Document and Entity Information
Document and Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 001-16707 | |
Entity Registrant Name | PRUDENTIAL FINANCIAL INC | |
Entity Central Index Key | 0001137774 | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-3703799 | |
Entity Address, Address Line One | 751 Broad Street | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07102 | |
City Area Code | 973 | |
Local Phone Number | 802-6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 402 | |
Common Class A | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, Par Value $.01 | |
Trading Symbol | PRU | |
Security Exchange Name | NYSE | |
5.75% Junior Subordinated Note | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.75% Junior Subordinated Notes | |
Trading Symbol | PJH | |
Security Exchange Name | NYSE | |
5.70% Junior Subordinated Notes | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.70% Junior Subordinated Notes | |
Trading Symbol | PRH | |
Security Exchange Name | NYSE | |
5.625% Junior Subordinated Notes | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.625% Junior Subordinated Notes | |
Trading Symbol | PRS | |
Security Exchange Name | NYSE |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2019-$333,648; 2018-$331,745) | [1] | $ 383,390 | $ 353,656 |
Fixed maturities, held-to-maturity, at amortized cost (fair value: 2019-$2,365; 2018-$2,372) | [1] | 2,009 | 2,013 |
Fixed maturities, trading, at fair value (amortized cost: 2019-$3,512; 2018-$3,392) | [1] | 3,755 | 3,243 |
Assets supporting experience-rated contractholder liabilities, at fair value | [1] | 21,843 | 21,254 |
Equity securities, at fair value (cost: 2019-$5,230; 2018-$5,219) | [1] | 6,804 | 6,238 |
Commercial mortgage and other loans | [1] | 61,228 | 59,830 |
Policy loans | 12,030 | 12,016 | |
Other invested assets (includes $5,453 and $5,524 measured at fair value at March 31, 2019 and December 31, 2018, respectively) | [1] | 15,081 | 14,526 |
Short-term Investments | 5,872 | 6,469 | |
Total investments | 512,012 | 479,245 | |
Cash and cash equivalents | [1] | 15,421 | 15,353 |
Accrued investment income | [1] | 3,355 | 3,318 |
Deferred policy acquisition costs | 19,540 | 20,058 | |
Value of business acquired | 1,227 | 1,850 | |
Other assets | [1] | 18,690 | 16,118 |
Separate account assets | 303,580 | 279,136 | |
TOTAL ASSETS | 873,825 | 815,078 | |
LIABILITIES | |||
Future policy benefits | 285,527 | 273,846 | |
Policyholders’ account balances | 151,428 | 150,338 | |
Policyholders’ dividends | 6,558 | 4,110 | |
Securities sold under agreements to repurchase | 9,741 | 9,950 | |
Cash collateral for loaned securities | 4,235 | 3,929 | |
Income taxes | 11,485 | 7,936 | |
Short-term debt | 2,659 | 2,451 | |
Long-term debt | 17,841 | 17,378 | |
Other liabilities | [1] | 17,372 | 16,018 |
Notes issued by consolidated variable interest entities (includes $817 and $595 measured at fair value under the fair value option at March 31, 2019 and December 31, 2018, respectively) | [1] | 1,246 | 955 |
Separate account liabilities | 303,580 | 279,136 | |
Total liabilities | 811,672 | 766,047 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
EQUITY | |||
Preferred Stock ($.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, 2019 and December 31, 2018) | 6 | 6 | |
Additional paid-in capital | 24,825 | 24,828 | |
Common Stock held in treasury, at cost (257,129,965 and 249,398,887 shares at June 30, 2019 and December 31, 2018, respectively) | (18,416) | (17,593) | |
Accumulated other comprehensive income (loss) | 23,982 | 10,906 | |
Retained earnings | 31,263 | 30,470 | |
Total Prudential Financial, Inc. equity | 61,660 | 48,617 | |
Noncontrolling interests | 493 | 414 | |
Total equity | 62,153 | 49,031 | |
TOTAL LIABILITIES AND EQUITY | $ 873,825 | $ 815,078 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Fixed Maturities, AFS, amortized cost | $ 340,564 | $ 331,745 | |
Fixed Maturities, HTM, at fair value | 2,410 | 2,372 | |
Fixed Maturities, Trading, amortized cost | 3,807 | 3,392 | |
Equity securities, AFS, amortized cost | 5,205 | 5,219 | |
Commercial mortgage and other loans | [1] | 61,228 | 59,830 |
Other invested assets, at fair value | 5,567 | 5,524 | |
Notes issued by consolidated VIEs | [1] | $ 1,246 | $ 955 |
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 | 257,129,965 | 249,398,887 | |
Fair value option | |||
Commercial mortgage and other loans | $ 645 | $ 763 | |
Notes issued by consolidated VIEs | $ 816 | $ 595 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Unaudited Interim Consolidate_3
Unaudited Interim Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES | ||||
Premiums | $ 8,135 | $ 7,438 | $ 16,035 | $ 14,749 |
Policy charges and fee income | 1,473 | 1,480 | 2,944 | 2,984 |
Net investment income | 4,390 | 4,096 | 8,606 | 8,094 |
Asset management and service fees | 1,083 | 1,010 | 2,099 | 2,036 |
Other income (loss) | 643 | (54) | 1,897 | (561) |
Realized investment gains (losses), net: | ||||
Other-than-temporary impairments on fixed maturity securities | (77) | (58) | (112) | (97) |
Other-than-temporary impairments on fixed maturity securities transferred to Other comprehensive income | 25 | 0 | 13 | 0 |
Other realized investment gains (losses), net | (284) | 743 | (1,003) | 1,207 |
Total realized investment gains (losses), net | (336) | 685 | (1,102) | 1,110 |
Total revenues | 15,388 | 14,655 | 30,479 | 28,412 |
BENEFITS AND EXPENSES | ||||
Policyholders’ benefits | 8,877 | 9,512 | 17,315 | 17,187 |
Interest credited to policyholders’ account balances | 1,278 | 894 | 2,623 | 1,444 |
Dividends to policyholders | 437 | 540 | 1,014 | 868 |
Amortization of deferred policy acquisition costs | 782 | 613 | 1,217 | 1,201 |
General and administrative expenses | 3,138 | 2,846 | 6,294 | 5,769 |
Total benefits and expenses | 14,512 | 14,405 | 28,463 | 26,469 |
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 876 | 250 | 2,016 | 1,943 |
Total income tax expense (benefit) | 162 | 68 | 394 | 420 |
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 714 | 182 | 1,622 | 1,523 |
Equity in earnings of operating joint ventures, net of taxes | 24 | 18 | 53 | 41 |
NET INCOME (LOSS) | 738 | 200 | 1,675 | 1,564 |
Less: Income (loss) attributable to noncontrolling interests | 30 | 3 | 35 | 4 |
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | $ 708 | $ 197 | $ 1,640 | $ 1,560 |
Basic earnings per share-Common Stock: | ||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ 1.73 | $ 0.46 | $ 3.98 | $ 3.66 |
Diluted earnings per share-Common Stock: | ||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ 1.71 | $ 0.46 | $ 3.93 | $ 3.62 |
Unaudited Interim Consolidate_4
Unaudited Interim Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 738 | $ 200 | $ 1,675 | $ 1,564 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments for the period | 213 | (703) | 108 | (41) |
Net unrealized investment gains (losses) | 8,506 | (3,326) | 16,795 | (7,992) |
Defined benefit pension and postretirement unrecognized periodic benefit (cost) | 17 | 75 | 81 | 129 |
Total | 8,736 | (3,954) | 16,984 | (7,904) |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 1,966 | (838) | 3,910 | (1,682) |
Other comprehensive income (loss), net of taxes | 6,770 | (3,116) | 13,074 | (6,222) |
Comprehensive income (loss) | 7,508 | (2,916) | 14,749 | (4,658) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 36 | (7) | 40 | 7 |
Comprehensive income (loss) attributable to Prudential Financial, Inc. | $ 7,472 | $ (2,909) | $ 14,709 | $ (4,665) |
Unaudited Interim Consolidate_5
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, 2017 | $ 54,511 | $ 6 | $ 24,769 | $ 28,671 | $ (16,284) | $ 17,074 | $ 54,236 | $ 275 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock acquired | (375) | (375) | (375) | |||||
Contributions from noncontrolling interests | 61 | 61 | ||||||
Distributions to noncontrolling interests | (5) | (5) | ||||||
Stock-based compensation programs | 55 | (47) | 102 | 55 | ||||
Dividends declared on Common Stock | (387) | (387) | (387) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 1,364 | 1,363 | 1,363 | 1 | ||||
Other comprehensive income (loss), net of tax | (3,106) | (3,119) | (3,119) | 13 | ||||
Comprehensive income (loss) | (1,742) | (1,756) | 14 | |||||
Balance at Mar. 31, 2018 | 52,175 | 6 | 24,722 | 28,898 | (16,557) | 14,761 | 51,830 | 345 |
Balance at Dec. 31, 2017 | 54,511 | 6 | 24,769 | 28,671 | (16,284) | 17,074 | 54,236 | 275 |
Comprehensive income: | ||||||||
Net income (loss) | 1,564 | |||||||
Other comprehensive income (loss), net of tax | (6,222) | |||||||
Comprehensive income (loss) | (4,658) | |||||||
Balance at Jun. 30, 2018 | 48,592 | 6 | 24,763 | 28,713 | (16,905) | 11,655 | 48,232 | 360 |
Balance at Mar. 31, 2018 | 52,175 | 6 | 24,722 | 28,898 | (16,557) | 14,761 | 51,830 | 345 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock acquired | (375) | (375) | (375) | |||||
Contributions from noncontrolling interests | 38 | 38 | ||||||
Distributions to noncontrolling interests | (16) | (16) | ||||||
Stock-based compensation programs | 68 | 41 | 27 | 68 | ||||
Dividends declared on Common Stock | (382) | (382) | (382) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 200 | 197 | 197 | 3 | ||||
Other comprehensive income (loss), net of tax | (3,116) | (3,106) | (3,106) | (10) | ||||
Comprehensive income (loss) | (2,916) | (2,909) | (7) | |||||
Balance at Jun. 30, 2018 | 48,592 | 6 | 24,763 | 28,713 | (16,905) | 11,655 | 48,232 | 360 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 9 | |||||||
Balance at Dec. 31, 2018 | 49,031 | 6 | 24,828 | 30,470 | (17,593) | 10,906 | 48,617 | 414 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock acquired | (500) | (500) | (500) | |||||
Contributions from noncontrolling interests | 26 | 26 | ||||||
Distributions to noncontrolling interests | (4) | (4) | ||||||
Stock-based compensation programs | 85 | (46) | 131 | 85 | ||||
Dividends declared on Common Stock | (415) | (415) | (415) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 937 | 932 | 932 | 5 | ||||
Other comprehensive income (loss), net of tax | 6,304 | 6,305 | 6,305 | (1) | ||||
Comprehensive income (loss) | 7,241 | 7,237 | 4 | |||||
Balance at Mar. 31, 2019 | 55,450 | 6 | 24,782 | 30,966 | (17,962) | 17,218 | 55,010 | 440 |
Balance at Dec. 31, 2018 | 49,031 | 6 | 24,828 | 30,470 | (17,593) | 10,906 | 48,617 | 414 |
Comprehensive income: | ||||||||
Net income (loss) | 1,675 | |||||||
Other comprehensive income (loss), net of tax | 13,074 | |||||||
Comprehensive income (loss) | 14,749 | |||||||
Balance at Jun. 30, 2019 | 62,153 | 6 | 24,825 | 31,263 | (18,416) | 23,982 | 61,660 | 493 |
Balance at Mar. 31, 2019 | 55,450 | 6 | 24,782 | 30,966 | (17,962) | 17,218 | 55,010 | 440 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock acquired | (500) | (500) | (500) | |||||
Contributions from noncontrolling interests | 25 | 25 | ||||||
Distributions to noncontrolling interests | (16) | (16) | ||||||
Consolidation (deconsolidation) of Noncontrolling Interest | 8 | 8 | ||||||
Stock-based compensation programs | 89 | 43 | 46 | 89 | ||||
Dividends declared on Common Stock | (411) | (411) | (411) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 738 | 708 | 708 | 30 | ||||
Other comprehensive income (loss), net of tax | 6,770 | 6,764 | 6,764 | 6 | ||||
Comprehensive income (loss) | 7,508 | 7,472 | 36 | |||||
Balance at Jun. 30, 2019 | $ 62,153 | $ 6 | $ 24,825 | $ 31,263 | $ (18,416) | $ 23,982 | $ 61,660 | $ 493 |
Unaudited Interim Consolidate_6
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 1,675 | $ 1,564 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Realized investment (gains) losses, net | 1,102 | (1,110) | |
Policy charges and fee income | (1,483) | (1,058) | |
Interest credited to policyholders’ account balances | 2,623 | 1,444 | |
Depreciation and amortization | (89) | 48 | |
(Gains) losses on assets supporting experience-rated contractholder liabilities, net | (741) | 596 | |
Change in: | |||
Deferred policy acquisition costs | (258) | (203) | |
Future policy benefits and other insurance liabilities | 5,603 | 5,762 | |
Income taxes | (382) | (96) | |
Derivatives, net | 2,010 | (1,041) | |
Other, net | (1,736) | 769 | |
Cash flows from (used in) operating activities | 8,324 | 6,675 | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 25,681 | 30,599 | |
Fixed maturities, held-to-maturity | 35 | 56 | |
Fixed maturities, trading | 187 | 410 | |
Assets supporting experience-rated contractholder liabilities | 9,014 | 9,650 | |
Equity securities | 1,377 | 1,965 | |
Commercial mortgage and other loans | 2,885 | 2,572 | |
Policy loans | 1,154 | 1,176 | |
Other invested assets | 724 | 908 | |
Short-term investments | 16,682 | 18,190 | |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (32,847) | (34,922) | |
Fixed maturities, trading | (570) | (483) | |
Assets supporting experience-rated contractholder liabilities | (8,813) | (9,560) | |
Equity securities | (1,376) | (1,826) | |
Commercial mortgage and other loans | (4,352) | (5,525) | |
Policy loans | (945) | (1,002) | |
Other invested assets | (1,011) | (1,154) | |
Short-term investments | (16,278) | (17,138) | |
Derivatives, net | 638 | (271) | |
Other, net | (222) | (134) | |
Cash flows from (used in) investing activities | (8,037) | (6,489) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Policyholders’ account deposits | 13,280 | 14,826 | |
Policyholders’ account withdrawals | (13,045) | (14,076) | |
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 97 | 1,094 | |
Cash dividends paid on Common Stock | (827) | (769) | |
Net change in financing arrangements (maturities 90 days or less) | 166 | (103) | |
Common Stock acquired | (983) | (739) | |
Common Stock reissued for exercise of stock options | 75 | 74 | |
Proceeds from the issuance of debt (maturities longer than 90 days) | 1,439 | 1,194 | |
Repayments of debt (maturities longer than 90 days) | (924) | (848) | |
Proceeds from notes issued by consolidated VIEs | 925 | 0 | |
Repayments of notes issued by consolidated VIEs | (638) | 0 | |
Other, net | 196 | (244) | |
Cash flows from (used in) financing activities | (239) | 409 | |
Effect of foreign exchange rate changes on cash balances | 27 | (71) | |
NET INCREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS | 75 | 524 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF YEAR | 15,495 | 14,536 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD | 15,570 | 15,060 | |
NON-CASH TRANSACTIONS DURING THE PERIOD | |||
Treasury Stock shares issued for stock-based compensation programs | 168 | 132 | |
RECONCILIATION TO THE UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||
Cash and cash equivalents | 15,421 | [1] | 14,918 |
Restricted cash and restricted cash equivalents (included in “Other assets”) | 149 | 142 | |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 15,570 | 15,060 | |
Pension Risk Transfer | |||
NON-CASH TRANSACTIONS DURING THE PERIOD | |||
Assets received, excluding cash and cash equivalents | 445 | 0 | |
Liabilities assumed | 447 | 977 | |
Net cash received | $ 2 | $ 977 | |
[1] | 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, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Financial, Inc. (“Prudential Financial”) and its subsidiaries (collectively, “Prudential” or the “Company”) 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 PGIM division is comprised of the PGIM segment, the global investment management businesses of the Company. The U.S. Workplace Solutions division consists of the Retirement and Group Insurance segments. The U.S. Individual Solutions division consists of the Individual Annuities and Individual Life segments. The Company also collectively refers to the U.S. Workplace Solutions division and the U.S. Individual Solutions division as the U.S. Financial Wellness businesses. 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 and Run-off Businesses that are included in the Company’s Corporate and Other operations. Divested and Run-off Businesses are comprised of businesses that have been, or will be, sold or exited, including businesses that have been placed in wind down status that do not qualify for “discontinued operations” accounting treatment under generally accepted accounting principles in the United States of America (“U.S. GAAP”). 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 or placed in run-off, excluding the Closed Block division. Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with 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, 2018 . 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, 2019 | |
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 2016-02 Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), using the optional transition method with a cumulative-effect adjustment recorded as of the beginning of the period of adoption. This ASU substantially changes a lessee’s accounting for leases and requires the recording, on balance sheet, using a dual lease accounting model, of a “right-of-use” asset and lease liability. Leases are to be classified as either operating or finance leases. Under the standard, for operating leases, lessees recognize total lease expenses using a straight-line method and finance leases are treated as the purchase of an asset on a financing basis. 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 leveraged lease accounting model for lessors and real estate specific provisions (i.e., those related to sale-leaseback transactions); it does allow, however, a grandfathering of the leveraged lease accounting model for those existing leases that are being accounted for using such model. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the standard which eliminated the need to reassess: (a) whether any existing contracts are, or contain, leases; (b) the lease classification for any existing leases (i.e., all existing lessee arrangements that were classified as operating leases before are now classified as operating leases, and all existing lessee arrangements that were classified as capital leases before are now classified as finance leases); and (c) initial direct costs for any existing leases. The Company did not elect the practical expedient, which may be applied separately, to use hindsight in determining the lease term and in assessing impairment of the Company’s right-of-use assets. Adoption of the standard resulted in the recording of right-of-use assets and lease liabilities related to existing operating leases of approximately $600 million as of January 1, 2019. Adoption of the standard also resulted in additional required disclosures. See Note 7 for additional information. Other ASU adopted during the six months ended June 30, 2019 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 which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial. 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. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures. January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and accumulated other comprehensive income (loss) (“AOCI”) related to ineffectiveness of the hedge instruments outstanding at the date of adoption was immaterial. See Note 5 for additional required disclosures. ASU issued but not yet adopted as of June 30, 2019 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In July 2019, the FASB made a tentative decision to defer the effective date of this ASU to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. A final decision regarding the effective date is expected in the third quarter of 2019. This ASU will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other less significant changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method. The options for method of adoption and the impacts of such methods are under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income (“OCI”). As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in-force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of deferred acquisition costs (DAC) and other balances Requires DAC and other balances, such as unearned revenue reserves and deferred sales inducements, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances. The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk (“NPR”) recognized in OCI. An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. Other ASU issued but not yet adopted as of June 30, 2019 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326): 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 continuing to develop its expected credit loss models and related systems, processes and controls for assets held on the Consolidated Statement of Financial Position at amortized cost, the most significant of which are the commercial mortgage and other loans. The allowance for credit losses will likely increase when the ASU is adopted to cover expected credit losses over the lifetime of the commercial mortgage and other loans, incorporating reasonable and supportable forecasts and expected changes in future economic conditions. The extent of the impact of adoption of this ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements will depend on various factors including the economic environment and the size and type of the commercial mortgage and other loans held on the date of adoption. 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 plan to early adopt this ASU. 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, 2019 | |
Investments [Abstract] | |
Investments | INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2019 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 $ 29,571 $ 4,973 $ 89 $ 34,455 $ 0 Obligations of U.S. states and their political subdivisions 9,889 1,314 1 11,202 0 Foreign government bonds 98,745 22,407 70 121,082 0 U.S. public corporate securities 85,282 8,653 417 93,518 0 U.S. private corporate securities(1) 33,043 2,121 186 34,978 0 Foreign public corporate securities 27,450 2,980 119 30,311 (3 ) Foreign private corporate securities 26,383 1,057 672 26,768 0 Asset-backed securities(2) 12,602 174 41 12,735 (90 ) Commercial mortgage-backed securities 14,556 607 9 15,154 0 Residential mortgage-backed securities(3) 3,043 148 4 3,187 (1 ) Total fixed maturities, available-for-sale(1) $ 340,564 $ 44,434 $ 1,608 $ 383,390 $ (94 ) June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 900 $ 303 $ 0 $ 1,203 Foreign public corporate securities 671 70 0 741 Foreign private corporate securities(5) 96 3 0 99 Residential mortgage-backed securities(3) 342 25 0 367 Total fixed maturities, held-to-maturity(5) $ 2,009 $ 401 $ 0 $ 2,410 __________ (1) Excludes notes with amortized cost of $4,356 million (fair value, $4,356 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans, sub-prime mortgages, credit cards 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 $372 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 $4,879 million (fair value, $5,190 million ), which have been offset with the associated payables under a netting agreement. December 31, 2018 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 $ 28,242 $ 2,994 $ 642 $ 30,594 $ 0 Obligations of U.S. states and their political subdivisions 9,880 676 63 10,493 0 Foreign government bonds 96,710 16,714 314 113,110 0 U.S. public corporate securities 82,257 3,912 2,754 83,415 (2 ) U.S. private corporate securities(1) 32,450 1,151 581 33,020 0 Foreign public corporate securities 27,671 2,061 531 29,201 (3 ) Foreign private corporate securities 25,314 434 1,217 24,531 0 Asset-backed securities(2) 12,888 162 77 12,973 (160 ) Commercial mortgage-backed securities 13,396 99 180 13,315 0 Residential mortgage-backed securities(3) 2,937 99 32 3,004 (1 ) Total fixed maturities, available-for-sale(1) $ 331,745 $ 28,302 $ 6,391 $ 353,656 $ (166 ) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 885 $ 269 $ 0 $ 1,154 Foreign public corporate securities 668 64 0 732 Foreign private corporate securities(5) 95 3 0 98 Residential mortgage-backed securities(3) 365 23 0 388 Total fixed maturities, held-to-maturity(5) $ 2,013 $ 359 $ 0 $ 2,372 __________ (1) Excludes notes with amortized cost of $4,216 million (fair value, $4,216 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 $356 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 $4,879 million (fair value, $4,879 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, 2019 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 $ 370 $ 0 $ 2,153 $ 89 $ 2,523 $ 89 Obligations of U.S. states and their political subdivisions 2 0 49 1 51 1 Foreign government bonds 393 56 503 14 896 70 U.S. public corporate securities 2,895 88 6,607 329 9,502 417 U.S. private corporate securities 1,124 67 2,816 119 3,940 186 Foreign public corporate securities 595 32 1,124 87 1,719 119 Foreign private corporate securities 1,663 28 7,243 644 8,906 672 Asset-backed securities 2,768 18 4,035 23 6,803 41 Commercial mortgage-backed securities 20 0 852 9 872 9 Residential mortgage-backed securities 137 0 336 4 473 4 Total $ 9,967 $ 289 $ 25,718 $ 1,319 $ 35,685 $ 1,608 __________ (1) As of June 30, 2019 , there were no securities classified as held-to-maturity in a gross unrealized loss position. December 31, 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 $ 3,007 $ 67 $ 6,986 $ 575 $ 9,993 $ 642 Obligations of U.S. states and their political subdivisions 1,725 25 999 38 2,724 63 Foreign government bonds 2,369 136 3,515 178 5,884 314 U.S. public corporate securities 34,064 1,570 13,245 1,184 47,309 2,754 U.S. private corporate securities 8,923 225 7,985 356 16,908 581 Foreign public corporate securities 7,363 308 2,928 223 10,291 531 Foreign private corporate securities 12,218 692 4,468 525 16,686 1,217 Asset-backed securities 8,255 70 669 7 8,924 77 Commercial mortgage-backed securities 1,781 14 4,733 166 6,514 180 Residential mortgage-backed securities 194 1 1,042 31 1,236 32 Total $ 79,899 $ 3,108 $ 46,570 $ 3,283 $ 126,469 $ 6,391 __________ (1) As of December 31, 2018 , there was $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, 2019 and December 31, 2018 , the gross unrealized losses on fixed maturity securities were composed of $1,096 million and $5,391 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 $512 million and $1,000 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of June 30, 2019 , the $1,319 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the consumer non-cyclical, energy and utility sectors. As of December 31, 2018 , the $3,283 million of gross unrealized losses of twelve months or more were concentrated in U.S. government bonds and in the Company’s corporate securities within the utility, consumer non-cyclical and finance 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, 2018 , the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either June 30, 2019 or December 31, 2018 . 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, 2019 , 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, 2019 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Fixed maturities: Due in one year or less $ 16,207 $ 16,756 $ 60 $ 61 Due after one year through five years 50,780 54,131 114 117 Due after five years through ten years 66,712 72,924 596 666 Due after ten years(1) 176,664 208,503 897 1,199 Asset-backed securities 12,602 12,735 0 0 Commercial mortgage-backed securities 14,556 15,154 0 0 Residential mortgage-backed securities 3,043 3,187 342 367 Total $ 340,564 $ 383,390 $ 2,009 $ 2,410 __________ (1) Excludes available-for-sale notes with amortized cost of $4,356 million (fair value, $4,356 million ) and held-to-maturity notes with amortized cost of $4,879 million (fair value, $5,190 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, 2019 2018 2019 2018 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 6,659 $ 9,489 $ 16,821 $ 19,074 Proceeds from maturities/prepayments 4,704 6,553 9,192 11,779 Gross investment gains from sales and maturities 228 410 711 784 Gross investment losses from sales and maturities (95 ) (187 ) (283 ) (444 ) OTTI recognized in earnings(2) (64 ) (58 ) (99 ) (97 ) Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(3) $ 23 $ 23 $ 37 $ 59 __________ (1) Includes $332 million and $254 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2019 and 2018 , respectively. (2) Excludes the portion of OTTI amounts remaining in 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 $2 million and $3 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2019 and 2018 , 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 2019 2018 2019 2018 (in millions) Credit loss impairments: Balance, beginning of period $ 149 $ 203 $ 140 $ 319 New credit loss impairments 4 0 20 0 Additional credit loss impairments on securities previously impaired 8 0 8 0 Increases due to the passage of time on previously recorded credit losses 2 4 3 6 Reductions for securities which matured, paid down, prepaid or were sold during the period (20 ) (42 ) (27 ) (155 ) Reductions for securities impaired to fair value during the period(1) 0 0 0 (4 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (1 ) (2 ) (2 ) (3 ) Balance, end of period $ 142 $ 163 $ 142 $ 163 __________ (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, 2019 December 31, 2018 Amortized Fair Value Amortized Fair Value (in millions) Short-term investments and cash equivalents $ 371 $ 371 $ 215 $ 215 Fixed maturities: Corporate securities 13,257 13,630 13,258 13,119 Commercial mortgage-backed securities 2,239 2,297 2,346 2,324 Residential mortgage-backed securities(1) 1,002 1,014 828 811 Asset-backed securities(2) 1,595 1,626 1,649 1,665 Foreign government bonds 852 870 1,087 1,083 U.S. government authorities and agencies and obligations of U.S. states 351 402 538 577 Total fixed maturities(3) 19,296 19,839 19,706 19,579 Equity securities 1,452 1,633 1,378 1,460 Total assets supporting experience-rated contractholder liabilities(4) $ 21,119 $ 21,843 $ 21,299 $ 21,254 __________ (1) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (2) Includes collateralized loan obligations, auto loans, education loans, credit-tranched securities collateralized by sub-prime mortgages and other asset types. Collateralized loan obligations at fair value were $1,025 million and $1,028 million as of June 30, 2019 and December 31, 2018 , respectively, all of which were rated AAA. (3) As a percentage of amortized cost, 93% of the portfolio was considered high or highest quality based on NAIC or equivalent ratings, as of both June 30, 2019 and December 31, 2018 . (4) As a percentage of amortized cost, 78% of the portfolio consisted of public securities as of both June 30, 2019 and December 31, 2018 . The net change in unrealized gains (losses) from assets supporting experience-rated contractholder liabilities still held at period end, recorded within “Other income (loss),” was $300 million and $(198) million during the three months ended June 30, 2019 and 2018 , respectively, and $769 million and $(596) million during the six months ended June 30, 2019 and 2018 , respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss),” was $51 million and $(80) million during the three months ended June 30, 2019 and 2018, respectively, and $581 million and $(271) million during the six months ended June 30, 2019 and 2018, 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 single 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 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, 2019 December 31, 2018 Amortized Fair Value Amortized Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 73,570 $ 90,438 $ 71,952 $ 84,461 Fixed maturities, held-to-maturity 878 1,173 864 1,127 Fixed maturities, trading 23 23 22 22 Assets supporting experience-rated contractholder liabilities 664 682 691 697 Total $ 75,135 $ 92,316 $ 73,529 $ 86,307 June 30, 2019 December 31, 2018 Amortized Fair Value Amortized Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 10,364 $ 13,098 $ 10,339 $ 12,586 Fixed maturities, held-to-maturity 0 0 0 0 Fixed maturities, trading 0 0 0 0 Assets supporting experience-rated contractholder liabilities 15 16 15 15 Total $ 10,379 $ 13,114 $ 10,354 $ 12,601 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, 2019 December 31, 2018 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,984 21.4 % $ 13,280 22.4 % Retail 8,411 13.9 8,639 14.6 Apartments/Multi-Family 16,752 27.7 16,538 28.0 Industrial 12,866 21.2 11,574 19.6 Hospitality 2,168 3.6 1,931 3.3 Other 3,913 6.5 3,846 6.5 Total commercial mortgage loans 57,094 94.3 55,808 94.4 Agricultural property loans 3,420 5.7 3,316 5.6 Total commercial mortgage and agricultural property loans by property type 60,514 100.0 % 59,124 100.0 % Allowance for credit losses (115 ) (123 ) Total net commercial mortgage and agricultural property loans by property type 60,399 59,001 Other loans: Uncollateralized loans 664 660 Residential property loans 143 157 Other collateralized loans 27 17 Total other loans 834 834 Allowance for credit losses (5 ) (5 ) Total net other loans 829 829 Total commercial mortgage and other loans(1) $ 61,228 $ 59,830 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2019 and December 31, 2018 , the net carrying value of these loans was $645 million and $763 million , respectively. As of June 30, 2019 , the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (27%) , Texas (10%) and New York (7%) ) and included loans secured by properties in Europe (6%) , Australia (1%) and Asia (1%) . The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Balance at December 31, 2017 $ 97 $ 3 $ 1 $ 0 $ 5 $ 106 Addition to (release of) allowance for credit losses 23 0 (1 ) 0 0 22 Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 0 0 Balance at December 31, 2018 120 3 0 0 5 128 Addition to (release of) allowance for credit losses (8 ) 0 0 0 0 (8 ) Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 0 0 Balance at June 30, 2019 $ 112 $ 3 $ 0 $ 0 $ 5 $ 120 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, 2019 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 $ 8 $ 0 $ 0 $ 0 $ 0 $ 8 Collectively evaluated for impairment 104 3 0 0 5 112 Total ending balance(1) $ 112 $ 3 $ 0 $ 0 $ 5 $ 120 Recorded investment(2): Individually evaluated for impairment $ 42 $ 19 $ 0 $ 0 $ 0 $ 61 Collectively evaluated for impairment 57,052 3,401 143 27 664 61,287 Total ending balance(1) $ 57,094 $ 3,420 $ 143 $ 27 $ 664 $ 61,348 __________ (1) As of June 30, 2019 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 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 $ 19 $ 0 $ 0 $ 0 $ 0 $ 19 Collectively evaluated for impairment 101 3 0 0 5 109 Total ending balance(1) $ 120 $ 3 $ 0 $ 0 $ 5 $ 128 Recorded investment(2): Individually evaluated for impairment $ 67 $ 35 $ 0 $ 0 $ 2 $ 104 Collectively evaluated for impairment 55,741 3,281 157 17 658 59,854 Total ending balance(1) $ 55,808 $ 3,316 $ 157 $ 17 $ 660 $ 59,958 __________ (1) As of December 31, 2018 , 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, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 30,536 $ 653 $ 81 $ 31,270 60%-69.99% 17,370 596 0 17,966 70%-79.99% 6,638 690 9 7,337 80% or greater 309 92 120 521 Total commercial mortgage loans $ 54,853 $ 2,031 $ 210 $ 57,094 Agricultural property loans June 30, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 3,152 $ 168 $ 17 $ 3,337 60%-69.99% 83 0 0 83 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,235 $ 168 $ 17 $ 3,420 Total commercial mortgage and agricultural property loans June 30, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 33,688 $ 821 $ 98 $ 34,607 60%-69.99% 17,453 596 0 18,049 70%-79.99% 6,638 690 9 7,337 80% or greater 309 92 120 521 Total commercial mortgage and agricultural property loans $ 58,088 $ 2,199 $ 227 $ 60,514 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, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 30,325 $ 538 $ 161 $ 31,024 60%-69.99% 16,538 621 0 17,159 70%-79.99% 6,324 754 41 7,119 80% or greater 332 142 32 506 Total commercial mortgage loans $ 53,519 $ 2,055 $ 234 $ 55,808 Agricultural property loans December 31, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 2,997 $ 198 $ 57 $ 3,252 60%-69.99% 64 0 0 64 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,061 $ 198 $ 57 $ 3,316 Total commercial mortgage and agricultural property loans December 31, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 33,322 $ 736 $ 218 $ 34,276 60%-69.99% 16,602 621 0 17,223 70%-79.99% 6,324 754 41 7,119 80% or greater 332 142 32 506 Total commercial mortgage and agricultural property loans $ 56,580 $ 2,253 $ 291 $ 59,124 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, 2019 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 $ 57,088 $ 6 $ 0 $ 0 $ 6 $ 57,094 $ 21 Agricultural property loans 3,402 0 0 18 18 3,420 22 Residential property loans 140 1 0 2 3 143 2 Other collateralized loans 27 0 0 0 0 27 0 Uncollateralized loans 664 0 0 0 0 664 0 Total $ 61,321 $ 7 $ 0 $ 20 $ 27 $ 61,348 $ 45 __________ (1) As of June 30, 2019 , 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, 2018 . December 31, 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 $ 55,808 $ 0 $ 0 $ 0 $ 0 $ 55,808 $ 66 Agricultural property loans 3,301 0 0 15 15 3,316 18 Residential property loans 154 1 0 2 3 157 3 Other collateralized loans 17 0 0 0 0 17 0 Uncollateralized loans 660 0 0 0 0 660 0 Total $ 59,940 $ 1 $ 0 $ 17 $ 18 $ 59,958 $ 87 __________ (1) As of December 31, 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, 2018 . Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2019 December 31, 2018 (in millions) LPs/LLCs: Equity method: Private equity $ 3,305 $ 3,182 Hedge funds 1,548 1,337 Real estate-related 1,240 1,207 Subtotal equity method 6,093 5,726 Fair value: Private equity 1,637 1,684 Hedge funds 2,128 2,135 Real estate-related 324 296 Subtotal fair value 4,089 4,115 Total LPs/LLCs 10,182 9,841 Real estate held through direct ownership(1) 2,730 2,466 Derivative instruments 1,053 1,155 Other(2) 1,116 1,064 Total other invested assets $ 15,081 $ 14,526 _________ (1) As of June 30, 2019 and December 31, 2018 , real estate held through direct ownership had mortgage debt of $799 million and $776 million , respectively. (2) 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 16 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) Fixed maturities, available-for-sale(1) $ 3,150 $ 3,001 $ 6,238 $ 5,955 Fixed maturities, held-to-maturity(1) 58 57 115 112 Fixed maturities, trading 38 30 72 61 Assets supporting experience-rated contractholder liabilities, at fair value 182 181 367 372 Equity securities, at fair value 51 59 81 94 Commercial mortgage and other loans 627 594 1,227 1,163 Policy loans 152 156 303 308 Other invested assets 271 163 476 304 Short-term investments and cash equivalents 115 82 233 154 Gross investment income 4,644 4,323 9,112 8,523 Less: investment expenses (254 ) (227 ) (506 ) (429 ) Net investment income $ 4,390 $ 4,096 $ 8,606 $ 8,094 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line item as related surplus notes, as conditions are met for right to offset. Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) Fixed maturities(1) $ 69 $ 165 $ 329 $ 243 Commercial mortgage and other loans 4 5 14 17 Investment real estate 0 60 0 62 LPs/LLCs 2 10 (3 ) 16 Derivatives(2) (411 ) 445 (1,443 ) 773 Other 0 0 1 (1 ) Realized investment gains (losses), net $ (336 ) $ 685 $ (1,102 ) $ 1,110 __________ (1) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading. (2) 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 $ 278 $ 190 Fixed maturity securities, available-for-sale—all other 42,548 21,721 Derivatives designated as cash flow hedges(1) 1,017 811 Other investments(2) (23 ) (2 ) Net unrealized gains (losses) on investments $ 43,820 $ 22,720 __________ (1) For more information on cash flow hedges, see Note 5. (2) As of June 30, 2019 , there were no 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, 2019 December 31, 2018 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(1) $ 9,412 $ 20 $ 9,432 $ 9,418 $ 171 $ 9,589 U.S. public corporate securities 0 0 0 19 0 19 Residential mortgage-backed securities(1) 309 0 309 342 0 342 Total securities sold under agreements to repurchase(1)(2) $ 9,721 $ 20 $ 9,741 $ 9,779 $ 171 $ 9,950 __________ (1) Prior period amounts have been updated to conform to current period presentation. (2) 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, 2019 December 31, 2018 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 $ 80 $ 0 $ 80 $ 105 $ 0 $ 105 Obligations of U.S. states and their political subdivisions 58 0 58 88 0 88 Foreign government bonds 499 0 499 325 0 325 U.S. public corporate securities 2,615 0 2,615 2,563 0 2,563 Foreign public corporate securities 773 0 773 693 0 693 Equity securities 210 0 210 155 0 155 Total cash collateral for loaned securities(1) $ 4,235 $ 0 $ 4,235 $ 3,929 $ 0 $ 3,929 __________ (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, 2019 | |
