Document and Entity Information
Document and Entity Information - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
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 | 397 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 40,700,000,000 | ||
Common Class A | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, Par Value $.01 | ||
Trading Symbol | PRU | ||
Security Exchange Name | NYSE | ||
5.75% Junior Subordinated Notes | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.75% Junior Subordinated Notes | ||
Trading Symbol | PJH | ||
Security Exchange Name | NYSE | ||
5.70% Junior Subordinated Notes | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.70% Junior Subordinated Notes | ||
Trading Symbol | PRH | ||
Security Exchange Name | NYSE | ||
5.625% Junior Subordinated Notes | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.625% Junior Subordinated Notes | ||
Trading Symbol | PRS | ||
Security Exchange Name | NYSE |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2019 – $346,574; 2018 – $331,745) | [1] | $ 391,096 | $ 353,656 |
Fixed maturities, held-to-maturity, at amortized cost (fair value: 2019 – $2,302; 2018 – $2,372) | [1] | 1,933 | 2,013 |
Fixed maturities, trading, at fair value (amortized cost: 2019 – $3,917; 2018 – $3,392) | [1] | 3,884 | 3,243 |
Assets supporting experience-rated contractholder liabilities, at fair value | [1] | 21,597 | 21,254 |
Equity securities, at fair value (cost: 2019 – $5,560; 2018 – $5,219) | [1] | 7,522 | 6,238 |
Commercial mortgage and other loans (includes $228 and $763 measured at fair value under the fair value option as of December 31, 2019 and 2018, respectively) | [1] | 63,559 | 59,830 |
Policy Loans Receivable | 12,096 | 12,016 | |
Other invested assets (includes $5,646 and $5,524 measured at fair value as of December 31, 2019 and 2018, respectively) | [1] | 15,606 | 14,526 |
Short-term investments | 5,467 | 6,469 | |
Total investments | 522,760 | 479,245 | |
Cash and cash equivalents | [1] | 16,327 | 15,353 |
Accrued investment income | [1] | 3,330 | 3,318 |
Deferred policy acquisition costs | 19,912 | 20,058 | |
Value of business acquired | 1,110 | 1,850 | |
Other assets | [1] | 20,832 | 16,118 |
Separate account assets | 312,281 | 279,136 | |
TOTAL ASSETS | 896,552 | 815,078 | |
LIABILITIES | |||
Future policy benefits | 293,527 | 273,846 | |
Policyholders’ account balances | 152,110 | 150,338 | |
Policyholders’ dividends | 6,988 | 4,110 | |
Securities sold under agreements to repurchase | 9,681 | 9,950 | |
Cash collateral for loaned securities | 4,213 | 3,929 | |
Income taxes | 11,378 | 7,936 | |
Short-term debt | 1,933 | 2,451 | |
Long-term debt | 18,646 | 17,378 | |
Other liabilities | [1] | 20,802 | 16,018 |
Notes issued by consolidated variable interest entities (includes $800 and $595 measured at fair value under the fair value option as of December 31, 2019 and 2018, respectively) | [1] | 1,274 | 955 |
Separate account liabilities | 312,281 | 279,136 | |
Total liabilities | 832,833 | 766,047 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
EQUITY | |||
Preferred Stock ($.01 par value; 10,000,000 shares authorized; none issued) | 0 | 0 | |
Common Stock ($.01 par value; 1,500,000,000 shares authorized; 666,305,189 and 660,111,339 shares issued as of December 31, 2019 and 2018, respectively) | 6 | 6 | |
Additional paid-in capital | 25,532 | 24,828 | |
Common Stock held in treasury, at cost (267,472,781 and 249,398,887 shares as of December 31, 2019 and 2018, respectively) | (19,453) | (17,593) | |
Accumulated other comprehensive income (loss) | 24,039 | 10,906 | |
Retained earnings | 32,991 | 30,470 | |
Total Prudential Financial, Inc. equity | 63,115 | 48,617 | |
Noncontrolling interests | 604 | 414 | |
Total equity | 63,719 | 49,031 | |
TOTAL LIABILITIES AND EQUITY | $ 896,552 | $ 815,078 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Fixed maturities, available-for-sale, amortized cost | $ 346,574 | $ 331,745 | |
Fixed maturities, held to maturity, fair value | 2,302 | 2,372 | |
Fixed Maturities, Trading, Amortized Cost | 3,917 | 3,392 | |
Equity securities, at cost | 5,560 | 5,219 | |
Commercial mortgage and other loans | [1] | 63,559 | 59,830 |
Other invested assets, at fair value | 5,646 | 5,524 | |
Notes issued by consolidated VIEs | [1] | $ 1,274 | $ 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 | 666,305,189 | 660,111,339 | |
Common Stock held in treasury, at cost, shares | 267,472,781 | 249,398,887 | |
Fair value option | |||
Commercial mortgage and other loans | $ 228 | $ 763 | |
Notes issued by consolidated VIEs | $ 800 | $ 595 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||
Premiums | $ 34,202 | $ 35,779 | $ 32,091 |
Policy charges and fee income | 5,978 | 6,002 | 5,303 |
Net investment income | 17,585 | 16,176 | 16,435 |
Insurance Agency Management Fee | 4,239 | 4,100 | 4,127 |
Other income (loss) | 3,262 | (1,042) | 1,301 |
Realized investment gains (losses), net: | |||
Other-than-temporary impairments on fixed maturity securities | (351) | (279) | (289) |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income | 36 | 0 | 22 |
Other realized investment gains (losses), net | (144) | 2,256 | 699 |
Total realized investment gains (losses), net | (459) | 1,977 | 432 |
Total revenues | 64,807 | 62,992 | 59,689 |
BENEFITS AND EXPENSES | |||
Policyholders’ benefits | 36,820 | 39,404 | 33,794 |
Interest credited to policyholders’ account balances | 4,880 | 3,196 | 3,822 |
Dividends to policyholders | 2,274 | 1,336 | 2,091 |
Amortization of deferred policy acquisition costs | 2,332 | 2,273 | 1,580 |
General and administrative expenses | 13,416 | 11,949 | 11,915 |
Total benefits and expenses | 59,722 | 58,158 | 53,202 |
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 5,085 | 4,834 | 6,487 |
Total income tax expense (benefit) | 947 | 822 | (1,438) |
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 4,138 | 4,012 | 7,925 |
Equity in earnings of operating joint ventures, net of taxes | 100 | 76 | 49 |
NET INCOME (LOSS) | 4,238 | 4,088 | 7,974 |
Less: Income (loss) attributable to noncontrolling interests | 52 | 14 | 111 |
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | $ 4,186 | $ 4,074 | $ 7,863 |
Basic earnings per share-Common Stock: | |||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ 10.23 | $ 9.64 | $ 18.19 |
Diluted earnings per share-Common Stock: | |||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | 10.11 | 9.50 | 17.86 |
Dividends declared per share of Common Stock (in dollars per share) | $ 4 | $ 3.60 | $ 3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME (LOSS) | $ 4,238 | $ 4,088 | $ 7,974 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments for the period | 67 | (68) | 751 |
Net unrealized investment gains (losses) | 17,195 | (8,393) | 2,397 |
Defined benefit pension and postretirement unrecognized periodic benefit (cost) | (322) | (320) | 71 |
Total | 16,940 | (8,781) | 3,219 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 3,811 | (1,812) | 784 |
Other comprehensive income (loss), net of taxes | 13,129 | (6,969) | 2,435 |
Comprehensive income (loss) | 17,367 | (2,881) | 10,409 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 55 | 19 | 93 |
Comprehensive income (loss) attributable to Prudential Financial, Inc. | $ 17,312 | $ (2,900) | $ 10,316 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock Held in TreasuryCommon Stock | Accumulated Other Comprehensive Income (Loss) | Total Prudential Financial, Inc. Equity | Noncontrolling Interests |
Balance at Dec. 31, 2016 | $ 46,255 | $ 6 | $ 24,606 | $ 22,113 | $ (15,316) | $ 14,621 | $ 46,030 | $ 225 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common Stock acquired | (1,250) | (1,250) | (1,250) | |||||
Contributions from noncontrolling interests | 10 | 10 | ||||||
Distributions to noncontrolling interests | (50) | (50) | ||||||
Consolidations/(deconsolidations) of noncontrolling interests | (3) | (3) | ||||||
Stock-based compensation programs | 440 | 158 | 282 | 440 | ||||
Dividends declared on Common Stock | (1,300) | (1,300) | (1,300) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 7,974 | 7,863 | 7,863 | 111 | ||||
Other comprehensive income (loss), net of tax | 2,435 | 2,453 | 2,453 | (18) | ||||
Total comprehensive income (loss) | 10,409 | 10,316 | 93 | |||||
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 | (1,500) | 1,500 | 1,500 | |||||
Contributions from noncontrolling interests | 147 | 147 | ||||||
Distributions to noncontrolling interests | (27) | (27) | ||||||
Stock-based compensation programs | 250 | 59 | 191 | 250 | ||||
Dividends declared on Common Stock | (1,526) | (1,526) | (1,526) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 4,088 | 4,074 | 4,074 | 14 | ||||
Other comprehensive income (loss), net of tax | (6,969) | (6,974) | (6,974) | 5 | ||||
Total comprehensive income (loss) | (2,881) | (2,900) | 19 | |||||
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] | ||||||||
Cumulative effect of adoption | 9 | |||||||
Cumulative effect of adoption | ASU 2016-01 | (847) | |||||||
Common Stock acquired | (2,500) | 2,500 | 2,500 | |||||
Exchangeable Surplus Notes conversion | 502 | 502 | 502 | |||||
Assurance IQ acquisition | 454 | 79 | 375 | 454 | ||||
Contributions from noncontrolling interests | 208 | 208 | ||||||
Distributions to noncontrolling interests | (82) | (82) | ||||||
Consolidations/(deconsolidations) of noncontrolling interests | 9 | 9 | ||||||
Stock-based compensation programs | 388 | 123 | 265 | 388 | ||||
Dividends declared on Common Stock | (1,644) | (1,644) | (1,644) | |||||
Comprehensive income: | ||||||||
Net income (loss) | 4,238 | 4,186 | 4,186 | 52 | ||||
Other comprehensive income (loss), net of tax | 13,129 | 13,126 | 13,126 | 3 | ||||
Total comprehensive income (loss) | 17,367 | 17,312 | 55 | |||||
Balance at Dec. 31, 2019 | $ 63,719 | $ 6 | $ 25,532 | $ 32,991 | $ (19,453) | $ 24,039 | $ 63,115 | $ 604 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income (loss) | $ 4,238 | $ 4,088 | $ 7,974 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Realized investment (gains) losses, net | 459 | (1,977) | (432) | |||
Policy charges and fee income | (2,616) | (2,248) | (2,476) | |||
Interest credited to policyholders’ account balances | 4,880 | 3,196 | 3,822 | |||
Depreciation and amortization | 460 | 161 | 222 | |||
(Gains) losses on assets supporting experience-rated contractholder liabilities, net | (971) | 863 | (336) | |||
Change in: | ||||||
Deferred policy acquisition costs | (634) | (597) | (1,240) | |||
Future policy benefits and other insurance liabilities | 10,992 | 16,481 | 10,940 | |||
Income taxes | (339) | 49 | (1,619) | |||
Derivatives, net | 1,485 | 968 | (2,268) | |||
Other, net | 1,671 | [1] | 680 | [1] | (1,127) | [1] |
Cash flows from (used in) operating activities | 19,625 | [1] | 21,664 | [1] | 13,460 | [1] |
Proceeds from the sale/maturity/prepayment of: | ||||||
Fixed maturities, available-for-sale | 52,306 | 59,675 | 58,244 | |||
Fixed maturities, held-to-maturity | 100 | 94 | 155 | |||
Fixed maturities, trading | 363 | [1] | 623 | [1] | 1,406 | [1] |
Assets supporting experience-rated contractholder liabilities | 15,281 | [1] | 27,383 | [1] | 39,057 | [1] |
Equity securities | 2,708 | [1] | 3,771 | [1] | 4,718 | [1] |
Commercial mortgage and other loans | 6,525 | 6,474 | 6,076 | |||
Policy loans | 2,279 | 2,309 | 2,403 | |||
Other invested assets | 1,783 | [1] | 1,549 | [1] | 1,332 | [1] |
Short-term investments | 38,095 | [1] | 33,846 | [1] | 29,328 | [1] |
Payments for the purchase/origination of: | ||||||
Fixed maturities, available-for-sale | (64,570) | (77,234) | (68,667) | |||
Fixed maturities, held-to-maturity | 0 | (9) | 0 | |||
Fixed maturities, trading | (876) | [1] | (1,080) | [1] | (1,839) | [1] |
Assets supporting experience-rated contractholder liabilities | (14,613) | [1] | (27,315) | [1] | (39,031) | [1] |
Equity securities | (2,813) | [1] | (3,254) | [1] | (2,990) | [1] |
Commercial mortgage and other loans | (10,677) | (10,328) | (8,857) | |||
Policy loans | (1,931) | (1,970) | (1,929) | |||
Other invested assets | (2,557) | (2,664) | (1,780) | |||
Short-term investments | (37,286) | [1] | (33,336) | [1] | (28,405) | [1] |
Acquisitions, net of cash acquired | (1,755) | 0 | (64) | |||
Derivatives, net | 1,047 | 26 | (391) | |||
Other, net | (437) | [1] | (188) | [1] | (723) | [1] |
Cash flows from (used in) investing activities | (17,028) | [1] | (21,628) | [1] | (11,957) | [1] |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Policyholders’ account deposits | 27,485 | 28,791 | 26,462 | |||
Policyholders’ account withdrawals | (26,662) | (27,287) | (25,657) | |||
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 16 | 1,125 | 815 | |||
Cash dividends paid on Common Stock | (1,641) | (1,521) | (1,296) | |||
Net change in financing arrangements (maturities 90 days or less) | (181) | 199 | 38 | |||
Common Stock acquired | (2,500) | (1,500) | (1,250) | |||
Common Stock reissued for exercise of stock options | 133 | 132 | 246 | |||
Proceeds from the issuance of debt (maturities longer than 90 days) | 2,993 | 2,934 | 1,225 | |||
Repayments of debt (maturities longer than 90 days) | (1,429) | (1,810) | (1,827) | |||
Proceeds from notes issued by consolidated VIEs | 971 | 0 | 0 | |||
Repayments of notes issued by consolidated VIEs | (638) | 0 | 0 | |||
Other, net | (181) | (282) | (14) | |||
Cash flows from (used in) financing activities | (1,634) | 781 | (1,258) | |||
Effect of foreign exchange rate changes on cash balances | 16 | 142 | 110 | |||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS | 979 | 959 | 355 | |||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF YEAR | 15,495 | 14,536 | 14,181 | |||
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF YEAR | 16,474 | 15,495 | 14,536 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||
Income taxes paid, net of refunds | 1,348 | 760 | 185 | |||
Interest paid | 1,521 | 1,443 | 1,248 | |||
NON-CASH TRANSACTIONS DURING THE YEAR | ||||||
Treasury Stock shares issued for stock-based compensation programs | 197 | 138 | 104 | |||
Conversion of surplus notes into Common Stock | 502 | 0 | 0 | |||
Treasury stock shares issued | 454 | |||||
RECONCILIATION TO STATEMENT OF FINANCIAL POSITION | ||||||
Cash and cash equivalents | 16,327 | [2] | 15,353 | [2] | 14,490 | |
Restricted cash and restricted cash equivalents (included in Other assets) | 147 | 142 | 46 | |||
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 16,474 | 15,495 | 14,536 | |||
Pension Risk Transfer | ||||||
NON-CASH TRANSACTIONS DURING THE YEAR | ||||||
Assets received, excluding cash and cash equivalents | 3,166 | 816 | 2,726 | |||
Liabilities assumed | 4,332 | 8,395 | 6,155 | |||
Net cash received | 1,166 | 7,579 | 3,429 | |||
Acquisition | ||||||
NON-CASH TRANSACTIONS DURING THE YEAR | ||||||
Assets acquired, excluding cash and cash equivalents | 2,425 | 0 | 196 | |||
Liabilities assumed | 216 | 0 | 132 | |||
Treasury stock shares issued | 454 | 0 | 0 | |||
Net cash paid on acquisition | $ 1,755 | $ 0 | $ 64 | |||
[1] | ||||||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Business and Basis of Presentat
Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Financial, Inc. (“Prudential Financial” or “PFI”) 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 PGIM (the Company’s global investment management business), the U.S. Businesses (consisting of the U.S. Workplace Solutions, U.S. Individual Solutions, and Assurance IQ divisions), the International Businesses, the Closed Block division, and the Company’s Corporate and Other operations. The U.S. Workplace Solutions division consists of the Retirement and Group Insurance businesses, the U.S. Individual Solutions division consists of the Individual Annuities and Individual Life businesses, and the Assurance IQ division consists of the Assurance IQ business. In October 2019, the Company completed the acquisition of Assurance IQ, Inc. (“Assurance IQ”), a leading consumer solutions platform that offers a range of solutions that help meet consumers’ financial needs. 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. 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. See Note 22 to the Consolidated Financial Statements for revenues, income and loss, and total assets by segment. Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and minority-owned entities such as limited partnerships in which the Company is the general partner and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. See Note 4 for more information on the Company’s consolidated variable interest entities. Intercompany balances and transactions have been eliminated. 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; fair value of embedded derivative instruments associated with the index-linked features of certain universal life and fixed annuity products; 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. Acquisitions On October 10, 2019, the Company completed its acquisition of Assurance IQ as discussed above. Assurance IQ is a wholly-owned subsidiary of the Company and the results of the Assurance IQ business are reported as a separate segment of our U.S. Businesses. The total purchase consideration included $2,212 million paid at closing, and $100 million of contingent consideration (see “ Contingent Consideration Liability ” below). The amount paid at closing was comprised of $1,758 million in cash and $454 million in shares of restricted Prudential Financial Common Stock and other equity awards. In addition to the purchase consideration, the Company also granted approximately $160 million of cash and equity awards to Assurance IQ employees which are recognized as compensation expense over their requisite service periods. See Note 21 for further details on the equity awards issued as part of the transaction. The contingent consideration as well as additional compensation awards are payable in 2023 in a mix of approximately 25% cash and 75% Prudential Financial Common Stock, contingent upon Assurance IQ’s achievement of certain targets for gross revenues net of associated selling expenses (“Variable Profits”) over the period from January 1, 2020 through December 31, 2022 as follows: • If Variable Profits are less than $900 million , no additional amount is payable. • If Variable Profits are greater than $1,300 million , an additional amount of $1,150 million is payable. • If Variable Profits are greater than $900 million but less than or equal to $1,300 million , an additional amount is payable equal to the product of (i) the quotient of (A) an amount equal to (1) Variable Profits achieved minus (2) $900 million divided by (B) $400 million and (ii) $1,150 million . Payment of the additional amount may be accelerated if the Company violates certain provisions of the merger agreement requiring it to take or refrain from taking certain actions, including with respect to the management and operation of Assurance IQ. Pursuant to the merger agreement, the number of shares of Prudential Financial Common Stock issued at closing was determined based on a price per share of $83.71 , which is equal to the weighted average price of Prudential Financial Common Stock for the 15 trading days before, and 15 trading days beginning on, September 4, 2019, the date of the merger agreement. The foregoing $454 million in shares of restricted Prudential Financial Common Stock and equity awards paid at closing was based on the $87.67 closing price per share of Prudential Financial Common Stock on the closing date. Net Assets Acquired The assets acquired and liabilities assumed have been included in the Consolidated Financial Statements as of the acquisition date. Total assets acquired included identified intangible assets of $191 million . As a result of the acquisition, the Company recognized an asset for goodwill determined as the excess of the purchase price over the net fair value of the assets acquired and liabilities assumed that amounted to $2,128 million , which is fully deductible for tax purposes. The value of the components within goodwill include expected revenue and cost synergies, the business model, technology capabilities, new customers, and the assembled workforce and key personnel. See Note 2 and Note 10 for additional information regarding goodwill. The valuation of the assets acquired and liabilities assumed is preliminary and subject to revision as more detailed analyses are completed. If additional information about the fair value of assets acquired and liabilities assumed becomes available, the Company may further revise the preliminary purchase price allocation as soon as practical, but no later than one year from the acquisition date. Contingent Consideration Liability The contingent consideration liability referred to above is reported at fair value. Fair value is determined based on the present value of expected award payments under the arrangement described above, using an internally developed model based on a number of assumptions, including market participant assumptions of future Variable Profits and the future price of Prudential Financial Common Stock (see Note 6). The fair value of the liability is updated each reporting period, with changes in fair value reported within “Other income”. The fair value of the contingent consideration liability was $105 million as of December 31, 2019. The stock-based component of contingent consideration impacts the share count for purposes of calculating the Company’s diluted earnings per share when Assurance IQ’s actual Variable Profits achieved as of the end of the reporting period is in excess of $900 million , as if the contingent consideration performance period ended on the applicable reporting date. The number of shares issued as part of the contingent consideration payable in 2023 will be based on a $83.71 price per share. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS ASSETS Fixed maturities, available-for-sale, at fair value and Fixed maturities, held-to-maturity, at amortized cost are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 6 for additional information regarding the determination of fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, future policy benefits, policyholders’ account balances and policyholders’ dividends that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Fixed maturities that the Company has both the positive intent and ability to hold to maturity are carried at amortized cost and classified as “held-to-maturity.” The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income.” For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income (loss) (“OCI”). For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to “Net investment income” in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA, or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Fixed maturities, trading, at fair value consists of fixed maturities with embedded features and assets contained within consolidated variable interest entities. Realized and unrealized gains and losses on these investments are reported in “Other income (loss),” and interest and dividend income from these investments is reported in “Net investment income.” Assets supporting experience-rated contractholder liabilities, at fair value includes invested assets that consist of fixed maturities, equity securities, short-term investments and cash equivalents, that support certain products included in the Retirement and International Businesses segments which are experience-rated, meaning that the investment results associated with these products are expected to ultimately accrue to contractholders. Realized and unrealized gains and losses for these investments are reported in “Other income (loss).” Interest and dividend income from these investments is reported in “Net investment income.” Equity securities, at fair value is comprised of common stock, mutual fund shares and non-redeemable preferred stock, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income (loss),” and dividend income is reported in “Net investment income” on the ex-dividend date. Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available-for-sale” are reported in net income within “Other income (loss)” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available-for-sale” were reported in AOCI. The impact of this standard resulted in an increase to retained earnings of $904 million, a reduction to AOCI of $847 million, and an increase to equity of $57 million upon adoption on January 1, 2018. Commercial mortgage and other loans consists of commercial mortgage loans, agricultural property loans, loans backed by residential properties, as well as certain other collateralized and uncollateralized loans. Loans backed by residential properties primarily include recourse loans held by the Company’s international insurance operations. Uncollateralized loans primarily represent reverse dual currency loans and corporate loans held by the Company’s international insurance operations. Commercial mortgage and other loans originated and held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company carries certain commercial mortgage loans originated within the Company’s commercial mortgage operations at fair value where the fair value option has been elected. Loans held for sale where the Company has not elected the fair value option are carried at the lower of cost or fair value. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income.” Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans as well as loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, and estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. Loans backed by residential properties and uncollateralized loans are also reviewed periodically. Each loan is assigned an internal or external credit rating. Internal credit ratings take into consideration various factors including financial ratios and qualitative assessments based on non-financial information. In cases where there are personal or third-party guarantors, the credit quality of the guarantor is also reviewed. These factors are used in developing the allowance for losses. Based on the diversity of the loans in these categories and their immateriality, the Company has not disclosed the credit quality indicators related to these loans in Note 3. For those loans not reported at fair value, the allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans, the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios consider the current credit composition of the portfolio based on an internal quality rating, as described above. The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses and changes in value for loans accounted for under the fair value option. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write-down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a troubled debt restructuring. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a troubled debt restructuring. Based on the Company’s credit review process described above, these loans generally would have been deemed impaired prior to the troubled debt restructuring, and specific allowances for losses would have been established prior to the determination that a troubled debt restructuring has occurred. In a troubled debt restructuring where the Company receives assets in full satisfaction of the debt, any specific valuation allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. Additionally, the loan continues to be subject to the credit review process noted above. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Other invested assets consists of the Company’s non-coupon investments in limited partnerships and limited liability companies (“LPs/LLCs”), other than operating joint ventures, as well as wholly-owned investment real estate, derivative assets and other investments. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income (loss).” The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three-month lag. The Company consolidates LPs/LLCs in certain other instances where it is deemed to exercise control, or is considered the primary beneficiary of a variable interest entity. See Note 4 for additional information about VIEs. The Company’s wholly-owned investment real estate consists of real estate which the Company has the intent to hold for the production of income as well as real estate held for sale. Real estate which the Company has the intent to hold for the production of income is carried at depreciated cost less any write-downs to fair value for impairment losses and is reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Real estate held for sale is carried at the lower of depreciated cost or fair value less estimated selling costs and is not further depreciated once classified as such. An impairment loss is recognized when the carrying value of the investment real estate exceeds the estimated undiscounted future cash flows (excluding interest charges) from the investment. At that time, the carrying value of the investment real estate is written down to fair value. Decreases in the carrying value of investment real estate held for the production of income due to OTTI are recorded in “Realized investment gains (losses), net.” Depreciation on real estate held for the production of income is computed using the straight-line method over the estimated useful lives of the properties and is included in “Net investment income.” Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased, other than those debt instruments meeting this definition that are included in “Assets supporting experience-rated contractholder liabilities, at fair value.” These investments are generally carried at fair value or amortized cost that approximates fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government-sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method with the exception of some of the Company’s International Businesses portfolios, where the average cost method is used. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, fair value changes on commercial mortgage loans carried at fair value, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly to identify OTTI in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. An OTTI is recognized in earnings for a debt security in an unrealized loss position when either (1) the Company has the intent to sell the debt security or (2) it is more likely than not the Company will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an OTTI is recognized. In addition to the above-mentioned circumstances, the Company also recognizes an OTTI in earnings when a non-functional currency denominated security in an unrealized loss position due to currency exchange rates is not expected to recover in value before maturity. When an OTTI of a debt security has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria or the unrealized losses due to changes in foreign currency exchange rates are not expected to be recovered before maturity, the OTTI recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For OTTI of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss).” Unrealized gains or losses on securities for which an OTTI has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an OTTI recognized in “Other comprehensive income (loss)” and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flows on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, VOBA, DSI, certain future policy benefits, policyholders’ account balances, policyholders’ dividends and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Assets supporting experience-rated contractholder liabilities, at fair value,” and receivables related to securities purchased under agreements to resell (see also “ Securities sold under agreements to repurchase ” below). These assets are generally carried at fair value or amortized cost which approximates fair value. Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received. Deferred policy acquisition costs are costs directly related to the successful acquisition of new and renewal insurance and annuity business that have been deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of DAC,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. For traditional participating life insurance which are included in the Closed Block, DAC is amortized over the expected life of the contracts in proportion to gross margins based on historical and anticipated future experience, which is evaluated regularly. The effect of changes in estimated gross margins on unamortized DAC is reflected in the period such estimated gross margins are revised on a retrospective basis. DAC related to non-participating traditional individual life insurance and longevity reinsurance contracts is amortized in proportion to gross premiums. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of variable annuity contracts, and index-linked crediting features of indexed universal life and fixed indexed annuity contracts and related hedging activities. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The Company regularly evaluates and adjusts DAC balances with a corresponding charge or credit to current period earnings, representing a cumulative adjustment to all prior periods’ amortization, for the impact of actual gross profits and changes in the Company’s projections of estimated future gross profits. Adjustments to DAC balances include: (i) annual review of assumptions that reflect the comprehensive review of the assumptions used in estimating gross profits for future periods, (ii) quarterly adjustments for current period experience (also referred to as “experience true-up” adjustments) that reflect the impact of differences between actual gross profits for a given period and the previously estimated expected gross profits for that period, and (iii) quarterly adjustments for market performance (also referred to as “experience unlocking”) that reflect the impact of changes to the Company’s estimate of total gross profits to reflect actual fund performance and market conditions. For group annuity contracts (other than single premium group annuities), acquisition costs are generally deferred and amortized over the expected life of the contracts in proportion to gross profits. For group corporate-, bank- and trust-owned life insurance contracts, acquisition costs are generally deferred and amortized in proportion to lives insured. For single premium immediate annuities with life contingencies, single premium group annuities, including non-participating group annuity contracts, and single premium structured settlements with life contingencies, all acquisition costs are charged to expense immediately because generally all premiums are received at the inception of the contract. For funding agreement notes contracts, single premium structured settlement contracts without life contingencies, and single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. For other group life and disability insurance contracts and guaranteed investment contracts (“GICs”), acquisition costs are expensed as incurred. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 7 for additional information regarding DAC. Value of business acquired represents identifiable intangible assets to which a portion of the purchase price in a business acquisition is attributed under the application of purchase accounting. VOBA represents an adjustment to the stated value of in-force insurance contract liabilities to present them at fair value, determined as of the acquisition date. VOBA balances are subject to recoverability testing, in the manner in which they were acquired. The Company has established a VOBA asset primarily for its acquired life insurance products, accident and health products with fixed benefits, deferred annuity con |
Investments
Investments | 12 Months Ended |
Dec. 31, 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: December 31, 2019 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 $ 30,625 $ 5,195 $ 161 $ 35,659 $ 0 Obligations of U.S. states and their political subdivisions 10,068 1,437 8 11,497 0 Foreign government bonds 98,356 20,761 63 119,054 (34 ) U.S. public corporate securities 87,566 11,030 257 98,339 (6 ) U.S. private corporate securities(1) 34,410 2,243 120 36,533 0 Foreign public corporate securities 26,841 3,054 70 29,825 (1 ) Foreign private corporate securities 27,619 1,201 580 28,240 0 Asset-backed securities(2) 13,067 147 40 13,174 (77 ) Commercial mortgage-backed securities 14,978 610 14 15,574 0 Residential mortgage-backed securities(3) 3,044 159 2 3,201 (1 ) Total fixed maturities, available-for-sale(1) $ 346,574 $ 45,837 $ 1,315 $ 391,096 $ (119 ) December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 891 $ 282 $ 0 $ 1,173 Foreign public corporate securities 649 64 0 713 Foreign private corporate securities 83 2 0 85 Residential mortgage-backed securities(3) 310 21 0 331 Total fixed maturities, held-to-maturity(5) $ 1,933 $ 369 $ 0 $ 2,302 __________ (1) Excludes notes with amortized cost of $4,751 million (fair value, $4,757 million ), which have been offset with the associated debt under a netting agreement. (2) Includes collateralized loan obligations, auto loans, education loans, home equity 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 $362 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 $4,998 million (fair value, $5,401 million ), which have been offset with the associated debt 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 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 debt 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 debt 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: December 31, 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 $ 4,950 $ 161 $ 267 $ 0 $ 5,217 $ 161 Obligations of U.S. states and their political subdivisions 273 8 0 0 273 8 Foreign government bonds 2,332 60 126 3 2,458 63 U.S. public corporate securities 3,944 85 2,203 172 6,147 257 U.S. private corporate securities 2,283 44 1,563 76 3,846 120 Foreign public corporate securities 1,271 23 496 47 1,767 70 Foreign private corporate securities 1,466 33 5,666 547 7,132 580 Asset-backed securities 3,979 12 4,433 28 8,412 40 Commercial mortgage-backed securities 1,193 10 164 4 1,357 14 Residential mortgage-backed securities 207 1 88 1 295 2 Total $ 21,898 $ 437 $ 15,006 $ 878 $ 36,904 $ 1,315 __________ (1) As of December 31, 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 December 31, 2019 and 2018 , the gross unrealized losses on fixed maturity securities were composed of $973 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 $342 million and $1,000 million , respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2019 , the $878 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the energy, consumer non-cyclical and finance 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, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either December 31, 2019 or 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 December 31, 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: December 31, 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 $ 12,287 $ 12,816 $ 29 $ 29 Due after one year through five years 51,942 55,160 114 116 Due after five years through ten years 68,965 75,506 592 657 Due after ten years(1) 182,291 215,665 888 1,169 Asset-backed securities 13,067 13,174 0 0 Commercial mortgage-backed securities 14,978 15,574 0 0 Residential mortgage-backed securities 3,044 3,201 310 331 Total $ 346,574 $ 391,096 $ 1,933 $ 2,302 __________ (1) Excludes available-for-sale notes with amortized cost of $4,751 million (fair value, $4,757 million ) and held-to-maturity notes with amortized cost of $4,998 million (fair value, $5,401 million ), which have been offset with the associated debt 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: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 32,283 $ 38,230 $ 34,002 Proceeds from maturities/prepayments 20,036 21,207 24,460 Gross investment gains from sales and maturities 1,715 1,412 1,548 Gross investment losses from sales and maturities (434 ) (905 ) (700 ) OTTI recognized in earnings(2) (315 ) (279 ) (267 ) Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(3) $ 99 $ 94 $ 153 __________ (1) Includes $13 million , $(238) million and $218 million of non-cash related proceeds due to the timing of trade settlements for the years ended December 31, 2019 , 2018 and 2017 , 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 less than $(1) million , less than $(1) million and $(2) million of non-cash related proceeds due to the timing of trade settlements for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated: Years Ended December 31, 2019 2018 (in millions) Credit loss impairments: Balance in OCI, beginning of period $ 140 $ 319 New credit loss impairments 61 1 Additional credit loss impairments on securities previously impaired 12 0 Increases due to the passage of time on previously recorded credit losses 6 10 Reductions for securities which matured, paid down, prepaid or were sold during the period (44 ) (162 ) Reductions for securities impaired to fair value during the period(1) (12 ) (24 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (4 ) (4 ) Balance in OCI, end of period $ 159 $ 140 __________ (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: December 31, 2019 December 31, 2018 Amortized Cost or Cost Fair Value Amortized Cost or Cost Fair Value (in millions) Short-term investments and cash equivalents $ 277 $ 277 $ 215 $ 215 Fixed maturities: Corporate securities 13,143 13,603 13,258 13,119 Commercial mortgage-backed securities 1,845 1,896 2,346 2,324 Residential mortgage-backed securities(1) 1,134 1,158 828 811 Asset-backed securities(2) 1,639 1,662 1,649 1,665 Foreign government bonds 802 814 1,087 1,083 U.S. government authorities and agencies and obligations of U.S. states 341 397 538 577 Total fixed maturities(3) 18,904 19,530 19,706 19,579 Equity securities 1,465 1,790 1,378 1,460 Total assets supporting experience-rated contractholder liabilities(4) $ 20,646 $ 21,597 $ 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, home equity and other asset types. Collateralized loan obligations at fair value were $1,060 million and $1,028 million as of December 31, 2019 and 2018 , respectively, all of which were rated AAA. (3) As a percentage of amortized cost, 94% and 93% of the portfolio was considered high or highest quality based on NAIC or equivalent ratings, as of December 31, 2019 and 2018 , respectively. (4) As a percentage of amortized cost, 77% and 78% of the portfolio consisted of public securities as of December 31, 2019 and 2018 , respectively. 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 $996 million , $(778) million and $300 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss),” was $943 million and $(1,157) million during the years ended December 31, 2019 and 2018 , respectively. The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other comprehensive income (loss),” was $(494) million during the year ended December 31, 2017 . 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: December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 74,118 $ 89,546 $ 71,952 $ 84,461 Fixed maturities, held-to-maturity 869 1,143 864 1,127 Fixed maturities, trading 23 23 22 22 Assets supporting experience-rated contractholder liabilities 653 664 691 697 Total $ 75,663 $ 91,376 $ 73,529 $ 86,307 December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 10,823 $ 13,322 $ 10,339 $ 12,586 Assets supporting experience-rated contractholder liabilities 15 16 15 15 Total $ 10,838 $ 13,338 $ 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: December 31, 2019 December 31, 2018 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 13,462 21.4 % $ 13,280 22.4 % Retail 8,379 13.3 8,639 14.6 Apartments/Multi-Family 17,348 27.6 16,538 28.0 Industrial 13,226 21.1 11,574 19.6 Hospitality 2,415 3.9 1,931 3.3 Other 4,533 7.2 3,846 6.5 Total commercial mortgage loans 59,363 94.5 55,808 94.4 Agricultural property loans 3,472 5.5 3,316 5.6 Total commercial mortgage and agricultural property loans by property type 62,835 100.0 % 59,124 100.0 % Allowance for credit losses (117 ) (123 ) Total net commercial mortgage and agricultural property loans by property type 62,718 59,001 Other loans: Uncollateralized loans 656 660 Residential property loans 124 157 Other collateralized loans 65 17 Total other loans 845 834 Allowance for credit losses (4 ) (5 ) Total net other loans 841 829 Total commercial mortgage and other loans(1) $ 63,559 $ 59,830 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of December 31, 2019 and 2018 , the net carrying value of these loans was $228 million and $763 million , respectively. As of December 31, 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 ( 9% ) and New York ( 8% )) and included loans secured by properties in Europe ( 7% ), Australia ( 1% ) and Asia ( 1% ). The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Balance at December 31, 2016 $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 Addition to (release of) allowance for credit losses 2 1 (1 ) 0 (1 ) 1 Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 0 0 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 (5 ) 0 0 0 (1 ) (6 ) Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 0 0 Balance at December 31, 2019 $ 114 $ 3 $ 0 $ 0 $ 4 $ 121 The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated: December 31, 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 $ 7 $ 0 $ 0 $ 0 $ 0 $ 7 Collectively evaluated for impairment 107 3 0 0 4 114 Total ending balance(1) $ 114 $ 3 $ 0 $ 0 $ 4 $ 121 Recorded investment(2): Individually evaluated for impairment $ 65 $ 15 $ 0 $ 0 $ 0 $ 80 Collectively evaluated for impairment 59,298 3,457 124 65 656 63,600 Total ending balance(1) $ 59,363 $ 3,472 $ 124 $ 65 $ 656 $ 63,680 __________ (1) As of December 31, 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 December 31, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 31,027 $ 701 $ 217 $ 31,945 60%-69.99% 17,090 1,145 42 18,277 70%-79.99% 8,020 719 28 8,767 80% or greater 209 143 22 374 Total commercial mortgage loans $ 56,346 $ 2,708 $ 309 $ 59,363 Agricultural property loans December 31, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 3,289 $ 57 $ 14 $ 3,360 60%-69.99% 112 0 0 112 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,401 $ 57 $ 14 $ 3,472 Total commercial mortgage and agricultural property loans December 31, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 34,316 $ 758 $ 231 $ 35,305 60%-69.99% 17,202 1,145 42 18,389 70%-79.99% 8,020 719 28 8,767 80% or greater 209 143 22 374 Total commercial mortgage and agricultural property loans $ 59,747 $ 2,765 $ 323 $ 62,835 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: December 31, 2019 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Loans Non-Accrual Status(2) (in millions) Commercial mortgage loans $ 59,363 $ 0 $ 0 $ 0 $ 0 $ 59,363 $ 44 Agricultural property loans 3,458 1 0 13 14 3,472 13 Residential property loans 121 1 0 2 3 124 2 Other collateralized loans 65 0 0 0 0 65 0 Uncollateralized loans 656 0 0 0 0 656 0 Total $ 63,663 $ 2 $ 0 $ 15 $ 17 $ 63,680 $ 59 __________ (1) As of December 31, 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. 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 Loans Non-Accrual Status(2) (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. Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: December 31, 2019 2018 (in millions) LPs/LLCs: Equity method: Private equity $ 3,625 $ 3,182 Hedge funds 1,947 1,337 Real estate-related 1,372 1,207 Subtotal equity method 6,944 5,726 Fair value: Private equity 1,705 1,684 Hedge funds 2,172 2,135 Real estate-related 336 296 Subtotal fair value 4,213 4,115 Total LPs/LLCs 11,157 9,841 Real estate held through direct ownership(1) 2,388 2,466 Derivative instruments 877 1,155 Other(2) 1,184 1,064 Total other invested assets $ 15,606 $ 14,526 __________ (1) As of December 31, 2019 and 2018 , real estate held through direct ownership had mortgage debt of $537 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 17. In certain investment structures, the Company’s investment management business invests with other co-investors in an investment fund referred to as a feeder fund. In these structures, the invested capital of several feeder funds is pooled together and used to purchase ownership interests in another fund, referred to as a master fund. The master fund utilizes this invested capital and, in certain cases, other debt financing, to purchase various classes of assets on behalf of its investors. Specialized industry accounting for investment companies calls for the feeder fund to reflect its investment in the master fund as a single net asset equal to its proportionate share of the net assets of the master fund, regardless of its level of interest in the master fund. In cases where the Company consolidates the feeder fund, it retains the feeder fund’s net asset presentation and reports the consolidated feeder fund’s proportionate share of the net assets of the master fund in “Other invested assets,” with any unaffiliated investors’ non-controlling interest in the feeder fund reported in “Other liabilities” or “Noncontrolling interests.” The consolidated feeder funds’ investments in these master funds, reflected on this net asset basis, totaled $428 million and $349 million as of December 31, 2019 and 2018 , respectively. There was $230 million and $199 million of unaffiliated interest in the consolidated feeder funds as of December 31, 2019 and 2018 , respectively, and the master funds had gross assets of $89,313 million and $122,376 million , respectively, and gross liabilities of $86,471 million and $119,697 million , respectively, which are not included on the Company’s balance sheet. Equity Method Investments The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 9. Changes between periods in the tables below reflect changes in the activities within the operating joint ventures and LPs/LLCs, as well as changes in the Company’s level of investment in such entities. December 31, 2019 2018 (in millions) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 313,828 $ 78,546 Total liabilities(2) $ 19,274 $ 8,293 Partners’ capital 294,554 70,253 Total liabilities and partners’ capital $ 313,828 $ 78,546 Total liabilities and partners’ capital included above $ 7,438 $ 6,265 Equity in LP/LLC interests not included above 814 790 Carrying value $ 8,252 $ 7,055 __________ (1) Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets. (2) Amount represents gross liabilities of each fund where the Company has a significant investment. These liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities. Years Ended December 31, 2019 2018 2017 (in millions) STATEMENTS OF OPERATIONS Total revenue(1) $ 11,430 $ 6,264 $ 6,392 Total expenses(2) (5,800 ) (3,222 ) (2,300 ) Net earnings (losses) $ 5,630 $ 3,042 $ 4,092 Equity in net earnings (losses) included above $ 525 $ 233 $ 409 Equity in net earnings (losses) of LP/LLC interests not included above 11 14 123 Total equity in net earnings (losses) $ 536 $ 247 $ 532 __________ (1) Amount represents gross revenue of each fund where the Company has a significant investment. This revenue consists of income from investments in real estate, investments in securities and other income. (2) Amount represents gross expenses of each fund where the Company has a significant investment. These expenses consist primarily of interest expense, investment management fees, salary expenses and other expenses. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities, available-for-sale(1) $ 12,644 $ 11,989 $ 11,482 Fixed maturities, held-to-maturity(1) 232 226 215 Fixed maturities, trading 149 143 163 Assets supporting experience-rated contractholder liabilities, at fair value 731 722 736 Equity securities, at fair value 160 164 398 Commercial mortgage and other loans 2,584 2,352 2,267 Policy loans 619 622 617 Other invested assets 1,005 519 1,117 Short-term investments and cash equivalents 453 345 203 Gross investment income 18,577 17,082 17,198 Less: investment expenses (992 ) (906 ) (763 ) Net investment income $ 17,585 $ 16,176 $ 16,435 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line items as related surplus notes, as conditions are met for right to offset. The carrying value of non-income producing assets included $204 million in available-for-sale fixed maturities; $27 million in assets supporting experience-rated contractholder liabilities and $1 million in investment real estate, as of December 31, 2019 . Non-income producing assets represent investments that had not produced income for the twelve months preceding December 31, 2019 . Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities(1) $ 966 $ 228 $ 581 Equity securities(2) 0 0 1,066 Commercial mortgage and other loans 44 49 70 Investment real estate 78 84 12 LPs/LLCs (38 ) 17 (23 ) Derivatives (1,513 ) 1,597 (1,275 ) Other 4 2 1 Realized investment gains (losses), net $ (459 ) $ 1,977 $ 432 __________ (1) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading. (2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within “Other income (loss).” Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: December 31, 2019 2018 2017 (in millions) Fixed maturity securities, available-for-sale—with OTTI $ 243 $ 190 $ 286 Fixed maturity securities, available-for-sale—all other 44,279 21,721 34,109 Equity securities, available-for-sale(1) 0 0 2,027 Derivatives designated as cash flow hedges(2) 832 811 (39 ) Other investments(3) (15 ) (2 ) 15 Net unrealized gains (losses) on investments $ 45,339 $ 22,720 $ 36,398 __________ (1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income (loss).” (2) For more information on cash flow hedges, see Note 5. (3) As of December 31, 2019 , there were no Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 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 VIEs. A VIE is an entity that either (1) has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control activities of the entity, the obligation to absorb the entity’s expected losses and the right to receive the entity’s expected residual returns) or (2) lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of the VIE. The Company is the primary beneficiary if the Company has (1) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and (2) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant. If the Company determines that it is the VIE’s primary beneficiary, it consolidates the VIE. Consolidated Variable Interest Entities The Company is the investment manager of certain asset-backed investment vehicles, commonly referred to as CLOs, and certain other vehicles for which the Company earns fee income for investment management services. The Company may sell or syndicate investments through these vehicles, principally as part of the strategic investing activity of the Company’s investment management businesses. Additionally, the Company may invest in securities issued by these vehicles. The Company is also the investment manager of certain investment structures whose beneficial interests are wholly-owned by consolidated subsidiaries. The Company has analyzed these relationships and determined that for certain CLOs and other investment structures it is the primary beneficiary and consolidates these entities. This analysis includes a review of (1) the Company’s rights and responsibilities as investment manager and (2) variable interests (if any) held by the Company. The assets of these VIEs are restricted and must be used first to settle liabilities of the VIE. The Company is not required to provide, and has not provided, material financial or other support to any of these VIEs. Additionally, the Company is the primary beneficiary of certain VIEs in which the Company has invested, as part of its investment activities, but for which it is not the investment manager. These include structured investments issued by a VIE that manages yen-denominated investments coupled with cross-currency coupon swap agreements thereby creating synthetic dual currency investments. The Company’s involvement in the structuring of these investments combined with its economic interest indicates that the Company is the primary beneficiary. The Company has not provided material financial support or other support that was not contractually required to these VIEs. The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. The liabilities primarily comprise obligations under debt instruments issued by the VIEs. 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) December 31, December 31, 2019 2018 2019 2018 (in millions) Fixed maturities, available-for-sale $ 104 $ 73 $ 285 $ 282 Fixed maturities, held-to-maturity 83 95 839 831 Fixed maturities, trading 1,112 1,076 0 0 Assets supporting experience-rated contractholder liabilities 0 0 4 8 Equity securities 47 41 0 0 Commercial mortgage and other loans 883 730 0 0 Other invested assets 2,199 1,526 89 77 Cash and cash equivalents 166 131 0 0 Accrued investment income 4 5 4 4 Other assets 450 463 689 721 Total assets of consolidated VIEs $ 5,048 $ 4,140 $ 1,910 $ 1,923 Other liabilities $ 304 $ 295 $ 13 $ 17 Notes issued by consolidated VIEs(2) 1,274 955 0 0 Total liabilities of consolidated VIEs $ 1,578 $ 1,250 $ 13 $ 17 __________ (1) Total assets of consolidated VIEs reflect $2,668 million and $2,013 million as of December 31, 2019 and 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 December 31, 2019, the maturities of these obligations were between 4 and 9 years . Unconsolidated Variable Interest Entities The Company has determined that it is not the primary beneficiary of certain VIEs for which it is the investment manager. These VIEs consist primarily of CLOs and investment funds for which the Company has determined that it is not the primary beneficiary as it does not have both (1) the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and (2) the obligation to absorb losses of the entity that could be potentially significant to the VIE or the right to receive benefits from the entity that could be potentially significant. The Company’s maximum exposure to loss resulting from its relationship with unconsolidated VIEs for which it is the investment manager is limited to its investment in the VIEs, which was $1,021 million and $836 million at December 31, 2019 and 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 Consolidated Statements of Financial Position. In the normal course of its activities, the Company will invest in LPs/LLCs which include hedge funds, private equity funds and real estate-related funds and may or may not be VIEs. The Company’s maximum exposure to loss on these investments, both VIEs and non-VIEs, is limited to the amount of its investment. The Company has determined that it is not required to consolidate these entities because either (1) it does not control them or (2) it does not have the obligation to absorb losses of these entities that could be potentially significant to the entities or the right to receive benefits from the entities that could be potentially significant. The Company classifies these investments as “Other invested assets” and its maximum exposure to loss associated with these entities was $11,157 million and $9,841 million as of December 31, 2019 and 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 | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies Interest Rate Contracts Interest rate swaps, options and futures are used by the Company to reduce risks from changes in interest rates, manage interest rate exposures arising from mismatches between assets and liabilities and to hedge against changes in their values it owns or anticipates acquiring or selling. Swaps may be attributed to specific assets or liabilities or to a portfolio of assets or liabilities. Under interest rate swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed upon notional principal amount. The Company also uses interest rate swaptions, caps, and floors to manage interest rate risk. A swaption is an option to enter into a swap with a forward starting effective date. The Company pays a premium for purchased swaptions and receives a premium for written swaptions. In an interest rate cap, the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. Similarly, in an interest rate floor, the buyer receives payments at the end of each period in which the interest rate is below the agreed strike price. Swaptions, caps and floors are included in interest rate options. In standardized exchange-traded interest rate futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values of underlying referenced investments. The Company enters into exchange-traded futures with regulated futures commission’s merchants who are members of a trading exchange. Equity Contracts Equity options, total return swaps, and futures are used by the Company to manage its exposure to the equity markets which impacts the value of assets and liabilities it owns or anticipates acquiring or selling. Equity index options are contracts which will settle in cash based on differentials in the underlying indices at the time of exercise and the strike price. The Company uses combinations of purchases and sales of equity index options to hedge the effects of adverse changes in equity indices within a predetermined range. Total return swaps are contracts whereby the Company agrees with counterparties to exchange, at specified intervals, the difference between the return on an asset (or market index) and London Inter-Bank Offered Rate (“LIBOR”) plus an associated funding spread based on a notional amount. The Company generally uses total return swaps to hedge the effect of adverse changes in equity indices. In standardized exchange-traded equity futures transactions, the Company purchases or sells a specified number of contracts, the values of which are determined by the daily market values of underlying referenced equity indices. The Company enters into exchange-traded futures with regulated futures commission’s merchants who are members of a trading exchange. Foreign Exchange Contracts Currency derivatives, including currency futures, options, forwards and swaps, are used by the Company to reduce risks from changes in currency exchange rates with respect to investments denominated in foreign currencies that the Company either holds or intends to acquire or sell, and to hedge the currency risk associated with net investments in foreign operations and anticipated earnings of its foreign operations. Under currency forwards, the Company agrees with counterparties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. As noted above, the Company uses currency forwards to mitigate the impact of changes in currency exchange rates on U.S. dollar-equivalent earnings generated by certain of its non-U.S. businesses, primarily its international insurance and investment operations. The Company executes forward sales of the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these forwards correspond with the future periods in which the non-U.S. dollar-denominated earnings are expected to be generated. Under currency swaps, the Company agrees with counterparties to exchange, at specified intervals, the difference between one currency and another at an exchange rate and calculated by reference to an agreed principal amount. Generally, the principal amount of each currency is exchanged at the beginning and termination of the currency swap by each party. Credit Contracts The Company writes credit default swaps to gain exposure similar to investment in public fixed maturity cash instruments. With these derivatives the Company sells credit protection on a single name reference, or certain index reference, and in return receives a quarterly premium. This premium or credit spread generally corresponds to the difference between the yield on the referenced name (or an index’s referenced names) public fixed maturity cash instruments and swap rates, at the time the agreement is executed. If there is an event of default by the referenced name or one of the referenced names in the index, as defined by the agreement, then the Company is obligated to pay the referenced amount of the contract to the counterparty and receive in return the referenced defaulted security or similar security or (in the case of a credit default index) pay the referenced amount less the auction recovery rate. See credit derivatives section for further discussion of guarantees. In addition to selling credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. Other Contracts “To Be Announced” (“TBA”) Forward Contracts. The Company uses TBA forward contracts to gain exposure to the investment risk and return of mortgage-backed securities. TBA transactions can help the Company enhance the return on its investment portfolio, and can provide a more liquid and cost-effective method of achieving these goals than purchasing or selling individual mortgage-backed pools. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. Additionally, pursuant to the Company’s mortgage dollar roll program, TBAs or mortgage-backed securities are transferred to counterparties with a corresponding agreement to repurchase them at a future date. These transactions do not qualify as secured borrowings and are accounted for as derivatives. Loan Commitments. In its mortgage operations, the Company enters into commitments to fund commercial mortgage loans at specified interest rates and other applicable terms within specified periods of time. These commitments are legally binding agreements to extend credit to a counterparty. Loan commitments for loans that will be held for sale are recognized as derivatives and recorded at fair value. The determination of the fair value of loan commitments accounted for as derivatives considers various factors including, among others, terms of the related loan, the intended exit strategy for the loans based upon either securitization valuation models or investor purchase commitments, prevailing interest rates, origination income or expense, and the value of service rights. Loan commitments that relate to the origination of mortgage loans that will be held for investment are not accounted for as derivatives and accordingly are not recognized in the Company’s financial statements. See Note 23 for additional information. Embedded Derivatives. The Company sells certain products (for example, variable annuities) which may include guaranteed benefit features that are accounted for as embedded derivatives. These embedded derivatives are marked to market through “Realized investment gains (losses), net” based on the change in value of the underlying contractual guarantees, which are determined using valuation models. The Company maintains a portfolio of derivative instruments that is intended to offset certain risks related to the above products’ features. The derivatives may include, but are not limited to equity options, equity futures, total return swaps, interest rate swaptions, caps, floors and other instruments. Synthetic Guarantees. The Company sells synthetic GICs, through both full service and investment-only sales channels, to investment vehicles primarily used by qualified defined contribution pension plans. The synthetic GICs are issued in respect of assets that are owned by the trustees of such plans, who invest the assets according to the contract terms agreed to with the Company. The contracts establish participant balances and credit interest thereon. The participant balances are supported by the underlying assets. In connection with certain participant-initiated withdrawals, the contract guarantees that after all underlying assets are liquidated, any remaining participant balances will be paid by the Company. Under U.S. GAAP, these contracts are accounted for as derivatives and recorded at fair value. 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 and cash collateral. This netting impact results in total derivative assets of $867 million and $1,148 million as of December 31, 2019 and 2018 , respectively, and total derivative liabilities of $831 million and $127 million as of December 31, 2019 and 2018 , respectively, reflected in the Consolidated Statements of Financial Position. December 31, 2019 December 31, 2018 Primary Underlying Risk/ Instrument Type Gross Fair Value Gross Fair Value Notional Assets Liabilities Notional Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 3,257 $ 628 $ (73 ) $ 3,885 $ 305 $ (67 ) Interest Rate Forwards 205 4 (1 ) 600 26 0 Foreign Currency Foreign Currency Forwards 1,461 22 (57 ) 722 26 (2 ) Currency/Interest Rate Foreign Currency Swaps 22,746 1,467 (302 ) 20,724 1,520 (358 ) Total Derivatives Designated as Hedge Accounting Instruments $ 27,669 $ 2,121 $ (433 ) $ 25,931 $ 1,877 $ (427 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 141,162 $ 10,249 $ (4,861 ) $ 140,963 $ 5,792 $ (3,435 ) Interest Rate Futures 17,095 4 (38 ) 13,991 23 (2 ) Interest Rate Options 16,496 339 (238 ) 24,002 147 (314 ) Interest Rate Forwards 2,218 18 (3 ) 5,049 72 0 Foreign Currency Foreign Currency Forwards 26,604 208 (214 ) 19,849 246 (138 ) Foreign Currency Options 0 0 0 2 0 0 Currency/Interest Rate Foreign Currency Swaps 13,874 740 (345 ) 13,784 773 (421 ) Credit Credit Default Swaps 798 21 0 5,207 33 (23 ) Equity Equity Futures 1,802 0 (3 ) 1,141 0 (8 ) Equity Options 32,657 679 (765 ) 58,693 384 (554 ) Total Return Swaps 18,218 6 (636 ) 17,309 1,131 (86 ) Other Other(1) 1,258 0 0 508 0 0 Synthetic GICs 80,009 1 0 79,215 2 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 352,191 $ 12,265 $ (7,103 ) $ 379,713 $ 8,603 $ (4,981 ) Total Derivatives(2)(3) $ 379,860 $ 14,386 $ (7,536 ) $ 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 $14,035 million and $8,959 million as of December 31, 2019 , and 2018 , respectively, primarily included in “Future policy benefits.” (3) Recorded in “Other invested assets” and “Other liabilities” on the Consolidated Statements of Financial Position. As of December 31, 2019 , the following amounts were recorded on the 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 $ 389 $ 64 Commercial mortgage and other loans $ 23 $ 2 Policyholders’ account balances $ (1,376 ) $ (107 ) Future policy benefits $ (676 ) $ (172 ) ________ (1) There were no material 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 GIC, which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 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) $ 14,303 $ (13,519 ) $ 784 $ (607 ) $ 177 Securities purchased under agreement to resell 1,012 0 1,012 (1,012 ) 0 Total Assets $ 15,315 $ (13,519 ) $ 1,796 $ (1,619 ) $ 177 Offsetting of Financial Liabilities: Derivatives(1) $ 7,528 $ (6,705 ) $ 823 $ (244 ) $ 579 Securities sold under agreement to repurchase 9,681 0 9,681 (9,681 ) 0 Total Liabilities $ 17,209 $ (6,705 ) $ 10,504 $ (9,925 ) $ 579 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 Instruments/ Collateral(1) 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. Cash Flow, Fair Value and Net Investment Hedges The primary derivative instruments used by the Company in its fair value, cash flow and net investment hedge accounting relationships are interest rate swaps, currency swaps and currency forwards. These instruments are only designated for hedge accounting in instances where the appropriate criteria are met. The Company does not use futures, options, credit, and equity 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. Year Ended December 31, 2019 Realized Investment Gains (Losses) Net Investment Income Other Income (Loss) Interest Expense Interest Credited To Policyholders’ Account Balances 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 $ (14 ) $ (7 ) $ 0 $ 0 $ 194 $ 155 $ 0 Currency 0 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (14 ) (7 ) 0 0 194 155 0 Gains (losses) on the hedged item: Interest Rate 11 20 0 0 (186 ) (140 ) 0 Currency 1 3 0 0 0 0 0 Total gains (losses) on hedged item 12 23 0 0 (186 ) (140 ) 0 Total gains (losses) on fair value hedges net of hedged item (2 ) 16 0 0 8 15 0 Cash flow hedges Interest Rate 58 0 0 0 0 0 (25 ) Currency 6 0 0 0 0 0 (62 ) Currency/Interest Rate 130 282 (97 ) 0 0 0 99 Total gains (losses) on cash flow hedges 194 282 (97 ) 0 0 0 12 Net investment hedges Currency 0 0 0 0 0 0 4 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 4 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 4,533 0 0 0 0 0 0 Currency 14 0 5 0 0 0 0 Currency/Interest Rate 394 0 0 0 0 0 0 Credit 123 0 0 0 0 0 0 Equity (4,057 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (2,705 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (1,698 ) 0 5 0 0 0 0 Total $ (1,506 ) $ 298 $ (92 ) $ 0 $ 8 $ 15 $ 16 Year Ended December 31, 2018(2) Realized Investment Gains (Losses) Net Investment Income Other Income (Loss) Interest Expense Interest Credited To Policyholders’ Account Balances 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 $ 20 $ (9 ) $ 0 $ 0 $ (65 ) $ 35 $ 0 Currency 6 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments 26 (9 ) 0 0 (65 ) 35 0 Gains (losses) on the hedged item: Interest Rate (27 ) 31 0 0 79 (31 ) 0 Currency (5 ) 3 0 0 0 0 0 Total gains (losses) on hedged item (32 ) 34 0 0 79 (31 ) 0 Total gains (losses) on fair value hedges net of hedged item (6 ) 25 0 0 14 4 0 Cash flow hedges Interest Rate 2 0 0 (1 ) 0 0 32 Currency 7 0 0 0 0 0 20 Currency/Interest Rate 69 217 257 0 0 0 798 Total gains (losses) on cash flow hedges 78 217 257 (1 ) 0 0 850 Net investment hedges Currency 0 0 0 0 0 0 6 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 6 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,226 ) 0 0 0 0 0 0 Currency 342 0 (1 ) 0 0 0 0 Currency/Interest Rate 364 0 3 0 0 0 0 Credit (55 ) 0 0 0 0 0 0 Equity 1,121 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives 966 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments 1,512 0 2 0 0 0 0 Total $ 1,584 $ 242 $ 259 $ (1 ) $ 14 $ 4 $ 856 Year Ended December 31, 2017(2) Realized Investment Gains (Losses) Net Investment Income Other Income (Loss) Interest Expense Interest Credited To Policyholders’ Account Balances 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 $ 16 $ (19 ) $ 0 $ 0 $ (1 ) $ 0 $ 0 Currency (6 ) 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments 10 (19 ) 0 0 (1 ) 0 0 Gains (losses) on the hedged item: Interest Rate (18 ) 37 0 0 0 0 0 Currency 6 5 0 0 0 0 0 Total gains (losses) on hedged item (12 ) 42 0 0 0 0 0 Total gains (losses) on fair value hedges net of hedged item (2 ) 23 0 0 (1 ) 0 0 Cash flow hedges Interest Rate 0 0 0 (3 ) 0 0 7 Currency 0 0 0 0 0 0 (3 ) Currency/Interest Rate 98 189 (303 ) 0 0 0 (1,359 ) Total gains (losses) on cash flow hedges 98 189 (303 ) (3 ) 0 0 (1,355 ) Net investment hedges Currency 0 0 0 0 0 0 (9 ) Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 (9 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,161 0 0 0 0 0 0 Currency (340 ) 0 0 0 0 0 0 Currency/Interest Rate (348 ) 0 (5 ) 0 0 0 0 Credit 13 0 0 0 0 0 0 Equity (2,498 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives 644 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (1,368 ) 0 (5 ) 0 0 0 0 Total $ (1,272 ) $ 212 $ (308 ) $ (3 ) $ (1 ) $ 0 $ (1,364 ) __________ (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, 2016 $ 1,316 Amount recorded in AOCI Interest Rate 5 Currency (3 ) Currency/Interest Rate (1,375 ) Total amount recorded in AOCI (1,373 ) Amount reclassified from AOCI to income Interest Rate 2 Currency 0 Currency/Interest Rate 16 Total amount reclassified from AOCI to income 18 Balance, December 31, 2017 $ (39 ) Amount recorded in AOCI Interest Rate 33 Currency 27 Currency/Interest Rate 1,341 Total amount recorded in AOCI 1,401 Amount reclassified from AOCI to income Interest Rate (1 ) Currency (7 ) Currency/Interest Rate (543 ) Total amount reclassified from AOCI to income (551 ) Balance, December 31, 2018 $ 811 Cumulative effect adjustment from the adoption of ASU 2017-12(1) 9 Amount recorded in AOCI Interest Rate 33 Currency (56 ) Currency/Interest Rate 414 Total amount recorded in AOCI 391 Amount reclassified from AOCI to income Interest Rate (58 ) Currency (6 ) Currency/Interest Rate (315 ) Total amount reclassified from AOCI to income (379 ) Balance, December 31, 2019 $ 832 _________ (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 Consolidated Statements of Comprehensive Income; these amounts are then reclassified to earnings when the hedged item affects earnings. Using December 31, 2019 values, it is estimated that a pre-tax gain of approximately $261 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending December 31, 2020 . 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 10 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 $536 million as of 2019 , $532 million as of 2018 , and $526 million as of 2017 . 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 December 31, 2019 and 2018 , respectively. These credit derivatives are reported at fair value as an asset of $1 million as of both December 31, 2019 and 2018 . As of December 31, 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 $692 million and $4,953 million , reported at fair value as an asset of $20 million and $10 million as of December 31, 2019 and 2018 , respectively. As of December 31, 2019 , the notional amount of these credit derivatives had the following NAIC ratings: $50 million in NAIC 1; $570 million in NAIC 3; and $72 million in NAIC 6. NAIC designations are based on the lowest rated single name reference included in the index. The Company’s maximum amount at risk under these credit derivatives equals the aforementioned notional amounts and assumes the value of the underlying referenced securities become worthless. These credit derivatives have maturities of less than 1 year and less than 28 years for single name and index references, respectively. In addition to writing credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. As of December 31, 2019 and 2018 , the Company had $6 million and $145 million of outstanding notional amounts, reported at fair value as a liability of $0 million and $1 million , respectively. Counterparty Credit Risk The Company is exposed to 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 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. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 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. The Company’s Level 1 assets and liabilities primarily include certain cash equivalents and short-term investments, equity securities and derivative contracts that trade on an active exchange market. Level 2—Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. The Company’s Level 2 assets and liabilities include: fixed maturities (corporate public and private bonds, most government securities, certain asset-backed and mortgage-backed securities, etc.), certain equity securities (mutual funds, which do not trade in active markets because they are not publicly available), certain commercial mortgage loans, short-term investments and certain cash equivalents (primarily commercial paper), and certain OTC derivatives. Level 3—Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. The Company’s Level 3 assets and liabilities primarily include: certain private fixed maturities and equity securities, certain manually priced public equity securities and fixed maturities, certain highly structured OTC derivative contracts, certain consolidated real estate funds for which the Company is the general partner and embedded derivatives resulting from certain products with guaranteed benefits. Assets and Liabilities by Hierarchy Level —The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of December 31, 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 $ 35,554 $ 105 $ $ 35,659 Obligations of U.S. states and their political subdivisions 0 11,493 4 11,497 Foreign government bonds 0 119,032 22 119,054 U.S. corporate public securities 0 97,959 380 98,339 U.S. corporate private securities(2) 0 34,749 1,784 36,533 Foreign corporate public securities 0 29,756 69 29,825 Foreign corporate private securities 0 27,237 1,003 28,240 Asset-backed securities(3) 0 12,238 936 13,174 Commercial mortgage-backed securities 0 15,574 0 15,574 Residential mortgage-backed securities 0 3,189 12 3,201 Subtotal 0 386,781 4,315 391,096 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 185 0 185 Obligations of U.S. states and their political subdivisions 0 212 0 212 Foreign government bonds 0 790 24 814 Corporate securities 0 12,966 637 13,603 Asset-backed securities(3) 0 1,593 69 1,662 Commercial mortgage-backed securities 0 1,896 0 1,896 Residential mortgage-backed securities 0 1,158 0 1,158 Equity securities 1,505 285 0 1,790 All other(4) 0 261 0 261 Subtotal 1,505 19,346 730 21,581 Fixed maturities, trading 0 3,597 287 3,884 Equity securities 5,813 939 633 7,385 Commercial mortgage and other loans 0 228 0 228 Other invested assets(5) 6 14,379 567 (13,519 ) 1,433 Short-term investments 1,806 1,975 155 3,936 Cash equivalents 2,079 6,796 131 9,006 Other assets 0 0 113 113 Separate account assets(6)(7) 46,574 240,433 1,717 288,724 Total assets $ 57,783 $ 674,474 $ 8,648 $ (13,519 ) $ 727,386 Future policy benefits(8) $ 0 $ 0 $ 12,831 $ $ 12,831 Policyholders’ account balances 0 0 1,316 1,316 Other liabilities 41 7,495 105 (6,705 ) 936 Notes issued by consolidated VIEs 0 0 800 800 Total liabilities $ 41 $ 7,495 $ 15,052 $ (6,705 ) $ 15,883 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 $6,814 million and $4,050 million as of December 31, 2019 and 2018 , respectively. (2) Excludes notes with fair value of $4,757 million (carrying amount of $4,751 million ) and $4,216 million (carrying amount of $4,216 million ) as of December 31, 2019 and 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. At December 31, 2019 and 2018 , the fair values of such investments were $4,213 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. At December 31, 2019 and 2018 , the fair value of such investments were $23,557 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 Consolidated Statements of Financial Position. (8) As of December 31, 2019 , the net embedded derivative liability position of $12.8 billion includes $0.7 billion of embedded derivatives in an asset position and $13.5 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. The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below. Fixed Maturity Securities —The fair values of the Company’s public fixed maturity securities are generally based on prices obtained from independent pricing services. Prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. The pricing hierarchy is updated for new financial products and recent pricing experience with various vendors. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. Typical inputs used by these pricing services include but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flow, prepayment speeds and default rates. If the pricing information received from third-party pricing services is deemed not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service or classify the securities as Level 3. If the pricing service updates the price to be more consistent with the presented market observations, the security remains within Level 2. Internally-developed valuations or indicative broker quotes are also used to determine fair value in circumstances where vendor pricing is not available, or where the Company ultimately concludes that pricing information received from the independent pricing services is not reflective of market activity. