | |
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 | 237,500,000 |
Common Stock issued | 0 |
Common Stock acquired | 7,000,000 |
Stock-based compensation programs | (2,100,000) |
Balance, ending | 242,400,000 |
Outstanding | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 422,600,000 |
Common Stock issued | 0 |
Common Stock acquired | 7,000,000 |
Stock-based compensation programs | 2,100,000 |
Balance, ending | 417,700,000 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) shares in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Cost of Treasury Stock Acquired | $ 739,000,000 | $ 612,000,000 | |
Under December 2017 Board Of Directors Authorization [Member] [Member] | |||
Class of Stock [Line Items] | |||
Amount of Stock Repurchases Authorized by the Board of Directors | $ 1,500,000,000 | ||
Under December 2017 Board Of Directors Authorization [Member] [Member] | Common Stock | |||
Class of Stock [Line Items] | |||
Number of Treasury Stock Shares Acquired | 7 | ||
Cost of Treasury Stock Acquired | $ 750,000,000 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 17,074 | ||||
Income tax benefit (expense) | $ 838 | $ (872) | 1,682 | $ (656) | |
Ending balance | 11,655 | 11,655 | $ 17,074 | ||
Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (269) | (973) | (973) | ||
Change in OCI before reclassifications | (44) | 614 | |||
Amounts reclassified from AOCI | 0 | 2 | |||
Income tax benefit (expense) | 6 | (77) | |||
Ending balance | (538) | (434) | (538) | (434) | (269) |
Net Unrealized Investment Gains (Losses) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | 19,968 | 18,171 | 18,171 | ||
Change in OCI before reclassifications | (7,502) | 2,502 | |||
Amounts reclassified from AOCI | (490) | (820) | |||
Income tax benefit (expense) | 1,704 | (544) | |||
Ending balance | 15,115 | 19,309 | 15,115 | 19,309 | 19,968 |
Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (2,625) | (2,577) | (2,577) | ||
Change in OCI before reclassifications | 15 | (13) | |||
Amounts reclassified from AOCI | 114 | 112 | |||
Income tax benefit (expense) | (28) | (35) | |||
Ending balance | (2,922) | (2,513) | (2,922) | (2,513) | (2,625) |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | 17,074 | 14,621 | 14,621 | ||
Change in OCI before reclassifications | (7,531) | 3,103 | |||
Amounts reclassified from AOCI | (376) | (706) | |||
Income tax benefit (expense) | 1,682 | (656) | |||
Ending balance | 11,655 | 16,362 | 11,655 | 16,362 | 17,074 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (39) | 1,316 | 1,316 | ||
Ending balance | 99 | $ 780 | 99 | $ 780 | $ (39) |
ASU 2016-01 | Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | 0 | ||||
ASU 2016-01 | Net Unrealized Investment Gains (Losses) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (847) | ||||
ASU 2016-01 | Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | 0 | ||||
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (847) | ||||
ASU 2018-02 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 1,653 | ||||
ASU 2018-02 | Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (231) | ||||
ASU 2018-02 | Net Unrealized Investment Gains (Losses) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | 2,282 | ||||
ASU 2018-02 | Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | (398) | ||||
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Cumulative effect of adoption | $ 1,653 |
Equity (Reclassifications out o
Equity (Reclassifications out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized investment gains (losses), net | $ 685 | $ (1,092) | $ 1,110 | $ (665) |
Other income | (54) | 420 | (561) | 637 |
Total foreign currency translation adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 0 | 2 | ||
Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (490) | (820) | ||
Total amortization of defined benefit pension items | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 114 | 112 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (376) | (706) | ||
Amounts reclassified from AOCI | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized investment gains (losses), net | 0 | (2) | 0 | (3) |
Other income | 0 | 1 | 0 | 1 |
Amortization of defined benefit pension items: | ||||
Prior service cost | 1 | 1 | 2 | 2 |
Actuarial gain (loss) | (59) | (57) | (116) | (114) |
Amounts reclassified from AOCI | Total foreign currency translation adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 0 | (1) | 0 | (2) |
Amounts reclassified from AOCI | Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 464 | 330 | 490 | 820 |
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 | (58) | (56) | (114) | (112) |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 406 | 273 | 376 | 706 |
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) | 165 | 393 | 243 | 823 |