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 4 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. 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) Other Consolidated VIEs(1) June 30, December 31, June 30, December 31, (in millions) Fixed maturities, available-for-sale $ 100 $ 73 $ 291 $ 282 Fixed maturities, held-to-maturity 97 95 846 831 Fixed maturities, trading 1,126 1,076 0 0 Assets supporting experience-rated contractholder liabilities 0 0 5 8 Equity securities 45 41 0 0 Commercial mortgage and other loans 763 730 0 0 Other invested assets 1,866 1,526 84 77 Cash and cash equivalents 166 131 0 0 Accrued investment income 5 5 4 4 Other assets 451 463 748 721 Total assets of consolidated VIEs $ 4,619 $ 4,140 $ 1,978 $ 1,923 Other liabilities $ 290 $ 295 $ 14 $ 17 Notes issued by consolidated VIEs(2) 1,246 955 0 0 Total liabilities of consolidated VIEs $ 1,536 $ 1,250 $ 14 $ 17 __________ (1) Total assets of consolidated VIEs reflect $2,323 million and $2,013 million as of June 30, 2019 and December 31, 2018 , respectively, related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. (2) Recourse is limited to the assets of the respective VIE and does not extend to the general credit of the Company . As of June 30, 2019 and December 31, 2018 , 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 $929 million and $836 million at June 30, 2019 and December 31, 2018 , 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 limited partnerships and limited liability companies (“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 $10,182 million and $9,841 million as of June 30, 2019 and December 31, 2018 , 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, 2019 | |
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, forwards, 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 types of financial contracts that the Company accounts for as derivatives are: • 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 5 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . 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 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 $1,043 million and $1,148 million as of June 30, 2019 and December 31, 2018 , respectively, and total derivative liabilities of $557 million and $127 million as of June 30, 2019 and December 31, 2018 , respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position. Primary Underlying Risk /Instrument Type June 30, 2019 December 31, 2018 Fair Value Fair Value Gross Notional Assets Liabilities Gross Notional Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 3,315 $ 596 $ (78 ) $ 3,885 $ 305 $ (67 ) Interest Rate Forwards 53 1 0 600 26 0 Foreign Currency Foreign Currency Forwards 858 34 (2 ) 722 26 (2 ) Currency/Interest Rate Foreign Currency Swaps 21,245 1,670 (336 ) 20,724 1,520 (358 ) Total Derivatives Designated as Hedge Accounting Instruments $ 25,471 $ 2,301 $ (416 ) $ 25,931 $ 1,877 $ (427 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 138,186 $ 9,604 $ (4,641 ) $ 140,963 $ 5,792 $ (3,435 ) Interest Rate Futures 17,213 3 (7 ) 13,991 23 (2 ) Interest Rate Options 20,798 327 (220 ) 24,002 147 (314 ) Interest Rate Forwards 2,353 21 0 5,049 72 0 Foreign Currency Foreign Currency Forwards 24,444 312 (120 ) 19,849 246 (138 ) Foreign Currency Options 1 0 0 2 0 0 Currency/Interest Rate Foreign Currency Swaps 14,066 827 (420 ) 13,784 773 (421 ) Credit Credit Default Swaps 3,165 103 (2 ) 5,207 33 (23 ) Equity Equity Futures 1,329 0 (5 ) 1,141 0 (8 ) Equity Options 68,244 570 (792 ) 58,693 384 (554 ) Total Return Swaps 17,945 38 (302 ) 17,309 1,131 (86 ) Other Other(1) 1,258 0 0 508 0 0 Synthetic GICs 80,337 1 0 79,215 2 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 389,339 $ 11,806 $ (6,509 ) $ 379,713 $ 8,603 $ (4,981 ) Total Derivatives(2)(3) $ 414,810 $ 14,107 $ (6,925 ) $ 405,644 $ 10,480 $ (5,408 ) __________ (1) “Other” primarily includes derivative contracts used to improve the balance of the Company’s tail longevity and mortality risk. Under these contracts, the Company’s gains (losses) are capped at the notional amount. (2) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $13,672 million and $8,959 million as of June 30, 2019 and December 31, 2018 , respectively, primarily included in “Future policy benefits.” (3) Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position. As of June 30, 2019 , the following amounts were recorded on the Unaudited Interim Consolidated Statements of Financial Position related to the carrying amount of the hedged assets (liabilities) and cumulative basis adjustments included in the carrying amount for fair value hedges. Balance Sheet Line Item in which Hedged Item is Recorded Carrying Amount of the Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities)(1) (in millions) Fixed maturities, available-for-sale, at fair value $ 441 $ 62 Commercial mortgage and other loans $ 24 $ 2 Policyholders’ account balances $ (1,327 ) $ (85 ) Future policy benefits $ (642 ) $ (150 ) ________ (1) There are no fair value hedging adjustments for hedged assets and liabilities for which hedge accounting has been discontinued. 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 GICs, which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2019 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 14,033 $ (13,063 ) $ 970 $ (633 ) $ 337 Securities purchased under agreement to resell 1,257 0 1,257 (1,257 ) 0 Total assets $ 15,290 $ (13,063 ) $ 2,227 $ (1,890 ) $ 337 Offsetting of Financial Liabilities: Derivatives(1) $ 6,913 $ (6,368 ) $ 545 $ (191 ) $ 354 Securities sold under agreement to repurchase 9,741 0 9,741 (9,741 ) 0 Total liabilities $ 16,654 $ (6,368 ) $ 10,286 $ (9,932 ) $ 354 December 31, 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 Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 10,407 $ (9,331 ) $ 1,076 $ (614 ) $ 462 Securities purchased under agreement to resell 986 0 986 (986 ) 0 Total assets $ 11,393 $ (9,331 ) $ 2,062 $ (1,600 ) $ 462 Offsetting of Financial Liabilities: Derivatives(1) $ 5,387 $ (5,281 ) $ 106 $ (45 ) $ 61 Securities sold under agreement to repurchase 9,950 0 9,950 (9,950 ) 0 Total liabilities $ 15,337 $ (5,281 ) $ 10,056 $ (9,995 ) $ 61 __________ (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, 2018 . Fair Value, Cash Flow 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, including the offset of the hedged item in fair value hedge relationships. Three Months Ended June 30, 2019 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (9 ) $ (2 ) $ 0 $ 0 $ 101 $ 80 $ 0 Currency 2 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (7 ) (2 ) 0 0 101 80 0 Gains (losses) on the hedged item: Interest Rate 9 5 0 0 (98 ) (73 ) 0 Currency (1 ) 1 0 0 0 0 0 Total gains (losses) on hedged item 8 6 0 0 (98 ) (73 ) 0 Total gains (losses) on fair value hedges net of hedged item 1 4 0 0 3 7 0 Cash flow hedges Interest Rate 0 0 0 0 0 0 (1 ) Currency 1 0 0 0 0 0 14 Currency/Interest Rate 47 69 40 0 0 0 229 Total gains (losses) on cash flow hedges 48 69 40 0 0 0 242 Net investment hedges Currency 0 0 0 0 0 0 1 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 1 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 2,346 0 0 0 0 0 0 Currency 122 0 (5 ) 0 0 0 0 Currency/Interest Rate 20 0 0 0 0 0 0 Credit 36 0 0 0 0 0 0 Equity (617 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (2,368 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (461 ) 0 (5 ) 0 0 0 0 Total $ (412 ) $ 73 $ 35 $ 0 $ 3 $ 7 $ 243 Six Months Ended June 30, 2019 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (15 ) $ (4 ) $ 0 $ 0 $ 168 $ 131 $ 0 Currency 1 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (14 ) (4 ) 0 0 168 131 0 Gains (losses) on the hedged item: Interest Rate 11 11 0 0 (164 ) (119 ) 0 Currency 0 2 0 0 0 0 0 Total gains (losses) on hedged item 11 13 0 0 (164 ) (119 ) 0 Total gains (losses) on fair value hedges net of hedged item (3 ) 9 0 0 4 12 0 Cash flow hedges Interest Rate (1 ) 0 0 0 0 0 22 Currency 2 0 0 0 0 0 5 Currency/Interest Rate 40 137 (6 ) 0 0 0 170 Total gains (losses) on cash flow hedges 41 137 (6 ) 0 0 0 197 Net investment hedges Currency 0 0 0 0 0 0 2 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 2 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 3,734 0 0 0 0 0 0 Currency 84 0 0 0 0 0 0 Currency/Interest Rate 204 0 0 0 0 0 0 Credit 104 0 0 0 0 0 0 Equity (2,427 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (3,180 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (1,481 ) 0 0 0 0 0 0 Total $ (1,443 ) $ 146 $ (6 ) $ 0 $ 4 $ 12 $ 199 Three Months Ended June 30, 2018(2) Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ 5 $ (2 ) $ 0 $ 0 $ (28 ) $ 0 Currency 1 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments 6 (2 ) 0 0 (28 ) 0 Gains (losses) on the hedged item: Interest Rate (5 ) 5 0 0 29 0 Currency (1 ) 1 0 0 0 0 Total gains (losses) on hedged item (6 ) 6 0 0 29 0 Total gains (losses) on fair value hedges net of hedged item 0 4 0 0 1 0 Cash flow hedges Interest Rate 2 0 0 0 0 (1 ) Currency 3 0 0 0 0 18 Currency/Interest Rate 33 52 209 0 0 704 Total gains (losses) on cash flow hedges 38 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 gains (losses) on net investment hedges 2 0 0 0 0 5 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (434 ) 0 0 0 0 0 Currency (133 ) 0 (1 ) 0 0 0 Currency/Interest Rate 573 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 gains (losses) on derivatives not qualifying as hedge accounting instruments 404 0 1 0 0 0 Total $ 444 $ 56 $ 210 $ 0 $ 1 $ 726 Six Months Ended June 30, 2018(2) Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ 22 $ (6 ) $ 0 $ 0 $ (111 ) $ 0 Currency 3 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments 25 (6 ) 0 0 (111 ) 0 Gains (losses) on the hedged item: Interest Rate (24 ) 19 0 0 115 0 Currency (3 ) 2 0 0 0 0 Total gains (losses) on hedged item (27 ) 21 0 0 115 0 Total gains (losses) on fair value hedges net of hedged item (2 ) 15 0 0 4 0 Cash flow hedges Interest Rate 2 0 0 (1 ) 0 6 Currency 0 0 0 0 0 9 Currency/Interest Rate 27 100 118 0 0 123 Total gains (losses) on cash flow hedges 29 100 118 (1 ) 0 138 Net investment hedges Currency 0 0 0 0 0 3 Currency/Interest Rate 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 3 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,949 ) 0 0 0 0 0 Currency 279 0 0 0 0 0 Currency/Interest Rate 25 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 gains (losses) on derivatives not qualifying as hedge accounting instruments 738 0 1 0 0 0 Total $ 765 $ 115 $ 119 $ (1 ) $ 4 $ 141 _________ (1) Net change in AOCI. (2) Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in millions) Balance, December 31, 2018 $ 811 Cumulative-effect adjustment from the adoption of ASU 2017-12(1) 9 Amount recorded in AOCI Interest Rate 21 Currency 7 Currency/Interest Rate 341 Total amount recorded in AOCI 369 Amount reclassified from AOCI to income Interest Rate 1 Currency (2 ) Currency/Interest Rate (171 ) Total amount reclassified from AOCI to income (172 ) Balance, June 30, 2019 $ 1,017 _________ (1) See Note 2 for details. The changes in fair value of cash flow hedges are deferred in AOCI and are included in “Net unrealized investment gains (losses)” in the Unaudited Interim Consolidated Statements of Comprehensive Income; these amounts are then reclassified to earnings when the hedged item affects earnings. Using June 30, 2019 values, it is estimated that a pre-tax gain of approximately $251 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending June 30, 2020 , offset by amounts pertaining to the hedged items. The exposures the Company is hedging with these qualifying cash flow hedges include the variability of future cash flows from forecasted transactions denominated in foreign currencies, the purchases of invested assets, and the receipt or payment of variable interest on existing financial instruments. The maximum length of time over which the Company is hedging its exposure to the variability in future cash flows for forecasted transactions is 5 years . There were no material amounts reclassified from AOCI 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. For effective net investment hedges, the amounts, before applicable taxes, recorded in the cumulative translation adjustment within AOCI were $534 million and $532 million as of June 30, 2019 and December 31, 2018 , respectively. Credit Derivatives Credit derivatives, where the Company has written credit protection on a single name reference, had outstanding notional amounts of $100 million and $ 110 million as of June 30, 2019 and December 31, 2018 , respectively. These credit derivatives are reported at fair value as an asset of $1 million as of both June 30, 2019 and December 31, 2018 . As of June 30, 2019 , the notional amount of these credit derivatives had the following NAIC ratings: $ 36 million in NAIC 1; $ 60 million in NAIC 2; and $4 million in NAIC 3. The Company has also written credit protection on certain index references with notional amounts of $2,984 million and $4,953 million as of June 30, 2019 and December 31, 2018 , respectively. These credit derivatives are reported at fair value as an asset of $100 million and $ 10 million as of June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019 , the notional amount of these credit derivatives had the following NAIC ratings: $ 51 million in NAIC 1; $1,908 million in NAIC 3; and $1,025 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. The single name credit derivatives have maturities of less than 2 years , while the index references have maturities of less than 43 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, 2019 and December 31, 2018 , the Company had $82 million and $145 million of outstanding notional amounts and reported at fair value as a liability of $0 million and $ 1 million 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, 2019 , 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, 2019 | |
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 6 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . 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, 2019 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 $ 34,361 $ 94 $ $ 34,455 Obligations of U.S. states and their political subdivisions 0 11,198 4 11,202 Foreign government bonds 0 121,058 24 121,082 U.S. corporate public securities 0 93,402 116 93,518 U.S. corporate private securities(2) 0 33,213 1,765 34,978 Foreign corporate public securities 0 30,240 71 30,311 Foreign corporate private securities 0 25,928 840 26,768 Asset-backed securities(3) 0 11,937 798 12,735 Commercial mortgage-backed securities 0 15,109 45 15,154 Residential mortgage-backed securities 0 3,169 18 3,187 Subtotal 0 379,615 3,775 383,390 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 192 0 192 Obligations of U.S. states and their political subdivisions 0 210 0 210 Foreign government bonds 0 844 26 870 Corporate securities 0 13,077 553 13,630 Asset-backed securities(3) 0 1,569 57 1,626 Commercial mortgage-backed securities 0 2,297 0 2,297 Residential mortgage-backed securities 0 1,014 0 1,014 Equity securities 1,360 272 1 1,633 All other(4) 0 365 1 366 Subtotal 1,360 19,840 638 21,838 Fixed maturities, trading 0 3,459 296 3,755 Equity securities 5,212 831 624 6,667 Commercial mortgage and other loans 0 645 0 645 Other invested assets(5) 4 14,101 436 (13,063 ) 1,478 Short-term investments 1,888 2,450 288 4,626 Cash equivalents 778 7,138 1 7,917 Other assets 0 0 98 98 Separate account assets(6)(7) 44,622 232,742 1,708 279,072 Total assets $ 53,864 $ 660,821 $ 7,864 $ (13,063 ) $ 709,486 Future policy benefits(8) $ 0 $ 0 $ 12,723 $ $ 12,723 Policyholders’ account balances 0 0 1,047 1,047 Other liabilities 13 6,912 0 (6,368 ) 557 Notes issued by consolidated VIEs 0 0 816 816 Total liabilities $ 13 $ 6,912 $ 14,586 $ (6,368 ) $ 15,143 As of December 31, 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 $ 30,513 $ 81 $ $ 30,594 Obligations of U.S. states and their political subdivisions 0 10,488 5 10,493 Foreign government bonds 0 112,985 125 113,110 U.S. corporate public securities 0 83,282 133 83,415 U.S. corporate private securities(2) 0 31,265 1,755 33,020 Foreign corporate public securities 0 29,148 53 29,201 Foreign corporate private securities 0 23,787 744 24,531 Asset-backed securities(3) 0 11,726 1,247 12,973 Commercial mortgage-backed securities 0 13,302 13 13,315 Residential mortgage-backed securities 0 2,925 79 3,004 Subtotal 0 349,421 4,235 353,656 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 381 0 381 Obligations of U.S. states and their political subdivisions 0 196 0 196 Foreign government bonds 0 858 225 1,083 Corporate securities 0 12,675 444 13,119 Asset-backed securities(3) 0 1,516 149 1,665 Commercial mortgage-backed securities 0 2,324 0 2,324 Residential mortgage-backed securities 0 811 0 811 Equity securities 1,222 237 1 1,460 All other(4) 0 215 0 215 Subtotal 1,222 19,213 819 21,254 Fixed maturities, trading 0 3,037 206 3,243 Equity securities 4,819 610 671 6,100 Commercial mortgage and other loans 0 763 0 763 Other invested assets(5) 23 10,454 263 (9,331 ) 1,409 Short-term investments 2,713 2,691 89 5,493 Cash equivalents 2,848 6,553 77 9,478 Other assets 0 0 25 25 Separate account assets(6)(7) 39,534 212,998 1,534 254,066 Total assets $ 51,159 $ 605,740 $ 7,919 $ (9,331 ) $ 655,487 Future policy benefits(8) $ 0 $ 0 $ 8,926 $ $ 8,926 Policyholders’ account balances 0 0 56 56 Other liabilities 18 5,398 0 (5,281 ) 135 Notes issued by consolidated VIEs 0 0 595 595 Total liabilities $ 18 $ 5,398 $ 9,577 $ (5,281 ) $ 9,712 __________ (1) “Netting” amounts represent cash collateral of $6,695 million and $4,050 million as of June 30, 2019 and December 31, 2018 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Excludes notes with fair value of $4,356 million (carrying amount of $4,356 million ) and $4,216 million (carrying amount of $4,216 million ) as of June 30, 2019 and December 31, 2018 , 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) All other represents cash equivalents and short-term investments. (5) 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. As of June 30, 2019 and December 31, 2018 , the fair values of such investments were $4,089 million and $4,115 million respectively. (6) 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. As of June 30, 2019 and December 31, 2018 , the fair value of such investments was $24,508 million and $25,070 million , respectively. (7) 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. (8) As of June 30, 2019 , the net embedded derivative liability position of $12.7 billion includes $0.6 billion of embedded derivatives in an asset position and $13.3 billion of embedded derivatives in a liability position. As of December 31, 2018 , the net embedded derivative liability position of $8.9 billion includes $0.7 billion of embedded derivatives in an asset position and $9.6 billion of embedded derivatives in a liability position. 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, 2019 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) $ 1,441 Discounted cash flow Discount rate 0.36% - 20% 8.37% Decrease Market comparables EBITDA multiples(3) 4.5X - 9.2X 7.0X Increase Liquidation Liquidation value 3.98% - 100% 58.42% Increase Separate account assets-commercial mortgage loans(4) $ 860 Discounted cash flow Spread 1.06% - 2.44% 1.21% Decrease Liabilities: Future policy benefits(5) $ 12,723 Discounted cash flow Lapse rate(7) 1% - 18% Decrease Spread over LIBOR(8) 0.16% - 1.24% Decrease Utilization rate(9) 43% - 97% Increase Withdrawal rate See table footnote (10) below. Mortality rate(11) 0% - 15% Decrease Equity volatility curve 13% - 23% Increase Policyholders’ account balances(6) $ 1,047 Discounted cash flow Lapse rate(7) 1% - 42% Decrease Spread over LIBOR(8) 0.16% - 1.24% Decrease Mortality rate(11) 0% - 24% Decrease Equity volatility curve 10% - 23% Increase As of December 31, 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) $ 1,392 Discounted cash flow Discount rate 0.57% - 20% 8.58% Decrease Market comparables EBITDA multiples(3) 4.5X - 8.5X 8.1X Increase Liquidation Liquidation value 11.77% - 94% 32.16% Increase Separate account assets-commercial mortgage loans(4) $ 785 Discounted cash flow Spread 1.12% - 2.55% 1.29% Decrease Liabilities: Future policy benefits(5) $ 8,926 Discounted cash flow Lapse rate(7) 1% - 13% Decrease Spread over LIBOR(8) 0.36% - 1.60% Decrease Utilization rate(9) 50% - 97% Increase Withdrawal rate See table footnote (10) below. Mortality rate(11) 0% - 15% Decrease Equity volatility curve 18% - 22% 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) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life and annuity products that 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. (7) Lapse rates for contracts with living benefit guarantees 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 for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (8) 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 the Company’s estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. 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 funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (9) 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. (10) 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, 2019 and December 31, 2018 , 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%. (11) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. 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 6 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . 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. Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 88 $ 0 $ 6 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 138 (1 ) 0 0 0 0 (2 ) 0 (111 ) 24 0 Corporate securities(3) 2,757 6 288 (17 ) 0 (225 ) 1 19 (37 ) 2,792 (5 ) Structured securities(4) 1,915 8 113 (47 ) 0 (101 ) 9 17 (1,053 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 29 0 0 0 0 (3 ) 0 0 0 26 0 Corporate securities(3) 592 5 14 0 0 (67 ) 0 10 (1 ) 553 11 Structured securities(4) 60 1 0 0 0 (4 ) 0 0 0 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 0 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 240 (7 ) 36 (13 ) 0 0 1 39 0 296 (7 ) Equity securities 674 16 23 (13 ) 0 (59 ) 6 1 (24 ) 624 15 Other invested assets 373 0 61 0 0 0 2 0 0 436 0 Short-term investments 168 0 273 0 0 (153 ) 0 0 0 288 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 48 42 8 0 0 0 0 0 0 98 41 Separate account assets(5) 1,635 44 139 (6 ) 0 (27 ) 0 0 (77 ) 1,708 41 Liabilities: Future policy benefits (10,025 ) (2,400 ) 0 0 (298 ) 0 0 0 0 (12,723 ) (2,503 ) Policyholders’ account balances(6) (146 ) (828 ) 0 0 (73 ) 0 0 0 0 (1,047 ) (821 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (817 ) 1 0 0 0 0 0 0 0 (816 ) 1 Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (11 ) $ 0 $ 0 $ 18 $ 6 $ (5 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 6 0 0 1 0 12 0 Other assets: Fixed maturities, trading 0 (8 ) 0 0 1 0 (7 ) 0 Equity securities 0 16 0 0 0 0 15 0 Other invested assets 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 42 0 0 0 0 41 0 0 Separate account assets(5) 0 0 43 0 1 0 0 41 Liabilities: Future policy benefits (2,400 ) 0 0 0 0 (2,503 ) 0 0 Policyholders’ account balances (828 ) 0 0 0 0 (821 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs 1 0 0 0 0 1 0 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 81 $ 0 $ 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 5 0 0 0 0 (1 ) 0 0 0 4 0 Foreign government 125 2 0 0 0 0 (1 ) 9 (111 ) 24 0 Corporate securities(3) 2,685 10 607 (29 ) 0 (604 ) (1 ) 183 (59 ) 2,792 (26 ) Structured securities(4) 1,339 25 431 (47 ) 0 (332 ) 7 750 (1,312 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 225 0 0 0 0 (3 ) (196 ) 0 0 26 0 Corporate securities(3) 444 10 41 0 0 (143 ) 196 10 (5 ) 553 6 Structured securities(4) 149 1 6 0 0 (25 ) 0 0 (74 ) 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 1 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 206 (11 ) 74 (14 ) 0 0 3 39 (1 ) 296 (7 ) Equity securities 671 24 46 (24 ) 0 (74 ) 4 1 (24 ) 624 22 Other invested assets 263 (1 ) 218 0 0 (42 ) (2 ) 0 0 436 (1 ) Short-term investments 89 0 426 0 0 (227 ) 0 0 0 288 0 Cash equivalents 77 0 1 0 0 (77 ) 0 0 0 1 0 Other assets 25 56 17 0 0 0 0 0 0 98 55 Separate account assets(5) 1,534 125 228 (17 ) 0 (50 ) 0 0 (112 ) 1,708 115 Liabilities: Future policy benefits (8,926 ) (3,210 ) 0 0 (588 ) 0 1 0 0 (12,723 ) (3,364 ) Policyholders’ account balances(6) (56 ) (879 ) 0 0 (109 ) 0 (3 ) 0 0 (1,047 ) (872 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (595 ) (1 ) 0 0 (858 ) 638 0 0 0 (816 ) (1 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ 40 $ 10 $ (26 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 9 0 0 3 0 8 0 Other assets: Fixed maturities, trading 0 (12 ) 0 0 1 0 (7 ) 0 Equity securities 0 24 0 0 0 0 22 0 Other invested assets (1 ) 0 0 0 0 (1 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 56 0 0 0 0 55 0 0 Separate account assets(5) 0 0 123 0 2 0 0 115 Liabilities: Future policy benefits (3,210 ) 0 0 0 0 (3,364 ) 0 0 Policyholders’ account balances (879 ) 0 0 0 0 (872 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (1 ) 0 0 0 0 (1 ) 0 0 Three Months Ended June 30, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 59 $ 0 $ 8 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 67 $ 0 U.S. states 5 0 0 0 0 0 0 0 0 5 0 Foreign government 128 (2 ) 0 0 0 0 (4 ) 15 0 137 0 Corporate securities(3) 2,735 (29 ) 257 (3 ) 0 (286 ) (31 ) 69 (21 ) 2,691 (21 ) Structured securities(4) 6,899 (9 ) 441 (278 ) 0 (668 ) (24 ) 62 (4,759 ) 1,664 0 Assets supporting experience-rated contractholder liabilities: Foreign government 220 4 0 0 0 (3 ) 0 0 0 221 2 Corporate securities(3) 468 (10 ) 41 0 0 (51 ) 0 40 0 488 (10 ) Structured securities(4) 664 (2 ) 16 0 0 (129 ) 0 5 (447 ) 107 (1 ) Equity securities 5 0 0 (1 ) 0 0 0 0 0 4 0 All other activity 7 0 24 0 0 (26 ) 0 0 0 5 0 Other assets: Fixed maturities, trading 204 5 9 (38 ) 0 (3 ) (2 ) 1 (3 ) 173 0 Equity securities 785 (12 ) 35 (15 ) 0 (2 ) (11 ) 3 0 783 (15 ) Other invested assets 144 (4 ) 0 (12 ) 0 0 (6 ) 0 0 122 (3 ) Short-term investments 10 0 8 0 0 (14 ) (3 ) 0 0 1 0 Cash equivalents 0 0 9 0 0 (7 ) 0 0 0 2 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Separate account assets(5) 2,360 22 253 (14 ) 0 (140 ) 0 29 (694 ) 1,816 21 Liabilities: Future policy benefits (6,981 ) 683 0 0 (287 ) 0 0 0 0 (6,585 ) 612 Policyholders’ account balances(6) (40 ) (8 ) 0 0 0 6 0 0 0 (42 ) (8 ) Other liabilities (16 ) (10 ) 8 0 0 0 0 0 0 (18 ) (10 ) Notes issued by consolidated VIEs (612 ) 3 0 0 0 0 0 0 0 (609 ) 3 Three Months Ended June 30, 2018 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (19 ) $ 0 $ 0 $ (25 ) $ 4 $ (21 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (11 ) 0 0 3 0 (9 ) 0 Other assets: Fixed maturities, trading 1 4 0 0 0 0 0 0 Equity securities 0 (12 ) 0 0 0 0 (15 ) 0 Other invested assets (4 ) 0 0 0 0 (3 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 Separate account assets(5) 0 0 22 0 0 0 0 21 Liabilities: Future policy benefits 683 0 0 0 0 612 0 0 Policyholders’ account balances (8 ) 0 0 0 0 (8 ) 0 0 Other liabilities (10 ) 0 0 0 0 (10 ) 0 0 Notes issued by consolidated VIEs 3 0 0 0 0 3 0 0 Six Months Ended June 30, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 52 $ 0 $ 15 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 67 $ 0 U.S. states 5 0 0 0 0 0 0 0 0 5 0 Foreign government 148 (2 ) 0 0 0 0 (3 ) 20 (26 ) 137 0 Corporate securities(3) 2,776 (18 ) 375 (4 ) 0 (455 ) (19 ) 129 (93 ) 2,691 (30 ) Structured securities(4) 6,715 (24 ) 1,989 (344 ) 0 (1,317 ) 6 1,133 (6,494 ) 1,664 0 Assets supporting experience-rated contractholder liabilities: Foreign government 223 1 0 0 0 (3 ) 0 0 0 221 (2 ) Corporate securities(3) 462 (9 ) 65 0 0 (69 ) 0 40 (1 ) 488 (9 ) Structured securities(4) 722 (2 ) 19 0 0 (142 ) 0 33 (523 ) 107 (1 ) Equity securities 4 1 0 (1 ) 0 0 0 0 0 4 1 All other activity 7 0 43 0 0 (45 ) 0 0 0 5 0 Other assets: Fixed maturities, trading 156 3 49 (42 ) 0 (3 ) 3 12 (5 ) 173 4 Equity securities 795 2 42 (32 ) 0 (39 ) 15 3 (3 ) 783 (1 ) Other invested assets 137 4 1 (12 ) 0 0 (8 ) 0 0 122 2 Short-term investments 8 (1 ) 22 0 0 (26 ) (2 ) 0 0 1 (1 ) Cash equivalents 0 0 9 0 0 (7 ) 0 0 0 2 0 Other assets 13 (13 ) 0 0 0 0 0 0 0 0 (13 ) Separate account assets(5) 2,122 (11 ) 490 (22 ) 0 (261 ) 0 224 (726 ) 1,816 (5 ) Liabilities: Future policy benefits (8,720 ) 2,709 0 0 (574 ) 0 0 0 0 (6,585 ) 2,529 Policyholders’ account balances(6) (47 ) (3 ) 0 0 0 8 0 0 0 (42 ) (3 ) Other liabilities (3 ) (34 ) 18 0 0 0 1 0 0 (18 ) (33 ) Notes issued by consolidated VIEs (1,196 ) 0 0 0 0 0 587 0 0 (609 ) 0 Six Months Ended June 30, 2018 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ (39 ) $ 8 $ (30 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (13 ) 0 0 4 0 (11 ) 0 Other assets: Fixed maturities, trading 1 2 0 0 0 0 4 0 Equity securities 0 2 0 0 0 0 (1 ) 0 Other invested assets 4 0 0 0 0 2 0 0 Short-term investments (1 ) 0 0 0 0 (1 ) 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets (13 ) 0 0 0 0 (13 ) 0 0 Separate account assets(5) 0 0 (11 ) 0 0 0 0 (5 ) Liabilities: Future policy benefits 2,709 0 0 0 0 2,529 0 0 Policyholders’ account balances (3 ) 0 0 0 0 (3 ) 0 0 Other liabilities (34 ) 0 0 0 0 (33 ) 0 0 Notes issued by consolidated VIEs 0 0 0 0 0 0 0 0 __________ (1) “Other,” for the periods ended June 30, 2019 and June 30, 2018 , primarily represent deconsolidation of VIE, reclassifications of certain assets between reporting categories and foreign currency translation. (2) 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. (3) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (4) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (5) 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. (6) Issuances and settlements for Policyholders’ account balances are presented net in the rollforward. Prior year amounts are restated to conform to current year presentation. Derivative Fair Value Information 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, 2019 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative Assets: Interest Rate $ 3 $ 10,548 $ 1 $ $ 10,552 Currency 0 346 0 346 Credit 0 103 0 103 Currency/Interest Rate 0 2,497 0 2,497 Equity 1 607 0 608 Other 0 0 0 0 Netting(1) (13,063 ) (13,063 ) Total derivative assets $ 4 $ 14,101 $ 1 $ (13,063 ) $ 1,043 Derivative Liabilities: Interest Rate $ 8 $ 4,938 $ 0 $ $ 4,946 Currency 0 122 0 122 Credit 0 2 0 2 Currency/Interest Rate 0 756 0 756 Equity 5 1,094 0 1,099 Other 0 0 0 0 Netting(1) (6,368 ) (6,368 ) Total derivative liabilities $ 13 $ 6,912 $ 0 $ (6,368 ) $ 557 As of December 31, 2018 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative Assets: Interest Rate $ 23 $ 6,341 $ 2 $ $ 6,366 Currency 0 273 0 273 Credit 0 33 0 33 Currency/Interest Rate 0 2,292 0 2,292 Equity 0 1,515 0 1,515 Other 0 0 0 0 Netting(1) (9,331 ) (9,331 ) Total derivative assets $ 23 $ 10,454 $ 2 $ (9,331 ) $ 1,148 Derivative Liabilities: Interest Rate $ 2 $ 3,818 $ 0 $ $ 3,820 Currency 0 140 0 140 Credit 0 23 0 23 Currency/Interest Rate 0 778 0 778 Equity 7 640 0 647 Other 0 0 0 0 Netting(1) (5,281 ) (5,281 ) Total derivative liabilities $ 9 $ 5,399 $ 0 $ (5,281 ) $ 127 __________ (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. Changes in Level 3 derivative assets and liabilities —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 June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net Derivative - Interest Rate 1 0 0 0 0 0 0 0 0 1 0 Six Months Ended June 30, 2019 Fair Value, beginning of period To |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Operating Leases, Lessee | LEASES The Company occupies leased office space and other facilities in many locations under various long-term leases and has entered into numerous leases covering the long-term use of computers and other equipment. The leases, depending on their specific terms, are classified as either operating or finance with the vast majority of leases falling under the operating classification. The leases in the Company’s portfolio have remaining lease terms from less than one year to 30 years , some of which include options to extend the leases for up to 18 years , and some of which include options to terminate the leases within 8 years . An analysis of all economic and non-economic factors associated with leases containing certain options, including factors such as the existence of cancellation penalties, leasehold improvements made to the underlying assets and location of the underlying assets, is conducted to determine whether those leases are reasonably certain to renew, and, hence, should be included in the lease term that is used to establish the right-of-use assets and lease liabilities for those arrangements. The Company does not have residual guarantees associated with its lessee arrangements, nor are there any restrictions or covenants associated with its lease arrangements. Lessee Supplemental balance sheet information related to leases where the Company is the lessee is included below. Right-of-use assets and lease liabilities are included within “Other assets” and “Other liabilities” respectively. June 30, 2019 (in millions) Operating Leases: Right-of-use assets $ 561 Lease liabilities $ 589 Weighted average remaining lease term 6 years Weighted average discount rate 2.62 % Maturities of operating lease liabilities are as follows: June 30, 2019 (in millions) 2019 (July — December) $ 85 2020 141 2021 122 2022 88 2023 65 Thereafter 144 Total lease payments 645 Less imputed interest (56 ) Total $ 589 Lease expense is included in “General and administrative expenses.” The expense was comprised of operating lease costs and short-term lease costs of $35 million and $26 million , respectively, for the three months ended June 30, 2019 , and $69 million and $50 million , respectively, for the six months ended June 30, 2019 . Short-term lease costs relate to those leases with terms of twelve months or less that do not include an option to purchase the underlying asset that is reasonably certain of exercise. Lessor The Company directly owns real estate properties within its investment portfolio. Such real estate is leased to third-parties, with the Company serving as the lessor. The terms of the leases vary depending on property type (e.g., commercial or residential). In most cases, the lessee has an option to renew the lease contract based on market rates but does not have an option to purchase the property. The terms of the leases may also include provisions for the use of common areas. Such non-lease components are not separately accounted for by the Company, as a result of applying the practical expedient discussed in Note 2. Lease income included in “Net investment income” was $50 million and $100 million for the three and six months ended June 30, 2019 |
Operating Leases, Lessor | LEASES The Company occupies leased office space and other facilities in many locations under various long-term leases and has entered into numerous leases covering the long-term use of computers and other equipment. The leases, depending on their specific terms, are classified as either operating or finance with the vast majority of leases falling under the operating classification. The leases in the Company’s portfolio have remaining lease terms from less than one year to 30 years , some of which include options to extend the leases for up to 18 years , and some of which include options to terminate the leases within 8 years . An analysis of all economic and non-economic factors associated with leases containing certain options, including factors such as the existence of cancellation penalties, leasehold improvements made to the underlying assets and location of the underlying assets, is conducted to determine whether those leases are reasonably certain to renew, and, hence, should be included in the lease term that is used to establish the right-of-use assets and lease liabilities for those arrangements. The Company does not have residual guarantees associated with its lessee arrangements, nor are there any restrictions or covenants associated with its lease arrangements. Lessee Supplemental balance sheet information related to leases where the Company is the lessee is included below. Right-of-use assets and lease liabilities are included within “Other assets” and “Other liabilities” respectively. June 30, 2019 (in millions) Operating Leases: Right-of-use assets $ 561 Lease liabilities $ 589 Weighted average remaining lease term 6 years Weighted average discount rate 2.62 % Maturities of operating lease liabilities are as follows: June 30, 2019 (in millions) 2019 (July — December) $ 85 2020 141 2021 122 2022 88 2023 65 Thereafter 144 Total lease payments 645 Less imputed interest (56 ) Total $ 589 Lease expense is included in “General and administrative expenses.” The expense was comprised of operating lease costs and short-term lease costs of $35 million and $26 million , respectively, for the three months ended June 30, 2019 , and $69 million and $50 million , respectively, for the six months ended June 30, 2019 . Short-term lease costs relate to those leases with terms of twelve months or less that do not include an option to purchase the underlying asset that is reasonably certain of exercise. Lessor The Company directly owns real estate properties within its investment portfolio. Such real estate is leased to third-parties, with the Company serving as the lessor. The terms of the leases vary depending on property type (e.g., commercial or residential). In most cases, the lessee has an option to renew the lease contract based on market rates but does not have an option to purchase the property. The terms of the leases may also include provisions for the use of common areas. Such non-lease components are not separately accounted for by the Company, as a result of applying the practical expedient discussed in Note 2. Lease income included in “Net investment income” was $50 million and $100 million for the three and six months ended June 30, 2019 |
Closed Block
Closed Block | 6 Months Ended |
Jun. 30, 2019 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK On December 18, 2001, the date of demutualization, The Prudential Insurance Company of America (“PICA”) 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 14 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2018. As of June 30, 2019 and December 31, 2018 , the Company recognized a policyholder dividend obligation of $2,359 million and $2,252 million , respectively, to Closed Block policyholders for the excess of actual cumulative earnings over expected cumulative earnings. Additionally, accumulated net unrealized investment gains that have arisen subsequent to the establishment of the Closed Block have been reflected as a policyholder dividend obligation of $3,201 million and $899 million at June 30, 2019 and December 31, 2018 , 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 $ 47,940 $ 48,282 Policyholders’ dividends payable 810 812 Policyholders’ dividend obligation 5,560 3,150 Policyholders’ account balances 5,011 5,061 Other Closed Block liabilities 4,282 3,955 Total Closed Block liabilities 63,603 61,260 Closed Block assets Fixed maturities, available-for-sale, at fair value 40,602 38,538 Fixed maturities, trading, at fair value 236 195 Equity securities, at fair value 2,055 1,784 Commercial mortgage and other loans 8,451 8,782 Policy loans 4,328 4,410 Other invested assets 3,291 3,316 Short-term investments 659 477 Total investments 59,622 57,502 Cash and cash equivalents 633 467 Accrued investment income 460 466 Other Closed Block assets 199 105 Total Closed Block assets 60,914 58,540 Excess of reported Closed Block liabilities over Closed Block assets 2,689 2,720 Portion of above representing accumulated other comprehensive income (loss): Net unrealized investment gains (losses) 3,156 857 Allocated to policyholder dividend obligation (3,201 ) (899 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,644 $ 2,678 Information regarding the policyholder dividend obligation is as follows: Six Months Ended (in millions) Balance, December 31, 2018 $ 3,150 Impact from earnings allocable to policyholder dividend obligation 107 Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 2,303 Balance, June 30, 2019 $ 5,560 Closed Block revenues and benefits and expenses are as follows for the periods indicated: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) Revenues Premiums $ 581 $ 602 $ 1,108 $ 1,152 Net investment income 576 593 1,141 1,190 Realized investment gains (losses), net 49 110 105 108 Other income (loss) 97 85 325 107 Total Closed Block revenues 1,303 1,390 2,679 2,557 Benefits and Expenses Policyholders’ benefits 780 778 1,489 1,506 Interest credited to policyholders’ account balances 32 33 64 66 Dividends to policyholders 415 508 968 816 General and administrative expenses 89 92 178 184 Total Closed Block benefits and expenses 1,316 1,411 2,699 2,572 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes (13 ) (21 ) (20 ) (15 ) Income tax expense (benefit) (29 ) (36 ) (53 ) (45 ) Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 16 $ 15 $ 33 $ 30 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