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information with an internally-developed valuation. As of December 31, 2019 and 2018 , overrides on a net basis were not material. Pricing service overrides, internally-developed valuations and indicative broker quotes are generally included in Level 3 in the fair value hierarchy. The Company conducts several specific price monitoring activities. Daily analyses identify price changes over predetermined thresholds defined at the financial instrument level. Various pricing integrity reports are reviewed on a daily and monthly basis to determine if pricing is reflective of market activity or if it would warrant any adjustments. Other procedures performed include, but are not limited to, reviews of third-party pricing services methodologies, reviews of pricing trends and back testing. The fair values of private fixed maturities, which are originated by internal private asset managers, are primarily determined using discounted cash flow models. These models primarily use observable inputs that include Treasury or similar base rates plus estimated credit spreads to value each security. The credit spreads are obtained through a survey of private market intermediaries who are active in both primary and secondary transactions, and consider, among other factors, the credit quality and the reduced liquidity associated with private placements. Internal adjustments are made to reflect variation in observed sector spreads. Since most private placements are valued using standard market observable inputs and inputs derived from, or corroborated by, market observable data including, but not limited to observed prices and spreads for similar publicly-traded issues, they have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the price of a security, a Level 3 classification is made. Assets Supporting Experience-Rated Contractholder Liabilities —Assets supporting experience-rated contractholder liabilities consist primarily of fixed maturity securities, equity securities and derivatives whose fair values are determined consistent with similar instruments described above under “Fixed Maturity Securities” and below under “Equity Securities” and “Derivative Instruments.” Equity Securities —Equity securities consist principally of investments in common and preferred stock of publicly-traded companies, perpetual preferred stock, privately-traded securities, as well as mutual fund shares. The fair values of most publicly-traded equity securities are based on quoted market prices in active markets for identical assets and are classified within Level 1 in the fair value hierarchy. Estimated fair values for most privately traded equity securities are determined using discounted cash flow, earnings multiple and other valuation models that require a substantial level of judgment around inputs and therefore are classified within Level 3. The fair values of mutual fund shares that transact regularly (but do not trade in active markets because they are not publicly available) are based on transaction prices of identical fund shares and are classified within Level 2 in the fair value hierarchy. The fair values of perpetual preferred stock are based on inputs obtained from independent pricing services that are primarily based on indicative broker quotes. As a result, the fair values of perpetual preferred stock are classified as Level 3. Commercial Mortgage and Other Loans —The fair value of loans held and accounted for using the fair value option is determined utilizing pricing indicators from the whole loan market, where investors are committed to purchase these loans at a predetermined price, which is considered the principal exit market for these loans. The Company evaluates the valuation inputs used for these assets, including the existence of predetermined exit prices, the terms of the loans, prevailing interest rates and credit risk, and deems the primary pricing inputs are Level 2 inputs in the fair value hierarchy. Other Invested Assets —Other invested assets primarily include investments in LPs/LLCs, derivatives and certain limited partnerships which are consolidated because the Company is either deemed to exercise control or considered the primary beneficiary of a variable interest entity. These entities are primarily investment companies and follow specialized industry accounting whereby their assets are carried at fair value. The investments held by these entities include various feeder fund investments in underlying master funds (whose underlying holdings generally include public fixed maturities, equity securities and mutual funds), as well as wholly-owned real estate held within other investment funds. For the unconsolidated fund investments, the fair value is primarily determined by the fund managers and is measured at net asset value (“NAV”) as a practical expedient. Other Assets —Other assets reflected in Level 3 include reinsurance recoverables which are carried at fair value and relate to the reinsurance of the Company’s living benefit guarantees on certain variable annuity contracts. The methods and assumptions used to estimate the fair value are consistent with those described below under “Future Policy Benefits.” Derivative Instruments —Derivatives are recorded at fair value either as assets, within “Assets supporting experience-rated contractholder liabilities,” or “Other invested assets, at fair value,” or as liabilities, within “Other liabilities,” except for embedded derivatives which are recorded with the associated host contract. The fair values of derivative contracts can be affected by changes in interest rates, foreign exchange rates, commodity prices, credit spreads, market volatility, expected returns, NPR, liquidity and other factors. For derivative positions included within Level 3 of the fair value hierarchy, liquidity valuation adjustments are made to reflect the cost of exiting significant risk positions, and consider the bid-ask spread, maturity, complexity and other specific attributes of the underlying derivative position. The Company’s exchange-traded futures and options include Treasury futures, Eurodollar futures, commodity futures, Eurodollar options and commodity options. Exchange-traded futures and options are valued using quoted prices in active markets and are classified within Level 1 in the fair value hierarchy. The majority of the Company’s derivative positions are traded in the OTC derivative market and are classified within Level 2 in the fair value hierarchy. OTC derivatives classified within Level 2 are valued using models that utilize actively quoted or observable market input values from external market data providers, third-party pricing vendors and/or recent trading activity. The Company’s policy is to use mid-market pricing in determining its best estimate of fair value. The fair values of most OTC derivatives, including interest rate and cross-currency swaps, currency forward contracts, commodity swaps, commodity forward contracts, single name credit default swaps, loan commitments held for sale and TBA forward contracts on highly rated mortgage-backed securities issued by U.S. government sponsored entities are determined using discounted cash flow models. The fair values of European style option contracts are determined using Black-Scholes option pricing models. These models’ key inputs include the contractual terms of the respective contract, along with significant observable inputs, including interest rates, currency rates, credit spreads, equity prices, index dividend yields, NPR, volatility and other factors. The Company’s cleared interest rate swaps and credit derivatives linked to an index are valued using models that utilize actively quoted or observable market inputs, including Overnight Indexed Swap discount rates, obtained from external market data providers, third-party pricing vendors and/or recent trading activity. These derivatives are classified as Level 2 in the fair value hierarchy. The majority of the Company’s derivative agreements are with highly rated major international financial institutions. To reflect the market’s perception of its own and the counterparty’s NPR, the Company incorporates additional spreads over LIBOR into the discount rate used in determining the fair value of OTC derivative assets and liabilities that are not otherwise collateralized. Derivatives classified as Level 3 include look-back equity options and other structured products. These derivatives are valued based upon models, such as Monte Carlo simulation models and other techniques that utilize significant unobservable inputs. Level 3 methodologies are validated through periodic comparison of the Company’s fair values to external broker-dealer values. Cash Equivalents and Short-Term Investments —Cash equivalents and short-term investments include money market instruments, commercial paper and other highly liquid debt instruments. Certain money market instruments are valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. The remaining instruments in this category are generally fair valued based on market observable inputs and these investments have primarily been classified within Level 2. Separate Account Assets —Separate account assets include mutual funds, fixed maturity securities, treasuries, equity securities, real estate and commercial mortgage loans for which values are determined consistent with similar instruments described above under “Fixed Maturity Securities,” “Equity Securities” and “Commercial Mortgage and Other Loans.” Future Policy Benefits —The liability for future policy benefits is related to guarantees primarily associated with the living benefit features of certain variable annuity contracts offered by the Company’s Individual Annuities segment, including guaranteed minimum accumulation benefits (“GMAB”), guaranteed withdrawal benefits (“GMWB”) and guaranteed minimum income and withdrawal benefits (“GMIWB”), accounted for as embedded derivatives. The fair values of these liabilities are calculated as the present value of future expected benefit payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. This methodology could result in either a liability or contra-liability balance, given changing capital market conditions and various actuarial assumptions. Since there is no observable active market for the transfer of these obligations, the valuations are calculated using internally-developed models with option pricing techniques. The models are based on a risk neutral valuation framework and incorporate premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows. The determination of these risk premiums requires the use of management’s judgment. The significant inputs to the valuation models for these embedded derivatives include capital market assumptions, such as interest rate levels and volatility assumptions, the Company’s market-perceived NPR, as well as actuarially determined assumptions, including contractholder behavior, such as lapse rates, benefit utilization rates, withdrawal rates, and mortality rates. Since many of these assumptions are unobservable and are considered to be significant inputs to the liability valuation, the liability included in future policy benefits has been reflected within Level 3 in the fair value hierarchy . Capital market inputs and actual policyholders’ account values are updated each quarter based on capital market conditions as of the end of the quarter, including interest rates, equity markets and volatility. In the risk neutral valuation, the initial swap curve drives the total return used to grow the policyholders’ account values. The Company’s discount rate assumption is based on the LIBOR swap curve adjusted for an additional spread relative to LIBOR to reflect NPR. Actuarial assumptions, including contractholder behavior and mortality, are reviewed at least annually, and updated based upon emerging experience, future expectations and other data, including any observable market data. These assumptions are generally updated annually unless a material change that the Company feels is indicative of a long-term trend is observed in an interim period. Policyholders’ Account Balances —The liability for policyholders’ account balances is related to certain embedded derivative instruments associated with certain universal life and fixed annuity products that provide the policyholders with the index-linked interest credited over contract specified term periods. The fair values of these liabilities are determined using discounted cash flow models which include capital market assumptions such as interest rates and equity index volatility assumptions, the Company’s market-perceived NPR and actuarially determined assumptions for mortality, lapses and projected hedge costs. As there is no observable active market for these liabilities, the fair value is determined as the present value of account balances paid to policyholders in excess of contractually guaranteed minimums using option pricing techniques for index term periods that contain deposits as of the valuation date, and the expected option cost for future index term periods, where the terms of index crediting rates have not yet been declared by the Company. Premiums for risks inherent in valuation techniques, inputs, and the general uncertainty around the timing and amount of future cash flows are also incorporated in the fair value of these liabilities. The determination of these risk premiums requires the use of management’s judgment, and hence these liabilities are reflected within Level 3 in the fair value hierarchy. Capital market inputs, including interest rates and equity markets volatility, and actual policyholders’ account values are updated each quarter. Actuarial assumptions are reviewed at least annually and updated based upon emerging experience, future expectations and other data, including any observable market data. Aside from these annual updates, assumptions are generally updated only if a material change is observed in an interim period that the Company believes is indicative of a long-term trend. Other Liabilities —Other liabilities include certain derivative instruments and the contingent consideration liability associated with the acquisition of Assurance IQ. The fair values of derivative instruments are primarily determined consistent with those described above under “Derivative Instruments.” For the contingent consideration liability, see Note 1 for additional information. Notes issued by Consolidated VIEs —These notes are based on the fair values of corresponding bank loan collateral. Since the notes are valued based on reference collateral, they are classified as Level 3. See Note 4 and “Fair Value Option” below for additional information. 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 December 31, 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) $ 1,424 Discounted cash flow(4) Discount rate 0.49% 20% 7.41 % Decrease Market comparables EBITDA multiples(3) 5.7X 9.2X 7.3X Increase Liquidation Liquidation value 14.25% 83.61% 59.47 % Increase Equity securities $ 210 Discounted cash flow(4) Discount rate 10% 30% Decrease Market comparables EBITDA multiples(3) 1X 10.1X 5.4X Increase Net Asset Value Share price $5 $1,353 $451 Increase Separate account assets-commercial mortgage loans(5) $ 796 Discounted cash flow Spread 1.11% 1.85% 1.26 % Decrease Liabilities: Future policy benefits(6) $ 12,831 Discounted cash flow Lapse rate(8) 1% 18% Decrease Spread over LIBOR(9) 0.10% 1.23% Decrease Utilization rate(10) 43% 97% Increase Withdrawal rate See table footnote (11) below. Mortality rate(12) 0% 15% Decrease Equity volatility curve 13% 23% Increase Policyholders’ account balances(7) $ 1,316 Discounted cash flow Lapse rate(8) 1% 42% Decrease Spread over LIBOR(9) 0.1% 1.23% Decrease Mortality rate(12) 0% 24% Decrease Equity volatility curve 6% 25% 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(5) $ 785 Discounted cash flow Spread 1.12% 2.55% 1.29% Decrease Liabilities: Future policy benefits(6) $ 8,926 Discounted cash flow Lapse rate(8) 1% 13% Decrease Spread over LIBOR(9) 0.36% 1.60% Decrease Utilization rate(10) 50% 97% Increase Withdrawal rate See table footnote (11) below. Mortality rate(12) 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) Includes certain investments where enterprise value is less than the amount needed to support senior and subordinated claims. These investments typically use a range of discount rates (10% to 20%), therefore presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) 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 Consolidated Statements of Financial Position. As a result, changes in value associated with these investments are not reflected in the Company’s Consolidated Statements of Operations. (6) 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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (7) 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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (8) 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. (9) 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. (10) The utilization rate assu |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | DEFERRED POLICY ACQUISITION COSTS The balances of and changes in DAC as of and for the years ended December 31, are as follows: 2019 2018 2017 (in millions) Balance, beginning of period $ 20,058 $ 18,992 $ 17,661 Capitalization of commissions, sales and issue expenses 2,966 2,870 2,820 Amortization—Impact of assumption and experience unlocking and true-ups (164 ) (217 ) 247 Amortization—All other (2,168 ) (2,056 ) (1,827 ) Change in unrealized investment gains and losses (713 ) 519 (190 ) Foreign currency translation (8 ) (32 ) 281 Other(1) (59 ) (18 ) 0 Balance, end of period $ 19,912 $ 20,058 $ 18,992 __________ (1) “Other” for 2019 primarily represents the impact related to the sale of the Company’s Pramerica of Italy subsidiary of $(46) million and DAC ceded to a third-party reinsurer of $(14) million . “Other” for 2018 represents the impact related to the sale of the Company’s Pramerica of Poland subsidiary of $(38) million and the impact of the elimination of Gibraltar Life’s one-month reporting lag of $20 million . |
Value of Business Acquired
Value of Business Acquired | 12 Months Ended |
Dec. 31, 2019 | |
Present Value of Future Insurance Profits [Abstract] | |
Value of Business Acquired | VALUE OF BUSINESS ACQUIRED The balances of and changes in VOBA as of and for the years ended December 31, are as follows: 2019 2018 2017 (in millions) Balance, beginning of period $ 1,850 $ 1,591 $ 2,314 Amortization—Impact of assumption and experience unlocking and true-ups (139 ) 0 (56 ) Amortization—All other (235 ) (276 ) (311 ) Change in unrealized investment gains and losses (478 ) 455 (456 ) Interest 64 69 75 Foreign currency translation 10 23 25 Other 38 (12 ) 0 Balance, end of period $ 1,110 $ 1,850 $ 1,591 The following table provides VOBA balances for the year ended December 31, 2019 . VOBA Balance (in millions) CIGNA $ 226 Prudential Annuities Holding Co. $ 32 Gibraltar Life $ 848 Gibraltar BSN Life Berhad $ 4 Aoba Life $ 0 The Hartford Life Business $ 0 The following table provides estimated future amortization, net of interest, for the periods indicated. 2020 2021 2022 2023 2024 (in millions) Estimated future VOBA amortization $ 118 $ 110 $ 100 $ 88 $ 74 |
Investments In Operating Joint
Investments In Operating Joint Ventures | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments In Operating Joint Ventures | INVESTMENTS IN OPERATING JOINT VENTURES The Company has made investments in certain joint ventures that are strategic in nature and made other than for the sole purpose of generating investment income. These investments are accounted for under the equity method of accounting and are included in “Other assets” in the Company’s Consolidated Statements of Financial Position. The earnings from these investments are included on an after-tax basis in “Equity in earnings of operating joint ventures, net of taxes” in the Company’s Consolidated Statements of Operations. The Company has made these investments through its PGIM and International Businesses segments, and its Corporate and Other operations. The summarized financial information for the Company’s operating joint ventures has been included in the summarized combined financial information for all significant equity method investments shown in Note 3. The following table sets forth information related to the Company’s investments in operating joint ventures as of and for the years ended December 31: 2019 2018 2017 (in millions) Investment in operating joint ventures $ 1,309 $ 1,329 $ 1,483 Dividends received from operating joint ventures $ 70 $ 93 $ 63 After-tax equity in earnings of operating joint ventures $ 100 $ 76 $ 49 For the years ended December 31, 2019 , 2018 and 2017 , the Company recognized $29 million , $32 million and $36 million , respectively, of asset management fee income for services the Company provided to these operating joint ventures. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES The changes in the carrying value of goodwill by reportable segment are as follows: PGIM Retirement Assurance IQ International Businesses Other Total (in millions) Goodwill balance, December 31, 2016: $ 230 $ 444 $ 0 $ 159 $ 0 $ 833 Effect of foreign currency translation 5 0 0 5 0 10 Goodwill balance, December 31, 2017: 235 444 0 164 0 843 Acquisitions 0 11 0 0 11 22 Effect of foreign currency translation (2 ) 0 0 0 0 (2 ) Goodwill balance, December 31, 2018: 233 455 0 164 11 863 Acquisitions 22 0 2,128 0 0 2,150 Effect of foreign currency translation (1 ) 0 0 1 0 0 Goodwill balance, December 31, 2019: $ 254 $ 455 $ 2,128 $ 165 $ 11 $ 3,013 The Company tests goodwill for impairment annually, as of December 31, and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, as discussed in further detail in Note 2. The Company’s reporting units, except Assurance IQ, each performed their annual goodwill impairment test using the quantitative two-step approach at December 31, 2019 and 2018 . The Assurance IQ segment performed a qualitative assessment at December 31, 2019 considering the October 2019 acquisition date. There are no impairments or accumulated impairment losses recorded in the periods presented above for goodwill. Other Intangibles Other intangible balances at December 31, are as follows: 2019 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Subject to amortization: Mortgage servicing rights $ 745 $ (468 ) $ 277 $ 689 $ (423 ) $ 266 Customer relationships 244 (153 ) 91 173 (120 ) 53 Software and other 201 (38 ) 163 114 (87 ) 27 Not subject to amortization 69 N/A 69 2 N/A 2 Total $ 600 $ 348 The fair values of net mortgage servicing rights were $287 million and $295 million at December 31, 2019 and 2018 , respectively. Amortization expense for other intangibles was $65 million , $61 million and $51 million for the years ending December 31, 2019 , 2018 and 2017 , respectively. The amortization expense amounts for 2019 , 2018 and 2017 do not include impairments recorded for mortgage servicing rights or other intangibles. See the nonrecurring fair value measurements section of Note 6 for more information regarding these impairments. The following table provides estimated future amortization for the periods indicated. 2020 2021 2022 2023 2024 (in millions) Estimated future amortization expense of other intangibles $ 70 $ 65 $ 57 $ 41 $ 34 |
Leases
Leases | 12 Months Ended |
Dec. 31, 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 29 years , some of which include options to extend the leases for up to 17 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. December 31, 2019 ($ in millions) Operating Leases: Right-of-use assets $ 554 Lease liabilities $ 594 Weighted average remaining lease term 6 years Weighted average discount rate 2.46 % Maturities of operating lease liabilities are as follows: December 31, 2019 (in millions) 2020 $ 152 2021 143 2022 104 2023 74 2024 65 Thereafter 111 Total lease payments 649 Less imputed interest (55 ) Total $ 594 Lease expense is included in “General and administrative expenses.” The expense was comprised of operating lease costs and short-term lease costs of $138 million and $101 million for the twelve months ended December 31, 2019 , respectively. 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. Future minimum lease payments under non-cancelable operating and capital leases along with associated sub-lease income prior to the adoption of ASU 2016-02, Leases (Topic 842) are as follows: December 31, 2018 Operating and Capital Leases(1) Sub-lease Income (in millions) 2019 $ 168 $ 1 2020 133 1 2021 106 1 2022 82 0 2023 58 0 2024 and thereafter 138 0 Total $ 685 $ 3 __________ (1) Future minimum lease payments under capital leases were $26 million as of December 31, 2018. Rental expense, net of sub-lease income were $265 million and $258 million for the years ended December 31, 2018 and 2017, respectively. 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 $182 million for the twelve months ended December 31, 2019 |
Operating Leases, Lessor | LEASES The Company occupies leased office space and other facilities in many locations under various long-term leases and has entered into numerous leases covering the long-term use of computers and other equipment. The leases, depending on their specific terms, are classified as either operating or finance with the vast majority of leases falling under the operating classification. The leases in the Company’s portfolio have remaining lease terms from less than one year to 29 years , some of which include options to extend the leases for up to 17 years , and some of which include options to terminate the leases within 8 years . An analysis of all economic and non-economic factors associated with leases containing certain options, including factors such as the existence of cancellation penalties, leasehold improvements made to the underlying assets and location of the underlying assets, is conducted to determine whether those leases are reasonably certain to renew, and hence, should be included in the lease term that is used to establish the right-of-use assets and lease liabilities for those arrangements. The Company does not have residual guarantees associated with its lessee arrangements, nor are there any restrictions or covenants associated with its lease arrangements. Lessee Supplemental balance sheet information related to leases where the Company is the lessee is included below. Right-of-use assets and lease liabilities are included within “Other assets” and “Other liabilities” respectively. December 31, 2019 ($ in millions) Operating Leases: Right-of-use assets $ 554 Lease liabilities $ 594 Weighted average remaining lease term 6 years Weighted average discount rate 2.46 % Maturities of operating lease liabilities are as follows: December 31, 2019 (in millions) 2020 $ 152 2021 143 2022 104 2023 74 2024 65 Thereafter 111 Total lease payments 649 Less imputed interest (55 ) Total $ 594 Lease expense is included in “General and administrative expenses.” The expense was comprised of operating lease costs and short-term lease costs of $138 million and $101 million for the twelve months ended December 31, 2019 , respectively. 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. Future minimum lease payments under non-cancelable operating and capital leases along with associated sub-lease income prior to the adoption of ASU 2016-02, Leases (Topic 842) are as follows: December 31, 2018 Operating and Capital Leases(1) Sub-lease Income (in millions) 2019 $ 168 $ 1 2020 133 1 2021 106 1 2022 82 0 2023 58 0 2024 and thereafter 138 0 Total $ 685 $ 3 __________ (1) Future minimum lease payments under capital leases were $26 million as of December 31, 2018. Rental expense, net of sub-lease income were $265 million and $258 million for the years ended December 31, 2018 and 2017, respectively. 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 $182 million for the twelve months ended December 31, 2019 |
Policyholders' Liabilities
Policyholders' Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Policyholders' Liabilities | POLICYHOLDERS’ LIABILITIES Future Policy Benefits Future policy benefits at December 31 for the years indicated are as follows: 2019 2018 (in millions) Life insurance $ 191,654 $ 180,749 Individual and group annuities and supplementary contracts 75,940 72,624 Other contract liabilities 23,052 17,665 Subtotal future policy benefits excluding unpaid claims and claim settlement expenses 290,646 271,038 Unpaid claims and claim settlement expenses 2,881 2,808 Total future policy benefits $ 293,527 $ 273,846 Life insurance liabilities include reserves for death and endowment policy benefits, terminal dividends and certain health benefits. Individual and group annuities and supplementary contracts liabilities include reserves for life contingent immediate annuities and life contingent group annuities. Other contract liabilities include unearned premiums and certain other reserves for group, annuities and individual life and health products. Future policy benefits for individual participating traditional life insurance are based on the net level premium method, calculated using the guaranteed mortality and nonforfeiture interest rates which range from 2.5% to 7.5% . Participating insurance represented 2% of direct individual life insurance in force for both December 31, 2019 and 2018 , and 11% , 12% and 14% of direct individual life insurance premiums for 2019 , 2018 and 2017 , respectively. Future policy benefits for individual non-participating traditional life insurance policies, group and individual long-term care policies and individual health insurance policies are generally equal to the present value of future benefit payments and related expenses, less the present value of future net premiums. Assumptions as to mortality, morbidity and persistency are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. Interest rates used in the determination of the present values range from (0.1)% to 9.5% ; less than 1% of the reserves are based on an interest rate in excess of 8%. Future policy benefits for individual and group annuities and supplementary contracts with life contingencies are generally equal to the present value of expected future payments. Assumptions as to mortality are based on the Company’s experience, industry data, and/or other factors, when the basis of the reserve is established. The interest rates used in the determination of the present values range from (0.2)% to 11.3% ; less than 1% of the reserves are based on an interest rate in excess of 8%. Future policy benefits for other contract liabilities are generally equal to the present value of expected future payments based on the Company’s experience, except for example, certain group insurance coverages for which future policy benefits are equal to gross unearned premium reserves. The interest rates used in the determination of the present values range from 0.8% to 7.0% . The Company’s liability for future policy benefits is also inclusive of liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in “other contract liabilities” in the table above. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. See Note 13 for additional information regarding liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Reserves for recognizing a premium deficiency included in “Future policy benefits” are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Additionally, in certain instances the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional PFL liability be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. Premium deficiencies have been recognized in the past for the group single premium annuity business, which consists of limited-payment, long-duration traditional, non-participating annuities; structured settlements; single premium immediate annuities with life contingencies; long-term care; certain individual health policies; and certain interest-sensitive life products. Unpaid claims and claim settlement expenses primarily reflect the Company’s estimate of future disability claim payments and expenses as well as estimates of claims incurred but not yet reported as of the balance sheet date related to group disability products. Unpaid claim liabilities that are discounted use interest rates ranging from 2.6% to 6.4% . Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows: 2019 2018 (in millions) Individual annuities $ 44,391 $ 43,309 Group annuities 27,843 27,618 Guaranteed investment contracts and guaranteed interest accounts 13,759 13,558 Funding agreements 4,119 3,785 Interest-sensitive life contracts 40,364 39,228 Dividend accumulation and other deposit type funds 21,634 22,840 Total policyholders’ account balances $ 152,110 $ 150,338 Policyholders’ account balances primarily represent an accumulation of account deposits plus credited interest less withdrawals, expense charges and mortality charges, if applicable. These policyholders’ account balances also include provisions for benefits under non-life contingent payout annuities. Included in “Funding agreements” at December 31, 2019 and 2018 are $4,104 million and $3,755 million , respectively, related to the Company’s Funding Agreement Notes Issuance Program (“FANIP”). Under this program, which has a maximum authorized amount of $15 billion of medium-term notes and $3 billion of commercial paper, Delaware statutory trusts issue short-term commercial paper and/or medium-term notes to investors that are secured by funding agreements issued to the trusts by PICA. The outstanding commercial paper and notes have fixed or floating interest rates that range from 0.0% to 3.5% and original maturities ranging from two months to five years . Included in the amounts at December 31, 2019 and 2018 is the medium-term note liability, which is carried at amortized cost, of $2,414 million and $2,764 million , respectively and short-term note liability of $1,697 million and $997 million , respectively. Interest crediting rates range from 0% to 7.5% for interest-sensitive life contracts and from 0% to 13.3% for contracts other than interest-sensitive life. Less than 1% of policyholders’ account balances have interest crediting rates in excess of 8%. |
Certain Long-Duration Contracts
Certain Long-Duration Contracts with Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Certain Long-Duration Contracts With Guarantees | CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals (“return of net deposits”). In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues annuity contracts and single premium whole life contracts with market value adjusted investment options (“MVAs”). Annuity contracts with MVAs provide for a return of principal plus a fixed rate of return if held-to-maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are reallocated to other investment options. Single premium whole life contracts provide a market adjusted value upon surrender. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company also issues fixed deferred and immediate annuity contracts, some without MVA, that have a guaranteed credited rate and annuity benefit. In addition, the Company issues certain variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (“no-lapse guarantee”). Variable life and variable universal life contracts are offered with general and separate account options. The assets supporting the variable portion of all variable annuities are carried at fair value and reported as “Separate account assets” with an equivalent amount reported as “Separate account liabilities.” Amounts assessed against the contractholders for mortality, administration, and other services are included within revenue in “Policy charges and fee income” and changes in liabilities for minimum guarantees are generally included in “Policyholders’ benefits” or “Realized investment gains (losses), net.” For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, contract lapses and contractholder mortality. For guarantees of benefits that are payable at annuitization, the net amount at risk is generally defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including fixed income and equity market returns, timing of annuitization, contract lapses and contractholder mortality. For guarantees of benefits that are payable at withdrawal, the net amount at risk is generally defined as the present value of the minimum guaranteed withdrawal payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. For guarantees of accumulation balances, the net amount at risk is generally defined as the guaranteed minimum accumulation balance minus the current account balance. The Company’s primary risk exposures for these contracts relates to actual deviations from, or changes to, the assumptions used in the original pricing of these products, including equity market returns, interest rates, market volatility and contractholder behavior. The Company’s contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed may not be mutually exclusive. The liabilities related to the net amount at risk are reflected within “Future policy benefits.” As of December 31, 2019 and 2018 , the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2019 December 31, 2018 In the Event of Death At Annuitization / Accumulation(1) In the Event of Death At Annuitization / Accumulation(1) ($ in millions) Annuity Contracts Return of net deposits Account value $ 130,893 $ 16 $ 115,988 $ 21 Net amount at risk $ 244 $ 0 $ 922 $ 0 Average attained age of contractholders 67 years 75 years 66 years 72 years Minimum return or contract value Account value $ 32,609 $ 147,511 $ 30,631 $ 131,261 Net amount at risk $ 2,626 $ 4,578 $ 5,066 $ 8,235 Average attained age of contractholders 69 years 68 years 68 years 67 years Average period remaining until earliest expected annuitization N/A 2 months, 2 days N/A 1 month, 6 days __________ (1) Includes income and withdrawal benefits. December 31, 2019 2018 In the Event of Death ($ in millions) Variable Life, Variable Universal Life and Universal Life Contracts Separate account value $ 9,983 $ 8,752 General account value $ 18,225 $ 16,903 Net amount at risk $ 245,929 $ 246,644 Average attained age of contractholders 55 years 55 years Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2019 2018 (in millions) Equity funds $ 93,010 $ 78,626 Bond funds 60,074 57,477 Balanced funds 1,592 1,370 Money market funds 3,530 3,122 Total $ 158,206 $ 140,595 In addition to the amounts invested in separate account investment options above, $7,781 million at December 31, 2019 , and $8,104 million at December 31, 2018 , of account balances of variable annuity contracts with guarantees, inclusive of contracts with MVA features, were invested in general account investment options. For the years ended December 31, 2019 , 2018 and 2017 , there were no transfers of assets, other than cash, from the general account to any separate account, and accordingly no gains or losses recorded. Liabilities for Guarantee Benefits The table below summarizes the changes in general account liabilities for guarantees. The liabilities for GMDB and GMIB are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.” GMAB, GMWB and GMIWB are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits.” Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 6 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The Company maintains a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. Additionally, the Company externally reinsures the guaranteed benefit features associated with certain contracts. See Note 14 for further information regarding the external reinsurance arrangement. GMDB GMIB GMAB/GMWB/GMIWB Variable Life, Variable Universal Life and Universal Life Annuity Annuity Annuity (in millions) Balance at December 31, 2016 $ 4,143 $ 721 $ 474 $ 8,238 Incurred guarantee benefits(1) 685 37 (20 ) 479 Paid guarantee benefits (15 ) (74 ) (15 ) 0 Change in unrealized investment gains and losses 290 13 (30 ) 0 Other(2) 7 0 10 4 Balance at December 31, 2017 5,110 697 419 8,721 Incurred guarantee benefits(1) 791 125 (14 ) 206 Paid guarantee benefits (77 ) (88 ) (5 ) 0 Change in unrealized investment gains and losses (406 ) (20 ) (20 ) 0 Other(2) 0 (1 ) (2 ) 0 Balance at December 31, 2018 5,418 713 378 8,927 Incurred guarantee benefits(1) 1,492 82 (8 ) 3,905 Paid guarantee benefits (111 ) (69 ) (4 ) 0 Change in unrealized investment gains and losses 805 27 (15 ) 0 Other(2) (2 ) 0 4 (1 ) Balance at December 31, 2019 $ 7,602 $ 753 $ 355 $ 12,831 __________ (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives. (2) Other primarily represents foreign currency translation. The GMDB, which includes the liability for no-lapse guarantees, and GMIB liability are established when associated assessments (which include all policy charges including charges for administration, mortality, expense, surrender, and other, regardless of how characterized) are recognized. This liability is established using current best estimate assumptions and is based on the ratio of the present value of total expected excess payments (e.g., payments in excess of account value) over the life of the contract divided by the present value of total expected assessments (i.e., benefit ratio). The liability equals the current benefit ratio multiplied by cumulative assessments recognized to date, plus interest, less cumulative excess payments to date. Similar to as described above for DAC, the reserves are subject to adjustments based on annual reviews of assumptions and quarterly adjustments for experience, including market performance. These adjustments reflect the impact on the benefit ratio of using actual historical experience from the issuance date to the balance sheet date plus updated estimates of future experience. The updated benefit ratio is then applied to all prior periods’ assessments to derive an adjustment to the reserve recognized through a benefit or charge to current period earnings. The GMAB features provide the contractholder with a guaranteed return of initial account value or an enhanced value if applicable. The most significant of the Company’s GMAB features are the guaranteed return option features, which includes an automatic rebalancing element that reduces the Company’s exposure to these guarantees. The GMAB liability is calculated as the present value of future expected payments in excess of the account balance less the present value of future expected rider fees attributable to the embedded derivative feature. The GMWB features provide the contractholder with access to a guaranteed remaining balance if the account value is reduced to zero through a combination of market declines and withdrawals. The guaranteed remaining balance is generally equal to the protected value under the contract, which is initially established as the greater of the account value or cumulative deposits when withdrawals commence, less cumulative withdrawals. The contractholder also has the option, after a specified time period, to reset the guaranteed remaining balance to the then current account value, if greater. The contractholder accesses the guaranteed remaining balance through payments over time, subject to maximum annual limits. The GMWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. The GMIWB features, taken collectively, provide a contractholder two optional methods to receive guaranteed minimum payments over time, a “withdrawal” option or an “income” option. The withdrawal option (which was available under only one of the GMIWBs and is no longer offered) guarantees that a contractholder can withdraw an amount each year until the cumulative withdrawals reach a total guaranteed balance. The income option (which varies among the Company’s GMIWBs) in general guarantees the contractholder the ability to withdraw an amount each year for life (or for joint lives, in the case of any spousal version of the benefit) where such amount is equal to a percentage of a protected value under the benefit. The contractholder also has the potential to increase this annual amount, based on certain subsequent increases in account value that may occur. The GMIWB can be elected by the contractholder upon issuance of an appropriate deferred variable annuity contract or at any time following contract issue prior to annuitization. Certain GMIWB features include an automatic rebalancing element that reduces the Company’s exposure to these guarantees. The GMIWB liability is calculated as the present value of future expected payments to customers less the present value of future expected rider fees attributable to the embedded derivative feature. Sales Inducements The Company defers sales inducements and amortizes them over the anticipated life of the policy using the same methodology and assumptions used to amortize DAC. DSI is included in “Other assets.” The Company has offered various types of sales inducements including: (1) a bonus whereby the policyholder’s initial account balance is increased by an amount equal to a specified percentage of the customer’s initial deposit; (2) additional credits after a certain number of years a contract is held; and (3) enhanced interest crediting rates that are higher than the normal general account interest rate credited in certain product lines. Changes in DSI, reported as “Interest credited to policyholders’ account balances,” are as follows: Sales Inducements (in millions) Balance at December 31, 2016 $ 1,127 Capitalization 2 Amortization—Impact of assumption and experience unlocking and true-ups 157 Amortization—All other (105 ) Change in unrealized investment gains and losses (13 ) Balance at December 31, 2017 1,168 Capitalization 3 Amortization—Impact of assumption and experience unlocking and true-ups (6 ) Amortization—All other (166 ) Change in unrealized investment gains and losses 25 Balance at December 31, 2018 1,024 Capitalization 1 Amortization—Impact of assumption and experience unlocking and true-ups 108 Amortization—All other (163 ) Change in unrealized investment gains and losses (35 ) Balance at December 31, 2019 $ 935 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCE The Company participates in reinsurance with third parties primarily to provide additional capacity for future growth, limit the maximum net loss potential arising from large risks and acquire or dispose of businesses. Effective April 1, 2015, the Company entered into an agreement with Union Hamilton Reinsurance, Ltd. (“Union Hamilton”) an external counterparty, to reinsure approximately 50% of the Prudential Premier® Retirement Variable Annuity with Highest Daily Lifetime Income (“HDI”) v.3.0 business, a guaranteed benefit feature. This reinsurance agreement covered most new HDI v.3.0 variable annuity business issued between April 1, 2015 and December 31, 2016 on a quota share basis, with Union Hamilton’s cumulative quota share amounting to $2.9 billion of new rider premiums as of December 31, 2016. Reinsurance on business subject to this agreement remains in force for the duration of the underlying annuity contracts. New sales subsequent to December 31, 2016 are not covered by this external reinsurance agreement. These guaranteed benefit features are accounted for as embedded derivatives. In January 2013, the Company acquired the Hartford Life Business through reinsurance transactions with three subsidiaries of Hartford Financial Services Group, Inc. (“Hartford Financial”). Under the related agreements, the Company provided reinsurance for approximately 700,000 life insurance policies with net retained face amount in force of approximately $141 billion . The Company acquired the general account business through a coinsurance arrangement and, for certain types of general account policies, a modified coinsurance arrangement. The Company acquired the separate account business through a modified coinsurance arrangement. In December 2017, Hartford Financial announced a definitive agreement to sell a group of operating subsidiaries, which includes two of the Company’s counterparties to these reinsurance arrangements. The sale occurred in May 2018 and there was no impact to the terms, rights or obligations of the Company, or operation of these reinsurance arrangements, as a result of this change in control of such counterparties. Since 2011, the Company has entered into several reinsurance agreements to assume pension liabilities in the United Kingdom. Under these arrangements, the Company assumes the longevity risk associated with the pension benefits of certain specified beneficiaries. In 2006, the Company acquired the variable annuity business of The Allstate Corporation (“Allstate”) through a reinsurance transaction. The reinsurance arrangements with Allstate include a coinsurance arrangement associated with the general account liabilities assumed and a modified coinsurance arrangement associated with the separate account liabilities assumed. The reinsurance payable, which represents the Company’s obligation under the modified coinsurance arrangement, is netted with the reinsurance receivable in the Consolidated Statements of Financial Position. In 2004, the Company acquired the retirement business of CIGNA and subsequently entered into various reinsurance arrangements. The Company still has indemnity coinsurance and modified coinsurance without assumption arrangements in effect related to this acquisition. For the domestic business, life and disability reinsurance is accomplished through various plans of reinsurance, primarily yearly renewable term, per person excess, excess of loss, and coinsurance. On policies sold since 2000, the Company has reinsured a significant portion of the individual life mortality risk. Placement of reinsurance is accomplished primarily on an automatic basis with some specific risks reinsured on a facultative basis. The Company is authorized and has historically retained up to $30 million per life, but reduced its operating retention limit to $20 million per life in 2013. Retention in excess of the operating limit is on an exception basis. The international business primarily uses reinsurance to obtain experience with respect to certain new product offerings and to a lesser extent, to mitigate mortality risk for certain protection products and for capital management purposes. Reinsurance amounts included in the Consolidated Statements of Operations for premiums, policy charges and fee income, and policyholders’ benefits for the years ended December 31, are as follows: 2019 2018 2017 (in millions) Direct premiums $ 33,260 $ 35,048 $ 31,797 Reinsurance assumed 3,022 2,574 2,105 Reinsurance ceded (2,080 ) (1,843 ) (1,811 ) Premiums $ 34,202 $ 35,779 $ 32,091 Direct policy charges and fee income $ 5,252 $ 5,245 $ 4,541 Reinsurance assumed 1,181 1,189 1,176 Reinsurance ceded (455 ) (432 ) (414 ) Policy charges and fee income $ 5,978 $ 6,002 $ 5,303 Direct policyholders’ benefits $ 35,601 $ 38,079 $ 33,261 Reinsurance assumed 4,304 3,659 3,230 Reinsurance ceded (3,085 ) (2,334 ) (2,697 ) Policyholders’ benefits $ 36,820 $ 39,404 $ 33,794 Reinsurance recoverables at December 31, are as follows: 2019 2018 (in millions) Individual and group annuities(1) $ 688 $ 499 Life insurance(2) 5,535 4,335 Other reinsurance 403 162 Total reinsurance recoverables $ 6,626 $ 4,996 __________ (1) Primarily represents reinsurance recoverables established under the reinsurance arrangements associated with the acquisition of the retirement business of CIGNA. The Company has recorded reinsurance recoverables related to the acquisition of the retirement business of CIGNA of $553 million and $481 million at December 31, 2019 and 2018 , respectively. Also included is $95 million and $15 million of reinsurance recoverables at December 31, 2019 and 2018 , respectively, established under the reinsurance agreement with Union Hamilton related to the ceding of certain embedded derivative liabilities associated with the Company’s guaranteed benefits. (2) Includes $2,105 million and $2,035 million of reinsurance recoverables established at December 31, 2019 and 2018 , respectively, under the reinsurance arrangements associated with the acquisition of the Hartford Life Business. The Company has also recorded reinsurance payables related to the Hartford Life Business acquisition of $1,290 million and $1,259 million at December 31, 2019 and 2018 , respectively. Excluding the reinsurance recoverable associated with the acquisition of the Hartford Life Business and the retirement business of CIGNA, four major reinsurance companies account for approximately 60% of the reinsurance recoverable at December 31, 2019 . The Company periodically reviews the financial condition of its reinsurers, amounts recoverable therefrom, and unearned reinsurance premium, in order to reduce its exposure to loss from reinsurer insolvencies. If deemed necessary, the Company obtains collateral in the form of a trust, letter of credit, or funds withheld arrangement to ensure collectability; otherwise, an allowance for uncollectible reinsurance is recorded. Under the Company’s longevity reinsurance transactions, the Company obtains collateral from its counterparties to mitigate counterparty default risk. |
Closed Block
Closed Block | 12 Months Ended |
Dec. 31, 2019 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK On December 18, 2001, the date of demutualization, 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. See Note 22 for financial information on the Closed Block division. The insurance policies and annuity contracts comprising the Closed Block are managed in accordance with the Plan of Reorganization approved by the New Jersey Department of Banking and Insurance (“NJDOBI”) on December 18, 2001, and PICA is directly obligated for the insurance policies and annuity contracts in the Closed Block. The policies included in the Closed Block are specified individual life insurance policies and individual annuity contracts that were in force on the date of demutualization and for which PICA is currently paying or expects to pay experience-based policy dividends. Assets have been allocated to the Closed Block in an amount that has been determined to produce cash flows which, together with revenues from policies included in the Closed Block, are expected to be sufficient to support obligations and liabilities relating to these policies, including provision for payment of benefits, certain expenses and taxes and to provide for continuation of the policyholder dividend scales in effect in 2000, assuming experience underlying such scales continues. To the extent that, over time, cash flows from the assets allocated to the Closed Block and claims and other experience related to the Closed Block are, in the aggregate, more or less favorable than what was assumed when the Closed Block was established, total dividends paid to Closed Block policyholders may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect in 2000 had been continued. Any cash flows in excess of amounts assumed will be available for distribution over time to Closed Block policyholders and will not be available to shareholders. If the Closed Block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from PICA’s assets outside of the Closed Block. The Closed Block will continue in effect as long as any policy in the Closed Block remains in force unless, with the consent of the New Jersey insurance regulator, it is terminated earlier. The excess of Closed Block liabilities over Closed Block assets at the date of the demutualization (adjusted to eliminate the impact of related amounts in AOCI) represented the estimated maximum future earnings at that date from the Closed Block expected to result from operations attributed to the Closed Block after income taxes. In establishing the Closed Block, the Company developed an actuarial calculation of the timing of such maximum future earnings. If actual cumulative earnings of the Closed Block from inception through the end of any given period are greater than the expected cumulative earnings, only the expected earnings will be recognized in income. Any excess of actual cumulative earnings over expected cumulative earnings will represent undistributed accumulated earnings attributable to policyholders, which are recorded as a policyholder dividend obligation. The policyholder dividend obligation represents amounts to be paid to Closed Block policyholders as an additional policyholder dividend unless otherwise offset by future Closed Block performance that is less favorable than originally expected. If the actual cumulative earnings of the Closed Block from its inception through the end of any given period are less than the expected cumulative earnings of the Closed Block, the Company will recognize only the actual earnings in income. As of December 31, 2019 and 2018 , the Company recognized a policyholder dividend obligation of $2,816 million and $2,252 million , respectively, to Closed Block policyholders for the excess of actual cumulative earnings over the expected cumulative earnings. Additionally, accumulated net unrealized investment gains that have arisen subsequent to the establishment of the Closed Block have been reflected as a policyholder dividend obligation of $3,332 million and $899 million at December 31, 2019 and 2018 , respectively, to be paid to Closed Block policyholders unless offset by future experience, with a corresponding amount reported in AOCI. On December 8, 2017, PICA’s Board of Directors acted to decrease the dividends payable on Closed Block policies for 2018. On December 7, 2018, PICA’s Board of Directors approved a continuation of the dividends payable on Closed Block policies for 2019. On December 6, 2019, PICA’s Board of Directors acted to decrease the dividends payable on Closed Block policies for 2020. These actions resulted in a decrease of approximately $86 million for both years ending December 31, 2017 and 2018 and a decrease of approximately $79 million for the year ended December 31, 2019 in the liability for policyholders’ dividends recognized. Closed Block liabilities and assets designated to the Closed Block at December 31, as well as maximum future earnings to be recognized from these liabilities and assets, are as follows: 2019 2018 (in millions) Closed Block liabilities Future policy benefits $ 47,613 $ 48,282 Policyholders’ dividends payable 717 812 Policyholders’ dividend obligation 6,149 3,150 Policyholders’ account balances 4,973 5,061 Other Closed Block liabilities 4,049 3,955 Total Closed Block liabilities 63,501 61,260 Closed Block assets Fixed maturities, available-for-sale, at fair value 41,146 38,538 Fixed maturities, trading, at fair value 256 195 Equity securities, at fair value 2,245 1,784 Commercial mortgage and other loans 8,629 8,782 Policy loans 4,264 4,410 Other invested assets 3,333 3,316 Short-term investments 227 477 Total investments 60,100 57,502 Cash and cash equivalents 191 467 Accrued investment income 456 466 Other Closed Block assets 93 105 Total Closed Block assets 60,840 58,540 Excess of reported Closed Block liabilities over Closed Block assets 2,661 2,720 Portion of above representing accumulated other comprehensive income (loss): Net unrealized investment gains (losses) 3,280 857 Allocated to policyholder dividend obligation (3,332 ) (899 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,609 $ 2,678 Information regarding the policyholder dividend obligation is as follows: 2019 2018 (in millions) Balance, January 1 $ 3,150 $ 5,446 Cumulative effect adjustment from the adoption of ASU 2016-01(1) 0 157 Impact from earnings allocable to policyholder dividend obligation 564 (508 ) Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 2,435 (1,945 ) Balance, December 31 $ 6,149 $ 3,150 __________ (1) See Note 2 for details. Closed Block revenues and benefits and expenses for the years ended December 31, are as follows: 2019 2018 2017 (in millions) Revenues Premiums $ 2,207 $ 2,301 $ 2,524 Net investment income 2,332 2,298 2,669 Realized investment gains (losses), net 521 130 534 Other income (loss) 589 (39 ) 113 Total Closed Block revenues 5,649 4,690 5,840 Benefits and Expenses Policyholders’ benefits 2,906 2,972 3,220 Interest credited to policyholders’ account balances 130 132 133 Dividends to policyholders 2,187 1,236 2,007 General and administrative expenses 351 364 382 Total Closed Block benefits and expenses 5,574 4,704 5,742 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes 75 (14 ) 98 Income tax expense (benefit) 10 (78 ) 43 Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 65 $ 64 $ 55 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following schedule discloses significant components of income tax expense (benefit) for each year presented: Year Ended December 31, 2019 2018 2017 (in millions) Current tax expense (benefit): U.S. $ 86 $ (346 ) $ (47 ) State and local 2 7 11 Foreign 879 681 594 Total current tax expense (benefit) 967 342 558 Deferred tax expense (benefit): U.S.(1) 57 80 (2,552 ) State and local (1 ) 1 0 Foreign(1) (76 ) 399 556 Total deferred tax expense (benefit) (20 ) 480 (1,996 ) Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures 947 822 (1,438 ) Income tax expense (benefit) on equity in earnings of operating joint ventures 43 31 33 Income tax expense (benefit) on discontinued operations 0 0 0 Income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) 3,811 (1,812 ) 784 Stock-based compensation programs 0 0 (2 ) Total income taxes $ 4,801 $ (959 ) $ (623 ) _________ (1) Amounts for 2018 U.S. and foreign deferred tax expense have been revised to correct previously reported amounts. Reconciliation of Expected Tax at Statutory Rates to Reported Income Tax Expense (Benefit) The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017, and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2019 2018 2017 (in millions) Expected federal income tax expense (benefit) $ 1,068 $ 1,015 $ 2,270 Non-taxable investment income (270 ) (246 ) (369 ) Foreign taxes at other than U.S. rate 225 349 (249 ) Low-income housing and other tax credits (118 ) (112 ) (126 ) Changes in tax law 0 (321 ) (2,858 ) Other 42 137 (106 ) Reported income tax expense (benefit) $ 947 $ 822 $ (1,438 ) Effective tax rate 18.6 % 17.0 % (22.2 )% The effective tax rate is the ratio of “Total income tax expense (benefit)” divided by “Income before income taxes and equity in earnings of operating joint ventures.” The Company’s effective tax rate for fiscal years 2019, 2018 and 2017 was 18.6% , 17.0% and (22.2)% , respectively. The following is a description of items that had the most significant impact on the difference between the Company’s statutory U.S. federal income tax rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017, and the Company’s effective tax rate during the periods presented: Changes in Tax Law . The following is a list of notable changes in tax law that impacted the Company’s effective tax rate for the periods presented: Tax Act of 2017 - On December 22, 2017, the Tax Act of 2017 was enacted into U.S. law. As a result, the Company recognized a $2,880 million tax benefit in “Total income tax expense (benefit)” in the Company’s Consolidated Statements of Operations for the year ended December 31, 2017. In accordance with SEC Staff Accounting Bulletin 118, in 2017 the Company recorded the effects of the Tax Act of 2017 using reasonable estimates due to the need for further analysis of the provisions within the Tax Act of 2017 and collection, preparation and analysis of relevant data necessary to complete the accounting. During 2018, the Company completed the collection, preparation and analysis of data relevant to the Tax Act of 2017, and interpreted any additional guidance issued by the IRS, U.S. Department of the Treasury, or other standard-setting organizations, and recognized a $153 million reduction in income tax expense primarily related to refinements of our provisional estimates of earnings of affiliated foreign companies subject to the one-time toll charge. The financial statement impact related to the adoption of Tax Act of 2017 for the twelve months ended December 31, 2017 and twelve months ended December 31, 2018 was as follows: Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2018 Total (in millions) Deferred tax revaluation from tax law change $ (1,592 ) $ 7 $ (1,585 ) Adoption of modified territorial system (1,785 ) (24 ) (1,809 ) Deemed repatriation 497 (136 ) 361 Total provision for income tax expense (benefit) $ (2,880 ) $ (153 ) $ (3,033 ) 2018 Industry Issue Resolution (IIR). In August 2018, the IRS released a Directive to provide guidance on the tax reserving for guaranteed benefits within variable annuity contracts and principle-based reserves on certain life insurance contracts. Adopting the methodology specified in the Directive resulted in an accelerated deduction for the Company’s 2017 tax return, that would have otherwise been deductible in future years. Prior to the adoption of this Directive, the Company accounted for these future deductions as deferred tax assets measured using the current 21% corporate income tax rate. Upon adoption of the Directive, the tax benefits were revalued using the 35% tax rate applicable for the 2017 tax year and resulted in a reduction in income tax expense of $198 million . South Korea Tax Reform Bill. On December 19, 2017, South Korea enacted a 2018 tax reform bill that adds a new 25% corporate income tax bracket for taxable income in excess of ₩300 billion for tax years beginning on or after January 1, 2018. Taxable income in excess of ₩20 billion but less than ₩300 billion continues to be subject to a 22% corporate income tax. In addition, corporations continue to be subject to a local income surtax of 10% of the computed corporate income tax before the application of tax credits and exemptions (i.e., 2.5% for the tax base in excess of ₩300 billion, 2.2% for the tax base between ₩20 billion and ₩300 billion). After taking into account this 10% local income tax surcharge on corporate tax, the 2018 tax reform bill increased the top corporate income tax rate in South Korea from 24.2% to 27.5%. As a result, the Company recognized a $26 million tax expense in 2017 related to remeasuring Korea’s deferred tax assets and liabilities. Non-Taxable Investment Income . The U.S. Dividends Received Deduction (“DRD”) reduces the amount of dividend income subject to U.S. tax and accounts for most of the non-taxable investment income shown in the table above. More specifically, the U.S. DRD constitutes $122 million of the total $270 million of 2019 non-taxable investment income, $127 million of the total $246 million of 2018 non-taxable investment income, and $280 million of the total $369 million of 2017 non-taxable investment income. The DRD for the current period was estimated using information from 2018, current year investment results, and current year’s equity market performance. The actual current year DRD can vary based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD. Foreign Taxes at Other Than U.S. Rates . The statutory income tax rate in the Company’s two largest non-U.S. tax jurisdictions is approximately 28% in Japan and 24.2% in Korea as compared to the U.S. federal income tax rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017. The 952 Election. The Company made a tax election, effective for the 2017 and later tax years, to subject earnings from its insurance operations in Brazil to tax in the U.S. in the tax year earned, net of related foreign tax credits. This election has the effect of reducing the rate at which the Company will incur taxes on these earnings from the approximately 45% tax rate in Brazil to the 21% tax rate in the U.S., which in turn will reduce the amount of associated income tax expense in 2018 and thereafter. In conjunction with this election, the Company remeasured its related deferred tax assets from the previous 45% rate in Brazil to the new rate of 21% in the U.S., which resulted in additional income tax expense at the time of election. The net effect of the lower tax rate and the remeasurement of the deferred tax assets was a net increase in income tax expense of $34 million in 2018 and a net decrease in income tax expense of $3 million in 2019. In October 2019, the IRS issued a legal memorandum, applicable to all taxpayers, in which the IRS argues that the election became inoperable in 1998. The Company disagrees with the IRS’s position and intends to defend its position. If the Company is ultimately not successful, it will not be able to claim a U.S. tax credit for the Brazil taxes in excess of the U.S. tax rate, and thus will have a higher tax expense over time. Low-Income Housing and Other Tax Credits . These amounts include incentives within the U.S. tax code for the development of affordable housing aiming at low-income Americans. The Company routinely makes such investments that generate a tax credit which reduces the Company’s effective tax rate. Other . This line item represents insignificant reconciling items that are individually less than 5% of the computed expected federal income tax expense (benefit) and have therefore been aggregated for purposes of this reconciliation in accordance with relevant disclosure guidance. Schedule of Deferred Tax Assets and Deferred Tax Liabilities As of December 31, 2019 2018 (in millions) Deferred tax assets: Insurance reserves $ 730 $ 0 Policyholders’ dividends 1,365 733 Net operating and capital loss carryforwards 189 155 Refundable AMT credits 0 205 Employee benefits 973 693 Investments 0 1,002 Other 113 39 Deferred tax assets before valuation allowance 3,370 2,827 Valuation allowance (136 ) (117 ) Deferred tax assets after valuation allowance 3,234 2,710 Deferred tax liabilities: Insurance reserves 0 719 Net unrealized investment gains 11,109 5,961 Deferred policy acquisition costs 3,799 3,888 Investments 138 0 Value of business acquired 262 461 Deferred tax liabilities 15,308 11,029 Net deferred tax liability $ (12,074 ) $ (8,319 ) The application of U.S. GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused. Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized. A valuation allowance has been recorded against deferred tax assets related to federal, state and local taxes and foreign operations. Adjustments to the valuation allowance are made to reflect changes in management’s assessment of the amount of the deferred tax asset that is realizable and the amount of deferred tax asset actually realized during the year. The valuation allowance includes amounts recorded in connection with deferred tax assets as follows: Federal State Foreign Operations Total (in millions) Balance at January 1, 2017 $ 0 $ 138 $ 25 $ 163 Charged to costs and expenses 0 63 3 66 Other adjustments 0 (5 ) (10 ) (15 ) Balance at December 31, 2017 0 196 18 214 Charged to costs and expenses 0 24 (6 ) 18 Other adjustments 0 (114 ) (1 ) (115 ) Balance at December 31, 2018 0 106 11 117 Charged to costs and expenses 3 34 (5 ) 32 Other adjustments 0 (13 ) 0 (13 ) Balance at December 31, 2019 $ 3 $ 127 $ 6 $ 136 The following table sets forth the amount and expiration dates of federal, state and foreign operating losses, capital loss and foreign tax credit carryforwards for tax purposes, as of the periods indicated: As of December 31, 2019 2018 (in millions) Federal net operating and capital loss carryforwards(1) $ 33 $ 0 State net operating and capital loss carryforwards(2) $ 2,005 $ 2,152 Foreign net operating and capital loss carryforwards(3) $ 203 $ 99 Federal foreign tax credit carryforwards(4) $ 4 $ 0 __________ (1) Expires in 2024. (2) Expires between 2020 and 2039. (3) $124 million expires between 2021 and 2035 and $79 million has an unlimited carryforward. Prior year balance has been updated to conform with current period presentation. (4) Expires in 2029. Consistent with the Tax Act of 2017, the Company provides applicable U.S. income tax for all unremitted earnings of the Company’s foreign affiliates. For certain foreign affiliates organized in withholding tax jurisdictions, the Company considers the unremitted foreign earnings of those affiliates to be indefinitely reinvested, and therefore does not provide for the withholding tax when calculating its current and deferred tax obligations. For certain other foreign affiliates organized in withholding tax jurisdictions, the Company does not consider unremitted earnings indefinitely reinvested, and therefore provides for foreign withholding tax when calculating its current and deferred tax obligations. The following table summarizes the Company’s indefinite reinvestment assertions for jurisdictions in which the Company operates that impose a withholding tax on dividends or may be subject to other foreign country tax upon a remittance: Unremitted earnings are indefinitely reinvested Unremitted earnings are not indefinitely reinvested Insurance operations in Chile, China, and Taiwan and non-insurance operations in Korea and certain operations in Luxembourg Insurance operations in Argentina, Indonesia, and Ghana, and non-insurance operations in China, Italy and Taiwan, as well as partially for the insurance operation in Korea During the fourth quarter of 2017, in light of and for the period after the Tax Act of 2017, the Company determined that all unremitted earnings of the Company’s foreign operations are not considered indefinitely reinvested for purposes of determining U.S. tax liability, as well as determining whether the unremitted earnings of the Company’s foreign operations are considered indefinitely reinvested for purposes of determining its foreign withholding tax liability, as described above. Prior to the enactment of the Tax Act of 2017, for the Japanese insurance operations, the Company provided for U.S. income taxes on pre-2014 U.S. GAAP earnings, post-2013 realized and unrealized capital gains, and an additional amount from Gibraltar Life and Prudential Gibraltar Financial Life Insurance Co. Ltd. (“PGFL”), not to exceed the deferred tax asset recorded in the Statement of Financial Position as of the acquisition date for PGFL and the Star and Edison Businesses. The Company had no change to its U.S. tax in “Income (loss) before equity in earnings of operating joint ventures” during 2017. During the first and second quarters of 2018, respectively, the Company determined that the earnings of its Polish and Italian insurance operation would be repatriated to the U.S. Accordingly, earnings of the Polish and Italian insurance operations were not considered indefinitely reinvested, and the Company recognized an income tax expense of $10 million during 2018. During the first and fourth quarters of 2018, the Company determined that a portion of the earnings of its Korean insurance operation would be repatriated to the U.S. Accordingly, a portion of the earnings of the Korean insurance operation were not considered indefinitely reinvested, and the Company recognized an income tax expense of $14 million in “Income (loss) before equity in earnings of operating joint ventures” during 2018. The Company made no changes with respect to its repatriation assumptions in 2019. The following table sets forth the undistributed earnings of foreign subsidiaries, where the Company assumes indefinite reinvestment of such earnings and for which, in 2019, 2018, and 2017, U.S. deferred taxes have not been provided, and for which, in 2017 and 2018, foreign deferred withholding taxes have not been provided. The net tax liability that may arise if the 2019 earnings were remitted can range from $0 to $235 million which includes any foreign exchange impacts. At December 31, 2019 2018 2017 (in millions) Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment for U.S. tax purposes)(1) N/A N/A N/A Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment only for Withholding or other non-U.S. Taxes) $ 2,764 $ 2,475 $ 2,603 __________ (1) Consistent with the Tax Act of 2017, the Company provides U.S. income tax for all unremitted earnings of the Company’s foreign affiliates as of December 31, 2017. The Company’s “Income (loss) before income taxes and equity in earnings of operating joint ventures” includes income from domestic operations of $1,985 million , $1,447 million and $2,541 million , and income (loss) from foreign operations of $3,101 million , $3,387 million and $3,945 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Tax Audit and Unrecognized Tax Benefits The Company’s liability for income taxes includes the liability for unrecognized tax benefits and interest that relate to tax years still subject to review by the IRS or other taxing authorities. The completion of review or the expiration of the Federal statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The following table reconciles the total amount of unrecognized tax benefits at the beginning and end of the periods indicated. 2019 2018 2017 (in millions) Balance at January 1, $ 20 $ 45 $ 26 Increases in unrecognized tax benefits—prior years 0 20 11 (Decreases) in unrecognized tax benefits—prior years (2 ) 0 (5 ) Increases in unrecognized tax benefits—current year 0 0 14 (Decreases) in unrecognized tax benefits—current year 0 0 0 Settlements with taxing authorities 0 (45 ) (1 ) Balance at December 31, $ 18 $ 20 $ 45 Unrecognized tax benefits that, if recognized, would favorably impact the effective rate $ 0 $ 0 $ 45 The Company does not anticipate any significant changes within the next twelve months to its total unrecognized tax benefits related to tax years for which the statute of limitations has not expired. The Company classifies all interest and penalties related to tax uncertainties as income tax expense (benefit). The amounts recognized in the consolidated financial statements for tax-related interest and penalties for the years ended December 31 are as follows: 2019 2018 2017 (in millions) Interest and penalties recognized in the Consolidated Statements of Operations $ 1 $ 1 $ (3 ) 2019 2018 (in millions) Interest and penalties recognized in liabilities in the Consolidated Statements of Financial Position $ 2 $ 1 Listed below are the tax years that remain subject to examination, by major tax jurisdiction, as of December 31, 2019 : Major Tax Jurisdiction Open Tax Years United States 2015-2019 Japan Fiscal years ended March 31, 2015-2019 Korea 2014-2019 The Company participates in the IRS’s Compliance Assurance Program. Under this program, the IRS assigns an examination team to review completed transactions as they occur in order to reach agreement with the Company on how they should be reported in the relevant tax returns. If disagreements arise, accelerated resolutions programs are available to resolve the disagreements in a timely manner. Some of the Company’s affiliates in Japan file a consolidated tax return, while others file separate tax returns. The Company’s affiliates in Japan are subject to audits by the local taxing authority. The general statute of limitations is five years from when the return is filed. The Japanese National Tax Service conducted tax audits of some non-insurance companies during the reporting period, which had no material impact on the Company’s 2017 , 2018 or 2019 results. The Company’s affiliates in South Korea file separate tax returns and are subject to audits by the local taxing authority. The general statute of limitations is five years from when the return is filed. In December 2019, the Korean tax authority informed Prudential of Korea that during 2020 they intend to conduct a tax audit of its 2015, 2016, and 2017 tax years. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 12 Months Ended |