Amounts reclassified from AOCI | Interest Rate | Cash flow hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 2 | (1) | 2 | (2) |
Amounts reclassified from AOCI | Currency | Cash flow hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 3 | 0 | 0 | 0 |
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) | $ 294 | $ (62) | $ 245 | $ (1) |
Equity (OTTI Net Unrealized Inv
Equity (OTTI Net Unrealized Investment Gains and Losses in AOCI) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 17,074 |
Ending balance | 11,655 |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 19,968 |
Ending balance | 15,115 |
OTTI | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 286 |
Net investment gains (losses) on investments arising during the period | (13) |
Reclassification adjustment for (gains) losses included in net income | (56) |
Reclassification adjustment for OTTI losses excluded from net income | (1) |
Ending balance | 216 |
OTTI | DAC, DSI, VOBA and Reinsurance Recoverables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (2) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 0 |
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 | 3 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | 0 |
Ending balance | 3 |
OTTI | Policyholders’ Dividends | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (46) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 22 |
Ending balance | (24) |
OTTI | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (94) |
Net investment gains (losses) on investments arising during the period | 6 |
Reclassification adjustment for (gains) losses included in net income | 25 |
Reclassification adjustment for OTTI losses excluded from net income | 0 |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | 0 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (9) |
Ending balance | (72) |
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 | 147 |
Net investment gains (losses) on investments arising during the period | (7) |
Reclassification adjustment for (gains) losses included in net income | (31) |
Reclassification adjustment for OTTI losses excluded from net income | (1) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | 0 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 13 |
Ending balance | $ 121 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 17,074 | |
Ending balance | 11,655 | $ 17,074 |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 19,968 | 18,171 |
Ending balance | 15,115 | 19,968 |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ASU 2016-01 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | (847) | |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ASU 2018-02 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | 2,282 | |
All Other | Net Unrealized Gains (Losses) on Investments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 36,112 | |
Net investment gains (losses) on investments arising during the period | (10,160) | |
Reclassification adjustment for (gains) losses included in net income | (434) | |
Reclassification adjustment for OTTI losses excluded from net income | 1 | |
Ending balance | 23,477 | 36,112 |
All Other | Net Unrealized Gains (Losses) on Investments | ASU 2016-01 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | (2,042) | |
All Other | DAC, DSI, VOBA and Reinsurance Recoverables | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (1,580) | |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 825 | |
Ending balance | (755) | (1,580) |
All Other | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (1,243) | |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | 165 | |
Ending balance | (1,078) | (1,243) |
All Other | Policyholders’ Dividends | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (3,631) | |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 1,659 | |
Ending balance | (1,159) | (3,631) |
All Other | Policyholders’ Dividends | ASU 2016-01 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | 813 | |
All Other | Deferred Income Tax (Liability) Benefit | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (9,837) | |
Net investment gains (losses) on investments arising during the period | 2,857 | |
Reclassification adjustment for (gains) losses included in net income | 196 | |
Reclassification adjustment for OTTI losses excluded from net income | 0 | |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (118) | |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | (265) | |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (818) | |
Ending balance | (5,491) | (9,837) |
All Other | Deferred Income Tax (Liability) Benefit | ASU 2016-01 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | 212 | |
All Other | Deferred Income Tax (Liability) Benefit | ASU 2018-02 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | 2,282 | |
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 | 19,821 | |