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 $394 million , or 19.5% of income (loss) before income taxes and equity in earnings of operating joint ventures, in the first six months of 2019, compared to $420 million , or 21.6% , in the first six months of 2018. The Company’s current and prior 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. In addition, the first six months of 2018 also includes a $27 million |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | SHORT-TERM AND LONG-TERM DEBT Short-term Debt The table below presents the Company’s short-term debt as of the dates indicated: June 30, 2019 December 31, 2018 ($ in millions) Commercial paper: Prudential Financial $ 25 $ 15 Prudential Funding, LLC 820 727 Subtotal commercial paper 845 742 Mortgage Debt(1) 52 53 Current portion of long-term debt(2) 1,756 1,656 Other(3) 6 0 Total short-term debt(4) $ 2,659 $ 2,451 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 220 $ 301 Daily average commercial paper outstanding $ 1,676 $ 1,554 Weighted average maturity of outstanding commercial paper, in days 11 12 Weighted average interest rate on outstanding commercial paper 2.42 % 1.90 % __________ (1) Includes $52 million and $53 million of mortgage debt denominated in foreign currency at June 30, 2019 and December 31, 2018, respectively. (2) Includes $1,003 million and $1,100 million of senior notes at June 30, 2019 and December 31, 2018, respectively, and $253 million and $57 million of mortgage debt that has recourse only to real estate investment property at June 30, 2019 and December 31, 2018 , respectively. (3) Includes $6 million drawn on a revolving line of credit held by a subsidiary at June 30, 2019. (4) Includes Prudential Financial debt of $1,027 million and $1,115 million at June 30, 2019 and December 31, 2018 , respectively. Prudential Financial and certain subsidiaries have access to external 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, 2019 , no amounts were drawn on these credit facilities. For additional information on these sources of liquidity, see Note 16 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Long-term Debt The table below presents the Company’s long-term debt as of the dates indicated: June 30, 2019 December 31, 2018 (in millions) Fixed-rate obligations: Surplus notes $ 342 $ 341 Surplus notes subject to set-off arrangements(1) 7,035 6,895 Senior notes 9,106 8,774 Mortgage debt(2) 160 237 Floating-rate obligations: Line of credit 299 0 Surplus notes subject to set-off arrangements(1) 2,200 2,200 Senior notes 29 29 Mortgage debt(3) 333 429 Junior subordinated notes(4) 7,572 7,568 Subtotal 27,076 26,473 Less: assets under set-off arrangements(1) 9,235 9,095 Total long-term debt(5) $ 17,841 $ 17,378 __________ (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 $99 million and $101 million of debt denominated in foreign currency at June 30, 2019 and December 31, 2018 , respectively. (3) Includes $166 million and $206 million of debt denominated in foreign currency at June 30, 2019 and December 31, 2018 , respectively. (4) Includes Prudential Financial debt of $7,514 million at June 30, 2019. Also includes subsidiary debt of $58 million denominated in foreign currency at June 30, 2019. (5) Includes Prudential Financial debt of $16,475 million and $16,141 million at June 30, 2019 and December 31, 2018 , respectively. At June 30, 2019 and December 31, 2018 , the Company was in compliance with all debt covenants related to the borrowings in the table above. Line of Credit. PGIM entered into a $300 million syndicated credit facility in April 2019 that is secured by certain of PGIM’s fund investments. The facility has a three-year term and extends for additional one-year periods unless terminated. The lenders on the facility have recourse only to the collateral pledged by PGIM. The facility was fully drawn as of June 30, 2019. Senior Notes. As of June 30, 2019, the outstanding balance of the Company’s senior notes was $10.14 billion , an increase of $0.2 billion from December 31, 2018 . The increase was due to the issuance in the first quarter of $1 billion of notes with an interest rate of 4.350% maturing in February 2050, offset by $0.8 billion in debt maturities in the second quarter. Mortgage Debt. As of June 30, 2019 , the Company’s subsidiaries had mortgage debt of $799 million that has recourse only to real estate property held for investment by those subsidiaries. This represents an increase of $23 million from December 31, 2018 , due to a $28 million increase from new borrowings, offset by a $5 million decrease from foreign currency exchange rate fluctuations. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
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 2019 2018 2019 2018 (in millions) Components of net periodic (benefit) cost: Service cost $ 72 $ 79 $ 5 $ 6 Interest cost 123 112 20 17 Expected return on plan assets (204 ) (205 ) (23 ) (27 ) Amortization of prior service cost (1 ) (1 ) 1 0 Amortization of actuarial (gain) loss, net 54 54 6 5 Settlements 48 0 0 0 Special termination benefits 1 1 0 0 Net periodic (benefit) cost $ 93 $ 40 $ 9 $ 1 Six Months Ended June 30, Pension Benefits Other Postretirement Benefits 2019 2018 2019 2018 (in millions) Components of net periodic (benefit) cost: Service cost $ 145 $ 158 $ 11 $ 12 Interest cost 246 224 39 35 Expected return on plan assets (408 ) (409 ) (47 ) (54 ) Amortization of prior service cost (2 ) (2 ) 2 0 Amortization of actuarial (gain) loss, net 108 107 12 9 Settlements 48 0 0 0 Special termination benefits 1 1 0 0 Net periodic (benefit) cost $ 138 $ 79 $ 17 $ 2 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 660.1 249.4 410.7 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 10.4 (10.4 ) Stock-based compensation programs(1) 0.0 (2.7 ) 2.7 Balance, June 30, 2019 660.1 257.1 403.0 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. In December 2018 , Prudential Financial’s Board of Directors (the “Board”) authorized the Company to repurchase at management’s discretion up to $2.0 billion of its outstanding Common Stock during the period from January 1, 2019 through December 31, 2019 . As of June 30, 2019 , 10.4 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $1.0 billion . 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. Dividends declared per share of Common Stock are as follows for the periods indicated: Three Months Ended Six Months Ended 2019 2018 2019 2018 Dividends declared per share of Common Stock $ 1.00 $ 0.90 $ 2.00 $ 1.80 Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Unaudited Interim Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2019 and 2018 , 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, 2018 $ (564 ) $ 14,745 $ (3,275 ) $ 10,906 Change in OCI before reclassifications 98 17,296 (39 ) 17,355 Amounts reclassified from AOCI 5 (501 ) 120 (376 ) Income tax benefit (expense) 8 (3,899 ) (19 ) (3,910 ) Cumulative effect of adoption of ASU 2017-12 0 7 0 7 Balance, June 30, 2019 $ (453 ) $ 27,648 $ (3,213 ) $ 23,982 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 __________ (1) Includes cash flow hedges of $1,017 million and $811 million as of June 30, 2019 and December 31, 2018 , respectively, and $99 million and $(39) million as of June 30, 2018 and December 31, 2017 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended Affected line item in Consolidated Statements of Operations 2019 2018 2019 2018 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustments $ 0 $ 0 $ (5 ) $ 0 Realized investment gains (losses), net Foreign currency translation adjustments 0 0 0 0 Other income (loss) Total foreign currency translation adjustment 0 0 (5 ) 0 Net unrealized investment gains (losses): Cash flow hedges—Interest rate 0 2 (1 ) 2 (3) Cash flow hedges—Currency 1 3 2 0 (3) Cash flow hedges—Currency/Interest rate 156 294 171 245 (3) Net unrealized investment gains (losses) on available-for-sale securities 69 165 329 243 Total net unrealized investment gains (losses) 226 464 501 490 (4) Amortization of defined benefit pension items: Prior service cost 0 1 0 2 (5) Actuarial gain (loss) (60 ) (59 ) (120 ) (116 ) (5) Total amortization of defined benefit pension items (60 ) (58 ) (120 ) (114 ) Total reclassifications for the period $ 166 $ 406 $ 376 $ 376 __________ (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 11 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 (loss)” 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, 2018 $ 189 $ (1 ) $ 4 $ (23 ) $ (61 ) $ 108 Net investment gains (losses) on investments arising during the period 118 (27 ) 91 Reclassification adjustment for (gains) losses included in net income (29 ) 7 (22 ) Reclassification adjustment for OTTI losses excluded from net income(1) 0 0 0 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 (4 ) 1 (3 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (4 ) 1 (3 ) Balance, June 30, 2019 $ 278 $ (1 ) $ 0 $ (27 ) $ (79 ) $ 171 __________ (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, 2018 $ 22,531 $ (738 ) $ (791 ) $ (894 ) $ (5,471 ) $ 14,637 Net investment gains (losses) on investments arising during the period 21,474 (4,925 ) 16,549 Reclassification adjustment for (gains) losses included in net income (472 ) 108 (364 ) Reclassification adjustment for OTTI losses excluded from net income(2) 0 0 0 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables (1,180 ) 251 (929 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables (798 ) 201 (597 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (2,312 ) 486 (1,826 ) Cumulative effect of adoption of ASU 2017-12 9 (2 ) 7 Balance, June 30, 2019 $ 43,542 $ (1,918 ) $ (1,589 ) $ (3,206 ) $ (9,352 ) $ 27,477 __________ (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, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the periods indicated, is as follows: Three Months Ended June 30, 2019 2018 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) $ 738 $ 200 Less: Income (loss) attributable to noncontrolling interests 30 3 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 8 4 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 700 405.3 $ 1.73 $ 193 419.5 $ 0.46 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 8 $ 4 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 8 4 Stock options 1.3 1.5 Deferred and long-term compensation programs 1.1 1.1 Exchangeable Surplus Notes 6 6.2 6 5.9 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 706 413.9 $ 1.71 $ 199 428.0 $ 0.46 Six Months Ended June 30, 2019 2018 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) $ 1,675 $ 1,564 Less: Income (loss) attributable to noncontrolling interests 35 4 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 18 18 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 1,622 407.3 $ 3.98 $ 1,542 420.8 $ 3.66 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 18 $ 18 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 18 18 Stock options 1.2 1.7 Deferred and long-term compensation programs 1.1 1.1 Exchangeable Surplus Notes 11 6.2 11 5.9 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 1,633 415.8 $ 3.93 $ 1,553 429.5 $ 3.62 Unvested share-based payment awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to Prudential Financial are allocated between Common Stock and the participating awards, as if the awards were a second class of stock. During periods of net income available to holders of Common Stock, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss available to holders of Common Stock, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. Undistributed earnings allocated to participating unvested share-based payment awards for the three months ended June 30, 2019 and 2018 , as applicable, were based on 4.5 million and 4.9 million of such awards, respectively, and for the six months ended June 30, 2019 and 2018 , as applicable, were based on 4.6 million and 4.9 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, 2019 2018 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 0.9 $ 105.95 0.8 $ 108.61 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 0.9 0.8 Six Months Ended June 30, 2019 2018 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 1.0 $ 104.57 0.5 $ 108.35 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 1.0 0.5 In September 2009, the Company issued $500 million of surplus notes with an interest rate of 5.36% per annum which were exchangeable at the option of the note holders for shares of Common Stock. As of June 30, 2019 , the exchange rate for the notes was 12.3877 shares of Common Stock per each $1,000 principal amount of surplus notes, which is equivalent to approximately 6.2 million shares and an exchange price per share of Common Stock of $80.73 . 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. In July 2019, the note holders delivered notice to the Company indicating their intention to exercise the exchange option. In August 2019, as a result of the note holders’ exercise of the exchange option, the Company issued approximately 6.2 million shares of Common Stock at an exchange rate equal to 12.3877 shares of Common Stock per each $1,000 principal amount of surplus notes. The Company’s obligations under the surplus notes are now satisfied. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
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 PGIM division consists of the PGIM segment. The U.S. Workplace Solutions division consists of the Retirement and Group Insurance segments. The U.S. Individual Solutions division consists of the Individual Annuities and Individual Life segments. The Company also collectively refers to the U.S. Workplace Solutions division and the U.S. Individual Solutions division as the U.S. Financial Wellness businesses. 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 and Run-off Businesses that are included in Corporate and Other operations. Divested and Run-off Businesses are comprised of businesses that have been, or will be, sold or exited, including businesses that have been placed in wind down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP. 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 or placed in run-off, excluding the Closed Black division. 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; • market experience updates; • net investment gains (losses) on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes; • divested and run-off 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 21 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The Company has historically recognized the immediate impacts from changes in current market conditions on estimates of profitability in current period adjusted operating income. Beginning with the second quarter of 2019, these impacts are excluded from adjusted operating income which the Company believes enhances the understanding of underlying performance trends. These amounts represent the impact of those changes on DAC and other costs and reserves, primarily resulting from variable annuity and variable and universal life products. Reconciliation of adjusted operating income to net income (loss) The table below reconciles “Adjusted operating income before income taxes” to “Income (loss) before income taxes and equity in earnings of operating joint ventures”: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) Adjusted operating income before income taxes by segment: PGIM $ 264 $ 254 $ 478 $ 486 Total PGIM division 264 254 478 486 Retirement 467 277 718 594 Group Insurance 81 82 134 137 Total U.S. Workplace Solutions division 548 359 852 731 Individual Annuities(1) 462 507 934 1,026 Individual Life (135 ) 43 (30 ) 79 Total U.S. Individual Solutions division 327 550 904 1,105 International Insurance 849 784 1,771 1,640 Total International Insurance division 849 784 1,771 1,640 Corporate and Other operations (335 ) (286 ) (747 ) (580 ) Total Corporate and Other (335 ) (286 ) (747 ) (580 ) Total segment adjusted operating income before income taxes 1,653 1,661 3,258 3,382 Reconciling items: Realized investment gains (losses), net, and related adjustments (548 ) 393 (1,211 ) 480 Charges related to realized investment gains (losses), net (82 ) (116 ) (57 ) (139 ) Market experience updates(2) (208 ) 0 (208 ) 0 Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net 287 (193 ) 741 (596 ) Change in experience-rated contractholder liabilities due to asset value changes (313 ) 85 (716 ) 503 Divested and Run-off businesses: Closed Block division (21 ) (31 ) (40 ) (40 ) Other Divested and Run-off businesses 112 (1,526 ) 286 (1,598 ) Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (4 ) (23 ) (37 ) (49 ) Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures $ 876 $ 250 $ 2,016 $ 1,943 __________ (1) 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. (2) Represents the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which are excluded from adjusted operating income beginning with the second quarter of 2019. The Company has historically recognized these impacts in adjusted operating income. Reconciliation of selected financial information The table below presents total revenues and assets for the Company’s reportable segments and its Corporate and Other operations for the periods and as of the dates indicated: Revenues Total Assets Three Months Ended Six Months Ended June 30, December 31, 2019 2018 2019 2018 (in millions) PGIM $ 926 $ 816 $ 1,796 $ 1,642 $ 47,681 $ 47,690 Total PGIM division 926 816 1,796 1,642 47,681 47,690 Retirement 3,586 2,988 6,225 5,077 187,907 175,525 Group Insurance 1,461 1,424 2,902 2,840 43,699 41,727 Total U.S. Workplace Solutions division 5,047 4,412 9,127 7,917 231,606 217,252 Individual Annuities 1,288 1,266 2,523 2,518 184,220 167,899 Individual Life 1,508 1,451 2,990 2,876 91,245 83,739 Total U.S. Individual Solutions division 2,796 2,717 5,513 5,394 275,465 251,638 International Insurance 5,501 5,288 11,653 11,328 238,608 222,633 Total International Insurance division 5,501 5,288 11,653 11,328 238,608 222,633 Corporate and Other operations (164 ) (190 ) (335 ) (363 ) 19,053 16,826 Total Corporate and Other (164 ) (190 ) (335 ) (363 ) 19,053 16,826 Total 14,106 13,043 27,754 25,918 812,413 756,039 Reconciling items: Realized investment gains (losses), net, and related adjustments (548 ) 393 (1,211 ) 480 Charges related to realized investment gains (losses), net (54 ) (92 ) (126 ) (163 ) Market experience updates(1) (7 ) 0 (7 ) 0 Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net 287 (193 ) 741 (596 ) Divested and Run-off businesses: Closed Block division 1,301 1,388 2,675 2,551 61,412 59,039 Other Divested and Run-off businesses 336 143 724 275 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (33 ) (27 ) (71 ) (53 ) Total per Unaudited Interim Consolidated Financial Statements $ 15,388 $ 14,655 $ 30,479 $ 28,412 $ 873,825 $ 815,078 __________ (1) Represents the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which are excluded from adjusted operating income beginning with the second quarter of 2019. The Company has historically recognized these impacts in adjusted operating income. Intersegment revenues Management has determined the intersegment revenues with reference to market rates. Intersegment revenues are eliminated in consolidation in Corporate and Other operations. The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) PGIM segment intersegment revenues $ 194 $ 185 $ 374 $ 369 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. Asset management and service fees The table below presents asset management and service fees, predominantly related to investment management activities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions) Asset-based management fees $ 872 $ 856 $ 1,715 $ 1,717 Performance-based incentive fees 62 6 98 11 Other fees 149 148 286 308 Total asset management and service fees $ 1,083 $ 1,010 $ 2,099 $ 2,036 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
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 $ 2,293 $ 3,299 Portion of commitment where prearrangement to sell to investor exists $ 538 $ 1,490 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 $ 7,133 $ 6,941 Expected to be funded from separate accounts $ 402 $ 147 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 and Securities Repurchase Transactions June 30, December 31, (in millions) Indemnification provided to certain clients for securities lending and securities repurchase transactions(1) $ 6,520 $ 5,399 Fair value of related collateral associated with above indemnifications(1) $ 6,650 $ 5,503 Accrued liability associated with guarantee $ 0 $ 0 __________ (1) As of June 30, 2019 , indemnification provided to certain clients and fair value of related collateral associated with such indemnification include $64 million and $63 million , respectively, related to securities repurchase transactions. In the normal course of business, the Company may facilitate securities lending or securities repurchase transactions on behalf of certain client accounts (collectively, “the accounts”). 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 such transactions facilitated by the Company. In securities lending transactions, collateral is provided by the counterparty to the accounts at the inception of the transaction in an amount at least equal to 102% of the fair value of the loaned securities and the collateral is maintained daily to equal at least 102% of the fair value of the loaned securities. In securities repurchase transactions, collateral is provided by the counterparty to the accounts at the inception of the transaction in an amount at least equal to 95% of the fair value of the securities subject to repurchase and the collateral is maintained daily to equal at least 95% of the fair value of the securities subject to repurchase. The Company is only at risk if the counterparty to the transaction defaults and the value of the collateral held is less than the value of the securities loaned to, or subject to repurchase from, 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 $ 80,337 $ 79,215 Fair value of collateral supporting these assets $ 81,338 $ 77,897 Asset (liability) associated with guarantee, carried at fair value $ 1 $ 2 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 $ 1,980 $ 1,828 First-loss exposure portion of above $ 584 $ 543 Accrued liability associated with guarantees $ 18 $ 17 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 serviced $15,560 million and $14,335 million of mortgages subject to these loss-sharing arrangements as of June 30, 2019 and December 31, 2018 , respectively, all of which are collateralized by first priority liens on the underlying multi-family residential properties. As of June 30, 2019 , these mortgages had a weighted-average debt service coverage ratio of 1.89 times and a weighted-average loan-to-value ratio of 61% . As of December 31, 2018 , these mortgages had a weighted average debt service coverage ratio of 1.83 times and a weighted-average loan-to-value ratio of 62% . The Company had no losses related to indemnifications that were settled for both the six months ended June 30, 2019 and 2018 . Other Guarantees June 30, December 31, (in millions) Other guarantees where amount can be determined $ 55 $ 77 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 are $12 million and $13 million as of June 30, 2019 and December 31, 2018 , respectively, of yield maintenance guarantees related to certain investments the Company sold. The Company does not expect to make any payments on these guarantees and is not carrying any liabilities associated with these guarantees. Since certain of these obligations are not subject to limitations, it is not possible to determine the maximum potential amount due under these guarantees. The accrued liabilities identified above do not include retained liabilities associated with sold businesses. Contingent Liabilities On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and 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, 2019 , 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 22 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , 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 2019, the court entered a Final Judgment and Order of Dismissal. This matter is now closed. 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 April 2019, defendants’ motion to dismiss the Second Amended Complaint was granted and plaintiff subsequently filed a Notice of Appeal with the New York State Supreme Court, First Department. Residential Mortgage-Backed Securities (“RMBS”) Trustee Litigation PICA et al. v. HSBC, et al. In May 2019, the court dismissed the case with prejudice. This matter is now closed. PICA et al. v. U.S. Bank N.A. In April 2019, a decision and order was issued dismissing plaintiffs’ state court action with prejudice. PICA et al. v. Wells Fargo Bank, et al. In May 2019, the state court entered an Order and Final Judgment approving the class action settlement and dismissing the case with prejudice. LIBOR Litigation Prudential Investment Portfolios 2, f/k/a Dryden Core Investment Fund, o/b/o Prudential Core Short-Term Bond Fund and Prudential Core Taxable Money Market Fund v. Bank of America Corporation, et al. In June 2019, the court issued two orders approving stipulations dismissing with prejudice Prudential’s claims against Citigroup Inc., Citibank, N.A., Citigroup Funding Inc., and Citigroup Global Markets Inc. Regulatory Matters Securities Lending and Foreign Tax Reclaim Matter In 2016, the Company self-reported to the SEC and the U.S. Department of Labor (“DOL”), and notified other regulators, that in some cases it failed to maximize securities lending income for the benefit of certain separate account investments due to a long-standing restriction benefiting the Company that limited the availability of loanable securities. The Company has removed the restriction and implemented a remediation plan for the benefit of customers. As part of the Company’s review of this matter, in 2018 it further self-reported to the SEC, and notified other regulators, that in some cases it failed to timely process foreign tax reclaims for the separate account investments. The Company has corrected the foreign tax reclaim process and has implemented a remediation plan for the benefit of customers. The DOL’s review of the securities lending matter is closed. The Company is cooperating with the SEC in its review of the securities lending and foreign tax reclaim matters (which includes a review of the remediation plans) and has entered into discussions with the SEC staff regarding a possible settlement of both matters that would potentially involve charges under the Investment Advisers Act and financial remedies. The Company cannot predict the outcome of the discussions with the SEC regarding these matters. 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 Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with 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, 2018 . |
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. |
Adoption of New Accounting Pronouncements | Other ASU adopted during the six months ended June 30, 2019 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 which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings was immaterial. 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. The ASU eliminates separate measurement and recording of hedge ineffectiveness. It requires entities to present the earnings effect of the hedging instrument in the same income statement line item in which the hedged item is reported and also requires expanded disclosures. January 1, 2019 using the modified retrospective method which included cumulative-effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. Adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The impact of the cumulative-effect adjustment to retained earnings and accumulated other comprehensive income (loss) (“AOCI”) related to ineffectiveness of the hedge instruments outstanding at the date of adoption was immaterial. See Note 5 for additional required disclosures. Adoption of ASU 2016-02 Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842), using the optional transition method with a cumulative-effect adjustment recorded as of the beginning of the period of adoption. This ASU substantially changes a lessee’s accounting for leases and requires the recording, on balance sheet, using a dual lease accounting model, of a “right-of-use” asset and lease liability. Leases are to be classified as either operating or finance leases. Under the standard, for operating leases, lessees recognize total lease expenses using a straight-line method and finance leases are treated as the purchase of an asset on a financing basis. 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 leveraged lease accounting model for lessors and real estate specific provisions (i.e., those related to sale-leaseback transactions); it does allow, however, a grandfathering of the leveraged lease accounting model for those existing leases that are being accounted for using such model. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the standard which eliminated the need to reassess: (a) whether any existing contracts are, or contain, leases; (b) the lease classification for any existing leases (i.e., all existing lessee arrangements that were classified as operating leases before are now classified as operating leases, and all existing lessee arrangements that were classified as capital leases before are now classified as finance leases); and (c) initial direct costs for any existing leases. The Company did not elect the practical expedient, which may be applied separately, to use hindsight in determining the lease term and in assessing impairment of the Company’s right-of-use assets. Adoption of the standard resulted in the recording of right-of-use assets and lease liabilities related to existing operating leases of approximately $600 million as of January 1, 2019. Adoption of the standard also resulted in additional required disclosures. See Note 7 for additional information. |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of June 30, 2019 — ASU 2018-12 ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, was issued by the FASB on August 15, 2018 and is expected to have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In July 2019, the FASB made a tentative decision to defer the effective date of this ASU to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. A final decision regarding the effective date is expected in the third quarter of 2019. This ASU will impact, at least to some extent, the accounting and disclosure requirements for all long-duration insurance and investment contracts issued by the Company. Outlined below are four key areas of change, although there are other less significant changes not noted below. In addition to the impacts to the balance sheet upon adoption, the Company also expects an impact to how earnings emerge thereafter. ASU 2018-12 Amended Topic Description Method of adoption Effect on the financial statements or other significant matters Cash flow assumptions used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires an entity to review, and if necessary, update the cash flow assumptions used to measure the liability for future policy benefits, for both changes in future assumptions and actual experience, at least annually using a retrospective update method with a cumulative catch-up adjustment recorded in a separate line item in the Consolidated Statements of Operations. An entity may choose one of two adoption methods for the liability for future policy benefits: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) a full retrospective transition method. The options for method of adoption and the impacts of such methods are under assessment. Discount rate assumption used to measure the liability for future policy benefits for non-participating traditional and limited-pay insurance products Requires discount rate assumptions to be based on an upper-medium grade fixed income instrument yield and will be required to be updated each quarter with the impact recorded through Other Comprehensive Income (“OCI”). As noted above, an entity may choose either a modified retrospective transition method or full retrospective transition method for the liability for future policy benefits. Under either method, for balance sheet remeasurement purposes, the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI. Upon adoption, under either transition method, there will be an adjustment to AOCI as a result of remeasuring in-force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment upon adoption will largely reflect the difference between the discount rate locked-in at contract inception versus current discount rates at transition. The magnitude of such adjustment is currently being assessed. Amortization of deferred acquisition costs (DAC) and other balances Requires DAC and other balances, such as unearned revenue reserves and deferred sales inducements, to be amortized on a constant level basis over the expected term of the related contract, independent of expected profitability. An entity may apply one of two adoption methods: (1) a modified retrospective transition method whereby the entity will apply the amendments to contracts in force as of the beginning of the earliest period presented on the basis of their existing carrying amounts, adjusted for the removal of any related amounts in AOCI or (2) if an entity chooses a full retrospective transition method for its future policy benefits, as described above, it is required to also use a retrospective transition method for DAC and other balances. The options for method of adoption and the impacts of such methods are under assessment. Under the modified retrospective transition method, the Company would not expect a significant impact to the balance sheet, other than the impact of the removal of any related amounts in AOCI. Market Risk Benefits Requires an entity to measure all market risk benefits (e.g., living benefit and death benefit guarantees associated with variable annuities) at fair value with changes in value attributable to changes in an entity’s non-performance risk (“NPR”) recognized in OCI. An entity will apply a retrospective transition method which will include a cumulative-effect adjustment on the balance sheet as of the earliest period presented. Upon adoption, the Company expects an impact to retained earnings for the difference between the fair value and carrying value of benefits not currently measured at fair value (e.g., guaranteed minimum death benefits on variable annuities) and an impact from reclassifying the cumulative effect of changes in NPR from retained earnings to AOCI. The magnitude of such adjustments is currently being assessed. Other ASU issued but not yet adopted as of June 30, 2019 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-13 , Financial Instruments - Credit Losses (Topic 326): 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 continuing to develop its expected credit loss models and related systems, processes and controls for assets held on the Consolidated Statement of Financial Position at amortized cost, the most significant of which are the commercial mortgage and other loans. The allowance for credit losses will likely increase when the ASU is adopted to cover expected credit losses over the lifetime of the commercial mortgage and other loans, incorporating reasonable and supportable forecasts and expected changes in future economic conditions. The extent of the impact of adoption of this ASU on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements will depend on various factors including the economic environment and the size and type of the commercial mortgage and other loans held on the date of adoption. 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 plan to early adopt this ASU. 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 (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | (1) Excludes notes with amortized cost of $4,216 million (fair value, $4,216 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 $356 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 $4,879 million (fair value, $4,879 million ), which have been offset with the associated payables under a netting agreement. The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2019 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 $ 29,571 $ 4,973 $ 89 $ 34,455 $ 0 Obligations of U.S. states and their political subdivisions 9,889 1,314 1 11,202 0 Foreign government bonds 98,745 22,407 70 121,082 0 U.S. public corporate securities 85,282 8,653 417 93,518 0 U.S. private corporate securities(1) 33,043 2,121 186 34,978 0 Foreign public corporate securities 27,450 2,980 119 30,311 (3 ) Foreign private corporate securities 26,383 1,057 672 26,768 0 Asset-backed securities(2) 12,602 174 41 12,735 (90 ) Commercial mortgage-backed securities 14,556 607 9 15,154 0 Residential mortgage-backed securities(3) 3,043 148 4 3,187 (1 ) Total fixed maturities, available-for-sale(1) $ 340,564 $ 44,434 $ 1,608 $ 383,390 $ (94 ) December 31, 2018 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 $ 28,242 $ 2,994 $ 642 $ 30,594 $ 0 Obligations of U.S. states and their political subdivisions 9,880 676 63 10,493 0 Foreign government bonds 96,710 16,714 314 113,110 0 U.S. public corporate securities 82,257 3,912 2,754 83,415 (2 ) U.S. private corporate securities(1) 32,450 1,151 581 33,020 0 Foreign public corporate securities 27,671 2,061 531 29,201 (3 ) Foreign private corporate securities 25,314 434 1,217 24,531 0 Asset-backed securities(2) 12,888 162 77 12,973 (160 ) Commercial mortgage-backed securities 13,396 99 180 13,315 0 Residential mortgage-backed securities(3) 2,937 99 32 3,004 (1 ) Total fixed maturities, available-for-sale(1) $ 331,745 $ 28,302 $ 6,391 $ 353,656 $ (166 ) (1) Excludes notes with amortized cost of $4,356 million (fair value, $4,356 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans, sub-prime mortgages, credit cards 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 $372 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 $4,879 million (fair value, $5,190 million ), which have been offset with the associated payables under a netting agreement. |
Fixed Maturities, Held-to-maturity Securities | December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 885 $ 269 $ 0 $ 1,154 Foreign public corporate securities 668 64 0 732 Foreign private corporate securities(5) 95 3 0 98 Residential mortgage-backed securities(3) 365 23 0 388 Total fixed maturities, held-to-maturity(5) $ 2,013 $ 359 $ 0 $ 2,372 __________ (1) Excludes notes with amortized cost of $4,216 million (fair value, $4,216 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 $356 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 $4,879 million (fair value, $4,879 million ), which have been offset with the associated payables under a netting agreement. June 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 900 $ 303 $ 0 $ 1,203 Foreign public corporate securities 671 70 0 741 Foreign private corporate securities(5) 96 3 0 99 Residential mortgage-backed securities(3) 342 25 0 367 Total fixed maturities, held-to-maturity(5) $ 2,009 $ 401 $ 0 $ 2,410 __________ (1) Excludes notes with amortized cost of $4,356 million (fair value, $4,356 million ), which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, education loans, auto loans, sub-prime mortgages, credit cards 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 $372 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 $4,879 million (fair value, $5,190 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, 2019 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 $ 370 $ 0 $ 2,153 $ 89 $ 2,523 $ 89 Obligations of U.S. states and their political subdivisions 2 0 49 1 51 1 Foreign government bonds 393 56 503 14 896 70 U.S. public corporate securities 2,895 88 6,607 329 9,502 417 U.S. private corporate securities 1,124 67 2,816 119 3,940 186 Foreign public corporate securities 595 32 1,124 87 1,719 119 Foreign private corporate securities 1,663 28 7,243 644 8,906 672 Asset-backed securities 2,768 18 4,035 23 6,803 41 Commercial mortgage-backed securities 20 0 852 9 872 9 Residential mortgage-backed securities 137 0 336 4 473 4 Total $ 9,967 $ 289 $ 25,718 $ 1,319 $ 35,685 $ 1,608 __________ (1) As of June 30, 2019 , there were no securities classified as held-to-maturity in a gross unrealized loss position. December 31, 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 $ 3,007 $ 67 $ 6,986 $ 575 $ 9,993 $ 642 Obligations of U.S. states and their political subdivisions 1,725 25 999 38 2,724 63 Foreign government bonds 2,369 136 3,515 178 5,884 314 U.S. public corporate securities 34,064 1,570 13,245 1,184 47,309 2,754 U.S. private corporate securities 8,923 225 7,985 356 16,908 581 Foreign public corporate securities 7,363 308 2,928 223 10,291 531 Foreign private corporate securities 12,218 692 4,468 525 16,686 1,217 Asset-backed securities 8,255 70 669 7 8,924 77 Commercial mortgage-backed securities 1,781 14 4,733 166 6,514 180 Residential mortgage-backed securities 194 1 1,042 31 1,236 32 Total $ 79,899 $ 3,108 $ 46,570 $ 3,283 $ 126,469 $ 6,391 __________ (1) As of December 31, 2018 , there was $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. |