Dec. 31, 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 at December 31, for the years indicated as follows: 2019 2018 ($ in millions) Commercial paper: Prudential Financial $ 25 $ 15 Prudential Funding, LLC 524 727 Subtotal commercial paper 549 742 Mortgage Debt(1) 0 53 Current portion of long-term debt: Senior Notes 1,179 1,100 Mortgage Debt 192 57 Surplus Notes 0 499 Subtotal Current portion of long-term debt 1,371 1,656 Other(2) 13 0 Total short-term debt(3) $ 1,933 $ 2,451 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 224 $ 301 Daily average commercial paper outstanding for the quarter ended $ 1,702 $ 1,554 Weighted average maturity of outstanding commercial paper, in days 6 12 Weighted average interest rate on outstanding commercial paper(4) 1.61 % 2.41 % __________ (1) Includes $53 million of mortgage debt denominated in foreign currency at December 31, 2018. (2) Includes $13 million drawn on a revolving line of credit held by a subsidiary at December 31, 2019. (3) Includes Prudential Financial debt of $1,204 million and $1,115 million at December 31, 2019 and 2018 , respectively. (4) Prior period interest rate has been updated to conform to current period presentation. At December 31, 2019 and 2018 , the Company was in compliance with all covenants related to the above debt. Commercial Paper Prudential Financial has a commercial paper program with an authorized capacity of $3.0 billion . Prudential Financial’s commercial paper borrowings have generally been used to fund the working capital needs of Prudential Financial’s subsidiaries and provide short-term liquidity at Prudential Financial. Prudential Funding, LLC (“Prudential Funding”), a wholly-owned subsidiary of PICA, has a commercial paper program, with an authorized capacity of $7.0 billion . Prudential Funding commercial paper borrowings generally have served as an additional source of financing to meet the working capital needs of PICA and its subsidiaries. Prudential Funding also lends to other subsidiaries of Prudential Financial up to limits agreed with the NJDOBI. Prudential Funding maintains a support agreement with PICA whereby PICA has agreed to maintain Prudential Funding’s tangible net worth at a positive level. Additionally, Prudential Financial has issued a subordinated guarantee covering Prudential Funding’s $7.0 billion commercial paper program. Federal Home Loan Bank of New York PICA is a member of the FHLBNY. Membership allows PICA access to the FHLBNY’s financial services, including the ability to obtain collateralized loans and to issue collateralized funding agreements. Under applicable law, the funding agreements issued to the FHLBNY have priority claim status above debt holders of PICA. FHLBNY borrowings and funding agreements are collateralized by qualifying mortgage-related assets or U.S. Treasury securities, the fair value of which must be maintained at certain specified levels relative to outstanding borrowings. FHLBNY membership requires PICA to own member stock and borrowings require the purchase of activity-based stock in an amount equal to 4.5% of outstanding borrowings. Under FHLBNY guidelines, if any of PICA’s financial strength ratings decline below A-/A3/A- Negative by S&P/Moody’s/Fitch, respectively, and the FHLBNY does not receive written assurances from the NJDOBI regarding PICA’s solvency, new borrowings from the FHLBNY would be limited to a term of 90 days or less. Currently there are no restrictions on the term of borrowings from the FHLBNY. All FHLBNY stock purchased by PICA is classified as restricted general account investments within “Other invested assets,” and the carrying value of these investments was $30.2 million and $29.9 million as of December 31, 2019 and 2018 , respectively. NJDOBI permits PICA to pledge collateral to the FHLBNY in an amount of up to 5% of its prior year-end statutory net admitted assets, excluding separate account assets. Based on PICA’s statutory net admitted assets as of December 31, 2018 , the 5% limitation equates to a maximum amount of eligible assets of $6.7 billion and an estimated maximum borrowing capacity (after taking into account required collateralization levels) of approximately $5.9 billion . Nevertheless, FHLBNY borrowings are subject to the FHLBNY’s discretion and to the availability of qualifying assets at PICA. PICA had no advances outstanding under the FHLBNY facility as of December 31, 2019 . In February 2020, PICA issued a $1 billion funding agreement with a seven-year term under this facility. Federal Home Loan Bank of Boston Prudential Retirement Insurance and Annuity Company (“PRIAC”) is a member of the Federal Home Loan Bank of Boston (“FHLBB”). Membership allows PRIAC access to collateralized advances which will be classified in “Short-term debt” or “Long-term debt,” depending on the maturity date of the obligation. PRIAC’s membership in FHLBB requires the ownership of member stock and borrowings from FHLBB require the purchase of activity-based stock in an amount between 3.0% and 4.5% of outstanding borrowings, depending on the maturity date of the obligation. All FHLBB stock purchased by PRIAC is classified as restricted general account investments within “Other invested assets,” and the carrying value of these investments was $6 million and $10 million as of December 31, 2019 and 2018 , respectively. As of December 31, 2019 , PRIAC had no advances outstanding under the FHLBB facility. Under Connecticut state insurance law, without the prior consent of the Connecticut Insurance Department, the amount of assets insurers may pledge to secure debt obligations is limited to the lesser of 5% of prior-year statutory admitted assets or 25% of prior-year statutory surplus, resulting in a maximum borrowing capacity for PRIAC under the FHLBB facility of approximately $271 million as of December 31, 2019 . Surplus Notes In August 2019, as a result of the note holders’ exercise of the exchange option on $500 million of surplus notes, 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. Credit Facilities As of December 31, 2019 , the Company maintained syndicated, unsecured committed credit facilities as described below. Borrower Original Term Expiration Date Capacity Amount Outstanding (in millions) Prudential Financial and Prudential Funding 5 years Jul 2022 $ 4,000 $ 0 Prudential Holdings of Japan, Inc. 5 years Sep 2024 ¥ 100,000 ¥ 0 The $4.0 billion five-year credit facility contains customary representations and warranties, covenants and events of default and borrowings are not contingent on the borrowers’ credit ratings nor subject to material adverse change clauses. Borrowings under this facility are conditioned on the continued satisfaction of customary conditions, including Prudential Financial’s maintenance of consolidated net worth of at least $20.958 billion , which is calculated as U.S. GAAP equity, excluding AOCI, equity of noncontrolling interests and equity attributable to the Closed Block. The Company expects that it may borrow under the facility from time to time to fund its working capital needs. In addition, amounts under this credit facility may be drawn in the form of standby letters of credit that can be used to meet the Company’s operating needs. The ¥100 billion five-year facility was entered into by Prudential Holdings of Japan, Inc. (“PHJ”) in September 2019. This facility also contains customary representations and warranties, covenants, and events of default and borrowings are not contingent on the borrower’s credit ratings nor subject to material adverse change clauses. Borrowings under each of these credit facilities may be used for general corporate purposes. As of December 31, 2019 , the Company was in compliance with the covenants under each of these credit facilities. In addition to the above credit facilities, the Company had access to $370 million of certain other lines of credit at December 31, 2019 , of which $160 million was for the sole use of certain real estate separate accounts. The separate account facilities include loan-to-value ratio requirements and other financial covenants, and recourse on obligations under these facilities is limited to the assets of the applicable separate account. At December 31, 2019 , $19 million of these credit facilities were used. The Company also has access to uncommitted lines of credit from financial institutions. Put Option Agreement for Senior Debt Issuance In November 2013, Prudential Financial entered into a ten-year put option agreement with a Delaware trust upon the completion of the sale of $1.5 billion of trust securities by that Delaware trust in a Rule 144A private placement. The trust invested the proceeds from the sale of the trust securities in a portfolio of principal and interest strips of U.S. Treasury securities. The put option agreement provides Prudential Financial the right to sell to the trust at any time up to $1.5 billion of 4.419% senior notes due November 2023 and receive in exchange a corresponding amount of the principal and interest strips of U.S. Treasury securities held by the trust. In return, the Company agreed to pay a semi-annual put premium to the trust at a rate of 1.777% per annum applied to the unexercised portion of the put option. The put option agreement with the trust provides Prudential Financial with a source of liquid assets. The put option described above will be exercised automatically in full upon the Company’s failure to make certain payments to the trust, such as paying the put option premium or reimbursing the trust for its expenses, if the Company’s failure to pay is not cured within 30 days , and upon an event involving its bankruptcy. The Company is also required to exercise the put option if its consolidated stockholders’ equity, calculated in accordance with U.S. GAAP but excluding AOCI, falls below $7.0 billion , subject to adjustment in certain cases. The Company has a one-time right to unwind a prior voluntary exercise of the put option by repurchasing all of the senior notes then held by the trust in exchange for principal and interest strips of U.S. Treasury securities. Finally, any of the 4.419% senior notes that Prudential Financial issues may be redeemed prior to their maturity at par or, if greater, a make-whole price, following a voluntary exercise in full of the put option. Long-term Debt The table below presents the Company’s long-term debt at December 31, for the years indicated as follows: Maturity Dates Rate(1) December 31, 2019 2018 ($ in millions) Fixed-rate notes: Surplus notes 2025 8.30% $ 342 $ 341 Surplus notes subject to set-off arrangements 2021-2038 3.52%-5.26% 7,484 6,895 Senior notes 2021-2051 1.35%-11.31% 10,084 8,774 Mortgage debt(2) 2021-2027 2.95%-3.85% 104 237 Floating-rate notes: Line of Credit 2022 3.10%-3.75% 300 0 Surplus notes subject to set-off arrangements 2024-2037 3.48%-4.20% 2,265 2,200 Senior notes - 0 29 Mortgage debt(3) 2021-2024 2.36%-4.67% 241 429 Junior subordinated notes(4) 2042-2058 1.55%-5.88% 7,575 7,568 Subtotal 28,395 26,473 Less: assets under set-off arrangements(5) 9,749 9,095 Total long-term debt(6) $ 18,646 $ 17,378 __________ (1) Ranges of interest rates are for the year ended December 31, 2019 . (2) Includes $43 million and $ 101 million of debt denominated in foreign currency at December 31, 2019 and 2018 , respectively. (3) Includes $53 million and $ 206 million of debt denominated in foreign currency at December 31, 2019 and 2018 , respectively. (4) Includes Prudential Financial debt of $7,518 million and subsidiary debt of $57 million denominated in foreign currency at December 31, 2019. (5) Assets under set-off arrangements represent a reduction in the amount of surplus notes included in long-term debt, resulting from an arrangement where valid rights of set-off exist and it is the intent of both parties to settle on a net basis under legally enforceable arrangements. These assets include available-for-sale securities that are reported at fair value. (6) Includes Prudential Financial debt of $17,430 million and $16,141 million at December 31, 2019 and 2018 , respectively. At December 31, 2019 and 2018 , the Company was in compliance with all debt covenants related to the borrowings in the table above. The following table presents the contractual maturities of the Company’s long-term debt as of December 31, 2019 : Calendar Year 2021 2022 2023 2024 2025 and thereafter Total (in millions) Long-term debt $ 491 $ 436 $ 245 $ 725 $ 16,750 $ 18,646 Surplus Notes As of December 31, 2019 , the Company had $342 million of fixed-rate surplus notes outstanding. These notes are subordinated to other PICA borrowings and policyholder obligations, and the payment of interest and principal may only be made with the prior approval of the NJDOBI. The NJDOBI could prohibit the payment of the interest and principal on the surplus notes if certain statutory capital requirements are not met. At December 31, 2019 and 2018 , the Company met these statutory capital requirements. From 2011 through 2013, a captive reinsurance subsidiary entered into agreements providing for the issuance and sale of up to $2 billion of ten-year fixed-rate surplus notes. The aggregate amount available to be issued under these agreements was reduced to $1.75 billion in 2018. The agreements were restructured in 2019 to provide for financing in the same amount through 2036. Under the agreements, the captive receives in exchange for the surplus notes one or more credit-linked notes issued by a special-purpose subsidiary of the Company in an aggregate principal amount equal to the surplus notes issued. The captive holds the credit-linked notes as assets supporting the non-economic portion of the statutory reserve required to be held by the Company’s domestic insurance subsidiaries under Regulation XXX in connection with the reinsurance of term life insurance policies through the captive. The non-economic portion of the statutory reserve equals the difference between the statutory reserve required under Regulation XXX and the amount the Company considers necessary to maintain solvency for moderately adverse experience. The principal amount of the outstanding credit-linked notes is redeemable by the captive in cash upon the occurrence of, and in an amount necessary to remedy, a specified liquidity stress event affecting the captive. Under the agreements, external counterparties have agreed to fund any such payment under the credit-linked notes in return for a fee. Prudential Financial has agreed to reimburse one of the external counterparties for any payment under the credit-linked notes funded by it in an amount of up to $0.5 billion . As of December 31, 2019 , an aggregate of $1.75 billion of surplus notes were outstanding under these agreements and no such payments under the credit-linked notes have been required. In December 2013, a captive reinsurance subsidiary entered into a twenty-year financing facility with external counterparties providing for the issuance and sale of a surplus note for the financing of non-economic reserves required under Guideline AXXX. The current financing capacity available under the facility is $3.5 billion , but can be increased to a maximum potential size of $4.5 billion . The captive receives in exchange for the surplus note one or more credit-linked notes issued by a special-purpose affiliate in an aggregate principal amount equal to the surplus note. The principal amount of the outstanding credit-linked notes is redeemable by the captive in cash upon the occurrence of, and in an amount necessary to remedy, a specified liquidity stress event, and the external counterparties have agreed to fund any such payment. Prudential Financial has agreed to reimburse the captive for investment losses in excess of specified amounts; however, Prudential Financial has no other reimbursement obligations to the external counterparties under this facility. As of December 31, 2019 , an aggregate of $3.25 billion of surplus notes were outstanding under the facility and no credit-linked note payments have been required. In December 2014, a captive reinsurance subsidiary entered into a financing facility with external counterparties, pursuant to which the captive agreed to issue and sell a surplus note with a ten-year term in an aggregate principal amount of up to $1.75 billion in return for an equal principal amount of credit-linked notes issued by a special-purpose affiliate. In December 2017, the Company increased the maximum potential size of the facility to $2.4 billion , of which $650 million has a twenty-year term. The captive holds the credit-linked notes as assets supporting non-economic reserves required to be held by the Company’s domestic insurance subsidiaries under Regulation XXX. The principal amount of the outstanding credit-linked notes is redeemable by the captive in cash upon the occurrence of, and in an amount necessary to remedy, a specified liquidity stress event affecting the captive. Under the agreements, external counterparties have agreed to fund any such payment under the credit-linked notes in return for a fee. Prudential Financial has no reimbursement obligations to the external counterparties under this facility. As of December 31, 2019 , an aggregate of $2.27 billion of surplus notes were outstanding under the facility and no credit-linked note payments have been required. Another captive reinsurance subsidiary maintains a financing facility with external counterparties, pursuant to which the captive has outstanding $ 2.36 billion in principal amount of surplus notes and received in return an equal principal amount of credit-linked notes issued by a special-purpose affiliate. The remaining term of the financing is approximately fifteen years . The captive holds the credit-linked notes as assets supporting non-economic reserves required to be held by the Company’s domestic insurance subsidiaries under Regulation XXX. The captive can redeem the credit-linked notes in cash upon the occurrence of, and in an amount necessary to remedy, a liquidity stress event affecting the captive. Current capacity of this financing facility is $2.45 billion . Prudential Financial has agreed to make capital contributions to the captive and to the special-purpose affiliate to reimburse them for investment losses in excess of specified amounts. Prudential Financial has also agreed to reimburse one of the external counterparties for any payments under the credit-linked notes funded by it in an amount of up to $1.0 billion . In March 2017, a captive reinsurance subsidiary entered into a twenty-year financing facility with external counterparties providing for the issuance and sale of a surplus note for the financing of non-economic reserves required under Guideline AXXX. The initial financing capacity available under the facility was $1.0 billion . In June 2018, the Company amended this captive financing facility by increasing the maximum potential size of the facility to $2.0 billion . The captive receives in exchange for the surplus note one or more credit-linked notes issued by a special-purpose affiliate in an aggregate principal amount equal to the surplus note. The principal amount of the outstanding credit-linked notes is redeemable by the captive in cash upon the occurrence of, and in an amount necessary to remedy, a specified liquidity stress event, and the external counterparties have agreed to fund any such payment. Prudential Financial has no reimbursement obligations to the external counterparties under this facility. As of December 31, 2019, an aggregate of $1.47 billion of surplus notes were outstanding under the facility and no credit-linked note payments have been required. In March 2018, the Company established a new $1.6 billion captive financing facility to finance non-economic reserves required under Regulation XXX. Similar to the Company’s other captive financing facilities, a captive reinsurance subsidiary issues surplus notes under the facility in exchange for credit-linked notes issued by a special-purpose affiliate that are held to support non-economic reserves. The credit-linked notes are redeemable for cash upon the occurrence of a liquidity stress event affecting the captive and external counterparties have agreed to fund these payments. Prudential Financial has no reimbursement obligations to the external counterparties under this facility. As of December 31, 2019, $920 million of surplus notes were outstanding under the facility and no credit-linked note payments have been required. Under each of the above transactions for the captive reinsurance subsidiaries, because valid rights of set-off exist, interest and principal payments on the surplus notes and on the related credit-linked notes are settled on a net basis, and the surplus notes are reflected in the Company’s total consolidated borrowings on a net basis. The surplus notes for the captive reinsurance subsidiaries described above are subordinated to policyholder obligations, and for certain applicable surplus notes, the repayment of principal may only be made with prior approval of the Arizona Department of Insurance. The payment of interest on the surplus notes has been approved by the Arizona Department of Insurance, subject to its ability to withdraw that approval. In February 2015, Prudential Legacy Insurance Company of New Jersey (“PLIC”) entered into a twenty-year financing facility with certain external counterparties and a special-purpose affiliate, pursuant to which PLIC may, at its option and subject to the satisfaction of customary conditions, issue and sell to the affiliate up to $4.0 billion in aggregate principal amount of surplus notes, in return for an equal principal amount of credit-linked notes. Upon issuance, PLIC would hold any credit-linked notes as assets to support future statutory surplus needs within PLIC. As of December 31, 2019 , an aggregate of $100 million of surplus notes were outstanding under the facility and no credit-linked note payments have been required. Senior Notes Medium-Term Notes Program. The Company maintains a medium-term notes program under its shelf registration statement with an authorized issuance capacity of $20.0 billion . As of December 31, 2019 , the outstanding balance of medium-term notes under this program was $9.34 billion , of which $1.15 billion is included in current portion of long-term debt. This is an increase of $1.4 billion from December 31, 2018 . The increase was due to the issuance of $1 billion of medium-term notes with an interest rate of 4.350% maturing in February 2050 and $1.5 billion of notes with an interest rate of 3.700% maturing in 2051, offset by $1,100 million of maturities in March and August 2019. Retail Medium-Term Notes Program. The Company maintains a retail medium-term notes program under its shelf registration statement with an authorized issuance capacity of $5.0 billion . As of December 31, 2019 , the outstanding balance of the program was $302 million , of which $29 million is included in current portion of long-term debt. The weighted average interest rate on outstanding senior notes issued under these programs, including the effect of interest rate hedging activity, was 4.85% and 5.04% for the years ended December 31, 2019 and 2018 , respectively, excluding the effect of debt issued to consolidated subsidiaries. Funding Agreement Notes Issuance Program (“FANIP”). The Company maintains a FANIP in which statutory trusts issue medium-term notes and commercial paper secured by funding agreements issued to the trusts by PICA. These obligations are included in “Policyholders’ account balances” and not included in the foregoing table. See Note 12 for further discussion of these obligations. Mortgage Debt . As of December 31, 2019 , the Company’s subsidiaries had long-term mortgage debt of $537 million that has recourse only to real estate property held for investment by those subsidiaries. This represents a decrease of $239 million from December 31, 2018 , primarily due to $288 million of prepayment activity, offset by new borrowings in 2019 of $ 47 million and foreign exchange fluctuations of $ 2 million . Junior Subordinated Notes Certain of Prudential Financial’s junior subordinated notes outstanding are considered hybrid securities that receive enhanced equity treatment from the rating agencies. These notes outstanding, along with their key terms, are as follows: Issue Date Principal Amount Initial Interest Rate Investor Type Optional Redemption Date Interest Rate Subsequent to Optional Redemption Date Maturity Date ($ in millions) Aug-12 $ 1,000 5.88 % Institutional 9/15/2022 LIBOR + 4.18% 9/15/2042 Nov-12 $ 1,500 5.63 % Institutional 6/15/2023 LIBOR + 3.92% 6/15/2043 Dec-12 $ 575 5.75 % Retail 12/4/2017 5.75% 12/15/2052 Mar-13 $ 710 5.70 % Retail 3/15/2018 5.70% 3/15/2053 Mar-13 $ 500 5.20 % Institutional 3/15/2024 LIBOR + 3.04% 3/15/2044 May-15 $ 1,000 5.38 % Institutional 5/15/2025 LIBOR + 3.03% 3/15/2045 Sep-17 $ 750 4.50 % Institutional 9/15/2027 LIBOR + 2.38% 9/15/2047 Aug-18 $ 565 5.63 % Retail 8/13/2023 5.63% 8/13/2058 Sep-18 $ 1,000 5.70 % Institutional 9/15/2028 LIBOR + 2.67% 9/15/2048 The Company has the right to defer interest payments on these notes for specified periods, typically 5 to 10 years without resulting in a default, during which time interest will be compounded. On or after the optional redemption dates, Prudential Financial may redeem the notes at par plus accrued and unpaid interest. Prior to those optional redemption dates, redemptions generally are subject to a make-whole price; however, the Company may redeem the notes prior to these dates at par upon the occurrence of certain events, such as a future change in the regulatory capital treatment of the notes with respect to the Company. Limited Recourse Notes. In 2014, the Company entered into financing transactions pursuant to which it issued $500 million of limited recourse notes and, in return, obtained $500 million of asset-backed notes issued by a designated series of a Delaware master trust. The asset-backed notes mature from 2020 through 2026; however, the maturity date of a portion of the notes may be extended by the Company through 2028, subject to conditions. The master trust’s payment obligations under each of the asset-backed notes are secured by corresponding payment obligations of a third-party financial institution and a portfolio of specified assets that have an aggregate value at least equal to the principal amount of the applicable asset-backed note. The principal amount of each asset-backed note is payable to PRIAC in cash at any time upon demand by PRIAC or, if not repaid earlier, at maturity. Each of the limited recourse notes obligates Prudential Financial to reimburse the applicable third-party financial institution for any principal payments received on the corresponding asset-backed note, but there is no obligation to reimburse any portion of a principal payment that is needed by PRIAC to pay then current claims to its policyholders. Each limited recourse note bears interest at a rate equal to the rate on the corresponding asset-backed note, plus an amount representing fees payable to the applicable third-party financial institution. As of December 31, 2019 , no principal payments have been received or are currently due on the asset-backed notes and, as a result, there was no payment obligation under the limited recourse notes. Accordingly, the notes are not reflected in the Consolidated Financial Statements as of December 31, 2019 . Interest Expense In order to modify exposure to interest rate and currency exchange rate movements, the Company utilizes derivative instruments, primarily interest rate swaps, in conjunction with some of its debt issues. The impact of these derivative instruments is not reflected in the rates presented in the tables above. For those derivative instruments that qualify for hedge accounting treatment, interest expense was less than $1 million , $1 million , and $3 million for the years ended December 31, 2019, 2018 and 2017 , respectively. See Note 5 for additional information on the Company’s use of derivative instruments. Interest expense for short-term and long-term debt was $1,563 million , $1,423 million and $1,334 million for the years ended December 31, 2019 , 2018 and 2017 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 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. Prepaid benefits costs and accrued benefit liabilities are included in “Other assets” and “Other liabilities,” respectively, in the Company’s Consolidated Statements of Financial Position. The status of these plans as of December 31, 2019 and 2018 is summarized below: Pension Benefits Other Postretirement Benefits 2019 2018 2019 2018 (in millions) Change in benefit obligation Benefit obligation at the beginning of period $ (13,185 ) $ (13,838 ) $ (1,876 ) $ (1,996 ) Service cost (291 ) (314 ) (22 ) (23 ) Interest cost (489 ) (448 ) (78 ) (70 ) Plan participants’ contributions 0 0 (21 ) (25 ) Medicare Part D subsidy receipts 0 0 (7 ) (9 ) Amendments 0 (3 ) (27 ) (32 ) Actuarial gains (losses), net (1,499 ) 611 (124 ) 96 Settlements 45 27 0 0 Special termination benefits (26 ) (1 ) (1 ) 0 Benefits paid 831 797 165 182 Foreign currency changes and other (23 ) (16 ) (2 ) 1 Benefit obligation at end of period $ (14,637 ) $ (13,185 ) $ (1,993 ) $ (1,876 ) Change in plan assets Fair value of plan assets at beginning of period $ 12,807 $ 13,655 $ 1,432 $ 1,615 Actual return on plan assets 1,681 (224 ) 264 (70 ) Employer contributions 280 219 5 44 Plan participants’ contributions 0 0 21 25 Disbursement for settlements (45 ) (27 ) 0 0 Benefits paid (831 ) (797 ) (165 ) (182 ) Foreign currency changes and other 14 (19 ) 0 0 Fair value of plan assets at end of period $ 13,906 $ 12,807 $ 1,557 $ 1,432 Funded status at end of period $ (731 ) $ (378 ) $ (436 ) $ (444 ) Amounts recognized in the Statements of Financial Position Prepaid benefit cost $ 2,204 $ 2,458 $ 0 $ 4 Accrued benefit liability (2,935 ) (2,836 ) (436 ) (448 ) Net amount recognized $ (731 ) $ (378 ) $ (436 ) $ (444 ) Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost: Prior service cost $ (12 ) $ (15 ) $ 65 $ 41 Net actuarial loss 4,191 3,829 341 408 Net amount not recognized $ 4,179 $ 3,814 $ 406 $ 449 Accumulated benefit obligation $ (13,934 ) $ (12,560 ) $ (1,993 ) $ (1,877 ) In addition to the plan assets above, the Company in 2007 established an irrevocable trust, commonly referred to as a “rabbi trust,” for the purpose of holding assets of the Company to be used to satisfy its obligations with respect to certain non-qualified retirement plans ( $1,301 million and $1,208 million benefit obligation at December 31, 2019 and 2018 , respectively). Assets held in the rabbi trust are available to the general creditors of the Company in the event of insolvency or bankruptcy. The Company may from time to time in its discretion make contributions to the trust to fund accrued benefits payable to participants in one or more of the plans, and, in the case of a change in control of the Company, as defined in the trust agreement, the Company will be required to make contributions to the trust to fund the accrued benefits, vested and unvested, payable on a pre-tax basis to participants in the plans. The Company did not make any discretionary payments to the trust in 2019 and 2018. As of December 31, 2019 and 2018 , the assets in the trust had a carrying value of $986 million and $861 million , respectively. The Company also maintains a separate rabbi trust for the purpose of holding assets of the Company to be used to satisfy its obligations with respect to certain other non-qualified retirement plans ( $76 million and $72 million benefit obligation at December 31, 2019 and 2018 , respectively), as well as certain cash-based deferred compensation arrangements. As of December 31, 2019 and 2018 , the assets in the trust had a carrying value of $106 million and $102 million , respectively. Pension benefits for foreign plans comprised 14% and 15% of the ending benefit obligation for both 2019 and 2018 , respectively. Foreign pension plans comprised 5% of the ending fair value of plan assets for both 2019 and 2018 . There are no material foreign postretirement plans. Information for pension plans with a projected benefit obligation in excess of plan assets 2019 2018 (in millions) Projected benefit obligation $ 2,997 $ 2,895 Fair value of plan assets $ 62 $ 59 Information for pension plans with an accumulated benefit obligation in excess of plan assets 2019 2018 (in millions) Accumulated benefit obligation $ 2,760 $ 2,697 Fair value of plan assets $ 7 $ 6 There were no purchases of annuity contracts in 2019 and 2018 from PICA. The approximate future annual benefit payment payable by PICA for all annuity contracts was $22 million and $18 million as of December 31, 2019 and 2018 , respectively. Components of Net Periodic Benefit Cost The Company uses market related value to determine components of net periodic (benefit) cost. Market related value recognizes certain changes in fair value of plan assets over a period of five years. Changes in the fair value of U.S. equities, international equities, real estate and other assets are recognized over a five year period. However, changes in the fair value for fixed maturity assets (including short-term investments) are recognized immediately for the purposes of market related value. Net periodic (benefit) cost included in “General and administrative expenses” in the Company’s Consolidated Statements of Operations for the years ended December 31, includes the following components: Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 (in millions) Service cost $ 291 $ 314 $ 284 $ 22 $ 23 $ 20 Interest cost 489 448 476 78 70 82 Expected return on plan assets (816 ) (817 ) (781 ) (95 ) (108 ) (102 ) Amortization of prior service cost (4 ) (4 ) (3 ) 4 1 0 Amortization of actuarial (gain) loss, net 217 213 191 24 17 36 Settlements 59 8 13 0 0 0 Special termination benefits(1)(2) 26 1 4 1 0 0 Net periodic (benefit) cost $ 262 $ 163 $ 184 $ 34 $ 3 $ 36 __________ (1) For 2019, 2018 and 2017 certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination. (2) For 2019 certain employees were provided special termination benefits in the qualified and non-qualified plans in the form of retirement eligibility bridging as a result of their participation in the Voluntary Separation Program that was offered to eligible U.S.-based employees in 2019. Changes in Accumulated Other Comprehensive Income (Loss) The benefit obligation is based upon actuarial assumptions such as discount, termination, retirement, mortality and salary growth rates. Changes at year-end in these actuarial assumptions, along with experience changes based on updated participant census data are deferred in AOCI. Plan assets generate actuarial gains and losses when actual returns on plan assets differ from expected returns on plan assets, and these differences are also deferred in AOCI. The cumulative deferred gain (loss) within AOCI is amortized into earnings if it exceeds 10% of the greater of the benefit obligation or plan assets at the beginning of the year, and the amortization period is based upon the actuarially calculated expected future years of service for a given plan. The amounts recorded in AOCI as of the end of the period, which have not yet been recognized as a component of net periodic (benefit) cost, and the related changes in these items during the period that are recognized in “Other comprehensive income (loss)” are as follows: Pension Benefits Other Postretirement Benefits Prior Service Cost Net Actuarial (Gain) Loss Prior Service Cost Net Actuarial (Gain) Loss (in millions) Balance, December 31, 2016 $ (25 ) $ 3,481 $ 1 $ 557 Amortization for the period 3 (191 ) 0 (36 ) Deferrals for the period 0 323 9 (179 ) Impact of foreign currency changes and other 0 (2 ) 0 2 Balance, December 31, 2017 (22 ) 3,611 10 344 Amortization for the period 4 (213 ) (1 ) (17 ) Deferrals for the period 3 430 32 82 Impact of foreign currency changes and other 0 1 0 (1 ) Balance, December 31, 2018 (15 ) 3,829 41 408 Amortization for the period 4 (217 ) (4 ) (24 ) Deferrals for the period 0 634 27 (45 ) Impact of foreign currency changes and other (1 ) (55 ) 1 2 Balance, December 31, 2019 $ (12 ) $ 4,191 $ 65 $ 341 The amounts included in AOCI expected to be recognized as components of net periodic (benefit) cost in 2020 are as follows: Pension Benefits Other Postretirement Benefits (in millions) Amortization of prior service cost $ (4 ) $ 6 Amortization of actuarial (gain) loss, net 262 17 Total $ 258 $ 23 The Company’s assumptions related to the calculation of the domestic benefit obligation (end of period) and the determination of net periodic (benefit) cost (beginning of period) are presented in the table below: Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Weighted average assumptions Discount rate (beginning of period) 4.30 % 3.65 % 4.15 % 4.30 % 3.60 % 4.05 % Discount rate (end of period) 3.30 % 4.30 % 3.65 % 3.25 % 4.30 % 3.60 % Rate of increase in compensation levels (beginning of period) 4.50 % 4.50 % 4.50 % N/A N/A N/A Rate of increase in compensation levels (end of period) 4.50 % 4.50 % 4.50 % N/A N/A N/A Expected return on plan assets (beginning of period) 6.50 % 6.25 % 6.25 % 7.00 % 7.00 % 7.00 % Health care cost trend rates (beginning of period) N/A N/A N/A 6.00 % 6.20 % 6.60 % Health care cost trend rates (end of period) N/A N/A N/A 6.25 % 6.00 % 6.20 % For 2019, 2018 and 2017, the ultimate health care cost trend rate after gradual decrease until: 2024, 2024, 2021, (beginning of period) N/A N/A N/A 5.00 % 5.00 % 5.00 % For 2019, 2018 and 2017, the ultimate health care cost trend rate after gradual decrease until: 2028, 2024, 2024 (end of period) N/A N/A N/A 5.00 % 5.00 % 5.00 % The domestic discount rate used to value the pension and postretirement obligations at December 31, 2019 and December 31, 2018 is based upon the value of a portfolio of Aa-rated investments whose cash flows would be available to pay the benefit obligation’s cash flows when due. The December 31, 2019 portfolio is selected from a compilation of approximately 540 Aa-rated bonds across the full range of maturities. Since yields can vary widely at each maturity point, the Company generally avoids using the highest and lowest yielding bonds at the maturity points, so as to avoid relying on bonds that might be mispriced or misrated. This refinement process generally results in having a distribution from the 10th to 90th percentile. The Aa-rated portfolio is then selected and, accordingly, its value is a measure of the benefit obligation. A single equivalent discount rate is calculated to equate the value of the Aa-rated portfolio to the cash flows for the benefit obligation. The result is rounded to the nearest 5 basis points and the benefit obligation is recalculated using the rounded discount rate. The pension and postretirement expected long-term rates of return on plan assets for 2019 were determined based upon an approach that considered the allocation of plan assets as of December 31, 2018. Expected returns are estimated by asset class as noted in the discussion of investment policies and strategies below. Expected returns on asset classes are developed using a building-block approach that is forward looking and are not strictly based upon historical returns. The building blocks for equity returns include inflation, real return, a term premium, an equity risk premium, capital appreciation, expenses, the effect of active management and the effect of rebalancing. The building blocks for fixed maturity returns include inflation, real return, a term premium, credit spread, capital appreciation, effect of active management, expenses and the effect of rebalancing. The Company applied the same approach to the determination of the expected rate of return on plan assets in 2020 . The expected rate of return for 2020 is 6.00% and 6.75% for pension and postretirement, respectively. The assumptions for foreign pension plans are based on local markets. There are no material foreign postretirement plans. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plan. A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects: Other Postretirement Benefits (in millions) One percentage point increase Increase in total service and interest costs $ 6 Increase in postretirement benefit obligation $ 110 One percentage point decrease Decrease in total service and interest costs $ 5 Decrease in postretirement benefit obligation $ 102 Plan Assets The investment goal of the domestic pension plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds and other investments. The cash requirements of the pension obligation, which include a traditional formula principally representing payments to annuitants and a cash balance formula that allows lump sum payments and annuity payments, are designed to be met by the bonds and short-term investments in the portfolio. The pension plan risk management practices include guidelines for asset concentration, credit rating and liquidity. The pension plan does not invest in leveraged derivatives. Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps and futures are used to adjust duration. The investment goal of the domestic postretirement plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds, and other investments, while meeting the cash requirements for the postretirement obligation that includes a medical benefit including prescription drugs, a dental benefit and a life benefit. The postretirement plan risk management practices include guidelines for asset concentration, credit rating, liquidity and tax efficiency. The postretirement plan does not invest in leveraged derivatives. Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps and futures are used to adjust duration. The plan fiduciaries for the Company’s pension and postretirement plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis. Asset allocation targets as of December 31, 2019 are as follows: Pension Postretirement Minimum Maximum Minimum Maximum Asset Category U.S. Equities 2 % 8 % 29 % 66 % International Equities 2 % 10 % 2 % 21 % Fixed Maturities 54 % 66 % 10 % 48 % Short-term Investments 0 % 12 % 0 % 35 % Real Estate 2 % 16 % 0 % 0 % Other 6 % 27 % 0 % 0 % To implement the investment strategy, plan assets are invested in funds that primarily invest in securities that correspond to one of the asset categories under the investment guidelines. However, at any point in time, some of the assets in a fund may be of a different nature than the specified asset category. Assets held with PICA are in either pooled separate accounts or single client separate accounts. Pooled separate accounts hold assets for multiple investors. Each investor owns a “unit of account.” Single client separate accounts hold assets for only one investor, the domestic qualified pension plan, and each security in the fund is treated as individually owned. Assets held with a bank are either in common/collective trusts or single client trusts. Common or collective trusts hold assets for more than one investor. Each investor owns a “unit of account.” Single client trusts hold assets for only one investor, the domestic qualified pension plan, and each security in the fund is treated as individually owned. There were no investments in Prudential Financial Common Stock as of December 31, 2019 and December 31, 2018 for either the pension or postretirement plans. The authoritative guidance around fair value established a framework for measuring fair value. Fair value is disclosed using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value, as described in Note 6. The following describes the valuation methodologies used for pension and postretirement plans assets measured at fair value. Insurance Company Pooled Separate Accounts, Common or Collective Trusts, and United Kingdom Insurance Pooled Funds —Insurance company pooled separate accounts are invested via group annuity contracts issued by PICA. Assets are represented by a “unit of account.” The redemption value of those units is based on a per unit value whose value is the result of the accumulated values of underlying investments. The underlying investments are valued in accordance with the corresponding valuation method for the investments held. Equities —See Note 6 for a discussion of the valuation methodologies for equity securities. U.S. Government Securities (both Federal and State & Other), Non–U.S. Government Securities , and Corporate Debt —See Note 6 for a discussion of the valuation methodologies for fixed maturity securities. Interest Rate Swaps —See Note 6 for a discussion of the valuation methodologies for derivative instruments. Guaranteed Investment Contracts —The value is based on contract cash flows and available market rates for similar investments. Registered Investment Companies (Mutual Funds) —Securities are priced at the NAV of shares. Unrealized Gain (Loss) on Investment of Securities Lending Collateral —This value is the contractual position relative to the investment of securities lending collateral. Real Estate —The values are determined through an independent appraisal process. The estimate of fair value is based on three approaches; (1) current cost of reproducing the property less deterioration and functional/economic obsolescence; (2) discounting a series of income streams and reversion at a specific yield or by directly capitalizing a single year income estimate by an appropriate factor; and (3) value indicated by recent sales of comparable properties in the market. Each approach requires the exercise of subjective judgment. Short-term Investments —Securities are valued initially at cost and thereafter adjusted for amortization of any discount or premium (i.e., amortized cost). Amortized cost approximates fair value. Partnerships —Valued at the NAV of shares. The NAV is used as a practical expedient to estimate fair value. The value of interests owned in partnerships is based on valuations of the underlying investments that include private placements, structured debt, real estate, equities, fixed maturities, commodities and other investments. Hedge Funds —Valued at the NAV of shares. The NAV is used as a practical expedient to estimate fair value. The value of interests in hedge funds is based on the underlying investments that include equities, debt and other investments. Variable Life Insurance Policies —These assets are held in group and individual variable life insurance policies issued by PICA. Group policies are invested in Insurance Company Pooled Separate Accounts. Individual policies are invested in Registered Investment Companies (Mutual Funds). The value of interest in these policies is the cash surrender value of the policies based on the underlying investments. Pension plan asset allocations in accordance with the investment guidelines are as follows: As of December 31, 2019 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Pooled separate accounts (1) $ 0 $ 204 $ 0 $ 0 $ 204 Common/collective trusts (1) 0 271 0 0 271 Subtotal 475 International Equities: Pooled separate accounts (2) 0 312 0 0 312 Common/collective trusts (3) 0 393 0 0 393 United Kingdom insurance pooled funds (4) 0 48 0 0 48 Subtotal 753 Fixed Maturities: Pooled separate accounts (5) 0 1,521 0 0 1,521 Common/collective trusts (6) 0 521 0 0 521 U.S. government securities (federal): Mortgage-backed 0 1 0 0 1 Other U.S. government securities 0 783 0 0 783 U.S. government securities (state & other) 0 562 0 0 562 Non-U.S. government securities 0 93 0 0 93 United Kingdom insurance pooled funds (7) 0 90 0 0 90 Corporate Debt: Corporate bonds 0 4,281 0 0 4,281 Asset-backed 0 22 0 0 22 Collateralized Mortgage Obligations 0 485 0 0 485 Collateralized Loan Obligations 0 397 0 0 397 Interest rate swaps (Notional amount: $2,462) 0 2 0 0 2 Registered investment companies 7 0 0 0 7 Other (8) 37 (2 ) 44 0 79 Unrealized gain (loss) on investment of securities lending collateral (9) 0 0 0 0 0 Subtotal 8,844 Short-term Investments: Pooled separate accounts 5 56 0 0 61 United Kingdom insurance pooled funds 30 0 0 0 30 Subtotal 91 Real Estate: Pooled separate accounts (10) 0 0 770 0 770 Partnerships 0 0 0 688 688 Subtotal 1,458 Other: Partnerships 0 0 0 973 973 Hedge funds 0 0 0 1,312 1,312 Subtotal 2,285 Total $ 79 $ 10,040 $ 814 $ 2,973 $ 13,906 December 31, 2018(11) Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Pooled separate accounts (1) $ 0 $ 448 $ 0 $ 0 $ 448 Common/collective trusts (1) 0 70 0 0 70 Subtotal 518 International Equities: Pooled separate accounts (2) 0 315 0 0 315 Common/collective trusts (3) 0 283 0 0 283 United Kingdom insurance pooled funds (4) 0 42 0 0 42 Subtotal 640 Fixed Maturities: Pooled separate accounts (5) 0 1,326 0 0 1,326 Common/collective trusts (6) 0 485 0 0 485 U.S. government securities (federal): Mortgage-backed 0 1 0 0 1 Other U.S. government securities 0 712 0 0 712 U.S. government securities (state & other) 0 519 0 0 519 Non-U.S. government securities 0 7 0 0 7 United Kingdom insurance pooled funds (7) 0 289 0 0 289 Corporate Debt: Corporate bonds 0 3,476 2 0 3,478 Asset-backed 0 24 0 0 24 Collateralized Mortgage Obligations 0 474 0 0 474 Collateralized Loan Obligations 0 293 0 0 293 Interest rate swaps (Notional amount: $1,694) 0 11 0 0 11 Guaranteed investment contract 0 53 0 0 53 Registered investment companies 293 0 0 0 293 Other (8) 6 5 62 0 73 Unrealized gain (loss) on investment of securities lending collateral (9) 0 0 0 0 0 Subtotal 8,038 Short-term Investments: Pooled separate accounts 0 74 0 0 74 United Kingdom insurance pooled funds 0 3 0 0 3 Subtotal 77 Real Estate: Pooled separate accounts (10) 0 0 760 0 760 Partnerships 0 0 0 478 478 Subtotal 1,238 Other: Partnerships 0 0 0 831 831 Hedge funds 0 0 0 1,465 1,465 Subtotal 2,296 Total $ 299 $ 8,910 $ 824 $ 2,774 $ 12,807 __________ (1) These categories invest in U.S. equity funds whose objective is to track or outperform various indexes. (2) This category invests in a large cap international equity funds whose objective is to track an index. (3) This category mainly consists of a global equity fund, primarily focused on new market leaders with sustainable competitive advantage. (4) This category invests in an international equity fund whose objective is to track an index. (5) This category invests in bond funds, primarily highly rated private placement securities. (6) This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index. (7) This category invests in bond funds, primarily highly rated corporate securities. (8) Primarily cash and cash equivalents, short-term investments, payables and receivables, and open future contract positions (including fixed income collateral). (9) The contractual net value of the investment of securities lending collateral invested primarily in short-term bond funds is $135 million and $157 million and the liability for securities lending collateral is $135 million and $157 million for the years ended December 31, 2019 and 2018, respectively. (10) This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index. (11) Prior period amounts have been updated to conform to the current year presentation. Changes in Fair Value of Level 3 Pension Assets Year Ended December 31, 2019 Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Other Real Estate– Pooled Separate Accounts (in millions) Fair Value, beginning of period $ 2 $ 62 $ 760 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 39 Relating to assets sold during the period 0 0 15 Purchases, sales and settlements 0 (18 ) (44 ) Transfers in and/or out of Level 3 (1) (2 ) 0 0 Fair Value, end of period $ 0 $ 44 $ 770 Year Ended December 31, 2018 Fixed Maturities– Pooled Separate Accounts Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Other Real Estate– Pooled Separate Accounts (in millions) Fair Value, beginning of period $ 38 $ 1 $ 39 $ 714 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 56 Relating to assets sold during the period 0 0 0 8 Purchases, sales and settlements (38 ) (1 ) 23 (18 ) Transfers in and/or out of Level 3 (1) 0 2 0 0 Fair Value, end of period $ 0 $ 2 $ 62 $ 760 __________ (1) The transfers from level 3 to level 2 are due to the availability of external pricing sources. Postretirement plan asset allocations in accordance with the investment guidelines are as follows: As of December 31, 2019 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Variable Life Insurance Policies (1) $ 0 $ 688 $ 0 $ 0 $ 688 Common trusts (2) 0 83 0 0 83 Subtotal 771 International Equities: Variable Life Insurance Policies (3) 0 118 0 0 118 Common trusts (4) 0 59 0 0 59 Subtotal 177 Fixed Maturities: Variable Life Insurance Policies (5) 0 194 0 0 194 Common trusts (5) 0 131 0 0 131 U.S. government securities (federal): Other U.S. government securities 0 20 0 0 20 Non-U.S. government securities 0 2 0 0 2 Corporate Debt: Corporate bonds 0 53 0 0 53 Asset-backed 0 15 0 0 15 Collateralized Mortgage Obligations 0 10 0 0 10 Collateralized Loan Obligations 0 16 0 0 16 Interest rate swaps (Notional amount: $253) 0 0 0 0 0 Registered investment companies 4 0 0 0 4 Other (6) 0 0 1 0 1 Subtotal 446 Short-term Investments: Registered investment companies 163 0 0 0 163 Subtotal 163 Total $ 167 $ 1,389 $ 1 $ 0 $ 1,557 December 31, 2018(7) Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Variable Life Insurance Policies (1) $ 0 $ 538 $ 0 $ 0 $ 538 Common trusts (2) 0 75 0 0 75 Equities 25 6 0 0 31 Subtotal 644 International Equities: Variable Life Insurance Policies (3) 0 91 0 0 91 Common trusts (4) 0 53 0 0 53 Equities 0 6 0 0 6 Subtotal 150 Fixed Maturities: Variable Life Insurance Policies (5) 0 157 0 0 157 Common trusts (5) 0 130 0 0 130 U.S. government securities (federal): Other U.S. government securities 0 25 0 0 25 Corporate Debt: Corporate bonds 0 120 0 0 120 Asset-backed 0 26 1 0 27 Collateralized Mortgage Obligations 0 17 1 0 18 Collateralized Loan Obligations 0 18 0 0 18 Interest rate swaps (Notional amount: $188) 0 (1 ) 0 0 (1 ) Registered investment companies 3 0 0 0 3 Other (6) 0 0 3 0 3 Subtotal 500 Short-term Investments: Registered investment companies 138 0 0 0 138 Subtotal 138 Total $ 166 $ 1,261 $ 5 $ 0 $ 1,432 __________ (1) This category invests in U.S. equity funds, primarily large cap equities whose objective is to track an index via pooled separate accounts and registered investment companies. (2) This category invests in U.S. equity funds, primarily large cap equities. (3) This category invests in international equity funds, primarily large cap international equities whose objective is to track an index. (4) This category fund invests in large cap international equity fund whose objective is to outperform an index. (5) This category invests in U.S. government and corporate bond funds. (6) Cash and cash equivalents, short-term investments, payables and receivables and open future contract positions (including fixed income collateral). (7) Prior period amounts have been updated to conform to the current year presentation. Changes in Fair Value of Level 3 Postretirement Assets Year Ended December 31, 2019 Fixed Maturities– Corporate Debt– Asset-backed Fixed Maturities– Corporate Debt– Collateralized Mortgage Obligations Fixed Maturities– Other (in millions) Fair Value, beginning of period $ 1 $ 1 $ 3 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 Relating to assets sold during the period 0 0 0 Purchases, sales and settlements 0 (1 ) (2 ) Transfers in and/or out of Level 3 (1) (1 ) 0 0 Fair Value, end of period $ 0 $ 0 $ 1 Year Ended December 31, 2018 Fixed Maturities– Corporate Debt– Asset-backed Fixed Maturities– Corporate Debt– Collateralized Mortgage Obligations Fixed Maturities– Corporate Debt– Collateralized Loan Obligations Fixed Maturities– Other (in millions) Fair Value, beginning of period $ 0 $ 2 $ 2 $ 5 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 0 Relating to assets sold during the period 0 0 0 0 Purchases, sales and settlements (1 ) (1 ) 0 (2 ) Transfers in and/or out of Level 3 (1) 2 0 (2 ) 0 Fair Value, end of period $ 1 $ 1 $ 0 $ 3 __________ (1) The transfers from level 3 to level 2 are due to the availability of external pricing sources. A summary of pension and postretirement plan asset allocation as of the year ended December 31, are as follows: Pension Percentage of Plan Assets Postretirement Percentage of Plan Assets 2019 2018 2019 2018 Asset Category U.S. Equities 3 % 4 % 50 % 43 % International Equities 5 5 11 10 Fixed Maturities 64 63 29 37 Short-term Investments 1 0 10 10 Real Estate 11 10 0 0 Other 16 18 0 0 Total 100 % 100 % 100 % 100 % The expected benefit payments for the Company’s pension and postretirement plans, as well as the expected Medicare Part D subsidy receipts related to the Company’s postretirement plan, for the years indicated are as follows: Pension Benefit Payments Other Postretirement Benefit Payments Other Postretirement Benefits– Medicare Part D Subsidy Receipts (in millions) 2020 $ 938 $ 147 $ 8 2021 797 148 8 2022 825 149 8 2023 858 148 7 2024 865 146 7 2025-2029 4,577 698 32 Total $ 8,860 $ 1,436 $ 70 The Company anticipates that it will make cash contributions in 2020 of approximately $205 million to the pension plans and approximately $10 million to the postretirement plans. Postemployment Benefits The Company accrues postemployment benefits for income continuance and health and life benefits provided to former or inactive employees who are not retirees. The net accumulated liability for these benefits at December 31, 2019 and 2018 was $1 million and is included in “Other liabilities.” Other Employee Benefits The Company sponsors voluntary savings plans for employees (401(k) plans). The plans provide for salary reduction contributions by employees and matching contributions by the Company of up to 4% of annual salary. The matching contributions by the Company included in “General and administrative expenses” were $84 million , $89 million and $74 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity | EQUITY Preferred Stock As of December 31, 2019 , 2018 and 2017 , the Company had 10,000,000 shares of preferred stock authorized but none issued or outstanding. Common Stock On the date of demutualization in December 2001, Prudential Financial completed an initial public offering of its Common Stock. The shares of Common Stock issued were in addition to shares of Common Stock the Company distributed to policyholders as part of the demutualization. The Common Stock is traded on the New York Stock Exchange under the symbol “PRU”. In the event of a liquidation, dissolution or winding-up of the Company, holders of Common Stock would be entitled to receive a proportionate share of the net assets of the Company that remain after paying all liabilities and the liquidation preferences of any preferred stock. The changes in the number of shares of Common Stock issued, held in treasury and outstanding, are as follows for the periods indicated: Common Stock Issued Held In Treasury Outstanding (in millions) Balance, December 31, 2016 660.1 230.5 429.6 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 11.5 (11.5 ) Stock-based compensation programs(1) 0.0 (4.5 ) 4.5 Balance, December 31, 2017 660.1 237.5 422.6 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 14.9 (14.9 ) Stock-based compensation programs(1) 0.0 (3.0 ) 3.0 Balance, December 31, 2018 660.1 249.4 410.7 Common Stock issued (2)(3) 6.2 (5.5 ) 11.7 Common Stock acquired 0.0 27.2 (27.2 ) Stock-based compensation programs(1) 0.0 (3.6 ) 3.6 Balance, December 31, 2019 666.3 267.5 398.8 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. (2) In August 2019, as a result of the note holders’ exercise of the exchange option on $500 million of surplus notes, 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. For additional information, see Note 20. (3) In October 2019, the Company issued approximately 5.5 million shares of restricted Common Stock as part of consideration paid for the Assurance IQ acquisition. For additional information about the acquisition, see Note 1. Additional paid-in capital Additional paid-in capital is primarily comprised of the cumulative excess between: (a) the total cash received by the Company in conjunction with past issuances of Common Stock shares or Common Stock shares reissued from treasury in conjunction with the Company’s stock-based compensation program and (b) the total par value associated with those shares ( $.01 per share). Common stock held in treasury Common Stock held in treasury represents the Company’s previously issued shares of stock which have been repurchased by the Company but not retired. These shares are accounted for at the cost at which they were acquired. Common Stock held in treasury is typically impacted by repurchases of shares under the Board of Directors approved share repurchase program and by reissuances of shares associated with our stock-based compensation programs, or for other purposes, which are accounted for at average cost upon reissuance. Gains resulting from the reissuance of Common Stock held in treasury are credited to Additional paid-in capital. Losses resulting from the reissuance of Common Stock held in treasury are charged first to Additional paid-in capital to the extent the Company has previously recorded gains on treasury share transactions, then to Retained earnings. The Board of Directors may from time to time, at its discretion, authorize management to repurchase shares of Common Stock of the Company. The timing and amount of share repurchases are determined by management based upon market conditions and other considerations, and repurchases may be executed 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. The following table summarizes share repurchases for each of the past three years as well as the share repurchase authorization for 2020 which was approved by the Board of Directors in December 2019. January 1, 2020 - December 31, 2020 January 1, 2019 - December 31, 2019 January 1, 2018 - December 31, 2018 January 1, 2017 - December 31, 2017 Total Board authorized share repurchase amount ($ in billions) $ 2.0 $ 2.5 $ 1.5 $ 1.25 Total number of shares repurchased under this authorization as of the period end (in millions) N/A* 27.2 14.9 11.5 __________ * Share repurchase authorization for a future period. Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Consolidated Statements of Comprehensive Income. Each of the components that comprise OCI are described in further detail in Note 2 (Foreign Currency Translation Adjustment and Net Unrealized Investment Gains (Losses)) and Note 18 (Pension and Postretirement Unrecognized Net Periodic Benefit (Cost)). The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) Total Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2016 $ (973 ) $ 18,171 $ (2,577 ) $ 14,621 Change in OCI before reclassifications 768 4,026 (153 ) 4,641 Amounts reclassified from AOCI 1 (1,629 ) 224 (1,404 ) Income tax benefit (expense) (65 ) (600 ) (119 ) (784 ) Balance, December 31, 2017 (269 ) 19,968 (2,625 ) 17,074 Change in OCI before reclassifications (74 ) (7,614 ) (547 ) (8,235 ) Amounts reclassified from AOCI 1 (779 ) 227 (551 ) Income tax benefit (expense) 9 1,735 68 1,812 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, December 31, 2018 (564 ) 14,745 (3,275 ) 10,906 Change in OCI before reclassifications 37 18,540 (563 ) 18,014 Amounts reclassified from AOCI 27 (1,345 ) 241 (1,077 ) Income tax benefit (expense) (36 ) (3,835 ) 60 (3,811 ) Cumulative effect of adoption of ASU 2017-12 0 7 0 7 Balance, December 31, 2019 $ (536 ) $ 28,112 $ (3,537 ) $ 24,039 __________ (1) Includes cash flow hedges of $832 million , $811 million and $(39) million as of December 31, 2019 , 2018 , and 2017 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Years Ended December 31, Affected line item in Consolidated Statements of Operations 2019 2018 2017 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustment $ (27 ) $ (1 ) $ (3 ) Realized investment gains (losses), net Foreign currency translation adjustment 0 0 2 Other income (loss) Total foreign currency translation adjustment (27 ) (1 ) (1 ) Net unrealized investment gains (losses): Cash flow hedges—Interest Rate 58 1 (2 ) (3) Cash flow hedges—Currency 6 7 0 (3) Cash flow hedges—Currency/Interest rate 315 543 (16 ) (3) Net unrealized investment gains (losses) on available-for-sale securities 966 228 1,647 Total net unrealized investment gains (losses) 1,345 779 1,629 (4) Amortization of defined benefit items: Prior service cost 0 3 3 (5) Actuarial gain (loss) (241 ) (230 ) (227 ) (5) Total amortization of defined benefit items (241 ) (227 ) (224 ) Total reclassifications for the period $ 1,077 $ 551 $ 1,404 __________ (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 18 for information on employee benefit plans. Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on securities classified as available-for-sale and certain other invested assets and other assets are included in the Company’s Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2016 $ 312 $ (5 ) $ (6 ) $ (47 ) $ (97 ) $ 157 Net investment gains (losses) on investments arising during the period 79 (22 ) 57 Reclassification adjustment for (gains) losses included in net income (85 ) 23 (62 ) Reclassification adjustment for OTTI losses excluded from net income(1) (20 ) 5 (15 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 3 (1 ) 2 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables 9 (2 ) 7 Impact of net unrealized investment (gains) losses on policyholders’ dividends 1 0 1 Balance, December 31, 2017 286 (2 ) 3 (46 ) (94 ) 147 Net investment gains (losses) on investments arising during the period (19 ) 8 (11 ) Reclassification adjustment for (gains) losses included in net income (76 ) 33 (43 ) Reclassification adjustment for OTTI losses excluded from net income(1) (2 ) 1 (1 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 1 0 1 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables 1 0 1 Impact of net unrealized investment (gains) losses on policyholders’ dividends 23 (9 ) 14 Balance, December 31, 2018 189 (1 ) 4 (23 ) (61 ) 108 Net investment gains (losses) on investments arising during the period 129 (29 ) 100 Reclassification adjustment for (gains) losses included in net income (96 ) 21 (75 ) Reclassification adjustment for OTTI losses excluded from net income(1) 21 (5 ) 16 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, policyholders’ account balances and reinsurance payables 1 0 1 Impact of net unrealized investment (gains) losses on policyholders’ dividends 1 0 1 Balance, December 31, 2019 $ 243 $ (1 ) $ 5 $ (22 ) $ (74 ) $ 151 __________ (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Deferred Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2016 $ 32,420 $ (1,056 ) $ (1,136 ) $ (2,980 ) $ (9,234 ) $ 18,014 Net investment gains (losses) on investments arising during the period 5,216 (1,425 ) 3,791 Reclassification adjustment for (gains) losses included in net income (1,544 ) 421 (1,123 ) Reclassification adjustment for OTTI losses excluded from net income(2) 20 (5 ) 15 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables (524 ) 191 (333 ) Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables (107 ) 25 (82 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (651 ) 190 (461 ) Balance, December 31, 2017 36,112 (1,580 ) (1,243 ) (3,631 ) (9,837 ) 19,821 Net investment gains (losses) on investments arising during the period (10,838 ) 2,893 (7,945 ) Reclassification adjustment for (gains) losses included in net income (703 ) 303 (400 ) Reclassification adjustment for OTTI losses excluded from net income(2) 2 (1 ) 1 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 842 (263 ) 579 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables 452 (186 ) 266 Impact of net unrealized investment (gains) losses on policyholders’ dividends 1,924 (874 ) 1,050 Cumulative effect of adoption of ASU 2016-01 (2,042 ) 813 212 (1,017 ) Cumulative effect of adoption of ASU 2018-02 2,282 2,282 Balance, December 31, 2018 22,531 (738 ) (791 ) (894 ) (5,471 ) 14,637 Net investment gains (losses) on investments arising during the period 23,826 (5,282 ) 18,544 Reclassification adjustment for (gains) losses included in net income (1,249 ) 277 (972 ) Reclassification adjustment for OTTI losses excluded from net income(2) (21 ) 5 (16 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables (846 ) 190 (656 ) Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables (2,123 ) 475 (1,648 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (2,450 ) 515 (1,935 ) Cumulative effect of adoption of ASU 2017-12 9 (2 ) 7 Balance, December 31, 2019 $ 45,096 $ (1,584 ) $ (2,914 ) $ (3,344 ) $ (9,293 ) $ 27,961 __________ (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. Retained earnings Retained earnings primarily represents the cumulative net income earned by the Company that has been retained by the Company as of the reporting date. Other unique items, included but not limited to the adoption of new accounting standards updates, may also impact retained earnings. In any given period, retained earnings may increase due to net income and may decrease due to net losses or the declaration of dividends. The declaration and payment of dividends on the Common Stock is limited by New Jersey corporate law, pursuant to which Prudential Financial is prohibited from paying a Common Stock dividend if, after giving effect to that dividend, either (a) the Company would be unable to pay its debts as they become due in the usual course of its business or (b) the Company’s total assets would be less than its liabilities. In addition, the terms of the Company’s outstanding junior subordinated debt include a “dividend stopper” provision that restricts the payment of dividends on the Common Stock if interest payments are not made on the junior subordinated debt. Other than the above limitations, the Company’s Retained earnings balance is free of restrictions for the payment of Common Stock dividends; however, Common Stock dividends will be dependent upon financial conditions, results of operations, cash needs, future prospects and other factors, including cash available to Prudential Financial, the parent holding company. The principal sources of funds available to Prudential Financial are dividends and returns of capital from its subsidiaries, loans from its subsidiaries, repayments of operating loans from its subsidiaries, and cash and other highly liquid assets. The primary uses of funds at Prudential Financial include servicing its debt, operating expenses, capital contributions and loans to subsidiaries, the payment of declared shareholder dividends and repurchases of outstanding shares of Common Stock if executed under Board authority. As of December 31, 2019 , Prudential Financial had highly liquid assets (excluding amounts held in an intercompany liquidity account) of $4,061 million predominantly including cash, short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. Future cash available at Prudential Financial to support the payment of future Common Stock dividends is dependent on the receipt of dividends or other funds from its subsidiaries, the majority of which are subject to comprehensive regulation, including limitations on their payment of dividends and other transfers of funds, which are discussed in this Note further below. Non-controlling interests For certain subsidiaries, the Company owns a controlling interest that is less than 100% ownership of the subsidiary but must consolidate 100% Insurance Subsidiaries - Statutory Financial Information and Restrictions on Payments of Dividends U.S. Insurance Subsidiaries - Statutory Financial Information The Company’s domestic insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile. Statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. The risk-based capital (“RBC”) ratio is a primary measure by which the Company and its insurance regulators evaluate the capital adequacy of PICA and the Company’s other domestic insurance subsidiaries. RBC is determined by NAIC-prescribed formulas that consider, among other things, risks related to the type and quality of the invested assets, insurance-related risks associated with an insurer’s products and liabilities, interest rate risks and general business risks. Insurers that have less statutory capital than required are considered to have inadequate capital and are subject to varying degrees of regulatory action depending upon the level of capital inadequacy. The Company expects to report RBC ratios as of December 31, 2019 above the regulatory required minimums that would require corrective action and above our “AA” financial strength target levels for both PICA and Prudential Annuities Life Assurance Corporation (“PALAC”). The following table summarizes certain statutory financial information for the Company’s two largest U.S. insurance subsidiaries for the periods indicated: PICA PALAC In millions and presented as of or for the year ended December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2019 December 31, 2018 December 31, 2017 Statutory net income (loss)(1) $ (169 ) $ 1,324 $ (217 ) $ (2,052 ) $ (852 ) $ 3,911 Statutory capital and surplus(1) $ 11,483 $ 10,695 $ 9,948 $ 4,748 $ 6,396 $ 8,059 __________ (1) Prior year amounts have been updated to conform to finalized statutory filing where applicable. U.S. Insurance Subsidiaries - Restrictions on Payment of Dividends to Prudential Financial, the Parent Holding Company With respect to PICA, a New Jersey domiciled insurance subsidiary which is also the Company’s primary domestic insurance subsidiary, New Jersey insurance law provides that, except in the case of extraordinary dividends (as described below), all dividends or other distributions paid by PICA may be paid only from unassigned surplus, as determined pursuant to statutory accounting principles, less cumulative unrealized investment gains and losses and revaluation of assets as of the prior calendar year-end. As of December 31, 2019 , PICA’s unassigned surplus less applicable adjustments for cumulative unrealized investment gains was $7,511 million . PICA must give prior notification to the NJDOBI of its intent to pay any such dividend or distribution. Also, if any dividend, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of statutory capital and surplus as of the preceding December 31 or (ii) its statutory net gain from operations excluding realized investment gains and losses for the twelve-month period ending on the preceding December 31, the dividend is considered to be an “extraordinary dividend” and requires the prior approval of the NJDOBI. Under New Jersey insurance law, PICA is permitted to pay an ordinary dividend of up to $1,148 million in 2020, without prior approval of the NJDOBI. The laws regulating dividends of the states where the Company’s other domestic insurance subsidiaries are domiciled are similar, but not identical, to New Jersey. With respect to PALAC, an Arizona domiciled insurance subsidiary of the Company, Arizona insurance law provides that if any dividend, together with other dividends or distributions made within the preceding twelve months, exceeds the lesser of (i) 10% of statutory capital and surplus as of the preceding December 31 or (ii) its statutory net gain from operations excluding realized investment gains and losses for the twelve month period ending on the preceding December 31, the dividend is considered to be an “extraordinary dividend” and requires prior approval of the Arizona Department of Insurance. Under Arizona law, the maximum PALAC is permitted to pay in 2020 as an ordinary dividend is $204 million , without prior approval of the Arizona Department of Insurance. International Insurance Subsidiaries - Statutory Financial Information The Company’s international insurance subsidiaries prepare financial statements in accordance with local regulatory requirements. These statutory accounting practices differ from U.S. GAAP primarily by charging policy acquisition costs to expense as incurred and establishing future policy benefit liabilities using different actuarial assumptions, as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. The Japan Financial Services Agency (“FSA”) utilizes a solvency margin ratio to evaluate the capital adequacy of Japanese insurance companies. The solvency margin ratio considers the level of solvency margin capital to a solvency margin risk amount, which is calculated in a similar manner to RBC. As of December 31, 2019 , the Company expects The Prudential Life Insurance Company Ltd. (“Prudential of Japan”) and Gibraltar Life both had solvency margin capital in excess of 3.5 times the regulatory required minimums that would require corrective action. All of the Company’s domestic and international insurance subsidiaries have capital and surplus levels that exceed their respective regulatory minimum requirements, and none utilized prescribed or permitted practices that vary materially from the practices prescribed by the NAIC or equivalent regulatory bodies for results reported as of December 31, 2019 and 2018 , respectively, or for the years ended December 31, 2019 , 2018 and 2017 , respectively. International Insurance Subsidiaries - Restrictions on Payment of Dividends to Prudential Financial, the Parent Holding Company The Company’s international insurance operations are subject to dividend restrictions from the regulatory authorities in the jurisdictions in which they operate. With respect to Prudential of Japan and Gibraltar Life, the Company’s most significant international insurance subsidiaries, both of which are domiciled in Japan, Japan insurance law provides that common stock dividends may be paid in an amount of up to 83% of prior fiscal year statutory after-tax earnings, after certain reserving thresholds are met, including providing for policyholder dividends. If statutory retained earnings exceed 100% of statutory paid-in capital, 100% of prior year statutory after-tax earnings may be paid, after reserving thresholds are met. Dividends in excess of these amounts and other forms of capital distribution require the prior approval of the FSA. Additionally, Prudential of Japan and Gibraltar Life must give prior notification to the FSA of their intent to pay any dividend or distribution. In addition to paying common stock dividends, Prudential of Japan and Gibraltar Life may return capital to Prudential Financial through other means, such as the repayment of subordinated debt or preferred stock obligations held by Prudential Financial or other affiliates and affiliated lending, derivatives and reinsurance. For the year ended December 31, 2019 , Prudential Financial received $1,065 million from its international insurance subsidiaries. In addition to paying Common Stock dividends, the Company’s international insurance operations may return capital to Prudential Financial through, or facilitated by, other means, such as the repayment of Preferred Stock obligations held by Prudential Financial or other affiliates, affiliated lending, affiliated derivatives and reinsurance with U.S.- and Bermuda-based affiliates. In 2019, the Company’s Japan insurance operations entered into reinsurance agreements with Gibraltar Re, the Company’s Bermuda-based reinsurance affiliate, to reinsure the mortality and morbidity risk associated with a portion of the in-force contracts as well as newly-issued contracts for certain products. The Company expects these transactions will allow it to more efficiently manage its capital and risk profile. The current regulatory fiscal year end for both Prudential of Japan and Gibraltar Life is March 31, 2020 , after which time the common stock dividend amount permitted to be paid without prior approval from the FSA can be determined. In addition, although prior regulatory approval may not be required by law for the payment of dividends up to the limitations described above, in practice, the Company would typically discuss any dividend payments with the applicable regulatory authority prior to payment. Additionally, the payment of dividends by the Company’s subsidiaries is subject to declaration by their Board of Directors and may be affected by market conditions and other factors. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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 years ended December 31, is as follows: 2019 2018 2017 Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount (in millions, except per share amounts) Basic earnings per share Net income (loss) $ 4,238 $ 4,088 $ 7,974 Less: Income (loss) attributable to noncontrolling interests 52 14 111 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 46 48 95 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 4,140 404.8 $ 10.23 $ 4,026 417.6 $ 9.64 $ 7,768 427.0 $ 18.19 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 46 $ 48 $ 95 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 45 47 94 Stock options 1.1 1.5 2.1 Deferred and long-term compensation programs 1.4 1.2 1.1 Exchangeable Surplus Notes 12 3.6 21 5.9 17 5.8 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 4,153 410.9 $ 10.11 $ 4,048 426.2 $ 9.50 $ 7,786 436.0 $ 17.86 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 years ended December 31, 2019 , 2018 and 2017 , as applicable, were based on 4.6 million , 4.9 million and 5.2 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 years ended December 31, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows: 2019 2018 2017 Shares Exercise Price Per Share Shares Exercise Price Per Share Shares Exercise Price Per Share (in millions, except per share amounts, based on weighted average) Antidilutive stock options based on application of the treasury stock method 1.2 $ 102.84 0.7 $ 108.34 0.3 $ 110.18 Antidilutive stock options due to net loss available to holders of Common Stock 0.0 0.0 0.0 Antidilutive shares based on application of the treasury stock method 0.0 0.0 0.1 Antidilutive shares due to net loss available to holders of Common Stock 0.0 0.0 0.0 Total antidilutive stock options and shares 1.2 0.7 0.4 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. The initial exchange rate for the surplus notes was 10.1235 shares of Common Stock per each $1,000 principal amount of surplus notes. This was equivalent to 5.1 million shares and an initial exchange price per share of Common Stock of $98.78 . 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. 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 were 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. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | SHARE-BASED PAYMENTS Omnibus Incentive Plan Prudential Financial, Inc.’s Omnibus Incentive Plan provides stock-based awards including stock options, stock appreciation rights, restricted stock shares, restricted stock units, stock settled performance shares, and cash settled performance units. Dividend equivalents are generally provided on restricted stock shares and restricted stock units outstanding as of the record date. Dividend equivalents are generally accrued on target performance shares and units outstanding as of the record date. These dividend equivalents are paid only on the performance shares and units released up to a maximum of the target number of shares and units awarded. Generally, the requisite service period is the vesting period. There were 14,183,145 authorized shares available for grant under the Omnibus Incentive Plan as of December 31, 2019 . Assurance IQ Acquisition The Company acquired Assurance IQ on October 10, 2019. The terms of the Acquisition included compensation awards that involved share-based payment arrangements that are linked to retention and therefore fall under the reporting requirements of ASC 718, Stock Compensation. These compensation awards include stock options, restricted stock units and performance shares. Compensation Costs Compensation cost for restricted stock units, performance shares and performance units granted to employees is measured by the share price of the underlying Common Stock at the date of grant. Compensation cost for employee stock options is based on the fair values estimated on the grant date. Under the Omnibus Incentive Plan, the fair value of each stock option award is estimated using a binomial option pricing model on the date of grant for stock options issued to employees. For the Acquisition related awards, the fair value of each stock option award is based on its intrinsic value on the date of grant. The weighted average grant date assumptions used in the binomial option valuation model are as follows: 2019 2018 2017 Expected volatility 34.63 % 35.39 % 35.29 % Expected dividend yield 4.26 % 2.88 % 2.84 % Expected term 5.54 years 5.49 years 5.60 years Risk-free interest rate 2.50 % 2.64 % 2.06 % Expected volatilities are based on historical volatility of Prudential Financial’s Common Stock and implied volatilities from traded options on Prudential Financial’s Common Stock. The Company uses historical data and expectations of future exercise patterns to estimate option exercises and employee terminations within the valuation model. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods associated with the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The following chart summarizes the compensation cost recognized and the related income tax benefit for stock options, restricted stock units, performance shares and performance units for the years ended December 31: 2019 2018 2017 Omnibus Incentive Plan: Total Compensation Cost Recognized (1) Income Tax Benefit Total Compensation Cost Recognized (1) Income Tax Benefit Total Compensation Cost Recognized (1) Income Tax Benefit (in millions) Employee stock options $ 11 $ 3 $ 13 $ 3 $ 12 $ 5 Employee restricted stock units 149 35 139 32 142 51 Employee performance shares and performance units 71 17 3 1 109 41 Total $ 231 $ 55 $ 155 $ 36 $ 263 $ 97 __________ (1) Compensation costs related to retirement eligible participants are recorded on the grant date (typically in the first quarter of every year). 