Net investment gains (losses) on investments arising during the period | (7,303) | |
Reclassification adjustment for (gains) losses included in net income | (238) | |
Reclassification adjustment for OTTI losses excluded from net income | 1 | |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 707 | |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | (100) | |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 841 | |
Ending balance | 14,994 | $ 19,821 |
All Other | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ASU 2016-01 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | (1,017) | |
All Other | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ASU 2018-02 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | $ 2,282 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic earnings per share | ||||
Net income (loss) | $ 200 | $ 496 | $ 1,564 | $ 1,868 |
Less: Income (loss) attributable to noncontrolling interests | 3 | 5 | 4 | 8 |
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards | 4 | 6 | 18 | 23 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Income | $ 193 | $ 485 | $ 1,542 | $ 1,837 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Weighted Average Shares | 419.5 | 428.3 | 420.8 | 429.1 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Per Share Amount | $ 0.46 | $ 1.13 | $ 3.66 | $ 4.28 |
Effect of dilutive securities and compensation programs | ||||
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic | $ 4 | $ 6 | $ 18 | $ 23 |
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted | $ 4 | $ 7 | $ 18 | $ 23 |
Stock options, Weighted Average Shares | 1.5 | 2.1 | 1.7 | 2.2 |
Deferred and long-term compensation programs, Weighted Average Shares | 1.1 | 1 | 1.1 | 1 |
Exchangeable Surplus Notes | $ 6 | $ 5 | $ 11 | $ 9 |
Exchangeable Surplus Notes, Weighted Average Shares | 5.9 | 5.8 | 5.9 | 5.8 |
Diluted earnings per share | ||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Income | $ 199 | $ 489 | $ 1,553 | $ 1,846 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Weighted Average Shares | 428 | 437.2 | 429.5 | 438.1 |
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Per Share Amount | $ 0.46 | $ 1.12 | $ 3.62 | $ 4.21 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2009USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017shares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017shares | |
Debt Instrument [Line Items] | |||||
Exchangeable surplus notes (in shares) | 5,900 | 5,800 | 5,900 | 5,800 | |
Undistributed earnings allocated to participating unvested share-based payment awards, weighted outstanding shares | 4,900 | 5,300 | 4,900 | 5,300 | |
Long-term debt | Exhangeable Surplus Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ | $ 500,000,000 | ||||
Surplus notes principal amount, for each | $ | $ 1,000 | $ 1,000 | $ 1,000 | ||
Interest rate | 5.36% | ||||
Debt instrument, convertible, conversion ratio | 10.1235 | 11.7643 | |||
Exchangeable surplus notes (in shares) | 5,100 | 5,880 | |||
Exchange price of common stock, per share | $ / shares | $ 98.78 | $ 85 | $ 85 |
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 | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0.8 | 0.4 | 0.5 | 0.6 |
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 | 0.8 | 0.4 | 0.5 | 0.3 |
Antidilutive securities excluded from computation of earnings, Exercise Price Per Share | $ 108.61 | $ 110.26 | $ 108.35 | $ 110.32 |
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 | 0.3 |
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 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)divisionsegment | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)divisionsegment | Jun. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Income (loss) before income taxes and equity in earnings of operating joint ventures | $ | $ 250 | $ 608 | $ 1,943 | $ 2,350 |
Number of operating divisions | division | 5 | 5 | ||
Number of reportable segments | segment | 7 | 7 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Adjusted Operating Income and Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
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 | $ 250 | $ 608 | $ 1,943 | $ 2,350 | ||
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 | 1,661 | 1,228 | 3,382 | 2,888 | ||
Operating Segments | Total U.S. Individual Solutions 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 | 550 | 55 | [1] | 1,105 | 641 | [1] |
Operating Segments | Total U.S. Individual Solutions 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 | 507 | 612 | 1,026 | 1,080 | ||
Operating Segments | Total U.S. Individual Solutions 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 | 43 | (557) | 79 | (439) | ||
Operating Segments | Total U.S. Workplace Solutions 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 | 359 | 444 | [1] | 731 | 875 | [1] |