Fixed Maturities 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, 2019 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Fixed maturities: Due in one year or less $ 16,207 $ 16,756 $ 60 $ 61 Due after one year through five years 50,780 54,131 114 117 Due after five years through ten years 66,712 72,924 596 666 Due after ten years(1) 176,664 208,503 897 1,199 Asset-backed securities 12,602 12,735 0 0 Commercial mortgage-backed securities 14,556 15,154 0 0 Residential mortgage-backed securities 3,043 3,187 342 367 Total $ 340,564 $ 383,390 $ 2,009 $ 2,410 __________ (1) Excludes available-for-sale notes with amortized cost of $4,356 million (fair value, $4,356 million ) and held-to-maturity notes with amortized cost of $4,879 million (fair value, $5,190 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, 2019 2018 2019 2018 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 6,659 $ 9,489 $ 16,821 $ 19,074 Proceeds from maturities/prepayments 4,704 6,553 9,192 11,779 Gross investment gains from sales and maturities 228 410 711 784 Gross investment losses from sales and maturities (95 ) (187 ) (283 ) (444 ) OTTI recognized in earnings(2) (64 ) (58 ) (99 ) (97 ) Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(3) $ 23 $ 23 $ 37 $ 59 __________ (1) Includes $332 million and $254 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2019 and 2018 , respectively. (2) Excludes the portion of OTTI amounts remaining in 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 $2 million and $3 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2019 and 2018 , 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 2019 2018 2019 2018 (in millions) Credit loss impairments: Balance, beginning of period $ 149 $ 203 $ 140 $ 319 New credit loss impairments 4 0 20 0 Additional credit loss impairments on securities previously impaired 8 0 8 0 Increases due to the passage of time on previously recorded credit losses 2 4 3 6 Reductions for securities which matured, paid down, prepaid or were sold during the period (20 ) (42 ) (27 ) (155 ) Reductions for securities impaired to fair value during the period(1) 0 0 0 (4 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (1 ) (2 ) (2 ) (3 ) Balance, end of period $ 142 $ 163 $ 142 $ 163 __________ (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, 2019 December 31, 2018 Amortized Fair Value Amortized Fair Value (in millions) Short-term investments and cash equivalents $ 371 $ 371 $ 215 $ 215 Fixed maturities: Corporate securities 13,257 13,630 13,258 13,119 Commercial mortgage-backed securities 2,239 2,297 2,346 2,324 Residential mortgage-backed securities(1) 1,002 1,014 828 811 Asset-backed securities(2) 1,595 1,626 1,649 1,665 Foreign government bonds 852 870 1,087 1,083 U.S. government authorities and agencies and obligations of U.S. states 351 402 538 577 Total fixed maturities(3) 19,296 19,839 19,706 19,579 Equity securities 1,452 1,633 1,378 1,460 Total assets supporting experience-rated contractholder liabilities(4) $ 21,119 $ 21,843 $ 21,299 $ 21,254 __________ (1) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (2) Includes collateralized loan obligations, auto loans, education loans, credit-tranched securities collateralized by sub-prime mortgages and other asset types. Collateralized loan obligations at fair value were $1,025 million and $1,028 million as of June 30, 2019 and December 31, 2018 , respectively, all of which were rated AAA. (3) As a percentage of amortized cost, 93% of the portfolio was considered high or highest quality based on NAIC or equivalent ratings, as of both June 30, 2019 and December 31, 2018 . (4) As a percentage of amortized cost, 78% of the portfolio consisted of public securities as of both June 30, 2019 and December 31, 2018 . |
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 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, 2019 December 31, 2018 Amortized Fair Value Amortized Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 73,570 $ 90,438 $ 71,952 $ 84,461 Fixed maturities, held-to-maturity 878 1,173 864 1,127 Fixed maturities, trading 23 23 22 22 Assets supporting experience-rated contractholder liabilities 664 682 691 697 Total $ 75,135 $ 92,316 $ 73,529 $ 86,307 June 30, 2019 December 31, 2018 Amortized Fair Value Amortized Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 10,364 $ 13,098 $ 10,339 $ 12,586 Fixed maturities, held-to-maturity 0 0 0 0 Fixed maturities, trading 0 0 0 0 Assets supporting experience-rated contractholder liabilities 15 16 15 15 Total $ 10,379 $ 13,114 $ 10,354 $ 12,601 |
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, 2019 December 31, 2018 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,984 21.4 % $ 13,280 22.4 % Retail 8,411 13.9 8,639 14.6 Apartments/Multi-Family 16,752 27.7 16,538 28.0 Industrial 12,866 21.2 11,574 19.6 Hospitality 2,168 3.6 1,931 3.3 Other 3,913 6.5 3,846 6.5 Total commercial mortgage loans 57,094 94.3 55,808 94.4 Agricultural property loans 3,420 5.7 3,316 5.6 Total commercial mortgage and agricultural property loans by property type 60,514 100.0 % 59,124 100.0 % Allowance for credit losses (115 ) (123 ) Total net commercial mortgage and agricultural property loans by property type 60,399 59,001 Other loans: Uncollateralized loans 664 660 Residential property loans 143 157 Other collateralized loans 27 17 Total other loans 834 834 Allowance for credit losses (5 ) (5 ) Total net other loans 829 829 Total commercial mortgage and other loans(1) $ 61,228 $ 59,830 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2019 and December 31, 2018 , the net carrying value of these loans was $645 million and $763 million , respectively. |
Allowance for Credit Losses | The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Balance at December 31, 2017 $ 97 $ 3 $ 1 $ 0 $ 5 $ 106 Addition to (release of) allowance for credit losses 23 0 (1 ) 0 0 22 Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 0 0 Balance at December 31, 2018 120 3 0 0 5 128 Addition to (release of) allowance for credit losses (8 ) 0 0 0 0 (8 ) Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 0 0 Balance at June 30, 2019 $ 112 $ 3 $ 0 $ 0 $ 5 $ 120 |
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, 2019 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 $ 8 $ 0 $ 0 $ 0 $ 0 $ 8 Collectively evaluated for impairment 104 3 0 0 5 112 Total ending balance(1) $ 112 $ 3 $ 0 $ 0 $ 5 $ 120 Recorded investment(2): Individually evaluated for impairment $ 42 $ 19 $ 0 $ 0 $ 0 $ 61 Collectively evaluated for impairment 57,052 3,401 143 27 664 61,287 Total ending balance(1) $ 57,094 $ 3,420 $ 143 $ 27 $ 664 $ 61,348 __________ (1) As of June 30, 2019 , there were no loans acquired with deteriorated credit quality. (2) Recorded investment reflects the carrying value gross of related allowance. December 31, 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 $ 19 $ 0 $ 0 $ 0 $ 0 $ 19 Collectively evaluated for impairment 101 3 0 0 5 109 Total ending balance(1) $ 120 $ 3 $ 0 $ 0 $ 5 $ 128 Recorded investment(2): Individually evaluated for impairment $ 67 $ 35 $ 0 $ 0 $ 2 $ 104 Collectively evaluated for impairment 55,741 3,281 157 17 658 59,854 Total ending balance(1) $ 55,808 $ 3,316 $ 157 $ 17 $ 660 $ 59,958 __________ (1) As of December 31, 2018 , 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, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 30,536 $ 653 $ 81 $ 31,270 60%-69.99% 17,370 596 0 17,966 70%-79.99% 6,638 690 9 7,337 80% or greater 309 92 120 521 Total commercial mortgage loans $ 54,853 $ 2,031 $ 210 $ 57,094 Agricultural property loans June 30, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 3,152 $ 168 $ 17 $ 3,337 60%-69.99% 83 0 0 83 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,235 $ 168 $ 17 $ 3,420 Total commercial mortgage and agricultural property loans June 30, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 33,688 $ 821 $ 98 $ 34,607 60%-69.99% 17,453 596 0 18,049 70%-79.99% 6,638 690 9 7,337 80% or greater 309 92 120 521 Total commercial mortgage and agricultural property loans $ 58,088 $ 2,199 $ 227 $ 60,514 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, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 30,325 $ 538 $ 161 $ 31,024 60%-69.99% 16,538 621 0 17,159 70%-79.99% 6,324 754 41 7,119 80% or greater 332 142 32 506 Total commercial mortgage loans $ 53,519 $ 2,055 $ 234 $ 55,808 Agricultural property loans December 31, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 2,997 $ 198 $ 57 $ 3,252 60%-69.99% 64 0 0 64 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,061 $ 198 $ 57 $ 3,316 Total commercial mortgage and agricultural property loans December 31, 2018 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 33,322 $ 736 $ 218 $ 34,276 60%-69.99% 16,602 621 0 17,223 70%-79.99% 6,324 754 41 7,119 80% or greater 332 142 32 506 Total commercial mortgage and agricultural property loans $ 56,580 $ 2,253 $ 291 $ 59,124 |
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, 2019 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 $ 57,088 $ 6 $ 0 $ 0 $ 6 $ 57,094 $ 21 Agricultural property loans 3,402 0 0 18 18 3,420 22 Residential property loans 140 1 0 2 3 143 2 Other collateralized loans 27 0 0 0 0 27 0 Uncollateralized loans 664 0 0 0 0 664 0 Total $ 61,321 $ 7 $ 0 $ 20 $ 27 $ 61,348 $ 45 __________ (1) As of June 30, 2019 , 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, 2018 . December 31, 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 $ 55,808 $ 0 $ 0 $ 0 $ 0 $ 55,808 $ 66 Agricultural property loans 3,301 0 0 15 15 3,316 18 Residential property loans 154 1 0 2 3 157 3 Other collateralized loans 17 0 0 0 0 17 0 Uncollateralized loans 660 0 0 0 0 660 0 Total $ 59,940 $ 1 $ 0 $ 17 $ 18 $ 59,958 $ 87 __________ (1) As of December 31, 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, 2018 . |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2019 December 31, 2018 (in millions) LPs/LLCs: Equity method: Private equity $ 3,305 $ 3,182 Hedge funds 1,548 1,337 Real estate-related 1,240 1,207 Subtotal equity method 6,093 5,726 Fair value: Private equity 1,637 1,684 Hedge funds 2,128 2,135 Real estate-related 324 296 Subtotal fair value 4,089 4,115 Total LPs/LLCs 10,182 9,841 Real estate held through direct ownership(1) 2,730 2,466 Derivative instruments 1,053 1,155 Other(2) 1,116 1,064 Total other invested assets $ 15,081 $ 14,526 _________ (1) As of June 30, 2019 and December 31, 2018 , real estate held through direct ownership had mortgage debt of $799 million and $776 million , respectively. (2) 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 16 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) Fixed maturities, available-for-sale(1) $ 3,150 $ 3,001 $ 6,238 $ 5,955 Fixed maturities, held-to-maturity(1) 58 57 115 112 Fixed maturities, trading 38 30 72 61 Assets supporting experience-rated contractholder liabilities, at fair value 182 181 367 372 Equity securities, at fair value 51 59 81 94 Commercial mortgage and other loans 627 594 1,227 1,163 Policy loans 152 156 303 308 Other invested assets 271 163 476 304 Short-term investments and cash equivalents 115 82 233 154 Gross investment income 4,644 4,323 9,112 8,523 Less: investment expenses (254 ) (227 ) (506 ) (429 ) Net investment income $ 4,390 $ 4,096 $ 8,606 $ 8,094 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line item as related surplus notes, as conditions are met for right to offset. |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) Fixed maturities(1) $ 69 $ 165 $ 329 $ 243 Commercial mortgage and other loans 4 5 14 17 Investment real estate 0 60 0 62 LPs/LLCs 2 10 (3 ) 16 Derivatives(2) (411 ) 445 (1,443 ) 773 Other 0 0 1 (1 ) Realized investment gains (losses), net $ (336 ) $ 685 $ (1,102 ) $ 1,110 __________ (1) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading. (2) 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 $ 278 $ 190 Fixed maturity securities, available-for-sale—all other 42,548 21,721 Derivatives designated as cash flow hedges(1) 1,017 811 Other investments(2) (23 ) (2 ) Net unrealized gains (losses) on investments $ 43,820 $ 22,720 __________ (1) For more information on cash flow hedges, see Note 5. (2) As of June 30, 2019 , 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 | The following table sets forth the composition of “Securities sold under agreements to repurchase,” as of the dates indicated: June 30, 2019 December 31, 2018 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(1) $ 9,412 $ 20 $ 9,432 $ 9,418 $ 171 $ 9,589 U.S. public corporate securities 0 0 0 19 0 19 Residential mortgage-backed securities(1) 309 0 309 342 0 342 Total securities sold under agreements to repurchase(1)(2) $ 9,721 $ 20 $ 9,741 $ 9,779 $ 171 $ 9,950 __________ (1) Prior period amounts have been updated to conform to current period presentation. (2) 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, 2019 December 31, 2018 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 $ 80 $ 0 $ 80 $ 105 $ 0 $ 105 Obligations of U.S. states and their political subdivisions 58 0 58 88 0 88 Foreign government bonds 499 0 499 325 0 325 U.S. public corporate securities 2,615 0 2,615 2,563 0 2,563 Foreign public corporate securities 773 0 773 693 0 693 Equity securities 210 0 210 155 0 155 Total cash collateral for loaned securities(1) $ 4,235 $ 0 $ 4,235 $ 3,929 $ 0 $ 3,929 __________ (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, 2019 | |
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) Other Consolidated VIEs(1) June 30, December 31, June 30, December 31, (in millions) Fixed maturities, available-for-sale $ 100 $ 73 $ 291 $ 282 Fixed maturities, held-to-maturity 97 95 846 831 Fixed maturities, trading 1,126 1,076 0 0 Assets supporting experience-rated contractholder liabilities 0 0 5 8 Equity securities 45 41 0 0 Commercial mortgage and other loans 763 730 0 0 Other invested assets 1,866 1,526 84 77 Cash and cash equivalents 166 131 0 0 Accrued investment income 5 5 4 4 Other assets 451 463 748 721 Total assets of consolidated VIEs $ 4,619 $ 4,140 $ 1,978 $ 1,923 Other liabilities $ 290 $ 295 $ 14 $ 17 Notes issued by consolidated VIEs(2) 1,246 955 0 0 Total liabilities of consolidated VIEs $ 1,536 $ 1,250 $ 14 $ 17 __________ (1) Total assets of consolidated VIEs reflect $2,323 million and $2,013 million as of June 30, 2019 and December 31, 2018 , respectively, related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. (2) Recourse is limited to the assets of the respective VIE and does not extend to the general credit of the Company . As of June 30, 2019 and December 31, 2018 , the maturities of these obligations were greater than five years . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 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 $1,043 million and $1,148 million as of June 30, 2019 and December 31, 2018 , respectively, and total derivative liabilities of $557 million and $127 million as of June 30, 2019 and December 31, 2018 , respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position. Primary Underlying Risk /Instrument Type June 30, 2019 December 31, 2018 Fair Value Fair Value Gross Notional Assets Liabilities Gross Notional Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 3,315 $ 596 $ (78 ) $ 3,885 $ 305 $ (67 ) Interest Rate Forwards 53 1 0 600 26 0 Foreign Currency Foreign Currency Forwards 858 34 (2 ) 722 26 (2 ) Currency/Interest Rate Foreign Currency Swaps 21,245 1,670 (336 ) 20,724 1,520 (358 ) Total Derivatives Designated as Hedge Accounting Instruments $ 25,471 $ 2,301 $ (416 ) $ 25,931 $ 1,877 $ (427 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 138,186 $ 9,604 $ (4,641 ) $ 140,963 $ 5,792 $ (3,435 ) Interest Rate Futures 17,213 3 (7 ) 13,991 23 (2 ) Interest Rate Options 20,798 327 (220 ) 24,002 147 (314 ) Interest Rate Forwards 2,353 21 0 5,049 72 0 Foreign Currency Foreign Currency Forwards 24,444 312 (120 ) 19,849 246 (138 ) Foreign Currency Options 1 0 0 2 0 0 Currency/Interest Rate Foreign Currency Swaps 14,066 827 (420 ) 13,784 773 (421 ) Credit Credit Default Swaps 3,165 103 (2 ) 5,207 33 (23 ) Equity Equity Futures 1,329 0 (5 ) 1,141 0 (8 ) Equity Options 68,244 570 (792 ) 58,693 384 (554 ) Total Return Swaps 17,945 38 (302 ) 17,309 1,131 (86 ) Other Other(1) 1,258 0 0 508 0 0 Synthetic GICs 80,337 1 0 79,215 2 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 389,339 $ 11,806 $ (6,509 ) $ 379,713 $ 8,603 $ (4,981 ) Total Derivatives(2)(3) $ 414,810 $ 14,107 $ (6,925 ) $ 405,644 $ 10,480 $ (5,408 ) __________ (1) “Other” primarily includes derivative contracts used to improve the balance of the Company’s tail longevity and mortality risk. Under these contracts, the Company’s gains (losses) are capped at the notional amount. (2) Excludes embedded derivatives and associated reinsurance recoverables which contain multiple underlying risks. The fair value of these embedded derivatives was a net liability of $13,672 million and $8,959 million as of June 30, 2019 and December 31, 2018 , respectively, primarily included in “Future policy benefits.” (3) Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position. |
Schedule of Derivative instruments (hedged item in fair value hedge accounting relationship) | As of June 30, 2019 , the following amounts were recorded on the Unaudited Interim Consolidated Statements of Financial Position related to the carrying amount of the hedged assets (liabilities) and cumulative basis adjustments included in the carrying amount for fair value hedges. Balance Sheet Line Item in which Hedged Item is Recorded Carrying Amount of the Hedged Assets (Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets (Liabilities)(1) (in millions) Fixed maturities, available-for-sale, at fair value $ 441 $ 62 Commercial mortgage and other loans $ 24 $ 2 Policyholders’ account balances $ (1,327 ) $ (85 ) Future policy benefits $ (642 ) $ (150 ) ________ (1) There are no fair value hedging adjustments for hedged assets and liabilities for which hedge accounting has been discontinued. |
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, 2019 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 14,033 $ (13,063 ) $ 970 $ (633 ) $ 337 Securities purchased under agreement to resell 1,257 0 1,257 (1,257 ) 0 Total assets $ 15,290 $ (13,063 ) $ 2,227 $ (1,890 ) $ 337 Offsetting of Financial Liabilities: Derivatives(1) $ 6,913 $ (6,368 ) $ 545 $ (191 ) $ 354 Securities sold under agreement to repurchase 9,741 0 9,741 (9,741 ) 0 Total liabilities $ 16,654 $ (6,368 ) $ 10,286 $ (9,932 ) $ 354 December 31, 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 Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 10,407 $ (9,331 ) $ 1,076 $ (614 ) $ 462 Securities purchased under agreement to resell 986 0 986 (986 ) 0 Total assets $ 11,393 $ (9,331 ) $ 2,062 $ (1,600 ) $ 462 Offsetting of Financial Liabilities: Derivatives(1) $ 5,387 $ (5,281 ) $ 106 $ (45 ) $ 61 Securities sold under agreement to repurchase 9,950 0 9,950 (9,950 ) 0 Total liabilities $ 15,337 $ (5,281 ) $ 10,056 $ (9,995 ) $ 61 __________ (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, 2019 Gross Amounts of Recognized Financial Instruments Gross Amounts Offset in the Statements of Financial Position Net Amounts Presented in the Statements of Financial Position Financial Instruments/ Collateral(1) Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 14,033 $ (13,063 ) $ 970 $ (633 ) $ 337 Securities purchased under agreement to resell 1,257 0 1,257 (1,257 ) 0 Total assets $ 15,290 $ (13,063 ) $ 2,227 $ (1,890 ) $ 337 Offsetting of Financial Liabilities: Derivatives(1) $ 6,913 $ (6,368 ) $ 545 $ (191 ) $ 354 Securities sold under agreement to repurchase 9,741 0 9,741 (9,741 ) 0 Total liabilities $ 16,654 $ (6,368 ) $ 10,286 $ (9,932 ) $ 354 December 31, 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 Net Amount (in millions) Offsetting of Financial Assets: Derivatives(1) $ 10,407 $ (9,331 ) $ 1,076 $ (614 ) $ 462 Securities purchased under agreement to resell 986 0 986 (986 ) 0 Total assets $ 11,393 $ (9,331 ) $ 2,062 $ (1,600 ) $ 462 Offsetting of Financial Liabilities: Derivatives(1) $ 5,387 $ (5,281 ) $ 106 $ (45 ) $ 61 Securities sold under agreement to repurchase 9,950 0 9,950 (9,950 ) 0 Total liabilities $ 15,337 $ (5,281 ) $ 10,056 $ (9,995 ) $ 61 __________ (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, including the offset of the hedged item in fair value hedge relationships. Three Months Ended June 30, 2019 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (9 ) $ (2 ) $ 0 $ 0 $ 101 $ 80 $ 0 Currency 2 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (7 ) (2 ) 0 0 101 80 0 Gains (losses) on the hedged item: Interest Rate 9 5 0 0 (98 ) (73 ) 0 Currency (1 ) 1 0 0 0 0 0 Total gains (losses) on hedged item 8 6 0 0 (98 ) (73 ) 0 Total gains (losses) on fair value hedges net of hedged item 1 4 0 0 3 7 0 Cash flow hedges Interest Rate 0 0 0 0 0 0 (1 ) Currency 1 0 0 0 0 0 14 Currency/Interest Rate 47 69 40 0 0 0 229 Total gains (losses) on cash flow hedges 48 69 40 0 0 0 242 Net investment hedges Currency 0 0 0 0 0 0 1 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 1 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 2,346 0 0 0 0 0 0 Currency 122 0 (5 ) 0 0 0 0 Currency/Interest Rate 20 0 0 0 0 0 0 Credit 36 0 0 0 0 0 0 Equity (617 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (2,368 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (461 ) 0 (5 ) 0 0 0 0 Total $ (412 ) $ 73 $ 35 $ 0 $ 3 $ 7 $ 243 Six Months Ended June 30, 2019 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (15 ) $ (4 ) $ 0 $ 0 $ 168 $ 131 $ 0 Currency 1 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (14 ) (4 ) 0 0 168 131 0 Gains (losses) on the hedged item: Interest Rate 11 11 0 0 (164 ) (119 ) 0 Currency 0 2 0 0 0 0 0 Total gains (losses) on hedged item 11 13 0 0 (164 ) (119 ) 0 Total gains (losses) on fair value hedges net of hedged item (3 ) 9 0 0 4 12 0 Cash flow hedges Interest Rate (1 ) 0 0 0 0 0 22 Currency 2 0 0 0 0 0 5 Currency/Interest Rate 40 137 (6 ) 0 0 0 170 Total gains (losses) on cash flow hedges 41 137 (6 ) 0 0 0 197 Net investment hedges Currency 0 0 0 0 0 0 2 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 2 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 3,734 0 0 0 0 0 0 Currency 84 0 0 0 0 0 0 Currency/Interest Rate 204 0 0 0 0 0 0 Credit 104 0 0 0 0 0 0 Equity (2,427 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (3,180 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (1,481 ) 0 0 0 0 0 0 Total $ (1,443 ) $ 146 $ (6 ) $ 0 $ 4 $ 12 $ 199 Three Months Ended June 30, 2018(2) Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ 5 $ (2 ) $ 0 $ 0 $ (28 ) $ 0 Currency 1 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments 6 (2 ) 0 0 (28 ) 0 Gains (losses) on the hedged item: Interest Rate (5 ) 5 0 0 29 0 Currency (1 ) 1 0 0 0 0 Total gains (losses) on hedged item (6 ) 6 0 0 29 0 Total gains (losses) on fair value hedges net of hedged item 0 4 0 0 1 0 Cash flow hedges Interest Rate 2 0 0 0 0 (1 ) Currency 3 0 0 0 0 18 Currency/Interest Rate 33 52 209 0 0 704 Total gains (losses) on cash flow hedges 38 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 gains (losses) on net investment hedges 2 0 0 0 0 5 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (434 ) 0 0 0 0 0 Currency (133 ) 0 (1 ) 0 0 0 Currency/Interest Rate 573 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 gains (losses) on derivatives not qualifying as hedge accounting instruments 404 0 1 0 0 0 Total $ 444 $ 56 $ 210 $ 0 $ 1 $ 726 Six Months Ended June 30, 2018(2) Realized Net Other Interest Interest AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ 22 $ (6 ) $ 0 $ 0 $ (111 ) $ 0 Currency 3 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments 25 (6 ) 0 0 (111 ) 0 Gains (losses) on the hedged item: Interest Rate (24 ) 19 0 0 115 0 Currency (3 ) 2 0 0 0 0 Total gains (losses) on hedged item (27 ) 21 0 0 115 0 Total gains (losses) on fair value hedges net of hedged item (2 ) 15 0 0 4 0 Cash flow hedges Interest Rate 2 0 0 (1 ) 0 6 Currency 0 0 0 0 0 9 Currency/Interest Rate 27 100 118 0 0 123 Total gains (losses) on cash flow hedges 29 100 118 (1 ) 0 138 Net investment hedges Currency 0 0 0 0 0 3 Currency/Interest Rate 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 3 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,949 ) 0 0 0 0 0 Currency 279 0 0 0 0 0 Currency/Interest Rate 25 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 gains (losses) on derivatives not qualifying as hedge accounting instruments 738 0 1 0 0 0 Total $ 765 $ 115 $ 119 $ (1 ) $ 4 $ 141 _________ (1) Net change in AOCI. (2) |
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, 2018 $ 811 Cumulative-effect adjustment from the adoption of ASU 2017-12(1) 9 Amount recorded in AOCI Interest Rate 21 Currency 7 Currency/Interest Rate 341 Total amount recorded in AOCI 369 Amount reclassified from AOCI to income Interest Rate 1 Currency (2 ) Currency/Interest Rate (171 ) Total amount reclassified from AOCI to income (172 ) Balance, June 30, 2019 $ 1,017 _________ (1) See Note 2 for details. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 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 $ 34,361 $ 94 $ $ 34,455 Obligations of U.S. states and their political subdivisions 0 11,198 4 11,202 Foreign government bonds 0 121,058 24 121,082 U.S. corporate public securities 0 93,402 116 93,518 U.S. corporate private securities(2) 0 33,213 1,765 34,978 Foreign corporate public securities 0 30,240 71 30,311 Foreign corporate private securities 0 25,928 840 26,768 Asset-backed securities(3) 0 11,937 798 12,735 Commercial mortgage-backed securities 0 15,109 45 15,154 Residential mortgage-backed securities 0 3,169 18 3,187 Subtotal 0 379,615 3,775 383,390 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 192 0 192 Obligations of U.S. states and their political subdivisions 0 210 0 210 Foreign government bonds 0 844 26 870 Corporate securities 0 13,077 553 13,630 Asset-backed securities(3) 0 1,569 57 1,626 Commercial mortgage-backed securities 0 2,297 0 2,297 Residential mortgage-backed securities 0 1,014 0 1,014 Equity securities 1,360 272 1 1,633 All other(4) 0 365 1 366 Subtotal 1,360 19,840 638 21,838 Fixed maturities, trading 0 3,459 296 3,755 Equity securities 5,212 831 624 6,667 Commercial mortgage and other loans 0 645 0 645 Other invested assets(5) 4 14,101 436 (13,063 ) 1,478 Short-term investments 1,888 2,450 288 4,626 Cash equivalents 778 7,138 1 7,917 Other assets 0 0 98 98 Separate account assets(6)(7) 44,622 232,742 1,708 279,072 Total assets $ 53,864 $ 660,821 $ 7,864 $ (13,063 ) $ 709,486 Future policy benefits(8) $ 0 $ 0 $ 12,723 $ $ 12,723 Policyholders’ account balances 0 0 1,047 1,047 Other liabilities 13 6,912 0 (6,368 ) 557 Notes issued by consolidated VIEs 0 0 816 816 Total liabilities $ 13 $ 6,912 $ 14,586 $ (6,368 ) $ 15,143 As of December 31, 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 $ 30,513 $ 81 $ $ 30,594 Obligations of U.S. states and their political subdivisions 0 10,488 5 10,493 Foreign government bonds 0 112,985 125 113,110 U.S. corporate public securities 0 83,282 133 83,415 U.S. corporate private securities(2) 0 31,265 1,755 33,020 Foreign corporate public securities 0 29,148 53 29,201 Foreign corporate private securities 0 23,787 744 24,531 Asset-backed securities(3) 0 11,726 1,247 12,973 Commercial mortgage-backed securities 0 13,302 13 13,315 Residential mortgage-backed securities 0 2,925 79 3,004 Subtotal 0 349,421 4,235 353,656 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 381 0 381 Obligations of U.S. states and their political subdivisions 0 196 0 196 Foreign government bonds 0 858 225 1,083 Corporate securities 0 12,675 444 13,119 Asset-backed securities(3) 0 1,516 149 1,665 Commercial mortgage-backed securities 0 2,324 0 2,324 Residential mortgage-backed securities 0 811 0 811 Equity securities 1,222 237 1 1,460 All other(4) 0 215 0 215 Subtotal 1,222 19,213 819 21,254 Fixed maturities, trading 0 3,037 206 3,243 Equity securities 4,819 610 671 6,100 Commercial mortgage and other loans 0 763 0 763 Other invested assets(5) 23 10,454 263 (9,331 ) 1,409 Short-term investments 2,713 2,691 89 5,493 Cash equivalents 2,848 6,553 77 9,478 Other assets 0 0 25 25 Separate account assets(6)(7) 39,534 212,998 1,534 254,066 Total assets $ 51,159 $ 605,740 $ 7,919 $ (9,331 ) $ 655,487 Future policy benefits(8) $ 0 $ 0 $ 8,926 $ $ 8,926 Policyholders’ account balances 0 0 56 56 Other liabilities 18 5,398 0 (5,281 ) 135 Notes issued by consolidated VIEs 0 0 595 595 Total liabilities $ 18 $ 5,398 $ 9,577 $ (5,281 ) $ 9,712 __________ (1) “Netting” amounts represent cash collateral of $6,695 million and $4,050 million as of June 30, 2019 and December 31, 2018 , respectively, and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting arrangements. (2) Excludes notes with fair value of $4,356 million (carrying amount of $4,356 million ) and $4,216 million (carrying amount of $4,216 million ) as of June 30, 2019 and December 31, 2018 , 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) All other represents cash equivalents and short-term investments. (5) 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. As of June 30, 2019 and December 31, 2018 , the fair values of such investments were $4,089 million and $4,115 million respectively. (6) 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. As of June 30, 2019 and December 31, 2018 , the fair value of such investments was $24,508 million and $25,070 million , respectively. (7) 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. (8) As of June 30, 2019 , the net embedded derivative liability position of $12.7 billion includes $0.6 billion of embedded derivatives in an asset position and $13.3 billion of embedded derivatives in a liability position. As of December 31, 2018 , the net embedded derivative liability position of $8.9 billion includes $0.7 billion of embedded derivatives in an asset position and $9.6 billion of embedded derivatives in a liability position. |
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, 2019 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) $ 1,441 Discounted cash flow Discount rate 0.36% - 20% 8.37% Decrease Market comparables EBITDA multiples(3) 4.5X - 9.2X 7.0X Increase Liquidation Liquidation value 3.98% - 100% 58.42% Increase Separate account assets-commercial mortgage loans(4) $ 860 Discounted cash flow Spread 1.06% - 2.44% 1.21% Decrease Liabilities: Future policy benefits(5) $ 12,723 Discounted cash flow Lapse rate(7) 1% - 18% Decrease Spread over LIBOR(8) 0.16% - 1.24% Decrease Utilization rate(9) 43% - 97% Increase Withdrawal rate See table footnote (10) below. Mortality rate(11) 0% - 15% Decrease Equity volatility curve 13% - 23% Increase Policyholders’ account balances(6) $ 1,047 Discounted cash flow Lapse rate(7) 1% - 42% Decrease Spread over LIBOR(8) 0.16% - 1.24% Decrease Mortality rate(11) 0% - 24% Decrease Equity volatility curve 10% - 23% Increase As of December 31, 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) $ 1,392 Discounted cash flow Discount rate 0.57% - 20% 8.58% Decrease Market comparables EBITDA multiples(3) 4.5X - 8.5X 8.1X Increase Liquidation Liquidation value 11.77% - 94% 32.16% Increase Separate account assets-commercial mortgage loans(4) $ 785 Discounted cash flow Spread 1.12% - 2.55% 1.29% Decrease Liabilities: Future policy benefits(5) $ 8,926 Discounted cash flow Lapse rate(7) 1% - 13% Decrease Spread over LIBOR(8) 0.36% - 1.60% Decrease Utilization rate(9) 50% - 97% Increase Withdrawal rate See table footnote (10) below. Mortality rate(11) 0% - 15% Decrease Equity volatility curve 18% - 22% 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) Policyholders’ account balances primarily represent general account liabilities for the index-linked interest credited on certain of the Company’s life and annuity products that 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. (7) Lapse rates for contracts with living benefit guarantees 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 for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply. For any given contract, lapse rates vary throughout the period over which cash flows are projected for the purposes of valuing these embedded derivatives. (8) 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 the Company’s estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. 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 funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt. (9) 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. (10) 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, 2019 and December 31, 2018 , 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%. (11) The range reflects the mortality rates for the vast majority of business with living benefits and other contracts, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits. Mortality rates may vary by product, age, and duration. 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. Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 88 $ 0 $ 6 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 138 (1 ) 0 0 0 0 (2 ) 0 (111 ) 24 0 Corporate securities(3) 2,757 6 288 (17 ) 0 (225 ) 1 19 (37 ) 2,792 (5 ) Structured securities(4) 1,915 8 113 (47 ) 0 (101 ) 9 17 (1,053 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 29 0 0 0 0 (3 ) 0 0 0 26 0 Corporate securities(3) 592 5 14 0 0 (67 ) 0 10 (1 ) 553 11 Structured securities(4) 60 1 0 0 0 (4 ) 0 0 0 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 0 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 240 (7 ) 36 (13 ) 0 0 1 39 0 296 (7 ) Equity securities 674 16 23 (13 ) 0 (59 ) 6 1 (24 ) 624 15 Other invested assets 373 0 61 0 0 0 2 0 0 436 0 Short-term investments 168 0 273 0 0 (153 ) 0 0 0 288 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 48 42 8 0 0 0 0 0 0 98 41 Separate account assets(5) 1,635 44 139 (6 ) 0 (27 ) 0 0 (77 ) 1,708 41 Liabilities: Future policy benefits (10,025 ) (2,400 ) 0 0 (298 ) 0 0 0 0 (12,723 ) (2,503 ) Policyholders’ account balances(6) (146 ) (828 ) 0 0 (73 ) 0 0 0 0 (1,047 ) (821 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (817 ) 1 0 0 0 0 0 0 0 (816 ) 1 Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (11 ) $ 0 $ 0 $ 18 $ 6 $ (5 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 6 0 0 1 0 12 0 Other assets: Fixed maturities, trading 0 (8 ) 0 0 1 0 (7 ) 0 Equity securities 0 16 0 0 0 0 15 0 Other invested assets 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 42 0 0 0 0 41 0 0 Separate account assets(5) 0 0 43 0 1 0 0 41 Liabilities: Future policy benefits (2,400 ) 0 0 0 0 (2,503 ) 0 0 Policyholders’ account balances (828 ) 0 0 0 0 (821 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs 1 0 0 0 0 1 0 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 81 $ 0 $ 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 5 0 0 0 0 (1 ) 0 0 0 4 0 Foreign government 125 2 0 0 0 0 (1 ) 9 (111 ) 24 0 Corporate securities(3) 2,685 10 607 (29 ) 0 (604 ) (1 ) 183 (59 ) 2,792 (26 ) Structured securities(4) 1,339 25 431 (47 ) 0 (332 ) 7 750 (1,312 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 225 0 0 0 0 (3 ) (196 ) 0 0 26 0 Corporate securities(3) 444 10 41 0 0 (143 ) 196 10 (5 ) 553 6 Structured securities(4) 149 1 6 0 0 (25 ) 0 0 (74 ) 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 1 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 206 (11 ) 74 (14 ) 0 0 3 39 (1 ) 296 (7 ) Equity securities 671 24 46 (24 ) 0 (74 ) 4 1 (24 ) 624 22 Other invested assets 263 (1 ) 218 0 0 (42 ) (2 ) 0 0 436 (1 ) Short-term investments 89 0 426 0 0 (227 ) 0 0 0 288 0 Cash equivalents 77 0 1 0 0 (77 ) 0 0 0 1 0 Other assets 25 56 17 0 0 0 0 0 0 98 55 Separate account assets(5) 1,534 125 228 (17 ) 0 (50 ) 0 0 (112 ) 1,708 115 Liabilities: Future policy benefits (8,926 ) (3,210 ) 0 0 (588 ) 0 1 0 0 (12,723 ) (3,364 ) Policyholders’ account balances(6) (56 ) (879 ) 0 0 (109 ) 0 (3 ) 0 0 (1,047 ) (872 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (595 ) (1 ) 0 0 (858 ) 638 0 0 0 (816 ) (1 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ 40 $ 10 $ (26 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 9 0 0 3 0 8 0 Other assets: Fixed maturities, trading 0 (12 ) 0 0 1 0 (7 ) 0 Equity securities 0 24 0 0 0 0 22 0 Other invested assets (1 ) 0 0 0 0 (1 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 56 0 0 0 0 55 0 0 Separate account assets(5) 0 0 123 0 2 0 0 115 Liabilities: Future policy benefits (3,210 ) 0 0 0 0 (3,364 ) 0 0 Policyholders’ account balances (879 ) 0 0 0 0 (872 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (1 ) 0 0 0 0 (1 ) 0 0 Three Months Ended June 30, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 59 $ 0 $ 8 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 67 $ 0 U.S. states 5 0 0 0 0 0 0 0 0 5 0 Foreign government 128 (2 ) 0 0 0 0 (4 ) 15 0 137 0 Corporate securities(3) 2,735 (29 ) 257 (3 ) 0 (286 ) (31 ) 69 (21 ) 2,691 (21 ) Structured securities(4) 6,899 (9 ) 441 (278 ) 0 (668 ) (24 ) 62 (4,759 ) 1,664 0 Assets supporting experience-rated contractholder liabilities: Foreign government 220 4 0 0 0 (3 ) 0 0 0 221 2 Corporate securities(3) 468 (10 ) 41 0 0 (51 ) 0 40 0 488 (10 ) Structured securities(4) 664 (2 ) 16 0 0 (129 ) 0 5 (447 ) 107 (1 ) Equity securities 5 0 0 (1 ) 0 0 0 0 0 4 0 All other activity 7 0 24 0 0 (26 ) 0 0 0 5 0 Other assets: Fixed maturities, trading 204 5 9 (38 ) 0 (3 ) (2 ) 1 (3 ) 173 0 Equity securities 785 (12 ) 35 (15 ) 0 (2 ) (11 ) 3 0 783 (15 ) Other invested assets 144 (4 ) 0 (12 ) 0 0 (6 ) 0 0 122 (3 ) Short-term investments 10 0 8 0 0 (14 ) (3 ) 0 0 1 0 Cash equivalents 0 0 9 0 0 (7 ) 0 0 0 2 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Separate account assets(5) 2,360 22 253 (14 ) 0 (140 ) 0 29 (694 ) 1,816 21 Liabilities: Future policy benefits (6,981 ) 683 0 0 (287 ) 0 0 0 0 (6,585 ) 612 Policyholders’ account balances(6) (40 ) (8 ) 0 0 0 6 0 0 0 (42 ) (8 ) Other liabilities (16 ) (10 ) 8 0 0 0 0 0 0 (18 ) (10 ) Notes issued by consolidated VIEs (612 ) 3 0 0 0 0 0 0 0 (609 ) 3 Three Months Ended June 30, 2018 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (19 ) $ 0 $ 0 $ (25 ) $ 4 $ (21 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (11 ) 0 0 3 0 (9 ) 0 Other assets: Fixed maturities, trading 1 4 0 0 0 0 0 0 Equity securities 0 (12 ) 0 0 0 0 (15 ) 0 Other invested assets (4 ) 0 0 0 0 (3 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 Separate account assets(5) 0 0 22 0 0 0 0 21 Liabilities: Future policy benefits 683 0 0 0 0 612 0 0 Policyholders’ account balances (8 ) 0 0 0 0 (8 ) 0 0 Other liabilities (10 ) 0 0 0 0 (10 ) 0 0 Notes issued by consolidated VIEs 3 0 0 0 0 3 0 0 Six Months Ended June 30, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 52 $ 0 $ 15 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 67 $ 0 U.S. states 5 0 0 0 0 0 0 0 0 5 0 Foreign government 148 (2 ) 0 0 0 0 (3 ) 20 (26 ) 137 0 Corporate securities(3) 2,776 (18 ) 375 (4 ) 0 (455 ) (19 ) 129 (93 ) 2,691 (30 ) Structured securities(4) 6,715 (24 ) 1,989 (344 ) 0 (1,317 ) 6 1,133 (6,494 ) 1,664 0 Assets supporting experience-rated contractholder liabilities: Foreign government 223 1 0 0 0 (3 ) 0 0 0 221 (2 ) Corporate securities(3) 462 (9 ) 65 0 0 (69 ) 0 40 (1 ) 488 (9 ) Structured securities(4) 722 (2 ) 19 0 0 (142 ) 0 33 (523 ) 107 (1 ) Equity securities 4 1 0 (1 ) 0 0 0 0 0 4 1 All other activity 7 0 43 0 0 (45 ) 0 0 0 5 0 Other assets: Fixed maturities, trading 156 3 49 (42 ) 0 (3 ) 3 12 (5 ) 173 4 Equity securities 795 2 42 (32 ) 0 (39 ) 15 3 (3 ) 783 (1 ) Other invested assets 137 4 1 (12 ) 0 0 (8 ) 0 0 122 2 Short-term investments 8 (1 ) 22 0 0 (26 ) (2 ) 0 0 1 (1 ) Cash equivalents 0 0 9 0 0 (7 ) 0 0 0 2 0 Other assets 13 (13 ) 0 0 0 0 0 0 0 0 (13 ) Separate account assets(5) 2,122 (11 ) 490 (22 ) 0 (261 ) 0 224 (726 ) 1,816 (5 ) Liabilities: Future policy benefits (8,720 ) 2,709 0 0 (574 ) 0 0 0 0 (6,585 ) 2,529 Policyholders’ account balances(6) (47 ) (3 ) 0 0 0 8 0 0 0 (42 ) (3 ) Other liabilities (3 ) (34 ) 18 0 0 0 1 0 0 (18 ) (33 ) Notes issued by consolidated VIEs (1,196 ) 0 0 0 0 0 587 0 0 (609 ) 0 Six Months Ended June 30, 2018 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ (39 ) $ 8 $ (30 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (13 ) 0 0 4 0 (11 ) 0 Other assets: Fixed maturities, trading 1 2 0 0 0 0 4 0 Equity securities 0 2 0 0 0 0 (1 ) 0 Other invested assets 4 0 0 0 0 2 0 0 Short-term investments (1 ) 0 0 0 0 (1 ) 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets (13 ) 0 0 0 0 (13 ) 0 0 Separate account assets(5) 0 0 (11 ) 0 0 0 0 (5 ) Liabilities: Future policy benefits 2,709 0 0 0 0 2,529 0 0 Policyholders’ account balances (3 ) 0 0 0 0 (3 ) 0 0 Other liabilities (34 ) 0 0 0 0 (33 ) 0 0 Notes issued by consolidated VIEs 0 0 0 0 0 0 0 0 __________ (1) “Other,” for the periods ended June 30, 2019 and June 30, 2018 , primarily represent deconsolidation of VIE, reclassifications of certain assets between reporting categories and foreign currency translation. (2) 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. (3) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (4) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (5) 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. (6) Issuances and settlements for Policyholders’ account balances are presented net in the rollforward. Prior year amounts are restated to conform to current year presentation. |