2019 Assurance IQ Acquisition: Total Income Tax (in millions) Employee stock options $ 4 $ 1 Employee restricted stock units 1 0 Employee performance shares 0 0 Total $ 5 $ 1 Compensation costs related to stock-based compensation plans capitalized in deferred acquisition costs for the years ended December 31, 2019 , 2018 and 2017 were de minimis. Stock Options Each stock option granted under the Omnibus Incentive Plan has an exercise price at the fair market value of Prudential Financial’s Common Stock on the date of grant and has a maximum term of 10 years . Generally, one third of the option grant vests in each of the first three years . Options granted related to the Acquisition have an exercise price based on the original strike price of the Assurance IQ options that they replaced and have a maximum term of 10 years from the date the Assurance IQ options were originally granted. Options granted related to the Acquisition generally vest quarterly over three years . A summary of the status of the Company’s stock option grants is as follows Employee Stock Options Omnibus Incentive Plan Assurance IQ Acquisition Shares Weighted Average Shares Weighted Average Exercise Price Outstanding at December 31, 2018 4,584,244 $ 72.03 0 $ 0.00 Granted 569,137 93.36 584,017 1.36 Exercised (541,473 ) 58.56 (36,825 ) 0.98 Forfeited (165 ) 76.71 0 0.00 Expired (746 ) 19.86 0 0.00 Outstanding at December 31, 2019 4,610,997 $ 76.26 547,192 $ 1.38 Exercisable at December 31, 2019 3,614,679 $ 70.03 33,596 $ 2.08 The weighted average grant date fair value of employee stock options granted under the Omnibus Incentive Plan during the years ended December 31, 2019 , 2018 and 2017 was $20.02 , $27.11 and $27.91 , respectively. For the Acquisition related awards, the weighted average grant date fair value of employee stock options granted during the year ended December 31, 2019 was $86.31 . The total intrinsic value (i.e., market price of the stock less the option exercise price) of employee stock options exercised during the years ended December 31, 2019 , 2018 and 2017 was $21 million , $28 million , and $109 million , respectively. For the Acquisition related awards, the total intrinsic value of employee stock options exercised during the year ended December 31, 2019 was $3 million . The weighted average remaining contractual term and the aggregate intrinsic value of stock options outstanding and exercisable as of December 31, 2019 is as follows: Employee Stock Options Omnibus Incentive Plan Assurance IQ Acquisition Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in millions) (in years) (in millions) Outstanding 4.53 $ 92 8.47 $ 51 Exercisable 3.73 $ 92 8.69 $ 3 Restricted Stock Units, Performance Share Awards and Performance Unit Awards A restricted stock unit is an unfunded, unsecured right to receive a share of Prudential Financial’s Common Stock at the end of a specified period of time, which is subject to forfeiture and transfer restrictions. Generally, the restrictions will lapse on the third anniversary of the date of grant. Performance shares and performance units are awards denominated in Prudential Financial’s Common Stock. The number of units is determined over the performance period and may be adjusted based on the satisfaction of certain performance goals for the Company. Performance share awards are payable in Prudential Financial’s Common Stock. Performance unit awards are payable in cash. Effective October 2019, the Company modified certain provisions of its long term compensation plan to settle the performance units component in Prudential Financial Common Stock. As a result, outstanding performance units were converted to performance shares except for certain employee directed deferrals in the deferred compensation plan which remain as performance units for the full life of the grant. Beginning in 2020, the Company will no longer grant performance unit awards. A summary of the Company’s restricted stock units, performance shares and performance unit awards under the Omnibus Incentive Plan is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Performance Share and Performance Unit Awards(1) Weighted Average Grant Date Fair Value Restricted at December 31, 2018(2) 4,760,914 $ 90.09 1,809,075 $ 81.55 Granted(2) 1,919,168 93.35 691,724 90.68 Forfeited (183,997 ) 100.09 (12,947 ) 93.26 Performance adjustment(3) 92,841 93.36 Released (2,024,896 ) 65.44 (757,807 ) 93.36 Restricted at December 31, 2019(2) 4,471,189 $ 102.25 1,822,886 $ 80.62 __________ (1) Performance share and performance unit awards reflect the target units awarded, reduced for forfeitures and releases to date. The actual number of units to be awarded at the end of each performance period will range between 0% and 125% of the target number of units granted, based upon a measure of the reported performance for the Company relative to stated goals. Performance awards granted to senior management in 2018 include a stated goal related to diversity & inclusion that can modify the performance result by +/- 10%. (2) Effective October 1, 2019, the Company modified existing performance share and performance unit awards to remove features of the grants that prevent having a mutual understanding of the key terms and conditions of the award between the employee and employer until the grants vested. Consequently, the weighted average grant date fair value as of December 31, 2019 is the closing stock price of Prudential Financial’s common stock as of September 30, 2019. The weighted average grant date fair value as of 12/31/2018 is the closing stock price of Prudential Financial’s common stock as of December 31, 2018 . (3) Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company. A summary of the Company’s restricted stock units and performance share awards related to the Acquisition is as follows: Restricted Weighted Performance Weighted Restricted at December 31, 2018 0 $ 0 0 $ 0.00 Granted 125,788 87.67 1,982,708 89.81 Forfeited 0 0 0 0.00 Performance adjustment(2) 0 0 0 0.00 Released 0 0 0 0.00 Restricted at December 31, 2019 125,788 $ 87.67 1,982,708 $ 89.81 ____ ______ (1) Performance share awards related to the Assurance IQ acquisition reflect the maximum number of units that have been awarded under the terms of the acquisition. The actual number of units that will be awarded at the end of the performance period will range between 0% and 100% of the number of units granted, based upon a predetermined formula of achieving variable profits between $900 million and $1,300 million . (2) Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company. The fair market value of restricted stock units, performance shares and performance units released under the Omnibus Incentive Plan for the years ended December 31, 2019 , 2018 and 2017 was $255 million , $238 million and $196 million , respectively. For the Acquisition related awards there were no restricted stock units or performance shares released for the year ended December 31, 2019 . The weighted average grant date fair value for restricted stock units granted under the Omnibus Incentive Plan during the years ended December 31, 2019 , 2018 and 2017 was $93.35 , $106.32 and $110.39 , respectively. The weighted average grant date fair value for performance shares and performance units granted under the Omnibus Incentive Plan during the years ended December 31, 2019 , 2018 and 2017 was $90.68 , $81.55 and $114.98 , respectively. The weighted average grant date fair value for restricted stock units granted for the Acquisition during the year ended December 31, 2019 was $87.67 . The weighted average grant date fair value for performance shares granted for the Acquisition during the year ended December 31, 2019 was $89.81 . Unrecognized Compensation Cost Unrecognized compensation cost for stock options under the Omnibus Incentive Plan as of December 31, 2019 was $2 million with a weighted average recognition period of 1.46 years . Unrecognized compensation cost for restricted stock units, performance shares and performance units under the Omnibus Incentive Plan as of December 31, 2019 was $153 million with a weighted average recognition period of 1.72 years . Unrecognized compensation cost for stock options related to the Acquisition as of December 31, 2019 was $45 million with a weighted average recognition period of 3.13 years . Unrecognized compensation cost for restricted stock units and performance shares related to the Acquisition as of December 31, 2019 was $10 million with a weighted average recognition period of 4.17 years . Tax Benefits Realized The Company’s tax benefit realized for exercises of stock options under the Omnibus Incentive Plan during the years ended December 31, 2019 , 2018 and 2017 was $5 million , $7 million and $39 million , respectively. The tax benefit realized for exercises of stock options related to the Acquisition during the year ended December 31, 2019 was $2 million . The Company’s tax benefit realized upon vesting of restricted stock units, performance shares and performance units under the Omnibus Incentive Plan for the years ended December 31, 2019 , 2018 and 2017 was $52 million , $49 million and $70 million , respectively. There were no vested restricted stock units or performance shares related to the Acquisition for the year ended December 31, 2019. Settlement of Awards The Company’s policy is to issue shares from Common Stock held in treasury upon exercise of stock options, the release of restricted stock units and performance shares. The Company uses cash to settle performance units. The amount of cash used to settle performance units during the years ended December 31, 2019 , 2018 and 2017 was $32 million , $29 million and $27 million , respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Segments The Company operates through eight segments: PGIM (our global investment management business); Retirement, Group Insurance, Individual Annuities, Individual Life, and Assurance IQ (collectively referred to as the U.S. Businesses); International Businesses; and Closed Block. In addition, the Company reports certain of its results of operations in its Corporate and Other operations. The PGIM segment provides asset management services related to public and private fixed income, public equity and real estate, commercial mortgage origination and servicing, and mutual funds and other retail services to institutional, private and sub-advisory clients (including mutual funds), insurance company separate accounts, government sponsored entities and the Company’s general account. The U.S. Businesses offer a broad range of products and solutions that cover protection, retirement, savings, income and investment needs. The U.S. Businesses are organized into three divisions: U.S. Workplace Solutions division. The U.S. Workplace Solutions division consists of the Retirement and Group Insurance segments. The Retirement segment provides a broad range of retirement investment and income products and services to retirement plan sponsors in the public, private and not-for-profit sectors. The Group Insurance segment provides a full range of group life, long-term and short-term group disability, and group corporate-, bank- and trust-owned life insurance in the U.S., primarily to institutional clients for use in connection with employee plans and affinity groups. U.S. Individual Solutions division. The U.S. Individual Solutions division consists of the Individual Annuities and Individual Life segments. The Individual Annuities segment develops and distributes individual variable and fixed annuity products, primarily to the U.S. mass affluent and affluent markets. The Individual Life segment develops and distributes individual variable life, term life and universal life insurance products primarily to the U.S. mass middle, mass affluent and affluent markets. Assurance IQ division. The Assurance IQ division consists of the Assurance IQ segment, a leading consumer solutions platform that offers a range of solutions that help meet consumers’ financial needs. Assurance IQ leverages data science and technology to distribute third-party life, health, Medicare and property and casualty products directly to retail shoppers primarily through its digital and independent agent channels. The International Businesses develops and distributes individual life insurance, retirement and related products to the mass affluent and affluent markets in Japan, Korea and other foreign countries through its Life Planner operations. In addition, similar products are offered to the broad middle income and mass affluent markets across Japan and the Company’s joint ventures in various foreign countries through Life Consultants, the proprietary distribution channel of the Company’s Gibraltar Life operation, as well as other channels, including banks and independent agencies. The Closed Block division includes certain in-force participating insurance and annuity products and corresponding assets that are used for the payment of benefits, expenses and policyholders’ dividends related to these products, as well as certain related assets and liabilities. In connection with demutualization, the Company ceased offering these participating products. The Closed Block division is accounted for as a divested business that is reported separately from the Divested and Run-off Businesses that are included in the Company’s Corporate and Other operations. See Note 15 for additional information on the Closed Block. Corporate Operations - consist primarily of: (1) capital that is not deployed in any business segment; (2) investments not allocated to business segments, including debt-financed investment portfolios, and tax credit and other tax-enhanced investments financed by business segments; (3) capital debt that is used or will be used to meet the capital requirements of the Company and the related interest expense; (4) our qualified and non-qualified pension and other employee benefit plans, after allocations to business segments; (5) corporate-level activities, after allocations to business segments, including strategic expenditures, acquisition costs, corporate governance, corporate advertising, philanthropic activities, deferred compensation, and costs related to certain contingencies and enhanced regulatory supervision; (6) expenses associated with the multi-year plan of programs that span across our businesses and the functional areas that support those businesses; (7) our ownership interest in a life insurance joint venture in China; (8) certain retained obligations relating to pre-demutualization policyholders; (9) our Risk Appetite Framework; (10) the foreign currency income hedging program used to hedge certain non-U.S. dollar denominated earnings in our International Businesses segment; (11) intercompany arrangements with our PGIM segment to translate certain non-U.S. dollar-denominated earnings at fixed currency exchange rates; and (12) transactions with and between other segments, including the elimination of intercompany transactions for consolidation purposes. Segment Accounting Policies. The accounting policies of the segments are the same as those described in Note 2. Results for each segment include earnings on attributed equity established at a level which management considers necessary to support each segment’s risks. Operating expenses specifically identifiable to a particular segment are allocated to that segment as incurred. Operating expenses not identifiable to a specific segment that are incurred in connection with the generation of segment revenues are generally allocated based upon the segment’s historical percentage of general and administrative expenses. For information related to significant acquisitions, see Note 1. For information related to the adoption of new accounting pronouncements, see Note 2. The segments’ results in prior years have been revised for these items, as applicable, to conform to the current year presentation. Adjusted Operating Income The Company analyzes the operating performance of each segment using “adjusted operating income.” Adjusted operating income does not equate to “Income (loss) 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, which are described in greater detail below: • Realized investment gains (losses), net, and related adjustments; • Charges related to realized investment gains (losses), net; • Market experience updates; • Divested and Run-off Businesses; • Other adjustments; and • Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests. These items are important to an understanding of overall results of operations. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and the Company’s definition of adjusted operating income may differ from that used by other companies. However, the Company believes that the presentation of adjusted operating income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses. Realized investment gains (losses), net, and related adjustments Realized investment gains (losses), net Adjusted operating income excludes “Realized investment gains (losses), net,” except for certain items described below. Significant activity excluded from adjusted operating income includes impairments and credit-related gains (losses) from sales of securities, the timing of which depends largely on market credit cycles and can vary considerably across periods, and interest rate-related gains (losses) from sales of securities, which are largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile. Additionally, adjusted operating income generally excludes realized investment gains (losses) from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset/liability management program related to the risk of those products. However, the effectiveness of the hedging program will ultimately be reflected in adjusted operating income over time. Trends in the underlying profitability of the Company’s businesses can be more clearly identified without the fluctuating effects of these transactions. The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income: Year Ended December 31, 2019 2018 2017 (in millions) Net gains (losses) from(1): Terminated hedges of foreign currency earnings $ 65 $ (15 ) $ (15 ) Current period yield adjustments $ 331 $ 367 $ 434 Principal source of earnings $ (37 ) $ 219 $ (8 ) __________ (1) In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to Divested and Run-off Businesses. See “Divested and Run-off Businesses” discussed below. Terminated Hedges of Foreign Currency Earnings. The amounts shown in the table above primarily reflect the impact of an intercompany arrangement between Corporate and Other operations and the International Businesses segment, pursuant to which the non-U.S. dollar-denominated earnings in all countries for a particular year, including its interim reporting periods, are translated at fixed currency exchange rates. The fixed rates are determined in connection with a currency hedging program designed to mitigate the risk that unfavorable rate changes will reduce the segment’s U.S. dollar-equivalent earnings. Pursuant to this program, the Company’s Corporate and Other operations may execute forward currency contracts with third-parties to sell the net exposure of projected earnings from the hedged currency in exchange for U.S. dollars at a specified exchange rate. The maturities of these contracts correspond with the future periods in which the identified non-U.S. dollar-denominated earnings are expected to be generated. These contracts do not qualify for hedge accounting under U.S. GAAP, so the resulting profits or losses are recorded in “Realized investment gains (losses), net.” When the contracts are terminated in the same period that the expected earnings emerge, the resulting positive or negative cash flow effect is included in adjusted operating income. Current Period Yield Adjustments. The Company uses interest rate and currency swaps and other derivatives to manage interest and currency exchange rate exposures arising from mismatches between assets and liabilities, including duration mismatches. For derivative contracts that do not qualify for hedge accounting treatment, the periodic swap settlements, as well as certain other derivative related yield adjustments are recorded in “Realized investment gains (losses), net,” and are included in adjusted operating income to reflect the after-hedge yield of the underlying instruments. In certain instances, when these derivative contracts are terminated or offset before their final maturity, the resulting realized gains or losses are recognized in adjusted operating income over periods that generally approximate the expected terms of the derivatives or underlying instruments in order for adjusted operating income to reflect the after-hedge yield of the underlying instruments. Included in the amounts shown in the table above are gains (losses) on certain derivative contracts that were terminated or offset before their final maturity of $41 million , $19 million and $53 million for the years ended 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was a $222 million deferred net gain related to certain derivative contracts that were terminated or offset before their final maturity, primarily in the International Businesses. Also included in the amounts shown in the table above are fees related to synthetic GICs of $147 million , $146 million and $159 million for the years ended 2019 , 2018 and 2017 , respectively. Synthetic GICs are accounted for as derivatives under U.S. GAAP and, therefore, these fees are recorded in “Realized investment gains (losses), net.” See Note 5 for additional information on synthetic GICs. Principal Source of Earnings. The Company conducts certain activities for which realized investment gains (losses) are a principal source of earnings for its businesses and are therefore included in adjusted operating income, particularly within the Company’s PGIM segment. For example, PGIM’s strategic investing business makes investments for sale or syndication to other investors or for placement or co-investment in the Company’s managed funds and structured products. The realized investment gains (losses) associated with the sale of these strategic investments, as well as the majority of derivative results, are a principal activity for this business and included in adjusted operating income. In addition, the realized investment gains (losses) associated with loans originated by the Company’s commercial mortgage operations, as well as related derivative results and retained mortgage servicing rights, are a principal activity for this business and are therefore included in adjusted operating income. Adjustments related to Realized investment gains (losses), net The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income: Year Ended December 31, 2019 2018 2017 (in millions) Net gains (losses) from: Investments carried at fair value through net income $ 558 $ (417 ) $ 184 Foreign currency exchange movements $ 61 $ (289 ) $ (135 ) Gains (losses), net, on experience-rated contracts (excluding derivatives and commercial mortgage and other loans)(1) $ 22 $ (153 ) $ 185 Other activities $ (31 ) $ (41 ) $ (20 ) __________ (1) Adjusted operating income excludes net investment gains (losses) on assets supporting experience-rated contractholder liabilities, related derivatives, and commercial mortgage and other loans. The activity for derivatives and commercial mortgage and other loans that support these experience-rated products are reported in “Realized investment gains (losses), net” and excluded from adjusted operating income. Investments carried at fair value through net income. The Company has certain investments in its general account portfolios that are carried at fair value with changes in fair value reported in “Other income (loss).” Examples include the Company’s investments in equity securities and fixed maturities designated as trading. Consistent with the exclusion of realized investment gains (losses) with respect to other investments managed on a consistent basis, the net gains or losses on these investments are excluded from adjusted operating income. Foreign Currency Exchange Movements. The Company has certain assets and liabilities for which, under U.S. GAAP, the changes in value, including those associated with changes in foreign currency exchange rates during the period, are recorded in “Other income (loss).” To the extent the foreign currency exposure on these assets and liabilities is economically hedged or considered part of the Company’s capital funding strategies for its international subsidiaries, the change in value included in “Other income (loss)” is excluded from adjusted operating income. The insurance liabilities are supported by investments denominated in corresponding currencies, including a significant portion designated as available-for-sale. While these non-yen denominated assets and liabilities are economically hedged, unrealized gains (losses) on available-for-sale investments, including those arising from foreign currency exchange rate movements, are recorded in AOCI under U.S. GAAP, while the non-yen denominated liabilities are remeasured for foreign currency exchange rate movements, with the related change in value recorded in earnings within “Other income (loss).” Due to this non-economic volatility that has been reflected in U.S. GAAP earnings, the change in value recorded within “Other income (loss)” is excluded from adjusted operating income. Investment gains (losses) on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes. Certain products included in the Retirement and International Businesses segments are experience-rated in that investment results associated with these products are expected to ultimately accrue to contractholders. The majority of investments supporting these experience-rated products are carried at fair value, with realized and unrealized gains (losses) reported in “Other income (loss)” and the related interest and dividend income reported in “Net investment income.” To a lesser extent, these experience-rated products are also supported by derivatives and commercial mortgage and other loans. The derivatives are carried at fair value, with realized and unrealized gains (losses) reported in “Realized investment gains (losses), net.” The commercial mortgage and other loans are carried at unpaid principal, net of unamortized discounts and an allowance for losses, with gains (losses) on sales and changes in the valuation allowance for commercial mortgage and other loans reported in “Realized investment gains (losses), net.” Adjusted operating income excludes net investment gains (losses) on assets supporting experience-rated contractholder liabilities, related derivatives and commercial mortgage and other loans. This is consistent with the exclusion of realized investment gains (losses) with respect to other investments supporting insurance liabilities managed on a consistent basis. In addition, to be consistent with the historical treatment of charges related to realized investment gains (losses) on investments, adjusted operating income also excludes the change in contractholder liabilities due to asset value changes in the pool of investments (including changes in the fair value of commercial mortgage and other loans) supporting these experience-rated contracts, which are reflected in “Interest credited to policyholders’ account balances.” The result of this approach is that adjusted operating income for these products includes net fee revenue and interest spread we earn on these experience-rated contracts, and excludes changes in fair value of the pool of investments, both realized and unrealized, that we expect will ultimately accrue to the contractholders. Other Activities. The Company excludes certain other items from adjusted operating income that are consistent with similar adjustments described above. Charges related to realized investment gains (losses), net Charges that relate to realized investment gains (losses) are also excluded from adjusted operating income, and include the following: • The portion of the amortization of DAC, VOBA, unearned revenue reserves and DSI for certain products that is related to net realized investment gains (losses). • Policyholder dividends and interest credited to policyholders’ account balances that relate to certain life policies that pass back certain realized investment gains (losses) to the policyholder, and reserves for future policy benefits for certain policies that are affected by net realized investment gains (losses). • Market value adjustments paid or received upon a contractholder’s surrender of certain of the Company’s annuity products as these amounts mitigate the net realized investment gains or losses incurred upon the disposition of the underlying invested assets. Market experience updates The Company had 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 related to variable annuity and variable and universal life products. Divested and Run-off Businesses The contribution to income (loss) of Divested and Run-off Businesses that have been or will be sold or exited, including businesses that have been placed in wind down, but that did not qualify for “discontinued operations” accounting treatment under U.S. GAAP, are excluded from adjusted operating income as the results of Divested and Run-off Businesses are not considered relevant to understanding the Company’s ongoing operating results. The Closed Block division is accounted for as a divested business because it consists primarily of certain participating insurance and annuity products that the Company ceased selling at demutualization in 2001. See Note 15 for further information on the Closed Block. Other adjustments Other adjustments represent all other adjustments that are excluded from adjusted operating income. These include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration. Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests Equity in earnings of operating joint ventures, on a pre-tax basis, are included in adjusted operating income as these results are a principal source of earnings. These earnings are reflected on a U.S. GAAP basis on an after-tax basis as a separate line on the Company’s Consolidated Statements of Operations. Earnings attributable to noncontrolling interests are excluded from adjusted operating income. Earnings attributable to noncontrolling interests represents the portion of earnings from consolidated entities that relates to the equity interests of minority investors, and are reflected on a U.S. GAAP basis as a separate line on the Company’s Consolidated Statements of Operations. Reconciliation of adjusted operating income and net income (loss) The table below reconciles adjusted operating income before income taxes to income before income taxes and equity in earnings of operating joint ventures: Year ended December 31, 2019 2018 2017 (in millions) Adjusted operating income before income taxes by segment: PGIM $ 998 $ 959 $ 979 U.S. Businesses: U.S. Workplace Solutions division: Retirement 1,301 1,049 1,244 Group Insurance 285 229 253 Total U.S. Workplace Solutions division 1,586 1,278 1,497 U.S. Individual Solutions division: Individual Annuities(1) 1,843 1,925 2,198 Individual Life 87 223 (191 ) Total U.S. Individual Solutions division 1,930 2,148 2,007 Assurance IQ division(2): Assurance IQ (9 ) 0 0 Total Assurance IQ division (9 ) 0 0 Total U.S. Businesses 3,507 3,426 3,504 International Businesses 3,359 3,266 3,198 Corporate and Other (1,766 ) (1,283 ) (1,437 ) Total segment adjusted operating income before income taxes 6,098 6,368 6,244 Reconciling Items: Realized investment gains (losses), net, and related adjustments(3) (764 ) 466 (417 ) Charges related to realized investment gains (losses), net (125 ) (316 ) 544 Market experience updates(4) (462 ) 0 0 Divested and Run-off Businesses: Closed Block division 36 (62 ) 45 Other Divested and Run-off Businesses 452 (1,535 ) 38 Other adjustments(5) (47 ) 0 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (103 ) (87 ) 33 Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures $ 5,085 $ 4,834 $ 6,487 __________ (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) Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information. (3) Prior period amounts have been updated to conform to current period presentation. (4) 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 had historically recognized these impacts in adjusted operating income. (5) Represents adjustments not included in the above reconciling items. “Other adjustments” include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration. Reconciliation of select financial information The tables below present certain financial information for the Company’s segments and its Corporate and Other operations, including assets by segment and revenues, and benefits and expenses by segment on an adjusted operating income basis, and the reconciliation of the segment totals to amounts reported in the Consolidated Financial Statements. As of December 31, 2019 2018 (in millions) Assets by segment: PGIM 47,655 47,690 U.S. Businesses: U.S. Workplace Solutions division: Retirement 198,153 175,525 Group Insurance 43,712 41,727 Total U.S. Workplace Solutions division 241,865 217,252 U.S. Individual Solutions division: Individual Annuities 189,040 167,899 Individual Life 96,072 83,739 Total U.S. Individual Solutions division 285,112 251,638 Assurance IQ division(1): Assurance IQ 2,639 0 Total Assurance IQ division 2,639 0 Total U.S. Businesses 529,616 468,890 International Businesses 241,071 222,633 Corporate and Other 16,883 16,826 Closed Block division 61,327 59,039 Total assets per Consolidated Statements of Financial Position $ 896,552 $ 815,078 __________ (1) Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information. Year Ended December 31, 2019 Revenues, and benefits and expenses on an adjusted operating income basis by segment Total Revenues Net Investment Income Total Benefits and Expenses Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) PGIM $ 3,589 $ 200 $ 2,591 $ 0 $ 0 $ 0 $ 49 $ 6 U.S. Businesses: U.S. Workplace Solutions division: Retirement 15,064 4,738 13,763 11,061 1,503 0 46 38 Group Insurance 5,750 624 5,465 4,257 286 0 2 7 Total U.S. Workplace Solutions division 20,814 5,362 19,228 15,318 1,789 0 48 45 U.S. Individual Solutions division: Individual Annuities 4,995 856 3,152 435 334 0 122 513 Individual Life 6,115 2,247 6,028 2,778 830 38 774 577 Total U.S. Individual Solutions division 11,110 3,103 9,180 3,213 1,164 38 896 1,090 Assurance IQ division(1): Assurance IQ 101 0 110 0 0 0 0 0 Total Assurance IQ division 101 0 110 0 0 0 0 0 Total U.S. Businesses 32,025 8,465 28,518 18,531 2,953 38 944 1,135 International Businesses 23,195 5,558 19,836 14,535 918 48 25 1,239 Corporate and Other (677 ) 579 1,089 36 0 0 521 (46 ) Total revenues, and benefits and expenses on an adjusted operating income basis 58,132 14,802 52,034 33,102 3,871 86 1,539 2,334 Reconciling items: Realized investment gains (losses), net, and related adjustments 185 (36 ) 949 0 949 0 0 0 Charges related to realized investment gains (losses), net (254 ) 0 (129 ) (136 ) (94 ) 0 0 (181 ) Market experience updates(2) (77 ) 0 385 200 4 0 0 144 Divested and Run-off Businesses: Closed Block division 5,642 2,323 5,606 2,907 130 2,187 7 29 Other Divested and Run-off Businesses 1,330 496 878 747 20 1 4 6 Other adjustments(3) (5 ) 0 42 0 0 0 0 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (146 ) 0 (43 ) 0 0 0 0 0 Total revenue, and benefits and expenses per Consolidated Statements of Operations $ 64,807 $ 17,585 $ 59,722 $ 36,820 $ 4,880 $ 2,274 $ 1,550 $ 2,332 Year Ended December 31, 2018 Revenues, and benefits and expenses on an adjusted operating income basis by segment Total Revenues Net Investment Income Total Benefits and Expenses Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) PGIM $ 3,294 $ 73 $ 2,335 $ 0 $ 0 $ 0 $ 40 $ 8 U.S. Businesses: U.S. Workplace Solutions division: Retirement 16,825 4,377 15,776 13,215 1,430 0 35 33 Group Insurance 5,685 616 5,456 4,241 282 0 2 5 Total U.S. Workplace Solutions division 22,510 4,993 21,232 17,456 1,712 0 37 38 U.S. Individual Solutions division: Individual Annuities 4,966 694 3,041 370 335 0 67 511 Individual Life 5,831 2,033 5,608 2,489 766 37 714 368 Total U.S. Individual Solutions division 10,797 2,727 8,649 2,859 1,101 37 781 879 Total U.S. Businesses 33,307 7,720 29,881 20,315 2,813 37 818 917 International Businesses 22,234 5,245 18,968 14,009 907 62 21 1,233 Corporate and Other (705 ) 452 578 (12 ) 0 0 535 (44 ) Total revenues, and benefits and expenses on an adjusted operating income basis 58,130 13,490 51,762 34,312 3,720 99 1,414 2,114 Reconciling items: Realized investment gains (losses), net, and related adjustments(4) (244 ) (41 ) (710 ) 0 (710 ) 0 0 0 Charges related to realized investment gains (losses), net (274 ) 0 42 (75 ) 40 0 0 118 Divested and Run-off Businesses: Closed Block division 4,678 2,288 4,740 2,972 132 1,236 2 35 Other Divested and Run-off Businesses 805 439 2,340 2,195 14 1 4 6 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (103 ) 0 (16 ) 0 0 0 0 0 Total revenue, and benefits and expenses per Consolidated Statements of Operations $ 62,992 $ 16,176 $ 58,158 $ 39,404 $ 3,196 $ 1,336 $ 1,420 $ 2,273 Year Ended December 31, 2017 Revenues, and benefits and expenses on an adjusted operating income basis by segment Total Revenues Net Investment Income Total Benefits and Expenses Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) PGIM $ 3,355 $ 170 $ 2,376 $ 0 $ 0 $ 0 $ 27 $ 11 U.S. Businesses: U.S. Workplace Solutions division: Retirement 13,843 4,482 12,599 10,035 1,507 0 26 26 Group Insurance 5,471 637 5,218 4,073 274 0 5 14 Total U.S. Workplace Solutions division 19,314 5,119 17,817 14,108 1,781 0 31 40 U.S. Individual Solutions division: Individual Annuities 5,110 742 2,912 318 330 0 70 464 Individual Life 4,974 1,948 5,165 2,100 719 36 648 483 Total U.S. Individual Solutions division 10,084 2,690 8,077 2,418 1,049 36 718 947 Total U.S. Businesses 29,398 7,809 25,894 16,526 2,830 36 749 987 International Businesses 21,560 5,027 18,362 13,440 899 48 13 1,138 Corporate and Other (667 ) 493 770 21 0 0 533 (43 ) Total revenues, and benefits and expenses on an adjusted operating income basis 53,646 13,499 47,402 29,987 3,729 84 1,322 2,093 Reconciling items: Realized investment gains (losses), net, and related adjustments(4) (266 ) (38 ) 151 0 151 0 0 0 Charges related to realized investment gains (losses), net (215 ) 0 (759 ) (69 ) (191 ) 0 0 (550 ) Divested and Run-off Businesses: Closed Block division 5,826 2,653 5,781 3,219 133 2,007 1 37 Other Divested and Run-off Businesses 775 321 737 657 0 0 4 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (77 ) 0 (110 ) 0 0 0 0 0 Total revenue, and benefits and expenses per Consolidated Statements of Operations $ 59,689 $ 16,435 $ 53,202 $ 33,794 $ 3,822 $ 2,091 $ 1,327 $ 1,580 __________ (1) Assurance |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commercial Mortgage Loan Commitments December 31, 2019 2018 (in millions) Total outstanding mortgage loan commitments $ 2,129 $ 3,299 Portion of commitment where prearrangement to sell to investor exists $ 751 $ 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) December 31, 2019 2018 (in millions) Expected to be funded from the general account and other operations outside the separate accounts $ 7,372 $ 6,941 Expected to be funded from separate accounts $ 49 $ 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 December 31, 2019 2018 (in millions) Indemnification provided to certain clients for securities lending and securities repurchase transactions(1) $ 5,071 $ 5,399 Fair value of related collateral associated with above indemnifications(1) $ 5,204 $ 5,503 Accrued liability associated with guarantee $ 0 $ 0 __________ (1) As of December 31, 2019 , indemnification provided to certain clients and fair value of related collateral associated with such indemnification include $38 million and $37 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 December 31, 2019 2018 (in millions) Guaranteed value of third parties’ assets $ 80,009 $ 79,215 Fair value of collateral supporting these assets $ 81,604 $ 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 Consolidated Statements of Financial Position. Indemnification of Serviced Mortgage Loans December 31, 2019 2018 (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 2,113 $ 1,828 First-loss exposure portion of above $ 622 $ 543 Accrued liability associated with guarantees $ 19 $ 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 $16,878 million and $14,335 million of mortgages subject to these loss-sharing arrangements as of December 31, 2019 and 2018 , respectively, all of which are collateralized by first priority liens on the underlying multi-family residential properties. As of December 31, 2019 , these mortgages had a weighted-average debt service coverage ratio of 1.88 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 years ended December 31, 2019 , 2018 , and 2017 . Other Guarantees December 31, 2019 2018 (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 December 31, 2019 and 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. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guarantee associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. In addition, Japan has established the Japan Policyholders Protection Corporation as a contingency to protect policyholders against the insolvency of life insurance companies in Japan through assessments to companies licensed to provide life insurance. Assets and liabilities held for insolvency assessments were as follows: December 31, 2019 2018 (in millions) Other assets: Premium tax offset for future undiscounted assessments $ 48 $ 54 Premium tax offset currently available for paid assessments 3 3 Total $ 51 $ 57 Other liabilities: Insolvency assessments $ 37 $ 39 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 December 31, 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. Labor and Employment Matters Prudential of Brazil Labor and Employment Matters Prudential of Brazil (“POB”) sells insurance products to consumers through life planner franchisees (“Life Planners”), who are engaged as independent life insurance brokers and not as employees. When a Life Planner’s contractual relationship with POB is terminated, in many cases the Life Planner commences a labor suit against POB alleging entitlement to employment related benefits. POB is a defendant in numerous such lawsuits in Brazil brought by former Life Planners and has been subject to regulatory actions challenging the validity of POB’s franchise model. POB has continued to receive additional labor suits and regulatory actions involving the operation of its franchise model notwithstanding steps that POB has taken to attempt to mitigate the labor risk by modifying its franchise model. POB continues to evaluate changes to its franchise model to further mitigate this risk. Individual Annuities, Individual Life and Group Insurance Broderick v. The Prudential Insurance Company of America, et al. In December 2016, a complaint entitled Julie Han Broderick, Darron Smith and Thomas Schreck v. The Prudential Insurance Company of America, et al., was filed in the Superior Court of New Jersey, Law Division - Essex County. The complaint: (i) alleges that defendants terminated plaintiffs’ employment for engaging in whistleblowing conduct involving the sale of MyTerm policies through Wells Fargo and violated New Jersey’s Conscientious Employee Protection Act; and (ii) seeks back and front pay, compensatory and punitive damages and attorneys’ fees and costs. In January 2017, defendants filed an answer to the complaint. In December 2019, the court granted the Company’s summary judgment motion and dismissed the complaint. Huffman v. The Prudential Insurance Company of America In September 2010, Huffman v. The Prudential Insurance Company of America , a purported nationwide class action brought on behalf of beneficiaries of group life insurance contracts owned by the Employee Retirement Income Security Act (“ERISA”)-governed employee welfare benefit plans was filed in the United States District Court for the Eastern District of Pennsylvania, challenging the use of retained asset accounts in employee welfare benefit plans to settle death benefit claims as a violation of ERISA and seeking injunctive relief and disgorgement of profits. In July 2011, Prudential Insurance’s motion for judgment on the pleadings was denied. In February 2012, plaintiffs filed a motion to certify the class. In April 2012, the court stayed the case pending the outcome of a case involving another insurer that is before the Third Circuit Court of Appeals. In August 2014, the court lifted the stay, and in September 2014, plaintiffs filed a motion seeking leave to amend the complaint. In July 2015, the court granted plaintiffs’ motion to file an amended complaint. Plaintiffs’ amended complaint added two new class representatives, a new common law breach of fiduciary duty claim, and a prohibited transactions claim under Section 406(a)(1)(C) of ERISA. In August 2015, Prudential Insurance filed its answer to the first amended complaint. In February 2016, plaintiffs filed a class certification motion. In September 2016, plaintiffs’ motion for class certification was denied, and in October 2016, plaintiffs filed a motion for reconsideration. In December 2016, the motion for reconsideration was denied. In February 2017, all parties filed motions for summary judgment. In December 2017, the court granted plaintiffs’ motion for summary judgment as to their breach of fiduciary duty claims under ERISA, dismissed plaintiffs’ state law claim, and denied the motions for summary judgment on the prohibited transaction claim. In December 2017, plaintiffs filed a motion to alter or amend the prior orders denying class certification. In January 2018, the court denied in part, and granted in part, plaintiffs’ class certification motion and certified a class limited to participants in the two employer plans involving the named plaintiffs. In February 2018, Prudential Insurance filed a petition with the Third Circuit Court of Appeals seeking permission to appeal the class certification decision. In April 2018, the Third Circuit Court of Appeals denied Prudential Insurance’s request for leave to appeal the class certification decision. In November 2018, the court issued an order granting preliminary approval of plaintiffs’ proposed Settlement and Distribution Plan. In April 2019, the court entered a Final Judgment and Order of Dismissal. This matter is now closed. Behfarin v. Pruco Life In July 2017, a putative class action complaint entitled Richard Behfarin v. Pruco Life Insurance Company was filed in the United States District Court for the Central District of California, alleging that the Company imposes charges on owners of universal life policies to cure defaults and/or reinstate lapses, that are inconsistent with the applicable universal life policy. The complaint includes claims for breach of contract, breach of implied covenant of good faith and fair dealing, and violation of California law, and seeks unspecified damages along with declaratory and injunctive relief. In September 2017, the Company filed its answer to the complaint. In September 2018, plaintiff filed a motion for class certification. In October 2019, plaintiff filed: (1) the First Amended Complaint adding Prudential Insurance Company of America and Pruco Life Insurance Company of New Jersey as defendants; and (2) a motion seeking preliminary certification of a settlement class, appointment of a class representative and class counsel, and preliminary approval of the proposed class action settlement. In November 2019, the court issued an order granting the motion for preliminary approval of the settlement. 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 December 2017, Total Asset Recovery Services, LLC, on behalf of the State of New York, filed a Second Amended Complaint in the Supreme Court of the State of New York, County of New York, against, among other 19 defendants, Prudential Financial, Inc., The Prudential Insurance Company of America and Prudential Insurance Agency, LLC, alleging that the Company failed to escheat life insurance proceeds in violation of the New York False Claims Act. The second amended complaint seeks injunctive relief, compensatory damages, civil penalties, treble damages, prejudgment interest, attorneys’ fees and costs. In May 2018, defendants filed a motion to dismiss the Second Amended Complaint. 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. Securities Litigation City of Warren v. PFI, et al In November 2019, a putative class action complaint entitled City of Warren Police and Fire Retirement System v. Prudential Financial, Inc., Charles F. Lowrey and Kenneth Y. Tanji, was filed in the United States District Court for the District of New Jersey. The complaint asserts claims for federal securities law violations against PFI, and Charles Lowrey, PFI’s chief executive officer, and Kenneth Tanji, PFI’s chief financial officer, individually, and alleges that: (i) the Company's reserve assumptions failed to account for adversely developing mortality experience in the Individual Life business segment; (ii) the Company's reserves were insufficient to satisfy its future policy benefit liabilities; and (iii) the Company materially understated its liabilities and overstated net income due to flawed assumptions in calculating mortality experience. The putative class includes all purchasers of PFI common stock between February 15, 2019 and August 2, 2019. Donald P. Crawford v. PFI, et al. In January 2020, a putative class action complaint entitled David P. Crawford v. Prudential Financial, Charles F. Lowrey and Kenneth Tanji, was filed in the United States District Court for the District of New Jersey. The complaint asserts claims for federal securities law violations against PFI, and Charles Lowrey and Kenneth Tanji, individually, and alleges that: (i) the Company’s reserve assumptions failed to account for adversely developing mortality experience in the Individual Life business segment; (ii) the Company’s reserves were insufficient to satisfy its future policy benefit liabilities; and (iii) the Company materially understated its liabilities and overstated net income due to flawed assumptions in calculating mortality experience. The putative class includes all purchasers of PFI common stock between February 15, 2019 and August 2, 2019. In January 2020, the Board of Directors received a shareholder demand letter containing allegations: (i) of wrongdoing similar to those alleged in the City of Warren and Crawford complaints; and (ii) that certain of the Company’s current and former directors and executive officers breached their fiduciary duties of loyalty, due care and candor. The demand letter requests that the Board of Directors investigate and commence legal proceedings against the named individuals to recover for the Company’s benefit the damages purportedly sustained by the Company as a result of the alleged breaches. The Company may become subject to additional actions related to this matter. Other Matters Cho v. PICA, et al In November 2019, a putative class action complaint entitled Cho v. The Prudential Insurance Company of America, et. al., was filed in the United States District Court for the District of New Jersey. The Complaint purports to be brought on behalf of participants in the Prudential Employee Savings Plan (the “Plan”) and (i) alleges that Defendants failed to fulfill their fiduciary obligations under the Employee Retirement Income Security Act of 1974, in the administration, management and operation of the Plan, including engaging in prohibited transactions; and (ii) seeks declaratory, injunctive and equitable relief, and unspecified damages including interest, attorneys’ fees and costs. In January 2020, defendants filed a motion to dismiss the complaint. Residential Mortgage-Backed Securities (“RMBS”) Trustee Litigation In June 2014, the Company, together with nine other institutional investors, filed six actions in New York state court against certain RMBS trustees. The actions, which are brought derivatively on behalf of more than 2,200 RMBS trusts, seek unspecified damages attributable to the trustees’ alleged failure to: (i) enforce the trusts’ respective repurchase rights against sellers of defective mortgage loans; and (ii) properly monitor the respective mortgage loan servicers. The complaints assert claims for breach of contract, breach of fiduciary duty, negligence and violations of the Trust Indenture Act of 1939. In July 2014, the Company amended its complaint against each of the six defendants. In November 2014, the Company filed amended complaints against each of the trustee bank defendants in federal court in the Southern District of New York. In December 2014, the New York State Court actions were dismissed without prejudice upon the Company’s request. The six actions described above are captioned: PICA et al. v. Bank of New York Mellon (“BONYM”) In March 2015, defendants filed a motion to dismiss the amended complaint. In March 2016, the court issued a decision involving BONYM’s motion to dismiss: (i) denying the motion to dismiss the Pooling and Servicing Agreement (“PSA”) trust claims for lack of jurisdiction; (ii) denying the motion regarding claims for violations of the Trust Indenture Act of 1939 and breach of contract; and (iii) granting the motion regarding claims for negligence and breach of fiduciary duty. In October 2019, the federal court action was dismissed with prejudice. This matter is now closed. PICA et al. v. Citibank N.A. In February 2015, defendants filed a motion to dismiss the amended complaint. In September 2015, the court issued a decision involving Citibank's motion to dismiss: (i) with respect to the PSA trusts, granting the motion and declining to exercise supplemental jurisdiction; (ii) with respect to the Indenture trusts, denying the motion regarding claims for breach of contract, violations of the Trust Indenture Act of 1939, negligence and breach of fiduciary duty concerning the duty to avoid conflicts of interest; and (iii) with respect to the Indenture trusts, granting the motion to dismiss claims for negligence and breach of fiduciary duty concerning the duty of care. In November 2015, the Company, together with other institutional investors, filed a complaint in New York State Supreme Court, captioned Fixed Income Shares: Series M, et al. v. Citibank N.A. , asserting claims relating to the PSA trusts. In February 2016, Citibank filed a motion to dismiss the state court complaint. In August 2016, plaintiffs filed an amended complaint in state court, and in September 2016, Citibank filed a motion to dismiss the amended complaint and plaintiffs filed in federal court a motion for class certification. In April 2017, Citibank filed a motion for summary judgment in the federal court action. In June 2017, the state court issued a decision regarding defendants’ motion to dismiss the amended complaint: (i) sustaining plaintiffs’ breach of contract claims concerning Citibank’s pre-Event of Default obligations; (ii) dismissing plaintiffs’ breach of contract claims concerning Citibank’s post-Event of Default obligations; (iii) sustaining plaintiffs’ implied covenant of good faith and fair dealing claim; (iv) dismissing plaintiffs’ claim for breach of fiduciary duty; and (v) dismissing plaintiffs’ claim for breach of duty to avoid conflicts of interest. In July 2017, Citibank filed an appeal to the Appellate Division of the Supreme Court of New York, First Department, from the June 2017 decision denying, in part, its motion to dismiss. In January 2018, the First Department: (i) affirmed the trial court’s ruling upholding the breach of contract claim based on the trustee’s failure to give written notice of breaches of representations and warranties; and (ii) reversed the trial court’s order that sustained plaintiffs’ breach of contract and implied covenant of good faith and fair dealing claims concerning servicing violations. In March 2018, the federal court granted Citibank’s motion for summary judgment. In April 2018, plaintiffs filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit from the March 2018 decision granting summary judgment. In June 2019, the federal court action was dismissed with prejudice, and in September 2019, the state court action was also dismissed with prejudice. This matter is now closed. PICA et al. v. Deutsche Bank, et al. In April 2015, defendants filed a motion to dismiss the amended complaint. In January 2016, the court issued a decision involving Deutsche Bank’s motion to dismiss: (i) with respect to the PSA trusts, granting the motion and declining to exercise supplemental jurisdiction; and (ii) with respect to the Indenture trusts, granting leave for plaintiffs to file an amended complaint. In February 2016, the Company, together with other institutional investor plaintiffs, filed an amended complaint in federal court. In March 2016, the Company, together with other institutional investors, filed a complaint in California State Superior Court, captioned BlackRock Balanced Capital Portfolio (FI), et al. v. Deutsche Bank Trust Company Americas , asserting claims relating to the PSA trusts. In May 2016, the Company, together with other institutional investors, filed an amended class action complaint in California State Superior Court. In July 2016, defendant filed a motion to dismiss the amended federal court complaint. In August 2016, defendant filed a demurrer and motion to strike the amended state court class action complaint. In October 2016, the court issued a decision regarding defendants’ motion to dismiss: (i) sustaining plaintiffs’ breach of contract claims concerning the trust at issue; (ii) dismissing plaintiffs’ tort claims for breach of fiduciary duty; and (iii) dismissing plaintiffs’ claims of breach of duty to avoid conflicts of interest. The court granted plaintiffs’ leave to file an amended complaint. In January 2017, the federal court issued a decision involving Deutsche Bank’s motion to dismiss: (i) granting the motion with respect to plaintiff’s conflicts of interest claims; and (ii) denying the motion with respect to plaintiffs’ representations-and-warranties claims, servicer-notification claims, event-of-default claims and Trust Indenture Act claims. In February 2017, the court issued a decision regarding defendants’ motion to dismiss the amended complaint: (i) sustaining plaintiffs’ breach of contract claims concerning the failure to remedy known servicing violations as to all sixty-two trusts at issue; (ii) sustaining plaintiffs’ breach of contract claims concerning the failure to enforce seller representation and warranty claims as to forty-one trusts, and dismissing such claims as to the remaining twenty-one trusts; (iii) dismissing plaintiffs’ claim for breach of fiduciary duty; and (iv) dismissing plaintiffs’ claim for breach of duty to avoid conflicts of interest. In January 2018, plaintiffs filed motions for class certification in the state and federal court actions. In May 2018, plaintiffs’ motion for class certification was denied in the state court action. In June 2018, plaintiffs filed a Notice of Appeal to the California Court of Appeal of the denial of their class certification motion. In December 2018, the California Court of Appeal entered the parties’ stipulation dismissing plaintiffs’ appeal of the class certification decision. In December 2018, the federal court action was dismissed with prejudice. In January 2019, the state court action was dismissed with prejudice. This matter is now closed. PICA et al. v. HSBC, et al . In January 2015, defendants filed a motion to dismiss the amended complaint. In June 2015, the court granted in part, and denied in part, defendants’ motion to dismiss the complaint for failure to state a claim and granted leave to file an amended complaint. In July 2015, plaintiffs filed an amended complaint. In January 2017, plaintiffs filed a motion seeking class certification and appointing class representatives and class counsel. In February 2018, the court denied plaintiffs’ motion for class certification and plaintiffs filed a petition with the Second Circuit Court of Appeals seeking permission to appeal the class certification decision. In May 2018, the Second Circuit denied plaintiffs’ request for permission to appeal the denial of their class certification motion. 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 February 2015, defendants filed a motion to dismiss the amended complaint. In May 2015, the court granted defendants’ motion to dismiss: (i) declining to exercise supplemental jurisdiction regarding claims involving the PSA trusts; and (ii) granting leave for plaintiffs to file an amended complaint asserting direct claims involving the Indenture trusts. In June 2015, the Company, together with other institutional investors, filed a complaint in New York State Supreme court, captioned BlackRock Balanced Capital Portfolio (FI), et al. v. U.S. Bank Nat’l Ass’n , asserting claims relating to the PSA trusts. In July 2015, plaintiffs filed with the court an amended complaint asserting direct claims relating to the Indenture trusts. In August 2015, defendant filed a motion to dismiss the amended class action complaint in the federal court action. In September 2015, defendant filed a motion to dismiss the class action complaint in the state court action. In February 2016, the federal dis |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The unaudited quarterly results of operations for the years ended December 31, 2019 and 2018 are summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 (in millions, except per share amounts) 2019 Total revenues $ 15,091 $ 15,388 $ 15,105 $ 19,223 Total benefits and expenses 13,951 14,512 13,380 17,879 Net income (loss) 937 738 1,425 1,138 Less: Income attributable to noncontrolling interests 5 30 7 10 Net income (loss) attributable to Prudential Financial, Inc. $ 932 $ 708 $ 1,418 $ 1,128 Basic earnings per share—Common Stock(1): Net income (loss) attributable to Prudential Financial, Inc. $ 2.25 $ 1.73 $ 3.47 $ 2.78 Diluted earnings per share—Common Stock(1): Net income (loss) attributable to Prudential Financial, Inc. $ 2.22 $ 1.71 $ 3.44 $ 2.76 2018 Total revenues $ 13,757 $ 14,655 $ 16,148 $ 18,432 Total benefits and expenses 12,064 14,405 14,310 17,379 Net income (loss) 1,364 200 1,675 849 Less: Income attributable to noncontrolling interests 1 3 3 7 Net income (loss) attributable to Prudential Financial, Inc. $ 1,363 $ 197 $ 1,672 $ 842 Basic earnings per share—Common Stock(1)(2): Net income (loss) attributable to Prudential Financial, Inc. $ 3.19 $ 0.46 $ 3.97 $ 2.01 Diluted earnings per share—Common Stock(1)(2): Net income (loss) attributable to Prudential Financial, Inc. $ 3.14 $ 0.46 $ 3.90 $ 1.99 __________ (1) Quarterly earnings per share amounts may not add to the full year amounts due to the averaging of shares. (2) Basic and Diluted earnings per share of Common Stock for the second quarter of 2018 reflected a net charge in the Long-Term Care business as a result of the Company’s annual reviews and update of assumptions and other refinements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Common Stock Dividend Declaration On February 4, 2020, Prudential Financial’s Board of Directors declared a cash dividend of $1.10 per share of Common Stock, payable on March 12, 2020 to shareholders of record as of February 18, 2020. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than investments in Related Parties Schedule I - Summary of Investments Other Than Investments In Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other Than Investments In Related Parties | PRUDENTIAL FINANCIAL, INC. Schedule I Summary of Investments Other Than Investments in Related Parties As of December 31, 2019 (in millions) Type of Investment Amortized Cost or Cost(1) Fair Value Amount Shown in the Balance Sheet Fixed maturities, available-for-sale: Bonds: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 30,625 $ 35,659 $ 35,659 Obligations of U.S. states and their political subdivisions 10,068 11,497 11,497 Foreign governments 98,356 119,054 119,054 Asset-backed securities 13,067 13,174 13,174 Residential mortgage-backed securities 3,044 3,201 3,201 Commercial mortgage-backed securities 14,978 15,574 15,574 Public utilities 26,170 29,064 29,064 All other corporate bonds 149,767 163,309 163,309 Redeemable preferred stock 499 564 564 Total fixed maturities, available-for-sale $ 346,574 $ 391,096 $ 391,096 Fixed maturities, held-to-maturity: Bonds: Foreign governments $ 891 $ 1,173 $ 891 Residential mortgage-backed securities 310 331 310 All other corporate bonds 732 798 732 Total fixed maturities, held-to-maturity $ 1,933 $ 2,302 $ 1,933 Equity securities: Common stocks: Other common stocks $ 4,065 $ 5,698 $ 5,698 Mutual funds 1,236 1,528 1,528 Nonredeemable preferred stocks 57 56 56 Perpetual preferred stocks 202 240 240 Total equity securities, at fair value $ 5,560 $ 7,522 $ 7,522 Fixed maturities, trading $ 3,917 $ 3,884 $ 3,884 Assets supporting experience-rated contractholder liabilities(2)(3) 21,597 21,597 Commercial mortgage and other loans(4) 63,559 63,559 Policy loans 12,096 12,096 Short-term investments 5,467 5,467 Other invested assets 15,606 15,606 Total investments $ 476,309 $ 522,760 __________ (1) For fixed maturities available-for-sale and held-to-maturity, original cost reduced by repayments and impairments and adjusted for amortization of premiums and accretion of discounts. (2) At fair value. (3) See Note 3 to the Consolidated Financial Statements for the composition of the Company’s “Assets supporting experience-rated contractholder liabilities, at fair value.” (4) At carrying value, which is net of allowance for credit losses. Includes collateralized commercial mortgage and other loans of $62,907 million and uncollateralized loans of $652 million . |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | PRUDENTIAL FINANCIAL, INC. Schedule II Condensed Financial Information of Registrant Condensed Statements of Financial Positions as of December 31, 2019 and 2018 (in millions) 2019 2018 ASSETS Investment contracts from subsidiaries $ 1 $ 1 Fixed maturities, available for sale, at fair value (amortized cost: 2019- $1,643; 2018- $1,354) 1,697 1,387 Equity securities, at fair value (cost: 2019- $25; 2018- $25) 25 25 Other invested assets 2,326 3,537 Total investments 4,049 4,950 Cash and cash equivalents 1,162 1,327 Due from subsidiaries 1,670 1,601 Loans receivable from subsidiaries 7,151 7,044 Investment in subsidiaries 76,101 57,934 Property, plant and equipment 471 502 Income taxes receivable 540 413 Other assets 101 98 TOTAL ASSETS $ 91,245 $ 73,869 LIABILITIES AND EQUITY LIABILITIES Due to subsidiaries $ 2,560 $ 2,117 Loans payable to subsidiaries 6,110 5,260 Short-term debt 1,204 1,115 Long-term debt 17,430 16,141 Other liabilities 826 619 Total liabilities 28,130 25,252 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; 666,305,189 and 660,111,339 shares issued as of December 31, 2019 and 2018, respectively) 6 6 Additional paid-in capital 25,532 24,828 Common Stock held in treasury, at cost (267,472,781 and 249,398,887 shares as of December 31, 2019 and 2018, respectively) (19,453 ) (17,593 ) Accumulated other comprehensive income (loss) 24,039 10,906 Retained earnings 32,991 30,470 Total equity 63,115 48,617 TOTAL LIABILITIES AND EQUITY $ 91,245 $ 73,869 See Notes to Condensed Financial Information of Registrant PRUDENTIAL FINANCIAL, INC. Schedule II Condensed Financial Information of Registrant Condensed Statements of Operations for the Years Ended December 31, 2019 , 2018 and 2017 (in millions) 2019 2018 2017 REVENUES Net investment income $ 203 $ 168 $ 92 Realized investment gains (losses), net (250 ) 106 (73 ) Affiliated interest revenue 362 374 379 Other income (loss) 21 (7 ) (79 ) Total revenues 336 641 319 EXPENSES General and administrative expenses 92 126 126 Interest expense 1,161 1,087 1,057 Total expenses 1,253 1,213 1,183 INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF SUBSIDIARIES (917 ) (572 ) (864 ) Total income tax expense (benefit) (223 ) (130 ) (397 ) INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES (694 ) (442 ) (467 ) Equity in earnings of subsidiaries 4,880 4,516 8,330 NET INCOME (LOSS) $ 4,186 $ 4,074 $ 7,863 Other Comprehensive Income (loss) 13,126 (6,974 ) 2,453 TOTAL COMPREHENSIVE INCOME (LOSS) $ 17,312 $ (2,900 ) $ 10,316 See Notes to Condensed Financial Information of Registrant PRUDENTIAL FINANCIAL, INC. Schedule II Condensed Financial Information of Registrant Condensed Statements of Cash Flows for the Years Ended December 31, 2019 , 2018 and 2017 (in millions) 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 4,186 $ 4,074 $ 7,863 Adjustments to reconcile net income to cash provided by operating activities: Equity in earnings of subsidiaries (4,880 ) (4,516 ) (8,330 ) Realized investment (gains) losses, net 250 (106 ) 73 Dividends received from subsidiaries 2,269 2,975 1,975 Property, plant and equipment 0 (4 ) (1 ) Change in: Due to/from subsidiaries, net 669 (1 ) 213 Other, operating(1) (229 ) 115 (149 ) Cash flows from (used in) operating activities(1) 2,265 2,537 1,644 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from the sale/maturity of: Fixed maturities, available-for-sale 371 234 740 Short-term investments 21,700 18,708 15,973 Payments for the purchase of: Equity securities, at fair value 0 (25 ) 0 Fixed maturities, available for sale (660 ) (370 ) (865 ) Short-term investments (20,486 ) (19,914 ) (15,087 ) Capital contributions to subsidiaries (593 ) (874 ) (1,135 ) Returns of capital contributions from subsidiaries 1,013 1,083 1,150 Acquisition of Assurance IQ (1,758 ) 0 0 Loans to subsidiaries, net of maturities (108 ) 803 (1,127 ) Other, investing 0 0 61 Cash flows from (used in) investing activities (521 ) (355 ) (290 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid on Common Stock (1,641 ) (1,521 ) (1,296 ) Common Stock acquired (2,500 ) (1,500 ) (1,250 ) Common Stock reissued for exercise of stock options 133 132 246 Proceeds from the issuance of debt (maturities longer than 90 days) 2,465 2,531 742 Repayments of debt (maturities longer than 90 days) (1,114 ) (1,443 ) (480 ) Repayments of loans from subsidiaries (7 ) (728 ) (310 ) Proceeds from loans payable to subsidiaries 818 99 1,627 Net change in financing arrangements (maturities of 90 days or less) 9 (36 ) (16 ) Other, financing(1) (72 ) (66 ) (68 ) Cash flows from (used in) financing activities(1) (1,909 ) (2,532 ) (805 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (165 ) (350 ) 549 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,327 1,677 1,128 CASH AND CASH EQUIVALENTS, END OF YEAR $ 1,162 $ 1,327 $ 1,677 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid during the period for interest $ 1,084 $ 1,014 $ 1,019 Cash paid (refunds received) during the period for taxes $ (103 ) $ (231 ) $ (213 ) NON-CASH TRANSACTIONS DURING THE YEAR Non-cash capital contributions to subsidiaries $ (596 ) $ (22 ) $ (17 ) Non-cash dividends/returns of capital from subsidiaries $ 1 $ 101 $ 0 Treasury Stock shares issued for stock-based compensation programs $ 197 $ 138 $ 104 Acquisitions: Assets Acquired $ 2,428 Liabilities assumed 216 Treasury Stock shares issued 454 Net cash paid on acquisition $ 1,758 __________ (1) Prior period amounts are presented on a basis consistent with current period presentation, reflecting the adoption of ASU 2016-09. See Note 2 to the Consolidated Financial Statements for additional information. See Notes to Condensed Financial Information of Registrant PRUDENTIAL FINANCIAL, INC. Schedule II Condensed Financial Information of Registrant Notes to Condensed Financial Information of Registrant 1. ORGANIZATION AND PRESENTATION Prudential Financial, Inc. (“Prudential Financial”) was incorporated on December 28, 1999, as a wholly-owned subsidiary of The Prudential Insurance Company of America (“PICA”). On December 18, 2001, PICA converted from a mutual life insurance company to a stock life insurance company and became an indirect, wholly-owned subsidiary of Prudential Financial. The condensed financial information of Prudential Financial, Inc. (the “Parent Company”) should be read in conjunction with the consolidated financial statements of Prudential Financial, Inc. and its subsidiaries and the notes thereto (the “Consolidated Financial Statements”). The condensed financial statements of Prudential Financial reflect its direct wholly-owned subsidiaries using the equity method of accounting. In October 2019, the Company completed the acquisition of Assurance IQ, Inc. (“Assurance IQ”), a leading consumer solutions platform that offers a range of solutions that help meet consumers’ financial needs, for approximately $1,758 million in cash, net of transaction expenses, and restricted Prudential Financial Common Stock and equity awards with a market value of approximately $454 million as of the closing date. Assurance IQ is reported as a wholly owned subsidiary of Prudential. 2. OTHER INVESTMENTS Prudential Financial’s other investments as of December 31, 2019 and 2018 consisted primarily of highly liquid debt investments and intercompany enterprise liquidity account funds. 3. DEBT A summary of Prudential Financial’s short- and long-term debt is as follows: December 31, Maturity Dates Rate(1) 2019 2018 ($ in millions) Short-term debt: Commercial paper(2) $ 25 $ 15 Current portion of long-term debt 1,179 1,100 Total short-term debt $ 1,204 $ 1,115 Long-term debt: Fixed rate senior notes 2021-2051 1.35%-6.63% $ 9,912 $ 8,601 Floating rate senior notes 0 29 Junior subordinated notes 2042-2058 4.50%-5.88% 7,518 7,511 Total long-term debt $ 17,430 $ 16,141 __________ (1) Ranges of interest rates are for the year ended December 31, 2019 . (2) The weighted average interest rate on outstanding commercial paper was 1.71% and 2.45% at December 31, 2019 and 2018 , respectively. Long-term Debt In order to manage exposure to interest rate movements, Prudential Financial utilizes derivative instruments, primarily interest rate swaps, in conjunction with some of its debt issues. The impact of these derivative instruments is not reflected in the rates presented in the table above. For those derivatives that qualify for hedge accounting treatment, interest expense was $0 million , $0 million , and $1 million for each of the years ended December 31, 2019 , 2018 and 2017, respectively. Schedule of Long-term Debt Maturities The following table presents Prudential Financial’s contractual maturities for long-term debt as of December 31, 2019 : Calendar Year 2021 2022 2023 2024 2025 and thereafter Total (in millions) Long-term debt $ 400 $ 0 $ 0 $ 700 $ 16,330 $ 17,430 4. DIVIDENDS AND RETURNS OF CAPITAL For the years ended December 31, Prudential Financial received cash dividends and/or returns of capital from the following subsidiaries: 2019 2018 2017 (in millions) Prudential Annuities Holding Company $ 163 $ 175 $ 145 International Insurance and Investments Holding Companies 1,065 2,270 546 The Prudential Insurance Company of America 600 0 1,000 PGIM Holding Company 462 578 467 Prudential Annuities Life Assurance Corporation 978 1,025 950 Other Holding Companies 14 10 16 Total $ 3,282 $ 4,058 $ 3,124 5. COMMITMENTS AND GUARANTEES Prudential Financial has issued a subordinated guarantee covering a subsidiary’s domestic commercial paper program. As of December 31, 2019 , there was $524 million outstanding under this commercial paper program. Prudential Financial has provided guarantees of the payment of principal and interest on intercompany loans between affiliates. As of December 31, 2019 , Prudential Financial had issued guarantees of outstanding loans totaling $3.8 billion between international insurance subsidiaries and other affiliates. In 2013, Prudential Financial entered into a $500 million indemnity and guarantee agreement with Wells Fargo Bank Northwest, N.A. Under this agreement, Prudential Financial guaranteed obligations with respect to an affiliated loan from PICA to an affiliate. The loan proceeds were utilized to construct Prudential’s new home office in Newark, New Jersey. Prudential Financial is also subject to other financial guarantees, net worth maintenance agreements and indemnity arrangements, including those made in the normal course of businesses guaranteeing the performance of, or representations made by, Prudential Financial subsidiaries. Prudential Financial has provided indemnities and guarantees related to acquisitions and dispositions, investments, debt issuances and other transactions, including those provided as part of its ongoing operations that are triggered by, among other things, breaches of representations, warranties or covenants provided by Prudential Financial or its subsidiaries. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, it is not possible to determine the maximum potential amount due under these guarantees. At December 31, 2019 , Prudential Financial has no accrued liabilities associated with other financial guarantees and indemnity arrangements. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | PRUDENTIAL FINANCIAL, INC. Schedule III Supplementary Insurance Information As of and for the Year Ended December 31, 2019 (in millions) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums, Policy Charges and Fee Income Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of DAC Other Operating Expenses PGIM $ 0 $ 0 $ 0 $ 0 $ 0 $ 200 $ 0 $ 6 $ 2,520 U.S Businesses: U.S. Workplace Solutions division: Retirement 144 67,783 0 49,047 9,490 4,721 13,251 29 1,160 Group Insurance 156 4,865 242 8,587 5,024 623 4,544 7 915 Total U.S. Workplace Solutions division 300 72,648 242 57,634 14,514 5,344 17,795 36 2,075 U.S. Individual Solutions division: Individual Annuities 4,973 15,151 0 9,529 2,748 854 680 321 1,869 Individual Life 5,836 17,417 0 28,146 3,083 2,268 3,678 699 2,080 Total U.S. Individual Solutions division 10,809 32,568 0 37,675 5,831 3,122 4,358 1,020 3,949 Assurance IQ division: Assurance IQ 0 0 0 0 0 0 0 0 151 Total Assurance IQ division 0 0 0 0 0 0 0 0 151 Total U.S. Businesses 11,109 105,216 242 95,309 20,345 8,466 22,153 1,056 6,175 International Businesses 8,949 131,901 86 51,941 17,228 5,530 15,784 1,272 3,096 Corporate and Other (381 ) 8,468 0 9 400 1,066 814 (31 ) 1,272 Total PFI excluding Closed Block division 19,677 245,585 328 147,259 37,973 15,262 38,751 2,303 13,063 Closed Block division 235 47,614 0 11,839 2,207 2,323 5,223 29 353 Total $ 19,912 $ 293,199 $ 328 $ 159,098 $ 40,180 $ 17,585 $ 43,974 $ 2,332 $ 13,416 PRUDENTIAL FINANCIAL, INC. Schedule III Supplementary Insurance Information As of and for the Year Ended December 31, 2018 (in millions) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums, Policy Charges and Fee Income Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of DAC Other Operating Expenses PGIM $ 0 $ 0 $ 0 $ 0 $ 0 $ 73 $ 0 $ 8 $ 2,298 U.S Businesses: U.S. Workplace Solutions division: Retirement 153 64,750 0 47,766 11,582 4,394 14,209 39 1,100 Group Insurance 158 4,691 236 9,089 4,994 604 4,523 5 927 Total U.S. Workplace Solutions division 311 69,441 236 56,855 16,576 4,998 18,732 44 2,027 U.S. Individual Solutions division: Individual Annuities 4,984 11,057 0 8,886 2,792 683 734 658 1,824 Individual Life 6,103 14,320 0 27,792 2,985 2,040 3,229 353 1,907 Total U.S. Individual Solutions division 11,087 25,377 0 36,678 5,777 2,723 3,963 1,011 3,731 Total U.S. Businesses 11,398 94,818 236 93,533 22,353 7,721 22,695 1,055 5,758 International Businesses 8,715 122,810 84 51,003 16,700 5,219 14,704 1,220 2,760 Corporate and Other (319 ) 7,616 0 889 427 875 2,197 (45 ) 769 Total PFI excluding Closed Block division 19,794 225,244 320 145,425 39,480 13,888 39,596 2,238 11,585 Closed Block division 264 48,282 0 9,023 2,301 2,288 4,340 35 364 Total $ 20,058 $ 273,526 $ 320 $ 154,448 $ 41,781 $ 16,176 $ 43,936 $ 2,273 $ 11,949 PRUDENTIAL FINANCIAL, INC. Schedule III Supplementary Insurance Information As of and for the Year Ended December 31, 2017 (in millions) Segment Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premiums, Policy Charges and Fee Income Net Investment Income Benefits, Claims, Losses and Settlement Expenses Amortization of DAC Other Operating Expenses PGIM $ 0 $ 0 $ 0 $ 0 $ 0 $ 170 $ 0 $ 11 $ 2,239 U.S. Businesses: U.S. Workplace Solutions division: Retirement 146 59,330 0 49,269 8,517 4,536 11,576 16 1,031 Group Insurance 162 4,688 228 8,983 4,748 630 4,347 14 857 Total U.S. Workplace Solutions division 308 64,018 228 58,252 13,265 5,166 15,923 30 1,888 U.S. Individual Solutions division: Individual Annuities 5,130 10,797 0 8,551 2,805 727 368 0 1,791 Individual Life 5,405 13,649 0 25,884 2,277 1,933 2,774 382 1,888 Total U.S. Individual Solutions division 10,535 24,446 0 34,435 5,082 2,660 3,142 382 3,679 Total U.S. Businesses 10,843 88,464 228 92,687 18,347 7,826 19,065 412 5,567 International Businesses 8,214 114,437 78 50,483 16,190 5,005 14,604 1,138 2,838 Corporate and Other (364 ) 5,240 0 9 331 781 679 (18 ) 886 Total PFI excluding Closed Block division 18,693 208,141 306 143,179 34,868 13,782 34,348 1,543 11,530 Closed Block division 299 48,870 0 11,421 2,526 2,653 5,359 37 385 Total $ 18,992 $ 257,011 $ 306 $ 154,600 $ 37,394 $ 16,435 $ 39,707 $ 1,580 $ 11,915 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance | PRUDENTIAL FINANCIAL, INC. Schedule IV Reinsurance As of and For the Years Ended December 31, 2019 , 2018 and 2017 ($ in millions) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentage of Amount Assumed to Net 2019 Life Insurance Face Amount In Force $ 4,123,019 $ 862,460 $ 188,576 $ 3,449,135 5.5 % Premiums: Life Insurance $ 30,333 $ 1,990 $ 3,022 $ 31,365 9.6 % Accident and Health Insurance 2,927 90 0 2,837 0.0 Total Premiums $ 33,260 $ 2,080 $ 3,022 $ 34,202 8.8 % 2018 Life Insurance Face Amount In Force(1) $ 3,985,589 $ 791,354 $ 197,343 $ 3,391,578 5.8 % Premiums: Life Insurance $ 32,248 $ 1,792 $ 2,574 $ 33,030 7.8 % Accident and Health Insurance 2,800 51 0 2,749 0.0 Total Premiums $ 35,048 $ 1,843 $ 2,574 $ 35,779 7.2 % 2017 Life Insurance Face Amount In Force $ 3,733,997 $ 767,499 $ 207,083 $ 3,173,581 6.5 % Premiums: Life Insurance $ 29,035 $ 1,761 $ 2,105 $ 29,379 7.2 % Accident and Health Insurance 2,762 50 0 2,712 0.0 Total Premiums $ 31,797 $ 1,811 $ 2,105 $ 32,091 6.6 % __________ (1) Amounts for 2018 have been revised to correct previously reported amounts. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Consolidated Financial Statements include the accounts of Prudential Financial, entities over which the Company exercises control, including majority-owned subsidiaries and minority-owned entities such as limited partnerships in which the Company is the general partner and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. See Note 4 for more information on the Company’s consolidated variable interest entities. Intercompany balances and transactions have been eliminated. |