Operating Segments | Total U.S. Workplace Solutions 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 | 277 | 308 | 594 | 705 | ||
Operating Segments | Total U.S. Workplace Solutions 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 | 82 | 136 | 137 | 170 | ||
Operating Segments | Total PGIM 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 | 254 | 218 | [1] | 486 | 414 | [1] |
Operating Segments | Total PGIM division | PGIM | ||||||
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 | 254 | 218 | 486 | 414 | ||
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 | 784 | 823 | 1,640 | 1,622 | ||
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 | 784 | 823 | 1,640 | 1,622 | ||
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 | (286) | (312) | (580) | (664) | ||
Operating Segments | Total Corporate and Other | Corporate and Other operations | ||||||
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 | (286) | (312) | (580) | (664) | ||
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 | 393 | (1,377) | 480 | (1,443) | ||
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 | (116) | 698 | (139) | 802 | ||
Segment Reconciling Items | Investment gains (losses) on assets supporting experience-rated contractholder 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 | (193) | 201 | (596) | 245 | ||
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 | 85 | (145) | 503 | (157) | ||
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 | (23) | (14) | (49) | (42) | ||
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 | (31) | (18) | (40) | 16 | ||
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 | $ (1,526) | $ 35 | $ (1,598) | $ 41 | ||
[1] | Prior period divisional subtotals are presented on a basis consistent with the Company’s new organizational structure effective in the fourth quarter of 2017. Individual segment results and consolidated totals remain unchanged. 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, 2017. |
Segment Information (Reconcil97
Segment Information (Reconciliation of Select Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 14,655 | $ 13,441 | $ 28,412 | $ 27,111 | |||
Total Assets | 819,860 | 819,860 | $ 832,136 | ||||
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 13,043 | 13,028 | 25,918 | 25,035 | |||
Total Assets | 759,077 | 759,077 | 769,002 | ||||
Operating Segments | Total U.S. Individual Solutions division | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 2,717 | 1,960 | [1] | 5,394 | 4,620 | [1] | |
Total Assets | 261,118 | 261,118 | 267,651 | ||||
Operating Segments | Total U.S. Individual Solutions division | Individual Annuities | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 1,266 | 1,306 | 2,518 | 2,521 | |||
Total Assets | 176,798 | 176,798 | 183,666 | ||||
Operating Segments | Total U.S. Individual Solutions division | Individual Life | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 1,451 | 654 | 2,876 | 2,099 | |||
Total Assets | 84,320 | 84,320 | 83,985 | ||||
Operating Segments | Total U.S. Workplace Solutions division | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 4,412 | 4,969 | [1] | 7,917 | 8,289 | [1] | |
Total Assets | 218,693 | 218,693 | 225,204 | ||||
Operating Segments | Total U.S. Workplace Solutions division | Retirement | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 2,988 | 3,607 | 5,077 | 5,544 | |||
Total Assets | 177,753 | 177,753 | 183,629 | ||||
Operating Segments | Total U.S. Workplace Solutions division | Group Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 1,424 | 1,362 | 2,840 | 2,745 | |||
Total Assets | 40,940 | 40,940 | 41,575 | ||||
Operating Segments | Total PGIM division | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 816 | 787 | [1] | 1,642 | 1,543 | [1] | |
Total Assets | 47,253 | 47,253 | 49,944 | ||||
Operating Segments | Total PGIM division | PGIM | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 816 | 787 | 1,642 | 1,543 | |||
Total Assets | 47,253 | 47,253 | 49,944 | ||||
Operating Segments | Total International Insurance division | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 5,288 | 5,483 | 11,328 | 10,892 | |||
Total Assets | 217,537 | 217,537 | 211,647 | ||||
Operating Segments | Total International Insurance division | International Insurance | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 5,288 | 5,483 | 11,328 | 10,892 | |||
Total Assets | 217,537 | 217,537 | 211,647 | ||||
Operating Segments | Total Corporate and Other | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (190) | (171) | (363) | (309) | |||
Total Assets | 14,476 | 14,476 | 14,556 | ||||
Operating Segments | Total Corporate and Other | Corporate and Other operations | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (190) | (171) | (363) | (309) | |||
Total Assets | 14,476 | 14,476 | 14,556 | ||||
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 393 | (1,377) | 480 | (1,443) | |||