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. Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 88 $ 0 $ 6 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 138 (1 ) 0 0 0 0 (2 ) 0 (111 ) 24 0 Corporate securities(3) 2,757 6 288 (17 ) 0 (225 ) 1 19 (37 ) 2,792 (5 ) Structured securities(4) 1,915 8 113 (47 ) 0 (101 ) 9 17 (1,053 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 29 0 0 0 0 (3 ) 0 0 0 26 0 Corporate securities(3) 592 5 14 0 0 (67 ) 0 10 (1 ) 553 11 Structured securities(4) 60 1 0 0 0 (4 ) 0 0 0 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 0 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 240 (7 ) 36 (13 ) 0 0 1 39 0 296 (7 ) Equity securities 674 16 23 (13 ) 0 (59 ) 6 1 (24 ) 624 15 Other invested assets 373 0 61 0 0 0 2 0 0 436 0 Short-term investments 168 0 273 0 0 (153 ) 0 0 0 288 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 48 42 8 0 0 0 0 0 0 98 41 Separate account assets(5) 1,635 44 139 (6 ) 0 (27 ) 0 0 (77 ) 1,708 41 Liabilities: Future policy benefits (10,025 ) (2,400 ) 0 0 (298 ) 0 0 0 0 (12,723 ) (2,503 ) Policyholders’ account balances(6) (146 ) (828 ) 0 0 (73 ) 0 0 0 0 (1,047 ) (821 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (817 ) 1 0 0 0 0 0 0 0 (816 ) 1 Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (11 ) $ 0 $ 0 $ 18 $ 6 $ (5 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 6 0 0 1 0 12 0 Other assets: Fixed maturities, trading 0 (8 ) 0 0 1 0 (7 ) 0 Equity securities 0 16 0 0 0 0 15 0 Other invested assets 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 42 0 0 0 0 41 0 0 Separate account assets(5) 0 0 43 0 1 0 0 41 Liabilities: Future policy benefits (2,400 ) 0 0 0 0 (2,503 ) 0 0 Policyholders’ account balances (828 ) 0 0 0 0 (821 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs 1 0 0 0 0 1 0 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 81 $ 0 $ 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 5 0 0 0 0 (1 ) 0 0 0 4 0 Foreign government 125 2 0 0 0 0 (1 ) 9 (111 ) 24 0 Corporate securities(3) 2,685 10 607 (29 ) 0 (604 ) (1 ) 183 (59 ) 2,792 (26 ) Structured securities(4) 1,339 25 431 (47 ) 0 (332 ) 7 750 (1,312 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 225 0 0 0 0 (3 ) (196 ) 0 0 26 0 Corporate securities(3) 444 10 41 0 0 (143 ) 196 10 (5 ) 553 6 Structured securities(4) 149 1 6 0 0 (25 ) 0 0 (74 ) 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 1 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 206 (11 ) 74 (14 ) 0 0 3 39 (1 ) 296 (7 ) Equity securities 671 24 46 (24 ) 0 (74 ) 4 1 (24 ) 624 22 Other invested assets 263 (1 ) 218 0 0 (42 ) (2 ) 0 0 436 (1 ) Short-term investments 89 0 426 0 0 (227 ) 0 0 0 288 0 Cash equivalents 77 0 1 0 0 (77 ) 0 0 0 1 0 Other assets 25 56 17 0 0 0 0 0 0 98 55 Separate account assets(5) 1,534 125 228 (17 ) 0 (50 ) 0 0 (112 ) 1,708 115 Liabilities: Future policy benefits (8,926 ) (3,210 ) 0 0 (588 ) 0 1 0 0 (12,723 ) (3,364 ) Policyholders’ account balances(6) (56 ) (879 ) 0 0 (109 ) 0 (3 ) 0 0 (1,047 ) (872 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (595 ) (1 ) 0 0 (858 ) 638 0 0 0 (816 ) (1 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ 40 $ 10 $ (26 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 9 0 0 3 0 8 0 Other assets: Fixed maturities, trading 0 (12 ) 0 0 1 0 (7 ) 0 Equity securities 0 24 0 0 0 0 22 0 Other invested assets (1 ) 0 0 0 0 (1 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 56 0 0 0 0 55 0 0 Separate account assets(5) 0 0 123 0 2 0 0 115 Liabilities: Future policy benefits (3,210 ) 0 0 0 0 (3,364 ) 0 0 Policyholders’ account balances (879 ) 0 0 0 0 (872 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (1 ) 0 0 0 0 (1 ) 0 0 Three Months Ended June 30, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 59 $ 0 $ 8 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 67 $ 0 U.S. states 5 0 0 0 0 0 0 0 0 5 0 Foreign government 128 (2 ) 0 0 0 0 (4 ) 15 0 137 0 Corporate securities(3) 2,735 (29 ) 257 (3 ) 0 (286 ) (31 ) 69 (21 ) 2,691 (21 ) Structured securities(4) 6,899 (9 ) 441 (278 ) 0 (668 ) (24 ) 62 (4,759 ) 1,664 0 Assets supporting experience-rated contractholder liabilities: Foreign government 220 4 0 0 0 (3 ) 0 0 0 221 2 Corporate securities(3) 468 (10 ) 41 0 0 (51 ) 0 40 0 488 (10 ) Structured securities(4) 664 (2 ) 16 0 0 (129 ) 0 5 (447 ) 107 (1 ) Equity securities 5 0 0 (1 ) 0 0 0 0 0 4 0 All other activity 7 0 24 0 0 (26 ) 0 0 0 5 0 Other assets: Fixed maturities, trading 204 5 9 (38 ) 0 (3 ) (2 ) 1 (3 ) 173 0 Equity securities 785 (12 ) 35 (15 ) 0 (2 ) (11 ) 3 0 783 (15 ) Other invested assets 144 (4 ) 0 (12 ) 0 0 (6 ) 0 0 122 (3 ) Short-term investments 10 0 8 0 0 (14 ) (3 ) 0 0 1 0 Cash equivalents 0 0 9 0 0 (7 ) 0 0 0 2 0 Other assets 0 0 0 0 0 0 0 0 0 0 0 Separate account assets(5) 2,360 22 253 (14 ) 0 (140 ) 0 29 (694 ) 1,816 21 Liabilities: Future policy benefits (6,981 ) 683 0 0 (287 ) 0 0 0 0 (6,585 ) 612 Policyholders’ account balances(6) (40 ) (8 ) 0 0 0 6 0 0 0 (42 ) (8 ) Other liabilities (16 ) (10 ) 8 0 0 0 0 0 0 (18 ) (10 ) Notes issued by consolidated VIEs (612 ) 3 0 0 0 0 0 0 0 (609 ) 3 Three Months Ended June 30, 2018 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (19 ) $ 0 $ 0 $ (25 ) $ 4 $ (21 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (11 ) 0 0 3 0 (9 ) 0 Other assets: Fixed maturities, trading 1 4 0 0 0 0 0 0 Equity securities 0 (12 ) 0 0 0 0 (15 ) 0 Other invested assets (4 ) 0 0 0 0 (3 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 0 0 0 0 0 0 0 0 Separate account assets(5) 0 0 22 0 0 0 0 21 Liabilities: Future policy benefits 683 0 0 0 0 612 0 0 Policyholders’ account balances (8 ) 0 0 0 0 (8 ) 0 0 Other liabilities (10 ) 0 0 0 0 (10 ) 0 0 Notes issued by consolidated VIEs 3 0 0 0 0 3 0 0 Six Months Ended June 30, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 52 $ 0 $ 15 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 67 $ 0 U.S. states 5 0 0 0 0 0 0 0 0 5 0 Foreign government 148 (2 ) 0 0 0 0 (3 ) 20 (26 ) 137 0 Corporate securities(3) 2,776 (18 ) 375 (4 ) 0 (455 ) (19 ) 129 (93 ) 2,691 (30 ) Structured securities(4) 6,715 (24 ) 1,989 (344 ) 0 (1,317 ) 6 1,133 (6,494 ) 1,664 0 Assets supporting experience-rated contractholder liabilities: Foreign government 223 1 0 0 0 (3 ) 0 0 0 221 (2 ) Corporate securities(3) 462 (9 ) 65 0 0 (69 ) 0 40 (1 ) 488 (9 ) Structured securities(4) 722 (2 ) 19 0 0 (142 ) 0 33 (523 ) 107 (1 ) Equity securities 4 1 0 (1 ) 0 0 0 0 0 4 1 All other activity 7 0 43 0 0 (45 ) 0 0 0 5 0 Other assets: Fixed maturities, trading 156 3 49 (42 ) 0 (3 ) 3 12 (5 ) 173 4 Equity securities 795 2 42 (32 ) 0 (39 ) 15 3 (3 ) 783 (1 ) Other invested assets 137 4 1 (12 ) 0 0 (8 ) 0 0 122 2 Short-term investments 8 (1 ) 22 0 0 (26 ) (2 ) 0 0 1 (1 ) Cash equivalents 0 0 9 0 0 (7 ) 0 0 0 2 0 Other assets 13 (13 ) 0 0 0 0 0 0 0 0 (13 ) Separate account assets(5) 2,122 (11 ) 490 (22 ) 0 (261 ) 0 224 (726 ) 1,816 (5 ) Liabilities: Future policy benefits (8,720 ) 2,709 0 0 (574 ) 0 0 0 0 (6,585 ) 2,529 Policyholders’ account balances(6) (47 ) (3 ) 0 0 0 8 0 0 0 (42 ) (3 ) Other liabilities (3 ) (34 ) 18 0 0 0 1 0 0 (18 ) (33 ) Notes issued by consolidated VIEs (1,196 ) 0 0 0 0 0 587 0 0 (609 ) 0 Six Months Ended June 30, 2018 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (losses) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ (39 ) $ 8 $ (30 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (13 ) 0 0 4 0 (11 ) 0 Other assets: Fixed maturities, trading 1 2 0 0 0 0 4 0 Equity securities 0 2 0 0 0 0 (1 ) 0 Other invested assets 4 0 0 0 0 2 0 0 Short-term investments (1 ) 0 0 0 0 (1 ) 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets (13 ) 0 0 0 0 (13 ) 0 0 Separate account assets(5) 0 0 (11 ) 0 0 0 0 (5 ) Liabilities: Future policy benefits 2,709 0 0 0 0 2,529 0 0 Policyholders’ account balances (3 ) 0 0 0 0 (3 ) 0 0 Other liabilities (34 ) 0 0 0 0 (33 ) 0 0 Notes issued by consolidated VIEs 0 0 0 0 0 0 0 0 __________ (1) “Other,” for the periods ended June 30, 2019 and June 30, 2018 , primarily represent deconsolidation of VIE, reclassifications of certain assets between reporting categories and foreign currency translation. (2) 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. (3) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (4) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (5) 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. (6) Issuances and settlements for Policyholders’ account balances are presented net in the rollforward. Prior year amounts are restated to conform to current year presentation. |
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, 2019 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative Assets: Interest Rate $ 3 $ 10,548 $ 1 $ $ 10,552 Currency 0 346 0 346 Credit 0 103 0 103 Currency/Interest Rate 0 2,497 0 2,497 Equity 1 607 0 608 Other 0 0 0 0 Netting(1) (13,063 ) (13,063 ) Total derivative assets $ 4 $ 14,101 $ 1 $ (13,063 ) $ 1,043 Derivative Liabilities: Interest Rate $ 8 $ 4,938 $ 0 $ $ 4,946 Currency 0 122 0 122 Credit 0 2 0 2 Currency/Interest Rate 0 756 0 756 Equity 5 1,094 0 1,099 Other 0 0 0 0 Netting(1) (6,368 ) (6,368 ) Total derivative liabilities $ 13 $ 6,912 $ 0 $ (6,368 ) $ 557 As of December 31, 2018 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative Assets: Interest Rate $ 23 $ 6,341 $ 2 $ $ 6,366 Currency 0 273 0 273 Credit 0 33 0 33 Currency/Interest Rate 0 2,292 0 2,292 Equity 0 1,515 0 1,515 Other 0 0 0 0 Netting(1) (9,331 ) (9,331 ) Total derivative assets $ 23 $ 10,454 $ 2 $ (9,331 ) $ 1,148 Derivative Liabilities: Interest Rate $ 2 $ 3,818 $ 0 $ $ 3,820 Currency 0 140 0 140 Credit 0 23 0 23 Currency/Interest Rate 0 778 0 778 Equity 7 640 0 647 Other 0 0 0 0 Netting(1) (5,281 ) (5,281 ) Total derivative liabilities $ 9 $ 5,399 $ 0 $ (5,281 ) $ 127 __________ (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 | Changes in Level 3 derivative assets and liabilities —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 June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net Derivative - Interest Rate 1 0 0 0 0 0 0 0 0 1 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(3) Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net Derivative - Interest Rate 2 (1 ) 0 0 0 0 0 0 0 1 (1 ) Three Months Ended June 30, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 6 $ 0 $ 0 $ 0 $ 0 $ 0 $ (4 ) $ 0 $ 0 $ 2 $ 0 Net Derivative - Interest Rate 6 (4 ) 0 0 0 0 0 0 0 2 4 Six Months Ended June 30, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other(3) Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 10 $ 1 $ 0 $ 0 $ 0 $ 0 $ (9 ) $ 0 $ 0 $ 2 $ 0 Net Derivative - Interest Rate (3 ) 5 0 0 0 0 0 0 0 2 5 ______ (1) Total realized and unrealized gains (losses) as well as unrealized gains (losses) for assets still held at the end of the period are recorded in “Realized investment gains (losses), net.” (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. (3) Represents conversion of warrants to equity shares. |
Fair Value Measurements, Nonrecurring | The following tables represent 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 2019 2018 2019 2018 (in millions) Realized investment gains (losses) net: Commercial mortgage loans(1) $ 0 $ (13 ) $ 0 $ (13 ) Mortgage servicing rights(2) $ (1 ) $ 2 $ (2 ) $ 4 June 30, 2019 December 31, 2018 (in millions) Carrying value after measurement as of period end: Commercial mortgage loans(1) $ 14 $ 47 Mortgage servicing rights(2) $ 66 $ 73 __________ (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 including a liquidity and risk premium. This estimate includes available relevant data from any active market sales of mortgage servicing rights. |
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 2019 2018 2019 2018 (in millions) Liabilities: Notes issued by consolidated VIEs: Changes in fair value $ (1 ) $ (3 ) $ 1 $ 0 Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) Commercial mortgage and other loans: Interest income $ 5 $ 4 $ 11 $ 6 Notes issued by consolidated VIEs: Interest expense $ 13 $ 9 $ 22 $ 18 June 30, 2019 December 31, 2018 (in millions) Commercial mortgage and other loans(1): Fair value as of period end $ 645 $ 763 Aggregate contractual principal as of period end $ 639 $ 754 Other assets: Fair value as of period end $ 10 $ 10 Notes issued by consolidated VIEs: Fair value as of period end $ 816 $ 595 Aggregate contractual principal as of period end $ 857 $ 632 __________ (1) As of June 30, 2019 , for loans for which the fair value option has been elected, there were no loans in non-accrual status and none of the loans were more than 90 days past due and still accruing. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. June 30, 2019 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in millions) Assets: Fixed maturities, held-to-maturity(2) $ 0 $ 2,310 $ 100 $ 2,410 $ 2,009 Assets supporting experience-rated contractholders liabilities 5 0 0 5 5 Commercial mortgage and other loans 0 111 62,873 62,984 60,583 Policy loans 0 0 12,030 12,030 12,030 Other invested assets 0 36 0 36 36 Short-term investments 1,065 181 0 1,246 1,246 Cash and cash equivalents 6,222 1,282 0 7,504 7,504 Accrued investment income 0 3,355 0 3,355 3,355 Other assets 149 2,707 546 3,402 3,400 Total assets $ 7,441 $ 9,982 $ 75,549 $ 92,972 $ 90,168 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 31,849 $ 69,964 $ 101,813 $ 100,934 Securities sold under agreements to repurchase 0 9,741 0 9,741 9,741 Cash collateral for loaned securities 0 4,235 0 4,235 4,235 Short-term debt 0 1,870 926 2,796 2,659 Long-term debt(3) 1,909 16,780 1,334 20,023 17,841 Notes issued by consolidated VIEs 0 0 430 430 430 Other liabilities 0 6,431 545 6,976 6,976 Separate account liabilities—investment contracts 0 74,167 24,792 98,959 98,959 Total liabilities $ 1,909 $ 145,073 $ 97,991 $ 244,973 $ 241,775 December 31, 2018 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in millions) Assets: Fixed maturities, held-to-maturity(2) $ 0 $ 1,468 $ 904 $ 2,372 $ 2,013 Assets supporting experience-rated contractholders liabilities 0 0 0 0 0 Commercial mortgage and other loans 0 109 59,106 59,215 59,067 Policy loans 0 0 12,016 12,016 12,016 Other invested assets 0 40 0 40 40 Short-term investments 951 25 0 976 976 Cash and cash equivalents 4,871 1,004 0 5,875 5,875 Accrued investment income 0 3,318 0 3,318 3,318 Other assets 141 2,189 483 2,813 2,813 Total assets $ 5,963 $ 8,153 $ 72,509 $ 86,625 $ 86,118 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 31,422 $ 67,006 $ 98,428 $ 99,829 Securities sold under agreements to repurchase 0 9,950 0 9,950 9,950 Cash collateral for loaned securities 0 3,929 0 3,929 3,929 Short-term debt 0 1,854 658 2,512 2,451 Long-term debt(3) 1,734 15,057 1,181 17,972 17,378 Notes issued by consolidated VIEs 0 0 360 360 360 Other liabilities 0 6,338 510 6,848 6,848 Separate account liabilities—investment contracts 0 66,914 26,022 92,936 92,936 Total liabilities $ 1,734 $ 135,464 $ 95,737 $ 232,935 $ 233,681 __________ (1) 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. (2) Excludes notes with fair value of $5,190 million (carrying amount of $4,879 million ) and $4,879 million (carrying amount of $4,879 million ) as of June 30, 2019 and December 31, 2018 , respectively, which have been offset with the associated payables under a netting agreement. (3) Includes notes with fair value of $9,546 million (carrying amount of $9,235 million ) and $9,095 million (carrying amount of $9,095 million ) as of June 30, 2019 and December 31, 2018 , respectively, which have been offset with the associated receivables under a netting agreement. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information related to leases table | Supplemental balance sheet information related to leases where the Company is the lessee is included below. Right-of-use assets and lease liabilities are included within “Other assets” and “Other liabilities” respectively. June 30, 2019 (in millions) Operating Leases: Right-of-use assets $ 561 Lease liabilities $ 589 Weighted average remaining lease term 6 years Weighted average discount rate 2.62 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities are as follows: June 30, 2019 (in millions) 2019 (July — December) $ 85 2020 141 2021 122 2022 88 2023 65 Thereafter 144 Total lease payments 645 Less imputed interest (56 ) Total $ 589 |
Closed Block (Tables)
Closed Block (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 $ 47,940 $ 48,282 Policyholders’ dividends payable 810 812 Policyholders’ dividend obligation 5,560 3,150 Policyholders’ account balances 5,011 5,061 Other Closed Block liabilities 4,282 3,955 Total Closed Block liabilities 63,603 61,260 Closed Block assets Fixed maturities, available-for-sale, at fair value 40,602 38,538 Fixed maturities, trading, at fair value 236 195 Equity securities, at fair value 2,055 1,784 Commercial mortgage and other loans 8,451 8,782 Policy loans 4,328 4,410 Other invested assets 3,291 3,316 Short-term investments 659 477 Total investments 59,622 57,502 Cash and cash equivalents 633 467 Accrued investment income 460 466 Other Closed Block assets 199 105 Total Closed Block assets 60,914 58,540 Excess of reported Closed Block liabilities over Closed Block assets 2,689 2,720 Portion of above representing accumulated other comprehensive income (loss): Net unrealized investment gains (losses) 3,156 857 Allocated to policyholder dividend obligation (3,201 ) (899 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,644 $ 2,678 |
Schedule of Closed Block Dividend Obligation | Information regarding the policyholder dividend obligation is as follows: Six Months Ended (in millions) Balance, December 31, 2018 $ 3,150 Impact from earnings allocable to policyholder dividend obligation 107 Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 2,303 Balance, June 30, 2019 $ 5,560 |
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 2019 2018 2019 2018 (in millions) Revenues Premiums $ 581 $ 602 $ 1,108 $ 1,152 Net investment income 576 593 1,141 1,190 Realized investment gains (losses), net 49 110 105 108 Other income (loss) 97 85 325 107 Total Closed Block revenues 1,303 1,390 2,679 2,557 Benefits and Expenses Policyholders’ benefits 780 778 1,489 1,506 Interest credited to policyholders’ account balances 32 33 64 66 Dividends to policyholders 415 508 968 816 General and administrative expenses 89 92 178 184 Total Closed Block benefits and expenses 1,316 1,411 2,699 2,572 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes (13 ) (21 ) (20 ) (15 ) Income tax expense (benefit) (29 ) (36 ) (53 ) (45 ) Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 16 $ 15 $ 33 $ 30 |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 ($ in millions) Commercial paper: Prudential Financial $ 25 $ 15 Prudential Funding, LLC 820 727 Subtotal commercial paper 845 742 Mortgage Debt(1) 52 53 Current portion of long-term debt(2) 1,756 1,656 Other(3) 6 0 Total short-term debt(4) $ 2,659 $ 2,451 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 220 $ 301 Daily average commercial paper outstanding $ 1,676 $ 1,554 Weighted average maturity of outstanding commercial paper, in days 11 12 Weighted average interest rate on outstanding commercial paper 2.42 % 1.90 % __________ (1) Includes $52 million and $53 million of mortgage debt denominated in foreign currency at June 30, 2019 and December 31, 2018, respectively. (2) Includes $1,003 million and $1,100 million of senior notes at June 30, 2019 and December 31, 2018, respectively, and $253 million and $57 million of mortgage debt that has recourse only to real estate investment property at June 30, 2019 and December 31, 2018 , respectively. (3) Includes $6 million drawn on a revolving line of credit held by a subsidiary at June 30, 2019. (4) Includes Prudential Financial debt of $1,027 million and $1,115 million at June 30, 2019 and December 31, 2018 , respectively. |
Schedule of Long-term Debt | The table below presents the Company’s long-term debt as of the dates indicated: June 30, 2019 December 31, 2018 (in millions) Fixed-rate obligations: Surplus notes $ 342 $ 341 Surplus notes subject to set-off arrangements(1) 7,035 6,895 Senior notes 9,106 8,774 Mortgage debt(2) 160 237 Floating-rate obligations: Line of credit 299 0 Surplus notes subject to set-off arrangements(1) 2,200 2,200 Senior notes 29 29 Mortgage debt(3) 333 429 Junior subordinated notes(4) 7,572 7,568 Subtotal 27,076 26,473 Less: assets under set-off arrangements(1) 9,235 9,095 Total long-term debt(5) $ 17,841 $ 17,378 __________ (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 $99 million and $101 million of debt denominated in foreign currency at June 30, 2019 and December 31, 2018 , respectively. (3) Includes $166 million and $206 million of debt denominated in foreign currency at June 30, 2019 and December 31, 2018 , respectively. (4) Includes Prudential Financial debt of $7,514 million at June 30, 2019. Also includes subsidiary debt of $58 million denominated in foreign currency at June 30, 2019. (5) Includes Prudential Financial debt of $16,475 million and $16,141 million at June 30, 2019 and December 31, 2018 , respectively. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 2019 2018 2019 2018 (in millions) Components of net periodic (benefit) cost: Service cost $ 72 $ 79 $ 5 $ 6 Interest cost 123 112 20 17 Expected return on plan assets (204 ) (205 ) (23 ) (27 ) Amortization of prior service cost (1 ) (1 ) 1 0 Amortization of actuarial (gain) loss, net 54 54 6 5 Settlements 48 0 0 0 Special termination benefits 1 1 0 0 Net periodic (benefit) cost $ 93 $ 40 $ 9 $ 1 Six Months Ended June 30, Pension Benefits Other Postretirement Benefits 2019 2018 2019 2018 (in millions) Components of net periodic (benefit) cost: Service cost $ 145 $ 158 $ 11 $ 12 Interest cost 246 224 39 35 Expected return on plan assets (408 ) (409 ) (47 ) (54 ) Amortization of prior service cost (2 ) (2 ) 2 0 Amortization of actuarial (gain) loss, net 108 107 12 9 Settlements 48 0 0 0 Special termination benefits 1 1 0 0 Net periodic (benefit) cost $ 138 $ 79 $ 17 $ 2 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 660.1 249.4 410.7 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 10.4 (10.4 ) Stock-based compensation programs(1) 0.0 (2.7 ) 2.7 Balance, June 30, 2019 660.1 257.1 403.0 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. |
Dividends Declared | Dividends declared per share of Common Stock are as follows for the periods indicated: Three Months Ended Six Months Ended 2019 2018 2019 2018 Dividends declared per share of Common Stock $ 1.00 $ 0.90 $ 2.00 $ 1.80 |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2019 and 2018 , 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, 2018 $ (564 ) $ 14,745 $ (3,275 ) $ 10,906 Change in OCI before reclassifications 98 17,296 (39 ) 17,355 Amounts reclassified from AOCI 5 (501 ) 120 (376 ) Income tax benefit (expense) 8 (3,899 ) (19 ) (3,910 ) Cumulative effect of adoption of ASU 2017-12 0 7 0 7 Balance, June 30, 2019 $ (453 ) $ 27,648 $ (3,213 ) $ 23,982 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 __________ (1) Includes cash flow hedges of $1,017 million and $811 million as of June 30, 2019 and December 31, 2018 , respectively, and $99 million and $(39) million as of June 30, 2018 and December 31, 2017 , 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 2019 2018 2019 2018 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustments $ 0 $ 0 $ (5 ) $ 0 Realized investment gains (losses), net Foreign currency translation adjustments 0 0 0 0 Other income (loss) Total foreign currency translation adjustment 0 0 (5 ) 0 Net unrealized investment gains (losses): Cash flow hedges—Interest rate 0 2 (1 ) 2 (3) Cash flow hedges—Currency 1 3 2 0 (3) Cash flow hedges—Currency/Interest rate 156 294 171 245 (3) Net unrealized investment gains (losses) on available-for-sale securities 69 165 329 243 Total net unrealized investment gains (losses) 226 464 501 490 (4) Amortization of defined benefit pension items: Prior service cost 0 1 0 2 (5) Actuarial gain (loss) (60 ) (59 ) (120 ) (116 ) (5) Total amortization of defined benefit pension items (60 ) (58 ) (120 ) (114 ) Total reclassifications for the period $ 166 $ 406 $ 376 $ 376 __________ (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 11 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, 2018 $ 189 $ (1 ) $ 4 $ (23 ) $ (61 ) $ 108 Net investment gains (losses) on investments arising during the period 118 (27 ) 91 Reclassification adjustment for (gains) losses included in net income (29 ) 7 (22 ) Reclassification adjustment for OTTI losses excluded from net income(1) 0 0 0 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 (4 ) 1 (3 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (4 ) 1 (3 ) Balance, June 30, 2019 $ 278 $ (1 ) $ 0 $ (27 ) $ (79 ) $ 171 __________ (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, 2018 $ 22,531 $ (738 ) $ (791 ) $ (894 ) $ (5,471 ) $ 14,637 Net investment gains (losses) on investments arising during the period 21,474 (4,925 ) 16,549 Reclassification adjustment for (gains) losses included in net income (472 ) 108 (364 ) Reclassification adjustment for OTTI losses excluded from net income(2) 0 0 0 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables (1,180 ) 251 (929 ) Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables (798 ) 201 (597 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (2,312 ) 486 (1,826 ) Cumulative effect of adoption of ASU 2017-12 9 (2 ) 7 Balance, June 30, 2019 $ 43,542 $ (1,918 ) $ (1,589 ) $ (3,206 ) $ (9,352 ) $ 27,477 __________ (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, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the periods indicated, is as follows: Three Months Ended June 30, 2019 2018 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) $ 738 $ 200 Less: Income (loss) attributable to noncontrolling interests 30 3 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 8 4 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 700 405.3 $ 1.73 $ 193 419.5 $ 0.46 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 8 $ 4 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 8 4 Stock options 1.3 1.5 Deferred and long-term compensation programs 1.1 1.1 Exchangeable Surplus Notes 6 6.2 6 5.9 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 706 413.9 $ 1.71 $ 199 428.0 $ 0.46 Six Months Ended June 30, 2019 2018 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) $ 1,675 $ 1,564 Less: Income (loss) attributable to noncontrolling interests 35 4 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 18 18 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 1,622 407.3 $ 3.98 $ 1,542 420.8 $ 3.66 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 18 $ 18 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 18 18 Stock options 1.2 1.7 Deferred and long-term compensation programs 1.1 1.1 Exchangeable Surplus Notes 11 6.2 11 5.9 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 1,633 415.8 $ 3.93 $ 1,553 429.5 $ 3.62 |
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, 2019 2018 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 0.9 $ 105.95 0.8 $ 108.61 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 0.9 0.8 Six Months Ended June 30, 2019 2018 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 1.0 $ 104.57 0.5 $ 108.35 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 1.0 0.5 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The table below reconciles “Adjusted operating income before income taxes” to “Income (loss) before income taxes and equity in earnings of operating joint ventures”: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in millions) Adjusted operating income before income taxes by segment: PGIM $ 264 $ 254 $ 478 $ 486 Total PGIM division 264 254 478 486 Retirement 467 277 718 594 Group Insurance 81 82 134 137 Total U.S. Workplace Solutions division 548 359 852 731 Individual Annuities(1) 462 507 934 1,026 Individual Life (135 ) 43 (30 ) 79 Total U.S. Individual Solutions division 327 550 904 1,105 International Insurance 849 784 1,771 1,640 Total International Insurance division 849 784 1,771 1,640 Corporate and Other operations (335 ) (286 ) (747 ) (580 ) Total Corporate and Other (335 ) (286 ) (747 ) (580 ) Total segment adjusted operating income before income taxes 1,653 1,661 3,258 3,382 Reconciling items: Realized investment gains (losses), net, and related adjustments (548 ) 393 (1,211 ) 480 Charges related to realized investment gains (losses), net (82 ) (116 ) (57 ) (139 ) Market experience updates(2) (208 ) 0 (208 ) 0 Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net 287 (193 ) 741 (596 ) Change in experience-rated contractholder liabilities due to asset value changes (313 ) 85 (716 ) 503 Divested and Run-off businesses: Closed Block division (21 ) (31 ) (40 ) (40 ) Other Divested and Run-off businesses 112 (1,526 ) 286 (1,598 ) Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (4 ) (23 ) (37 ) (49 ) Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures $ 876 $ 250 $ 2,016 $ 1,943 __________ (1) 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. (2) Represents the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which are excluded from adjusted operating income beginning with the second quarter of 2019. The Company has historically recognized these impacts in adjusted operating income. |
Reconciliation of Certain Financial Information from Segments to Consolidated | The table below presents total revenues and assets for the Company’s reportable segments and its Corporate and Other operations for the periods and as of the dates indicated: Revenues Total Assets Three Months Ended Six Months Ended June 30, December 31, 2019 2018 2019 2018 (in millions) PGIM $ 926 $ 816 $ 1,796 $ 1,642 $ 47,681 $ 47,690 Total PGIM division 926 816 1,796 1,642 47,681 47,690 Retirement 3,586 2,988 6,225 5,077 187,907 175,525 Group Insurance 1,461 1,424 2,902 2,840 43,699 41,727 Total U.S. Workplace Solutions division 5,047 4,412 9,127 7,917 231,606 217,252 Individual Annuities 1,288 1,266 2,523 2,518 184,220 167,899 Individual Life 1,508 1,451 2,990 2,876 91,245 83,739 Total U.S. Individual Solutions division 2,796 2,717 5,513 5,394 275,465 251,638 International Insurance 5,501 5,288 11,653 11,328 238,608 222,633 Total International Insurance division 5,501 5,288 11,653 11,328 238,608 222,633 Corporate and Other operations (164 ) (190 ) (335 ) (363 ) 19,053 16,826 Total Corporate and Other (164 ) (190 ) (335 ) (363 ) 19,053 16,826 Total 14,106 13,043 27,754 25,918 812,413 756,039 Reconciling items: Realized investment gains (losses), net, and related adjustments (548 ) 393 (1,211 ) 480 Charges related to realized investment gains (losses), net (54 ) (92 ) (126 ) (163 ) Market experience updates(1) (7 ) 0 (7 ) 0 Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net 287 (193 ) 741 (596 ) Divested and Run-off businesses: Closed Block division 1,301 1,388 2,675 2,551 61,412 59,039 Other Divested and Run-off businesses 336 143 724 275 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (33 ) (27 ) (71 ) (53 ) Total per Unaudited Interim Consolidated Financial Statements $ 15,388 $ 14,655 $ 30,479 $ 28,412 $ 873,825 $ 815,078 __________ (1) Represents the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which are excluded from adjusted operating income beginning with the second quarter of 2019. The Company has historically recognized these impacts in adjusted operating income. |
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 2019 2018 2019 2018 (in millions) PGIM segment intersegment revenues $ 194 $ 185 $ 374 $ 369 |
Schedule of Asset Management and Service Fees | The table below presents asset management and service fees, predominantly related to investment management activities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions) Asset-based management fees $ 872 $ 856 $ 1,715 $ 1,717 Performance-based incentive fees 62 6 98 11 Other fees 149 148 286 308 Total asset management and service fees $ 1,083 $ 1,010 $ 2,099 $ 2,036 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,984 21.4 % $ 13,280 22.4 % Retail 8,411 13.9 8,639 14.6 Apartments/Multi-Family 16,752 27.7 16,538 28.0 Industrial 12,866 21.2 11,574 19.6 Hospitality 2,168 3.6 1,931 3.3 Other 3,913 6.5 3,846 6.5 Total commercial mortgage loans 57,094 94.3 55,808 94.4 Agricultural property loans 3,420 5.7 3,316 5.6 Total commercial mortgage and agricultural property loans by property type 60,514 100.0 % 59,124 100.0 % Allowance for credit losses (115 ) (123 ) Total net commercial mortgage and agricultural property loans by property type 60,399 59,001 Other loans: Uncollateralized loans 664 660 Residential property loans 143 157 Other collateralized loans 27 17 Total other loans 834 834 Allowance for credit losses (5 ) (5 ) Total net other loans 829 829 Total commercial mortgage and other loans(1) $ 61,228 $ 59,830 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2019 and December 31, 2018 , the net carrying value of these loans was $645 million and $763 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 $ 2,293 $ 3,299 Portion of commitment where prearrangement to sell to investor exists $ 538 $ 1,490 |
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 $ 7,133 $ 6,941 Expected to be funded from separate accounts $ 402 $ 147 |
Indemnifications | |
Commitments and Contingent Liabilities [Line Items] | |
Indemnification of Securities Lending and Securities Repurchase Transactions | Indemnification of Securities Lending and Securities Repurchase Transactions June 30, December 31, (in millions) Indemnification provided to certain clients for securities lending and securities repurchase transactions(1) $ 6,520 $ 5,399 Fair value of related collateral associated with above indemnifications(1) $ 6,650 $ 5,503 Accrued liability associated with guarantee $ 0 $ 0 __________ (1) As of June 30, 2019 , indemnification provided to certain clients and fair value of related collateral associated with such indemnification include $64 million and $63 million , respectively, related to securities repurchase transactions. |
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 $ 1,980 $ 1,828 First-loss exposure portion of above $ 584 $ 543 Accrued liability associated with guarantees $ 18 $ 17 |
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 $ 80,337 $ 79,215 Fair value of collateral supporting these assets $ 81,338 $ 77,897 Asset (liability) associated with guarantee, carried at fair value $ 1 $ 2 |
Other Guarantees | |
Commitments and Contingent Liabilities [Line Items] | |
Guarantees | Other Guarantees June 30, December 31, (in millions) Other guarantees where amount can be determined $ 55 $ 77 Accrued liability for other guarantees and indemnifications $ 0 $ 0 |
Business and Basis of Present_2
Business and Basis of Presentation (Narrative) (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019segmentdivision | Jun. 30, 2019segmentdivision | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of divisions | division | 5 | 5 |
Number of reportable segments | segment | 7 | 7 |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 561 | |
Operating Lease, Liability | $ 589 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 600 | |
Operating Lease, Liability | $ 600 |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | $ 340,564 | $ 331,745 | |
Fair Value | [1] | 383,390 | 353,656 |
Amortized Cost | [1] | 2,009 | 2,013 |
Fair Value | 2,410 | 2,372 | |
Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 340,564 | 331,745 | |
Gross Unrealized Gains | 44,434 | 28,302 | |
Gross Unrealized Losses | 1,608 | 6,391 | |
Fair Value | 383,390 | 353,656 | |
Amortized Cost | 2,009 | 2,013 | |
Gross Unrealized Gains | 401 | 359 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2,410 | 2,372 | |
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 | 29,571 | 28,242 | |
Gross Unrealized Gains | 4,973 | 2,994 | |
Gross Unrealized Losses | 89 | 642 | |
Fair Value | 34,455 | 30,594 | |
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 | 9,889 | 9,880 | |
Gross Unrealized Gains | 1,314 | 676 | |
Gross Unrealized Losses | 1 | 63 | |
Fair Value | 11,202 | 10,493 | |
Fixed maturities | Foreign government bonds | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 98,745 | 96,710 | |
Gross Unrealized Gains | 22,407 | 16,714 | |
Gross Unrealized Losses | 70 | 314 | |
Fair Value | 121,082 | 113,110 | |
Amortized Cost | 900 | 885 | |
Gross Unrealized Gains | 303 | 269 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,203 | 1,154 | |
Fixed maturities | U.S. public corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 85,282 | 82,257 | |
Gross Unrealized Gains | 8,653 | 3,912 | |
Gross Unrealized Losses | 417 | 2,754 | |
Fair Value | 93,518 | 83,415 | |
Fixed maturities | U.S. private corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 33,043 | 32,450 | |
Gross Unrealized Gains | 2,121 | 1,151 | |
Gross Unrealized Losses | 186 | 581 | |
Fair Value | 34,978 | 33,020 | |
Fixed maturities | Foreign public corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 27,450 | 27,671 | |
Gross Unrealized Gains | 2,980 | 2,061 | |
Gross Unrealized Losses | 119 | 531 | |
Fair Value | 30,311 | 29,201 | |
Amortized Cost | 671 | 668 | |
Gross Unrealized Gains | 70 | 64 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 741 | 732 | |
Fixed maturities | Foreign private corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 26,383 | 25,314 | |
Gross Unrealized Gains | 1,057 | 434 | |
Gross Unrealized Losses | 672 | 1,217 | |
Fair Value | 26,768 | 24,531 | |
Amortized Cost | 96 | 95 | |
Gross Unrealized Gains | 3 | 3 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 99 | 98 | |
Fixed maturities | Asset-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 12,602 | 12,888 | |
Gross Unrealized Gains | 174 | 162 | |
Gross Unrealized Losses | 41 | 77 | |
Fair Value | 12,735 | 12,973 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 14,556 | 13,396 | |
Gross Unrealized Gains | 607 | 99 | |
Gross Unrealized Losses | 9 | 180 | |
Fair Value | 15,154 | 13,315 | |
Fixed maturities | Residential mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 3,043 | 2,937 | |
Gross Unrealized Gains | 148 | 99 | |
Gross Unrealized Losses | 4 | 32 | |
Fair Value | 3,187 | 3,004 | |
Amortized Cost | 342 | 365 | |
Gross Unrealized Gains | 25 | 23 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 367 | 388 | |
Available-for-sale | OTTI | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (94) | (166) | |
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. public corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | 0 | (2) | |
Available-for-sale | OTTI | Fixed maturities | U.S. private corporate 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 | Foreign public corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (3) | (3) | |
Available-for-sale | OTTI | Fixed maturities | Foreign private corporate 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 | (90) | (160) | |
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) | (1) | |
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 | 372 | 356 | |
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 | 1 | |
Prudential Netting Agreement | U.S. private corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Fair Value | 4,356 | 4,216 | |