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; fair value of embedded derivative instruments associated with the index-linked features of certain universal life and fixed annuity products; value of business acquired (“VOBA”) and its amortization; amortization of deferred sales inducements (“DSI”); measurement of goodwill and any related impairment; valuation of investments including derivatives and the recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; pension and other postretirement benefits; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Investments and Investment-Related Liabilities | Fixed maturities, available-for-sale, at fair value and Fixed maturities, held-to-maturity, at amortized cost are comprised of bonds, notes and redeemable preferred stock. Fixed maturities classified as “available-for-sale” are carried at fair value. See Note 6 for additional information regarding the determination of fair value. The associated unrealized gains and losses, net of tax, and the effect on DAC, VOBA, DSI, future policy benefits, policyholders’ account balances and policyholders’ dividends that would result from the realization of unrealized gains and losses, are included in “Accumulated other comprehensive income (loss)” (“AOCI”). Fixed maturities that the Company has both the positive intent and ability to hold to maturity are carried at amortized cost and classified as “held-to-maturity.” The purchased cost of fixed maturities is adjusted for amortization of premiums and accretion of discounts to maturity or, if applicable, call date. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. Additionally, prepayment premiums are also included in “Net investment income.” For mortgage-backed and asset-backed securities, the effective yield is based on estimated cash flows, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also vary based on other assumptions regarding the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of OTTI recognized in earnings and other comprehensive income (loss) (“OCI”). For high credit quality mortgage-backed and asset-backed securities (those rated AA or above), cash flows are provided quarterly, and the amortized cost and effective yield of the securities are adjusted as necessary to reflect historical prepayment experience and changes in estimated future prepayments. The adjustments to amortized cost are recorded as a charge or credit to “Net investment income” in accordance with the retrospective method. For mortgage-backed and asset-backed securities rated below AA, or those for which an OTTI has been recorded, the effective yield is adjusted prospectively for any changes in estimated cash flows. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Fixed maturities, trading, at fair value consists of fixed maturities with embedded features and assets contained within consolidated variable interest entities. Realized and unrealized gains and losses on these investments are reported in “Other income (loss),” and interest and dividend income from these investments is reported in “Net investment income.” Assets supporting experience-rated contractholder liabilities, at fair value includes invested assets that consist of fixed maturities, equity securities, short-term investments and cash equivalents, that support certain products included in the Retirement and International Businesses segments which are experience-rated, meaning that the investment results associated with these products are expected to ultimately accrue to contractholders. Realized and unrealized gains and losses for these investments are reported in “Other income (loss).” Interest and dividend income from these investments is reported in “Net investment income.” Equity securities, at fair value is comprised of common stock, mutual fund shares and non-redeemable preferred stock, which are carried at fair value. Realized and unrealized gains and losses on these investments are reported in “Other income (loss),” and dividend income is reported in “Net investment income” on the ex-dividend date. Effective January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities using a modified retrospective method. Adoption of this ASU impacted the Company’s accounting and presentation related to equity investments. The most significant impact is that the changes in fair value of equity securities previously classified as “available-for-sale” are reported in net income within “Other income (loss)” in the Consolidated Statements of Operations. Prior to this, the changes in fair value on equity securities classified as “available-for-sale” were reported in AOCI. The impact of this standard resulted in an increase to retained earnings of $904 million, a reduction to AOCI of $847 million, and an increase to equity of $57 million upon adoption on January 1, 2018. Commercial mortgage and other loans consists of commercial mortgage loans, agricultural property loans, loans backed by residential properties, as well as certain other collateralized and uncollateralized loans. Loans backed by residential properties primarily include recourse loans held by the Company’s international insurance operations. Uncollateralized loans primarily represent reverse dual currency loans and corporate loans held by the Company’s international insurance operations. Commercial mortgage and other loans originated and held for investment are generally carried at unpaid principal balance, net of unamortized deferred loan origination fees and expenses, and net of an allowance for losses. The Company carries certain commercial mortgage loans originated within the Company’s commercial mortgage operations at fair value where the fair value option has been elected. Loans held for sale where the Company has not elected the fair value option are carried at the lower of cost or fair value. Commercial mortgage and other loans acquired, including those related to the acquisition of a business, are recorded at fair value when purchased, reflecting any premiums or discounts to unpaid principal balances. Interest income, and the amortization of the related premiums or discounts, are included in “Net investment income” under the effective yield method. Prepayment fees are also included in “Net investment income.” Impaired loans include those loans for which it is probable that amounts due will not all be collected according to the contractual terms of the loan agreement. The Company defines “past due” as principal or interest not collected at least 30 days past the scheduled contractual due date. Interest received on loans that are past due, including impaired and non-impaired loans as well as loans that were previously modified in a troubled debt restructuring, is either applied against the principal or reported as net investment income based on the Company’s assessment as to the collectability of the principal. See Note 3 for additional information about the Company’s past due loans. The Company discontinues accruing interest on loans after the loans become 90 days delinquent as to principal or interest payments, or earlier when the Company has doubts about collectability. When the Company discontinues accruing interest on a loan, any accrued but uncollectible interest on the loan and other loans backed by the same collateral, if any, is charged to interest income in the same period. Generally, a loan is restored to accrual status only after all delinquent interest and principal are brought current and, in the case of loans where the payment of interest has been interrupted for a substantial period, or the loan has been modified, a regular payment performance has been established. The Company reviews the performance and credit quality of the commercial mortgage and other loan portfolio on an on-going basis. Loans are placed on watch list status based on a predefined set of criteria and are assigned one of two categories. Loans are classified as “closely monitored” when it is determined that there is a collateral deficiency or other credit events that may lead to a potential loss of principal or interest. Loans “not in good standing” are those loans where the Company has concluded that there is a high probability of loss of principal, such as when the loan is delinquent or in the process of foreclosure. As described below, in determining the allowance for losses, the Company evaluates each loan on the watch list to determine if it is probable that amounts due will not be collected according to the contractual terms of the loan agreement. Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans. The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. The debt service coverage ratio compares a property’s net operating income to its debt service payments. Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt service coverage ratio greater than 1.0 times indicates an excess of net operating income over the debt service payments. The values utilized in calculating these ratios are developed as part of the Company’s periodic review of the commercial mortgage loan and agricultural property loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a quality re-rating process, whereby the internal quality rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary quality rating system. The loan-to-value ratio is the most significant of several inputs used to establish the internal credit rating of a loan which in turn drives the allowance for losses. Other key factors considered in determining the internal credit rating include debt service coverage ratios, amortization, loan term, and estimated market value growth rate and volatility for the property type and region. See Note 3 for additional information related to the loan-to-value ratios and debt service coverage ratios related to the Company’s commercial mortgage and agricultural loan portfolios. Loans backed by residential properties and uncollateralized loans are also reviewed periodically. Each loan is assigned an internal or external credit rating. Internal credit ratings take into consideration various factors including financial ratios and qualitative assessments based on non-financial information. In cases where there are personal or third-party guarantors, the credit quality of the guarantor is also reviewed. These factors are used in developing the allowance for losses. Based on the diversity of the loans in these categories and their immateriality, the Company has not disclosed the credit quality indicators related to these loans in Note 3. For those loans not reported at fair value, the allowance for losses includes a loan specific reserve for each impaired loan that has a specifically identified loss and a portfolio reserve for probable incurred but not specifically identified losses. For impaired commercial mortgage and other loans, the allowances for losses are determined based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or based upon the fair value of the collateral if the loan is collateral dependent. The portfolio reserves for probable incurred but not specifically identified losses in the commercial mortgage and agricultural loan portfolios consider the current credit composition of the portfolio based on an internal quality rating, as described above. The portfolio reserves are determined using past loan experience, including historical credit migration, loss probability and loss severity factors by property type. These factors are reviewed and updated as appropriate. The allowance for losses on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. “Realized investment gains (losses), net” includes changes in the allowance for losses and changes in value for loans accounted for under the fair value option. “Realized investment gains (losses), net” also includes gains and losses on sales, certain restructurings, and foreclosures. When a commercial mortgage or other loan is deemed to be uncollectible, any specific valuation allowance associated with the loan is reversed and a direct write-down of the carrying amount of the loan is made. The carrying amount of the loan is not adjusted for subsequent recoveries in value. Commercial mortgage and other loans are occasionally restructured in a troubled debt restructuring. These restructurings generally include one or more of the following: full or partial payoffs outside of the original contract terms; changes to interest rates; extensions of maturity; or additions or modifications to covenants. Additionally, the Company may accept assets in full or partial satisfaction of the debt as part of a troubled debt restructuring. When restructurings occur, they are evaluated individually to determine whether the restructuring or modification constitutes a “troubled debt restructuring” as defined by authoritative accounting guidance. If the borrower is experiencing financial difficulty and the Company has granted a concession, the restructuring, including those that involve a partial payoff or the receipt of assets in full satisfaction of the debt is deemed to be a troubled debt restructuring. Based on the Company’s credit review process described above, these loans generally would have been deemed impaired prior to the troubled debt restructuring, and specific allowances for losses would have been established prior to the determination that a troubled debt restructuring has occurred. In a troubled debt restructuring where the Company receives assets in full satisfaction of the debt, any specific valuation allowance is reversed and a direct write-down of the loan is recorded for the amount of the allowance, and any additional loss, net of recoveries, or any gain is recorded for the difference between the fair value of the assets received and the recorded investment in the loan. When assets are received in partial settlement, the same process is followed, and the remaining loan is evaluated prospectively for impairment based on the credit review process noted above. When a loan is restructured in a troubled debt restructuring, the impairment of the loan is remeasured using the modified terms and the loan’s original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans in accordance with the income recognition policy noted above. Additionally, the loan continues to be subject to the credit review process noted above. In situations where a loan has been restructured in a troubled debt restructuring and the loan has subsequently defaulted, this factor is considered when evaluating the loan for a specific allowance for losses in accordance with the credit review process noted above. See Note 3 for additional information about commercial mortgage and other loans that have been restructured in a troubled debt restructuring. Policy loans represent funds loaned to policyholders up to the cash surrender value of the associated insurance policies and are carried at the unpaid principal balances due to the Company from the policyholders. Interest income on policy loans is recognized in “Net investment income” at the contract interest rate when earned. Policy loans are fully collateralized by the cash surrender value of the associated insurance policies. Other invested assets consists of the Company’s non-coupon investments in limited partnerships and limited liability companies (“LPs/LLCs”), other than operating joint ventures, as well as wholly-owned investment real estate, derivative assets and other investments. LPs/LLCs interests are accounted for using either the equity method of accounting, or at fair value with changes in fair value reported in “Other income (loss).” The Company’s income from investments in LPs/LLCs accounted for using the equity method, other than the Company’s investments in operating joint ventures, is included in “Net investment income.” The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. In applying the equity method (including assessment for OTTI), the Company uses financial information provided by the investee, generally on a one to three-month lag. The Company consolidates LPs/LLCs in certain other instances where it is deemed to exercise control, or is considered the primary beneficiary of a variable interest entity. See Note 4 for additional information about VIEs. The Company’s wholly-owned investment real estate consists of real estate which the Company has the intent to hold for the production of income as well as real estate held for sale. Real estate which the Company has the intent to hold for the production of income is carried at depreciated cost less any write-downs to fair value for impairment losses and is reviewed for impairment whenever events or circumstances indicate that the carrying value may not be recoverable. Real estate held for sale is carried at the lower of depreciated cost or fair value less estimated selling costs and is not further depreciated once classified as such. An impairment loss is recognized when the carrying value of the investment real estate exceeds the estimated undiscounted future cash flows (excluding interest charges) from the investment. At that time, the carrying value of the investment real estate is written down to fair value. Decreases in the carrying value of investment real estate held for the production of income due to OTTI are recorded in “Realized investment gains (losses), net.” Depreciation on real estate held for the production of income is computed using the straight-line method over the estimated useful lives of the properties and is included in “Net investment income.” Short-term investments primarily consist of highly liquid debt instruments with a maturity of twelve months or less and greater than three months when purchased, other than those debt instruments meeting this definition that are included in “Assets supporting experience-rated contractholder liabilities, at fair value.” These investments are generally carried at fair value or amortized cost that approximates fair value and include certain money market investments, funds managed similar to regulated money market funds, short-term debt securities issued by government-sponsored entities and other highly liquid debt instruments. Realized investment gains (losses) are computed using the specific identification method with the exception of some of the Company’s International Businesses portfolios, where the average cost method is used. Realized investment gains and losses are generated from numerous sources, including the sales of fixed maturity securities, investments in joint ventures and limited partnerships and other types of investments, as well as adjustments to the cost basis of investments for net OTTI recognized in earnings. Realized investment gains and losses also reflect changes in the allowance for losses on commercial mortgage and other loans, fair value changes on commercial mortgage loans carried at fair value, and fair value changes on embedded derivatives and free-standing derivatives that do not qualify for hedge accounting treatment. See “Derivative Financial Instruments” below for additional information regarding the accounting for derivatives. The Company’s available-for-sale and held-to-maturity securities with unrealized losses are reviewed quarterly to identify OTTI in value. In evaluating whether a decline in value is other-than-temporary, the Company considers several factors including, but not limited to the following: (1) the extent and the duration of the decline; (2) the reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening); and (3) the financial condition of and near-term prospects of the issuer. An OTTI is recognized in earnings for a debt security in an unrealized loss position when either (1) the Company has the intent to sell the debt security or (2) it is more likely than not the Company will be required to sell the debt security before its anticipated recovery. For all debt securities in unrealized loss positions that do not meet either of these two criteria, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows with the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The Company may use the estimated fair value of collateral as a proxy for the net present value if it believes that the security is dependent on the liquidation of collateral for recovery of its investment. If the net present value is less than the amortized cost of the investment, an OTTI is recognized. In addition to the above-mentioned circumstances, the Company also recognizes an OTTI in earnings when a non-functional currency denominated security in an unrealized loss position due to currency exchange rates is not expected to recover in value before maturity. When an OTTI of a debt security has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the debt security meets either of these two criteria or the unrealized losses due to changes in foreign currency exchange rates are not expected to be recovered before maturity, the OTTI recognized in earnings is equal to the entire difference between the security’s amortized cost basis and its fair value at the impairment measurement date. For OTTI of debt securities that do not meet these criteria, the net amount recognized in earnings is equal to the difference between the amortized cost of the debt security and its net present value calculated as described above. Any difference between the fair value and the net present value of the debt security at the impairment measurement date is recorded in “Other comprehensive income (loss).” Unrealized gains or losses on securities for which an OTTI has been recognized in earnings is tracked as a separate component of AOCI. The split between the amount of an OTTI recognized in “Other comprehensive income (loss)” and the net amount recognized in earnings for debt securities is driven principally by assumptions regarding the amount and timing of projected cash flows. For mortgage-backed and asset-backed securities, cash flow estimates consider the payment terms of the underlying assets backing a particular security, including interest rate and prepayment assumptions based on data from widely accepted third-party data sources or internal estimates. In addition to interest rate and prepayment assumptions, cash flow estimates also include other assumptions regarding the underlying collateral including default rates and recoveries, which vary based on the asset type and geographic location, as well as the vintage year of the security. For structured securities, the payment priority within the tranche structure is also considered. For all other debt securities, cash flow estimates are driven by assumptions regarding probability of default and estimates regarding timing and amount of recoveries associated with a default. The Company has developed these estimates using information based on its historical experience as well as using market observable data, such as industry analyst reports and forecasts, sector credit ratings and other data relevant to the collectability of a security, such as the general payment terms of the security and the security’s position within the capital structure of the issuer. The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value. In periods subsequent to the recognition of an OTTI, the impaired security is accounted for as if it had been purchased on the measurement date of the impairment. For debt securities, the discount (or reduced premium) based on the new cost basis may be accreted into net investment income in future periods, including increases in cash flows on a prospective basis. In certain cases where there are decreased cash flow expectations, the security is reviewed for further cash flow impairments. Unrealized investment gains and losses are also considered in determining certain other balances, including DAC, VOBA, DSI, certain future policy benefits, policyholders’ account balances, policyholders’ dividends and deferred tax assets or liabilities. These balances are adjusted, as applicable, for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. Each of these balances is discussed in greater detail below. Notes issued by consolidated variable interest entities represent notes issued by certain asset-backed investment vehicles, primarily collateralized loan obligations (“CLOs”), which the Company is required to consolidate. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. The Company has elected the fair value option for the majority of these notes, and has based the fair value on the corresponding bank loan collateral. Changes in fair value are reported in “Other income (loss).” Accrued investment income primarily includes accruals of interest and dividend income from investments that have been earned but not yet received. |
Cash and Cash Equivalents | Cash and cash equivalents include cash on hand, amounts due from banks, certain money market investments, funds managed similar to regulated money market funds, other debt instruments with maturities of three months or less when purchased, other than cash equivalents that are included in “Assets supporting experience-rated contractholder liabilities, at fair value,” and receivables related to securities purchased under agreements to resell (see also “ Securities sold under agreements to repurchase ” below). These assets are generally carried at fair value or amortized cost which approximates fair value. |
DAC | Deferred policy acquisition costs are costs directly related to the successful acquisition of new and renewal insurance and annuity business that have been deferred to the extent such costs are deemed recoverable from future profits. Such DAC primarily includes commissions, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully negotiated contracts. In each reporting period, capitalized DAC is amortized to “Amortization of DAC,” net of the accrual of imputed interest on DAC balances. DAC is subject to periodic recoverability testing. DAC, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. For traditional participating life insurance which are included in the Closed Block, DAC is amortized over the expected life of the contracts in proportion to gross margins based on historical and anticipated future experience, which is evaluated regularly. The effect of changes in estimated gross margins on unamortized DAC is reflected in the period such estimated gross margins are revised on a retrospective basis. DAC related to non-participating traditional individual life insurance and longevity reinsurance contracts is amortized in proportion to gross premiums. DAC related to universal and variable life products and fixed and variable deferred annuity products are generally deferred and amortized over the expected life of the contracts in proportion to gross profits arising principally from investment margins, mortality and expense margins, and surrender charges, based on historical and anticipated future experience, which is updated periodically. The Company uses a reversion to the mean approach for equities to derive future equity return assumptions. However, if the projected equity return calculated using this approach is greater than the maximum equity return assumption, the maximum equity return is utilized. Gross profits also include impacts from the embedded derivatives associated with certain of the optional living benefit features of variable annuity contracts, and index-linked crediting features of indexed universal life and fixed indexed annuity contracts and related hedging activities. Total gross profits include both actual gross profits and estimates of gross profits for future periods. The Company regularly evaluates and adjusts DAC balances with a corresponding charge or credit to current period earnings, representing a cumulative adjustment to all prior periods’ amortization, for the impact of actual gross profits and changes in the Company’s projections of estimated future gross profits. Adjustments to DAC balances include: (i) annual review of assumptions that reflect the comprehensive review of the assumptions used in estimating gross profits for future periods, (ii) quarterly adjustments for current period experience (also referred to as “experience true-up” adjustments) that reflect the impact of differences between actual gross profits for a given period and the previously estimated expected gross profits for that period, and (iii) quarterly adjustments for market performance (also referred to as “experience unlocking”) that reflect the impact of changes to the Company’s estimate of total gross profits to reflect actual fund performance and market conditions. For group annuity contracts (other than single premium group annuities), acquisition costs are generally deferred and amortized over the expected life of the contracts in proportion to gross profits. For group corporate-, bank- and trust-owned life insurance contracts, acquisition costs are generally deferred and amortized in proportion to lives insured. For single premium immediate annuities with life contingencies, single premium group annuities, including non-participating group annuity contracts, and single premium structured settlements with life contingencies, all acquisition costs are charged to expense immediately because generally all premiums are received at the inception of the contract. For funding agreement notes contracts, single premium structured settlement contracts without life contingencies, and single premium immediate annuities without life contingencies, acquisition expenses are deferred and amortized over the expected life of the contracts using the interest method. For other group life and disability insurance contracts and guaranteed investment contracts (“GICs”), acquisition costs are expensed as incurred. For some products, policyholders can elect to modify product benefits, features, rights or coverages by exchanging a contract for a new contract or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. These transactions are known as internal replacements. If policyholders surrender traditional life insurance policies in exchange for life insurance policies that do not have fixed and guaranteed terms, the Company immediately charges to expense the remaining unamortized DAC on the surrendered policies. For other internal replacement transactions, except those that involve the addition of a nonintegrated contract feature that does not change the existing base contract, the unamortized DAC is immediately charged to expense if the terms of the new policies are not substantially similar to those of the former policies. If the new terms are substantially similar to those of the earlier policies, the DAC is retained with respect to the new policies and amortized over the expected life of the new policies. See Note 7 for additional information regarding DAC. |
VOBA | Value of business acquired represents identifiable intangible assets to which a portion of the purchase price in a business acquisition is attributed under the application of purchase accounting. VOBA represents an adjustment to the stated value of in-force insurance contract liabilities to present them at fair value, determined as of the acquisition date. VOBA balances are subject to recoverability testing, in the manner in which they were acquired. The Company has established a VOBA asset primarily for its acquired life insurance products, accident and health products with fixed benefits, deferred annuity contracts, and defined contribution and defined benefit businesses. As of December 31, 2019, the majority of the VOBA balance relates to the 2011 acquisition of AIG Star Life Insurance Co., Ltd, AIG Edison Life Insurance Company, and AIG Financial Assurance Japan K.K. and AIG Edison Service Co., Ltd. (collectively, the “Star and Edison Businesses”.) The Company amortizes VOBA over the anticipated life of the acquired contracts using the same methodology and assumptions used to amortize DAC. The Company records amortization of VOBA in “General and administrative expenses.” VOBA, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 8 for additional information regarding VOBA. |
Other Assets and Other Liabilities | Other assets consist primarily of prepaid pension benefit costs (see Note 18), certain restricted assets, trade receivables, goodwill and other intangible assets, “right-of-use” lease assets (see “ Other liabilities ” below), DSI, the Company’s investments in operating joint ventures, property and equipment, reinsurance recoverables (see “ Reinsurance ” below), and receivables resulting from sales of securities that had not yet settled at the balance sheet date. Property and equipment are carried at cost less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful lives of the related assets, which generally range from 3 to 40 years. As a result of certain acquisitions, the Company recognizes an asset for goodwill representing the excess of cost over the net fair value of the assets acquired and liabilities assumed. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. A reporting unit is an operating segment or a unit one level below the operating segment, if discrete financial information is prepared and regularly reviewed by management at that level. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. The Company tests goodwill for impairment annually as of December 31 and more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Accounting guidance provides for an optional qualitative assessment for testing goodwill impairment that may allow companies to skip the quantitative two-step test. The Company performed the qualitative assessment for Assurance IQ which was acquired in October 2019. All other reporting units elected the quantitative two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value including goodwill. If the fair value of a reporting unit exceeds its carrying value, the applicable goodwill is considered not to be impaired. If the carrying value exceeds fair value, there is an indication of a potential impairment and the second step of the test is performed to measure the amount of impairment. The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill in the “pro forma” business combination accounting as described above exceeds the goodwill assigned to the reporting unit, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded in “General and administrative expenses” for the excess. An impairment loss recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Management is required to make significant estimates in determining the fair value of a reporting unit including, but not limited to: projected earnings, comparative market multiples, and the risk rate at which future net cash flows are discounted. The Company offered various types of sales inducements to policyholders related to fixed and variable deferred annuity contracts. The Company defers sales inducements and amortizes them over the expected life of the policy using the same methodology and assumptions used to amortize DAC. Sales inducement balances are subject to periodic recoverability testing. The Company records amortization of DSI in “Interest credited to policyholders’ account balances.” DSI, for applicable products, is adjusted for the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. See Note 13 for additional information regarding sales inducements. Identifiable intangible assets primarily include customer relationships and mortgage servicing rights and are recorded net of accumulated amortization. The Company tests identifiable intangible assets for impairment on an annual basis as of December 31 of each year or whenever events or circumstances suggest that the carrying value of an identifiable intangible asset may exceed the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If this condition exists and the carrying value of an identifiable intangible asset exceeds its fair value, the excess is recognized as an impairment and is recorded as a charge against net income. Measuring intangible assets requires the use of estimates. Significant estimates include the projected net cash flow attributable to the intangible asset and the risk rate at which future net cash flows are discounted for purposes of estimating fair value, as applicable. See Note 10 for additional information regarding identifiable intangible assets. Investments in operating joint ventures are generally accounted for under the equity method. The carrying value of these investments is written down, or impaired, to fair value when a decline in value is considered to be other-than-temporary. See Note 9 for additional information on investments in operating joint ventures. Other liabilities consist primarily of trade payables, lease liabilities (see “ Other assets ” above), pension and other employee benefit liabilities (see Note 18), derivative liabilities (see “ Derivative Financial Instruments ” below), reinsurance payables (see “ Reinsurance ” below), and payables resulting from purchases of securities that had not yet settled at the balance sheet date. |
Separate Account Assets and Liabilities | Separate account assets represent segregated funds that are invested for certain policyholders, pension funds and other customers. The assets consist primarily of equity securities, fixed maturities, real estate-related investments, real estate mortgage loans, short-term investments and derivative instruments and are reported at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. The investment income and realized investment gains or losses from separate account assets generally accrue to the policyholders and are not included in the Company’s results of operations. Mortality, policy administration and surrender charges assessed against the accounts are included in “Policy charges and fee income.” Asset management fees charged to the accounts are included in “Asset management and service fees.” Seed money that the Company invests in separate accounts is reported in the appropriate general account asset line. Investment income and realized investment gains or losses from seed money invested in separate accounts accrues to the Company and is included in the Company’s results of operations. See Note 13 for additional information regarding separate account arrangements with contractual guarantees. See also “ Separate account liabilities” below. Separate account liabilities primarily represent the contractholder’s account balance in separate account assets and to a lesser extent borrowings of the separate account, and will be equal and offsetting to total separate account assets. See also “ Separate account assets” above. |
Future Policy Benefits | Future policy benefits liability is primarily comprised of the present value of estimated future payments to or on behalf of policyholders, where the timing and amount of payment depends on policyholder mortality or morbidity, less the present value of future net premiums. For individual traditional participating life insurance products, the mortality and interest rate assumptions applied are those used to calculate the policies’ guaranteed cash surrender values. For life insurance, other than individual traditional participating life insurance, and annuity and disability products, expected mortality and morbidity are generally based on Company experience, industry data and/or other factors. Interest rate assumptions are based on factors such as market conditions and expected investment returns. Although mortality, morbidity and interest rate assumptions are “locked-in” upon the issuance of new insurance or annuity business with fixed and guaranteed terms, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by recognizing a premium deficiency. A premium deficiency exists when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. If a premium deficiency is recognized, the assumptions without a provision for the risk of adverse deviation as of the premium deficiency test date are locked-in and used in subsequent valuations. The net reserves continue to be subject to premium deficiency testing. In determining if a premium deficiency related to short-duration contracts exists, the Company considers, among other factors, anticipated investment income. Any adjustments to future policy benefit reserves related to net unrealized gains on securities classified as available-for-sale are included in AOCI. In certain instances, the policyholder liability for a particular line of business may not be deficient in the aggregate to trigger loss recognition, but the pattern of earnings may be such that profits are expected to be recognized in earlier years followed by losses in later years. In these situations, accounting standards require that an additional liability (Profits Followed by Losses or “PFL” liability) be recognized by an amount necessary to sufficiently offset the losses that would be recognized in later years. Historically, PFL liabilities have been predominantly associated with certain universal life contracts that measure GAAP reserves using a dynamic approach, and accordingly, are updated each quarter, using current in-force and market data, and as part of the annual assumption update, such that the liability as of each measurement date represents the Company’s current estimate of the present value of the amount necessary to offset anticipated future losses. See Note 12 for additional information regarding future policy benefits. The Company’s liability for future policy benefits also includes a liability for unpaid claims and claim adjustment expenses. The Company does not establish claim liabilities until a loss has been incurred. However, unpaid claims and claim adjustment expenses include estimates of claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. The Company’s liability for future policy benefits also includes net liabilities for guarantee benefits related to certain long-duration life and annuity contracts, which are discussed more fully in Note 13, and deferred profits. |
Policyholders' Account Balances | Policyholders’ account balances liability represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date. This liability is primarily associated with the accumulated account deposits, plus interest credited, less policyholder withdrawals and other charges assessed against the account balance, as applicable. These policyholders’ account balances also include provision for benefits under non-life contingent payout annuities and certain unearned revenues. See Note 12 for additional information regarding policyholders’ account balances. |
Policyholders' Dividends | Policyholders’ dividends liability includes dividends payable to policyholders and the policyholder dividend obligation associated with the participating policies included in the Closed Block. The dividends payable for participating policies included in the Closed Block are determined at the end of each year for the following year by the Board of Directors of The Prudential Insurance Company of America (“PICA”) based on its statutory results, capital position, ratings, and the emerging experience of the Closed Block. The policyholder dividend obligation represents amounts expected to be paid to Closed Block policyholders as an additional policyholder dividend unless otherwise offset by future Closed Block performance. Any adjustments to the policyholder dividend obligation related to net unrealized gains (losses) on securities classified as available-for-sale are included in AOCI. For additional information on the policyholder dividend obligation, see Note 15. The dividends payable for policies other than the participating policies included in the Closed Block include dividends payable in accordance with certain group and individual insurance policies. |
Securities repurchase and resale agreements and securities loaned transactions | Securities sold under agreements to repurchase represent liabilities associated with securities repurchase agreements which are used primarily to earn spread income. As part of securities repurchase agreements, the Company transfers U.S. government and government agency securities to a third-party, and receives cash as collateral. For securities repurchase agreements, the cash received is typically invested in cash equivalents, short-term investments or fixed maturities. Receivables associated with securities purchased under agreements to resell are generally reflected as cash equivalents (see also “ Cash and cash equivalents ” above). As part of securities resale agreements, the Company invests cash and receives as collateral U.S. government securities or other debt securities. Securities repurchase and resale agreements that satisfy certain criteria are treated as secured borrowing or secured lending arrangements. These agreements are carried at the amounts at which the securities will be subsequently resold or reacquired, as specified in the respective transactions. For securities purchased under agreements to resell, the Company’s policy is to take possession or control of the securities either directly or through a third-party custodian. These securities are valued daily and additional securities or cash collateral is received, or returned, when appropriate to protect against credit exposure. Securities to be resold are the same, or substantially the same, as the securities received. The majority of these transactions are with large brokerage firms and large banks. For securities sold under agreements to repurchase, the market value of the securities to be repurchased is monitored, and additional collateral is obtained where appropriate, to protect against credit exposure. The Company obtains collateral in an amount at least equal to 95% of the fair value of the securities sold. Securities to be repurchased are the same, or substantially the same, as those sold. The majority of these transactions are with highly rated money market funds. Income and expenses related to these transactions executed within the insurance companies used to earn spread income are reported as “Net investment income.” Cash collateral for loaned securities represent liabilities to return cash proceeds from security lending transactions. Securities lending transactions are used primarily to earn spread income. As part of securities lending transactions, the Company transfers U.S. and foreign debt and equity securities, as well as U.S. government and government agency securities, and receives cash as collateral. Cash proceeds from securities lending transactions are primarily used to earn spread income, and are typically invested in cash equivalents, short-term investments or fixed maturities. Securities lending transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company’s securities lending transactions are with large brokerage firms and large banks. Income and expenses associated with securities lending transactions used to earn spread income are reported as “Net investment income.” The Company also enters into securities lending transactions where non-cash collateral, typically Japanese government bonds, is received. The collateral received is not reported on the Company’s Consolidated Statements of Financial Position. In these transactions, the Company receives a fee and obtains collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of these transactions are with large brokerage firms and large banks. Income is reported as “Net investment income.” |
Income Taxes | Income taxes liability primarily represents the net deferred tax liability and the Company’s estimated taxes payable for the current year and open audit years. The Company and its includible domestic subsidiaries file a consolidated federal income tax return that includes both life insurance companies and non-life insurance companies. Certain other domestic subsidiaries file separate tax returns. Subsidiaries operating outside the U.S. are taxed, and income tax expense is recorded, based on applicable foreign statutes. See Note 16 for a discussion of certain non-U.S. jurisdictions for which the Company assumes repatriation of earnings. Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent such as expenses that are not deductible in the Company’s tax return, and some differences are temporary, reversing over time, such as valuation of insurance reserves. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in future years for which the Company has already recorded the tax benefit in the Company’s Consolidated Statements of Operations. Deferred tax liabilities generally represent tax expense recognized in the Company’s financial statements for which payment has been deferred, or expenditures for which the Company has already taken a deduction in the Company’s tax return but have not yet been recognized in the Company’s financial statements. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. The application of U.S. GAAP requires the Company to evaluate the recoverability of the Company’s deferred tax assets and establish a valuation allowance if necessary to reduce the Company’s deferred tax assets to an amount that is more likely than not expected to be realized. Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance. See Note 16 for a discussion of factors considered when evaluating the need for a valuation allowance. The U.S. Tax Cuts and Jobs Act of 2017 (“Tax Act of 2017”) includes two new tax provisions that could impact the Company’s effective tax rate and cash tax payments in future periods. The Base Erosion and Anti-Abuse Tax (“BEAT”) taxes modified taxable income at a rate of 10% in 2019 increasing to 12.5% in 2026 and is due if the calculated BEAT amount that is determined without the benefit of foreign and certain tax credits is greater than the regular corporate tax in any given year. In general, modified taxable income is calculated by adding back to a taxpayer’s regular taxable income the amount of certain “base erosion tax benefits” with respect to payments to foreign affiliates, as well as the “base erosion percentage” of any net operating loss deductions. Final Regulations confirmed that benefit and claim payments made by our U.S. insurance business to our foreign affiliates on reinsurance assumed by the U.S. affiliates are not base erosion payments. The Global Intangible Low-Taxed Income (“GILTI”) provision applies a minimum U.S. tax to earnings of consolidated foreign subsidiaries in excess of a 10% deemed return on tangible assets of foreign subsidiaries by imposing the U.S. tax rate to 50% of earnings of such foreign affiliates and provides for a partial foreign tax credit for foreign income taxes. The amount of tax in any period on GILTI can depend on annual differences between U.S. taxable income recognition rules and taxable income recognition rules in the country of operations and the overall taxable income of U.S. operations, as well as U.S. expense allocation rules which limit the amount of foreign tax credits that can be applied to reduce the U.S. tax on the GILTI provision. Under certain circumstances the taxable income of U.S. operations may cause more than 50% of earnings of foreign affiliates to be subject to the GILTI provision. In years that the PFI consolidated federal income tax return reports a net operating loss or has a loss attributable to U.S. sources of operations, the GILTI provision would operate to cause a loss of U.S. tax benefits for some or all of those losses, effectively increasing the tax on foreign earnings. The Company accounts for the effects of the BEAT and GILTI provisions as a period cost if and when incurred. In December of 2017, Securities and Exchange Commission (“SEC”) staff issued “SAB 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act” (“SAB 118”), which allowed registrants to record provisional amounts during a “measurement period” not to extend beyond one year. Under the relief provided by SAB 118, a company could recognize provisional amounts when it did not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the change in tax law. See Note 16 to the Consolidated Financial Statements for a discussion of provisional amounts related to the Tax Act of 2017 recorded in 2017 and adjustments to provisional amounts recorded in 2018. U.S. GAAP prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a company has taken or expects to take on tax returns. The application of this guidance is a two-step process. First, the Company determines whether it is more likely than not, based on the technical merits, that the tax position will be sustained upon examination. If a tax position does not meet the more likely than not recognition threshold, the benefit of that position is not recognized in the financial statements. The second step is measurement. The Company measures the tax position as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate resolution with a taxing authority that has full knowledge of all relevant information. This measurement considers the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances, and information available at the reporting date. The Company’s liability for income taxes includes a liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) or other taxing jurisdictions. Audit periods remain open for review until the statute of limitations has passed. Generally, for tax years which produce net operating losses, capital losses or tax credit carryforwards (“tax attributes”), the statute of limitations does not close, to the extent of these tax attributes, until the expiration of the statute of limitations for the tax year in which they are fully utilized. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the liability for income taxes. The Company classifies all interest and penalties related to tax uncertainties as income tax expense. See Note 16 for additional information regarding income taxes. |
Short-Term and Long-Term Debt | Short-term and long-term debt liabilities are primarily carried at an amount equal to unpaid principal balance, net of unamortized discount or premium and debt issue costs. Original-issue discount or premium and debt-issue costs are recognized as a component of interest expense over the period the debt is expected to be outstanding, using the interest method of amortization. Interest expense is generally presented within “General and administrative expenses” in the Company’s Consolidated Statements of Operations. Interest expense may also be reported within “Net investment income” for certain activity, as prescribed by specialized industry guidance. Short-term debt is debt coming due in the next twelve months, including that portion of debt otherwise classified as long-term. The short-term debt caption may exclude short-term debt items for which the Company has the intent and ability to refinance on a long-term basis in the near-term. See Note 17 for additional information regarding short-term and long-term debt. |
Contingent Liabilities | Commitments and contingent liabilities are accrued if it is probable that a liability has been incurred and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated with the ultimate resolution of the matter that are reasonably estimable and, if so, they are included in the accrual. These accruals are generally reported in “Other liabilities.” |
Insurance Revenue and Expense Recognition | Insurance Revenue and Expense Recognition Premiums from individual life products, other than universal and variable life contracts, and health insurance and long-term care products are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for all expected future benefits and expenses) is generally deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology. Premiums from non-participating group annuities with life contingencies, single premium structured settlements with life contingencies and single premium immediate annuities with life contingencies are recognized when due. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium is generally deferred and recognized into revenue based on expected future benefit payments. Benefits are recorded as an expense when they are incurred. A liability for future policy benefits is recorded when premiums are recognized using the net level premium valuation methodology. Certain individual annuity contracts provide the contractholder a guarantee that the benefit received upon death or annuitization will be no less than a minimum prescribed amount. These benefits are accounted for as insurance contracts. The Company also provides contracts with certain living benefits which are considered embedded derivatives. See Note 13 for additional information regarding these contracts and Note 6 for information regarding the valuation of these embedded derivatives. Amounts received as payment for universal or variable group and individual life contracts, deferred fixed or variable annuities, structured settlements and other contracts without life contingencies, and participating group annuities are reported as deposits to “Policyholders’ account balances” and/or “Separate account liabilities.” Revenues from these contracts are reflected in “Policy charges and fee income” consisting primarily of fees assessed during the period against the policyholders’ account balances for mortality and other benefit charges, policy administration charges and surrender charges. In addition to fees, the Company earns investment income from the investment of deposits in the Company’s general account portfolio. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are generally deferred and amortized into revenue over the life of the related contracts in proportion to estimated gross profits. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration, interest credited to policyholders’ account balances and amortization of DAC, DSI and VOBA. Policyholders’ account balances also include amounts representing the fair value of embedded derivative instruments associated with the index-linked features of certain universal life and fixed annuity products. For additional information regarding the valuation of these embedded derivatives, see Note 6. For group life, other than universal and variable group life contracts, and disability insurance, premiums are generally recognized over the period to which the premiums relate in proportion to the amount of insurance protection provided. Claim and claim adjustment expenses are recognized when incurred. |
Asset Management and Service Fees | Asset management and service fees principally includes asset-based asset management fees, which are recognized in the period in which the services are performed. In certain asset management fee arrangements, the Company is entitled to receive performance-based incentive fees when the return on assets under management exceeds certain benchmark returns or other performance targets. The Company may be required to return all, or part, of such performance-based incentive fee depending on future performance of these assets relative to performance benchmarks. The Company records performance-based incentive fee revenue when the contractual terms of the asset management fee arrangement have been satisfied and it is probable that a significant reversal in the amount of the fee will not occur. Under this principle the Company records a deferred performance-based incentive fee liability to the extent it receives cash related to the performance-based incentive fee prior to meeting the revenue recognition criteria delineated above. |
Other Income | Other income (loss) includes realized and unrealized gains or losses from investments classified “Fixed maturities, trading,” “Assets supporting experience-rated contractholder liabilities, at fair value,” “Equity securities, at fair value,” and “Other invested assets” that are measured at fair value and consolidated entities that follow specialized investment company fair value accounting. “Other income (loss)” also includes gains and losses primarily related to the remeasurement of foreign currency denominated assets and liabilities, as discussed in more detail under “Foreign Currency” below. Additionally, for digital insurance brokerage placement services provided by Assurance IQ, the Company earns both initial and renewal commissions as compensation for the placement of insurance policies with insurance carriers. At the effective date of the policy, the Company records within “Other income (loss)” the expected lifetime revenue for the initial and renewal commissions considering estimates of the timing of future policy cancelations. These estimates are reassessed each reporting period and any changes in estimates are reflected in the current period. |
Share-Based Payments | Share-Based Payments The Company applies the fair value-based measurement method in accounting for share-based payment transactions with employees except for equity instruments held by employee share ownership plans. Excess tax benefits (deficits) are recorded in earnings and represent the cumulative difference between the actual tax benefit realized and the amount of deferred tax assets recorded attributable to shared-based payment transactions. The Company accounts for non-employee stock options using the fair value method in accordance with authoritative guidance and related interpretations on accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services. |
Earnings Per Share | Earnings Per Share Earnings per share of Common Stock for 2019, 2018 and 2017 reflects the consolidated earnings of Prudential Financial. Basic earnings per share is computed by dividing available income attributable to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share includes the effect of all dilutive potential common shares that were outstanding during the period. See Note 20 for additional information. |
Foreign Currency | Foreign Currency The currency in which the Company prepares its financial statements (the “reporting currency”) is the U.S. dollar. Assets, liabilities and results of foreign operations are recorded based on the functional currency of each foreign operation. The determination of the functional currency is based on economic facts and circumstances pertaining to each foreign operation. The local currencies of the Company’s foreign operations are typically their functional currencies with the most significant exception being the Company’s Japanese operations where multiple functional currencies exist. There are two distinct processes for expressing these foreign transactions and balances in the Company’s financial statements: foreign currency measurement and foreign currency translation. Foreign currency measurement is the process by which transactions in foreign currencies are expressed in the functional currency. Gains and losses resulting from foreign currency measurement are reported in current earnings in “Other income (loss).” Foreign currency translation is the process of expressing a foreign entity’s functional currency financial statements in the reporting currency. Assets and liabilities of foreign operations and subsidiaries reported in currencies other than U.S. dollars are translated at the exchange rate in effect at the end of the period. Revenues, benefits and other expenses are translated at the average rate prevailing during the period. The effects of translating the statements of operations and financial position of non-U.S. entities with functional currencies other than the U.S. dollar are included, net of related qualifying hedge gains and losses and income taxes, in “Foreign currency translation adjustment,” a component of AOCI. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk (“NPR”) used in valuation models. Derivative financial instruments generally used by the Company include swaps, futures, forwards and options and may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (OTC-cleared), while others are bilateral contracts between two counterparties (OTC-bilateral). Derivative positions are carried at fair value, generally by obtaining quoted market prices or through the use of valuation models. Derivatives are used to manage the interest rate and currency characteristics of assets or liabilities and to mitigate volatility of expected non-functional currency earnings and net investments in foreign operations resulting from changes in currency exchange rates. Additionally, derivatives may be used to seek to reduce exposure to interest rate, credit, foreign currency and equity risks associated with assets held or expected to be purchased or sold, and liabilities incurred or expected to be incurred. As discussed in detail below and in Note 5, all realized and unrealized changes in fair value of derivatives are recorded in current earnings, with the exception of cash flow hedges and hedges of net investments in foreign operations. The Company may also enter into intercompany derivatives, the results of which ultimately eliminate in consolidation over the term of the instrument; however, where applicable, derivative results are included in business gross profits which may impact the pattern by which DAC and other assets are amortized. Cash flows from derivatives are reported in the operating, investing, or financing activities sections in the Consolidated Statements of Cash Flows based on the nature and purpose of the derivative. Derivatives are recorded either as assets, within “Other invested assets,” or as liabilities, within “Other liabilities,” except for embedded derivatives which are recorded with the associated host contract. The Company nets the fair value of all derivative financial instruments with counterparties for which a master netting arrangement has been executed. The Company designates derivatives as either (1) a hedge of the fair value of a recognized asset or liability or unrecognized firm commitment (“fair value” hedge); (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow” hedge); (3) a foreign currency fair value or cash flow hedge (“foreign currency” hedge); (4) a hedge of a net investment in a foreign operation; or (5) a derivative that does not qualify for hedge accounting. To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated risk of the hedged item. Effectiveness of the hedge is formally assessed at inception and throughout the life of the hedging relationship. The Company formally documents at inception all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives designated as fair value, cash flow, or foreign currency hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. Hedges of a net investment in a foreign operation are linked to the specific foreign operation. When a derivative is designated as a fair value hedge and is determined to be highly effective, changes in its fair value, along with changes in the fair value of the hedged asset or liability (including losses or gains on firm commitments), are reported on a net basis in the Consolidated Statements of Operations, generally in “Realized investment gains (losses), net.” When swaps are used in hedge accounting relationships, periodic settlements are recorded in the same Consolidated Statements of Operations line as the related settlements of the hedged items. When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in its fair value are recorded in AOCI until earnings are affected by the variability of cash flows being hedged (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). At that time, the related portion of deferred gains or losses on the derivative instrument is reclassified and reported in the Consolidated Statements of Operations line item associated with the hedged item. When a derivative is designated as a foreign currency hedge and is determined to be highly effective, changes in its fair value are recorded either in current period earnings if the hedge transaction is a fair value hedge (e.g., a hedge of a recognized foreign currency asset or liability) or in AOCI if the hedge transaction is a cash flow hedge (e.g., a foreign currency denominated forecasted transaction). When a derivative is used as a hedge of a net investment in a foreign operation, its change in fair value is accounted for in the same manner as a translation adjustment (i.e., reported in the cumulative translation adjustment account within AOCI). If it is determined that a derivative no longer qualifies as an effective fair value or cash flow hedge or management removes the hedge designation, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net.” In this scenario, the hedged asset or liability under a fair value hedge will no longer be adjusted for changes in fair value and the existing basis adjustment is amortized to the Consolidated Statements of Operations line associated with the asset or liability. The component of AOCI related to discontinued cash flow hedges is reclassified to the Consolidated Statements of Operations line associated with the hedged cash flows consistent with the earnings impact of the original hedged cash flows. When hedge accounting is discontinued because the hedged item no longer meets the definition of a firm commitment, or because it is probable that the forecasted transaction will not occur by the end of the specified time period, the derivative will continue to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in “Realized investment gains (losses), net.” Any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized currently in “Realized investment gains (losses), net.” Gains and losses that were in AOCI pursuant to the cash flow hedge of a forecasted transaction are recognized immediately in “Realized investment gains (losses), net.” If a derivative does not qualify for hedge accounting, all changes in its fair value, including net receipts and payments, are included in “Realized investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. The Company is a party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. At inception, the Company assesses whether the economic characteristics of the embedded instrument are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that (1) the embedded instrument possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded instrument qualifies as an embedded derivative that is separated from the host contract, carried at fair value, and changes in its fair value are included in “Realized investment gains (losses), net.” For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company may elect to carry the entire instrument at fair value and report it within “Other invested assets” or “Other liabilities.” |
Reinsurance | Reinsurance For each of its reinsurance contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. The Company reviews all contractual features, particularly those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. The Company participates in reinsurance arrangements in various capacities as either the ceding entity or as the reinsurer (i.e., assuming entity). See Note 14 for additional information about the Company’s reinsurance arrangements. Reinsurance assumed business is generally accounted for consistent with direct business. Amounts currently recoverable under reinsurance agreements are included in “Other assets” and amounts payable are included in “Other liabilities.” Revenues and benefits and expenses include amounts assumed under reinsurance agreements and are reflected net of reinsurance ceded. Reinsurance ceded arrangements do not discharge the Company as the primary insurer. Ceded balances would represent a liability of the Company in the event the reinsurers were unable to meet their obligations to the Company under the terms of the reinsurance agreements. Reinsurance premiums, commissions, expense reimbursements, benefits and reserves related to reinsured long-duration contracts under coinsurance arrangements are accounted for over the life of the underlying reinsured contracts using assumptions consistent with those used to account for the underlying contracts. Coinsurance arrangements contrast with the Company’s yearly renewable term arrangements, where only mortality risk is transferred to the reinsurer and premiums are paid to the reinsurer to reinsure that risk . The mortality risk that is reinsured under yearly renewable term arrangements represents the difference between the stated death benefits in the underlying reinsured contracts and the corresponding reserves or account value carried by the Company on those same contracts. The premiums paid to the reinsurer are based upon negotiated amounts, not on the actual premiums paid by the underlying contract holders to the Company. As yearly renewable term arrangements are usually entered into by the Company with the expectation that the contracts will be in force for the lives of the underlying policies, they are considered to be long-duration reinsurance contracts. The cost of reinsurance for universal life products is generally recognized based on the gross assessments of the underlying direct policies. The cost of reinsurance for term insurance products is generally recognized in proportion to yearly renewable term premiums over the life of the underlying policies. The cost of reinsurance related to short-duration reinsurance contracts is accounted for over the reinsurance contract period. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in “Other liabilities” and deposits made are included in “Other assets”. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as “Other income (loss)” or “General and administrative expenses”, as appropriate. Accounting for Certain Reinsurance Contracts in the Individual Life Business In 2017, the Company recognized a charge of $237 million in the Individual Life segment, reflecting a change to a preferable accounting method for estimating reinsurance cash flows associated with universal life products and reflecting these cash flows in the financial statements. Under the previous method of accounting, with the exception of recoveries pertaining to no lapse guarantees, reinsurance cash flows (e.g., premiums and recoveries) were generally recognized as they occurred. Under the new method, the expected reinsurance cash flows are recognized more ratably over the life of the underlying reinsured policies. In conjunction with this change, the way in which reinsurance is reflected in estimated gross profits used for the amortization of unearned revenue reserves, DAC and VOBA was also revised. The change represents a change in accounting estimate effected by a change in accounting principle and is included within the Company’s annual reviews and update of assumptions and other refinements. |
Adoption of New Accounting Pronouncements | ASUs adopted during the year ended December 31, 2019 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters ASU 2016-02 , Leases (Topic 842) This ASU requires lessees to recognize assets and liabilities from all outstanding lease contracts on the balance sheet (with limited exception). Specifically, lessees are required to record on balance sheet “right-of-use” assets and related liabilities to make operating or finance lease payments. Lessees are required to record single lease expenses on a straight-line basis for operating leases, and interest and amortization expenses for finance leases. For lessors, the standard modifies classification criteria and accounting for sales-type and direct financing leases and requires a lessor to derecognize the carrying value of the leased asset that is considered to have been transferred to a lessee and record a lease receivable and residual asset (“receivable and residual” approach). The standard also eliminates the real estate specific provisions of existing Topic 840, Leases , and requires additional disclosures. January 1, 2019 using the modified retrospective method with a cumulative effect adjustment as of the earliest period presented. The Company elected the package of practical expedients permitted under the transition guidance 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 ASU 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 on the Consolidated Financial Statements. Adoption of the standard also resulted in additional required disclosures. See Note 11 for additional information. 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 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 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. |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of December 31, 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 Consolidated Financial Statements and Notes to the Consolidated Financial Statements. In October 2019, the FASB issued ASU 2019-09, Financial Services - Insurance (Topic 944): Effective Date to affirm its decision to defer the effective date of ASU 2018-12 to January 1, 2022 (with early adoption permitted), representing a one year extension from the original effective date of January 1, 2021. 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 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 DSI, 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 liability for 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, and record market risk benefit assets and liabilities separately on the Consolidated Statements of Financial Position. Changes in fair value of market risk benefits are recorded in net income, except for the portion of the change that is attributable to changes in an entity’s NPR which is recognized in OCI. An entity shall adopt the guidance for market risk benefits using the retrospective transition method, which includes a cumulative effect adjustment on the balance sheet as of the earliest period presented. An entity shall maximize the use of relevant observable information and minimize the use of unobservable information in determining the balance of the market risk benefits upon adoption. 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 ASUs issued but not yet adopted as of December 31, 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): 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 ASC 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. Adoption of this guidance will result in 1) the recognition of an allowance for credit losses based on the current expected credit loss model on financial assets carried at amortized cost and certain off-balance sheet credit exposures; and 2) related adjustments to retained earnings. The cumulative effect associated with the adoption of this standard is expected to reduce retained earnings by approximately $100 million. This impact is attributable to an increase of $152 million in the allowance for losses (primarily related to mortgage loans) reduced by $52 million related to offsets for deferred tax liability, policyholders’ dividends and deferred policy acquisition costs. 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, 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. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of the ASU to have a significant impact on the Consolidated Financial Statements and Notes to the Consolidated Financial Statements. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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 debt 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 debt 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: December 31, 2019 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 $ 30,625 $ 5,195 $ 161 $ 35,659 $ 0 Obligations of U.S. states and their political subdivisions 10,068 1,437 8 11,497 0 Foreign government bonds 98,356 20,761 63 119,054 (34 ) U.S. public corporate securities 87,566 11,030 257 98,339 (6 ) U.S. private corporate securities(1) 34,410 2,243 120 36,533 0 Foreign public corporate securities 26,841 3,054 70 29,825 (1 ) Foreign private corporate securities 27,619 1,201 580 28,240 0 Asset-backed securities(2) 13,067 147 40 13,174 (77 ) Commercial mortgage-backed securities 14,978 610 14 15,574 0 Residential mortgage-backed securities(3) 3,044 159 2 3,201 (1 ) Total fixed maturities, available-for-sale(1) $ 346,574 $ 45,837 $ 1,315 $ 391,096 $ (119 ) (1) Excludes notes with amortized cost of $4,751 million (fair value, $4,757 million ), which have been offset with the associated debt under a netting agreement. (2) Includes collateralized loan obligations, auto loans, education loans, home equity 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 $362 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 $4,998 million (fair value, $5,401 million ), which have been offset with the associated debt 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 ) |
Fixed Maturities, Held-to-maturity Securities | December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 891 $ 282 $ 0 $ 1,173 Foreign public corporate securities 649 64 0 713 Foreign private corporate securities 83 2 0 85 Residential mortgage-backed securities(3) 310 21 0 331 Total fixed maturities, held-to-maturity(5) $ 1,933 $ 369 $ 0 $ 2,302 __________ (1) Excludes notes with amortized cost of $4,751 million (fair value, $4,757 million ), which have been offset with the associated debt under a netting agreement. (2) Includes collateralized loan obligations, auto loans, education loans, home equity 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 $362 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 $4,998 million (fair value, $5,401 million ), which have been offset with the associated debt under a netting agreement. 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 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 debt 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 debt 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: December 31, 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 $ 4,950 $ 161 $ 267 $ 0 $ 5,217 $ 161 Obligations of U.S. states and their political subdivisions 273 8 0 0 273 8 Foreign government bonds 2,332 60 126 3 2,458 63 U.S. public corporate securities 3,944 85 2,203 172 6,147 257 U.S. private corporate securities 2,283 44 1,563 76 3,846 120 Foreign public corporate securities 1,271 23 496 47 1,767 70 Foreign private corporate securities 1,466 33 5,666 547 7,132 580 Asset-backed securities 3,979 12 4,433 28 8,412 40 Commercial mortgage-backed securities 1,193 10 164 4 1,357 14 Residential mortgage-backed securities 207 1 88 1 295 2 Total $ 21,898 $ 437 $ 15,006 $ 878 $ 36,904 $ 1,315 __________ (1) As of December 31, 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: December 31, 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 $ 12,287 $ 12,816 $ 29 $ 29 Due after one year through five years 51,942 55,160 114 116 Due after five years through ten years 68,965 75,506 592 657 Due after ten years(1) 182,291 215,665 888 1,169 Asset-backed securities 13,067 13,174 0 0 Commercial mortgage-backed securities 14,978 15,574 0 0 Residential mortgage-backed securities 3,044 3,201 310 331 Total $ 346,574 $ 391,096 $ 1,933 $ 2,302 __________ (1) Excludes available-for-sale notes with amortized cost of $4,751 million (fair value, $4,757 million ) and held-to-maturity notes with amortized cost of $4,998 million (fair value, $5,401 million ), which have been offset with the associated debt 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: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 32,283 $ 38,230 $ 34,002 Proceeds from maturities/prepayments 20,036 21,207 24,460 Gross investment gains from sales and maturities 1,715 1,412 1,548 Gross investment losses from sales and maturities (434 ) (905 ) (700 ) OTTI recognized in earnings(2) (315 ) (279 ) (267 ) Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(3) $ 99 $ 94 $ 153 __________ (1) Includes $13 million , $(238) million and $218 million of non-cash related proceeds due to the timing of trade settlements for the years ended December 31, 2019 , 2018 and 2017 , 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 less than $(1) million , less than $(1) million and $(2) million of non-cash related proceeds due to the timing of trade settlements for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI | The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated: Years Ended December 31, 2019 2018 (in millions) Credit loss impairments: Balance in OCI, beginning of period $ 140 $ 319 New credit loss impairments 61 1 Additional credit loss impairments on securities previously impaired 12 0 Increases due to the passage of time on previously recorded credit losses 6 10 Reductions for securities which matured, paid down, prepaid or were sold during the period (44 ) (162 ) Reductions for securities impaired to fair value during the period(1) (12 ) (24 ) Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (4 ) (4 ) Balance in OCI, end of period $ 159 $ 140 __________ (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: December 31, 2019 December 31, 2018 Amortized Cost or Cost Fair Value Amortized Cost or Cost Fair Value (in millions) Short-term investments and cash equivalents $ 277 $ 277 $ 215 $ 215 Fixed maturities: Corporate securities 13,143 13,603 13,258 13,119 Commercial mortgage-backed securities 1,845 1,896 2,346 2,324 Residential mortgage-backed securities(1) 1,134 1,158 828 811 Asset-backed securities(2) 1,639 1,662 1,649 1,665 Foreign government bonds 802 814 1,087 1,083 U.S. government authorities and agencies and obligations of U.S. states 341 397 538 577 Total fixed maturities(3) 18,904 19,530 19,706 19,579 Equity securities 1,465 1,790 1,378 1,460 Total assets supporting experience-rated contractholder liabilities(4) $ 20,646 $ 21,597 $ 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, home equity and other asset types. Collateralized loan obligations at fair value were $1,060 million and $1,028 million as of December 31, 2019 and 2018 , respectively, all of which were rated AAA. (3) As a percentage of amortized cost, 94% and 93% of the portfolio was considered high or highest quality based on NAIC or equivalent ratings, as of December 31, 2019 and 2018 , respectively. (4) As a percentage of amortized cost, 77% and 78% of the portfolio consisted of public securities as of December 31, 2019 and 2018 , respectively. |