Segment Reconciling Items | Charges related to realized investment gains (losses), net | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (92) | (69) | (163) | (91) | |||
Segment Reconciling Items | Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (193) | 201 | (596) | 245 | |||
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | (27) | (19) | (53) | (50) | |||
Segment Reconciling Items | Closed Block division | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 1,388 | 1,449 | 2,551 | 3,006 | |||
Total Assets | 60,783 | 60,783 | $ 63,134 | ||||
Segment Reconciling Items | Other divested businesses | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | 143 | 228 | 275 | 409 | |||
Intersegment Eliminations | Total PGIM division | PGIM | |||||||
Segment Reporting Information [Line Items] | |||||||
Revenues | $ 185 | $ 181 | $ 369 | $ 353 | |||
[1] | Prior period divisional subtotals are presented on a basis consistent with the Company’s new organizational structure effective in the fourth quarter of 2017. Individual segment results and consolidated totals remain unchanged. 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, 2017. |
Commitments and Contingent Li98
Commitments and Contingent Liabilities (Commitments and Guarantees) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments and Contingent Liabilities [Line Items] | ||
Fair value of collateral supporting these assets | $ 457 | $ 625 |
Commitments | Commercial Mortgage Loans | ||
Commitments and Contingent Liabilities [Line Items] | ||
Total outstanding mortgage loan commitments | 3,101 | 2,772 |
Portion of commitment where prearrangement to sell to investor exists | 1,151 | 435 |
Expected to be funded from the GA and other operations outside the SA | ||
Commitments and Contingent Liabilities [Line Items] | ||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 6,507 | 6,319 |
Expected to be funded from separate accounts | ||
Commitments and Contingent Liabilities [Line Items] | ||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 118 | 141 |
Indemnifications | Securities Lending Transactions | ||
Commitments and Contingent Liabilities [Line Items] | ||
Indemnification provided to certain securities lending clients | 5,440 | 4,619 |
Fair value of related collateral associated with above indemnifications | 5,568 | 4,722 |
Accrued liability associated with guarantee | 0 | 0 |
Indemnifications | Serviced Mortgage Loans | ||
Commitments and Contingent Liabilities [Line Items] | ||
Maximum exposure under indemnification agreements for mortgage loans serviced by the Company | 1,674 | 1,609 |
First-loss exposure portion of above | 501 | 483 |
Accrued liability associated with guarantee | 15 | 14 |
Guarantees of Asset Values | ||
Commitments and Contingent Liabilities [Line Items] | ||
Guaranteed value of third-parties’ assets | 77,495 | 77,290 |
Fair value of collateral supporting these assets | 76,469 | 77,651 |
Asset (liability) associated with guarantee, carried at fair value | 2 | (1) |
Other Guarantees | ||
Commitments and Contingent Liabilities [Line Items] | ||
Other guarantees where amount can be determined | 84 | 31 |
Accrued liability associated with guarantee | $ 0 | $ 0 |
Commitments and Contingent Li99
Commitments and Contingent Liabilities (Narrative Excluding Litigation) (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Indemnifications | Securities Lending Transactions | |||
Commitments and Contingent Liabilities [Line Items] | |||
Value of collateral provided by the counterparty (equal to or greater than) | 102.00% | ||
Indemnifications | Mortgage | |||
Commitments and Contingent Liabilities [Line Items] | |||
Mortgages subject to loss-sharing arrangements | $ 13,168 | $ 12,892 | |
Weighted-average debt service coverage ratio of mortgages subject to loss-sharing arrangements | 1.88 | 1.82 | |
Weighted-average loan-to-value ratio of mortgages subject to loss-sharing arrangements | 60.00% | 59.00% | |
Losses related to indemnifications that were settled | $ 0 | $ 0 | |
Indemnifications | Minimum | Mortgage | |||
Commitments and Contingent Liabilities [Line Items] | |||
Percentage share of losses incurred on certain loans serviced | 2.00% | ||
Indemnifications | Maximum | Mortgage | |||
Commitments and Contingent Liabilities [Line Items] | |||
Percentage share of losses incurred on certain loans serviced | 20.00% | ||
Yield Maintenance Guarantee | |||
Commitments and Contingent Liabilities [Line Items] | |||
Guarantees related to certain investments the Company sold | $ 31 | $ 31 |
Commitments and Contingent L100
Commitments and Contingent Liabilities (Litigation Narrative) (Details) $ in Millions | Jun. 30, 2018USD ($) |
Loss Contingencies [Line Items] | |
Estimate of possible losses in excess of accruals (less than) for litigation and regulatory matters | $ 250 |