Prudential Netting Agreement | Fixed maturities | U.S. private corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 4,356 | 4,216 | |
Fair Value | 4,356 | 4,216 | |
Prudential Netting Agreement | Fixed maturities | Foreign private corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 4,879 | 4,879 | |
Fair Value | $ 5,190 | $ 4,879 | |
[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, 2019 | Dec. 31, 2018 |
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | $ 9,967 | $ 79,899 |
Less Than Twelve Months, Gross Unrealized Losses | 289 | 3,108 |
Twelve Months or More, Fair Value | 25,718 | 46,570 |
Twelve Months or More, Gross Unrealized Losses | 1,319 | 3,283 |
Total, Fair Value | 35,685 | 126,469 |
Total, Gross Unrealized Losses | 1,608 | 6,391 |
Fair Value not reflected in AOCI, held-to-maturity securities | 0 | 13 |
Gross Unrealized Losses not reflected in AOCI, held-to-maturity securities | 1 | |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 370 | 3,007 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 67 |
Twelve Months or More, Fair Value | 2,153 | 6,986 |
Twelve Months or More, Gross Unrealized Losses | 89 | 575 |
Total, Fair Value | 2,523 | 9,993 |
Total, Gross Unrealized Losses | 89 | 642 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 2 | 1,725 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 25 |
Twelve Months or More, Fair Value | 49 | 999 |
Twelve Months or More, Gross Unrealized Losses | 1 | 38 |
Total, Fair Value | 51 | 2,724 |
Total, Gross Unrealized Losses | 1 | 63 |
Foreign government bonds | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 393 | 2,369 |
Less Than Twelve Months, Gross Unrealized Losses | 56 | 136 |
Twelve Months or More, Fair Value | 503 | 3,515 |
Twelve Months or More, Gross Unrealized Losses | 14 | 178 |
Total, Fair Value | 896 | 5,884 |
Total, Gross Unrealized Losses | 70 | 314 |
U.S. public corporate securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 2,895 | 34,064 |
Less Than Twelve Months, Gross Unrealized Losses | 88 | 1,570 |
Twelve Months or More, Fair Value | 6,607 | 13,245 |
Twelve Months or More, Gross Unrealized Losses | 329 | 1,184 |
Total, Fair Value | 9,502 | 47,309 |
Total, Gross Unrealized Losses | 417 | 2,754 |
U.S. private corporate securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 1,124 | 8,923 |
Less Than Twelve Months, Gross Unrealized Losses | 67 | 225 |
Twelve Months or More, Fair Value | 2,816 | 7,985 |
Twelve Months or More, Gross Unrealized Losses | 119 | 356 |
Total, Fair Value | 3,940 | 16,908 |
Total, Gross Unrealized Losses | 186 | 581 |
Foreign public corporate securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 595 | 7,363 |
Less Than Twelve Months, Gross Unrealized Losses | 32 | 308 |
Twelve Months or More, Fair Value | 1,124 | 2,928 |
Twelve Months or More, Gross Unrealized Losses | 87 | 223 |
Total, Fair Value | 1,719 | 10,291 |
Total, Gross Unrealized Losses | 119 | 531 |
Foreign private corporate securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 1,663 | 12,218 |
Less Than Twelve Months, Gross Unrealized Losses | 28 | 692 |
Twelve Months or More, Fair Value | 7,243 | 4,468 |
Twelve Months or More, Gross Unrealized Losses | 644 | 525 |
Total, Fair Value | 8,906 | 16,686 |
Total, Gross Unrealized Losses | 672 | 1,217 |
Asset-backed securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 2,768 | 8,255 |
Less Than Twelve Months, Gross Unrealized Losses | 18 | 70 |
Twelve Months or More, Fair Value | 4,035 | 669 |
Twelve Months or More, Gross Unrealized Losses | 23 | 7 |
Total, Fair Value | 6,803 | 8,924 |
Total, Gross Unrealized Losses | 41 | 77 |
Commercial mortgage-backed securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 20 | 1,781 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 14 |
Twelve Months or More, Fair Value | 852 | 4,733 |
Twelve Months or More, Gross Unrealized Losses | 9 | 166 |
Total, Fair Value | 872 | 6,514 |
Total, Gross Unrealized Losses | 9 | 180 |
Residential mortgage-backed securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 137 | 194 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 1 |
Twelve Months or More, Fair Value | 336 | 1,042 |
Twelve Months or More, Gross Unrealized Losses | 4 | 31 |
Total, Fair Value | 473 | 1,236 |
Total, Gross Unrealized Losses | $ 4 | $ 32 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fixed maturities | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | $ 1,608 | $ 1,608 | $ 6,391 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 1,319 | 1,319 | 3,283 | ||
Fixed maturities | NAIC High or Highest Quality Rating | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 1,096 | 1,096 | 5,391 | ||
Fixed maturities | NAIC Other Than High or Highest Quality Rating | |||||
Investment [Line Items] | |||||
Gross Unrealized Losses | 512 | 512 | 1,000 | ||
Corporate securities | |||||
Investment [Line Items] | |||||
Gross unrealized losses of twelve months or more concentrated in various sectors | 1,319 | 1,319 | $ 3,283 | ||
Other income | Equity securities | |||||
Investment [Line Items] | |||||
Unrealized gains (losses) for assets still held: | 51 | $ (80) | 581 | $ (271) | |
Other income | Assets supporting experience-rated contractholder liabilities | |||||
Investment [Line Items] | |||||
Unrealized gains (losses) for assets still held: | $ 300 | $ (198) | $ 769 | $ (596) | |
California | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 27.00% | 27.00% | |||
Texas | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 10.00% | 10.00% | |||
New York | |||||
Investment [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 7.00% | 7.00% | |||
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, 2019 | Dec. 31, 2018 | |
Available-for-Sale, Amortized Cost | |||
Due in one year or less | $ 16,207 | ||
Due after one year through five years | 50,780 | ||
Due after five years through ten years | 66,712 | ||
Due after ten years | 176,664 | ||
Amortized Cost | 340,564 | $ 331,745 | |
Available-for-Sale, Fair Value | |||
Due in one year or less | 16,756 | ||
Due after one year through five years | 54,131 | ||
Due after five years through ten years | 72,924 | ||
Due after ten years | 208,503 | ||
Fair Value | [1] | 383,390 | 353,656 |
Held-to-Maturity, Amortized Cost | |||
Due in one year or less | 60 | ||
Due after one year through five years | 114 | ||
Due after five years through ten years | 596 | ||
Due after ten years | 897 | ||
Amortized Cost | [1] | 2,009 | 2,013 |
Held-to-Maturity, Fair Value | |||
Due in one year or less | 61 | ||
Due after one year through five years | 117 | ||
Due after five years through ten years | 666 | ||
Due after ten years | 1,199 | ||
Fair Value | 2,410 | 2,372 | |
Asset-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Debt Maturities, without single maturity date | 12,602 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 12,735 | ||
Held-to-Maturity, Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Held-to-Maturity, Fair Value | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Commercial mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Debt Maturities, without single maturity date | 14,556 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 15,154 | ||
Held-to-Maturity, Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Held-to-Maturity, Fair Value | |||
Debt Maturities, without Single Maturity Date | 0 | ||
Residential mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Debt Maturities, without single maturity date | 3,043 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 3,187 | ||
Held-to-Maturity, Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 342 | ||
Held-to-Maturity, Fair Value | |||
Debt Maturities, without Single Maturity Date | 367 | ||
Prudential Netting Agreement | U.S. private corporate securities | |||
Available-for-Sale, Fair Value | |||
Fair Value | 4,356 | 4,216 | |
Fixed maturities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 340,564 | 331,745 | |
Available-for-Sale, Fair Value | |||
Fair Value | 383,390 | 353,656 | |
Held-to-Maturity, Amortized Cost | |||
Amortized Cost | 2,009 | 2,013 | |
Held-to-Maturity, Fair Value | |||
Fair Value | 2,410 | 2,372 | |
Fixed maturities | U.S. private corporate securities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 33,043 | 32,450 | |
Available-for-Sale, Fair Value | |||
Fair Value | 34,978 | 33,020 | |
Fixed maturities | Foreign private corporate securities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 26,383 | 25,314 | |
Available-for-Sale, Fair Value | |||
Fair Value | 26,768 | 24,531 | |
Held-to-Maturity, Amortized Cost | |||
Amortized Cost | 96 | 95 | |
Held-to-Maturity, Fair Value | |||
Fair Value | 99 | 98 | |
Fixed maturities | Asset-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 12,602 | 12,888 | |
Available-for-Sale, Fair Value | |||
Fair Value | 12,735 | 12,973 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 14,556 | 13,396 | |
Available-for-Sale, Fair Value | |||
Fair Value | 15,154 | 13,315 | |
Fixed maturities | Residential mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 3,043 | 2,937 | |
Available-for-Sale, Fair Value | |||
Fair Value | 3,187 | 3,004 | |
Held-to-Maturity, Amortized Cost | |||
Amortized Cost | 342 | 365 | |
Held-to-Maturity, Fair Value | |||
Fair Value | 367 | 388 | |
Fixed maturities | Prudential Netting Agreement | U.S. private corporate securities | |||
Available-for-Sale, Amortized Cost | |||
Amortized Cost | 4,356 | 4,216 | |
Available-for-Sale, Fair Value | |||
Fair Value | 4,356 | 4,216 | |
Fixed maturities | Prudential Netting Agreement | Foreign private corporate securities | |||
Held-to-Maturity, Amortized Cost | |||
Amortized Cost | 4,879 | 4,879 | |
Held-to-Maturity, Fair Value | |||
Fair Value | $ 5,190 | $ 4,879 | |
[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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Securities [Line Items] | ||||
Proceeds from maturities/prepayments - AFS | $ 25,681 | $ 30,599 | ||
Proceeds from maturities/prepayments - HTM | 35 | 56 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities [Line Items] | ||||
Proceeds from sales | $ 6,659 | $ 9,489 | 16,821 | 19,074 |
Proceeds from maturities/prepayments - AFS | 4,704 | 6,553 | 9,192 | 11,779 |
Gross investment gains from sales and maturities | 228 | 410 | 711 | 784 |
Gross investment losses from sales and maturities | (95) | (187) | (283) | (444) |
OTTI recognized in earnings | (64) | (58) | (99) | (97) |
Fixed maturities | Held-to-maturity | ||||
Debt Securities [Line Items] | ||||
Proceeds from maturities/prepayments - HTM | $ 23 | $ 23 | 37 | 59 |
Fixed maturities | Available-for-sale | ||||
Debt Securities [Line Items] | ||||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | 332 | 254 | ||
Fixed maturities | Held-to-maturity | ||||
Debt Securities [Line Items] | ||||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ 2 | $ 3 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance, beginning of period | $ 149 | $ 140 | $ 203 | $ 319 |
New credit loss impairments | 4 | 0 | 20 | 0 |
Additional credit loss impairments on securities previously impaired | 8 | 0 | 8 | 0 |
Increases due to the passage of time on previously recorded credit losses | 2 | 4 | 3 | 6 |
Reductions for securities which matured, paid down, prepaid or were sold during the period | (20) | (42) | (27) | (155) |
Reductions for securities impaired to fair value during the period | 0 | 0 | 0 | (4) |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (1) | (2) | (2) | (3) |
Balance, ending of period | $ 142 | $ 163 | $ 142 | $ 163 |
Investments (Assets Supporting
Investments (Assets Supporting Experience-Rated Contractholder Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | $ 21,119 | $ 21,299 | |
Assets supporting experience-rated contractholder liabilities, at fair value | [1] | 21,843 | 21,254 |
Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 19,296 | 19,706 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 19,839 | 19,579 | |
Equity securities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,452 | 1,378 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,633 | 1,460 | |
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 | 371 | 215 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 371 | 215 | |
Corporate securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 13,257 | 13,258 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 13,630 | 13,119 | |
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 | 2,239 | 2,346 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 2,297 | 2,324 | |
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 | 1,002 | 828 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,014 | 811 | |
Asset-backed securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,595 | 1,649 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,626 | 1,665 | |
Foreign government bonds | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 852 | 1,087 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 870 | 1,083 | |
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 | 351 | 538 | |
Assets supporting experience-rated contractholder liabilities, at fair value | $ 402 | $ 577 | |
Public Securities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost percentage | 78.00% | 78.00% | |
Collateralized loan obligations | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at fair value | $ 1,025 | $ 1,028 | |
NAIC High or Highest Quality Rating | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost percentage | 93.00% | 93.00% | |
[1] | 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, 2019 | Dec. 31, 2018 |
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 | $ 75,135 | $ 73,529 |
Concentrations of credit risk at fair value | 92,316 | 86,307 |
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 | 10,379 | 10,354 |
Concentrations of credit risk at fair value | 13,114 | 12,601 |
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 | 664 | 691 |
Concentrations of credit risk at fair value | 682 | 697 |
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 | 16 | 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 | 73,570 | 71,952 |
Concentrations of credit risk at fair value | 90,438 | 84,461 |
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 | 10,364 | 10,339 |
Concentrations of credit risk at fair value | 13,098 | 12,586 |
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 | 878 | 864 |
Concentrations of credit risk at fair value | 1,173 | 1,127 |
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 | 22 |
Concentrations of credit risk at fair value | 23 | 22 |
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, 2019 | Dec. 31, 2018 | |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 60,514 | $ 59,124 |
Other loans | 834 | 834 |
Total commercial mortgage and other loans | $ 61,228 | $ 59,830 |
% of Total | 100.00% | 100.00% |
Net carrying value of commercial loans held for sale | $ 645 | $ 763 |
Commercial Mortgage Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 57,094 | $ 55,808 |
% of Total | 94.30% | 94.40% |
Commercial mortgage and agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Allowance for credit losses, Commercial mortgage and agricultural property loans | $ (115) | $ (123) |
Total net loans | 60,399 | 59,001 |
Uncollateralized loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 664 | 660 |
Residential property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 143 | 157 |
Other Collateralized Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 27 | 17 |
Other loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Total net loans | 829 | 829 |
Allowance for credit losses, Other loans | (5) | (5) |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 12,984 | $ 13,280 |
% of Total | 21.40% | 22.40% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 8,411 | $ 8,639 |
% of Total | 13.90% | 14.60% |
Apartments/Multi-Family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 16,752 | $ 16,538 |
% of Total | 27.70% | 28.00% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 12,866 | $ 11,574 |
% of Total | 21.20% | 19.60% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 2,168 | $ 1,931 |
% of Total | 3.60% | 3.30% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 3,913 | $ 3,846 |
% of Total | 6.50% | 6.50% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 3,420 | $ 3,316 |
% of Total | 5.70% | 5.60% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 128 | $ 106 |
Addition to (release of) allowance for credit losses | (8) | 22 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 120 | 128 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 120 | 97 |
Addition to (release of) allowance for credit losses | (8) | 23 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 112 | 120 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 3 | 3 |
Addition to (release of) allowance for credit losses | 0 | 0 |
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 | 0 | 1 |
Addition to (release of) allowance for credit losses | 0 | (1) |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | 0 | 0 |
Other Collateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 0 | 0 |
Addition to (release of) allowance for credit 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 | 5 |
Addition to (release of) allowance for credit losses | 0 | 0 |
Charge-offs, net of recoveries | 0 | 0 |
Change in foreign exchange | 0 | 0 |
Total ending balance | $ 5 | $ 5 |
Investments (Allowance for Cr_2
Investments (Allowance for Credit Losses and Recorded Investment) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for credit losses: | |||
Individually evaluated for impairment | $ 8 | $ 19 | |
Collectively evaluated for impairment | 112 | 109 | |
Total ending balance | 120 | 128 | $ 106 |
Recorded Investment: | |||
Individually evaluated for impairment | 61 | 104 | |
Collectively evaluated for impairment | 61,287 | 59,854 | |
Total ending balance | 61,348 | 59,958 | |
Commercial Mortgage Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 8 | 19 | |
Collectively evaluated for impairment | 104 | 101 | |
Total ending balance | 112 | 120 | 97 |
Recorded Investment: | |||
Individually evaluated for impairment | 42 | 67 | |
Collectively evaluated for impairment | 57,052 | 55,741 | |
Total ending balance | 57,094 | 55,808 | |
Agricultural Property Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 3 | 3 | |
Total ending balance | 3 | 3 | 3 |
Recorded Investment: | |||
Individually evaluated for impairment | 19 | 35 | |
Collectively evaluated for impairment | 3,401 | 3,281 | |
Total ending balance | 3,420 | 3,316 | |
Residential Property Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | |
Total ending balance | 0 | 0 | 1 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 143 | 157 | |
Total ending balance | 143 | 157 | |
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 | 27 | 17 | |
Total ending balance | 27 | 17 | |
Uncollateralized Loans | |||
Allowance for credit losses: | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 5 | 5 | |
Total ending balance | 5 | 5 | $ 5 |
Recorded Investment: | |||
Individually evaluated for impairment | 0 | 2 | |
Collectively evaluated for impairment | 664 | 658 | |
Total ending balance | 664 | 660 | |
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, 2019 | Dec. 31, 2018 |
Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 57,094 | $ 55,808 |
Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,420 | 3,316 |
Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 60,514 | 59,124 |
0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 31,270 | 31,024 |
0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,337 | 3,252 |
0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 34,607 | 34,276 |
60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 17,966 | 17,159 |
60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 83 | 64 |
60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 18,049 | 17,223 |
70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 7,337 | 7,119 |
70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 7,337 | 7,119 |
80% or greater | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 521 | 506 |
80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 521 | 506 |
≥ 1.2X | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 54,853 | 53,519 |
≥ 1.2X | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,235 | 3,061 |
≥ 1.2X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 58,088 | 56,580 |
≥ 1.2X | 0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 30,536 | 30,325 |
≥ 1.2X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 3,152 | 2,997 |
≥ 1.2X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 33,688 | 33,322 |
≥ 1.2X | 60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 17,370 | 16,538 |
≥ 1.2X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 83 | 64 |
≥ 1.2X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 17,453 | 16,602 |
≥ 1.2X | 70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,638 | 6,324 |
≥ 1.2X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [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, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 6,638 | 6,324 |
≥ 1.2X | 80% or greater | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 309 | 332 |
≥ 1.2X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [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, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 309 | 332 |
1.0X to 1.2X | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,031 | 2,055 |
1.0X to 1.2X | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 168 | 198 |
1.0X to 1.2X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 2,199 | 2,253 |
1.0X to 1.2X | 0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 653 | 538 |
1.0X to 1.2X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 168 | 198 |
1.0X to 1.2X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 821 | 736 |
1.0X to 1.2X | 60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 596 | 621 |
1.0X to 1.2X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [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, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 596 | 621 |
1.0X to 1.2X | 70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 690 | 754 |
1.0X to 1.2X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [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, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 690 | 754 |
1.0X to 1.2X | 80% or greater | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 92 | 142 |
1.0X to 1.2X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [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, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 92 | 142 |
Less than 1.0X | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 210 | 234 |
Less than 1.0X | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 17 | 57 |
Less than 1.0X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 227 | 291 |
Less than 1.0X | 0%-59.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 81 | 161 |
Less than 1.0X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 17 | 57 |
Less than 1.0X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 98 | 218 |
Less than 1.0X | 60%-69.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [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, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 0 | 0 |
Less than 1.0X | 70%-79.99% | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 9 | 41 |
Less than 1.0X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [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, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 9 | 41 |
Less than 1.0X | 80% or greater | Commercial mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | 120 | 32 |
Less than 1.0X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [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, Credit Quality Indicator [Line Items] | ||
Recording investment gross of allowance for credit losses | $ 120 | $ 32 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 61,321 | $ 59,940 |
Total Past Due | 27 | 18 |
Total Loans | 61,348 | 59,958 |
Non-Accrual Status | 45 | 87 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7 | 1 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 20 | 17 |
Commercial mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 57,088 | 55,808 |
Total Past Due | 6 | 0 |
Total Loans | 57,094 | 55,808 |
Non-Accrual Status | 21 | 66 |
Commercial mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6 | 0 |
Commercial mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial mortgage loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Agricultural property loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 3,402 | 3,301 |
Total Past Due | 18 | 15 |
Total Loans | 3,420 | 3,316 |
Non-Accrual Status | 22 | 18 |
Agricultural property loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Agricultural property loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Agricultural property loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 18 | 15 |
Residential Property Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 140 | 154 |
Total Past Due | 3 | 3 |
Total Loans | 143 | 157 |
Non-Accrual Status | 2 | 3 |
Residential Property Loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | 1 |
Residential Property Loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Residential Property Loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2 | 2 |
Other Collateralized Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 27 | 17 |
Total Past Due | 0 | 0 |
Total Loans | 27 | 17 |
Non-Accrual Status | 0 | 0 |
Other Collateralized Loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other Collateralized Loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Other Collateralized Loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 664 | 660 |
Total Past Due | 0 | 0 |
Total Loans | 664 | 660 |
Non-Accrual Status | 0 | 0 |
Uncollateralized loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Other Invested Assets [Line Items] | |||
Other invested assets | [1] | $ 15,081 | $ 14,526 |
LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 10,182 | 9,841 | |
Real estate held through direct ownership | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 2,730 | 2,466 | |
Derivative instruments | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,053 | 1,155 | |
Other | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,116 | 1,064 | |
Mortgage Debt | Real estate-related | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 799 | 776 | |
Equity method | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 6,093 | 5,726 | |
Equity method | Private equity | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 3,305 | 3,182 | |
Equity method | Hedge funds | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,548 | 1,337 | |
Equity method | Real estate-related | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,240 | 1,207 | |
Fair Value | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 36 | 40 | |
Fair Value | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 4,089 | 4,115 | |
Fair Value | Private equity | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 1,637 | 1,684 | |
Fair Value | Hedge funds | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | 2,128 | 2,135 | |
Fair Value | Real estate-related | LPs/LLCs | |||
Other Invested Assets [Line Items] | |||
Other invested assets | $ 324 | $ 296 | |
[1] | 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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 4,644 | $ 4,323 | $ 9,112 | $ 8,523 |
Less: investment expenses | (254) | (227) | (506) | (429) |
Net investment income | 4,390 | 4,096 | 8,606 | 8,094 |
Assets supporting experience-rated contractholder liabilities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 182 | 181 | 367 | 372 |
Equity securities, at fair value | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 51 | 59 | 81 | 94 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 627 | 594 | 1,227 | 1,163 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 152 | 156 | 303 | 308 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 271 | 163 | 476 | 304 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 115 | 82 | 233 | 154 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 3,150 | 3,001 | 6,238 | 5,955 |
Held-to-maturity | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 58 | 57 | 115 | 112 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 38 | $ 30 | $ 72 | $ 61 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | $ (336) | $ 685 | $ (1,102) | $ 1,110 |
Fixed maturities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 69 | 165 | 329 | 243 |
Commercial mortgage and other loans | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 4 | 5 | 14 | 17 |
Investment real estate | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 0 | 60 | 0 | 62 |
LPs/LLCs | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 2 | 10 | (3) | 16 |
Derivatives | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | (411) | 445 | (1,443) | 773 |
Other | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | $ 0 | $ 0 | $ 1 | $ (1) |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 43,820 | $ 22,720 |
Fixed maturities | Available-for-sale | OTTI | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 278 | 190 |
Fixed maturities | Available-for-sale | All other | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 42,548 | 21,721 |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 1,017 | 811 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (23) | $ (2) |
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, 2019 | Dec. 31, 2018 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | $ 9,741 | $ 9,950 |
Total cash collateral for loaned securities | 4,235 | 3,929 |
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 |
Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 9,721 | 9,779 |
Total cash collateral for loaned securities | 4,235 | 3,929 |
Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 20 | 171 |
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 | 9,432 | 9,589 |
Total cash collateral for loaned securities | 80 | 105 |
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 | 9,412 | 9,418 |
Total cash collateral for loaned securities | 80 | 105 |
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 | 20 | 171 |
Total cash collateral for loaned securities | 0 | 0 |
Obligations of U.S. states and their political subdivisions | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 58 | 88 |
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 | 58 | 88 |
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 | 499 | 325 |
Foreign government bonds | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 499 | 325 |
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. public corporate securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 19 |
Total cash collateral for loaned securities | 2,615 | 2,563 |
U.S. public corporate securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 19 |
Total cash collateral for loaned securities | 2,615 | 2,563 |
U.S. public corporate 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 public corporate securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 773 | 693 |
Foreign public corporate securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 773 | 693 |
Foreign public corporate securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
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 | 309 | 342 |
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 | 309 | 342 |
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 | 0 |
Equity securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 210 | 155 |
Equity securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 210 | 155 |
Equity securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
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, 2019 | Dec. 31, 2018 | ||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | [1] | $ 1,246 | $ 955 |
Consolidated VIEs for Which the Company is the Investment Manager | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 4,619 | 4,140 | |
Total liabilities of consolidated VIEs | 1,536 | 1,250 | |
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 | 45 | 41 | |
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 | 763 | 730 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,866 | 1,526 | |
Consolidated VIEs for Which the Company is the Investment Manager | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 166 | 131 | |
Consolidated VIEs for Which the Company is the Investment Manager | Accrued investment income | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 5 | 5 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 451 | 463 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 290 | 295 | |
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 | $ 1,246 | $ 955 | |
VIEs Liabilities, maturities obligations (greater than) | 5 years | 5 years | |
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 | $ 100 | $ 73 | |
Consolidated VIEs for Which the Company is the Investment Manager | Trading | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,126 | 1,076 | |
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 | 97 | 95 | |
Other Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,978 | 1,923 | |
Total liabilities of consolidated VIEs | 14 | 17 | |
Other Consolidated VIEs | Assets supporting experience-rated contractholder liabilities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 5 | 8 | |
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 | 77 | |
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 | 748 | 721 | |
Other Consolidated VIEs | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 14 | 17 | |
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 | 291 | 282 | |
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 | 846 | 831 | |
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 | $ 2,323 | $ 2,013 | |
[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, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Other invested assets | [1] | $ 15,081,000,000 | $ 14,526,000,000 |
LPs/LLCs | |||
Variable Interest Entity [Line Items] | |||
Other invested assets | 10,182,000,000 | 9,841,000,000 | |
Other Unconsolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Liabilities held within unconsolidated VIEs | 0 | ||
Other Unconsolidated VIEs | Fixed maturities, available-for-sale, Fixed maturities, trading, Equity securities and Other invested assets [Member] | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss resulting from investment in unconsolidated VIEs | 929,000,000 | 836,000,000 | |
VIEs and Non-VIEs | LPs/LLCs | |||
Variable Interest Entity [Line Items] | |||
Other invested assets | $ 10,182,000,000 | $ 9,841,000,000 | |
[1] | 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, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total derivative assets | $ 1,043 | $ 1,148 |
Total derivative liabilities | 557 | 127 |
Anticipated pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) to earnings | $ 251 | |
Maximum Length of Time Hedged in Cash Flow Hedge | 5 years | |
Net investment hedges income (loss) before taxes | $ 534 | 532 |
Credit Derivatives [Line Items] | ||
Credit Derivative Protection Purchased Notional Amount | 82 | 145 |
Single Name Credit Default Swaps | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | $ 100 | 110 |
Credit Derivatives Written Max Length Of Maturities (less than) | 2 years | |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ 1 | 1 |
Single Name Credit Default Swaps | NAIC 1 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 36 | |
Single Name Credit Default Swaps | NAIC 2 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 60 | |
Single Name Credit Default Swaps | NAIC 3 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 4 | |
Credit Default Swaps Referencing Indices | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | $ 2,984 | 4,953 |
Credit Derivatives Written Max Length Of Maturities (less than) | 43 years | |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ 100 | 10 |
Credit Default Swaps Referencing Indices | NAIC 1 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 51 | |
Credit Default Swaps Referencing Indices | NAIC 3 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 1,908 | |
Credit Default Swaps Referencing Indices | NAIC 6 | ||
Credit Derivatives [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 1,025 | |
Credit Default Swap, Buying Protection | ||
Credit Derivatives [Line Items] | ||
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ 0 | $ (1) |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 14,107 | $ 10,480 |
Derivative Liability, Fair Value, Gross Liability | 6,925 | 5,408 |
Derivative, Notional Amount | 414,810 | 405,644 |
Net Embedded Derivative Liability | (13,672) | (8,959) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2,301 | 1,877 |
Derivative Liability, Fair Value, Gross Liability | 416 | 427 |
Derivative, Notional Amount | 25,471 | 25,931 |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 596 | 305 |
Derivative Liability, Fair Value, Gross Liability | 78 | 67 |
Derivative, Notional Amount | 3,315 | 3,885 |
Designated as Hedging Instrument | Interest Rate Forward | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1 | 26 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 53 | 600 |
Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 34 | 26 |
Derivative Liability, Fair Value, Gross Liability | 2 | 2 |
Derivative, Notional Amount | 858 | 722 |
Designated as Hedging Instrument | Currency Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,670 | 1,520 |
Derivative Liability, Fair Value, Gross Liability | 336 | 358 |
Derivative, Notional Amount | 21,245 | 20,724 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 11,806 | 8,603 |
Derivative Liability, Fair Value, Gross Liability | 6,509 | 4,981 |
Derivative, Notional Amount | 389,339 | 379,713 |
Not Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 9,604 | 5,792 |
Derivative Liability, Fair Value, Gross Liability | 4,641 | 3,435 |
Derivative, Notional Amount | 138,186 | 140,963 |
Not Designated as Hedging Instrument | Interest Rate Forward | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 21 | 72 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 2,353 | 5,049 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 312 | 246 |
Derivative Liability, Fair Value, Gross Liability | 120 | 138 |
Derivative, Notional Amount | 24,444 | 19,849 |
Not Designated as Hedging Instrument | Foreign Exchange Option | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 1 | 2 |
Not Designated as Hedging Instrument | Currency Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 827 | 773 |
Derivative Liability, Fair Value, Gross Liability | 420 | 421 |
Derivative, Notional Amount | 14,066 | 13,784 |
Not Designated as Hedging Instrument | Interest Rate Future | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3 | 23 |
Derivative Liability, Fair Value, Gross Liability | 7 | 2 |
Derivative, Notional Amount | 17,213 | 13,991 |
Not Designated as Hedging Instrument | Interest Rate Option | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 327 | 147 |
Derivative Liability, Fair Value, Gross Liability | 220 | 314 |
Derivative, Notional Amount | 20,798 | 24,002 |
Not Designated as Hedging Instrument | Credit Default Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 103 | 33 |
Derivative Liability, Fair Value, Gross Liability | 2 | 23 |
Derivative, Notional Amount | 3,165 | 5,207 |
Not Designated as Hedging Instrument | Equity Future | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 5 | 8 |
Derivative, Notional Amount | 1,329 | 1,141 |
Not Designated as Hedging Instrument | Equity Option | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 570 | 384 |
Derivative Liability, Fair Value, Gross Liability | 792 | 554 |
Derivative, Notional Amount | 68,244 | 58,693 |
Not Designated as Hedging Instrument | Total Return Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 38 | 1,131 |
Derivative Liability, Fair Value, Gross Liability | 302 | 86 |
Derivative, Notional Amount | 17,945 | 17,309 |
Not Designated as Hedging Instrument | Other Contract | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 1,258 | 508 |
Not Designated as Hedging Instrument | Synthetic Gics | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1 | 2 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | $ 80,337 | $ 79,215 |
Derivative Instruments (Hedged
Derivative Instruments (Hedged Item Offset By Derivatives Achieving Fair Value Hedge Accounting) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Fixed maturities, available-for-sale | [1] | $ 383,390 | $ 353,656 |