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: December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 74,118 $ 89,546 $ 71,952 $ 84,461 Fixed maturities, held-to-maturity 869 1,143 864 1,127 Fixed maturities, trading 23 23 22 22 Assets supporting experience-rated contractholder liabilities 653 664 691 697 Total $ 75,663 $ 91,376 $ 73,529 $ 86,307 December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 10,823 $ 13,322 $ 10,339 $ 12,586 Assets supporting experience-rated contractholder liabilities 15 16 15 15 Total $ 10,838 $ 13,338 $ 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: December 31, 2019 December 31, 2018 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 13,462 21.4 % $ 13,280 22.4 % Retail 8,379 13.3 8,639 14.6 Apartments/Multi-Family 17,348 27.6 16,538 28.0 Industrial 13,226 21.1 11,574 19.6 Hospitality 2,415 3.9 1,931 3.3 Other 4,533 7.2 3,846 6.5 Total commercial mortgage loans 59,363 94.5 55,808 94.4 Agricultural property loans 3,472 5.5 3,316 5.6 Total commercial mortgage and agricultural property loans by property type 62,835 100.0 % 59,124 100.0 % Allowance for credit losses (117 ) (123 ) Total net commercial mortgage and agricultural property loans by property type 62,718 59,001 Other loans: Uncollateralized loans 656 660 Residential property loans 124 157 Other collateralized loans 65 17 Total other loans 845 834 Allowance for credit losses (4 ) (5 ) Total net other loans 841 829 Total commercial mortgage and other loans(1) $ 63,559 $ 59,830 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of December 31, 2019 and 2018 , the net carrying value of these loans was $228 million and $763 million , respectively. |
Allowance for Credit Losses | The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Balance at December 31, 2016 $ 96 $ 2 $ 2 $ 0 $ 6 $ 106 Addition to (release of) allowance for credit losses 2 1 (1 ) 0 (1 ) 1 Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 0 0 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 (5 ) 0 0 0 (1 ) (6 ) Charge-offs, net of recoveries (1 ) 0 0 0 0 (1 ) Change in foreign exchange 0 0 0 0 0 0 Balance at December 31, 2019 $ 114 $ 3 $ 0 $ 0 $ 4 $ 121 |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans | The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated: December 31, 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 $ 7 $ 0 $ 0 $ 0 $ 0 $ 7 Collectively evaluated for impairment 107 3 0 0 4 114 Total ending balance(1) $ 114 $ 3 $ 0 $ 0 $ 4 $ 121 Recorded investment(2): Individually evaluated for impairment $ 65 $ 15 $ 0 $ 0 $ 0 $ 80 Collectively evaluated for impairment 59,298 3,457 124 65 656 63,600 Total ending balance(1) $ 59,363 $ 3,472 $ 124 $ 65 $ 656 $ 63,680 __________ (1) As of December 31, 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 December 31, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 31,027 $ 701 $ 217 $ 31,945 60%-69.99% 17,090 1,145 42 18,277 70%-79.99% 8,020 719 28 8,767 80% or greater 209 143 22 374 Total commercial mortgage loans $ 56,346 $ 2,708 $ 309 $ 59,363 Agricultural property loans December 31, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 3,289 $ 57 $ 14 $ 3,360 60%-69.99% 112 0 0 112 70%-79.99% 0 0 0 0 80% or greater 0 0 0 0 Total agricultural property loans $ 3,401 $ 57 $ 14 $ 3,472 Total commercial mortgage and agricultural property loans December 31, 2019 Debt Service Coverage Ratio > 1.2X 1.0X to <1.2X < 1.0X Total (in millions) Loan-to-Value Ratio: 0%-59.99% $ 34,316 $ 758 $ 231 $ 35,305 60%-69.99% 17,202 1,145 42 18,389 70%-79.99% 8,020 719 28 8,767 80% or greater 209 143 22 374 Total commercial mortgage and agricultural property loans $ 59,747 $ 2,765 $ 323 $ 62,835 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: December 31, 2019 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Loans Non-Accrual Status(2) (in millions) Commercial mortgage loans $ 59,363 $ 0 $ 0 $ 0 $ 0 $ 59,363 $ 44 Agricultural property loans 3,458 1 0 13 14 3,472 13 Residential property loans 121 1 0 2 3 124 2 Other collateralized loans 65 0 0 0 0 65 0 Uncollateralized loans 656 0 0 0 0 656 0 Total $ 63,663 $ 2 $ 0 $ 15 $ 17 $ 63,680 $ 59 __________ (1) As of December 31, 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. 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 Loans Non-Accrual Status(2) (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. |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: December 31, 2019 2018 (in millions) LPs/LLCs: Equity method: Private equity $ 3,625 $ 3,182 Hedge funds 1,947 1,337 Real estate-related 1,372 1,207 Subtotal equity method 6,944 5,726 Fair value: Private equity 1,705 1,684 Hedge funds 2,172 2,135 Real estate-related 336 296 Subtotal fair value 4,213 4,115 Total LPs/LLCs 11,157 9,841 Real estate held through direct ownership(1) 2,388 2,466 Derivative instruments 877 1,155 Other(2) 1,184 1,064 Total other invested assets $ 15,606 $ 14,526 __________ (1) As of December 31, 2019 and 2018 , real estate held through direct ownership had mortgage debt of $537 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 17. |
Equity Method Investments | The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 9. Changes between periods in the tables below reflect changes in the activities within the operating joint ventures and LPs/LLCs, as well as changes in the Company’s level of investment in such entities. December 31, 2019 2018 (in millions) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 313,828 $ 78,546 Total liabilities(2) $ 19,274 $ 8,293 Partners’ capital 294,554 70,253 Total liabilities and partners’ capital $ 313,828 $ 78,546 Total liabilities and partners’ capital included above $ 7,438 $ 6,265 Equity in LP/LLC interests not included above 814 790 Carrying value $ 8,252 $ 7,055 __________ (1) Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets. (2) Amount represents gross liabilities of each fund where the Company has a significant investment. These liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities. Years Ended December 31, 2019 2018 2017 (in millions) STATEMENTS OF OPERATIONS Total revenue(1) $ 11,430 $ 6,264 $ 6,392 Total expenses(2) (5,800 ) (3,222 ) (2,300 ) Net earnings (losses) $ 5,630 $ 3,042 $ 4,092 Equity in net earnings (losses) included above $ 525 $ 233 $ 409 Equity in net earnings (losses) of LP/LLC interests not included above 11 14 123 Total equity in net earnings (losses) $ 536 $ 247 $ 532 __________ (1) Amount represents gross revenue of each fund where the Company has a significant investment. This revenue consists of income from investments in real estate, investments in securities and other income. (2) Amount represents gross expenses of each fund where the Company has a significant investment. These expenses consist primarily of interest expense, investment management fees, salary expenses and other expenses. The following table sets forth information related to the Company’s investments in operating joint ventures as of and for the years ended December 31: 2019 2018 2017 (in millions) Investment in operating joint ventures $ 1,309 $ 1,329 $ 1,483 Dividends received from operating joint ventures $ 70 $ 93 $ 63 After-tax equity in earnings of operating joint ventures $ 100 $ 76 $ 49 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities, available-for-sale(1) $ 12,644 $ 11,989 $ 11,482 Fixed maturities, held-to-maturity(1) 232 226 215 Fixed maturities, trading 149 143 163 Assets supporting experience-rated contractholder liabilities, at fair value 731 722 736 Equity securities, at fair value 160 164 398 Commercial mortgage and other loans 2,584 2,352 2,267 Policy loans 619 622 617 Other invested assets 1,005 519 1,117 Short-term investments and cash equivalents 453 345 203 Gross investment income 18,577 17,082 17,198 Less: investment expenses (992 ) (906 ) (763 ) Net investment income $ 17,585 $ 16,176 $ 16,435 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line items 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: Years Ended December 31, 2019 2018 2017 (in millions) Fixed maturities(1) $ 966 $ 228 $ 581 Equity securities(2) 0 0 1,066 Commercial mortgage and other loans 44 49 70 Investment real estate 78 84 12 LPs/LLCs (38 ) 17 (23 ) Derivatives (1,513 ) 1,597 (1,275 ) Other 4 2 1 Realized investment gains (losses), net $ (459 ) $ 1,977 $ 432 __________ (1) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading. (2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within “Other income (loss).” |
Net Unrealized Gains (Losses) on Investment | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: December 31, 2019 2018 2017 (in millions) Fixed maturity securities, available-for-sale—with OTTI $ 243 $ 190 $ 286 Fixed maturity securities, available-for-sale—all other 44,279 21,721 34,109 Equity securities, available-for-sale(1) 0 0 2,027 Derivatives designated as cash flow hedges(2) 832 811 (39 ) Other investments(3) (15 ) (2 ) 15 Net unrealized gains (losses) on investments $ 45,339 $ 22,720 $ 36,398 __________ (1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income (loss).” (2) For more information on cash flow hedges, see Note 5. (3) As of December 31, 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: December 31, 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) $ 9,431 $ 0 $ 9,431 $ 9,418 $ 171 $ 9,589 U.S. public corporate securities 0 0 0 19 0 19 Residential mortgage-backed securities(1) 250 0 250 342 0 342 Total securities sold under agreements to repurchase(1)(2) $ 9,681 $ 0 $ 9,681 $ 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: December 31, 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 $ 9 $ 0 $ 9 $ 105 $ 0 $ 105 Obligations of U.S. states and their political subdivisions 33 0 33 88 0 88 Foreign government bonds 244 0 244 325 0 325 U.S. public corporate securities 2,996 0 2,996 2,563 0 2,563 Foreign public corporate securities 762 0 762 693 0 693 Commercial mortgage-backed securities 2 0 2 0 0 0 Equity securities 167 0 167 155 0 155 Total cash collateral for loaned securities(1) $ 4,213 $ 0 $ 4,213 $ 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. |
Securities Pledged | The following table sets forth the carrying value of investments pledged to third parties, as of the dates indicated: December 31, 2019 2018 (in millions) Fixed maturities(1) $ 15,109 $ 15,319 Fixed maturities, trading 58 0 Assets supporting experience-rated contractholder liabilities 22 123 Separate account assets 2,547 2,811 Equity securities 543 152 Other 445 0 Total securities pledged $ 18,724 $ 18,405 __________ (1) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading. The following table sets forth the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated: December 31, 2019 2018 (in millions) Securities sold under agreements to repurchase $ 9,681 $ 9,950 Cash collateral for loaned securities 4,213 3,929 Separate account liabilities 2,624 2,867 Total liabilities supported by the pledged collateral $ 16,518 $ 16,746 The following table provides assets on deposit, assets held in trust, and securities restricted as to sale, as of the dates indicated: December 31, 2019 2018 (in millions) Assets on deposit with governmental authorities or trustees $ 30 $ 27 Assets held in voluntary trusts(1) 58 609 Assets held in trust related to reinsurance and other agreements(2) 14,897 13,259 Securities restricted as to sale(3) 36 40 Total assets on deposit, assets held in trust and securities restricted as to sale $ 15,021 $ 13,935 __________ (1) Represents assets held in voluntary trusts established primarily to fund guaranteed dividends to certain policyholders and to fund certain employee benefits. (2) Represents assets held in trust related to reinsurance agreements excluding reinsurance agreements between wholly-owned subsidiaries. Assets valued at $21.7 billion and $ 16.1 billion were held in trust related to reinsurance agreements between wholly-owned subsidiaries as of December 31, 2019 and 2018, respectively. (3) Includes member and activity stock associated with memberships in the Federal Home Loan Banks of New York and Boston. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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 and cash collateral. This netting impact results in total derivative assets of $867 million and $1,148 million as of December 31, 2019 and 2018 , respectively, and total derivative liabilities of $831 million and $127 million as of December 31, 2019 and 2018 , respectively, reflected in the Consolidated Statements of Financial Position. December 31, 2019 December 31, 2018 Primary Underlying Risk/ Instrument Type Gross Fair Value Gross Fair Value Notional Assets Liabilities Notional Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 3,257 $ 628 $ (73 ) $ 3,885 $ 305 $ (67 ) Interest Rate Forwards 205 4 (1 ) 600 26 0 Foreign Currency Foreign Currency Forwards 1,461 22 (57 ) 722 26 (2 ) Currency/Interest Rate Foreign Currency Swaps 22,746 1,467 (302 ) 20,724 1,520 (358 ) Total Derivatives Designated as Hedge Accounting Instruments $ 27,669 $ 2,121 $ (433 ) $ 25,931 $ 1,877 $ (427 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 141,162 $ 10,249 $ (4,861 ) $ 140,963 $ 5,792 $ (3,435 ) Interest Rate Futures 17,095 4 (38 ) 13,991 23 (2 ) Interest Rate Options 16,496 339 (238 ) 24,002 147 (314 ) Interest Rate Forwards 2,218 18 (3 ) 5,049 72 0 Foreign Currency Foreign Currency Forwards 26,604 208 (214 ) 19,849 246 (138 ) Foreign Currency Options 0 0 0 2 0 0 Currency/Interest Rate Foreign Currency Swaps 13,874 740 (345 ) 13,784 773 (421 ) Credit Credit Default Swaps 798 21 0 5,207 33 (23 ) Equity Equity Futures 1,802 0 (3 ) 1,141 0 (8 ) Equity Options 32,657 679 (765 ) 58,693 384 (554 ) Total Return Swaps 18,218 6 (636 ) 17,309 1,131 (86 ) Other Other(1) 1,258 0 0 508 0 0 Synthetic GICs 80,009 1 0 79,215 2 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 352,191 $ 12,265 $ (7,103 ) $ 379,713 $ 8,603 $ (4,981 ) Total Derivatives(2)(3) $ 379,860 $ 14,386 $ (7,536 ) $ 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 $14,035 million and $8,959 million as of December 31, 2019 , and 2018 , respectively, primarily included in “Future policy benefits.” (3) Recorded in “Other invested assets” and “Other liabilities” on the Consolidated Statements of Financial Position. |
Schedule of financial instruments in a fair value hedge accounting relationship [Table Text Block] | As of December 31, 2019 , the following amounts were recorded on the 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 $ 389 $ 64 Commercial mortgage and other loans $ 23 $ 2 Policyholders’ account balances $ (1,376 ) $ (107 ) Future policy benefits $ (676 ) $ (172 ) ________ (1) There were no material fair value hedging adjustments for hedged assets and liabilities for which hedge accounting has been discontinued. |
Offsetting Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 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) $ 14,303 $ (13,519 ) $ 784 $ (607 ) $ 177 Securities purchased under agreement to resell 1,012 0 1,012 (1,012 ) 0 Total Assets $ 15,315 $ (13,519 ) $ 1,796 $ (1,619 ) $ 177 Offsetting of Financial Liabilities: Derivatives(1) $ 7,528 $ (6,705 ) $ 823 $ (244 ) $ 579 Securities sold under agreement to repurchase 9,681 0 9,681 (9,681 ) 0 Total Liabilities $ 17,209 $ (6,705 ) $ 10,504 $ (9,925 ) $ 579 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 Instruments/ Collateral(1) 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 Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Consolidated Statements of Financial Position. December 31, 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) $ 14,303 $ (13,519 ) $ 784 $ (607 ) $ 177 Securities purchased under agreement to resell 1,012 0 1,012 (1,012 ) 0 Total Assets $ 15,315 $ (13,519 ) $ 1,796 $ (1,619 ) $ 177 Offsetting of Financial Liabilities: Derivatives(1) $ 7,528 $ (6,705 ) $ 823 $ (244 ) $ 579 Securities sold under agreement to repurchase 9,681 0 9,681 (9,681 ) 0 Total Liabilities $ 17,209 $ (6,705 ) $ 10,504 $ (9,925 ) $ 579 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 Instruments/ Collateral(1) 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 | Year Ended December 31, 2019 Realized Investment Gains (Losses) Net Investment Income Other Income (Loss) Interest Expense Interest Credited To Policyholders’ Account Balances 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 $ (14 ) $ (7 ) $ 0 $ 0 $ 194 $ 155 $ 0 Currency 0 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (14 ) (7 ) 0 0 194 155 0 Gains (losses) on the hedged item: Interest Rate 11 20 0 0 (186 ) (140 ) 0 Currency 1 3 0 0 0 0 0 Total gains (losses) on hedged item 12 23 0 0 (186 ) (140 ) 0 Total gains (losses) on fair value hedges net of hedged item (2 ) 16 0 0 8 15 0 Cash flow hedges Interest Rate 58 0 0 0 0 0 (25 ) Currency 6 0 0 0 0 0 (62 ) Currency/Interest Rate 130 282 (97 ) 0 0 0 99 Total gains (losses) on cash flow hedges 194 282 (97 ) 0 0 0 12 Net investment hedges Currency 0 0 0 0 0 0 4 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 4 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 4,533 0 0 0 0 0 0 Currency 14 0 5 0 0 0 0 Currency/Interest Rate 394 0 0 0 0 0 0 Credit 123 0 0 0 0 0 0 Equity (4,057 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (2,705 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (1,698 ) 0 5 0 0 0 0 Total $ (1,506 ) $ 298 $ (92 ) $ 0 $ 8 $ 15 $ 16 Year Ended December 31, 2018(2) Realized Investment Gains (Losses) Net Investment Income Other Income (Loss) Interest Expense Interest Credited To Policyholders’ Account Balances 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 $ 20 $ (9 ) $ 0 $ 0 $ (65 ) $ 35 $ 0 Currency 6 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments 26 (9 ) 0 0 (65 ) 35 0 Gains (losses) on the hedged item: Interest Rate (27 ) 31 0 0 79 (31 ) 0 Currency (5 ) 3 0 0 0 0 0 Total gains (losses) on hedged item (32 ) 34 0 0 79 (31 ) 0 Total gains (losses) on fair value hedges net of hedged item (6 ) 25 0 0 14 4 0 Cash flow hedges Interest Rate 2 0 0 (1 ) 0 0 32 Currency 7 0 0 0 0 0 20 Currency/Interest Rate 69 217 257 0 0 0 798 Total gains (losses) on cash flow hedges 78 217 257 (1 ) 0 0 850 Net investment hedges Currency 0 0 0 0 0 0 6 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 6 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate (1,226 ) 0 0 0 0 0 0 Currency 342 0 (1 ) 0 0 0 0 Currency/Interest Rate 364 0 3 0 0 0 0 Credit (55 ) 0 0 0 0 0 0 Equity 1,121 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives 966 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments 1,512 0 2 0 0 0 0 Total $ 1,584 $ 242 $ 259 $ (1 ) $ 14 $ 4 $ 856 Year Ended December 31, 2017(2) Realized Investment Gains (Losses) Net Investment Income Other Income (Loss) Interest Expense Interest Credited To Policyholders’ Account Balances 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 $ 16 $ (19 ) $ 0 $ 0 $ (1 ) $ 0 $ 0 Currency (6 ) 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments 10 (19 ) 0 0 (1 ) 0 0 Gains (losses) on the hedged item: Interest Rate (18 ) 37 0 0 0 0 0 Currency 6 5 0 0 0 0 0 Total gains (losses) on hedged item (12 ) 42 0 0 0 0 0 Total gains (losses) on fair value hedges net of hedged item (2 ) 23 0 0 (1 ) 0 0 Cash flow hedges Interest Rate 0 0 0 (3 ) 0 0 7 Currency 0 0 0 0 0 0 (3 ) Currency/Interest Rate 98 189 (303 ) 0 0 0 (1,359 ) Total gains (losses) on cash flow hedges 98 189 (303 ) (3 ) 0 0 (1,355 ) Net investment hedges Currency 0 0 0 0 0 0 (9 ) Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 (9 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 1,161 0 0 0 0 0 0 Currency (340 ) 0 0 0 0 0 0 Currency/Interest Rate (348 ) 0 (5 ) 0 0 0 0 Credit 13 0 0 0 0 0 0 Equity (2,498 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives 644 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (1,368 ) 0 (5 ) 0 0 0 0 Total $ (1,272 ) $ 212 $ (308 ) $ (3 ) $ (1 ) $ 0 $ (1,364 ) __________ (1) Net change in AOCI. (2) Prior period amounts have been updated to conform to current period presentation. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income(Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in millions) Balance, December 31, 2016 $ 1,316 Amount recorded in AOCI Interest Rate 5 Currency (3 ) Currency/Interest Rate (1,375 ) Total amount recorded in AOCI (1,373 ) Amount reclassified from AOCI to income Interest Rate 2 Currency 0 Currency/Interest Rate 16 Total amount reclassified from AOCI to income 18 Balance, December 31, 2017 $ (39 ) Amount recorded in AOCI Interest Rate 33 Currency 27 Currency/Interest Rate 1,341 Total amount recorded in AOCI 1,401 Amount reclassified from AOCI to income Interest Rate (1 ) Currency (7 ) Currency/Interest Rate (543 ) Total amount reclassified from AOCI to income (551 ) Balance, December 31, 2018 $ 811 Cumulative effect adjustment from the adoption of ASU 2017-12(1) 9 Amount recorded in AOCI Interest Rate 33 Currency (56 ) Currency/Interest Rate 414 Total amount recorded in AOCI 391 Amount reclassified from AOCI to income Interest Rate (58 ) Currency (6 ) Currency/Interest Rate (315 ) Total amount reclassified from AOCI to income (379 ) Balance, December 31, 2019 $ 832 _________ (1) See Note 2 for details. |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 $ 35,554 $ 105 $ $ 35,659 Obligations of U.S. states and their political subdivisions 0 11,493 4 11,497 Foreign government bonds 0 119,032 22 119,054 U.S. corporate public securities 0 97,959 380 98,339 U.S. corporate private securities(2) 0 34,749 1,784 36,533 Foreign corporate public securities 0 29,756 69 29,825 Foreign corporate private securities 0 27,237 1,003 28,240 Asset-backed securities(3) 0 12,238 936 13,174 Commercial mortgage-backed securities 0 15,574 0 15,574 Residential mortgage-backed securities 0 3,189 12 3,201 Subtotal 0 386,781 4,315 391,096 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 185 0 185 Obligations of U.S. states and their political subdivisions 0 212 0 212 Foreign government bonds 0 790 24 814 Corporate securities 0 12,966 637 13,603 Asset-backed securities(3) 0 1,593 69 1,662 Commercial mortgage-backed securities 0 1,896 0 1,896 Residential mortgage-backed securities 0 1,158 0 1,158 Equity securities 1,505 285 0 1,790 All other(4) 0 261 0 261 Subtotal 1,505 19,346 730 21,581 Fixed maturities, trading 0 3,597 287 3,884 Equity securities 5,813 939 633 7,385 Commercial mortgage and other loans 0 228 0 228 Other invested assets(5) 6 14,379 567 (13,519 ) 1,433 Short-term investments 1,806 1,975 155 3,936 Cash equivalents 2,079 6,796 131 9,006 Other assets 0 0 113 113 Separate account assets(6)(7) 46,574 240,433 1,717 288,724 Total assets $ 57,783 $ 674,474 $ 8,648 $ (13,519 ) $ 727,386 Future policy benefits(8) $ 0 $ 0 $ 12,831 $ $ 12,831 Policyholders’ account balances 0 0 1,316 1,316 Other liabilities 41 7,495 105 (6,705 ) 936 Notes issued by consolidated VIEs 0 0 800 800 Total liabilities $ 41 $ 7,495 $ 15,052 $ (6,705 ) $ 15,883 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 $6,814 million and $4,050 million as of December 31, 2019 and 2018 , respectively. (2) Excludes notes with fair value of $4,757 million (carrying amount of $4,751 million ) and $4,216 million (carrying amount of $4,216 million ) as of December 31, 2019 and 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. At December 31, 2019 and 2018 , the fair values of such investments were $4,213 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. At December 31, 2019 and 2018 , the fair value of such investments were $23,557 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 Consolidated Statements of Financial Position. (8) As of December 31, 2019 , the net embedded derivative liability position of $12.8 billion includes $0.7 billion of embedded derivatives in an asset position and $13.5 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 December 31, 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) $ 1,424 Discounted cash flow(4) Discount rate 0.49% 20% 7.41 % Decrease Market comparables EBITDA multiples(3) 5.7X 9.2X 7.3X Increase Liquidation Liquidation value 14.25% 83.61% 59.47 % Increase Equity securities $ 210 Discounted cash flow(4) Discount rate 10% 30% Decrease Market comparables EBITDA multiples(3) 1X 10.1X 5.4X Increase Net Asset Value Share price $5 $1,353 $451 Increase Separate account assets-commercial mortgage loans(5) $ 796 Discounted cash flow Spread 1.11% 1.85% 1.26 % Decrease Liabilities: Future policy benefits(6) $ 12,831 Discounted cash flow Lapse rate(8) 1% 18% Decrease Spread over LIBOR(9) 0.10% 1.23% Decrease Utilization rate(10) 43% 97% Increase Withdrawal rate See table footnote (11) below. Mortality rate(12) 0% 15% Decrease Equity volatility curve 13% 23% Increase Policyholders’ account balances(7) $ 1,316 Discounted cash flow Lapse rate(8) 1% 42% Decrease Spread over LIBOR(9) 0.1% 1.23% Decrease Mortality rate(12) 0% 24% Decrease Equity volatility curve 6% 25% 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(5) $ 785 Discounted cash flow Spread 1.12% 2.55% 1.29% Decrease Liabilities: Future policy benefits(6) $ 8,926 Discounted cash flow Lapse rate(8) 1% 13% Decrease Spread over LIBOR(9) 0.36% 1.60% Decrease Utilization rate(10) 50% 97% Increase Withdrawal rate See table footnote (11) below. Mortality rate(12) 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) Includes certain investments where enterprise value is less than the amount needed to support senior and subordinated claims. These investments typically use a range of discount rates (10% to 20%), therefore presenting a range, rather than a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (5) 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 Consolidated Statements of Financial Position. As a result, changes in value associated with these investments are not reflected in the Company’s Consolidated Statements of Operations. (6) 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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (7) 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 a weighted average, is a more meaningful representation of the unobservable inputs used in the valuation. (8) 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. (9) 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. (10) 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. (11) 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 both December 31, 2019 and 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%. (12) 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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Year Ended December 31, 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 $ 24 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 105 $ 0 U.S. states 5 0 0 0 0 (1 ) 0 0 0 4 0 Foreign government 125 0 0 0 0 0 (1 ) 10 (112 ) 22 (2 ) Corporate securities(3) 2,685 (3 ) 1,462 (47 ) 0 (1,137 ) 10 353 (87 ) 3,236 (96 ) Structured securities(4) 1,339 40 952 (67 ) 0 (507 ) (4 ) 755 (1,560 ) 948 0 Assets supporting experience-rated contractholder liabilities: Foreign government 225 0 0 0 0 (5 ) (196 ) 0 0 24 0 Corporate securities(3) 444 4 146 0 0 (189 ) 196 46 (10 ) 637 (6 ) Structured securities(4) 149 0 29 0 0 (35 ) 0 0 (74 ) 69 0 Equity securities 1 1 0 (2 ) 0 0 0 0 0 0 1 All other activity 0 0 8 0 0 (8 ) 0 0 0 0 0 Other assets: Fixed maturities, trading 206 (26 ) 105 (31 ) 0 0 (7 ) 41 (1 ) 287 (27 ) Equity securities 671 42 79 (52 ) 0 (85 ) 1 1 (24 ) 633 34 Other invested assets 263 11 341 0 0 (42 ) (6 ) 0 0 567 (1 ) Short-term investments 89 0 597 0 0 (526 ) (5 ) 0 0 155 0 Cash equivalents 77 0 131 0 0 (77 ) 0 0 0 131 0 Other assets 25 44 44 0 0 0 0 0 0 113 44 Separate account assets(5) 1,534 184 346 (111 ) 0 (144 ) 0 55 (147 ) 1,717 170 Liabilities: Future policy benefits (8,926 ) (2,685 ) 0 0 (1,221 ) 0 1 0 0 (12,831 ) (2,999 ) Policyholders’ account balances(6) (56 ) (933 ) 0 0 (324 ) 0 (3 ) 0 0 (1,316 ) (917 ) Other liabilities 0 (5 ) 0 0 (100 ) 0 0 0 0 (105 ) (5 ) Notes issued by consolidated VIEs (595 ) 15 0 0 (858 ) 638 0 0 0 (800 ) 15 Year Ended December 31, 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 $ (67 ) $ 0 $ 0 $ 86 $ 18 $ (98 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (4 ) 0 0 9 0 (5 ) 0 Other assets: Fixed maturities, trading 0 (27 ) 0 0 1 0 (27 ) 0 Equity securities 0 42 0 0 0 0 34 0 Other invested assets (1 ) 12 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 44 0 0 0 0 44 0 0 Separate account assets(5) 0 0 180 0 4 0 0 170 Liabilities: Future policy benefits (2,685 ) 0 0 0 0 (2,999 ) 0 0 Policyholders’ account balances (933 ) 0 0 0 0 (917 ) 0 0 Other liabilities 0 (5 ) 0 0 0 0 (5 ) 0 Notes issued by consolidated VIEs 15 0 0 0 0 15 0 0 Year Ended December 31, 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 $ 29 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 81 $ 0 U.S. states 5 0 0 0 0 0 0 0 0 5 0 Foreign government 148 (3 ) 5 0 0 0 (9 ) 20 (36 ) 125 0 Corporate securities(3) 2,776 (110 ) 919 (25 ) 0 (991 ) (15 ) 485 (354 ) 2,685 (60 ) Structured securities(4) 6,715 (40 ) 2,808 (612 ) 0 (1,589 ) 1 1,212 (7,156 ) 1,339 0 Assets supporting experience-rated contractholder liabilities: Foreign government 223 7 0 0 0 (5 ) 0 0 0 225 1 Corporate securities(3) 462 (35 ) 147 0 0 (179 ) 0 72 (23 ) 444 (37 ) Structured securities(4) 723 (1 ) 97 0 0 (165 ) 0 33 (538 ) 149 (2 ) Equity securities 4 0 0 (3 ) 0 0 0 0 0 1 0 All other activity 7 (2 ) 91 (3 ) 0 (93 ) 0 0 0 0 0 Other assets: Fixed maturities, trading 156 6 96 (59 ) 0 (3 ) 3 13 (6 ) 206 8 Equity securities 795 (6 ) 66 (100 ) 0 (82 ) 18 5 (25 ) 671 (19 ) Other invested assets 137 4 136 (18 ) 0 0 4 0 0 263 3 Short-term investments 8 0 287 0 0 (201 ) (5 ) 0 0 89 (1 ) Cash equivalents 0 (1 ) 95 (2 ) 0 (15 ) 0 0 0 77 0 Other assets 13 (34 ) 46 0 0 0 0 0 0 25 (34 ) Separate account assets(5) 2,122 (64 ) 587 (36 ) 0 (358 ) 0 287 (1,004 ) 1,534 (52 ) Liabilities: Future policy benefits (8,720 ) 947 0 0 (1,153 ) 0 0 0 0 (8,926 ) 611 Policyholders’ account balances(6) (47 ) 30 0 0 (39 ) 0 0 0 0 (56 ) 30 Other liabilities (3 ) 2 0 0 0 0 1 0 0 0 3 Notes issued by consolidated VIEs (1,196 ) 14 0 0 0 0 587 0 0 (595 ) 14 Year Ended December 31, 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 $ (29 ) $ 0 $ 0 $ (141 ) $ 17 $ (60 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (39 ) 0 0 8 0 (38 ) 0 Other assets: Fixed maturities, trading 0 5 0 0 1 0 8 0 Equity securities 0 (6 ) 0 0 0 0 (19 ) 0 Other invested assets 4 0 0 0 0 2 1 0 Short-term investments 0 0 0 0 0 (1 ) 0 0 Cash equivalents (1 ) 0 0 0 0 0 0 0 Other assets (34 ) 0 0 0 0 (34 ) 0 0 Separate account assets(5) 0 0 (66 ) 0 2 0 0 (52 ) Liabilities: Future policy benefits 947 0 0 0 0 611 0 0 Policyholders’ account balances 30 0 0 0 0 30 0 0 Other liabilities 2 0 0 0 0 3 0 0 Notes issued by consolidated VIEs 14 0 0 0 0 14 0 0 The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and OCI for the year ended December 31, 2017 , as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held as of December 31, 2017 . Year Ended December 31, 2017 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 $ (23 ) $ 0 $ 0 $ (12 ) $ 26 $ (154 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (35 ) 0 0 8 0 (34 ) 0 Other assets: Fixed maturities, trading 0 (2 ) 0 0 1 0 (1 ) 0 Equity securities 2 25 0 17 0 (4 ) 38 0 Other invested assets 1 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 2 0 0 0 Other assets (20 ) 0 0 0 0 (21 ) 0 0 Separate account assets(5) 0 0 81 0 2 0 0 78 Liabilities: Future policy benefits 637 0 0 0 0 372 0 0 Policyholders’ account balances (31 ) 0 0 0 0 (31 ) 0 0 Other liabilities (6 ) 0 0 0 0 (6 ) 0 0 Notes issued by consolidated VIEs (4 ) 0 0 0 0 (4 ) 0 0 __________ (1) “Other,” for the periods ended December 31, 2019 and 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 Consolidated Statements of Financial Position. (6) Issuances and settlements for Policyholders’ account balances are presented net in the rollforward. Prior period amounts have been updated to conform to current period 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. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate. Year Ended December 31, 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 $ 24 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 105 $ 0 U.S. states 5 0 0 0 0 (1 ) 0 0 0 4 0 Foreign government 125 0 0 0 0 0 (1 ) 10 (112 ) 22 (2 ) Corporate securities(3) 2,685 (3 ) 1,462 (47 ) 0 (1,137 ) 10 353 (87 ) 3,236 (96 ) Structured securities(4) 1,339 40 952 (67 ) 0 (507 ) (4 ) 755 (1,560 ) 948 0 Assets supporting experience-rated contractholder liabilities: Foreign government 225 0 0 0 0 (5 ) (196 ) 0 0 24 0 Corporate securities(3) 444 4 146 0 0 (189 ) 196 46 (10 ) 637 (6 ) Structured securities(4) 149 0 29 0 0 (35 ) 0 0 (74 ) 69 0 Equity securities 1 1 0 (2 ) 0 0 0 0 0 0 1 All other activity 0 0 8 0 0 (8 ) 0 0 0 0 0 Other assets: Fixed maturities, trading 206 (26 ) 105 (31 ) 0 0 (7 ) 41 (1 ) 287 (27 ) Equity securities 671 42 79 (52 ) 0 (85 ) 1 1 (24 ) 633 34 Other invested assets 263 11 341 0 0 (42 ) (6 ) 0 0 567 (1 ) Short-term investments 89 0 597 0 0 (526 ) (5 ) 0 0 155 0 Cash equivalents 77 0 131 0 0 (77 ) 0 0 0 131 0 Other assets 25 44 44 0 0 0 0 0 0 113 44 Separate account assets(5) 1,534 184 346 (111 ) 0 (144 ) 0 55 (147 ) 1,717 170 Liabilities: Future policy benefits (8,926 ) (2,685 ) 0 0 (1,221 ) 0 1 0 0 (12,831 ) (2,999 ) Policyholders’ account balances(6) (56 ) (933 ) 0 0 (324 ) 0 (3 ) 0 0 (1,316 ) (917 ) Other liabilities 0 (5 ) 0 0 (100 ) 0 0 0 0 (105 ) (5 ) Notes issued by consolidated VIEs (595 ) 15 0 0 (858 ) 638 0 0 0 (800 ) 15 Year Ended December 31, 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 $ (67 ) $ 0 $ 0 $ 86 $ 18 $ (98 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (4 ) 0 0 9 0 (5 ) 0 Other assets: Fixed maturities, trading 0 (27 ) 0 0 1 0 (27 ) 0 Equity securities 0 42 0 0 0 0 34 0 Other invested assets (1 ) 12 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 44 0 0 0 0 44 0 0 Separate account assets(5) 0 0 180 0 4 0 0 170 Liabilities: Future policy benefits (2,685 ) 0 0 0 0 (2,999 ) 0 0 Policyholders’ account balances (933 ) 0 0 0 0 (917 ) 0 0 Other liabilities 0 (5 ) 0 0 0 0 (5 ) 0 Notes issued by consolidated VIEs 15 0 0 0 0 15 0 0 Year Ended December 31, 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 $ 29 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 81 $ 0 U.S. states 5 0 0 0 0 0 0 0 0 5 0 Foreign government 148 (3 ) 5 0 0 0 (9 ) 20 (36 ) 125 0 Corporate securities(3) 2,776 (110 ) 919 (25 ) 0 (991 ) (15 ) 485 (354 ) 2,685 (60 ) Structured securities(4) 6,715 (40 ) 2,808 (612 ) 0 (1,589 ) 1 1,212 (7,156 ) 1,339 0 Assets supporting experience-rated contractholder liabilities: Foreign government 223 7 0 0 0 (5 ) 0 0 0 225 1 Corporate securities(3) 462 (35 ) 147 0 0 (179 ) 0 72 (23 ) 444 (37 ) Structured securities(4) 723 (1 ) 97 0 0 (165 ) 0 33 (538 ) 149 (2 ) Equity securities 4 0 0 (3 ) 0 0 0 0 0 1 0 All other activity 7 (2 ) 91 (3 ) 0 (93 ) 0 0 0 0 0 Other assets: Fixed maturities, trading 156 6 96 (59 ) 0 (3 ) 3 13 (6 ) 206 8 Equity securities 795 (6 ) 66 (100 ) 0 (82 ) 18 5 (25 ) 671 (19 ) Other invested assets 137 4 136 (18 ) 0 0 4 0 0 263 3 Short-term investments 8 0 287 0 0 (201 ) (5 ) 0 0 89 (1 ) Cash equivalents 0 (1 ) 95 (2 ) 0 (15 ) 0 0 0 77 0 Other assets 13 (34 ) 46 0 0 0 0 0 0 25 (34 ) Separate account assets(5) 2,122 (64 ) 587 (36 ) 0 (358 ) 0 287 (1,004 ) 1,534 (52 ) Liabilities: Future policy benefits (8,720 ) 947 0 0 (1,153 ) 0 0 0 0 (8,926 ) 611 Policyholders’ account balances(6) (47 ) 30 0 0 (39 ) 0 0 0 0 (56 ) 30 Other liabilities (3 ) 2 0 0 0 0 1 0 0 0 3 Notes issued by consolidated VIEs (1,196 ) 14 0 0 0 0 587 0 0 (595 ) 14 Year Ended December 31, 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 $ (29 ) $ 0 $ 0 $ (141 ) $ 17 $ (60 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (39 ) 0 0 8 0 (38 ) 0 Other assets: Fixed maturities, trading 0 5 0 0 1 0 8 0 Equity securities 0 (6 ) 0 0 0 0 (19 ) 0 Other invested assets 4 0 0 0 0 2 1 0 Short-term investments 0 0 0 0 0 (1 ) 0 0 Cash equivalents (1 ) 0 0 0 0 0 0 0 Other assets (34 ) 0 0 0 0 (34 ) 0 0 Separate account assets(5) 0 0 (66 ) 0 2 0 0 (52 ) Liabilities: Future policy benefits 947 0 0 0 0 611 0 0 Policyholders’ account balances 30 0 0 0 0 30 0 0 Other liabilities 2 0 0 0 0 3 0 0 Notes issued by consolidated VIEs 14 0 0 0 0 14 0 0 The following tables summarize the portion of changes in fair values of Level 3 assets and liabilities included in earnings and OCI for the year ended December 31, 2017 , as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held as of December 31, 2017 . Year Ended December 31, 2017 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 $ (23 ) $ 0 $ 0 $ (12 ) $ 26 $ (154 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 (35 ) 0 0 8 0 (34 ) 0 Other assets: Fixed maturities, trading 0 (2 ) 0 0 1 0 (1 ) 0 Equity securities 2 25 0 17 0 (4 ) 38 0 Other invested assets 1 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 2 0 0 0 Other assets (20 ) 0 0 0 0 (21 ) 0 0 Separate account assets(5) 0 0 81 0 2 0 0 78 Liabilities: Future policy benefits 637 0 0 0 0 372 0 0 Policyholders’ account balances (31 ) 0 0 0 0 (31 ) 0 0 Other liabilities (6 ) 0 0 0 0 (6 ) 0 0 Notes issued by consolidated VIEs (4 ) 0 0 0 0 (4 ) 0 0 __________ (1) “Other,” for the periods ended December 31, 2019 and 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 Consolidated Statements of Financial Position. (6) Issuances and settlements for Policyholders’ account balances are presented net in the rollforward. Prior period amounts have been updated to conform to current period 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 risks.These tables 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 December 31, 2019 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative assets: Interest Rate $ 4 $ 11,238 $ 1 $ $ 11,243 Currency 0 230 0 230 Credit 0 21 0 21 Currency/Interest Rate 0 2,207 0 2,207 Equity 2 683 0 685 Commodity 0 0 0 0 Netting(1) (13,519 ) (13,519 ) Total derivative assets $ 6 $ 14,379 $ 1 $ (13,519 ) $ 867 Derivative liabilities: Interest Rate $ 38 $ 5,176 $ 0 $ $ 5,214 Currency 0 271 0 271 Credit 0 0 0 0 Currency/Interest Rate 0 647 0 647 Equity 3 1,401 0 1,404 Commodity 0 0 0 0 Netting(1) (6,705 ) (6,705 ) Total derivative liabilities $ 41 $ 7,495 $ 0 $ (6,705 ) $ 831 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 Commodity 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 Commodity 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 | 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. Year Ended December 31, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) (4) Purchases Sales Issuances Settlements Other(1) Transfers into Transfers out of Level 3 (2) Fair Value, end of period Unrealized gains (losses) for assets still held (4) (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 (2 ) Year Ended December 31, 2018 Fair Value, beginning of period Total realized and unrealized gains (losses) (4) Purchases Sales Issuances Settlements Other(1) Transfers into Transfers out of Level 3 (2) Fair Value, end of period Unrealized gains (losses) for assets still held (4) (in millions) Net Derivative - Equity $ 10 $ 1 $ 0 $ 0 $ 0 $ 0 $ (11 ) $ 0 $ 0 $ 0 $ 0 Net Derivative - Interest Rate (3 ) 5 0 0 0 0 0 0 0 2 5 Year Ended December 31, 2017 Fair Value, beginning of period Total realized and unrealized gains (losses) (4) 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 (4) (in millions) Net Derivative - Equity $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 10 $ 0 $ 0 $ 10 $ 0 Net Derivative - Interest Rate 4 (7 ) 0 0 0 0 0 0 0 (3 ) (7 ) __________ (1) Represents conversion of warrants to equity shares. (2) Transfers into or out of Level 3 are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such positions still held at the end of the quarter. (3) Related to warrants received in restructuring a certain asset that resulted in reclassification of reporting category. (4) 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.” |
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). Year Ended December 31, 2019 2018 2017 (in millions) Realized investment gains (losses) net: Commercial mortgage loans(1) $ 2 $ (12 ) $ (2 ) Mortgage servicing rights(2) $ 11 $ 10 $ 7 Year Ended December 31, 2019 2018 (in millions) Carrying value after measurement as of period end Commercial mortgage loans(1): $ 15 $ 47 Mortgage servicing rights(2): $ 87 $ 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 plus 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. Year Ended December 31, 2019 2018 2017 (in millions) Liabilities: Notes issued by consolidated VIEs: Changes in fair value $ (15 ) $ (14 ) $ 4 Year Ended December 31, 2019 2018 2017 (in millions) Commercial mortgage and other loans: Interest income $ 20 $ 18 $ 13 Notes issued by consolidated VIEs: Interest expense $ 45 $ 36 $ 75 Year Ended December 31, 2019 2018 (in millions) Commercial mortgage and other loans(1): Fair value as of period end $ 228 $ 763 Aggregate contractual principal as of period end $ 224 $ 754 Other assets: Fair value as of period end 10 10 Notes issued by consolidated VIEs: Fair value as of period end $ 800 $ 595 Aggregate contractual principal as of period end $ 857 $ 632 __________ (1) As of December 31, 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 Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. December 31, 2019 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in millions) Assets: Fixed maturities, held-to-maturity(2) $ 0 $ 2,217 $ 85 $ 2,302 $ 1,933 Assets supporting experience-rated contractholder liabilities 16 0 0 16 16 Commercial mortgage and other loans 0 107 65,558 65,665 63,331 Policy loans 0 0 12,096 12,096 12,096 Other invested assets 0 36 0 36 36 Short-term investments 1,492 39 0 1,531 1,531 Cash and cash equivalents 6,278 1,043 0 7,321 7,321 Accrued investment income 0 3,330 0 3,330 3,330 Other assets 147 2,526 643 3,316 3,315 Total assets $ 7,933 $ 9,298 $ 78,382 $ 95,613 $ 92,909 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 32,940 $ 69,216 $ 102,156 $ 101,241 Securities sold under agreements to repurchase 0 9,681 0 9,681 9,681 Cash collateral for loaned securities 0 4,213 0 4,213 4,213 Short-term debt 0 1,748 205 1,953 1,933 Long-term debt(3) 1,950 18,188 1,186 21,324 18,646 Notes issued by consolidated VIEs 0 0 474 474 474 Other liabilities 0 6,403 579 6,982 6,982 Separate account liabilities—investment contracts 0 77,134 24,407 101,541 101,541 Total liabilities $ 1,950 $ 150,307 $ 96,067 $ 248,324 $ 244,711 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 contractholder 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 Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. (2) Excludes notes with fair value of $5,401 million (carrying amount of $4,998 million ) and $4,879 million (carrying amount of $4,879 million ) as of December 31, 2019 and 2018 , respectively, which have been offset with the associated payables under a netting agreement. (3) Includes notes with fair value of $10,158 million (carrying amount of $9,749 million ) and $9,095 million (carrying amount of $9,095 million ) as of December 31, 2019 and 2018 , respectively, which have been offset with the associated receivables under a netting agreement. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 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) December 31, December 31, 2019 2018 2019 2018 (in millions) Fixed maturities, available-for-sale $ 104 $ 73 $ 285 $ 282 Fixed maturities, held-to-maturity 83 95 839 831 Fixed maturities, trading 1,112 1,076 0 0 Assets supporting experience-rated contractholder liabilities 0 0 4 8 Equity securities 47 41 0 0 Commercial mortgage and other loans 883 730 0 0 Other invested assets 2,199 1,526 89 77 Cash and cash equivalents 166 131 0 0 Accrued investment income 4 5 4 4 Other assets 450 463 689 721 Total assets of consolidated VIEs $ 5,048 $ 4,140 $ 1,910 $ 1,923 Other liabilities $ 304 $ 295 $ 13 $ 17 Notes issued by consolidated VIEs(2) 1,274 955 0 0 Total liabilities of consolidated VIEs $ 1,578 $ 1,250 $ 13 $ 17 __________ (1) Total assets of consolidated VIEs reflect $2,668 million and $2,013 million as of December 31, 2019 and 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 December 31, 2019, the maturities of these obligations were between 4 and 9 years . |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule Of Deferred Acquisition Costs | The balances of and changes in DAC as of and for the years ended December 31, are as follows: 2019 2018 2017 (in millions) Balance, beginning of period $ 20,058 $ 18,992 $ 17,661 Capitalization of commissions, sales and issue expenses 2,966 2,870 2,820 Amortization—Impact of assumption and experience unlocking and true-ups (164 ) (217 ) 247 Amortization—All other (2,168 ) (2,056 ) (1,827 ) Change in unrealized investment gains and losses (713 ) 519 (190 ) Foreign currency translation (8 ) (32 ) 281 Other(1) (59 ) (18 ) 0 Balance, end of period $ 19,912 $ 20,058 $ 18,992 __________ (1) “Other” for 2019 primarily represents the impact related to the sale of the Company’s Pramerica of Italy subsidiary of $(46) million and DAC ceded to a third-party reinsurer of $(14) million . “Other” for 2018 represents the impact related to the sale of the Company’s Pramerica of Poland subsidiary of $(38) million and the impact of the elimination of Gibraltar Life’s one-month reporting lag of $20 million . |
Value of Business Acquired (Tab
Value of Business Acquired (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Present Value of Future Insurance Profits [Abstract] | |
Schedule of Present Value of Future Insurance Profits | The balances of and changes in VOBA as of and for the years ended December 31, are as follows: 2019 2018 2017 (in millions) Balance, beginning of period $ 1,850 $ 1,591 $ 2,314 Amortization—Impact of assumption and experience unlocking and true-ups (139 ) 0 (56 ) Amortization—All other (235 ) (276 ) (311 ) Change in unrealized investment gains and losses (478 ) 455 (456 ) Interest 64 69 75 Foreign currency translation 10 23 25 Other 38 (12 ) 0 Balance, end of period $ 1,110 $ 1,850 $ 1,591 The following table provides VOBA balances for the year ended December 31, 2019 . VOBA Balance (in millions) CIGNA $ 226 Prudential Annuities Holding Co. $ 32 Gibraltar Life $ 848 Gibraltar BSN Life Berhad $ 4 Aoba Life $ 0 The Hartford Life Business $ 0 |
Expected Amortization Expense of Ending Value of Future Insurance Profits | The following table provides estimated future amortization, net of interest, for the periods indicated. 2020 2021 2022 2023 2024 (in millions) Estimated future VOBA amortization $ 118 $ 110 $ 100 $ 88 $ 74 The following table provides estimated future amortization for the periods indicated. 2020 2021 2022 2023 2024 (in millions) Estimated future amortization expense of other intangibles $ 70 $ 65 $ 57 $ 41 $ 34 |
Investments in Operating Join_2
Investments in Operating Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 9. Changes between periods in the tables below reflect changes in the activities within the operating joint ventures and LPs/LLCs, as well as changes in the Company’s level of investment in such entities. December 31, 2019 2018 (in millions) STATEMENTS OF FINANCIAL POSITION Total assets(1) $ 313,828 $ 78,546 Total liabilities(2) $ 19,274 $ 8,293 Partners’ capital 294,554 70,253 Total liabilities and partners’ capital $ 313,828 $ 78,546 Total liabilities and partners’ capital included above $ 7,438 $ 6,265 Equity in LP/LLC interests not included above 814 790 Carrying value $ 8,252 $ 7,055 __________ (1) Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets. (2) Amount represents gross liabilities of each fund where the Company has a significant investment. These liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities. Years Ended December 31, 2019 2018 2017 (in millions) STATEMENTS OF OPERATIONS Total revenue(1) $ 11,430 $ 6,264 $ 6,392 Total expenses(2) (5,800 ) (3,222 ) (2,300 ) Net earnings (losses) $ 5,630 $ 3,042 $ 4,092 Equity in net earnings (losses) included above $ 525 $ 233 $ 409 Equity in net earnings (losses) of LP/LLC interests not included above 11 14 123 Total equity in net earnings (losses) $ 536 $ 247 $ 532 __________ (1) Amount represents gross revenue of each fund where the Company has a significant investment. This revenue consists of income from investments in real estate, investments in securities and other income. (2) Amount represents gross expenses of each fund where the Company has a significant investment. These expenses consist primarily of interest expense, investment management fees, salary expenses and other expenses. The following table sets forth information related to the Company’s investments in operating joint ventures as of and for the years ended December 31: 2019 2018 2017 (in millions) Investment in operating joint ventures $ 1,309 $ 1,329 $ 1,483 Dividends received from operating joint ventures $ 70 $ 93 $ 63 After-tax equity in earnings of operating joint ventures $ 100 $ 76 $ 49 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying value of goodwill by reportable segment are as follows: PGIM Retirement Assurance IQ International Businesses Other Total (in millions) Goodwill balance, December 31, 2016: $ 230 $ 444 $ 0 $ 159 $ 0 $ 833 Effect of foreign currency translation 5 0 0 5 0 10 Goodwill balance, December 31, 2017: 235 444 0 164 0 843 Acquisitions 0 11 0 0 11 22 Effect of foreign currency translation (2 ) 0 0 0 0 (2 ) Goodwill balance, December 31, 2018: 233 455 0 164 11 863 Acquisitions 22 0 2,128 0 0 2,150 Effect of foreign currency translation (1 ) 0 0 1 0 0 Goodwill balance, December 31, 2019: $ 254 $ 455 $ 2,128 $ 165 $ 11 $ 3,013 |
Schedule of Finite-Lived Intangible Assets | Other intangible balances at December 31, are as follows: 2019 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Subject to amortization: Mortgage servicing rights $ 745 $ (468 ) $ 277 $ 689 $ (423 ) $ 266 Customer relationships 244 (153 ) 91 173 (120 ) 53 Software and other 201 (38 ) 163 114 (87 ) 27 Not subject to amortization 69 N/A 69 2 N/A 2 Total $ 600 $ 348 |
Schedule of Indefinite-Lived Intangible Assets | Other intangible balances at December 31, are as follows: 2019 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount (in millions) Subject to amortization: Mortgage servicing rights $ 745 $ (468 ) $ 277 $ 689 $ (423 ) $ 266 Customer relationships 244 (153 ) 91 173 (120 ) 53 Software and other 201 (38 ) 163 114 (87 ) 27 Not subject to amortization 69 N/A 69 2 N/A 2 Total $ 600 $ 348 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table provides estimated future amortization, net of interest, for the periods indicated. 2020 2021 2022 2023 2024 (in millions) Estimated future VOBA amortization $ 118 $ 110 $ 100 $ 88 $ 74 The following table provides estimated future amortization for the periods indicated. 2020 2021 2022 2023 2024 (in millions) Estimated future amortization expense of other intangibles $ 70 $ 65 $ 57 $ 41 $ 34 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee Supplemental Balance Sheet Information Related to Operating Leases | 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. December 31, 2019 ($ in millions) Operating Leases: Right-of-use assets $ 554 Lease liabilities $ 594 Weighted average remaining lease term 6 years Weighted average discount rate 2.46 % |
Lessee Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities are as follows: December 31, 2019 (in millions) 2020 $ 152 2021 143 2022 104 2023 74 2024 65 Thereafter 111 Total lease payments 649 Less imputed interest (55 ) Total $ 594 |
Future Minimum Lease Payments | Future minimum lease payments under non-cancelable operating and capital leases along with associated sub-lease income prior to the adoption of ASU 2016-02, Leases (Topic 842) are as follows: December 31, 2018 Operating and Capital Leases(1) Sub-lease Income (in millions) 2019 $ 168 $ 1 2020 133 1 2021 106 1 2022 82 0 2023 58 0 2024 and thereafter 138 0 Total $ 685 $ 3 __________ (1) Future minimum lease payments under capital leases were $26 million as of December 31, 2018. |
Policyholders' Liabilities (Tab
Policyholders' Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Schedule of Liability for Future Policy Benefits, by Product Segment | Future policy benefits at December 31 for the years indicated are as follows: 2019 2018 (in millions) Life insurance $ 191,654 $ 180,749 Individual and group annuities and supplementary contracts 75,940 72,624 Other contract liabilities 23,052 17,665 Subtotal future policy benefits excluding unpaid claims and claim settlement expenses 290,646 271,038 Unpaid claims and claim settlement expenses 2,881 2,808 Total future policy benefits $ 293,527 $ 273,846 Policyholders’ account balances at December 31 for the years indicated are as follows: 2019 2018 (in millions) Individual annuities $ 44,391 $ 43,309 Group annuities 27,843 27,618 Guaranteed investment contracts and guaranteed interest accounts 13,759 13,558 Funding agreements 4,119 3,785 Interest-sensitive life contracts 40,364 39,228 Dividend accumulation and other deposit type funds 21,634 22,840 Total policyholders’ account balances $ 152,110 $ 150,338 |
Certain Long-Duration Contrac_2
Certain Long-Duration Contracts with Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Long-Duration Contracts, Assumptions Supporting Guarantee Obligations [Abstract] | |
Schedule of Net Amount of Risk by Product and Guarantee | As of December 31, 2019 and 2018 , the Company had the following guarantees associated with these contracts, by product and guarantee type: December 31, 2019 December 31, 2018 In the Event of Death At Annuitization / Accumulation(1) In the Event of Death At Annuitization / Accumulation(1) ($ in millions) Annuity Contracts Return of net deposits Account value $ 130,893 $ 16 $ 115,988 $ 21 Net amount at risk $ 244 $ 0 $ 922 $ 0 Average attained age of contractholders 67 years 75 years 66 years 72 years Minimum return or contract value Account value $ 32,609 $ 147,511 $ 30,631 $ 131,261 Net amount at risk $ 2,626 $ 4,578 $ 5,066 $ 8,235 Average attained age of contractholders 69 years 68 years 68 years 67 years Average period remaining until earliest expected annuitization N/A 2 months, 2 days N/A 1 month, 6 days __________ (1) Includes income and withdrawal benefits. December 31, 2019 2018 In the Event of Death ($ in millions) Variable Life, Variable Universal Life and Universal Life Contracts Separate account value $ 9,983 $ 8,752 General account value $ 18,225 $ 16,903 Net amount at risk $ 245,929 $ 246,644 Average attained age of contractholders 55 years 55 years |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | Account balances of variable annuity contracts with guarantees were invested in separate account investment options as follows: December 31, 2019 2018 (in millions) Equity funds $ 93,010 $ 78,626 Bond funds 60,074 57,477 Balanced funds 1,592 1,370 Money market funds 3,530 3,122 Total $ 158,206 $ 140,595 |
Schedule of Minimum Guaranteed Benefit Liabilities | The table below summarizes the changes in general account liabilities for guarantees. The liabilities for GMDB and GMIB are included in “Future policy benefits” and the related changes in the liabilities are included in “Policyholders’ benefits.” GMAB, GMWB and GMIWB are accounted for as embedded derivatives and are recorded at fair value within “Future policy benefits.” Changes in the fair value of these derivatives, including changes in the Company’s own risk of non-performance, along with any fees attributed or payments made relating to the derivative, are recorded in “Realized investment gains (losses), net.” See Note 6 for additional information regarding the methodology used in determining the fair value of these embedded derivatives. The Company maintains a portfolio of derivative investments that serve as a partial hedge of the risks associated with these products, for which the changes in fair value are also recorded in “Realized investment gains (losses), net.” This portfolio of derivative investments does not qualify for hedge accounting treatment under U.S. GAAP. Additionally, the Company externally reinsures the guaranteed benefit features associated with certain contracts. See Note 14 for further information regarding the external reinsurance arrangement. GMDB GMIB GMAB/GMWB/GMIWB Variable Life, Variable Universal Life and Universal Life Annuity Annuity Annuity (in millions) Balance at December 31, 2016 $ 4,143 $ 721 $ 474 $ 8,238 Incurred guarantee benefits(1) 685 37 (20 ) 479 Paid guarantee benefits (15 ) (74 ) (15 ) 0 Change in unrealized investment gains and losses 290 13 (30 ) 0 Other(2) 7 0 10 4 Balance at December 31, 2017 5,110 697 419 8,721 Incurred guarantee benefits(1) 791 125 (14 ) 206 Paid guarantee benefits (77 ) (88 ) (5 ) 0 Change in unrealized investment gains and losses (406 ) (20 ) (20 ) 0 Other(2) 0 (1 ) (2 ) 0 Balance at December 31, 2018 5,418 713 378 8,927 Incurred guarantee benefits(1) 1,492 82 (8 ) 3,905 Paid guarantee benefits (111 ) (69 ) (4 ) 0 Change in unrealized investment gains and losses 805 27 (15 ) 0 Other(2) (2 ) 0 4 (1 ) Balance at December 31, 2019 $ 7,602 $ 753 $ 355 $ 12,831 __________ (1) Incurred guarantee benefits include the portion of assessments established as additions to reserves as well as changes in estimates affecting the reserves. Also includes changes in the fair value of features considered to be derivatives. (2) Other primarily represents foreign currency translation. |
Deferred Sales Inducements | Changes in DSI, reported as “Interest credited to policyholders’ account balances,” are as follows: Sales Inducements (in millions) Balance at December 31, 2016 $ 1,127 Capitalization 2 Amortization—Impact of assumption and experience unlocking and true-ups 157 Amortization—All other (105 ) Change in unrealized investment gains and losses (13 ) Balance at December 31, 2017 1,168 Capitalization 3 Amortization—Impact of assumption and experience unlocking and true-ups (6 ) Amortization—All other (166 ) Change in unrealized investment gains and losses 25 Balance at December 31, 2018 1,024 Capitalization 1 Amortization—Impact of assumption and experience unlocking and true-ups 108 Amortization—All other (163 ) Change in unrealized investment gains and losses (35 ) Balance at December 31, 2019 $ 935 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Information | Reinsurance amounts included in the Consolidated Statements of Operations for premiums, policy charges and fee income, and policyholders’ benefits for the years ended December 31, are as follows: 2019 2018 2017 (in millions) Direct premiums $ 33,260 $ 35,048 $ 31,797 Reinsurance assumed 3,022 2,574 2,105 Reinsurance ceded (2,080 ) (1,843 ) (1,811 ) Premiums $ 34,202 $ 35,779 $ 32,091 Direct policy charges and fee income $ 5,252 $ 5,245 $ 4,541 Reinsurance assumed 1,181 1,189 1,176 Reinsurance ceded (455 ) (432 ) (414 ) Policy charges and fee income $ 5,978 $ 6,002 $ 5,303 Direct policyholders’ benefits $ 35,601 $ 38,079 $ 33,261 Reinsurance assumed 4,304 3,659 3,230 Reinsurance ceded (3,085 ) (2,334 ) (2,697 ) Policyholders’ benefits $ 36,820 $ 39,404 $ 33,794 |
Reinsurance Recoverables | Reinsurance recoverables at December 31, are as follows: 2019 2018 (in millions) Individual and group annuities(1) $ 688 $ 499 Life insurance(2) 5,535 4,335 Other reinsurance 403 162 Total reinsurance recoverables $ 6,626 $ 4,996 __________ (1) Primarily represents reinsurance recoverables established under the reinsurance arrangements associated with the acquisition of the retirement business of CIGNA. The Company has recorded reinsurance recoverables related to the acquisition of the retirement business of CIGNA of $553 million and $481 million at December 31, 2019 and 2018 , respectively. Also included is $95 million and $15 million of reinsurance recoverables at December 31, 2019 and 2018 , respectively, established under the reinsurance agreement with Union Hamilton related to the ceding of certain embedded derivative liabilities associated with the Company’s guaranteed benefits. (2) Includes $2,105 million and $2,035 million of reinsurance recoverables established at December 31, 2019 and 2018 , respectively, under the reinsurance arrangements associated with the acquisition of the Hartford Life Business. The Company has also recorded reinsurance payables related to the Hartford Life Business acquisition of $1,290 million and $1,259 million at December 31, 2019 and 2018 |
Closed Block (Tables)
Closed Block (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Liabilities and Assets | Closed Block liabilities and assets designated to the Closed Block at December 31, as well as maximum future earnings to be recognized from these liabilities and assets, are as follows: 2019 2018 (in millions) Closed Block liabilities Future policy benefits $ 47,613 $ 48,282 Policyholders’ dividends payable 717 812 Policyholders’ dividend obligation 6,149 3,150 Policyholders’ account balances 4,973 5,061 Other Closed Block liabilities 4,049 3,955 Total Closed Block liabilities 63,501 61,260 Closed Block assets Fixed maturities, available-for-sale, at fair value 41,146 38,538 Fixed maturities, trading, at fair value 256 195 Equity securities, at fair value 2,245 1,784 Commercial mortgage and other loans 8,629 8,782 Policy loans 4,264 4,410 Other invested assets 3,333 3,316 Short-term investments 227 477 Total investments 60,100 57,502 Cash and cash equivalents 191 467 Accrued investment income 456 466 Other Closed Block assets 93 105 Total Closed Block assets 60,840 58,540 Excess of reported Closed Block liabilities over Closed Block assets 2,661 2,720 Portion of above representing accumulated other comprehensive income (loss): Net unrealized investment gains (losses) 3,280 857 Allocated to policyholder dividend obligation (3,332 ) (899 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,609 $ 2,678 |
Schedule of Closed Block Dividend Obligation | Information regarding the policyholder dividend obligation is as follows: 2019 2018 (in millions) Balance, January 1 $ 3,150 $ 5,446 Cumulative effect adjustment from the adoption of ASU 2016-01(1) 0 157 Impact from earnings allocable to policyholder dividend obligation 564 (508 ) Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 2,435 (1,945 ) Balance, December 31 $ 6,149 $ 3,150 |
Schedule of Closed Block Revenues Benefits Expenses | Closed Block revenues and benefits and expenses for the years ended December 31, are as follows: 2019 2018 2017 (in millions) Revenues Premiums $ 2,207 $ 2,301 $ 2,524 Net investment income 2,332 2,298 2,669 Realized investment gains (losses), net 521 130 534 Other income (loss) 589 (39 ) 113 Total Closed Block revenues 5,649 4,690 5,840 Benefits and Expenses Policyholders’ benefits 2,906 2,972 3,220 Interest credited to policyholders’ account balances 130 132 133 Dividends to policyholders 2,187 1,236 2,007 General and administrative expenses 351 364 382 Total Closed Block benefits and expenses 5,574 4,704 5,742 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes 75 (14 ) 98 Income tax expense (benefit) 10 (78 ) 43 Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 65 $ 64 $ 55 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Schedule of Components of Income Tax Expense (Benefit) | The following schedule discloses significant components of income tax expense (benefit) for each year presented: Year Ended December 31, 2019 2018 2017 (in millions) Current tax expense (benefit): U.S. $ 86 $ (346 ) $ (47 ) State and local 2 7 11 Foreign 879 681 594 Total current tax expense (benefit) 967 342 558 Deferred tax expense (benefit): U.S.(1) 57 80 (2,552 ) State and local (1 ) 1 0 Foreign(1) (76 ) 399 556 Total deferred tax expense (benefit) (20 ) 480 (1,996 ) Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures 947 822 (1,438 ) Income tax expense (benefit) on equity in earnings of operating joint ventures 43 31 33 Income tax expense (benefit) on discontinued operations 0 0 0 Income tax expense (benefit) reported in equity related to: Other comprehensive income (loss) 3,811 (1,812 ) 784 Stock-based compensation programs 0 0 (2 ) Total income taxes $ 4,801 $ (959 ) $ (623 ) | |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes expected at the U.S. federal statutory income tax rate of 21% applicable for 2019 and 2018 and 35% applicable for 2017, and the reported income tax expense (benefit) are summarized as follows: Year Ended December 31, 2019 2018 2017 (in millions) Expected federal income tax expense (benefit) $ 1,068 $ 1,015 $ 2,270 Non-taxable investment income (270 ) (246 ) (369 ) Foreign taxes at other than U.S. rate 225 349 (249 ) Low-income housing and other tax credits (118 ) (112 ) (126 ) Changes in tax law 0 (321 ) (2,858 ) Other 42 137 (106 ) Reported income tax expense (benefit) $ 947 $ 822 $ (1,438 ) Effective tax rate 18.6 % 17.0 % (22.2 )% | |
U.S. Tax Cuts and Jobs Act of 2017 | The financial statement impact related to the adoption of Tax Act of 2017 for the twelve months ended December 31, 2017 and twelve months ended December 31, 2018 was as follows: Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2018 Total (in millions) Deferred tax revaluation from tax law change $ (1,592 ) $ 7 $ (1,585 ) Adoption of modified territorial system (1,785 ) (24 ) (1,809 ) Deemed repatriation 497 (136 ) 361 Total provision for income tax expense (benefit) $ (2,880 ) $ (153 ) $ (3,033 ) | |
Schedule of Deferred Tax Assets and Liabilities | As of December 31, 2019 2018 (in millions) Deferred tax assets: Insurance reserves $ 730 $ 0 Policyholders’ dividends 1,365 733 Net operating and capital loss carryforwards 189 155 Refundable AMT credits 0 205 Employee benefits 973 693 Investments 0 1,002 Other 113 39 Deferred tax assets before valuation allowance 3,370 2,827 Valuation allowance (136 ) (117 ) Deferred tax assets after valuation allowance 3,234 2,710 Deferred tax liabilities: Insurance reserves 0 719 Net unrealized investment gains 11,109 5,961 Deferred policy acquisition costs 3,799 3,888 Investments 138 0 Value of business acquired 262 461 Deferred tax liabilities 15,308 11,029 Net deferred tax liability $ (12,074 ) $ (8,319 ) | |
Valuation Allowance on Deferred Tax Assets | et | |
Operating And Capital Loss Carryforwards | as follows: Federal State Foreign Operations Total (in millions) Balance at January 1, 2017 $ 0 $ 138 $ 25 $ 163 Charged to costs and expenses 0 63 3 66 Other adjustments 0 (5 ) (10 ) (15 ) Balance at December 31, 2017 0 196 18 214 Charged to costs and expenses 0 24 (6 ) 18 Other adjustments 0 (114 ) (1 ) (115 ) Balance at December 31, 2018 0 106 11 117 Charged to costs and expenses 3 34 (5 ) 32 Other adjustments 0 (13 ) 0 (13 ) Balance at December 31, 2019 $ 3 $ 127 $ 6 $ 136 The following table sets forth the amount and expiration dates of federal, state and foreign operating losses, capital loss and foreign tax credit carryforwards for tax purposes, as of the periods indicated: As of December 31, 2019 2018 (in millions) Federal net operating and capital loss carryforwards(1) $ 33 $ 0 State net operating and capital loss carryforwards(2) $ 2,005 $ 2,152 Foreign net operating and capital loss carryforwards(3) $ 203 $ 99 Federal foreign tax credit carryforwards(4) $ 4 $ 0 __________ (1) Expires in 2024. (2) Expires between 2020 and 2039. (3) $124 million expires between 2021 and 2035 and $79 million | |
Undistributed Earnings Of Foreign Subsidiaries Assuming Permanent Reinvestment | es” during 2018. The Company made no changes with respect to its repatriation assumptions in 2019. The following table sets forth the undistributed earnings of foreign subsidiaries, where the Company assumes indefinite reinvestment of such earnings and for which, in 2019, 2018, and 2017, U.S. deferred taxes have not been provided, and for which, in 2017 and 2018, foreign deferred withholding taxes have not been provided. The net tax liability that may arise if the 2019 earnings were remitted can range from $0 to $235 million which includes any foreign exchange impacts. At December 31, 2019 2018 2017 (in millions) Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment for U.S. tax purposes)(1) N/A N/A N/A Undistributed earnings of foreign subsidiaries (assuming indefinite reinvestment only for Withholding or other non-U.S. Taxes) $ 2,764 $ 2,475 $ 2,603 __________ (1) | |
Unrecognized Tax Benefits Reconciliation | or income taxes. | |
Amounts Recognized In Consolidated Financial Statements For Tax Related Interest And Penalties | expense (benefit). The amounts recognized in the consolidated financial statements for tax-related interest and penalties for the years ended December 31 are | |
Open Tax Years By Major Tax Jurisdictions | follows: 2019 2018 2017 (in millions) Interest and penalties recognized in the Consolidated Statements of Operations $ 1 $ 1 $ (3 ) 2019 2018 (in millions) Interest and penalties recognized in liabilities in the Consolidated Statements of Financial Position $ 2 $ 1 |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Debt | The table below presents the Company’s short-term debt at December 31, for the years indicated as follows: 2019 2018 ($ in millions) Commercial paper: Prudential Financial $ 25 $ 15 Prudential Funding, LLC 524 727 Subtotal commercial paper 549 742 Mortgage Debt(1) 0 53 Current portion of long-term debt: Senior Notes 1,179 1,100 Mortgage Debt 192 57 Surplus Notes 0 499 Subtotal Current portion of long-term debt 1,371 1,656 Other(2) 13 0 Total short-term debt(3) $ 1,933 $ 2,451 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 224 $ 301 Daily average commercial paper outstanding for the quarter ended $ 1,702 $ 1,554 Weighted average maturity of outstanding commercial paper, in days 6 12 Weighted average interest rate on outstanding commercial paper(4) 1.61 % 2.41 % __________ (1) Includes $53 million of mortgage debt denominated in foreign currency at December 31, 2018. (2) Includes $13 million drawn on a revolving line of credit held by a subsidiary at December 31, 2019. (3) Includes Prudential Financial debt of $1,204 million and $1,115 million at December 31, 2019 and 2018 , respectively. (4) Prior period interest rate has been updated to conform to current period presentation. |
Schedule of Line of Credit Facilities | As of December 31, 2019 , the Company maintained syndicated, unsecured committed credit facilities as described below. Borrower Original Term Expiration Date Capacity Amount Outstanding (in millions) Prudential Financial and Prudential Funding 5 years Jul 2022 $ 4,000 $ 0 Prudential Holdings of Japan, Inc. 5 years Sep 2024 ¥ 100,000 ¥ 0 |
Schedule of Long-term Debt Instruments | Maturity Dates Rate(1) December 31, 2019 2018 ($ in millions) Fixed-rate notes: Surplus notes 2025 8.30% $ 342 $ 341 Surplus notes subject to set-off arrangements 2021-2038 3.52%-5.26% 7,484 6,895 Senior notes 2021-2051 1.35%-11.31% 10,084 8,774 Mortgage debt(2) 2021-2027 2.95%-3.85% 104 237 Floating-rate notes: Line of Credit 2022 3.10%-3.75% 300 0 Surplus notes subject to set-off arrangements 2024-2037 3.48%-4.20% 2,265 2,200 Senior notes - 0 29 Mortgage debt(3) 2021-2024 2.36%-4.67% 241 429 Junior subordinated notes(4) 2042-2058 1.55%-5.88% 7,575 7,568 Subtotal 28,395 26,473 Less: assets under set-off arrangements(5) 9,749 9,095 Total long-term debt(6) $ 18,646 $ 17,378 __________ (1) Ranges of interest rates are for the year ended December 31, 2019 . (2) Includes $43 million and $ 101 million of debt denominated in foreign currency at December 31, 2019 and 2018 , respectively. (3) Includes $53 million and $ 206 million of debt denominated in foreign currency at December 31, 2019 and 2018 , respectively. (4) Includes Prudential Financial debt of $7,518 million and subsidiary debt of $57 million denominated in foreign currency at December 31, 2019. (5) Assets under set-off arrangements represent a reduction in the amount of surplus notes included in long-term debt, resulting from an arrangement where valid rights of set-off exist and it is the intent of both parties to settle on a net basis under legally enforceable arrangements. These assets include available-for-sale securities that are reported at fair value. (6) Includes Prudential Financial debt of $17,430 million and $16,141 million at December 31, 2019 and 2018 |
Schedule of Maturities of Long-term Debt | The following table presents the contractual maturities of the Company’s long-term debt as of December 31, 2019 : Calendar Year 2021 2022 2023 2024 2025 and thereafter Total (in millions) Long-term debt $ 491 $ 436 $ 245 $ 725 $ 16,750 $ 18,646 |
Junior Subordinated Notes | notes outstanding, along with their key terms, are as follows: Issue Date Principal Amount Initial Interest Rate Investor Type Optional Redemption Date Interest Rate Subsequent to Optional Redemption Date Maturity Date ($ in millions) Aug-12 $ 1,000 5.88 % Institutional 9/15/2022 LIBOR + 4.18% 9/15/2042 Nov-12 $ 1,500 5.63 % Institutional 6/15/2023 LIBOR + 3.92% 6/15/2043 Dec-12 $ 575 5.75 % Retail 12/4/2017 5.75% 12/15/2052 Mar-13 $ 710 5.70 % Retail 3/15/2018 5.70% 3/15/2053 Mar-13 $ 500 5.20 % Institutional 3/15/2024 LIBOR + 3.04% 3/15/2044 May-15 $ 1,000 5.38 % Institutional 5/15/2025 LIBOR + 3.03% 3/15/2045 Sep-17 $ 750 4.50 % Institutional 9/15/2027 LIBOR + 2.38% 9/15/2047 Aug-18 $ 565 5.63 % Retail 8/13/2023 5.63% 8/13/2058 Sep-18 $ 1,000 5.70 % Institutional 9/15/2028 LIBOR + 2.67% 9/15/2048 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Status of Employee Benefit Plans | The status of these plans as of December 31, 2019 and 2018 is summarized below: Pension Benefits Other Postretirement Benefits 2019 2018 2019 2018 (in millions) Change in benefit obligation Benefit obligation at the beginning of period $ (13,185 ) $ (13,838 ) $ (1,876 ) $ (1,996 ) Service cost (291 ) (314 ) (22 ) (23 ) Interest cost (489 ) (448 ) (78 ) (70 ) Plan participants’ contributions 0 0 (21 ) (25 ) Medicare Part D subsidy receipts 0 0 (7 ) (9 ) Amendments 0 (3 ) (27 ) (32 ) Actuarial gains (losses), net (1,499 ) 611 (124 ) 96 Settlements 45 27 0 0 Special termination benefits (26 ) (1 ) (1 ) 0 Benefits paid 831 797 165 182 Foreign currency changes and other (23 ) (16 ) (2 ) 1 Benefit obligation at end of period $ (14,637 ) $ (13,185 ) $ (1,993 ) $ (1,876 ) Change in plan assets Fair value of plan assets at beginning of period $ 12,807 $ 13,655 $ 1,432 $ 1,615 Actual return on plan assets 1,681 (224 ) 264 (70 ) Employer contributions 280 219 5 44 Plan participants’ contributions 0 0 21 25 Disbursement for settlements (45 ) (27 ) 0 0 Benefits paid (831 ) (797 ) (165 ) (182 ) Foreign currency changes and other 14 (19 ) 0 0 Fair value of plan assets at end of period $ 13,906 $ 12,807 $ 1,557 $ 1,432 Funded status at end of period $ (731 ) $ (378 ) $ (436 ) $ (444 ) Amounts recognized in the Statements of Financial Position Prepaid benefit cost $ 2,204 $ 2,458 $ 0 $ 4 Accrued benefit liability (2,935 ) (2,836 ) (436 ) (448 ) Net amount recognized $ (731 ) $ (378 ) $ (436 ) $ (444 ) Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost: Prior service cost $ (12 ) $ (15 ) $ 65 $ 41 Net actuarial loss 4,191 3,829 341 408 Net amount not recognized $ 4,179 $ 3,814 $ 406 $ 449 Accumulated benefit obligation $ (13,934 ) $ (12,560 ) $ (1,993 ) $ (1,877 ) |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | 2019 2018 (in millions) Projected benefit obligation $ 2,997 $ 2,895 Fair value of plan assets $ 62 $ 59 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | 2019 2018 (in millions) Accumulated benefit obligation $ 2,760 $ 2,697 Fair value of plan assets $ 7 $ 6 |
Schedule of Net Benefit Costs | Net periodic (benefit) cost included in “General and administrative expenses” in the Company’s Consolidated Statements of Operations for the years ended December 31, includes the following components: Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 (in millions) Service cost $ 291 $ 314 $ 284 $ 22 $ 23 $ 20 Interest cost 489 448 476 78 70 82 Expected return on plan assets (816 ) (817 ) (781 ) (95 ) (108 ) (102 ) Amortization of prior service cost (4 ) (4 ) (3 ) 4 1 0 Amortization of actuarial (gain) loss, net 217 213 191 24 17 36 Settlements 59 8 13 0 0 0 Special termination benefits(1)(2) 26 1 4 1 0 0 Net periodic (benefit) cost $ 262 $ 163 $ 184 $ 34 $ 3 $ 36 __________ (1) For 2019, 2018 and 2017 certain employees were provided special termination benefits under non-qualified plans in the form of unreduced early retirement benefits as a result of their involuntary termination. (2) For 2019 certain employees were provided special termination benefits in the qualified and non-qualified plans in the form of retirement eligibility bridging as a result of their participation in the Voluntary Separation Program that was offered to eligible U.S.-based employees in 2019. |
Schedule of Changes in Accumulated Other Comprehensive Income | The amounts recorded in AOCI as of the end of the period, which have not yet been recognized as a component of net periodic (benefit) cost, and the related changes in these items during the period that are recognized in “Other comprehensive income (loss)” are as follows: Pension Benefits Other Postretirement Benefits Prior Service Cost Net Actuarial (Gain) Loss Prior Service Cost Net Actuarial (Gain) Loss (in millions) Balance, December 31, 2016 $ (25 ) $ 3,481 $ 1 $ 557 Amortization for the period 3 (191 ) 0 (36 ) Deferrals for the period 0 323 9 (179 ) Impact of foreign currency changes and other 0 (2 ) 0 2 Balance, December 31, 2017 (22 ) 3,611 10 344 Amortization for the period 4 (213 ) (1 ) (17 ) Deferrals for the period 3 430 32 82 Impact of foreign currency changes and other 0 1 0 (1 ) Balance, December 31, 2018 (15 ) 3,829 41 408 Amortization for the period 4 (217 ) (4 ) (24 ) Deferrals for the period 0 634 27 (45 ) Impact of foreign currency changes and other (1 ) (55 ) 1 2 Balance, December 31, 2019 $ (12 ) $ 4,191 $ 65 $ 341 |
Amounts in AOCI to be recognized in next year | The amounts included in AOCI expected to be recognized as components of net periodic (benefit) cost in 2020 are as follows: Pension Benefits Other Postretirement Benefits (in millions) Amortization of prior service cost $ (4 ) $ 6 Amortization of actuarial (gain) loss, net 262 17 Total $ 258 $ 23 |
Schedule of Assumptions Used | The Company’s assumptions related to the calculation of the domestic benefit obligation (end of period) and the determination of net periodic (benefit) cost (beginning of period) are presented in the table below: Pension Benefits Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Weighted average assumptions Discount rate (beginning of period) 4.30 % 3.65 % 4.15 % 4.30 % 3.60 % 4.05 % Discount rate (end of period) 3.30 % 4.30 % 3.65 % 3.25 % 4.30 % 3.60 % Rate of increase in compensation levels (beginning of period) 4.50 % 4.50 % 4.50 % N/A N/A N/A Rate of increase in compensation levels (end of period) 4.50 % 4.50 % 4.50 % N/A N/A N/A Expected return on plan assets (beginning of period) 6.50 % 6.25 % 6.25 % 7.00 % 7.00 % 7.00 % Health care cost trend rates (beginning of period) N/A N/A N/A 6.00 % 6.20 % 6.60 % Health care cost trend rates (end of period) N/A N/A N/A 6.25 % 6.00 % 6.20 % For 2019, 2018 and 2017, the ultimate health care cost trend rate after gradual decrease until: 2024, 2024, 2021, (beginning of period) N/A N/A N/A 5.00 % 5.00 % 5.00 % For 2019, 2018 and 2017, the ultimate health care cost trend rate after gradual decrease until: 2028, 2024, 2024 (end of period) N/A N/A N/A 5.00 % 5.00 % 5.00 % |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point increase and decrease in assumed health care cost trend rates would have the following effects: Other Postretirement Benefits (in millions) One percentage point increase Increase in total service and interest costs $ 6 Increase in postretirement benefit obligation $ 110 One percentage point decrease Decrease in total service and interest costs $ 5 Decrease in postretirement benefit obligation $ 102 |