Commercial mortgage and other loans | [1] | 61,228 | 59,830 |
Policyholders’ account balances | (151,428) | (150,338) | |
Future policy benefits | (285,527) | $ (273,846) | |
Carrying Amount of the Hedged Assets (Liabilities) | |||
Derivative [Line Items] | |||
Fixed maturities, available-for-sale | 441 | ||
Commercial mortgage and other loans | 24 | ||
Policyholders’ account balances | (1,327) | ||
Future policy benefits | (642) | ||
Cumulative Adjustment Included in Carrying Amount | |||
Derivative [Line Items] | |||
Fixed maturities, available-for-sale | 62 | ||
Commercial mortgage and other loans | 2 | ||
Policyholders’ account balances | (85) | ||
Future policy benefits | $ (150) | ||
[1] | See Note 4 for details of balances associated with variable interest entities. |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 14,033 | $ 10,407 |
Gross Amounts Offset in the Statements of Financial Position | (13,063) | (9,331) |
Net Amounts Presented in the Statements of Financial Position | 970 | 1,076 |
Financial Instruments/Collateral | (633) | (614) |
Net Amount | 337 | 462 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 1,257 | 986 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 1,257 | 986 |
Financial Instruments/Collateral | (1,257) | (986) |
Net Amount | 0 | 0 |
Total assets | ||
Gross Amounts of Recognized Financial Instruments | 15,290 | 11,393 |
Gross Amounts Offset in the Statements of Financial Position | (13,063) | (9,331) |
Net Amounts Presented in the Statements of Financial Position | 2,227 | 2,062 |
Financial Instruments/Collateral | (1,890) | (1,600) |
Net Amount | 337 | 462 |
Derivative Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 6,913 | 5,387 |
Gross Amounts Offset in the Statements of Financial Position | (6,368) | (5,281) |
Net Amounts Presented in the Statements of Financial Position | 545 | 106 |
Financial Instruments/Collateral | (191) | (45) |
Net Amount | 354 | 61 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 9,741 | 9,950 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 9,741 | 9,950 |
Financial Instruments/Collateral | (9,741) | (9,950) |
Net Amount | 0 | 0 |
Total liabilities | ||
Gross Amounts of Recognized Financial Instruments | 16,654 | 15,337 |
Gross Amounts Offset in the Statements of Financial Position | (6,368) | (5,281) |
Net Amounts Presented in the Statements of Financial Position | 10,286 | 10,056 |
Financial Instruments/Collateral | (9,932) | (9,995) |
Net Amount | $ 354 | $ 61 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ (412) | $ 444 | $ (1,443) | $ 765 |
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 | (461) | 404 | (1,481) | 738 |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 73 | 56 | 146 | 115 |
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 | 35 | 210 | (6) | 119 |
Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (5) | 1 | 0 | 1 |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | (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 | 3 | 1 | 4 | 4 |
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 |
Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 7 | 12 | ||
Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | ||
AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 243 | 726 | 199 | 141 |
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 | (7) | 6 | (14) | 25 |
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) | (2) | (4) | (6) |
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 | 101 | (28) | 168 | (111) |
Fair value hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 80 | 131 | ||
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 |
Fair Value Hedged Item | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 8 | (6) | 11 | (27) |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 1 | 0 | (3) | (2) |
Fair Value Hedged Item | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 6 | 6 | 13 | 21 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 4 | 4 | 9 | 15 |
Fair Value Hedged Item | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 0 | 0 | 0 | 0 |
Fair Value Hedged Item | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 0 | 0 | 0 | 0 |
Fair Value Hedged Item | Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (98) | 29 | (164) | 115 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 3 | 1 | 4 | 4 |
Fair Value Hedged Item | Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (73) | (119) | ||
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 7 | 12 | ||
Fair Value Hedged Item | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 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 | 48 | 38 | 41 | 29 |
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 | 69 | 52 | 137 | 100 |
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 | 40 | 209 | (6) | 118 |
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 | (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 | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | 242 | 721 | 197 | 138 |
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 | 2 | 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 | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | 1 | 5 | 2 | 3 |
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 | 2,346 | (434) | 3,734 | (1,949) |
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 | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | (9) | 5 | (15) | 22 |
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) | (2) | (4) | (6) |
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 | 101 | (28) | 168 | (111) |
Interest Rate | Fair value hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 80 | 131 | ||
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 | Fair Value Hedged Item | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 9 | (5) | 11 | (24) |
Interest Rate | Fair Value Hedged Item | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 5 | 5 | 11 | 19 |
Interest Rate | Fair Value Hedged Item | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Interest Rate | Fair Value Hedged Item | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Interest Rate | Fair Value Hedged Item | Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (98) | 29 | (164) | 115 |
Interest Rate | Fair Value Hedged Item | Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (73) | (119) | ||
Interest Rate | Fair Value Hedged Item | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 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 | 2 | (1) | 2 |
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 | 0 | 0 | (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 | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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) | 22 | 6 |
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 | 122 | (133) | 84 | 279 |
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 | (5) | (1) | 0 | 0 |
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 | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | ||
Currency | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2 | 1 | 1 | 3 |
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 | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | Fair Value Hedged Item | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (1) | (1) | 0 | (3) |
Currency | Fair Value Hedged Item | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 1 | 1 | 2 | 2 |
Currency | Fair Value Hedged Item | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Currency | Fair Value Hedged Item | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Currency | Fair Value Hedged Item | Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Currency | Fair Value Hedged Item | Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | ||
Currency | Fair Value Hedged Item | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 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 | 1 | 3 | 2 | 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 | 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 | 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 | 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 | 0 | 0 |
Currency | Cash flow hedges | Policyholder Benefts | 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 | 14 | 18 | 5 | 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 | 0 | 2 | 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 | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | 1 | 5 | 2 | 3 |
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 | 20 | 573 | 204 | 25 |
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 | 0 | 2 | 0 | 1 |
Currency/Interest Rate | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | 47 | 33 | 40 | 27 |
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 | 69 | 52 | 137 | 100 |
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 | 40 | 209 | (6) | 118 |
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 | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | 229 | 704 | 170 | 123 |
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 | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | 36 | (1) | 104 | (5) |
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 | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | (617) | (258) | (2,427) | (248) |
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 | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | 0 | (1) | 0 | (1) |
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 | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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 | (2,368) | 658 | (3,180) | 2,637 |
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 | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 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) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jan. 01, 2019 | [1] | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (14) | $ 9 | ||
Cash flow hedges in AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Balance, beginning | $ 811 | |||
Amount recorded in AOCI | 369 | |||
Amount reclassified from AOCI to income | (172) | |||
Balance, ending | 1,017 | |||
Interest Rate | Cash flow hedges in AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount recorded in AOCI | 21 | |||
Amount reclassified from AOCI to income | 1 | |||
Currency | Cash flow hedges in AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount recorded in AOCI | 7 | |||
Amount reclassified from AOCI to income | (2) | |||
Currency/Interest Rate | Cash flow hedges in AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amount recorded in AOCI | 341 | |||
Amount reclassified from AOCI to income | $ (171) | |||
[1] | (1) Includes the impact from the adoption of ASU 2017-08 and 2017-12. See Note 2. |
Fair Value of Assets and Liab_3
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, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | [1] | $ 383,390 | $ 353,656 |
Assets supporting experience-rated contractholder liabilities | [1] | 21,843 | 21,254 |
Fixed maturities, trading | [1] | 3,755 | 3,243 |
Equity securities | [1] | 6,804 | 6,238 |
Commercial mortgage and other loans | [1] | 61,228 | 59,830 |
Other invested assets | [1] | 15,081 | 14,526 |
Other assets | [1] | 18,690 | 16,118 |
Separate account assets | 303,580 | 279,136 | |
TOTAL ASSETS | 873,825 | 815,078 | |
Future policy benefits | 285,527 | 273,846 | |
Other Liabilities | [1] | 17,372 | 16,018 |
Total liabilities | 811,672 | 766,047 | |
Netting | 13,063 | 9,331 | |
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 13,672 | 8,959 | |
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 | 12,700 | 8,900 | |
Embedded Derivative, Fair Value Of Embedded Derivative Gross Asset | 600 | 700 | |
Embedded Derivative, Fair Value Of Embedded Derivative Gross Liability | 13,300 | 9,600 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 383,390 | 353,656 | |
Assets supporting experience-rated contractholder liabilities | 21,838 | 21,254 | |
Fixed maturities, trading | 3,755 | 3,243 | |
Equity securities | 6,667 | 6,100 | |
Commercial mortgage and other loans | 645 | 763 | |
Other invested assets | 1,478 | 1,409 | |
Short-term investments | 4,626 | 5,493 | |
Cash equivalents | 7,917 | 9,478 | |
Other assets | 98 | 25 | |
Separate account assets | 279,072 | 254,066 | |
TOTAL ASSETS | 709,486 | 655,487 | |
Future policy benefits | 12,723 | 8,926 | |
Policyholders' account balances | 1,047 | 56 | |
Other Liabilities | 557 | 135 | |
Notes issued by consolidated VIEs | 816 | 595 | |
Total liabilities | 15,143 | 9,712 | |
Assets Netting | (13,063) | (9,331) | |
Liabilities Netting | (6,368) | (5,281) | |
Netting | 6,695 | 4,050 | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Netting | (13,063) | (9,331) | |
Fair Value, Measurements, Recurring | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities Netting | (6,368) | (5,281) | |
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 | 34,455 | 30,594 | |
Assets supporting experience-rated contractholder liabilities | 192 | 381 | |
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 | 11,202 | 10,493 | |
Assets supporting experience-rated contractholder liabilities | 210 | 196 | |
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 | 121,082 | 113,110 | |
Assets supporting experience-rated contractholder liabilities | 870 | 1,083 | |
Fair Value, Measurements, Recurring | U.S. public corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 93,518 | 83,415 | |
Fair Value, Measurements, Recurring | U.S. private corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 34,978 | 33,020 | |
Fair Value, Measurements, Recurring | Foreign public corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 30,311 | 29,201 | |
Fair Value, Measurements, Recurring | Foreign private corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 26,768 | 24,531 | |
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 | 13,630 | 13,119 | |
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 | 12,735 | 12,973 | |
Assets supporting experience-rated contractholder liabilities | 1,626 | 1,665 | |
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 | 15,154 | 13,315 | |
Assets supporting experience-rated contractholder liabilities | 2,297 | 2,324 | |
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 | 3,187 | 3,004 | |
Assets supporting experience-rated contractholder liabilities | 1,014 | 811 | |
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 | 1,633 | 1,460 | |
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 | 366 | 215 | |
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 | 1,360 | 1,222 | |
Fixed maturities, trading | 0 | 0 | |
Equity securities | 5,212 | 4,819 | |
Commercial mortgage and other loans | 0 | 0 | |
Other invested assets | 4 | 23 | |
Short-term investments | 1,888 | 2,713 | |
Cash equivalents | 778 | 2,848 | |
Other assets | 0 | 0 | |
Separate account assets | 44,622 | 39,534 | |
TOTAL ASSETS | 53,864 | 51,159 | |
Future policy benefits | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Other Liabilities | 13 | 18 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 13 | 18 | |
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. public corporate 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. private corporate 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 public corporate 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 private corporate 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 | 1,360 | 1,222 | |
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 | 0 | |
Fair Value, Measurements, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 379,615 | 349,421 | |
Assets supporting experience-rated contractholder liabilities | 19,840 | 19,213 | |
Fixed maturities, trading | 3,459 | 3,037 | |
Equity securities | 831 | 610 | |
Commercial mortgage and other loans | 645 | 763 | |
Other invested assets | 14,101 | 10,454 | |
Short-term investments | 2,450 | 2,691 | |
Cash equivalents | 7,138 | 6,553 | |
Other assets | 0 | 0 | |
Separate account assets | 232,742 | 212,998 | |
TOTAL ASSETS | 660,821 | 605,740 | |
Future policy benefits | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Other Liabilities | 6,912 | 5,398 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 6,912 | 5,398 | |
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 | 34,361 | 30,513 | |
Assets supporting experience-rated contractholder liabilities | 192 | 381 | |
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 | 11,198 | 10,488 | |
Assets supporting experience-rated contractholder liabilities | 210 | 196 | |
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 | 121,058 | 112,985 | |
Assets supporting experience-rated contractholder liabilities | 844 | 858 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. public corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 93,402 | 83,282 | |
Fair Value, Measurements, Recurring | Level 2 | U.S. private corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 33,213 | 31,265 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign public corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 30,240 | 29,148 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign private corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 25,928 | 23,787 | |
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 | 13,077 | 12,675 | |
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 | 11,937 | 11,726 | |
Assets supporting experience-rated contractholder liabilities | 1,569 | 1,516 | |
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 | 15,109 | 13,302 | |
Assets supporting experience-rated contractholder liabilities | 2,297 | 2,324 | |
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 | 3,169 | 2,925 | |
Assets supporting experience-rated contractholder liabilities | 1,014 | 811 | |
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 | 272 | 237 | |
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 | 365 | 215 | |
Fair Value, Measurements, Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 3,775 | 4,235 | |
Assets supporting experience-rated contractholder liabilities | 638 | 819 | |
Fixed maturities, trading | 296 | 206 | |
Equity securities | 624 | 671 | |
Commercial mortgage and other loans | 0 | 0 | |
Other invested assets | 436 | 263 | |
Short-term investments | 288 | 89 | |
Cash equivalents | 1 | 77 | |
Other assets | 98 | 25 | |
Separate account assets | 1,708 | 1,534 | |
TOTAL ASSETS | 7,864 | 7,919 | |
Future policy benefits | 12,723 | 8,926 | |
Policyholders' account balances | 1,047 | 56 | |
Other Liabilities | 0 | 0 | |
Notes issued by consolidated VIEs | 816 | 595 | |
Total liabilities | 14,586 | 9,577 | |
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 | 94 | 81 | |
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 | 4 | 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 | 24 | 125 | |
Assets supporting experience-rated contractholder liabilities | 26 | 225 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. public corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 116 | 133 | |
Fair Value, Measurements, Recurring | Level 3 | U.S. private corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 1,765 | 1,755 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign public corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 71 | 53 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign private corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 840 | 744 | |
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 | 553 | 444 | |
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 | 798 | 1,247 | |
Assets supporting experience-rated contractholder liabilities | 57 | 149 | |
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 | 45 | 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 | 18 | 79 | |
Assets supporting experience-rated contractholder liabilities | 0 | 0 | |
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 | 1 | 1 | |
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 | 1 | 0 | |
Prudential Netting Agreement | U.S. private corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 4,356 | 4,216 | |
Prudential Netting Agreement | Fair Value, Measurements, Recurring | U.S. private corporate securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale | 4,356 | 4,216 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | 4,089 | 4,115 | |
Separate account assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value investment measured at NAV per share | $ 24,508 | $ 25,070 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 285,527 | $ 273,846 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | 12,723 | 8,926 |
Policyholders' account balances | $ 1,047 | 56 |
Level 3 | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Fair Value Inputs, Policyholder Age | 45 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 | $ 12,723 | 8,926 |
Policyholders' account balances | $ 1,047 | $ 56 |
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 | 0.16% | 0.36% |
Utilization rate | 43.00% | 50.00% |
Withdrawal rate (greater than maximum range) | 78.00% | 78.00% |
Mortality rate | 0.00% | 0.00% |
Equity volatility curve | 13.00% | 18.00% |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 1.00% | |
Spread over LIBOR | 0.16% | |
Mortality rate | 0.00% | |
Equity volatility curve | 10.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 0.36% | 0.57% |
Level 3 | Internal | Minimum | Discounted cash flow | Separate Accounts Commercial Mortgage Loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Spread | 1.06% | 1.12% |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 4.5 | 4.5 |
Level 3 | Internal | Minimum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 3.98% | 11.77% |
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 18.00% | 13.00% |
Spread over LIBOR | 1.24% | 1.60% |
Utilization rate | 97.00% | 97.00% |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% |
Mortality rate | 15.00% | 15.00% |
Equity volatility curve | 23.00% | 22.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Lapse rate | 42.00% | |
Spread over LIBOR | 1.24% | |
Mortality rate | 24.00% | |
Equity volatility curve | 23.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 20.00% | 20.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Separate Accounts Commercial Mortgage Loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Spread | 2.44% | 2.55% |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 9.2 | 8.5 |
Level 3 | Internal | Maximum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 100.00% | 94.00% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 8.37% | 8.58% |
Level 3 | Internal | Weighted Average | Discounted cash flow | Separate Accounts Commercial Mortgage Loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Spread | 1.21% | 1.29% |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 7 | 8.1 |
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 58.42% | 32.16% |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 12,723 | $ 8,926 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholders' account balances | 1,047 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 1,441 | 1,392 |
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 | $ 860 | $ 785 |
Fair Value of Assets and Liab_5
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 674 | $ 785 | $ 671 | $ 795 |
Purchases | 23 | 35 | 46 | 42 |
Sales | (13) | (15) | (24) | (32) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (59) | (2) | (74) | (39) |
Other | 6 | (11) | 4 | 15 |
Transfers into Level 3 | 1 | 3 | 1 | 3 |
Transfers out of Level 3 | (24) | 0 | (24) | (3) |
Fair Value, end of period | 624 | 783 | 624 | 783 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 16 | (12) | 24 | 2 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 15 | (15) | 22 | (1) |
Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 16 | (12) | 24 | 2 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 15 | (15) | 22 | (1) |
Equity securities | 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 |
Equity securities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity securities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Assets supporting experience-rated contractholder liabilities | 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 | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 6 | (11) | 9 | (13) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 12 | (9) | 8 | (11) |
Assets supporting experience-rated contractholder 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 |
Assets supporting experience-rated contractholder liabilities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Assets supporting experience-rated contractholder liabilities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | 3 | 3 | 4 |
Assets supporting experience-rated contractholder liabilities | Foreign government bonds | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 29 | 220 | 225 | 223 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (3) | (3) | (3) | (3) |
Other | 0 | 0 | (196) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 26 | 221 | 26 | 221 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 4 | 0 | 1 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 2 | 0 | (2) |
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 | 592 | 468 | 444 | 462 |
Purchases | 14 | 41 | 41 | 65 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (67) | (51) | (143) | (69) |
Other | 0 | 0 | 196 | 0 |
Transfers into Level 3 | 10 | 40 | 10 | 40 |
Transfers out of Level 3 | (1) | 0 | (5) | (1) |
Fair Value, end of period | 553 | 488 | 553 | 488 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 5 | (10) | 10 | (9) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 11 | (10) | 6 | (9) |
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 | 60 | 664 | 149 | 722 |
Purchases | 0 | 16 | 6 | 19 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (4) | (129) | (25) | (142) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 5 | 0 | 33 |
Transfers out of Level 3 | 0 | (447) | (74) | (523) |
Fair Value, end of period | 57 | 107 | 57 | 107 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | (2) | 1 | (2) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1 | (1) | 1 | (1) |
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 | 1 | 5 | 1 | 4 |
Purchases | 0 | 0 | 0 | 0 |
Sales | (1) | (1) | (1) | (1) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 4 | 1 | 4 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | 0 | 1 | 1 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 1 | 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 | 0 | 7 | 0 | 7 |
Purchases | 3 | 24 | 3 | 43 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (2) | (26) | (2) | (45) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 5 | 1 | 5 |
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 invested assets | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 373 | 144 | 263 | 137 |
Purchases | 61 | 0 | 218 | 1 |
Sales | 0 | (12) | 0 | (12) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (42) | 0 |
Other | 2 | (6) | (2) | (8) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 436 | 122 | 436 | 122 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (4) | (1) | 4 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (3) | (1) | 2 |
Other invested assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (4) | (1) | 4 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (3) | (1) | 2 |
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 |
Other invested 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 |
Other invested assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
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 | 168 | 10 | 89 | 8 |
Purchases | 273 | 8 | 426 | 22 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (153) | (14) | (227) | (26) |
Other | 0 | (3) | 0 | (2) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 288 | 1 | 288 | 1 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (1) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | (1) |
Short-term investments | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (1) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | (1) |
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 |
Short-term investments | 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 |
Short-term investments | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
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 | 1 | 0 | 77 | 0 |
Purchases | 0 | 9 | 1 | 9 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | (7) | (77) | (7) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 2 | 1 | 2 |
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 | 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 |
Cash equivalents | 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 |
Cash equivalents | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
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 | 48 | 0 | 25 | 13 |
Purchases | 8 | 0 | 17 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 98 | 0 | 98 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 42 | 0 | 56 | (13) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 41 | 0 | 55 | (13) |
Other assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 42 | 0 | 56 | (13) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 41 | 0 | 55 | (13) |
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 |
Other assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
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 | 1,635 | 2,360 | 1,534 | 2,122 |
Purchases | 139 | 253 | 228 | 490 |
Sales | (6) | (14) | (17) | (22) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (27) | (140) | (50) | (261) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 29 | 0 | 224 |
Transfers out of Level 3 | (77) | (694) | (112) | (726) |
Fair Value, end of period | 1,708 | 1,816 | 1,708 | 1,816 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 44 | 22 | 125 | (11) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 41 | 21 | 115 | (5) |
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 | 43 | 22 | 123 | (11) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 41 | 21 | 115 | (5) |
Separate accounts assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Separate accounts assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | 0 | 2 | 0 |
Future policy benefits | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (10,025) | (6,981) | (8,926) | (8,720) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (298) | (287) | (588) | (574) |
Settlements | 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 | (12,723) | (6,585) | (12,723) | (6,585) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (2,400) | 683 | (3,210) | 2,709 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (2,503) | 612 | (3,364) | 2,529 |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (2,400) | 683 | (3,210) | 2,709 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (2,503) | 612 | (3,364) | 2,529 |
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 |
Future policy benefits | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (146) | (40) | (56) | (47) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | (73) | 0 | (109) | 0 |
Settlements | 0 | 6 | 0 | 8 |
Other | 0 | 0 | (3) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (1,047) | (42) | (1,047) | (42) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (828) | (8) | (879) | (3) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (821) | (8) | (872) | (3) |
Policyholders' account balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (828) | (8) | (879) | (3) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (821) | (8) | (872) | (3) |
Policyholders' account balances | 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 |
Policyholders' account balances | 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 |
Policyholders' account balances | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
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 | 0 | (16) | 0 | (3) |
Purchases | 0 | 8 | 0 | 18 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 1 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | (18) | 0 | (18) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (10) | 0 | (34) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (10) | 0 | (33) |
Other liabilities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (10) | 0 | (34) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | (10) | 0 | (33) |
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 |
Other liabilities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other liabilities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
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 | (817) | (612) | (595) | (1,196) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | (858) | 0 |
Settlements | 0 | 0 | 638 | 0 |
Other | 0 | 0 | 0 | 587 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (816) | (609) | (816) | (609) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | 3 | (1) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1 | 3 | (1) | 0 |
Notes Issued by Consolidated VIEs | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1 | 3 | (1) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1 | 3 | (1) | 0 |
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 |
Notes Issued by Consolidated VIEs | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Notes Issued by Consolidated VIEs | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (11) | (19) | (13) | (13) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (5) | (21) | (26) | (30) |
Available-for-sale | Fixed maturities | 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 |
Available-for-sale | Fixed maturities | 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 | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 18 | (25) | 40 | (39) |
Available-for-sale | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 6 | 4 | 10 | 8 |
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 | 88 | 59 | 81 | 52 |
Purchases | 6 | 8 | 13 | 15 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 94 | 67 | 94 | 67 |
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 | 4 | 5 | 5 | 5 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | (1) | 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 | 4 | 5 | 4 | 5 |
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 bonds | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 138 | 128 | 125 | 148 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | (2) | (4) | (1) | (3) |
Transfers into Level 3 | 0 | 15 | 9 | 20 |
Transfers out of Level 3 | (111) | 0 | (111) | (26) |
Fair Value, end of period | 24 | 137 | 24 | 137 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1) | (2) | 2 | (2) |
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 | 2,757 | 2,735 | 2,685 | 2,776 |
Purchases | 288 | 257 | 607 | 375 |
Sales | (17) | (3) | (29) | (4) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (225) | (286) | (604) | (455) |
Other | 1 | (31) | (1) | (19) |
Transfers into Level 3 | 19 | 69 | 183 | 129 |
Transfers out of Level 3 | (37) | (21) | (59) | (93) |
Fair Value, end of period | 2,792 | 2,691 | 2,792 | 2,691 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 6 | (29) | 10 | (18) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (5) | (21) | (26) | (30) |
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 | 1,915 | 6,899 | 1,339 | 6,715 |
Purchases | 113 | 441 | 431 | 1,989 |
Sales | (47) | (278) | (47) | (344) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (101) | (668) | (332) | (1,317) |
Other | 9 | (24) | 7 | 6 |
Transfers into Level 3 | 17 | 62 | 750 | 1,133 |
Transfers out of Level 3 | (1,053) | (4,759) | (1,312) | (6,494) |
Fair Value, end of period | 861 | 1,664 | 861 | 1,664 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 8 | (9) | 25 | (24) |
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 | 240 | 204 | 206 | 156 |
Purchases | 36 | 9 | 74 | 49 |
Sales | (13) | (38) | (14) | (42) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | (3) | 0 | (3) |
Other | 1 | (2) | 3 | 3 |
Transfers into Level 3 | 39 | 1 | 39 | 12 |
Transfers out of Level 3 | 0 | (3) | (1) | (5) |
Fair Value, end of period | 296 | 173 | 296 | 173 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (7) | 5 | (11) | 3 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (7) | 0 | (7) | 4 |
Trading | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 1 | 0 | 1 |
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 | (8) | 4 | (12) | 2 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (7) | 0 | (7) | 4 |
Trading | Fixed maturities | 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 |
Trading | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | $ 1 | $ 0 | $ 1 | $ 0 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Derivative Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | $ 1,043 | $ 1,148 |
Netting | (13,063) | (9,331) |
Total derivative liabilities | 557 | 127 |
Netting | (6,368) | (5,281) |
Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 10,552 | 6,366 |
Total derivative liabilities | 4,946 | 3,820 |
Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 346 | 273 |
Total derivative liabilities | 122 | 140 |
Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 103 | 33 |
Total derivative liabilities | 2 | 23 |
Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2,497 | 2,292 |
Total derivative liabilities | 756 | 778 |
Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 608 | 1,515 |
Total derivative liabilities | 1,099 | 647 |
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 | 4 | 23 |
Total derivative liabilities | 13 | 9 |
Level 1 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 3 | 23 |
Total derivative liabilities | 8 | 2 |
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 | 0 |
Total derivative liabilities | 5 | 7 |
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 | 14,101 | 10,454 |
Total derivative liabilities | 6,912 | 5,399 |
Level 2 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 10,548 | 6,341 |
Total derivative liabilities | 4,938 | 3,818 |
Level 2 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 346 | 273 |
Total derivative liabilities | 122 | 140 |
Level 2 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 103 | 33 |
Total derivative liabilities | 2 | 23 |
Level 2 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2,497 | 2,292 |
Total derivative liabilities | 756 | 778 |
Level 2 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 607 | 1,515 |
Total derivative liabilities | 1,094 | 640 |
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 | 1 | 2 |
Total derivative liabilities | 0 | 0 |
Level 3 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 1 | 2 |
Total derivative liabilities | 0 | 0 |
Level 3 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
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 | $ (6,695) | $ (4,050) |
Fair Value of Assets and Liab_7
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Derivative- Equity | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, beginning of period | $ 0 | $ 6 | $ 0 | $ 10 |
Total gains (losses) (realized/unrealized): | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | (4) | 0 | (9) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 2 | 0 | 2 |
Net Derivative- Interest Rate | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, beginning of period | 1 | 6 | 2 | (3) |
Total gains (losses) (realized/unrealized): | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 2 | 1 | 2 |
Realized investment gains (losses), net | Net Derivative- Equity | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 1 |
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 | 0 | (4) | (1) | 5 |
Unrealized Gain (Loss) for assets still held | ||||
Included in earnings | $ 0 | $ 4 | $ (1) | $ 5 |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities (Nonrecurring Fair Value Measurements) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Commercial mortgage loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized investment gains (losses) net | $ 0 | $ (13) | $ 0 | $ (13) | |
Carrying value after measurement as of period end | 14 | 14 | $ 47 | ||
Mortgage servicing rights | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized investment gains (losses) net | (1) | $ 2 | (2) | $ 4 | |
Carrying value after measurement as of period end | $ 66 | $ 66 | $ 73 |
Fair Value of Assets and Liab_9
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | [1] | $ 61,228 | $ 61,228 | $ 59,830 | ||
Other assets | [1] | 18,690 | 18,690 | 16,118 | ||
Commercial mortgage and other loans | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Interest income | 5 | $ 4 | 11 | $ 6 | ||
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 | ||||
Notes Issued by Consolidated VIEs | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Changes in fair value | (1) | (3) | 1 | 0 | ||
Interest expense | 13 | $ 9 | 22 | $ 18 | ||
Fair value option | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | 645 | 645 | 763 | |||
Other assets | 10 | 10 | 10 | |||
Notes issued by consolidated VIEs | 816 | 816 | 595 | |||
Fair value option, aggregate contractual principal | ||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||
Commercial mortgage and other loans | 639 | 639 | 754 | |||
Notes issued by consolidated VIEs | $ 857 | $ 857 | $ 632 | |||
[1] | See Note 4 for details of balances associated with variable interest entities. |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |||
Assets: | ||||||
Fixed maturities, held-to-maturity | [1] | $ 2,009 | $ 2,013 | |||
Assets supporting experience-rated contractholder liabilities | [1] | 21,843 | 21,254 | |||
Commercial mortgage and other loans | [1] | 61,228 | 59,830 | |||
Policy loans | 12,030 | 12,016 | ||||
Other invested assets | [1] | 15,081 | 14,526 | |||
Short-term Investments | 5,872 | 6,469 | ||||
Cash and cash equivalents | 15,421 | [1] | 15,353 | [1] | $ 14,918 | |
Accrued investment income | [1] | 3,355 | 3,318 | |||
Liabilities: | ||||||
Securities sold under agreements to repurchase | 9,741 | 9,950 | ||||
Cash collateral for loaned securities | 4,235 | 3,929 | ||||
Short-term debt | 2,659 | 2,451 | ||||
Long-term debt | 17,841 | 17,378 | ||||
Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,410 | 2,372 | ||||
Assets supporting experience-rated contractholder liabilities | 5 | 0 | ||||
Commercial mortgage and other loans | 62,984 | 59,215 | ||||
Policy loans | 12,030 | 12,016 | ||||
Other invested assets | 36 | 40 | ||||
Short-term Investments | 1,246 | 976 | ||||
Cash and cash equivalents | 7,504 | 5,875 | ||||
Accrued investment income | 3,355 | 3,318 | ||||
Other assets | 3,402 | 2,813 | ||||
Total assets | 92,972 | 86,625 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 101,813 | 98,428 | ||||
Securities sold under agreements to repurchase | 9,741 | 9,950 | ||||
Cash collateral for loaned securities | 4,235 | 3,929 | ||||
Short-term debt | 2,796 | 2,512 | ||||
Long-term debt | 20,023 | 17,972 | ||||
Notes issued by consolidated VIEs | 430 | 360 | ||||
Other liabilities | 6,976 | 6,848 | ||||
Separate account liabilities—investment contracts | 98,959 | 92,936 | ||||
Total liabilities | 244,973 | 232,935 | ||||
Carrying Amount | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,009 | 2,013 | ||||
Assets supporting experience-rated contractholder liabilities | 5 | 0 | ||||
Commercial mortgage and other loans | 60,583 | 59,067 | ||||
Policy loans | 12,030 | 12,016 | ||||
Other invested assets | 36 | 40 | ||||
Short-term Investments | 1,246 | 976 | ||||
Cash and cash equivalents | 7,504 | 5,875 | ||||
Accrued investment income | 3,355 | 3,318 | ||||
Other assets | 3,400 | 2,813 | ||||
Total assets | 90,168 | 86,118 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 100,934 | 99,829 | ||||
Securities sold under agreements to repurchase | 9,741 | 9,950 | ||||
Cash collateral for loaned securities | 4,235 | 3,929 | ||||
Short-term debt | 2,659 | 2,451 | ||||
Long-term debt | 17,841 | 17,378 | ||||
Notes issued by consolidated VIEs | 430 | 360 | ||||
Other liabilities | 6,976 | 6,848 | ||||
Separate account liabilities—investment contracts | 98,959 | 92,936 | ||||
Total liabilities | 241,775 | 233,681 | ||||
Level 1 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 0 | 0 | ||||
Assets supporting experience-rated contractholder liabilities | 5 | 0 | ||||
Commercial mortgage and other loans | 0 | 0 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Short-term Investments | 1,065 | 951 | ||||
Cash and cash equivalents | 6,222 | 4,871 | ||||
Accrued investment income | 0 | 0 | ||||
Other assets | 149 | 141 | ||||
Total assets | 7,441 | 5,963 | ||||
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 | 1,909 | 1,734 | ||||
Notes issued by consolidated VIEs | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Separate account liabilities—investment contracts | 0 | 0 | ||||
Total liabilities | 1,909 | 1,734 | ||||
Level 2 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,310 | 1,468 | ||||
Assets supporting experience-rated contractholder liabilities | 0 | 0 | ||||
Commercial mortgage and other loans | 111 | 109 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 36 | 40 | ||||
Short-term Investments | 181 | 25 | ||||
Cash and cash equivalents | 1,282 | 1,004 | ||||
Accrued investment income | 3,355 | 3,318 | ||||
Other assets | 2,707 | 2,189 | ||||
Total assets | 9,982 | 8,153 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 31,849 | 31,422 | ||||
Securities sold under agreements to repurchase | 9,741 | 9,950 | ||||
Cash collateral for loaned securities | 4,235 | 3,929 | ||||
Short-term debt | 1,870 | 1,854 | ||||
Long-term debt | 16,780 | 15,057 | ||||
Notes issued by consolidated VIEs | 0 | 0 | ||||
Other liabilities | 6,431 | 6,338 | ||||
Separate account liabilities—investment contracts | 74,167 | 66,914 | ||||
Total liabilities | 145,073 | 135,464 | ||||
Level 3 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 100 | 904 | ||||
Assets supporting experience-rated contractholder liabilities | 0 | 0 | ||||
Commercial mortgage and other loans | 62,873 | 59,106 | ||||
Policy loans | 12,030 | 12,016 | ||||
Other invested assets | 0 | 0 | ||||
Short-term Investments | 0 | 0 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Accrued investment income | 0 | 0 | ||||
Other assets | 546 | 483 | ||||
Total assets | 75,549 | 72,509 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 69,964 | 67,006 | ||||
Securities sold under agreements to repurchase | 0 | 0 | ||||
Cash collateral for loaned securities | 0 | 0 | ||||
Short-term debt | 926 | 658 | ||||
Long-term debt | 1,334 | 1,181 | ||||
Notes issued by consolidated VIEs | 430 | 360 | ||||
Other liabilities | 545 | 510 | ||||
Separate account liabilities—investment contracts | 24,792 | 26,022 | ||||
Total liabilities | 97,991 | 95,737 | ||||
Prudential Netting Agreement | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 5,190 | 4,879 | ||||
Liabilities: | ||||||
Long-term debt | 9,546 | 9,095 | ||||
Prudential Netting Agreement | Carrying Amount | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 4,879 | 4,879 | ||||
Liabilities: | ||||||
Long-term debt | $ 9,235 | $ 9,095 | ||||
[1] | See Note 4 for details of balances associated with variable interest entities. |
Leases Narrative (Details)
Leases Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Leases with options to extend | 18 years | 18 years |
Leases with options to terminate | 8 years | |
Operating Lease, Cost | $ 35 | $ 69 |
Short-term Lease, Cost | 26 | 50 |
Income and Expenses, Lessor [Abstract] | ||
Lease Income | $ 50 | $ 100 |
Less than | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 30 years | 30 years |
Lessee Right-of Use Assets and
Lessee Right-of Use Assets and Operating Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating Lease, Lease Income [Abstract] | |
Right-of-use assets | $ 561 |
Lease liabilities | $ 589 |
Weighted average remaining lease term | 6 years |
Weighted average discount rate | 2.62% |
Maturities of Operating Lease L
Maturities of Operating Lease Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (July — December) | $ 85 |
2020 | 141 |
2021 | 122 |
2022 | 88 |
2023 | 65 |
Thereafter | 144 |
Total lease payments | 645 |
Less imputed interest | (56) |
Total | $ 589 |
Closed Block (Narrative) (Detai
Closed Block (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Closed Block Dividend Obligation | $ 5,560 | $ 3,150 |
Accumulated Distributions in Excess of Net Income [Member] | ||
Closed Block Dividend Obligation | 2,359 | 2,252 |
Net Unrealized Investment Gains (Losses) | ||
Closed Block Dividend Obligation | $ 3,201 | $ 899 |
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, 2019 | Dec. 31, 2018 |
Closed Block liabilities | ||
Future policy benefits | $ 47,940 | $ 48,282 |
Policyholders’ dividends payable | 810 | 812 |
Policyholders’ dividend obligation | 5,560 | 3,150 |
Policyholders’ account balances | 5,011 | 5,061 |
Other Closed Block liabilities | 4,282 | 3,955 |
Total Closed Block liabilities | 63,603 | 61,260 |
Closed Block assets | ||
Fixed maturities, available-for-sale, at fair value | 40,602 | 38,538 |
Fixed maturities, trading, at fair value | 236 | 195 |
Equity securities, at fair value | 2,055 | 1,784 |
Commercial mortgage and other loans | 8,451 | 8,782 |
Policy loans | 4,328 | 4,410 |
Other invested assets | 3,291 | 3,316 |
Short-term investments | 659 | 477 |
Total investments | 59,622 | 57,502 |
Cash and cash equivalents | 633 | 467 |
Accrued investment income | 460 | 466 |
Other Closed Block assets | 199 | 105 |
Total Closed Block assets | 60,914 | 58,540 |
Excess of reported Closed Block liabilities over Closed Block assets | 2,689 | 2,720 |
Portion of above representing accumulated other comprehensive income (loss): | ||
Net unrealized investment gains (losses) | 3,156 | 857 |
Allocated to policyholder dividend obligation | (3,201) | (899) |
Future earnings to be recognized from Closed Block assets and Closed Block liabilities | $ 2,644 | $ 2,678 |
Closed Block (Information Regar
Closed Block (Information Regarding Policyholder Dividend Obligation) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Movement in Closed Block Dividend Obligation [Roll Forward] | |
Balance, beginning | $ 3,150 |
Impact from earnings allocable to policyholder dividend obligation | 107 |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation | 2,303 |
Balance, ending | $ 5,560 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Premiums | $ 581 | $ 602 | $ 1,108 | $ 1,152 |
Net investment income | 576 | 593 | 1,141 | 1,190 |
Realized investment gains (losses), net | 49 | 110 | 105 | 108 |
Other income (loss) | 97 | 85 | 325 | 107 |
Total Closed Block revenues | 1,303 | 1,390 | 2,679 | 2,557 |
Benefits and Expenses | ||||
Policyholders’ benefits | 780 | 778 | 1,489 | 1,506 |
Interest credited to policyholders’ account balances | 32 | 33 | 64 | 66 |
Dividends to policyholders | 415 | 508 | 968 | 816 |
General and administrative expenses | 89 | 92 | 178 | 184 |
Total Closed Block benefits and expenses | 1,316 | 1,411 | 2,699 | 2,572 |
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes | (13) | (21) | (20) | (15) |
Income tax expense (benefit) | (29) | (36) | (53) | (45) |
Closed Block revenues, net of Closed Block benefits and expenses and income taxes | $ 16 | $ 15 | $ 33 | $ 30 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Change in Accounting Estimate [Line Items] | ||||
Total income tax expense (benefit) | $ 162 | $ 68 | $ 394 | $ 420 |
Effective Income Tax Rate, Percent | 19.50% | 21.60% | ||
Federal Statutory Income Tax Rate, Percent | 21.00% | |||
U.S. Tax Cut and Jobs Act of 2017 | ||||
Change in Accounting Estimate [Line Items] | ||||
Total provision for income tax expense (benefit) | $ (27) |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt (Short-Term Debt) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | |||
Short-term debt | $ 2,659 | $ 2,451 | |
Weighted average interest rate on outstanding short-term debt | 2.42% | 1.90% | |
Commercial paper | |||
Short-term Debt [Line Items] | |||
Short-term debt | $ 845 | $ 742 | |
Weighted average maturity of outstanding commercial paper, in days | 11 days | 12 days | |
Long-term debt | |||
Short-term Debt [Line Items] | |||
Short-term debt | $ 1,756 | 1,656 | |
Borrowings due overnight | Commercial paper | |||
Short-term Debt [Line Items] | |||
Short-term debt | 220 | 301 | |
Daily average outstanding | Commercial paper | |||
Short-term Debt [Line Items] | |||
Short-term debt | 1,676 | 1,554 | |
Prudential Financial | |||
Short-term Debt [Line Items] | |||
Short-term debt | 1,027 | 1,115 | |
Prudential Financial | Commercial paper | |||
Short-term Debt [Line Items] | |||
Short-term debt | 25 | 15 | |
Prudential Funding, LLC | Commercial paper | |||
Short-term Debt [Line Items] | |||
Short-term debt | 820 | 727 | |
Mortgages | |||
Short-term Debt [Line Items] | |||
Short-term debt | 52 | 53 | |
Construction Loan Payable | |||
Short-term Debt [Line Items] | |||
Short-term debt | 253 | 57 | |
Line of Credit | |||
Short-term Debt [Line Items] | |||
Short-term debt | 6 | 0 | |
Senior notes | |||
Short-term Debt [Line Items] | |||
Short-term debt | $ 1,003 | $ 1,100 |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt (Narrative) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Debt, Current | $ 2,659,000,000 | $ 2,451,000,000 |
Amounts drawn on credit facilities | 0 | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 300,000,000 | |
Line of Credit Facility, Expiration Period | 3 years | |
Senior notes | ||
Debt Instrument [Line Items] | ||
Debt, Current | $ 1,003,000,000 | $ 1,100,000,000 |
Increase (decrease) of debt | 200,000,000 | |
Debt Instrument, Face Amount | 1,000,000,000 | |
Senior Notes | $ 10,140,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | |
Long-term Debt, Current Maturities | $ 800,000,000 | |
Mortgages | ||
Debt Instrument [Line Items] | ||
Increase (decrease) of debt | 23,000,000 | |
Foreign exchange fluctuations of debt | 5,000,000 | |
Debt Instrument, Face Amount | $ 28,000,000 | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Expiration Period | 1 year |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 17,841 | $ 17,378 |
Surplus notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 342 | 341 |
Surplus notes subject to set-off arrangements | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,035 | 6,895 |
Surplus notes subject to set-off arrangements | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,200 | 2,200 |
Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 9,106 | 8,774 |
Senior notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 29 | 29 |
Mortgages | ||
Debt Instrument [Line Items] | ||
Long-term debt | 799 | |
Mortgages | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 160 | 237 |
Mortgages | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 333 | 429 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit, Noncurrent | 299 | 0 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,572 | 7,568 |
Subtotal | ||
Debt Instrument [Line Items] | ||
Long-term debt | 27,076 | 26,473 |
Less: assets under set-off arrangements | ||
Debt Instrument [Line Items] | ||
Long-term debt | 9,235 | 9,095 |
Debt denominated in foreign currency | Mortgages | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 99 | 101 |
Debt denominated in foreign currency | Mortgages | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 166 | 206 |
Prudential Financial | ||
Debt Instrument [Line Items] | ||
Long-term debt | 16,475 | $ 16,141 |
Prudential Financial | Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,514 | |
Subsidiaries | Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 58 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - Other Postretirement Benefits | 6 Months Ended | 9 Months Ended |
Jun. 30, 2019 | Sep. 30, 2018 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred Compensation Arrangement with Individual, Requisite Age | 50 years | |
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 years | |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 72 | $ 79 | $ 145 | $ 158 |
Interest cost | 123 | 112 | 246 | 224 |
Expected return on plan assets | (204) | (205) | (408) | (409) |
Amortization of prior service cost | (1) | (1) | (2) | (2) |
Amortization of actuarial (gain) loss, net | 54 | 54 | 108 | 107 |
Settlements | 48 | 0 | 48 | 0 |
Special termination benefits | 1 | 1 | 1 | 1 |
Net periodic (benefit) cost | 93 | 40 | 138 | 79 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5 | 6 | 11 | 12 |
Interest cost | 20 | 17 | 39 | 35 |
Expected return on plan assets | (23) | (27) | (47) | (54) |
Amortization of prior service cost | 1 | 0 | 2 | 0 |
Amortization of actuarial (gain) loss, net | 6 | 5 | 12 | 9 |
Settlements | 0 | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 | 0 |
Net periodic (benefit) cost | $ 9 | $ 1 | $ 17 | $ 2 |
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, 2019shares | |
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 | 249,400,000 |
Common Stock issued | 0 |
Common Stock acquired | 10,400,000 |
Stock-based compensation programs | (2,700,000) |
Balance, ending | 257,100,000 |
Outstanding | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Balance, beginning | 410,700,000 |
Common Stock issued | 0 |
Common Stock acquired | (10,400,000) |
Stock-based compensation programs | 2,700,000 |
Balance, ending | 403,000,000 |
Equity (Dividends Declared) (De
Equity (Dividends Declared) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Dividends declared per share of Common Stock | $ 1 | $ 0.90 | $ 2 | $ 1.80 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) shares in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Cost of Treasury Stock Acquired | $ 983,000,000 | $ 739,000,000 | |
Under December 2018 Board Of Directors Authorization [Member] | |||
Class of Stock [Line Items] | |||
Amount of Stock Repurchases Authorized by the Board of Directors | $ 2,000,000,000 | ||
Under December 2018 Board Of Directors Authorization [Member] | Common Stock | |||
Class of Stock [Line Items] | |||
Number of Treasury Stock Shares Acquired | 10.4 | ||
Cost of Treasury Stock Acquired | $ 1,000,000,000 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 10,906 | |||
Income tax benefit (expense) | $ (1,966) | $ 838 | (3,910) | $ 1,682 |
Ending balance | 23,982 | 23,982 | ||
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (564) | (269) | ||
Change in OCI before reclassifications | 98 | (44) | ||
Amounts reclassified from AOCI | 5 | 0 | ||
Income tax benefit (expense) | 8 | 6 | ||
Ending balance | (453) | (538) | (453) | (538) |
Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 14,745 | 19,968 | ||
Change in OCI before reclassifications | 17,296 | (7,502) | ||
Amounts reclassified from AOCI | (501) | (490) | ||
Income tax benefit (expense) | (3,899) | 1,704 | ||
Ending balance | 27,648 | 15,115 | 27,648 | 15,115 |
Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (3,275) | (2,625) | ||
Change in OCI before reclassifications | (39) | 15 | ||
Amounts reclassified from AOCI | 120 | 114 | ||
Income tax benefit (expense) | (19) | (28) | ||
Ending balance | (3,213) | (2,922) | (3,213) | (2,922) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 10,906 | 17,074 | ||
Change in OCI before reclassifications | 17,355 | (7,531) | ||
Amounts reclassified from AOCI | (376) | (376) | ||
Income tax benefit (expense) | (3,910) | 1,682 | ||
Ending balance | 23,982 | 11,655 | 23,982 | 11,655 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 811 | (39) | ||
Ending balance | $ 1,017 | $ 99 | 1,017 | 99 |
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 2017-12 | Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption | 0 | |||
ASU 2017-12 | Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption | 7 | |||
ASU 2017-12 | Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption | 0 | |||
ASU 2017-12 | Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of adoption | $ 7 | |||
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized investment gains (losses), net | $ (336) | $ 685 | $ (1,102) | $ 1,110 |
Other income | 643 | (54) | 1,897 | (561) |
Total foreign currency translation adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 5 | 0 | ||
Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (501) | (490) | ||
Total amortization of defined benefit pension items | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 120 | 114 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (376) | (376) | ||
Amounts reclassified from AOCI | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized investment gains (losses), net | 0 | 0 | (5) | 0 |
Other income | 0 | 0 | 0 | 0 |
Amortization of defined benefit pension items: | ||||
Prior service cost | 0 | 1 | 0 | 2 |
Actuarial gain (loss) | (60) | (59) | (120) | (116) |
Amounts reclassified from AOCI | Total foreign currency translation adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 0 | 0 | (5) | 0 |
Amounts reclassified from AOCI | Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 226 | 464 | 501 | 490 |
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 | (60) | (58) | (120) | (114) |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 166 | 406 | 376 | 376 |
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) | 69 | 165 | 329 | 243 |
Amounts reclassified from AOCI | Interest Rate | Cash flow hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 0 | 2 | (1) | 2 |
Amounts reclassified from AOCI | Currency | Cash flow hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 1 | 3 | 2 | 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) | $ 156 | $ 294 | $ 171 | $ 245 |
Equity (OTTI Net Unrealized Inv
Equity (OTTI Net Unrealized Investment Gains and Losses in AOCI) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 10,906 |
Ending balance | 23,982 |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 14,745 |
Ending balance | 27,648 |
OTTI | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 189 |
Net investment gains (losses) on investments arising during the period | 118 |
Reclassification adjustment for (gains) losses included in net income | (29) |
Reclassification adjustment for OTTI losses excluded from net income | 0 |
Ending balance | 278 |
OTTI | DAC, DSI, VOBA and Reinsurance Recoverables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (1) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 0 |
Ending balance | (1) |
OTTI | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 4 |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | (4) |
Ending balance | 0 |
OTTI | Policyholders’ Dividends | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (23) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (4) |
Ending balance | (27) |
OTTI | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (61) |
Net investment gains (losses) on investments arising during the period | (27) |
Reclassification adjustment for (gains) losses included in net income | 7 |
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 | 1 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 1 |
Ending balance | (79) |
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 | 108 |
Net investment gains (losses) on investments arising during the period | 91 |
Reclassification adjustment for (gains) losses included in net income | (22) |
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 | (3) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (3) |
Ending balance | $ 171 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 10,906 | |
Ending balance | 23,982 | |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 14,745 | $ 19,968 |
Ending balance | 27,648 | $ 15,115 |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ASU 2017-12 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | 7 | |
All Other | Net Unrealized Gains (Losses) on Investments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 22,531 | |
Net investment gains (losses) on investments arising during the period | 21,474 | |
Reclassification adjustment for (gains) losses included in net income | (472) | |
Reclassification adjustment for OTTI losses excluded from net income | 0 | |
Ending balance | 43,542 | |
All Other | Net Unrealized Gains (Losses) on Investments | ASU 2017-12 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | 9 | |
All Other | DAC, DSI, VOBA and Reinsurance Recoverables | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (738) | |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (1,180) | |
Ending balance | (1,918) | |
All Other | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (791) | |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | (798) | |
Ending balance | (1,589) | |
All Other | Policyholders’ Dividends | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (894) | |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (2,312) | |
Ending balance | (3,206) | |
All Other | Deferred Income Tax (Liability) Benefit | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (5,471) | |
Net investment gains (losses) on investments arising during the period | (4,925) | |
Reclassification adjustment for (gains) losses included in net income | 108 | |
Reclassification adjustment for OTTI losses excluded from net income | 0 | |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 251 | |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | 201 | |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 486 | |
Ending balance | (9,352) | |
All Other | Deferred Income Tax (Liability) Benefit | ASU 2017-12 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | (2) | |
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 | 14,637 | |
Net investment gains (losses) on investments arising during the period | 16,549 | |
Reclassification adjustment for (gains) losses included in net income | (364) | |
Reclassification adjustment for OTTI losses excluded from net income | 0 | |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (929) | |
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables | (597) | |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (1,826) | |
Ending balance | 27,477 | |
All Other | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | ASU 2017-12 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cumulative effect of adoption | $ 7 |
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, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic earnings per share | ||||||
Net income (loss) | $ 738 | $ 937 | $ 200 | $ 1,364 | $ 1,675 | $ 1,564 |
Less: Income (loss) attributable to noncontrolling interests | 30 | 3 | 35 | 4 | ||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards | 8 | 4 | 18 | 18 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Income | $ 700 | $ 193 | $ 1,622 | $ 1,542 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Weighted Average Shares | 405.3 | 419.5 | 407.3 | 420.8 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Per Share Amount | $ 1.73 | $ 0.46 | $ 3.98 | $ 3.66 | ||
Effect of dilutive securities and compensation programs | ||||||
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic | $ 8 | $ 4 | $ 18 | $ 18 | ||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted | $ 8 | $ 4 | $ 18 | $ 18 | ||
Stock options, Weighted Average Shares | 1.3 | 1.5 | 1.2 | 1.7 | ||
Deferred and long-term compensation programs, Weighted Average Shares | 1.1 | 1.1 | 1.1 | 1.1 | ||
Exchangeable Surplus Notes | $ 6 | $ 6 | $ 11 | $ 11 | ||
Exchangeable Surplus Notes, Weighted Average Shares | 6.2 | 5.9 | 6.2 | 5.9 | ||
Diluted earnings per share | ||||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Income | $ 706 | $ 199 | $ 1,633 | $ 1,553 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Weighted Average Shares | 413.9 | 428 | 415.8 | 429.5 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Per Share Amount | $ 1.71 | $ 0.46 | $ 3.93 | $ 3.62 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) $ / shares in Units, shares in Millions | Aug. 02, 2019USD ($)shares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018shares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018shares | Sep. 30, 2009USD ($) |
Debt Instrument [Line Items] | ||||||
Exchangeable surplus notes (in shares) | 6.2 | 5.9 | 6.2 | 5.9 | ||
Undistributed earnings allocated to participating unvested share-based payment awards, weighted outstanding shares | 4.5 | 4.9 | 4.6 | 4.9 | ||
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 | ||||
Interest rate | 5.36% | |||||
Debt instrument, convertible, conversion ratio | 12.3877 | |||||
Exchangeable surplus notes (in shares) | 6.2 | |||||
Exchange price of common stock, per share | $ / shares | $ 80.73 | $ 80.73 | ||||
Subsequent Event | Long-term debt | Exhangeable Surplus Notes | ||||||
Debt Instrument [Line Items] | ||||||
Surplus notes principal amount, for each | $ | $ 1,000 | |||||
Debt instrument, convertible, conversion ratio | 12.3877 | |||||
Exchangeable surplus notes (in shares) | 6.2 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0.9 | 0.8 | 1 | 0.5 |
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 | 0.9 | 0.8 | 1 | 0.5 |
Antidilutive securities excluded from computation of earnings, Exercise Price Per Share | $ 105.95 | $ 108.61 | $ 104.57 | $ 108.35 |
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 |
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) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019segmentdivision | Jun. 30, 2019segmentdivision | |
Segment Reporting [Abstract] | ||
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 876 | $ 250 | $ 2,016 | $ 1,943 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 1,653 | 1,661 | 3,258 | 3,382 |
Operating Segments | Total PGIM division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 264 | 254 | 478 | 486 |
Operating Segments | Total PGIM division | PGIM | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 264 | 254 | 478 | 486 |
Operating Segments | Total U.S. Workplace Solutions division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 548 | 359 | 852 | 731 |
Operating Segments | Total U.S. Workplace Solutions division | Retirement | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 467 | 277 | 718 | 594 |
Operating Segments | Total U.S. Workplace Solutions division | Group Insurance | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 81 | 82 | 134 | 137 |
Operating Segments | Total U.S. Individual Solutions division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 327 | 550 | 904 | 1,105 |
Operating Segments | Total U.S. Individual Solutions division | Individual Annuities | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 462 | 507 | 934 | 1,026 |
Operating Segments | Total U.S. Individual Solutions division | Individual Life | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (135) | 43 | (30) | 79 |
Operating Segments | Total International Insurance division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 849 | 784 | 1,771 | 1,640 |
Operating Segments | Total International Insurance division | International Insurance | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 849 | 784 | 1,771 | 1,640 |
Operating Segments | Total Corporate and Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (335) | (286) | (747) | (580) |
Operating Segments | Total Corporate and Other | Corporate and Other operations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (335) | (286) | (747) | (580) |
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (548) | 393 | (1,211) | 480 |
Segment Reconciling Items | Charges related to realized investment gains (losses), net | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (82) | (116) | (57) | (139) |
Segment Reconciling Items | Market experience updates | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (208) | 0 | (208) | 0 |
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] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 287 | (193) | 741 | (596) |
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] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (313) | 85 | (716) | 503 |
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (4) | (23) | (37) | (49) |
Segment Reconciling Items | Closed Block division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (21) | (31) | (40) | (40) |
Segment Reconciling Items | Other Divested and Run-off businesses | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 112 | $ (1,526) | $ 286 | $ (1,598) |
Segment Information (Reconcil_2
Segment Information (Reconciliation of Select Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 15,388 | $ 14,655 | $ 30,479 | $ 28,412 | |
Total Assets | 873,825 | 873,825 | $ 815,078 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 14,106 | 13,043 | 27,754 | 25,918 | |
Total Assets | 812,413 | 812,413 | 756,039 | ||
Operating Segments | Total PGIM division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 926 | 816 | 1,796 | 1,642 | |
Total Assets | 47,681 | 47,681 | 47,690 | ||
Operating Segments | Total PGIM division | PGIM | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 926 | 816 | 1,796 | 1,642 | |
Total Assets | 47,681 | 47,681 | 47,690 | ||
Operating Segments | Total U.S. Workplace Solutions division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,047 | 4,412 | 9,127 | 7,917 | |
Total Assets | 231,606 | 231,606 | 217,252 | ||
Operating Segments | Total U.S. Workplace Solutions division | Retirement | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,586 | 2,988 | 6,225 | 5,077 | |
Total Assets | 187,907 | 187,907 | 175,525 | ||
Operating Segments | Total U.S. Workplace Solutions division | Group Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,461 | 1,424 | 2,902 | 2,840 | |
Total Assets | 43,699 | 43,699 | 41,727 | ||
Operating Segments | Total U.S. Individual Solutions division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,796 | 2,717 | 5,513 | 5,394 | |
Total Assets | 275,465 | 275,465 | 251,638 | ||
Operating Segments | Total U.S. Individual Solutions division | Individual Annuities | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,288 | 1,266 | 2,523 | 2,518 | |
Total Assets | 184,220 | 184,220 | 167,899 | ||
Operating Segments | Total U.S. Individual Solutions division | Individual Life | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,508 | 1,451 | 2,990 | 2,876 | |
Total Assets | 91,245 | 91,245 | 83,739 | ||
Operating Segments | Total International Insurance division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,501 | 5,288 | 11,653 | 11,328 | |
Total Assets | 238,608 | 238,608 | 222,633 | ||
Operating Segments | Total International Insurance division | International Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,501 | 5,288 | 11,653 | 11,328 | |
Total Assets | 238,608 | 238,608 | 222,633 | ||
Operating Segments | Total Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (164) | (190) | (335) | (363) | |
Total Assets | 19,053 | 19,053 | 16,826 | ||
Operating Segments | Total Corporate and Other | Corporate and Other operations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (164) | (190) | (335) | (363) | |
Total Assets | 19,053 | 19,053 | 16,826 | ||
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (548) | 393 | (1,211) | 480 | |
Segment Reconciling Items | Charges related to realized investment gains (losses), net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (54) | (92) | (126) | (163) | |
Segment Reconciling Items | Market experience updates | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (7) | 0 | (7) | 0 | |
Segment Reconciling Items | Investment gains (losses) on assets supporting experience-rated contractholder liabilities, net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 287 | (193) | 741 | (596) | |
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (33) | (27) | (71) | (53) | |
Segment Reconciling Items | Closed Block division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,301 | 1,388 | 2,675 | 2,551 | |
Total Assets | 61,412 | 61,412 | $ 59,039 | ||
Segment Reconciling Items | Other Divested and Run-off businesses | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 336 | 143 | 724 | 275 | |
Intersegment Eliminations | Total PGIM division | PGIM | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 194 | $ 185 | $ 374 | $ 369 |
Segment Information Segment Inf
Segment Information Segment Information (Asset Management and Service Fees) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Asset management and service fees | $ 1,083 | $ 1,010 | $ 2,099 | $ 2,036 |
Asset-based management fees | ||||
Asset management and service fees | 872 | 856 | 1,715 | 1,717 |
Performance-based incentive fees | ||||
Asset management and service fees | 62 | 6 | 98 | 11 |
Other fees | ||||
Asset management and service fees | $ 149 | $ 148 | $ 286 | $ 308 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingent Liabilities [Line Items] | ||
Fair value of collateral supporting these assets | $ 633 | $ 614 |
Commitments | Commercial Mortgage Loans | ||
Commitments and Contingent Liabilities [Line Items] | ||
Total outstanding mortgage loan commitments | 2,293 | 3,299 |
Portion of commitment where prearrangement to sell to investor exists | 538 | 1,490 |
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) | 7,133 | 6,941 |
Expected to be funded from separate accounts | ||
Commitments and Contingent Liabilities [Line Items] | ||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 402 | 147 |
Indemnifications | Securities Lending and Securities Repurchase Transactions | ||
Commitments and Contingent Liabilities [Line Items] | ||
Indemnification provided to certain clients for securities lending and securities repurchase transactions | 6,520 | 5,399 |
Fair value of related collateral associated with above indemnifications | 6,650 | 5,503 |
Accrued liability associated with guarantee | 0 | 0 |
Indemnifications | Securities Repurchase Transactions | ||
Commitments and Contingent Liabilities [Line Items] | ||
Indemnification provided to certain clients for securities lending and securities repurchase transactions | 64 | |
Fair value of related collateral associated with above indemnifications | 63 | |
Indemnifications | Serviced Mortgage Loans | ||
Commitments and Contingent Liabilities [Line Items] | ||
Maximum exposure under indemnification agreements for mortgage loans serviced by the Company | 1,980 | 1,828 |
First-loss exposure portion of above | 584 | 543 |
Accrued liability associated with guarantee | 18 | 17 |
Guarantees of Asset Values | ||
Commitments and Contingent Liabilities [Line Items] | ||
Guaranteed value of third-parties’ assets | 80,337 | 79,215 |
Fair value of collateral supporting these assets | 81,338 | 77,897 |
Asset (liability) associated with guarantee, carried at fair value | 1 | 2 |
Other Guarantees | ||
Commitments and Contingent Liabilities [Line Items] | ||
Other guarantees where amount can be determined | 55 | 77 |
Accrued liability associated with guarantee | $ 0 | $ 0 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Narrative Excluding Litigation) (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Indemnifications | Securities Lending Transactions | |||
Commitments and Contingent Liabilities [Line Items] | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 102.00% | ||
Indemnifications | Securities Repurchase Transactions | |||
Commitments and Contingent Liabilities [Line Items] | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 95.00% | ||
Indemnifications | Serviced Mortgage Loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Mortgages subject to loss-sharing arrangements | $ 15,560 | $ 14,335 | |
Weighted-average debt service coverage ratio of mortgages subject to loss-sharing arrangements | 1.89 | 1.83 | |
Weighted-average loan-to-value ratio of mortgages subject to loss-sharing arrangements | 61.00% | 62.00% | |
Losses related to indemnifications that were settled | $ 0 | $ 0 | |
Indemnifications | Minimum | Serviced Mortgage Loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Percentage share of losses incurred on certain loans serviced | 2.00% | ||
Indemnifications | Maximum | Serviced Mortgage Loans | |||
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 | $ 12 | $ 13 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Litigation Narrative) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Loss Contingencies [Line Items] | |
Estimate of possible losses in excess of accruals (less than) for litigation and regulatory matters | $ 250 |
Uncategorized Items - form10q-2
Label | Element | Value | |
Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (14,000,000) | [1] |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (21,000,000) | [1] |
AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 7,000,000 | [1] |
Accounting Standards Update 2016-01 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 57,000,000 | |
Accounting Standards Update 2016-01 [Member] | Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 57,000,000 | |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 904,000,000 | |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (847,000,000) | |
Accounting Standard Update 2018-02 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | |
Accounting Standard Update 2018-02 [Member] | Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | |
Accounting Standard Update 2018-02 [Member] | Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,653,000,000) | |
Accounting Standard Update 2018-02 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,653,000,000 | |
[1] | (1) Includes the impact from the adoption of ASU 2017-08 and 2017-12. See Note 2. |