Schedule of Plans Assets-Fair Value and Allocation % (Target/Actual) | Asset allocation targets as of December 31, 2019 are as follows: Pension Postretirement Minimum Maximum Minimum Maximum Asset Category U.S. Equities 2 % 8 % 29 % 66 % International Equities 2 % 10 % 2 % 21 % Fixed Maturities 54 % 66 % 10 % 48 % Short-term Investments 0 % 12 % 0 % 35 % Real Estate 2 % 16 % 0 % 0 % Other 6 % 27 % 0 % 0 % Postretirement plan asset allocations in accordance with the investment guidelines are as follows: As of December 31, 2019 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Variable Life Insurance Policies (1) $ 0 $ 688 $ 0 $ 0 $ 688 Common trusts (2) 0 83 0 0 83 Subtotal 771 International Equities: Variable Life Insurance Policies (3) 0 118 0 0 118 Common trusts (4) 0 59 0 0 59 Subtotal 177 Fixed Maturities: Variable Life Insurance Policies (5) 0 194 0 0 194 Common trusts (5) 0 131 0 0 131 U.S. government securities (federal): Other U.S. government securities 0 20 0 0 20 Non-U.S. government securities 0 2 0 0 2 Corporate Debt: Corporate bonds 0 53 0 0 53 Asset-backed 0 15 0 0 15 Collateralized Mortgage Obligations 0 10 0 0 10 Collateralized Loan Obligations 0 16 0 0 16 Interest rate swaps (Notional amount: $253) 0 0 0 0 0 Registered investment companies 4 0 0 0 4 Other (6) 0 0 1 0 1 Subtotal 446 Short-term Investments: Registered investment companies 163 0 0 0 163 Subtotal 163 Total $ 167 $ 1,389 $ 1 $ 0 $ 1,557 December 31, 2018(7) Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Variable Life Insurance Policies (1) $ 0 $ 538 $ 0 $ 0 $ 538 Common trusts (2) 0 75 0 0 75 Equities 25 6 0 0 31 Subtotal 644 International Equities: Variable Life Insurance Policies (3) 0 91 0 0 91 Common trusts (4) 0 53 0 0 53 Equities 0 6 0 0 6 Subtotal 150 Fixed Maturities: Variable Life Insurance Policies (5) 0 157 0 0 157 Common trusts (5) 0 130 0 0 130 U.S. government securities (federal): Other U.S. government securities 0 25 0 0 25 Corporate Debt: Corporate bonds 0 120 0 0 120 Asset-backed 0 26 1 0 27 Collateralized Mortgage Obligations 0 17 1 0 18 Collateralized Loan Obligations 0 18 0 0 18 Interest rate swaps (Notional amount: $188) 0 (1 ) 0 0 (1 ) Registered investment companies 3 0 0 0 3 Other (6) 0 0 3 0 3 Subtotal 500 Short-term Investments: Registered investment companies 138 0 0 0 138 Subtotal 138 Total $ 166 $ 1,261 $ 5 $ 0 $ 1,432 __________ (1) This category invests in U.S. equity funds, primarily large cap equities whose objective is to track an index via pooled separate accounts and registered investment companies. (2) This category invests in U.S. equity funds, primarily large cap equities. (3) This category invests in international equity funds, primarily large cap international equities whose objective is to track an index. (4) This category fund invests in large cap international equity fund whose objective is to outperform an index. (5) This category invests in U.S. government and corporate bond funds. (6) Cash and cash equivalents, short-term investments, payables and receivables and open future contract positions (including fixed income collateral). (7) Prior period amounts have been updated to conform to the current year presentation. Pension plan asset allocations in accordance with the investment guidelines are as follows: As of December 31, 2019 Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Pooled separate accounts (1) $ 0 $ 204 $ 0 $ 0 $ 204 Common/collective trusts (1) 0 271 0 0 271 Subtotal 475 International Equities: Pooled separate accounts (2) 0 312 0 0 312 Common/collective trusts (3) 0 393 0 0 393 United Kingdom insurance pooled funds (4) 0 48 0 0 48 Subtotal 753 Fixed Maturities: Pooled separate accounts (5) 0 1,521 0 0 1,521 Common/collective trusts (6) 0 521 0 0 521 U.S. government securities (federal): Mortgage-backed 0 1 0 0 1 Other U.S. government securities 0 783 0 0 783 U.S. government securities (state & other) 0 562 0 0 562 Non-U.S. government securities 0 93 0 0 93 United Kingdom insurance pooled funds (7) 0 90 0 0 90 Corporate Debt: Corporate bonds 0 4,281 0 0 4,281 Asset-backed 0 22 0 0 22 Collateralized Mortgage Obligations 0 485 0 0 485 Collateralized Loan Obligations 0 397 0 0 397 Interest rate swaps (Notional amount: $2,462) 0 2 0 0 2 Registered investment companies 7 0 0 0 7 Other (8) 37 (2 ) 44 0 79 Unrealized gain (loss) on investment of securities lending collateral (9) 0 0 0 0 0 Subtotal 8,844 Short-term Investments: Pooled separate accounts 5 56 0 0 61 United Kingdom insurance pooled funds 30 0 0 0 30 Subtotal 91 Real Estate: Pooled separate accounts (10) 0 0 770 0 770 Partnerships 0 0 0 688 688 Subtotal 1,458 Other: Partnerships 0 0 0 973 973 Hedge funds 0 0 0 1,312 1,312 Subtotal 2,285 Total $ 79 $ 10,040 $ 814 $ 2,973 $ 13,906 December 31, 2018(11) Level 1 Level 2 Level 3 NAV Practical Expedient Total (in millions) U.S. Equities: Pooled separate accounts (1) $ 0 $ 448 $ 0 $ 0 $ 448 Common/collective trusts (1) 0 70 0 0 70 Subtotal 518 International Equities: Pooled separate accounts (2) 0 315 0 0 315 Common/collective trusts (3) 0 283 0 0 283 United Kingdom insurance pooled funds (4) 0 42 0 0 42 Subtotal 640 Fixed Maturities: Pooled separate accounts (5) 0 1,326 0 0 1,326 Common/collective trusts (6) 0 485 0 0 485 U.S. government securities (federal): Mortgage-backed 0 1 0 0 1 Other U.S. government securities 0 712 0 0 712 U.S. government securities (state & other) 0 519 0 0 519 Non-U.S. government securities 0 7 0 0 7 United Kingdom insurance pooled funds (7) 0 289 0 0 289 Corporate Debt: Corporate bonds 0 3,476 2 0 3,478 Asset-backed 0 24 0 0 24 Collateralized Mortgage Obligations 0 474 0 0 474 Collateralized Loan Obligations 0 293 0 0 293 Interest rate swaps (Notional amount: $1,694) 0 11 0 0 11 Guaranteed investment contract 0 53 0 0 53 Registered investment companies 293 0 0 0 293 Other (8) 6 5 62 0 73 Unrealized gain (loss) on investment of securities lending collateral (9) 0 0 0 0 0 Subtotal 8,038 Short-term Investments: Pooled separate accounts 0 74 0 0 74 United Kingdom insurance pooled funds 0 3 0 0 3 Subtotal 77 Real Estate: Pooled separate accounts (10) 0 0 760 0 760 Partnerships 0 0 0 478 478 Subtotal 1,238 Other: Partnerships 0 0 0 831 831 Hedge funds 0 0 0 1,465 1,465 Subtotal 2,296 Total $ 299 $ 8,910 $ 824 $ 2,774 $ 12,807 __________ (1) These categories invest in U.S. equity funds whose objective is to track or outperform various indexes. (2) This category invests in a large cap international equity funds whose objective is to track an index. (3) This category mainly consists of a global equity fund, primarily focused on new market leaders with sustainable competitive advantage. (4) This category invests in an international equity fund whose objective is to track an index. (5) This category invests in bond funds, primarily highly rated private placement securities. (6) This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index. (7) This category invests in bond funds, primarily highly rated corporate securities. (8) Primarily cash and cash equivalents, short-term investments, payables and receivables, and open future contract positions (including fixed income collateral). (9) The contractual net value of the investment of securities lending collateral invested primarily in short-term bond funds is $135 million and $157 million and the liability for securities lending collateral is $135 million and $157 million for the years ended December 31, 2019 and 2018, respectively. (10) This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index. (11) Prior period amounts have been updated to conform to the current year presentation. A summary of pension and postretirement plan asset allocation as of the year ended December 31, are as follows: Pension Percentage of Plan Assets Postretirement Percentage of Plan Assets 2019 2018 2019 2018 Asset Category U.S. Equities 3 % 4 % 50 % 43 % International Equities 5 5 11 10 Fixed Maturities 64 63 29 37 Short-term Investments 1 0 10 10 Real Estate 11 10 0 0 Other 16 18 0 0 Total 100 % 100 % 100 % 100 % |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | Year Ended December 31, 2019 Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Other Real Estate– Pooled Separate Accounts (in millions) Fair Value, beginning of period $ 2 $ 62 $ 760 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 39 Relating to assets sold during the period 0 0 15 Purchases, sales and settlements 0 (18 ) (44 ) Transfers in and/or out of Level 3 (1) (2 ) 0 0 Fair Value, end of period $ 0 $ 44 $ 770 Year Ended December 31, 2018 Fixed Maturities– Pooled Separate Accounts Fixed Maturities– Corporate Debt– Corporate Bonds Fixed Maturities– Other Real Estate– Pooled Separate Accounts (in millions) Fair Value, beginning of period $ 38 $ 1 $ 39 $ 714 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 56 Relating to assets sold during the period 0 0 0 8 Purchases, sales and settlements (38 ) (1 ) 23 (18 ) Transfers in and/or out of Level 3 (1) 0 2 0 0 Fair Value, end of period $ 0 $ 2 $ 62 $ 760 __________ (1) The transfers from level 3 to level 2 are due to the availability of external pricing sources. Year Ended December 31, 2019 Fixed Maturities– Corporate Debt– Asset-backed Fixed Maturities– Corporate Debt– Collateralized Mortgage Obligations Fixed Maturities– Other (in millions) Fair Value, beginning of period $ 1 $ 1 $ 3 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 Relating to assets sold during the period 0 0 0 Purchases, sales and settlements 0 (1 ) (2 ) Transfers in and/or out of Level 3 (1) (1 ) 0 0 Fair Value, end of period $ 0 $ 0 $ 1 Year Ended December 31, 2018 Fixed Maturities– Corporate Debt– Asset-backed Fixed Maturities– Corporate Debt– Collateralized Mortgage Obligations Fixed Maturities– Corporate Debt– Collateralized Loan Obligations Fixed Maturities– Other (in millions) Fair Value, beginning of period $ 0 $ 2 $ 2 $ 5 Actual Return on Assets: Relating to assets still held at the reporting date 0 0 0 0 Relating to assets sold during the period 0 0 0 0 Purchases, sales and settlements (1 ) (1 ) 0 (2 ) Transfers in and/or out of Level 3 (1) 2 0 (2 ) 0 Fair Value, end of period $ 1 $ 1 $ 0 $ 3 __________ (1) The transfers from level 3 to level 2 are due to the availability of external pricing sources. |
Schedule of Expected Benefit Payments | The expected benefit payments for the Company’s pension and postretirement plans, as well as the expected Medicare Part D subsidy receipts related to the Company’s postretirement plan, for the years indicated are as follows: Pension Benefit Payments Other Postretirement Benefit Payments Other Postretirement Benefits– Medicare Part D Subsidy Receipts (in millions) 2020 $ 938 $ 147 $ 8 2021 797 148 8 2022 825 149 8 2023 858 148 7 2024 865 146 7 2025-2029 4,577 698 32 Total $ 8,860 $ 1,436 $ 70 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 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, 2016 660.1 230.5 429.6 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 11.5 (11.5 ) Stock-based compensation programs(1) 0.0 (4.5 ) 4.5 Balance, December 31, 2017 660.1 237.5 422.6 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 14.9 (14.9 ) Stock-based compensation programs(1) 0.0 (3.0 ) 3.0 Balance, December 31, 2018 660.1 249.4 410.7 Common Stock issued (2)(3) 6.2 (5.5 ) 11.7 Common Stock acquired 0.0 27.2 (27.2 ) Stock-based compensation programs(1) 0.0 (3.6 ) 3.6 Balance, December 31, 2019 666.3 267.5 398.8 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. (2) In August 2019, as a result of the note holders’ exercise of the exchange option on $500 million of surplus notes, 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 $1,000 principal amount of surplus notes. The Company’s obligations under the surplus notes are now satisfied. For additional information, see Note 20. (3) In October 2019, the Company issued approximately 5.5 million shares of restricted Common Stock as part of consideration paid for the Assurance IQ acquisition. For additional information about the acquisition, see Note 1. |
Share Repurchases Authorizations | The following table summarizes share repurchases for each of the past three years as well as the share repurchase authorization for 2020 which was approved by the Board of Directors in December 2019. January 1, 2020 - December 31, 2020 January 1, 2019 - December 31, 2019 January 1, 2018 - December 31, 2018 January 1, 2017 - December 31, 2017 Total Board authorized share repurchase amount ($ in billions) $ 2.0 $ 2.5 $ 1.5 $ 1.25 Total number of shares repurchased under this authorization as of the period end (in millions) N/A* 27.2 14.9 11.5 __________ * Share repurchase authorization for a future period. |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows: Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) Total Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2016 $ (973 ) $ 18,171 $ (2,577 ) $ 14,621 Change in OCI before reclassifications 768 4,026 (153 ) 4,641 Amounts reclassified from AOCI 1 (1,629 ) 224 (1,404 ) Income tax benefit (expense) (65 ) (600 ) (119 ) (784 ) Balance, December 31, 2017 (269 ) 19,968 (2,625 ) 17,074 Change in OCI before reclassifications (74 ) (7,614 ) (547 ) (8,235 ) Amounts reclassified from AOCI 1 (779 ) 227 (551 ) Income tax benefit (expense) 9 1,735 68 1,812 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, December 31, 2018 (564 ) 14,745 (3,275 ) 10,906 Change in OCI before reclassifications 37 18,540 (563 ) 18,014 Amounts reclassified from AOCI 27 (1,345 ) 241 (1,077 ) Income tax benefit (expense) (36 ) (3,835 ) 60 (3,811 ) Cumulative effect of adoption of ASU 2017-12 0 7 0 7 Balance, December 31, 2019 $ (536 ) $ 28,112 $ (3,537 ) $ 24,039 __________ (1) Includes cash flow hedges of $832 million , $811 million and $(39) million as of December 31, 2019 , 2018 , and 2017 , respectively. |
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Years Ended December 31, Affected line item in Consolidated Statements of Operations 2019 2018 2017 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustment $ (27 ) $ (1 ) $ (3 ) Realized investment gains (losses), net Foreign currency translation adjustment 0 0 2 Other income (loss) Total foreign currency translation adjustment (27 ) (1 ) (1 ) Net unrealized investment gains (losses): Cash flow hedges—Interest Rate 58 1 (2 ) (3) Cash flow hedges—Currency 6 7 0 (3) Cash flow hedges—Currency/Interest rate 315 543 (16 ) (3) Net unrealized investment gains (losses) on available-for-sale securities 966 228 1,647 Total net unrealized investment gains (losses) 1,345 779 1,629 (4) Amortization of defined benefit items: Prior service cost 0 3 3 (5) Actuarial gain (loss) (241 ) (230 ) (227 ) (5) Total amortization of defined benefit items (241 ) (227 ) (224 ) Total reclassifications for the period $ 1,077 $ 551 $ 1,404 __________ (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 18 for information on employee benefit plans. |
Net Unrealized Investment Gain (Loss) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized Net Unrealized Gains (Losses) on Investments DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2016 $ 312 $ (5 ) $ (6 ) $ (47 ) $ (97 ) $ 157 Net investment gains (losses) on investments arising during the period 79 (22 ) 57 Reclassification adjustment for (gains) losses included in net income (85 ) 23 (62 ) Reclassification adjustment for OTTI losses excluded from net income(1) (20 ) 5 (15 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 3 (1 ) 2 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables 9 (2 ) 7 Impact of net unrealized investment (gains) losses on policyholders’ dividends 1 0 1 Balance, December 31, 2017 286 (2 ) 3 (46 ) (94 ) 147 Net investment gains (losses) on investments arising during the period (19 ) 8 (11 ) Reclassification adjustment for (gains) losses included in net income (76 ) 33 (43 ) Reclassification adjustment for OTTI losses excluded from net income(1) (2 ) 1 (1 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 1 0 1 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables 1 0 1 Impact of net unrealized investment (gains) losses on policyholders’ dividends 23 (9 ) 14 Balance, December 31, 2018 189 (1 ) 4 (23 ) (61 ) 108 Net investment gains (losses) on investments arising during the period 129 (29 ) 100 Reclassification adjustment for (gains) losses included in net income (96 ) 21 (75 ) Reclassification adjustment for OTTI losses excluded from net income(1) 21 (5 ) 16 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, policyholders’ account balances and reinsurance payables 1 0 1 Impact of net unrealized investment (gains) losses on policyholders’ dividends 1 0 1 Balance, December 31, 2019 $ 243 $ (1 ) $ 5 $ (22 ) $ (74 ) $ 151 __________ (1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss. |
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward | All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Deferred Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2016 $ 32,420 $ (1,056 ) $ (1,136 ) $ (2,980 ) $ (9,234 ) $ 18,014 Net investment gains (losses) on investments arising during the period 5,216 (1,425 ) 3,791 Reclassification adjustment for (gains) losses included in net income (1,544 ) 421 (1,123 ) Reclassification adjustment for OTTI losses excluded from net income(2) 20 (5 ) 15 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables (524 ) 191 (333 ) Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables (107 ) 25 (82 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (651 ) 190 (461 ) Balance, December 31, 2017 36,112 (1,580 ) (1,243 ) (3,631 ) (9,837 ) 19,821 Net investment gains (losses) on investments arising during the period (10,838 ) 2,893 (7,945 ) Reclassification adjustment for (gains) losses included in net income (703 ) 303 (400 ) Reclassification adjustment for OTTI losses excluded from net income(2) 2 (1 ) 1 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 842 (263 ) 579 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables 452 (186 ) 266 Impact of net unrealized investment (gains) losses on policyholders’ dividends 1,924 (874 ) 1,050 Cumulative effect of adoption of ASU 2016-01 (2,042 ) 813 212 (1,017 ) Cumulative effect of adoption of ASU 2018-02 2,282 2,282 Balance, December 31, 2018 22,531 (738 ) (791 ) (894 ) (5,471 ) 14,637 Net investment gains (losses) on investments arising during the period 23,826 (5,282 ) 18,544 Reclassification adjustment for (gains) losses included in net income (1,249 ) 277 (972 ) Reclassification adjustment for OTTI losses excluded from net income(2) (21 ) 5 (16 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables (846 ) 190 (656 ) Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables (2,123 ) 475 (1,648 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (2,450 ) 515 (1,935 ) Cumulative effect of adoption of ASU 2017-12 9 (2 ) 7 Balance, December 31, 2019 $ 45,096 $ (1,584 ) $ (2,914 ) $ (3,344 ) $ (9,293 ) $ 27,961 __________ (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. |
Statutory Financial Information | The following table summarizes certain statutory financial information for the Company’s two largest U.S. insurance subsidiaries for the periods indicated: PICA PALAC In millions and presented as of or for the year ended December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2019 December 31, 2018 December 31, 2017 Statutory net income (loss)(1) $ (169 ) $ 1,324 $ (217 ) $ (2,052 ) $ (852 ) $ 3,911 Statutory capital and surplus(1) $ 11,483 $ 10,695 $ 9,948 $ 4,748 $ 6,396 $ 8,059 __________ (1) Prior year amounts have been updated to conform to finalized statutory filing where applicable. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, is as follows: 2019 2018 2017 Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount Income Weighted Average Shares Per Share Amount (in millions, except per share amounts) Basic earnings per share Net income (loss) $ 4,238 $ 4,088 $ 7,974 Less: Income (loss) attributable to noncontrolling interests 52 14 111 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 46 48 95 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 4,140 404.8 $ 10.23 $ 4,026 417.6 $ 9.64 $ 7,768 427.0 $ 18.19 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 46 $ 48 $ 95 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 45 47 94 Stock options 1.1 1.5 2.1 Deferred and long-term compensation programs 1.4 1.2 1.1 Exchangeable Surplus Notes 12 3.6 21 5.9 17 5.8 Diluted earnings per share Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ 4,153 410.9 $ 10.11 $ 4,048 426.2 $ 9.50 $ 7,786 436.0 $ 17.86 |
Earnings Per Share Computation | For the years ended December 31, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows: 2019 2018 2017 Shares Exercise Price Per Share Shares Exercise Price Per Share Shares Exercise Price Per Share (in millions, except per share amounts, based on weighted average) Antidilutive stock options based on application of the treasury stock method 1.2 $ 102.84 0.7 $ 108.34 0.3 $ 110.18 Antidilutive stock options due to net loss available to holders of Common Stock 0.0 0.0 0.0 Antidilutive shares based on application of the treasury stock method 0.0 0.0 0.1 Antidilutive shares due to net loss available to holders of Common Stock 0.0 0.0 0.0 Total antidilutive stock options and shares 1.2 0.7 0.4 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share Based Payment Award Stock Options Valuation Assumptions | The weighted average grant date assumptions used in the binomial option valuation model are as follows: 2019 2018 2017 Expected volatility 34.63 % 35.39 % 35.29 % Expected dividend yield 4.26 % 2.88 % 2.84 % Expected term 5.54 years 5.49 years 5.60 years Risk-free interest rate 2.50 % 2.64 % 2.06 % |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following chart summarizes the compensation cost recognized and the related income tax benefit for stock options, restricted stock units, performance shares and performance units for the years ended December 31: 2019 2018 2017 Omnibus Incentive Plan: Total Compensation Cost Recognized (1) Income Tax Benefit Total Compensation Cost Recognized (1) Income Tax Benefit Total Compensation Cost Recognized (1) Income Tax Benefit (in millions) Employee stock options $ 11 $ 3 $ 13 $ 3 $ 12 $ 5 Employee restricted stock units 149 35 139 32 142 51 Employee performance shares and performance units 71 17 3 1 109 41 Total $ 231 $ 55 $ 155 $ 36 $ 263 $ 97 __________ (1) Compensation costs related to retirement eligible participants are recorded on the grant date (typically in the first quarter of every year). 2019 Assurance IQ Acquisition: Total Income Tax (in millions) Employee stock options $ 4 $ 1 Employee restricted stock units 1 0 Employee performance shares 0 0 Total $ 5 $ 1 |
Schedule of Share Based Compensation Stock Options Activity | The weighted average remaining contractual term and the aggregate intrinsic value of stock options outstanding and exercisable as of December 31, 2019 is as follows: Employee Stock Options Omnibus Incentive Plan Assurance IQ Acquisition Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in millions) (in years) (in millions) Outstanding 4.53 $ 92 8.47 $ 51 Exercisable 3.73 $ 92 8.69 $ 3 A summary of the status of the Company’s stock option grants is as follows Employee Stock Options Omnibus Incentive Plan Assurance IQ Acquisition Shares Weighted Average Shares Weighted Average Exercise Price Outstanding at December 31, 2018 4,584,244 $ 72.03 0 $ 0.00 Granted 569,137 93.36 584,017 1.36 Exercised (541,473 ) 58.56 (36,825 ) 0.98 Forfeited (165 ) 76.71 0 0.00 Expired (746 ) 19.86 0 0.00 Outstanding at December 31, 2019 4,610,997 $ 76.26 547,192 $ 1.38 Exercisable at December 31, 2019 3,614,679 $ 70.03 33,596 $ 2.08 |
Schedule of Nonvested Share Activity | Restricted Stock Units Weighted Average Grant Date Fair Value Performance Share and Performance Unit Awards(1) Weighted Average Grant Date Fair Value Restricted at December 31, 2018(2) 4,760,914 $ 90.09 1,809,075 $ 81.55 Granted(2) 1,919,168 93.35 691,724 90.68 Forfeited (183,997 ) 100.09 (12,947 ) 93.26 Performance adjustment(3) 92,841 93.36 Released (2,024,896 ) 65.44 (757,807 ) 93.36 Restricted at December 31, 2019(2) 4,471,189 $ 102.25 1,822,886 $ 80.62 __________ (1) Performance share and performance unit awards reflect the target units awarded, reduced for forfeitures and releases to date. The actual number of units to be awarded at the end of each performance period will range between 0% and 125% of the target number of units granted, based upon a measure of the reported performance for the Company relative to stated goals. Performance awards granted to senior management in 2018 include a stated goal related to diversity & inclusion that can modify the performance result by +/- 10%. (2) Effective October 1, 2019, the Company modified existing performance share and performance unit awards to remove features of the grants that prevent having a mutual understanding of the key terms and conditions of the award between the employee and employer until the grants vested. Consequently, the weighted average grant date fair value as of December 31, 2019 is the closing stock price of Prudential Financial’s common stock as of September 30, 2019. The weighted average grant date fair value as of 12/31/2018 is the closing stock price of Prudential Financial’s common stock as of December 31, 2018 . (3) Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company. A summary of the Company’s restricted stock units and performance share awards related to the Acquisition is as follows: Restricted Weighted Performance Weighted Restricted at December 31, 2018 0 $ 0 0 $ 0.00 Granted 125,788 87.67 1,982,708 89.81 Forfeited 0 0 0 0.00 Performance adjustment(2) 0 0 0 0.00 Released 0 0 0 0.00 Restricted at December 31, 2019 125,788 $ 87.67 1,982,708 $ 89.81 ____ ______ (1) Performance share awards related to the Assurance IQ acquisition reflect the maximum number of units that have been awarded under the terms of the acquisition. The actual number of units that will be awarded at the end of the performance period will range between 0% and 100% of the number of units granted, based upon a predetermined formula of achieving variable profits between $900 million and $1,300 million . (2) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income: Year Ended December 31, 2019 2018 2017 (in millions) Net gains (losses) from(1): Terminated hedges of foreign currency earnings $ 65 $ (15 ) $ (15 ) Current period yield adjustments $ 331 $ 367 $ 434 Principal source of earnings $ (37 ) $ 219 $ (8 ) __________ (1) In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to Divested and Run-off Businesses. See “Divested and Run-off Businesses” discussed below. The table below reconciles adjusted operating income before income taxes to income before income taxes and equity in earnings of operating joint ventures: Year ended December 31, 2019 2018 2017 (in millions) Adjusted operating income before income taxes by segment: PGIM $ 998 $ 959 $ 979 U.S. Businesses: U.S. Workplace Solutions division: Retirement 1,301 1,049 1,244 Group Insurance 285 229 253 Total U.S. Workplace Solutions division 1,586 1,278 1,497 U.S. Individual Solutions division: Individual Annuities(1) 1,843 1,925 2,198 Individual Life 87 223 (191 ) Total U.S. Individual Solutions division 1,930 2,148 2,007 Assurance IQ division(2): Assurance IQ (9 ) 0 0 Total Assurance IQ division (9 ) 0 0 Total U.S. Businesses 3,507 3,426 3,504 International Businesses 3,359 3,266 3,198 Corporate and Other (1,766 ) (1,283 ) (1,437 ) Total segment adjusted operating income before income taxes 6,098 6,368 6,244 Reconciling Items: Realized investment gains (losses), net, and related adjustments(3) (764 ) 466 (417 ) Charges related to realized investment gains (losses), net (125 ) (316 ) 544 Market experience updates(4) (462 ) 0 0 Divested and Run-off Businesses: Closed Block division 36 (62 ) 45 Other Divested and Run-off Businesses 452 (1,535 ) 38 Other adjustments(5) (47 ) 0 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (103 ) (87 ) 33 Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures $ 5,085 $ 4,834 $ 6,487 __________ (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) Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information. (3) Prior period amounts have been updated to conform to current period presentation. (4) 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 had historically recognized these impacts in adjusted operating income. (5) Represents adjustments not included in the above reconciling items. “Other adjustments” include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration. The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income: Year Ended December 31, 2019 2018 2017 (in millions) Net gains (losses) from: Investments carried at fair value through net income $ 558 $ (417 ) $ 184 Foreign currency exchange movements $ 61 $ (289 ) $ (135 ) Gains (losses), net, on experience-rated contracts (excluding derivatives and commercial mortgage and other loans)(1) $ 22 $ (153 ) $ 185 Other activities $ (31 ) $ (41 ) $ (20 ) __________ (1) Adjusted operating income excludes net investment gains (losses) on assets supporting experience-rated contractholder liabilities, related derivatives, and commercial mortgage and other loans. The activity for derivatives and commercial mortgage and other loans that support these experience-rated products are reported in “Realized investment gains (losses), net” and excluded from adjusted operating income. |
Schedule of Segment Reporting Information, by Segment | The tables below present certain financial information for the Company’s segments and its Corporate and Other operations, including assets by segment and revenues, and benefits and expenses by segment on an adjusted operating income basis, and the reconciliation of the segment totals to amounts reported in the Consolidated Financial Statements. As of December 31, 2019 2018 (in millions) Assets by segment: PGIM 47,655 47,690 U.S. Businesses: U.S. Workplace Solutions division: Retirement 198,153 175,525 Group Insurance 43,712 41,727 Total U.S. Workplace Solutions division 241,865 217,252 U.S. Individual Solutions division: Individual Annuities 189,040 167,899 Individual Life 96,072 83,739 Total U.S. Individual Solutions division 285,112 251,638 Assurance IQ division(1): Assurance IQ 2,639 0 Total Assurance IQ division 2,639 0 Total U.S. Businesses 529,616 468,890 International Businesses 241,071 222,633 Corporate and Other 16,883 16,826 Closed Block division 61,327 59,039 Total assets per Consolidated Statements of Financial Position $ 896,552 $ 815,078 __________ (1) Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information. Year Ended December 31, 2019 Revenues, and benefits and expenses on an adjusted operating income basis by segment Total Revenues Net Investment Income Total Benefits and Expenses Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) PGIM $ 3,589 $ 200 $ 2,591 $ 0 $ 0 $ 0 $ 49 $ 6 U.S. Businesses: U.S. Workplace Solutions division: Retirement 15,064 4,738 13,763 11,061 1,503 0 46 38 Group Insurance 5,750 624 5,465 4,257 286 0 2 7 Total U.S. Workplace Solutions division 20,814 5,362 19,228 15,318 1,789 0 48 45 U.S. Individual Solutions division: Individual Annuities 4,995 856 3,152 435 334 0 122 513 Individual Life 6,115 2,247 6,028 2,778 830 38 774 577 Total U.S. Individual Solutions division 11,110 3,103 9,180 3,213 1,164 38 896 1,090 Assurance IQ division(1): Assurance IQ 101 0 110 0 0 0 0 0 Total Assurance IQ division 101 0 110 0 0 0 0 0 Total U.S. Businesses 32,025 8,465 28,518 18,531 2,953 38 944 1,135 International Businesses 23,195 5,558 19,836 14,535 918 48 25 1,239 Corporate and Other (677 ) 579 1,089 36 0 0 521 (46 ) Total revenues, and benefits and expenses on an adjusted operating income basis 58,132 14,802 52,034 33,102 3,871 86 1,539 2,334 Reconciling items: Realized investment gains (losses), net, and related adjustments 185 (36 ) 949 0 949 0 0 0 Charges related to realized investment gains (losses), net (254 ) 0 (129 ) (136 ) (94 ) 0 0 (181 ) Market experience updates(2) (77 ) 0 385 200 4 0 0 144 Divested and Run-off Businesses: Closed Block division 5,642 2,323 5,606 2,907 130 2,187 7 29 Other Divested and Run-off Businesses 1,330 496 878 747 20 1 4 6 Other adjustments(3) (5 ) 0 42 0 0 0 0 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (146 ) 0 (43 ) 0 0 0 0 0 Total revenue, and benefits and expenses per Consolidated Statements of Operations $ 64,807 $ 17,585 $ 59,722 $ 36,820 $ 4,880 $ 2,274 $ 1,550 $ 2,332 Year Ended December 31, 2018 Revenues, and benefits and expenses on an adjusted operating income basis by segment Total Revenues Net Investment Income Total Benefits and Expenses Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) PGIM $ 3,294 $ 73 $ 2,335 $ 0 $ 0 $ 0 $ 40 $ 8 U.S. Businesses: U.S. Workplace Solutions division: Retirement 16,825 4,377 15,776 13,215 1,430 0 35 33 Group Insurance 5,685 616 5,456 4,241 282 0 2 5 Total U.S. Workplace Solutions division 22,510 4,993 21,232 17,456 1,712 0 37 38 U.S. Individual Solutions division: Individual Annuities 4,966 694 3,041 370 335 0 67 511 Individual Life 5,831 2,033 5,608 2,489 766 37 714 368 Total U.S. Individual Solutions division 10,797 2,727 8,649 2,859 1,101 37 781 879 Total U.S. Businesses 33,307 7,720 29,881 20,315 2,813 37 818 917 International Businesses 22,234 5,245 18,968 14,009 907 62 21 1,233 Corporate and Other (705 ) 452 578 (12 ) 0 0 535 (44 ) Total revenues, and benefits and expenses on an adjusted operating income basis 58,130 13,490 51,762 34,312 3,720 99 1,414 2,114 Reconciling items: Realized investment gains (losses), net, and related adjustments(4) (244 ) (41 ) (710 ) 0 (710 ) 0 0 0 Charges related to realized investment gains (losses), net (274 ) 0 42 (75 ) 40 0 0 118 Divested and Run-off Businesses: Closed Block division 4,678 2,288 4,740 2,972 132 1,236 2 35 Other Divested and Run-off Businesses 805 439 2,340 2,195 14 1 4 6 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (103 ) 0 (16 ) 0 0 0 0 0 Total revenue, and benefits and expenses per Consolidated Statements of Operations $ 62,992 $ 16,176 $ 58,158 $ 39,404 $ 3,196 $ 1,336 $ 1,420 $ 2,273 Year Ended December 31, 2017 Revenues, and benefits and expenses on an adjusted operating income basis by segment Total Revenues Net Investment Income Total Benefits and Expenses Policyholders’ Benefits Interest Credited to Policyholders’ Account Balances Dividends to Policyholders Interest Expense Amortization of DAC (in millions) PGIM $ 3,355 $ 170 $ 2,376 $ 0 $ 0 $ 0 $ 27 $ 11 U.S. Businesses: U.S. Workplace Solutions division: Retirement 13,843 4,482 12,599 10,035 1,507 0 26 26 Group Insurance 5,471 637 5,218 4,073 274 0 5 14 Total U.S. Workplace Solutions division 19,314 5,119 17,817 14,108 1,781 0 31 40 U.S. Individual Solutions division: Individual Annuities 5,110 742 2,912 318 330 0 70 464 Individual Life 4,974 1,948 5,165 2,100 719 36 648 483 Total U.S. Individual Solutions division 10,084 2,690 8,077 2,418 1,049 36 718 947 Total U.S. Businesses 29,398 7,809 25,894 16,526 2,830 36 749 987 International Businesses 21,560 5,027 18,362 13,440 899 48 13 1,138 Corporate and Other (667 ) 493 770 21 0 0 533 (43 ) Total revenues, and benefits and expenses on an adjusted operating income basis 53,646 13,499 47,402 29,987 3,729 84 1,322 2,093 Reconciling items: Realized investment gains (losses), net, and related adjustments(4) (266 ) (38 ) 151 0 151 0 0 0 Charges related to realized investment gains (losses), net (215 ) 0 (759 ) (69 ) (191 ) 0 0 (550 ) Divested and Run-off Businesses: Closed Block division 5,826 2,653 5,781 3,219 133 2,007 1 37 Other Divested and Run-off Businesses 775 321 737 657 0 0 4 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (77 ) 0 (110 ) 0 0 0 0 0 Total revenue, and benefits and expenses per Consolidated Statements of Operations $ 59,689 $ 16,435 $ 53,202 $ 33,794 $ 3,822 $ 2,091 $ 1,327 $ 1,580 __________ (1) Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information. (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 had historically recognized these impacts in adjusted operating income. (3) Represents adjustments not included in the above reconciling items. “Other adjustments” include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration. (4) Prior period amounts have been updated to conform to current period presentation. |
Schedule Of Revenues From Domestic And Foreign Operations | Revenues, calculated in accordance with U.S. GAAP, for the years ended December 31, include the following associated with the Company’s foreign and domestic operations: 2019 2018 2017 (in millions) Domestic operations $ 40,868 $ 40,603 $ 36,573 Foreign operations, total $ 23,939 $ 22,389 $ 23,116 Foreign operations, Japan $ 19,626 $ 19,125 $ 19,589 Foreign operations, Korea $ 1,638 $ 1,495 $ 1,567 |
Schedule Of Intersegment Revenues | The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, for the years ended December 31, as follows: 2019 2018 2017 (in millions) PGIM segment intersegment revenues $ 777 $ 731 $ 717 |
Schedule of Asset Mgmt and Service Fees | The table below presents asset management and service fees, predominantly related to an investment management activities, for the periods indicated: 2019 2018 2017 (in millions) Asset-based management fees $ 3,489 $ 3,438 $ 3,328 Performance-based incentive fees 169 56 194 Other fees 581 606 605 Total asset management and service fees $ 4,239 $ 4,100 $ 4,127 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2019 December 31, 2018 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 13,462 21.4 % $ 13,280 22.4 % Retail 8,379 13.3 8,639 14.6 Apartments/Multi-Family 17,348 27.6 16,538 28.0 Industrial 13,226 21.1 11,574 19.6 Hospitality 2,415 3.9 1,931 3.3 Other 4,533 7.2 3,846 6.5 Total commercial mortgage loans 59,363 94.5 55,808 94.4 Agricultural property loans 3,472 5.5 3,316 5.6 Total commercial mortgage and agricultural property loans by property type 62,835 100.0 % 59,124 100.0 % Allowance for credit losses (117 ) (123 ) Total net commercial mortgage and agricultural property loans by property type 62,718 59,001 Other loans: Uncollateralized loans 656 660 Residential property loans 124 157 Other collateralized loans 65 17 Total other loans 845 834 Allowance for credit losses (4 ) (5 ) Total net other loans 841 829 Total commercial mortgage and other loans(1) $ 63,559 $ 59,830 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of December 31, 2019 and 2018 , the net carrying value of these loans was $228 million and $763 million , respectively. |
Insolvency Assessment | Assets and liabilities held for insolvency assessments were as follows: December 31, 2019 2018 (in millions) Other assets: Premium tax offset for future undiscounted assessments $ 48 $ 54 Premium tax offset currently available for paid assessments 3 3 Total $ 51 $ 57 Other liabilities: Insolvency assessments $ 37 $ 39 |
Commitments | Commercial Mortgage Loans | |
Commitments and Contingent Liabilities [Line Items] | |
Mortgage Loans | Commercial Mortgage Loan Commitments December 31, 2019 2018 (in millions) Total outstanding mortgage loan commitments $ 2,129 $ 3,299 Portion of commitment where prearrangement to sell to investor exists $ 751 $ 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) December 31, 2019 2018 (in millions) Expected to be funded from the general account and other operations outside the separate accounts $ 7,372 $ 6,941 Expected to be funded from separate accounts $ 49 $ 147 |
Indemnification | |
Commitments and Contingent Liabilities [Line Items] | |
Indemnification of Securities Lending and Securities Repurchase Transactions | Indemnification of Securities Lending and Securities Repurchase Transactions December 31, 2019 2018 (in millions) Indemnification provided to certain clients for securities lending and securities repurchase transactions(1) $ 5,071 $ 5,399 Fair value of related collateral associated with above indemnifications(1) $ 5,204 $ 5,503 Accrued liability associated with guarantee $ 0 $ 0 |
Indemnification | Commercial Mortgage Loans | |
Commitments and Contingent Liabilities [Line Items] | |
Mortgage Loans | Indemnification of Serviced Mortgage Loans December 31, 2019 2018 (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 2,113 $ 1,828 First-loss exposure portion of above $ 622 $ 543 Accrued liability associated with guarantees $ 19 $ 17 |
Guarantee of Asset Values | |
Commitments and Contingent Liabilities [Line Items] | |
Guarantees | Guarantees of Asset Values December 31, 2019 2018 (in millions) Guaranteed value of third parties’ assets $ 80,009 $ 79,215 Fair value of collateral supporting these assets $ 81,604 $ 77,897 Asset (liability) associated with guarantee, carried at fair value $ 1 $ 2 |
Other Guarantees | |
Commitments and Contingent Liabilities [Line Items] | |
Guarantees | Other Guarantees December 31, 2019 2018 (in millions) Other guarantees where amount can be determined $ 55 $ 77 Accrued liability for other guarantees and indemnifications $ 0 $ 0 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The unaudited quarterly results of operations for the years ended December 31, 2019 and 2018 are summarized in the table below: Three Months Ended March 31 June 30 September 30 December 31 (in millions, except per share amounts) 2019 Total revenues $ 15,091 $ 15,388 $ 15,105 $ 19,223 Total benefits and expenses 13,951 14,512 13,380 17,879 Net income (loss) 937 738 1,425 1,138 Less: Income attributable to noncontrolling interests 5 30 7 10 Net income (loss) attributable to Prudential Financial, Inc. $ 932 $ 708 $ 1,418 $ 1,128 Basic earnings per share—Common Stock(1): Net income (loss) attributable to Prudential Financial, Inc. $ 2.25 $ 1.73 $ 3.47 $ 2.78 Diluted earnings per share—Common Stock(1): Net income (loss) attributable to Prudential Financial, Inc. $ 2.22 $ 1.71 $ 3.44 $ 2.76 2018 Total revenues $ 13,757 $ 14,655 $ 16,148 $ 18,432 Total benefits and expenses 12,064 14,405 14,310 17,379 Net income (loss) 1,364 200 1,675 849 Less: Income attributable to noncontrolling interests 1 3 3 7 Net income (loss) attributable to Prudential Financial, Inc. $ 1,363 $ 197 $ 1,672 $ 842 Basic earnings per share—Common Stock(1)(2): Net income (loss) attributable to Prudential Financial, Inc. $ 3.19 $ 0.46 $ 3.97 $ 2.01 Diluted earnings per share—Common Stock(1)(2): Net income (loss) attributable to Prudential Financial, Inc. $ 3.14 $ 0.46 $ 3.90 $ 1.99 |
Business and Basis of Present_2
Business and Basis of Presentation (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||||
Oct. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2022 | Oct. 01, 2019 | Sep. 04, 2019 | |
Business Acquisition [Line Items] | |||||||||||||||
Net income (loss) | $ 1,138,000,000 | $ 1,425,000,000 | $ 738,000,000 | $ 937,000,000 | $ 849,000,000 | $ 1,675,000,000 | $ 200,000,000 | $ 1,364,000,000 | $ 4,238,000,000 | $ 4,088,000,000 | $ 7,974,000,000 | ||||
Share price (usd per share) | $ 87.67 | $ 83.71 | |||||||||||||
Intangible assets acquired | 191,000,000 | ||||||||||||||
Goodwill, acquired during period | 2,128,000,000 | 2,150,000,000 | $ 22,000,000 | ||||||||||||
Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Consideration transferred | $ 2,212,000,000 | ||||||||||||||
Contingent consideration, liability | 100,000,000 | 105,000,000 | 105,000,000 | ||||||||||||
Transaction costs | 1,758,000,000 | ||||||||||||||
Equity interest issued | 454,000,000 | ||||||||||||||
Equity interest issued, value | $ 160,000,000 | ||||||||||||||
Cash | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Equity interest in acquiree | 25.00% | ||||||||||||||
Common Stock | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Equity interest in acquiree | 75.00% | ||||||||||||||
Condition One | Subsequent Event | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Net income (loss) | $ 900,000,000 | ||||||||||||||
Condition Three | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Contingent liability, stock based compensation component | $ 900,000,000 | $ 900,000,000 | |||||||||||||
Share price (usd per share) | $ 83.71 | ||||||||||||||
Condition Four - Quotient - Numerator | Subsequent Event | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Net income (loss) | 900,000,000 | ||||||||||||||
Condition Four - Quotient - Denominator | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Consideration payable, cash and equity interests | $ 400,000,000 | ||||||||||||||
Condition Four - Multiplier | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Consideration payable, cash and equity interests | 1,150,000,000 | ||||||||||||||
Minimum | Condition One | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Consideration payable, cash and equity interests | 0 | ||||||||||||||
Minimum | Condition Two | Subsequent Event | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Net income (loss) | 1,300,000,000 | ||||||||||||||
Minimum | Condition Three | Subsequent Event | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Net income (loss) | 900,000,000 | ||||||||||||||
Maximum | Condition Two | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Consideration payable, cash and equity interests | $ 1,150,000,000 | ||||||||||||||
Maximum | Condition Three | Subsequent Event | Acquisition of Assurance IQ, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Net income (loss) | $ 1,300,000,000 |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements (Narratives) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2020 | Jan. 01, 2019 | [2] | Jan. 01, 2018 | Jan. 01, 2017 | Dec. 31, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Retained Earnings (Accumulated Deficit) | $ 32,991 | $ 30,470 | ||||||||
Accumulated other comprehensive income (loss) | 24,039 | 10,906 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 63,719 | 49,031 | $ 54,511 | $ 46,255 | ||||||
Loan-to-value ratios (greater than) | 100.00% | |||||||||
Debt service coverage ratios (less than) | 1 | |||||||||
Repurchase and Resale Agreements, Collateral, Percentage | 95.00% | |||||||||
Uncertain Tax Positions Measurement Percentage (greater than) | 50.00% | |||||||||
Charge related to change in estimate | [1] | $ (19,625) | (21,664) | (13,460) | ||||||
Cumulative effect of adoption | 9 | $ (14) | $ 0 | |||||||
Operating Lease, Right-of-Use Asset | 554 | |||||||||
Operating Lease, Liability | 594 | |||||||||
Deferred Tax Liability, Policyholders Dividends and Deferred Policy Acquisition | $ 1,365 | 733 | ||||||||
Securities Lending Transactions | Domestic operations | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Collateral for loaned securities | 102.00% | |||||||||
Securities Lending Transactions | Foreign operations | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Collateral for loaned securities | 105.00% | |||||||||
Minimum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Estimated useful life | 3 years | |||||||||
Maximum | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Estimated useful life | 40 years | |||||||||
ASU 2016-01 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of adoption | $ 57 | |||||||||
ASU 2016-02 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Operating Lease, Right-of-Use Asset | $ 600 | |||||||||
Operating Lease, Liability | 600 | |||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Accumulated other comprehensive income (loss) | 24,039 | 10,906 | 17,074 | 14,621 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 24,039 | 10,906 | 17,074 | 14,621 | ||||||
Cumulative effect of adoption | 7 | 1,653 | ||||||||
Accumulated Other Comprehensive Income (Loss) | ASU 2016-01 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of adoption | (847) | (847) | ||||||||
Retained Earnings | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 32,991 | $ 30,470 | 28,671 | $ 22,113 | ||||||
Cumulative effect of adoption | $ (21) | (1,653) | $ (5) | |||||||
Retained Earnings | ASU 2016-01 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of adoption | 904 | |||||||||
Subsequent Event | Retained Earnings | ASU 2016-13 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect of adoption | $ (100) | |||||||||
Accounts and Financing Receivable, after Allowance for Credit Loss | (152) | |||||||||
Deferred Tax Liability, Policyholders Dividends and Deferred Policy Acquisition | $ (52) | |||||||||
Restatement Adjustment | ASU 2016-01 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Retained Earnings (Accumulated Deficit) | 904 | |||||||||
Accumulated other comprehensive income (loss) | 847 | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 57 | |||||||||
Change in Accounting Method Accounted for as Change in Estimate | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Charge related to change in estimate | $ (237) | |||||||||
[1] | ||||||||||
[2] | Includes the impact from the adoption of ASU 2017-08 and 2017-12. See Note 2. |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | $ 346,574 | $ 331,745 | |
Fair Value | [1] | 391,096 | 353,656 |
Amortized Cost | [1] | 1,933 | 2,013 |
Fair Value | 2,302 | 2,372 | |
Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 346,574 | 331,745 | |
Gross Unrealized Gains | 45,837 | 28,302 | |
Gross Unrealized Losses | 1,315 | 6,391 | |
Fair Value | 391,096 | 353,656 | |
Amortized Cost | 1,933 | 2,013 | |
Gross Unrealized Gains | 369 | 359 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2,302 | 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 | 30,625 | 28,242 | |
Gross Unrealized Gains | 5,195 | 2,994 | |
Gross Unrealized Losses | 161 | 642 | |
Fair Value | 35,659 | 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 | 10,068 | 9,880 | |
Gross Unrealized Gains | 1,437 | 676 | |
Gross Unrealized Losses | 8 | 63 | |
Fair Value | 11,497 | 10,493 | |
Fixed maturities | Foreign government bonds | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 98,356 | 96,710 | |
Gross Unrealized Gains | 20,761 | 16,714 | |
Gross Unrealized Losses | 63 | 314 | |
Fair Value | 119,054 | 113,110 | |
Amortized Cost | 891 | 885 | |
Gross Unrealized Gains | 282 | 269 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,173 | 1,154 | |
Fixed maturities | U.S. public corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 87,566 | 82,257 | |
Gross Unrealized Gains | 11,030 | 3,912 | |
Gross Unrealized Losses | 257 | 2,754 | |
Fair Value | 98,339 | 83,415 | |
Fixed maturities | U.S. private corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 34,410 | 32,450 | |
Gross Unrealized Gains | 2,243 | 1,151 | |
Gross Unrealized Losses | 120 | 581 | |
Fair Value | 36,533 | 33,020 | |
Fixed maturities | Foreign public corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 26,841 | 27,671 | |
Gross Unrealized Gains | 3,054 | 2,061 | |
Gross Unrealized Losses | 70 | 531 | |
Fair Value | 29,825 | 29,201 | |
Amortized Cost | 649 | 668 | |
Gross Unrealized Gains | 64 | 64 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 713 | 732 | |
Fixed maturities | Foreign private corporate securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 27,619 | 25,314 | |
Gross Unrealized Gains | 1,201 | 434 | |
Gross Unrealized Losses | 580 | 1,217 | |
Fair Value | 28,240 | 24,531 | |
Amortized Cost | 83 | 95 | |
Gross Unrealized Gains | 2 | 3 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 85 | 98 | |
Fixed maturities | Asset-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 13,067 | 12,888 | |
Gross Unrealized Gains | 147 | 162 | |
Gross Unrealized Losses | 40 | 77 | |
Fair Value | 13,174 | 12,973 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 14,978 | 13,396 | |
Gross Unrealized Gains | 610 | 99 | |
Gross Unrealized Losses | 14 | 180 | |
Fair Value | 15,574 | 13,315 | |
Fixed maturities | Residential mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 3,044 | 2,937 | |
Gross Unrealized Gains | 159 | 99 | |
Gross Unrealized Losses | 2 | 32 | |
Fair Value | 3,201 | 3,004 | |
Amortized Cost | 310 | 365 | |
Gross Unrealized Gains | 21 | 23 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 331 | 388 | |
Available-for-sale | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 346,574 | ||
Fair Value | 391,096 | ||
Available-for-sale | 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 | 30,625 | ||
Fair Value | 35,659 | ||
Available-for-sale | 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 | 10,068 | ||
Fair Value | 11,497 | ||
Available-for-sale | Fixed maturities | Asset-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 13,067 | ||
Fair Value | 13,174 | ||
Available-for-sale | Fixed maturities | Commercial mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 14,978 | ||
Fair Value | 15,574 | ||
Available-for-sale | Fixed maturities | Residential mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 3,044 | ||
Fair Value | 3,201 | ||
Available-for-sale | OTTI | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
OTTI in AOCI | (119) | (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 | (34) | 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 | (6) | (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 | (1) | (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 | (77) | (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 | 362 | 356 | |
Held-to-maturity | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 1,933 | ||
Fair Value | 2,302 | ||
Held-to-maturity | Fixed maturities | Foreign government bonds | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 891 | ||
Fair Value | 1,173 | ||
Held-to-maturity | Fixed maturities | Residential mortgage-backed securities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 310 | ||
Fair Value | 331 | ||
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 | 4,751 | 4,216 | |
Prudential Netting Agreement | Fixed maturities | |||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |||
Amortized Cost | 4,998 | 4,879 | |
Fair Value | 5,401 | 4,879 | |
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 | 4,751 | 4,216 | |
Fair Value | $ 4,757 | $ 4,216 | |
[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 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | $ 21,898 | $ 79,899 |
Less Than Twelve Months, Gross Unrealized Loss | 437 | 3,108 |
Twelve Months or More, Fair Value | 15,006 | 46,570 |
Twelve Months or More, Gross Unrealized Losses | 878 | 3,283 |
Total, Fair Value | 36,904 | 126,469 |
Total, Gross Unrealized Losses | 1,315 | 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 | 4,950 | 3,007 |
Less Than Twelve Months, Gross Unrealized Loss | 161 | 67 |
Twelve Months or More, Fair Value | 267 | 6,986 |
Twelve Months or More, Gross Unrealized Losses | 0 | 575 |
Total, Fair Value | 5,217 | 9,993 |
Total, Gross Unrealized Losses | 161 | 642 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 273 | 1,725 |
Less Than Twelve Months, Gross Unrealized Loss | 8 | 25 |
Twelve Months or More, Fair Value | 0 | 999 |
Twelve Months or More, Gross Unrealized Losses | 0 | 38 |
Total, Fair Value | 273 | 2,724 |
Total, Gross Unrealized Losses | 8 | 63 |
Foreign government bonds | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 2,332 | 2,369 |
Less Than Twelve Months, Gross Unrealized Loss | 60 | 136 |
Twelve Months or More, Fair Value | 126 | 3,515 |
Twelve Months or More, Gross Unrealized Losses | 3 | 178 |
Total, Fair Value | 2,458 | 5,884 |
Total, Gross Unrealized Losses | 63 | 314 |
U.S. public corporate securities | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 3,944 | 34,064 |
Less Than Twelve Months, Gross Unrealized Loss | 85 | 1,570 |
Twelve Months or More, Fair Value | 2,203 | 13,245 |
Twelve Months or More, Gross Unrealized Losses | 172 | 1,184 |
Total, Fair Value | 6,147 | 47,309 |
Total, Gross Unrealized Losses | 257 | 2,754 |
U.S. private corporate securities | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 2,283 | 8,923 |
Less Than Twelve Months, Gross Unrealized Loss | 44 | 225 |
Twelve Months or More, Fair Value | 1,563 | 7,985 |
Twelve Months or More, Gross Unrealized Losses | 76 | 356 |
Total, Fair Value | 3,846 | 16,908 |
Total, Gross Unrealized Losses | 120 | 581 |
Foreign public corporate securities | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 1,271 | 7,363 |
Less Than Twelve Months, Gross Unrealized Loss | 23 | 308 |
Twelve Months or More, Fair Value | 496 | 2,928 |
Twelve Months or More, Gross Unrealized Losses | 47 | 223 |
Total, Fair Value | 1,767 | 10,291 |
Total, Gross Unrealized Losses | 70 | 531 |
Foreign private corporate securities | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 1,466 | 12,218 |
Less Than Twelve Months, Gross Unrealized Loss | 33 | 692 |
Twelve Months or More, Fair Value | 5,666 | 4,468 |
Twelve Months or More, Gross Unrealized Losses | 547 | 525 |
Total, Fair Value | 7,132 | 16,686 |
Total, Gross Unrealized Losses | 580 | 1,217 |
Asset-backed securities | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 3,979 | 8,255 |
Less Than Twelve Months, Gross Unrealized Loss | 12 | 70 |
Twelve Months or More, Fair Value | 4,433 | 669 |
Twelve Months or More, Gross Unrealized Losses | 28 | 7 |
Total, Fair Value | 8,412 | 8,924 |
Total, Gross Unrealized Losses | 40 | 77 |
Commercial mortgage-backed securities | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 1,193 | 1,781 |
Less Than Twelve Months, Gross Unrealized Loss | 10 | 14 |
Twelve Months or More, Fair Value | 164 | 4,733 |
Twelve Months or More, Gross Unrealized Losses | 4 | 166 |
Total, Fair Value | 1,357 | 6,514 |
Total, Gross Unrealized Losses | 14 | 180 |
Residential mortgage-backed securities | ||
Debt Securities[Line Items] | ||
Less Than Twelve Months, Fair Value | 207 | 194 |
Less Than Twelve Months, Gross Unrealized Loss | 1 | 1 |
Twelve Months or More, Fair Value | 88 | 1,042 |
Twelve Months or More, Gross Unrealized Losses | 1 | 31 |
Total, Fair Value | 295 | 1,236 |
Total, Gross Unrealized Losses | $ 2 | $ 32 |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Available for Sale, Amortized Cost | |||
Due in one year or less | $ 12,287 | ||
Due after one year through five years | 51,942 | ||
Due after five years through ten years | 68,965 | ||
Due after ten years | 182,291 | ||
Amortized Cost | 346,574 | $ 331,745 | |
Available-for-Sale, Fair Value | |||
Due in one year or less | 12,816 | ||
Due after one year through five years | 55,160 | ||
Due after five years through ten years | 75,506 | ||
Due after ten years | 215,665 | ||
Fair Value | [1] | 391,096 | 353,656 |
Held-to-Maturity, Amortized Cost | |||
Due in one year or less | 29 | ||
Due after one year through five years | 114 | ||
Due after five years through ten years | 592 | ||
Due after ten years | 888 | ||
Amortized Cost | [1] | 1,933 | 2,013 |
Held-to-Maturity, Fair Value | |||
Due in one year or less | 29 | ||
Due after one year through five years | 116 | ||
Due after five years through ten years | 657 | ||
Due after ten years | 1,169 | ||
Fixed maturities, held to maturity, fair value | 2,302 | 2,372 | |
Asset-backed securities | |||
Available for Sale, Amortized Cost | |||
Debt Maturities, without single maturity date | 13,067 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 13,174 | ||
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 | 14,978 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 15,574 | ||
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 | 3,044 | ||
Available-for-Sale, Fair Value | |||
Debt Maturities, without Single Maturity Date | 3,201 | ||
Held-to-Maturity, Amortized Cost | |||
Debt Maturities, without Single Maturity Date | 310 | ||
Held-to-Maturity, Fair Value | |||
Debt Maturities, without Single Maturity Date | 331 | ||
Prudential Netting Agreement | U.S. private corporate securities | |||
Available-for-Sale, Fair Value | |||
Fair Value | 4,751 | 4,216 | |
Fixed maturities | |||
Available for Sale, Amortized Cost | |||
Amortized Cost | 346,574 | 331,745 | |
Available-for-Sale, Fair Value | |||
Fair Value | 391,096 | 353,656 | |
Held-to-Maturity, Amortized Cost | |||
Amortized Cost | 1,933 | 2,013 | |
Held-to-Maturity, Fair Value | |||
Fixed maturities, held to maturity, fair value | 2,302 | 2,372 | |
Fixed maturities | U.S. private corporate securities | |||
Available for Sale, Amortized Cost | |||
Amortized Cost | 34,410 | 32,450 | |
Available-for-Sale, Fair Value | |||
Fair Value | 36,533 | 33,020 | |
Fixed maturities | Asset-backed securities | |||
Available for Sale, Amortized Cost | |||
Amortized Cost | 13,067 | 12,888 | |
Available-for-Sale, Fair Value | |||
Fair Value | 13,174 | 12,973 | |
Fixed maturities | Commercial mortgage-backed securities | |||
Available for Sale, Amortized Cost | |||
Amortized Cost | 14,978 | 13,396 | |
Available-for-Sale, Fair Value | |||
Fair Value | 15,574 | 13,315 | |
Fixed maturities | Residential mortgage-backed securities | |||
Available for Sale, Amortized Cost | |||
Amortized Cost | 3,044 | 2,937 | |
Available-for-Sale, Fair Value | |||
Fair Value | 3,201 | 3,004 | |
Held-to-Maturity, Amortized Cost | |||
Amortized Cost | 310 | 365 | |
Held-to-Maturity, Fair Value | |||
Fixed maturities, held to maturity, fair value | 331 | 388 | |
Fixed maturities | Foreign private corporate securities | |||
Available for Sale, Amortized Cost | |||
Amortized Cost | 27,619 | 25,314 | |
Available-for-Sale, Fair Value | |||
Fair Value | 28,240 | 24,531 | |
Held-to-Maturity, Amortized Cost | |||
Amortized Cost | 83 | 95 | |
Held-to-Maturity, Fair Value | |||
Fixed maturities, held to maturity, fair value | 85 | 98 | |
Fixed maturities | Prudential Netting Agreement | |||
Held-to-Maturity, Amortized Cost | |||
Amortized Cost | 4,998 | 4,879 | |
Held-to-Maturity, Fair Value | |||
Fixed maturities, held to maturity, fair value | 5,401 | 4,879 | |
Fixed maturities | Prudential Netting Agreement | U.S. private corporate securities | |||
Available for Sale, Amortized Cost | |||
Amortized Cost | 4,751 | 4,216 | |
Available-for-Sale, Fair Value | |||
Fair Value | $ 4,757 | $ 4,216 | |
[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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities[Line Items] | |||
Proceeds from maturities/prepayments - AFS | $ 52,306 | $ 59,675 | $ 58,244 |
Proceeds from maturities/prepayments | 100 | 94 | 155 |
Fixed maturities | Available-for-sale | |||
Debt Securities[Line Items] | |||
Proceeds from sales | 32,283 | 38,230 | 34,002 |
Proceeds from maturities/prepayments - AFS | 20,036 | 21,207 | 24,460 |
Gross investment gains from sales and maturities | 1,715 | 1,412 | 1,548 |
Gross investment losses from sales and maturities | (434) | (905) | (700) |
OTTI recognized in earnings | (315) | (279) | (267) |
Fixed maturities | Held-to-maturity | |||
Debt Securities[Line Items] | |||
Proceeds from maturities/prepayments | 99 | 94 | 153 |
Fixed maturities | Available-for-sale | |||
Debt Securities[Line Items] | |||
Noncash Part Noncash Divestiture, Amount of Consideration Received | 13 | (238) | 218 |
Fixed maturities | Held-to-maturity | |||
Debt Securities[Line Items] | |||
Noncash Part Noncash Divestiture, Amount of Consideration Received | $ (1) | $ (1) | $ (2) |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance in OCI, beginning of period | $ 140 | $ 319 |
New credit loss impairments | 61 | 1 |
Additional credit loss impairments on securities previously impaired | 12 | 0 |
Increases due to the passage of time on previously recorded credit losses | 6 | 10 |
Reductions for securities which matured, paid down, prepaid or were sold during the period | (44) | (162) |
Reductions for securities impaired to fair value during the period | (12) | (24) |
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | (4) | (4) |
Balance in OCI, ending of period | $ 159 | $ 140 |
Investments (Assets Supporting
Investments (Assets Supporting Experience-Rated Contractholder Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost | $ 20,646 | $ 21,299 | |
Assets supporting experience-rated contractholder liabilities, at fair value | [1] | 21,597 | 21,254 |
Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost | 18,904 | 19,706 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 19,530 | 19,579 | |
Equity securities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost | 1,465 | 1,378 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,790 | 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 | 277 | 215 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 277 | 215 | |
Corporate securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost | 13,143 | 13,258 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 13,603 | 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 | 1,845 | 2,346 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,896 | 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 | 1,134 | 828 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,158 | 811 | |
Asset-backed securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost | 1,639 | 1,649 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,662 | 1,665 | |
Foreign government bonds | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost | 802 | 1,087 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 814 | 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 | 341 | 538 | |
Assets supporting experience-rated contractholder liabilities, at fair value | $ 397 | $ 577 | |
Public Securities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost percentage | 77.00% | 78.00% | |
Collateralized loan obligations | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at fair value | $ 1,060 | $ 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 | 94.00% | 93.00% | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Investment [Line Items] | ||||
Fixed maturities, available-for-sale: | [1] | $ 391,096 | $ 353,656 | |
Assets supporting experience-rated contractholder liabilities | 20,646 | 21,299 | ||
Fair value of collateral | 7,729 | 5,309 | ||
Other invested assets | [1] | 15,606 | 14,526 | |
Consolidated feeder funds’ investments | 428 | 349 | ||
Unaffiliated interest | 230 | 199 | ||
Master funds gross assets | 89,313 | 122,376 | ||
Master funds gross liabilities | 86,471 | 119,697 | ||
Fixed maturities | ||||
Investment [Line Items] | ||||
Gross unrealized losses | 1,315 | 6,391 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 878 | 3,283 | ||
Fixed maturities, available-for-sale: | 391,096 | 353,656 | ||
Assets supporting experience-rated contractholder liabilities | 18,904 | 19,706 | ||
Corporate securities | ||||
Investment [Line Items] | ||||
Gross unrealized losses of twelve months or more concentrated in various sectors | 878 | 3,283 | ||
Equity securities | ||||
Investment [Line Items] | ||||
Assets supporting experience-rated contractholder liabilities | 1,465 | 1,378 | ||
Other Income | Equity securities | ||||
Investment [Line Items] | ||||
Unrealized Gain (Loss) on Investments | 943 | (1,157) | ||
Other Income | Assets supporting experience-rated contractholder liabilities | ||||
Investment [Line Items] | ||||
Unrealized Gain (Loss) on Investments | 996 | (778) | $ 300 | |
Other Comprehensive Income (Loss) | Equity securities | ||||
Investment [Line Items] | ||||
Unrealized Gain (Loss) on Investments | $ (494) | |||
Investments | ||||
Investment [Line Items] | ||||
Fair value of collateral | 1,012 | 986 | ||
Cash | ||||
Investment [Line Items] | ||||
Fair value of collateral | 6,717 | 4,323 | ||
Carrying value of non-income producing assets | ||||
Investment [Line Items] | ||||
Fixed maturities, available-for-sale: | 204 | |||
Assets supporting experience-rated contractholder liabilities | 27 | |||
Investment Real Estate | $ 1 | |||
California | ||||
Investment [Line Items] | ||||
Commercial mortgage loan, concentration percentage | 27.00% | |||
Texas | ||||
Investment [Line Items] | ||||
Commercial mortgage loan, concentration percentage | 9.00% | |||
New York | ||||
Investment [Line Items] | ||||
Commercial mortgage loan, concentration percentage | 8.00% | |||
Europe | ||||
Investment [Line Items] | ||||
Commercial mortgage loan, concentration percentage | 7.00% | |||
Australia | ||||
Investment [Line Items] | ||||
Commercial mortgage loan, concentration percentage | 1.00% | |||
Asia | ||||
Investment [Line Items] | ||||
Commercial mortgage loan, concentration percentage | 1.00% | |||
NAIC High or Highest Quality Rating | Fixed maturities | ||||
Investment [Line Items] | ||||
Gross unrealized losses | $ 973 | 5,391 | ||
NAIC Other Than High or Highest Quality Rating | Fixed maturities | ||||
Investment [Line Items] | ||||
Gross unrealized losses | $ 342 | $ 1,000 | ||
[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 | Dec. 31, 2019 | Dec. 31, 2018 |
Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration of credit risk at amortized cost | $ 75,663 | $ 73,529 |
Concentration of credit risk at fair value | 91,376 | 86,307 |
Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration of credit risk at amortized cost | 10,838 | 10,354 |
Concentration of credit risk at fair value | 13,338 | 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] | ||
Concentration of credit risk at amortized cost | 653 | 691 |
Concentration of credit risk at fair value | 664 | 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] | ||
Concentration of credit risk at amortized cost | 15 | 15 |
Concentration 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] | ||
Concentration of credit risk at amortized cost | 74,118 | 71,952 |
Concentration of credit risk at fair value | 89,546 | 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] | ||
Concentration of credit risk at amortized cost | 10,823 | 10,339 |
Concentration of credit risk at fair value | 13,322 | 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] | ||
Concentration of credit risk at amortized cost | 869 | 864 |
Concentration of credit risk at fair value | 1,143 | 1,127 |
Trading | Fixed Maturities | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentration of credit risk at amortized cost | 23 | 22 |
Concentration of credit risk at fair value | $ 23 | $ 22 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 62,835 | $ 59,124 |
Other loans | 845 | 834 |
Total commercial mortgage and other loans | $ 63,559 | $ 59,830 |
% of Total | 100.00% | 100.00% |
Net carrying value of commercial loans held for sale | $ 228 | $ 763 |
Commercial Mortgage Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 59,363 | $ 55,808 |
% of Total | 94.50% | 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 | $ (117) | $ (123) |
Total net loans | 62,718 | 59,001 |
Uncollateralized loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 656 | 660 |
Residential property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 124 | 157 |
Other collateralized loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 65 | 17 |
Other loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Total net loans | 841 | 829 |
Allowance for credit losses, Other loans | (4) | (5) |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 13,462 | $ 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 | $ 8,379 | $ 8,639 |
% of Total | 13.30% | 14.60% |
Apartment/Multi-Family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 17,348 | $ 16,538 |
% of Total | 27.60% | 28.00% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 13,226 | $ 11,574 |
% of Total | 21.10% | 19.60% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 2,415 | $ 1,931 |
% of Total | 3.90% | 3.30% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 4,533 | $ 3,846 |
% of Total | 7.20% | 6.50% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 3,472 | $ 3,316 |
% of Total | 5.50% | 5.60% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | $ 128 | $ 106 | $ 106 |
Addition to (release of) allowance for credit losses | (6) | 22 | 1 |
Charge-offs, net of recoveries | (1) | 0 | (1) |
Change in foreign exchange | 0 | 0 | 0 |
Total ending balance | 121 | 128 | 106 |
Commercial Mortgage Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 120 | 97 | 96 |
Addition to (release of) allowance for credit losses | (5) | 23 | 2 |
Charge-offs, net of recoveries | (1) | 0 | (1) |
Change in foreign exchange | 0 | 0 | 0 |
Total ending balance | 114 | 120 | 97 |
Agricultural Property Loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 3 | 3 | 2 |
Addition to (release of) allowance for credit losses | 0 | 0 | 1 |
Charge-offs, net of recoveries | 0 | 0 | 0 |
Change in foreign exchange | 0 | 0 | 0 |
Total ending balance | 3 | 3 | 3 |
Residential property loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 0 | 1 | 2 |
Addition to (release of) allowance for credit losses | 0 | (1) | (1) |
Charge-offs, net of recoveries | 0 | 0 | 0 |
Change in foreign exchange | 0 | 0 | 0 |
Total ending balance | 0 | 0 | 1 |
Other collateralized loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 0 | 0 | 0 |
Addition to (release of) allowance for credit losses | 0 | 0 | 0 |
Charge-offs, net of recoveries | 0 | 0 | 0 |
Change in foreign exchange | 0 | 0 | 0 |
Total ending balance | 0 | 0 | 0 |
Uncollateralized loans | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of year | 5 | 5 | 6 |
Addition to (release of) allowance for credit losses | (1) | 0 | (1) |
Charge-offs, net of recoveries | 0 | 0 | 0 |
Change in foreign exchange | 0 | 0 | 0 |
Total ending balance | $ 4 | $ 5 | $ 5 |
Investments (Allowance for Cr_2
Investments (Allowance for Credit Losses and Recorded Investment) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for credit losses: | ||||
Individually evaluated for impairment | $ 7 | $ 19 | ||
Collectively evaluated for impairment | 114 | 109 | ||
Total ending balance | 121 | 128 | $ 106 | $ 106 |
Recorded Investment: | ||||
Individually evaluated for impairment | 80 | 104 | ||
Collectively evaluated for impairment | 63,600 | 59,854 | ||
Total ending balance | 63,680 | 59,958 | ||
Commercial Mortgage Loans | ||||
Allowance for credit losses: | ||||
Individually evaluated for impairment | 7 | 19 | ||
Collectively evaluated for impairment | 107 | 101 | ||
Total ending balance | 114 | 120 | 97 | 96 |
Recorded Investment: | ||||
Individually evaluated for impairment | 65 | 67 | ||
Collectively evaluated for impairment | 59,298 | 55,741 | ||
Total ending balance | 59,363 | 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 | 2 |
Recorded Investment: | ||||
Individually evaluated for impairment | 15 | 35 | ||
Collectively evaluated for impairment | 3,457 | 3,281 | ||
Total ending balance | 3,472 | 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 | 2 |
Recorded Investment: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 124 | 157 | ||
Total ending balance | 124 | 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 | 0 |
Recorded Investment: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 65 | 17 | ||
Total ending balance | 65 | 17 | ||
Uncollateralized loans | ||||
Allowance for credit losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 4 | 5 | ||
Total ending balance | 4 | 5 | $ 5 | $ 6 |
Recorded Investment: | ||||
Individually evaluated for impairment | 0 | 2 | ||
Collectively evaluated for impairment | 656 | 658 | ||
Total ending balance | 656 | 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | $ 59,363 | $ 55,808 |
Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 3,472 | 3,316 |
Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 62,835 | 59,124 |
0%-59.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 31,945 | 31,024 |
0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 3,360 | 3,252 |
0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 35,305 | 34,276 |
60%-69.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 18,277 | 17,159 |
60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 112 | 64 |
60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 18,389 | 17,223 |
70%-79.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 8,767 | 7,119 |
70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 8,767 | 7,119 |
80% or greater | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 374 | 506 |
80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 374 | 506 |
≥ 1.2X | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 56,346 | 53,519 |
≥ 1.2X | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 3,401 | 3,061 |
≥ 1.2X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 59,747 | 56,580 |
≥ 1.2X | 0%-59.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 31,027 | 30,325 |
≥ 1.2X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 3,289 | 2,997 |
≥ 1.2X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 34,316 | 33,322 |
≥ 1.2X | 60%-69.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 17,090 | 16,538 |
≥ 1.2X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 112 | 64 |
≥ 1.2X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 17,202 | 16,602 |
≥ 1.2X | 70%-79.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 8,020 | 6,324 |
≥ 1.2X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
≥ 1.2X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 8,020 | 6,324 |
≥ 1.2X | 80% or greater | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 209 | 332 |
≥ 1.2X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
≥ 1.2X | 80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 209 | 332 |
1.0X to 1.2X | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 2,708 | 2,055 |
1.0X to 1.2X | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 57 | 198 |
1.0X to 1.2X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 2,765 | 2,253 |
1.0X to 1.2X | 0%-59.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 701 | 538 |
1.0X to 1.2X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 57 | 198 |
1.0X to 1.2X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 758 | 736 |
1.0X to 1.2X | 60%-69.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 1,145 | 621 |
1.0X to 1.2X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
1.0X to 1.2X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 1,145 | 621 |
1.0X to 1.2X | 70%-79.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 719 | 754 |
1.0X to 1.2X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
1.0X to 1.2X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 719 | 754 |
1.0X to 1.2X | 80% or greater | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 143 | 142 |
1.0X to 1.2X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
1.0X to 1.2X | 80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 143 | 142 |
Less than 1.0X | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 309 | 234 |
Less than 1.0X | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 14 | 57 |
Less than 1.0X | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 323 | 291 |
Less than 1.0X | 0%-59.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 217 | 161 |
Less than 1.0X | 0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 14 | 57 |
Less than 1.0X | 0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 231 | 218 |
Less than 1.0X | 60%-69.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 42 | 0 |
Less than 1.0X | 60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
Less than 1.0X | 60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 42 | 0 |
Less than 1.0X | 70%-79.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 28 | 41 |
Less than 1.0X | 70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
Less than 1.0X | 70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 28 | 41 |
Less than 1.0X | 80% or greater | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 22 | 32 |
Less than 1.0X | 80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | 0 | 0 |
Less than 1.0X | 80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Recorded investment gross of allowance | $ 22 | $ 32 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 63,663 | $ 59,940 |
Total Past Due | 17 | 18 |
Total Loans | 63,680 | 59,958 |
Non-Accrual Status | 59 | 87 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2 | 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 | 15 | 17 |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 59,363 | 55,808 |
Total Past Due | 0 | 0 |
Total Loans | 59,363 | 55,808 |
Non-Accrual Status | 44 | 66 |
Commercial Mortgage Loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 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 | 3,458 | 3,301 |
Total Past Due | 14 | 15 |
Total Loans | 3,472 | 3,316 |
Non-Accrual Status | 13 | 18 |
Agricultural property loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | 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 | 13 | 15 |
Residential property loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 121 | 154 |
Total Past Due | 3 | 3 |
Total Loans | 124 | 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 | 65 | 17 |
Total Past Due | 0 | 0 |
Total Loans | 65 | 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 | 656 | 660 |
Total Past Due | 0 | 0 |
Total Loans | 656 | 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 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Invested Assets | |||
Other invested assets | [1] | $ 15,606 | $ 14,526 |
LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | 11,157 | 9,841 | |
Real estate held through direct ownership | |||
Other Invested Assets | |||
Other invested assets | 2,388 | 2,466 | |
Derivative Instruments | |||
Other Invested Assets | |||
Other invested assets | 877 | 1,155 | |
Other | |||
Other Invested Assets | |||
Other invested assets | 1,184 | 1,064 | |
Mortgage Debt | Real estate-related | |||
Other Invested Assets | |||
Other invested assets | 537 | 776 | |
Equity method | LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | 6,944 | 5,726 | |
Equity method | Private equity | LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | 3,625 | 3,182 | |
Equity method | Hedge funds | LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | 1,947 | 1,337 | |
Equity method | Real estate-related | LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | 1,372 | 1,207 | |
Fair Value | |||
Other Invested Assets | |||
Other invested assets | 36 | 40 | |
Fair Value | LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | 4,213 | 4,115 | |
Fair Value | Private equity | LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | 1,705 | 1,684 | |
Fair Value | Hedge funds | LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | 2,172 | 2,135 | |
Fair Value | Real estate-related | LPs/LLCs | |||
Other Invested Assets | |||
Other invested assets | $ 336 | $ 296 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Equity Method Inve
Investments (Equity Method Investments, Statement of Financial Position) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Total assets | $ 313,828 | $ 78,546 |
Total liabilities | 19,274 | 8,293 |
Partners’ capital | 294,554 | 70,253 |
Total liabilities and partners’ capital | 313,828 | 78,546 |
Total liabilities and partners’ capital included above | 7,438 | 6,265 |
Equity in LP/LLC interests not included above | 814 | 790 |
Carrying value | $ 8,252 | $ 7,055 |
Investments (Equity Method In_2
Investments (Equity Method Investments, Statement of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments [Abstract] | |||
Total revenue | $ 11,430 | $ 6,264 | $ 6,392 |
Total expenses | (5,800) | (3,222) | (2,300) |
Net earnings (losses) | 5,630 | 3,042 | 4,092 |
Equity in net earnings (losses) included above | 525 | 233 | 409 |
Equity in net earnings (losses) of LP/LLC interests not included above | 11 | 14 | 123 |
Total equity in net earnings (losses) | $ 536 | $ 247 | $ 532 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | $ 18,577 | $ 17,082 | $ 17,198 |
Less: investment expenses | (992) | (906) | (763) |
Net investment income | 17,585 | 16,176 | 16,435 |
Assets supporting experience-rated contractholder liabilities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 731 | 722 | 736 |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 160 | 164 | 398 |
Commercial mortgage and other loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 2,584 | 2,352 | 2,267 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 619 | 622 | 617 |
Other invested assets | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 1,005 | 519 | 1,117 |
Short-term investments and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 453 | 345 | 203 |
Available-for-sale | Fixed Maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 12,644 | 11,989 | 11,482 |
Held-to-maturity | Fixed Maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | 232 | 226 | 215 |
Trading | Fixed Maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross Investment Income | $ 149 | $ 143 | $ 163 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses), net | $ (459) | $ 1,977 | $ 432 |
Fixed Maturities | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses), net | 966 | 228 | 581 |
Equity securities | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses), net | 0 | 0 | 1,066 |
Commercial mortgage and other loans | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses), net | 44 | 49 | 70 |
Investment Real Estate | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses), net | 78 | 84 | 12 |
LPs/LLCs | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses), net | (38) | 17 | (23) |
Derivatives | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses), net | (1,513) | 1,597 | (1,275) |
Other | |||
Gain (Loss) on Securities [Line Items] | |||
Realized investment gains (losses), net | $ 4 | $ 2 | $ 1 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments by Asset Class) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | $ 45,339 | $ 22,720 | $ 36,398 |
Fixed Maturities | Available-for-sale | OTTI | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 243 | 190 | 286 |
Fixed Maturities | Available-for-sale | All Other | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 44,279 | 21,721 | 34,109 |
Equity securities | Available-for-sale | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 0 | 0 | 2,027 |
Derivatives designated as cash flow hedges | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | 832 | 811 | (39) |
Other Investments | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | (15) | $ (2) | $ 15 |
Other Investments | Held-to-maturity | |||
Gain (Loss) on Securities [Line Items] | |||
Net Unrealized Gains (Losses) on Investments | $ 0 |
Investments (Repurchase Agreeme
Investments (Repurchase Agreements and Securities Lending Transactions) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | $ 9,681 | $ 9,950 |
Total cash collateral for loaned securities | 4,213 | 3,929 |
Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 9,681 | 9,779 |
Total cash collateral for loaned securities | 4,213 | 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 | 0 | 171 |
Total cash collateral for loaned securities | 0 | 0 |
30 days or greater | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 0 | 0 |
Total cash collateral for loaned securities | 0 | 0 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 9,431 | 9,589 |
Total cash collateral for loaned securities | 9 | 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 | 9,431 | 9,418 |
Total cash collateral for loaned securities | 9 | 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 | 0 | 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 | 33 | 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 | 33 | 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 | 244 | 325 |
Foreign government bonds | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 244 | 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 | 2,996 | 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 | 2,996 | 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 | 762 | 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 | 762 | 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 |
Commercial mortgage-backed securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 2 | 0 |
Commercial mortgage-backed securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 2 | 0 |
Commercial mortgage-backed 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 | 250 | 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 | 250 | 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 | 167 | 155 |
Equity securities | Overnight & Continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 167 | 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 |
Investments (Securities Pledged
Investments (Securities Pledged) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | $ 18,724 | $ 18,405 |
Total liabilities supported by the pledged collateral | 16,518 | 16,746 |
Fixed maturities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 15,109 | 15,319 |
Assets supporting experience-rated contractholder liabilities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 22 | 123 |
Separate account assets | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 2,547 | 2,811 |
Equity securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 543 | 152 |
Securities sold under agreements to repurchase | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total liabilities supported by the pledged collateral | 9,681 | 9,950 |
Cash collateral for loaned securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total liabilities supported by the pledged collateral | 4,213 | 3,929 |
Separate account liabilities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total liabilities supported by the pledged collateral | 2,624 | 2,867 |
Other | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | 445 | 0 |
Trading | Fixed maturities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Total securities pledged | $ 58 | $ 0 |
Investments (Assets on Deposit,
Investments (Assets on Deposit, Held in Trust and Restricted as to Sale) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets on Deposit, Held in Trust and Restricted as to Sale [Line Items] | ||
Assets on deposit with governmental authorities or trustees | $ 30 | $ 27 |
Assets held in voluntary trusts | 58 | 609 |
Assets held in trust related to reinsurance and other agreements | 14,897 | 13,259 |
Securities restricted as to sale | 36 | 40 |
Total assets on deposit, assets held in trust and securities restricted as to sale | 15,021 | 13,935 |
Wholly-owned subsidiaries | ||
Assets on Deposit, Held in Trust and Restricted as to Sale [Line Items] | ||
Assets held in trust related to reinsurance and other agreements | $ 21,700 | $ 16,100 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Total derivative assets | $ 867 | $ 1,148 | |
Total derivative liabilities | 831 | 127 | |
Anticipated pre-tax loss reclassified from accumulated other comprehensive income (loss) to earnings | $ 261 | ||
Maximum Length of Time Hedged in Cash Flow Hedge (future cash flows) | 10 years | ||
Net investment hedges income (loss) before taxes | $ 536 | 532 | $ 526 |
Derivative [Line Items] | |||
Credit protection derivatives outstanding notional amounts | 6 | 145 | |
Purchased credit protection, Liability | 0 | 1 | |
Single Name | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 100 | 110 | |
Fair value asset (liability) | 1 | ||
Credit Derivatives Written Max Length Of Maturities (less than) | 1 year | ||
Single Name | NAIC 1 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 36 | ||
Single Name | NAIC 2 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 60 | ||
Single Name | NAIC 3 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 4 | ||
Credit Default Index | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 692 | 4,953 | |
Fair value asset (liability) | $ 20 | $ 10 | |
Credit Derivatives Written Max Length Of Maturities (less than) | 28 years | ||
Credit Default Index | NAIC 1 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 50 | ||
Credit Default Index | NAIC 3 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | 570 | ||
Credit Default Index | NAIC 6 | |||
Derivative [Line Items] | |||
Credit Derivative, Maximum Exposure, Undiscounted | $ 72 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional | $ 379,860 | $ 405,644 |
Assets | 14,386 | 10,480 |
Liabilities | (7,536) | (5,408) |
Net Embedded Derivative Liability | 14,035 | 8,959 |
Derivatives Designated as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 27,669 | 25,931 |
Assets | 2,121 | 1,877 |
Liabilities | (433) | (427) |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 3,257 | 3,885 |
Assets | 628 | 305 |
Liabilities | (73) | (67) |
Derivatives Designated as Hedge Accounting Instruments: | Interest Rate Forwards | ||
Derivative [Line Items] | ||
Notional | 205 | 600 |
Assets | 4 | 26 |
Liabilities | (1) | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 1,461 | 722 |
Assets | 22 | 26 |
Liabilities | (57) | (2) |
Derivatives Designated as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 22,746 | 20,724 |
Assets | 1,467 | 1,520 |
Liabilities | (302) | (358) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | ||
Derivative [Line Items] | ||
Notional | 352,191 | 379,713 |
Assets | 12,265 | 8,603 |
Liabilities | (7,103) | (4,981) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Notional | 141,162 | 140,963 |
Assets | 10,249 | 5,792 |
Liabilities | (4,861) | (3,435) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Forwards | ||
Derivative [Line Items] | ||
Notional | 2,218 | 5,049 |
Assets | 18 | 72 |
Liabilities | (3) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Forwards | ||
Derivative [Line Items] | ||
Notional | 26,604 | 19,849 |
Assets | 208 | 246 |
Liabilities | (214) | (138) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Options | ||
Derivative [Line Items] | ||
Notional | 0 | 2 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Foreign Currency Swaps | ||
Derivative [Line Items] | ||
Notional | 13,874 | 13,784 |
Assets | 740 | 773 |
Liabilities | (345) | (421) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Futures | ||
Derivative [Line Items] | ||
Notional | 17,095 | 13,991 |
Assets | 4 | 23 |
Liabilities | (38) | (2) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate Options | ||
Derivative [Line Items] | ||
Notional | 16,496 | 24,002 |
Assets | 339 | 147 |
Liabilities | (238) | (314) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit Default Swaps | ||
Derivative [Line Items] | ||
Notional | 798 | 5,207 |
Assets | 21 | 33 |
Liabilities | 0 | (23) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Futures | ||
Derivative [Line Items] | ||
Notional | 1,802 | 1,141 |
Assets | 0 | 0 |
Liabilities | (3) | (8) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity Options | ||
Derivative [Line Items] | ||
Notional | 32,657 | 58,693 |
Assets | 679 | 384 |
Liabilities | (765) | (554) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Total Return Swaps | ||
Derivative [Line Items] | ||
Notional | 18,218 | 17,309 |
Assets | 6 | 1,131 |
Liabilities | (636) | (86) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other | ||
Derivative [Line Items] | ||
Notional | 1,258 | 508 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Synthetic GICs | ||
Derivative [Line Items] | ||
Notional | 80,009 | 79,215 |
Assets | 1 | 2 |
Liabilities | $ 0 | $ 0 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Hedged Item Offset By Derivatives Achieving Fair Value Hedge Accounting) (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Fixed maturities, available-for-sale: | [1] | $ 391,096 | $ 353,656 |
Commercial mortgage and other loans | [1] | 63,559 | 59,830 |
Policyholders’ account balances | (152,110) | (150,338) | |
Future policy benefits | (293,527) | $ (273,846) | |
Carrying Amount of the Hedged Assets (Liabilities) | |||
Derivative [Line Items] | |||
Fixed maturities, available-for-sale: | 389 | ||
Commercial mortgage and other loans | 23 | ||
Policyholders’ account balances | (1,376) | ||
Future policy benefits | (676) | ||
Cumulative Adjustment Included in Carrying Amount | |||
Derivative [Line Items] | |||
Fixed maturities, available-for-sale: | 64 | ||
Commercial mortgage and other loans | 2 | ||
Policyholders’ account balances | (107) | ||
Future policy benefits | $ (172) | ||
[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 | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 14,303 | $ 10,407 |
Gross Amounts Offset in the Statements of Financial Position | (13,519) | (9,331) |
Net Amounts Presented in the Statements of Financial Position | 784 | 1,076 |
Financial Instruments/Collateral | (607) | (614) |
Net Amount | 177 | 462 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 1,012 | 986 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 1,012 | 986 |
Financial Instruments/Collateral | (1,012) | (986) |
Net Amount | 0 | 0 |
Total Assets | ||
Gross Amounts of Recognized Financial Instruments | 15,315 | 11,393 |
Gross Amounts Offset in the Statements of Financial Position | (13,519) | (9,331) |
Net Amounts Presented in the Statements of Financial Position | 1,796 | 2,062 |
Financial Instruments/Collateral | (1,619) | (1,600) |
Net Amount | 177 | 462 |
Derivative Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 7,528 | 5,387 |
Gross Amounts Offset in the Statement of Financial Position | (6,705) | (5,281) |
Net Amounts Presented in the Statement of Financial Position | 823 | 106 |
Financial Instruments/Collateral | (244) | (45) |
Net Amount | 579 | 61 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 9,681 | 9,950 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 9,681 | 9,950 |
Financial Instruments/Collateral | (9,681) | (9,950) |
Net Amount | 0 | 0 |
Total Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 17,209 | 15,337 |
Gross Amounts Offset in the Statement of Financial Position | (6,705) | (5,281) |
Net Amounts Presented in the Statement of Financial Position | 10,504 | 10,056 |
Financial Instruments/Collateral | (9,925) | (9,995) |
Net Amount | $ 579 | $ 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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ (92) | $ 259 | $ (308) |
Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (1) | (3) |
Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 8 | 14 | (1) |
Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 15 | 4 | 0 |
AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 16 | 856 | (1,364) |
Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1,506) | 1,584 | (1,272) |
Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 298 | 242 | 212 |
Fair Value Hedged Item | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 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 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 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 | (186) | 79 | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 8 | 14 | (1) |
Fair Value Hedged Item | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (140) | (31) | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 15 | 4 | 0 |
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 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 0 | 0 | 0 |
Fair Value Hedged Item | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 12 | (32) | (12) |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | (2) | (6) | (2) |
Fair Value Hedged Item | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 23 | 34 | 42 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 16 | 25 | 23 |
Fair Value Hedged Item | Interest Rate | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Fair Value Hedged Item | Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Fair Value Hedged Item | Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (186) | 79 | 0 |
Fair Value Hedged Item | Interest Rate | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (140) | (31) | 0 |
Fair Value Hedged Item | Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Fair Value Hedged Item | Interest Rate | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 11 | (27) | (18) |
Fair Value Hedged Item | Interest Rate | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 20 | 31 | 37 |
Fair Value Hedged Item | Currency | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Fair Value Hedged Item | Currency | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Fair Value Hedged Item | Currency | 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 |
Fair Value Hedged Item | Currency | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Fair Value Hedged Item | Currency | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 |
Fair Value Hedged Item | Currency | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 1 | (5) | 6 |
Fair Value Hedged Item | Currency | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 3 | 3 | 5 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 194 | (65) | (1) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 155 | 35 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (14) | 26 | 10 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (7) | (9) | (19) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 194 | (65) | (1) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 155 | 35 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (14) | 20 | 16 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Interest Rate | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (7) | (9) | (19) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 6 | (6) |
Derivatives Designated as Hedge Accounting Instruments: | Fair value hedges | Currency | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (97) | 257 | (303) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (1) | (3) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 12 | 850 | (1,355) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 194 | 78 | 98 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 282 | 217 | 189 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (1) | (3) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (25) | 32 | 7 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 58 | 2 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Interest Rate | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (62) | 20 | (3) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 6 | 7 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (97) | 257 | (303) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 99 | 798 | (1,359) |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 130 | 69 | 98 |
Derivatives Designated as Hedge Accounting Instruments: | Cash flow hedges | Currency/Interest Rate | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 282 | 217 | 189 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 4 | 6 | (9) |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 4 | 6 | (9) |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Designated as Hedge Accounting Instruments: | Net investment hedges | Currency/Interest Rate | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 5 | 2 | (5) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1,698) | 1,512 | (1,368) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 4,533 | (1,226) | 1,161 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Interest Rate | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 5 | (1) | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 14 | 342 | (340) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 3 | (5) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 394 | 364 | (348) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Currency/Interest Rate | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 123 | (55) | 13 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Credit | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (4,057) | 1,121 | (2,498) |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Equity | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Contract | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Contract | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Contract | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Contract | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Contract | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Contract | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Other Contract | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Other Income (Loss) | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Interest Expense | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Interest Credited To Policyholders’ Account Balances | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Policyholder Benefts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | AOCI | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Gain (Loss) on Investments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2,705) | 966 | 644 |
Derivatives Not Qualifying as Hedge Accounting Instruments: | Embedded Derivative Financial Instruments | Investment Income | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | [1] | Jan. 01, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 9 | $ (14) | $ 0 | |||
Cash flow hedges in AOCI | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Balance, beginning | $ 811 | (39) | $ 1,316 | |||
Net deferred gains/(losses) on cash flow hedges for the reporting period | 391 | 1,401 | (1,373) | |||
Amount reclassified into current period earnings | (379) | (551) | 18 | |||
Ending Balance | 832 | 811 | (39) | |||
Interest Rate | Cash flow hedges in AOCI | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Net deferred gains/(losses) on cash flow hedges for the reporting period | 33 | 33 | 5 | |||
Amount reclassified into current period earnings | (58) | (1) | 2 | |||
Currency | Cash flow hedges in AOCI | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Net deferred gains/(losses) on cash flow hedges for the reporting period | (56) | 27 | (3) | |||
Amount reclassified into current period earnings | (6) | (7) | 0 | |||
Currency/Interest Rate | Cash flow hedges in AOCI | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Net deferred gains/(losses) on cash flow hedges for the reporting period | 414 | 1,341 | (1,375) | |||
Amount reclassified into current period earnings | $ (315) | $ (543) | $ 16 | |||
[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 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | [1] | $ 391,096 | $ 353,656 |
Assets supporting experience-rated contractholder liabilities | [1] | 21,597 | 21,254 |
Fixed maturities, trading | [1] | 3,884 | 3,243 |
Equity securities | [1] | 7,522 | 6,238 |
Commercial mortgage and other loans | [1] | 63,559 | 59,830 |
Other invested assets | [1] | 15,606 | 14,526 |
Short-term investments | 5,467 | ||
Other assets | [1] | 20,832 | 16,118 |
Separate account assets | 312,281 | 279,136 | |
TOTAL ASSETS | 896,552 | 815,078 | |
Future policy benefits | 293,527 | 273,846 | |
Other liabilities | [1] | 20,802 | 16,018 |
Total liabilities | 832,833 | 766,047 | |
Netting | (13,519) | (9,331) | |
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 14,035 | 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 | 12,800 | 8,900 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Asset | 700 | 700 | |
Embedded Derivative, Fair Value of Embedded Derivative Gross Liability | 13,500 | 9,600 | |
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fixed maturities, available-for-sale: | 391,096 | 353,656 | |
Assets supporting experience-rated contractholder liabilities | 21,581 | 21,254 | |
Fixed maturities, trading | 3,884 | 3,243 | |
Equity securities | 7,385 | 6,100 | |
Commercial mortgage and other loans | 228 | 763 | |
Other invested assets | 1,433 | 1,409 | |
Short-term investments | 3,936 | 5,493 | |
Cash equivalents | 9,006 | 9,478 | |
Other assets | 113 | 25 | |
Separate account assets | 288,724 | 254,066 | |
TOTAL ASSETS | 727,386 | 655,487 | |
Future policy benefits | 12,831 | 8,926 | |
Policyholders' account balances | 1,316 | 56 | |
Other liabilities | 936 | 135 | |
Notes issued by consolidated VIEs | 800 | 595 | |
Total liabilities | 15,883 | 9,712 | |
Asset Netting | (13,519) | (9,331) | |
Liability Netting | (6,705) | (5,281) | |
Netting | (6,814) | (4,050) | |
Fair Value, Measurements, Recurring | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Netting | (13,519) | (9,331) | |
Fair Value, Measurements, Recurring | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liability Netting | (6,705) | (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: | 35,659 | 30,594 | |
Assets supporting experience-rated contractholder liabilities | 185 | 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: | 11,497 | 10,493 | |
Assets supporting experience-rated contractholder liabilities | 212 | 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: | 119,054 | 113,110 | |
Assets supporting experience-rated contractholder liabilities | 814 | 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: | 98,339 | 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: | 36,533 | 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: | 29,825 | 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: | 28,240 | 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 | 13,603 | 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: | 13,174 | 12,973 | |
Assets supporting experience-rated contractholder liabilities | 1,662 | 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: | 15,574 | 13,315 | |
Assets supporting experience-rated contractholder liabilities | 1,896 | 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: | 3,201 | 3,004 | |
Assets supporting experience-rated contractholder liabilities | 1,158 | 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 | 1,790 | 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 | 261 | 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 | 1,505 | 1,222 | |
Fixed maturities, trading | 0 | 0 | |
Equity securities | 5,813 | 4,819 | |
Commercial mortgage and other loans | 0 | 0 | |
Other invested assets | 6 | 23 | |
Short-term investments | 1,806 | 2,713 | |
Cash equivalents | 2,079 | 2,848 | |
Other assets | 0 | 0 | |
Separate account assets | 46,574 | 39,534 | |
TOTAL ASSETS | 57,783 | 51,159 | |
Future policy benefits | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Other liabilities | 41 | 18 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 41 | 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 | 1,505 | 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: | 386,781 | 349,421 | |
Assets supporting experience-rated contractholder liabilities | 19,346 | 19,213 | |
Fixed maturities, trading | 3,597 | 3,037 | |
Equity securities | 939 | 610 | |
Commercial mortgage and other loans | 228 | 763 | |
Other invested assets | 14,379 | 10,454 | |
Short-term investments | 1,975 | 2,691 | |
Cash equivalents | 6,796 | 6,553 | |
Other assets | 0 | 0 | |
Separate account assets | 240,433 | 212,998 | |
TOTAL ASSETS | 674,474 | 605,740 | |
Future policy benefits | 0 | 0 | |
Policyholders' account balances | 0 | 0 | |
Other liabilities | 7,495 | 5,398 | |
Notes issued by consolidated VIEs | 0 | 0 | |
Total liabilities | 7,495 | 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: | 35,554 | 30,513 | |
Assets supporting experience-rated contractholder liabilities | 185 | 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: | 11,493 | 10,488 | |
Assets supporting experience-rated contractholder liabilities | 212 | 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: | 119,032 | 112,985 | |
Assets supporting experience-rated contractholder liabilities | 790 | 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: | 97,959 | 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: | 34,749 | 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: | 29,756 | 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: | 27,237 | 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 | 12,966 | 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: | 12,238 | 11,726 | |
Assets supporting experience-rated contractholder liabilities | 1,593 | 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: | 15,574 | 13,302 | |
Assets supporting experience-rated contractholder liabilities | 1,896 | 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: | 3,189 | 2,925 | |
Assets supporting experience-rated contractholder liabilities | 1,158 | 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 | 285 | 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 | 261 | 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: | 4,315 | 4,235 | |
Assets supporting experience-rated contractholder liabilities | 730 | 819 | |
Fixed maturities, trading | 287 | 206 | |
Equity securities | 633 | 671 | |
Commercial mortgage and other loans | 0 | 0 | |
Other invested assets | 567 | 263 | |
Short-term investments | 155 | 89 | |
Cash equivalents | 131 | 77 | |
Other assets | 113 | 25 | |
Separate account assets | 1,717 | 1,534 | |
TOTAL ASSETS | 8,648 | 7,919 | |
Future policy benefits | 12,831 | 8,926 | |
Policyholders' account balances | 1,316 | 56 | |
Other liabilities | 105 | 0 | |
Notes issued by consolidated VIEs | 800 | 595 | |
Total liabilities | 15,052 | 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: | 105 | 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: | 22 | 125 | |
Assets supporting experience-rated contractholder liabilities | 24 | 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: | 380 | 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: | 1,784 | 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: | 69 | 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: | 1,003 | 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 | 637 | 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: | 936 | 1,247 | |
Assets supporting experience-rated contractholder liabilities | 69 | 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: | 0 | 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: | 12 | 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 | 0 | 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 | 0 | 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: | 4,751 | 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: | 4,757 | 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 | 4,213 | 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 | $ 23,557 | $ 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 | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | $ 5,560 | $ 5,219 |
Future policy benefits | 293,527 | 273,846 |
Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | 12,831 | 8,926 |
Policyholders' account balances | $ 1,316 | 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 | $ 12,831 | 8,926 |
Policyholders' account balances | $ 1,316 | $ 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 | 0.10% | 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 | 0.10% | |
Mortality rate | 0.00% | |
Equity volatility curve | 6.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 0.49% | 0.57% |
Level 3 | Internal | Minimum | Discounted cash flow | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 10.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Separate accounts commercial mortgage loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Spread | 1.11% | 1.12% |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 5.7 | 4.5 |
Level 3 | Internal | Minimum | Market comparables | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 1 | |
Level 3 | Internal | Minimum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 14.25% | 11.77% |
Level 3 | Internal | Minimum | Net asset value | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share price | 5 | |
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 | 1.23% | 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 | 1.23% | |
Mortality rate | 24.00% | |
Equity volatility curve | 25.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 20.00% | 20.00% |
Level 3 | Internal | Maximum | Discounted cash flow | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 30.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Separate accounts commercial mortgage loan | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Spread | 1.85% | 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 | Market comparables | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 10.1 | |
Level 3 | Internal | Maximum | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 83.61% | 94.00% |
Level 3 | Internal | Maximum | Net asset value | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share price | 1,353 | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 7.41% | 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 | 1.26% | 1.29% |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 7.3 | 8.1 |
Level 3 | Internal | Weighted Average | Market comparables | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
EBITDA multiples | 5.4 | |
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Liquidation value | 59.47% | 32.16% |
Level 3 | Internal | Weighted Average | Net asset value | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share price | 451 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Future policy benefits | $ 12,831 | $ 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 | 1,316 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Corporate securities | 1,424 | 1,392 |
Level 3 | Internal | Fair Value, Measurements, Recurring | Equity securities | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Equity securities | 210 | |
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 | $ 796 | $ 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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | $ 671 | $ 795 | |
Purchases | 79 | 66 | |
Sales | (52) | (100) | |
Issuances | 0 | 0 | |
Settlements | (85) | (82) | |
Other | 1 | 18 | |
Transfers into Level 3 | 1 | 5 | |
Transfers out of Level 3 | (24) | (25) | |
Fair Value, end of period | 633 | 671 | $ 795 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 42 | (6) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 34 | (19) | |
Equity securities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 2 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | (4) |
Equity securities | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 42 | (6) | 25 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 34 | (19) | 38 |
Equity securities | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Equity securities | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 17 |
Equity securities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 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 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Assets supporting experience-rated contractholder liabilities | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (4) | (39) | (35) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (5) | (38) | (34) |
Assets supporting experience-rated contractholder liabilities | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 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 |
Assets supporting experience-rated contractholder liabilities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 9 | 8 | 8 |
Assets supporting experience-rated contractholder liabilities | Foreign government bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 225 | 223 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (5) | (5) | |
Other | (196) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 24 | 225 | 223 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 7 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 1 | |
Assets supporting experience-rated contractholder liabilities | Corporate securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 444 | 462 | |
Purchases | 146 | 147 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (189) | (179) | |
Other | 196 | 0 | |
Transfers into Level 3 | 46 | 72 | |
Transfers out of Level 3 | (10) | (23) | |
Fair Value, end of period | 637 | 444 | 462 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 4 | (35) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (6) | (37) | |
Assets supporting experience-rated contractholder liabilities | Structured securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 149 | 723 | |
Purchases | 29 | 97 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (35) | (165) | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 33 | |
Transfers out of Level 3 | (74) | (538) | |
Fair Value, end of period | 69 | 149 | 723 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (1) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | (2) | |
Assets supporting experience-rated contractholder liabilities | Equity securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 1 | 4 | |
Purchases | 0 | 0 | |
Sales | (2) | (3) | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 0 | 1 | 4 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 1 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 1 | 0 | |
Assets supporting experience-rated contractholder liabilities | All other activity | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | 7 | |
Purchases | 8 | 91 | |
Sales | 0 | (3) | |
Issuances | 0 | 0 | |
Settlements | (8) | (93) | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 0 | 0 | 7 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (2) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Other invested assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 263 | 137 | |
Purchases | 341 | 136 | |
Sales | 0 | (18) | |
Issuances | 0 | 0 | |
Settlements | (42) | 0 | |
Other | (6) | 4 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 567 | 263 | 137 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 11 | 4 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (1) | 3 | |
Other invested assets | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (1) | 4 | 1 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (1) | 2 | 0 |
Other invested assets | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 12 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 1 | 0 |
Other invested assets | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Other invested assets | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Other invested assets | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Short-term investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 89 | 8 | |
Purchases | 597 | 287 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (526) | (201) | |
Other | (5) | (5) | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 155 | 89 | 8 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | (1) | |
Short-term investments | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | (1) | 0 |
Short-term investments | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Short-term investments | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Short-term investments | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Short-term investments | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 77 | 0 | |
Purchases | 131 | 95 | |
Sales | 0 | (2) | |
Issuances | 0 | 0 | |
Settlements | (77) | (15) | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 131 | 77 | 0 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (1) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Cash equivalents | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (1) | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Cash equivalents | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 2 |
Other assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 25 | 13 | |
Purchases | 44 | 46 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 113 | 25 | 13 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 44 | (34) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 44 | (34) | |
Other assets | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 44 | (34) | (20) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 44 | (34) | (21) |
Other assets | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Other assets | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Other assets | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Other assets | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Separate accounts assets | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 1,534 | 2,122 | |
Purchases | 346 | 587 | |
Sales | (111) | (36) | |
Issuances | 0 | 0 | |
Settlements | (144) | (358) | |
Other | 0 | 0 | |
Transfers into Level 3 | 55 | 287 | |
Transfers out of Level 3 | (147) | (1,004) | |
Fair Value, end of period | 1,717 | 1,534 | 2,122 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 184 | (64) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 170 | (52) | |
Separate accounts assets | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Separate accounts assets | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Separate accounts assets | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 180 | (66) | 81 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 170 | (52) | 78 |
Separate accounts assets | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Separate accounts assets | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 4 | 2 | 2 |
Future policy benefits | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (8,926) | (8,720) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (1,221) | (1,153) | |
Settlements | 0 | 0 | |
Other | 1 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (12,831) | (8,926) | (8,720) |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (2,685) | 947 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (2,999) | 611 | |
Future policy benefits | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (2,685) | 947 | 637 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (2,999) | 611 | 372 |
Future policy benefits | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Future policy benefits | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Future policy benefits | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Future policy benefits | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Policyholders’ account balances | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (56) | (47) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (324) | (39) | |
Settlements | 0 | 0 | |
Other | (3) | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (1,316) | (56) | (47) |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (933) | 30 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (917) | 30 | |
Policyholders’ account balances | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (933) | 30 | (31) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (917) | 30 | (31) |
Policyholders’ account balances | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Policyholders’ account balances | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Policyholders’ account balances | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Policyholders’ account balances | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Other liabilities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 0 | (3) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (100) | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 1 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (105) | 0 | (3) |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (5) | 2 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (5) | 3 | |
Other liabilities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 2 | (6) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 3 | (6) |
Other liabilities | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (5) | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (5) | 0 | 0 |
Other liabilities | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Other liabilities | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Other liabilities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Notes issued by consolidated VIEs | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | (595) | (1,196) | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | (858) | 0 | |
Settlements | 638 | 0 | |
Other | 0 | 587 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | (800) | (595) | (1,196) |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 15 | 14 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 15 | 14 | |
Notes issued by consolidated VIEs | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 15 | 14 | (4) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 15 | 14 | (4) |
Notes issued by consolidated VIEs | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 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 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 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 |
Notes issued by consolidated VIEs | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Available-for-sale | Fixed Maturities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (67) | (29) | (23) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (98) | (60) | (154) |
Available-for-sale | Fixed Maturities | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 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 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Available-for-sale | Fixed Maturities | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 86 | (141) | (12) |
Available-for-sale | Fixed Maturities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 18 | 17 | 26 |
Available-for-sale | Fixed Maturities | U.S. government | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 81 | 52 | |
Purchases | 24 | 29 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 105 | 81 | 52 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Available-for-sale | Fixed Maturities | U.S. states | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 5 | 5 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | (1) | 0 | |
Other | 0 | 0 | |
Transfers into Level 3 | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair Value, end of period | 4 | 5 | 5 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Available-for-sale | Fixed Maturities | Foreign government bonds | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 125 | 148 | |
Purchases | 0 | 5 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Other | (1) | (9) | |
Transfers into Level 3 | 10 | 20 | |
Transfers out of Level 3 | (112) | (36) | |
Fair Value, end of period | 22 | 125 | 148 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | (3) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (2) | 0 | |
Available-for-sale | Fixed Maturities | Corporate securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 2,685 | 2,776 | |
Purchases | 1,462 | 919 | |
Sales | (47) | (25) | |
Issuances | 0 | 0 | |
Settlements | (1,137) | (991) | |
Other | 10 | (15) | |
Transfers into Level 3 | 353 | 485 | |
Transfers out of Level 3 | (87) | (354) | |
Fair Value, end of period | 3,236 | 2,685 | 2,776 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (3) | (110) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (96) | (60) | |
Available-for-sale | Fixed Maturities | Structured securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 1,339 | 6,715 | |
Purchases | 952 | 2,808 | |
Sales | (67) | (612) | |
Issuances | 0 | 0 | |
Settlements | (507) | (1,589) | |
Other | (4) | 1 | |
Transfers into Level 3 | 755 | 1,212 | |
Transfers out of Level 3 | (1,560) | (7,156) | |
Fair Value, end of period | 948 | 1,339 | 6,715 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 40 | (40) | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | |
Trading | Fixed Maturities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value, beginning of period | 206 | 156 | |
Purchases | 105 | 96 | |
Sales | (31) | (59) | |
Issuances | 0 | 0 | |
Settlements | 0 | (3) | |
Other | (7) | 3 | |
Transfers into Level 3 | 41 | 13 | |
Transfers out of Level 3 | (1) | (6) | |
Fair Value, end of period | 287 | 206 | 156 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (26) | 6 | |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (27) | 8 | |
Trading | Fixed Maturities | Realized investment gains (losses), net | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Trading | Fixed Maturities | Other Income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (27) | 5 | (2) |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | (27) | 8 | (1) |
Trading | Fixed Maturities | Interest credited to policyholders' account balances | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | |||
Included in earnings | 0 | 0 | 0 |
Trading | Fixed Maturities | Included in other comprehensive income (loss) | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 0 | 0 |
Trading | Fixed Maturities | Net investment income | |||
Total gains (losses) (realized/unrealized): | |||
Included in earnings | $ 1 | $ 1 | $ 1 |
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 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | $ 867 | $ 1,148 |
Netting | (13,519) | (9,331) |
Total derivative liabilities | 831 | 127 |
Netting | (6,705) | (5,281) |
Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 11,243 | 6,366 |
Total derivative liabilities | 5,214 | 3,820 |
Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 230 | 273 |
Total derivative liabilities | 271 | 140 |
Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 21 | 33 |
Total derivative liabilities | 0 | 23 |
Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2,207 | 2,292 |
Total derivative liabilities | 647 | 778 |
Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 685 | 1,515 |
Total derivative liabilities | 1,404 | 647 |
Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 6 | 23 |
Total derivative liabilities | 41 | 9 |
Level 1 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 4 | 23 |
Total derivative liabilities | 38 | 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 | 2 | 0 |
Total derivative liabilities | 3 | 7 |
Level 1 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 14,379 | 10,454 |
Total derivative liabilities | 7,495 | 5,399 |
Level 2 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 11,238 | 6,341 |
Total derivative liabilities | 5,176 | 3,818 |
Level 2 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 230 | 273 |
Total derivative liabilities | 271 | 140 |
Level 2 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 21 | 33 |
Total derivative liabilities | 0 | 23 |
Level 2 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 2,207 | 2,292 |
Total derivative liabilities | 647 | 778 |
Level 2 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 683 | 1,515 |
Total derivative liabilities | 1,401 | 640 |
Level 2 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 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 | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | $ 0 | $ 0 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities (Changes in Level 3 Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, beginning of period | $ 0 | $ 10 | $ 0 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | 0 | 1 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Other | 0 | (11) | 10 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 0 | 10 |
Unrealized gains (losses) for assets still held: | |||
Included in earnings | 0 | 0 | 0 |
Interest Rate | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Fair Value, beginning of period | 2 | (3) | 4 |
Total gains (losses) (realized/unrealized): | |||
Included in earnings | (1) | 5 | (7) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 2 | (3) |
Unrealized gains (losses) for assets still held: | |||
Included in earnings | $ (2) | $ 5 | $ (7) |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commercial mortgage loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized investment gains (losses) net | $ 2 | $ (12) | $ (2) |
Carrying value after measurement as of period end | 15 | 47 | |
Mortgage servicing rights | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized investment gains (losses) net | 11 | 10 | $ 7 |
Carrying value after measurement as of period end | $ 87 | $ 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 | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Interest expense | $ 1,550 | $ 1,420 | $ 1,327 | |
Commercial mortgage and other loans | [1] | 63,559 | 59,830 | |
Other assets | [1] | 20,832 | 16,118 | |
Commercial mortgage and other loans | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Interest income | 20 | 18 | 13 | |
Fair value option loans in non-accrual status | 0 | |||
Fair value option loans in more than 90 days past due and still accruing | 0 | |||
Notes issued by consolidated VIEs | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Changes in fair value | (15) | (14) | 4 | |
Interest expense | 45 | 36 | $ 75 | |
Fair value option | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Commercial mortgage and other loans | 228 | 763 | ||
Other assets | 10 | 10 | ||
Notes issued by consolidated VIEs | 800 | 595 | ||
Fair value option, aggregate contractual principal | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Commercial mortgage and other loans | 224 | 754 | ||
Notes issued by consolidated VIEs | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Assets: | ||||||
Fixed maturities, held-to-maturity | [1] | $ 1,933 | $ 2,013 | |||
Assets supporting experience-rated contractholder liabilities | [1] | 21,597 | 21,254 | |||
Commercial mortgage and other loans | [1] | 63,559 | 59,830 | |||
Policy loans | 12,096 | 12,016 | ||||
Other invested assets | [1] | 15,606 | 14,526 | |||
Short-term investments | 5,467 | 6,469 | ||||
Cash and cash equivalents | 16,327 | [1] | 15,353 | [1] | $ 14,490 | |
Accrued investment income | [1] | 3,330 | 3,318 | |||
Liabilities: | ||||||
Securities sold under agreements to repurchase | 9,681 | 9,950 | ||||
Cash collateral for loaned securities | 4,213 | 3,929 | ||||
Short-term debt | 1,933 | 2,451 | ||||
Long-term debt | 18,646 | 17,378 | ||||
Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,302 | 2,372 | ||||
Assets supporting experience-rated contractholder liabilities | 16 | 0 | ||||
Commercial mortgage and other loans | 65,665 | 59,215 | ||||
Policy loans | 12,096 | 12,016 | ||||
Other invested assets | 36 | 40 | ||||
Short-term investments | 1,531 | 976 | ||||
Cash and cash equivalents | 7,321 | 5,875 | ||||
Accrued investment income | 3,330 | 3,318 | ||||
Other assets | 3,316 | 2,813 | ||||
Total assets | 95,613 | 86,625 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 102,156 | 98,428 | ||||
Securities sold under agreements to repurchase | 9,681 | 9,950 | ||||
Cash collateral for loaned securities | 4,213 | 3,929 | ||||
Short-term debt | 1,953 | 2,512 | ||||
Long-term debt | 21,324 | 17,972 | ||||
Notes issued by consolidated VIEs | 474 | 360 | ||||
Other liabilities | 6,982 | 6,848 | ||||
Separate account liabilities-investment contracts | 101,541 | 92,936 | ||||
Total liabilities | 248,324 | 232,935 | ||||
Carrying Amount | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 1,933 | 2,013 | ||||
Assets supporting experience-rated contractholder liabilities | 16 | 0 | ||||
Commercial mortgage and other loans | 63,331 | 59,067 | ||||
Policy loans | 12,096 | 12,016 | ||||
Other invested assets | 36 | 40 | ||||
Short-term investments | 1,531 | 976 | ||||
Cash and cash equivalents | 7,321 | 5,875 | ||||
Accrued investment income | 3,330 | 3,318 | ||||
Other assets | 3,315 | 2,813 | ||||
Total assets | 92,909 | 86,118 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 101,241 | 99,829 | ||||
Securities sold under agreements to repurchase | 9,681 | 9,950 | ||||
Cash collateral for loaned securities | 4,213 | 3,929 | ||||
Short-term debt | 1,933 | 2,451 | ||||
Long-term debt | 18,646 | 17,378 | ||||
Notes issued by consolidated VIEs | 474 | 360 | ||||
Other liabilities | 6,982 | 6,848 | ||||
Separate account liabilities-investment contracts | 101,541 | 92,936 | ||||
Total liabilities | 244,711 | 233,681 | ||||
Level 1 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 0 | 0 | ||||
Assets supporting experience-rated contractholder liabilities | 16 | 0 | ||||
Commercial mortgage and other loans | 0 | 0 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Short-term investments | 1,492 | 951 | ||||
Cash and cash equivalents | 6,278 | 4,871 | ||||
Accrued investment income | 0 | 0 | ||||
Other assets | 147 | 141 | ||||
Total assets | 7,933 | 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 | 1,950 | 1,734 | ||||
Notes issued by consolidated VIEs | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Separate account liabilities-investment contracts | 0 | 0 | ||||
Total liabilities | 1,950 | 1,734 | ||||
Level 2 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,217 | 1,468 | ||||
Assets supporting experience-rated contractholder liabilities | 0 | 0 | ||||
Commercial mortgage and other loans | 107 | 109 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 36 | 40 | ||||
Short-term investments | 39 | 25 | ||||
Cash and cash equivalents | 1,043 | 1,004 | ||||
Accrued investment income | 3,330 | 3,318 | ||||
Other assets | 2,526 | 2,189 | ||||
Total assets | 9,298 | 8,153 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 32,940 | 31,422 | ||||
Securities sold under agreements to repurchase | 9,681 | 9,950 | ||||
Cash collateral for loaned securities | 4,213 | 3,929 | ||||
Short-term debt | 1,748 | 1,854 | ||||
Long-term debt | 18,188 | 15,057 | ||||
Notes issued by consolidated VIEs | 0 | 0 | ||||
Other liabilities | 6,403 | 6,338 | ||||
Separate account liabilities-investment contracts | 77,134 | 66,914 | ||||
Total liabilities | 150,307 | 135,464 | ||||
Level 3 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 85 | 904 | ||||
Assets supporting experience-rated contractholder liabilities | 0 | 0 | ||||
Commercial mortgage and other loans | 65,558 | 59,106 | ||||
Policy loans | 12,096 | 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 | 643 | 483 | ||||
Total assets | 78,382 | 72,509 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 69,216 | 67,006 | ||||
Securities sold under agreements to repurchase | 0 | 0 | ||||
Cash collateral for loaned securities | 0 | 0 | ||||
Short-term debt | 205 | 658 | ||||
Long-term debt | 1,186 | 1,181 | ||||
Notes issued by consolidated VIEs | 474 | 360 | ||||
Other liabilities | 579 | 510 | ||||
Separate account liabilities-investment contracts | 24,407 | 26,022 | ||||
Total liabilities | 96,067 | 95,737 | ||||
Prudential Netting Agreement | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 5,401 | 4,879 | ||||
Liabilities: | ||||||
Long-term debt | 10,158 | 9,095 | ||||
Prudential Netting Agreement | Carrying Amount | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 4,998 | 4,879 | ||||
Liabilities: | ||||||
Long-term debt | $ 9,749 | $ 9,095 | ||||
[1] | See Note 4 for details of balances associated with variable interest entities. |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of period | $ 20,058 | $ 18,992 | $ 17,661 |
Capitalization of commissions, sales and issue expenses | 2,966 | 2,870 | 2,820 |
Amortization—Impact of assumption and experience unlocking and true-ups | (164) | (217) | 247 |
Amortization—All other | (2,168) | (2,056) | (1,827) |
Change in unrealized investment gains and losses | (713) | 519 | (190) |
Foreign currency translation | (8) | (32) | 281 |
Other | (59) | (18) | 0 |
Balance, end of period | 19,912 | 20,058 | $ 18,992 |
Sale of the Company's subsidiary | (46) | (38) | |
Reclassification of ceded DAC to third party reinsurer | $ (14) | ||
Impact of the elimination of Gibraltar Life's one-month reporting lag | $ 20 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | [1] | $ 1,274 | $ 955 |
Consolidated VIEs for Which the Company is the Investment Manager | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 5,048 | 4,140 | |
Total liabilities of consolidated VIEs | 1,578 | 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 | 47 | 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 | 883 | 730 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 2,199 | 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 | 4 | 5 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 450 | 463 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 304 | 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 | 1,274 | 955 | |
Other Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,910 | 1,923 | |
Total liabilities of consolidated VIEs | 13 | 17 | |
Other Consolidated VIEs | Assets supporting experience-rated contractholder liabilities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 4 | 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 | 89 | 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 | 689 | 721 | |
Other Consolidated VIEs | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 13 | 17 | |
Other Consolidated VIEs | Notes issued by consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 0 | 0 | |
Available-for-sale | Consolidated VIEs for Which the Company is the Investment Manager | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 104 | 73 | |
Available-for-sale | Other Consolidated VIEs | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 285 | 282 | |
Held-to-maturity | Consolidated VIEs for Which the Company is the Investment Manager | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 83 | 95 | |
Held-to-maturity | Other Consolidated VIEs | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 839 | 831 | |
Trading | Consolidated VIEs for Which the Company is the Investment Manager | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,112 | 1,076 | |
Trading | Other Consolidated VIEs | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 0 | 0 | |
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 | $ 2,668 | $ 2,013 | |
Maximum | Consolidated VIEs for Which the Company is the Investment Manager | Notes issued by consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Debt Instrument, Term | 9 years | ||
Minimum | Consolidated VIEs for Which the Company is the Investment Manager | Notes issued by consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Debt Instrument, Term | 4 years | ||
[1] | See Note 4 for details of balances associated with variable interest entities. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | |||
Other Investments | [1] | $ 15,606,000,000 | $ 14,526,000,000 |
Joint ventures and limited partnerships | |||
Variable Interest Entity [Line Items] | |||
Other Investments | 11,157,000,000 | 9,841,000,000 | |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | |||
Variable Interest Entity [Line Items] | |||
Liabilities held within unconsolidated VIEs | 0 | ||
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure | Fixed maturities, available-for-sale, Fixed maturities, trading, Equity securities and Other invested assets | |||
Variable Interest Entity [Line Items] | |||
Maximum exposure to loss resulting from investment in unconsolidated VIEs | 1,021,000,000 | 836,000,000 | |
VIEs and Non-VIEs | Joint ventures and limited partnerships | |||
Variable Interest Entity [Line Items] | |||
Other Investments | $ 11,157,000,000 | $ 9,841,000,000 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Value of Business Acquired (Bal
Value of Business Acquired (Balance of and Changes in VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, beginning of period | $ 1,850 | $ 1,591 | $ 2,314 |
Amortization—Impact of assumption and experience unlocking and true-ups | (139) | 0 | (56) |
Amortization—All other | (235) | (276) | (311) |
Change in unrealized investment gains and losses | (478) | 455 | (456) |
Interest | 64 | 69 | 75 |
Foreign currency translation | 10 | 23 | 25 |
Other | 38 | (12) | 0 |
Balance, end of period | 1,110 | $ 1,850 | $ 1,591 |
CIGNA | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of period | 226 | ||
Prudential Annuities Holding Co. | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of period | 32 | ||
Gibraltar Life | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of period | 848 | ||
Gibraltar BSN Life Berhad | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of period | 4 | ||
Aoba Life | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of period | 0 | ||
The Hartford Life Business | |||
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Balance, end of period | $ 0 |
Value of Business Acquired (Est
Value of Business Acquired (Estimated Future Amortization, Net of Interest) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Present Value of Future Insurance Profits [Abstract] | |
Estimated future VOBA amortization - 2020 | $ 118 |
Estimated future VOBA amortization - 2021 | 110 |
Estimated future VOBA amortization - 2022 | 100 |
Estimated future VOBA amortization - 2023 | 88 |
Estimated future VOBA amortization - 2024 | $ 74 |
Investments in Operating Join_3
Investments in Operating Joint Ventures (Investments in Operating Joint Ventures) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Investment in operating joint ventures | $ 1,309 | $ 1,329 | $ 1,483 |
Dividends received from operating joint ventures | 70 | 93 | 63 |
After-tax equity in earnings of operating joint ventures | $ 100 | $ 76 | $ 49 |
Investments in Operating Join_4
Investments in Operating Joint Ventures (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Investment in operating joint ventures | $ 1,309 | $ 1,329 | $ 1,483 |
Asset management fee income | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in operating joint ventures | $ 29 | $ 32 | $ 36 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Changes in the Book Value of Goodwill by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||||
Goodwill balance, Beginning of the year | $ 863 | $ 843 | $ 833 | |
Acquisitions | $ 2,128 | 2,150 | 22 | |
Effect of foreign currency translation | 0 | (2) | 10 | |
Goodwill balance, End of the year | 3,013 | 3,013 | 863 | 843 |
PGIM | ||||
Goodwill [Roll Forward] | ||||
Goodwill balance, Beginning of the year | 233 | 235 | 230 | |
Acquisitions | 22 | 0 | ||
Effect of foreign currency translation | (1) | (2) | 5 | |
Goodwill balance, End of the year | 254 | 254 | 233 | 235 |
Retirement | ||||
Goodwill [Roll Forward] | ||||
Goodwill balance, Beginning of the year | 455 | 444 | 444 | |
Acquisitions | 0 | 11 | ||
Effect of foreign currency translation | 0 | 0 | 0 | |
Goodwill balance, End of the year | 455 | 455 | 455 | 444 |
Assurance IQ | ||||
Goodwill [Roll Forward] | ||||
Goodwill balance, Beginning of the year | 0 | 0 | 0 | |
Acquisitions | 2,128 | 0 | ||
Effect of foreign currency translation | 0 | 0 | 0 | |
Goodwill balance, End of the year | 2,128 | 2,128 | 0 | 0 |
International Businesses | ||||
Goodwill [Roll Forward] | ||||
Goodwill balance, Beginning of the year | 164 | 164 | 159 | |
Acquisitions | 0 | 0 | ||
Effect of foreign currency translation | 1 | 0 | 5 | |
Goodwill balance, End of the year | 165 | 165 | 164 | 164 |
Other | ||||
Goodwill [Roll Forward] | ||||
Goodwill balance, Beginning of the year | 11 | 0 | 0 | |
Acquisitions | 0 | 11 | ||
Effect of foreign currency translation | 0 | 0 | 0 | |
Goodwill balance, End of the year | $ 11 | $ 11 | $ 11 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Other Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Not subject to amortization | $ 69 | $ 2 |
Total | 600 | 348 |
Mortgage servicing rights | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 745 | 689 |
Accumulated Amortization | (468) | (423) |
Net Carrying Amount | 277 | 266 |
Customer relationships | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 244 | 173 |
Accumulated Amortization | (153) | (120) |
Net Carrying Amount | 91 | 53 |
Software and other | ||
Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 201 | 114 |
Accumulated Amortization | (38) | (87) |
Net Carrying Amount | $ 163 | $ 27 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Amortization expense for other intangibles | $ 65 | $ 61 | $ 51 |
Mortgage servicing rights | |||
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Net Carrying Amount | 277 | 266 | |
Mortgage servicing rights | Fair Value | |||
Finite and Indefinite-Lived Intangible Assets [Line Items] | |||
Net Carrying Amount | $ 287 | $ 295 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles Goodwill and Other Intangibles (Future Amortization Expense) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated future amortization expense - 2020 | $ 70 |
Estimated future amortization expense - 2021 | 65 |
Estimated future amortization expense - 2022 | 57 |
Estimated future amortization expense - 2023 | 41 |
Estimated future amortization expense - 2024 | $ 34 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Leases with option to extend | 17 years | ||
Leases with options to terminate | 8 years | ||
Operating Lease, Cost | $ 138 | ||
Short-term Lease, Cost | 101 | ||
Rental expense, net of sub-lease income | $ 265 | $ 258 | |
Income and Expenses, Lessor [Abstract] | |||
Lease Income | $ 182 | ||
Less than | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease terms | 29 years |
Leases (Lessee Right-of-Use Ass
Leases (Lessee Right-of-Use Assets and Lease Liabilities) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 554 |
Lease liabilities | $ 594 |
Weighted average remaining lease term | 6 years |
Weighted average discount rate | 2.46% |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 152 |
2021 | 143 |
2022 | 104 |
2023 | 74 |
2024 | 65 |
Thereafter | 111 |
Total lease payments | 649 |
Less imputed interest | (55) |
Total | $ 594 |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Under Non-Cancelable Operating and Capital Leases Along with Associated Sub-Lease Income) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating and Capital Leases | |
2019 | $ 168 |
2020 | 133 |
2021 | 106 |
2022 | 82 |
2023 | 58 |
2024 and thereafter | 138 |
Total | 685 |
Sub-lease Income | |
2019 | 1 |
2020 | 1 |
2021 | 1 |
2022 | 0 |
2023 | 0 |
2024 and thereafter | 0 |
Total | 3 |
Capital Leases | $ 26 |
Policyholders' Liabilities (Fut
Policyholders' Liabilities (Future Policy Benefits) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Life insurance | $ 191,654 | $ 180,749 |
Individual and group annuities and supplementary contracts | 75,940 | 72,624 |
Other contract liabilities | 23,052 | 17,665 |
Subtotal future policy benefits excluding unpaid claims and claim settlement expenses | 290,646 | 271,038 |
Unpaid claims and claim settlement expenses | 2,881 | 2,808 |
Total future policy benefits | $ 293,527 | $ 273,846 |
Policyholders' Liabilities (Nar
Policyholders' Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Policyholders’ account balances | $ 152,110 | $ 150,338 | ||
FANIP maximum authorized amount | $ 2,000 | |||
Minimum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Unpaid claims and claim settlement expenses interest rate | 2.60% | |||
Maximum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Unpaid claims and claim settlement expenses interest rate | 6.40% | |||
Individual participating life insurance | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Participating policies direct in force | 2.00% | |||
Participating policies direct premiums | 11.00% | 12.00% | 14.00% | |
Individual participating life insurance | Minimum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liabilities for future policy benefits, interest rate | 2.50% | |||
Individual participating life insurance | Maximum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liabilities for future policy benefits, interest rate | 7.50% | |||
Individual nonparticipating life insurance | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Percentage of reserves based on interest rates in excess of 8 Percent (less than) | 1.00% | |||
Individual nonparticipating life insurance | Minimum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liabilities for future policy benefits, interest rate | (0.10%) | |||
Individual nonparticipating life insurance | Maximum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liabilities for future policy benefits, interest rate | 9.50% | |||
Individual and group annuities and supplementary contracts | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Percentage of reserves based on interest rates in excess of 8 Percent (less than) | 1.00% | |||
Individual and group annuities and supplementary contracts | Minimum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liabilities for future policy benefits, interest rate | (0.20%) | |||
Individual and group annuities and supplementary contracts | Maximum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liabilities for future policy benefits, interest rate | 11.30% | |||
Other contract liabilities | Minimum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liabilities for future policy benefits, interest rate | 0.80% | |||
Other contract liabilities | Maximum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liabilities for future policy benefits, interest rate | 7.00% | |||
Funding agreements | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Policyholders’ account balances | $ 4,119 | $ 3,785 | ||
Interest-sensitive life contracts | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Policyholders’ account balances | $ 40,364 | 39,228 | ||
Interest-sensitive life contracts | Minimum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for policyholder contract deposits, interest rate | 0.00% | |||
Interest-sensitive life contracts | Maximum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for policyholder contract deposits, interest rate | 7.50% | |||
Other than interest-sensitive life contracts | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Less than 1% of policyholders' account balances have interest crediting rates in excess of 8% | 1.00% | |||
Other than interest-sensitive life contracts | Minimum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for policyholder contract deposits, interest rate | 0.00% | |||
Other than interest-sensitive life contracts | Maximum | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for policyholder contract deposits, interest rate | 13.30% | |||
Delaware Statutory Trust | Funding agreements | Prudential Insurance | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Policyholders’ account balances | $ 4,104 | 3,755 | ||
Medium-term Notes, at amortized cost | 2,414 | 2,764 | ||
Commercial Paper | $ 1,697 | $ 997 | ||
Delaware Statutory Trust | Funding agreements | Minimum | Prudential Insurance | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for policyholder contract deposits, interest rate | 0.00% | |||
Weighted average maturity of outstanding commercial paper, in days | 2 months | |||
Delaware Statutory Trust | Funding agreements | Maximum | Prudential Insurance | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
Liability for policyholder contract deposits, interest rate | 3.50% | |||
Weighted average maturity of outstanding commercial paper, in days | 5 years | |||
Medium-term notes | Delaware Statutory Trust | Funding agreements | Prudential Insurance | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
FANIP maximum authorized amount | $ 15,000 | |||
Commercial Paper | Delaware Statutory Trust | Funding agreements | Prudential Insurance | ||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||
FANIP maximum authorized amount | $ 3,000 |
Policyholders' Liabilities (Pol
Policyholders' Liabilities (Policyholders' Account Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 152,110 | $ 150,338 |
Individual annuities | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 44,391 | 43,309 |
Group annuities | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 27,843 | 27,618 |
Guaranteed investment contracts and guaranteed interest accounts | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 13,759 | 13,558 |
Funding agreements | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 4,119 | 3,785 |
Interest-sensitive life contracts | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | 40,364 | 39,228 |
Dividend accumulation and other deposit type funds | ||
Liability for Policyholders' Account Balance, by Product Segment [Line Items] | ||
Total policyholders’ account balances | $ 21,634 | $ 22,840 |
Certain Long-Duration Contrac_3
Certain Long-Duration Contracts with Guarantees (Variable Annuity, Variable Life, Variable Universal Life and Universal Life Contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Annuity Contracts | Return of net deposits | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 130,893 | $ 115,988 |
Net amount at risk | $ 244 | $ 922 |
Average attained age of contractholders | 67 years | 66 years |
Annuity Contracts | Return of net deposits | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 16 | $ 21 |
Net amount at risk | $ 0 | $ 0 |
Average attained age of contractholders | 75 years | 72 years |
Annuity Contracts | Minimum return or contract value | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 32,609 | $ 30,631 |
Net amount at risk | $ 2,626 | $ 5,066 |
Average attained age of contractholders | 69 years | 68 years |
Annuity Contracts | Minimum return or contract value | At Annuitization / Accumulation | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Account value | $ 147,511 | $ 131,261 |
Net amount at risk | $ 4,578 | $ 8,235 |
Average attained age of contractholders | 68 years | 67 years |
Average period remaining until earliest expected annuitization | 2 months 2 days | 1 month 6 days |
Variable Life, Variable Universal Life and Universal Life Contracts | In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Separate account value | $ 9,983 | $ 8,752 |
General account value | 18,225 | 16,903 |
Net amount at risk | $ 245,929 | $ 246,644 |
Average attained age of contractholders | 55 years | 55 years |
Certain Long-Duration Contrac_4
Certain Long-Duration Contracts With Guarantees (Separate Account Investment Options) (Details) - Annuity Contracts - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | $ 158,206 | $ 140,595 |
Equity funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | 93,010 | 78,626 |
Bond funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | 60,074 | 57,477 |
Balanced funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | 1,592 | 1,370 |
Money market funds | ||
Fair Value, Separate Account Investment [Line Items] | ||
Separate Account Investment Options | $ 3,530 | $ 3,122 |
Certain Long-Duration Contrac_5
Certain Long-Duration Contracts with Guarantees (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Annuity Contracts | Market Value Adjusted | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
General Account Investment Option | $ 7,781 | $ 8,104 |
Certain Long-Duration Contrac_6
Certain Long-Duration Contracts with Guarantees (Liabilities for Guarantee Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
GMDB | Variable Life, Variable Universal Life and Universal Life Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | $ 5,418 | $ 5,110 | $ 4,143 |
Incurred guarantee benefits | 1,492 | 791 | 685 |
Paid guarantee benefits | (111) | (77) | (15) |
Change in unrealized investment gains and losses | 805 | (406) | 290 |
Other | (2) | 0 | 7 |
Ending balance | 7,602 | 5,418 | 5,110 |
GMDB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 713 | 697 | 721 |
Incurred guarantee benefits | 82 | 125 | 37 |
Paid guarantee benefits | (69) | (88) | (74) |
Change in unrealized investment gains and losses | 27 | (20) | 13 |
Other | 0 | (1) | 0 |
Ending balance | 753 | 713 | 697 |
GMIB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 378 | 419 | 474 |
Incurred guarantee benefits | (8) | (14) | (20) |
Paid guarantee benefits | (4) | (5) | (15) |
Change in unrealized investment gains and losses | (15) | (20) | (30) |
Other | 4 | (2) | 10 |
Ending balance | 355 | 378 | 419 |
GMAB/GMWB/GMIWB | Annuity Contracts | |||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | |||
Beginning balance | 8,927 | 8,721 | 8,238 |
Incurred guarantee benefits | 3,905 | 206 | 479 |
Paid guarantee benefits | 0 | 0 | 0 |
Change in unrealized investment gains and losses | 0 | 0 | 0 |
Other | (1) | 0 | 4 |
Ending balance | $ 12,831 | $ 8,927 | $ 8,721 |
Certain Long-Duration Contrac_7
Certain Long-Duration Contracts with Guarantees (Sales Inducements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Beginning balance | $ 1,024 | $ 1,168 | $ 1,127 |
Capitalization | 1 | 3 | 2 |
Amortization—Impact of assumption and experience unlocking and true-ups | 108 | (6) | 157 |
Amortization—All other | (163) | (166) | (105) |
Change in unrealized investment gains and losses | (35) | 25 | (13) |
Ending balance | $ 935 | $ 1,024 | $ 1,168 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) $ in Millions | Apr. 01, 2015 | Jan. 02, 2013USD ($)policy | Dec. 31, 2016USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2019company |
Effects of Reinsurance [Line Items] | ||||||
Number of major reinsurance companies | company | 4 | |||||
Percentage Of Reinsurance Recoverable From Major Reinsurance Companies | 60.00% | |||||
Domestic Business, per Life | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance retention policy, amount retained | $ 20 | $ 30 | ||||
Hartford Life Business | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance retention policy, amount retained | $ 141,000 | |||||
Business acquisition number of life insurance policies acquired reinsurance | policy | 700,000 | |||||
Quote Share Reinsurance | Union Hamilton | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance retention policy, reinsured risk percentage | 50.00% | |||||
Reinsurance retention policy, amount retained | $ 2,900 |
Reinsurance (Reinsurance Info)
Reinsurance (Reinsurance Info) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |||
Direct premiums | $ 33,260 | $ 35,048 | $ 31,797 |
Reinsurance assumed | 3,022 | 2,574 | 2,105 |
Reinsurance ceded | (2,080) | (1,843) | (1,811) |
Premiums | 34,202 | 35,779 | 32,091 |
Direct policy charges and fee income | 5,252 | 5,245 | 4,541 |
Reinsurance assumed | 1,181 | 1,189 | 1,176 |
Reinsurance ceded | (455) | (432) | (414) |
Policy charges and fee income | 5,978 | 6,002 | 5,303 |
Direct policyholders’ benefits | 35,601 | 38,079 | 33,261 |
Reinsurance assumed | 4,304 | 3,659 | 3,230 |
Reinsurance ceded | (3,085) | (2,334) | (2,697) |
Policyholders’ benefits | $ 36,820 | $ 39,404 | $ 33,794 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 6,626 | $ 4,996 |
Individual and group annuities | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 688 | 499 |
Life insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 5,535 | 4,335 |
Other reinsurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 403 | 162 |
CIGNA | Individual and group annuities | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 553 | 481 |
Hartford Life Business | Life insurance | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | 2,105 | 2,035 |
Reinsurance Payable | 1,290 | 1,259 |
Union Hamilton | Individual and group annuities | ||
Effects of Reinsurance [Line Items] | ||
Total reinsurance recoverables | $ 95 | $ 15 |
Closed Block (Narrative) (Detai
Closed Block (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Policyholders’ dividend obligation | $ 6,149 | $ 3,150 | $ 5,446 |
Dividend Declared | |||
Increase (decrease) in liability | 79 | 86 | $ (86) |
Excess Of Actual Cumulative Earnings Over Expected Cumulative Earnings | |||
Policyholders’ dividend obligation | 2,816 | 2,252 | |
Net Unrealized Gains (Losses) on Investments | |||
Policyholders’ dividend obligation | $ 3,332 | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Closed Block liabilities | |||
Future policy benefits | $ 47,613 | $ 48,282 | |
Policyholders’ dividends payable | 717 | 812 | |
Policyholders’ dividend obligation | 6,149 | 3,150 | $ 5,446 |
Policyholders’ account balances | 4,973 | 5,061 | |
Other Closed Block liabilities | 4,049 | 3,955 | |
Total Closed Block liabilities | 63,501 | 61,260 | |
Closed Block assets | |||
Fixed maturities, available-for-sale, at fair value | 41,146 | 38,538 | |
Fixed maturities, trading, at fair value | 256 | 195 | |
Equity securities, at fair value | 2,245 | 1,784 | |
Commercial mortgage and other loans | 8,629 | 8,782 | |
Policy loans | 4,264 | 4,410 | |
Other invested assets | 3,333 | 3,316 | |
Short-term investments | 227 | 477 | |
Total investments | 60,100 | 57,502 | |
Cash and cash equivalents | 191 | 467 | |
Accrued investment income | 456 | 466 | |
Other Closed Block assets | 93 | 105 | |
Total Closed Block assets | 60,840 | 58,540 | |
Excess of reported Closed Block liabilities over Closed Block assets | 2,661 | 2,720 | |
Portion of above representing accumulated other comprehensive income (loss): | |||
Net unrealized investment gains (losses) | 3,280 | 857 | |
Allocated to policyholder dividend obligation | (3,332) | (899) | |
Future earnings to be recognized from Closed Block assets and Closed Block liabilities | $ 2,609 | $ 2,678 |
Closed Block (Information Regar
Closed Block (Information Regarding Policyholder Dividend Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Balance, January 1 | $ 3,150 | $ 5,446 |
Impact from earnings allocable to policyholder dividend obligation | 564 | (508) |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation | 2,435 | (1,945) |
Balance, December 31 | 6,149 | 3,150 |
ASU 2016-01 | ||
Movement in Closed Block Dividend Obligation [Roll Forward] | ||
Cumulative-effect adjustment from the adoption of ASU 2016-01 | $ 0 | $ 157 |
Closed Block (Closed Block Reve
Closed Block (Closed Block Revenues and Benefits and Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Premiums | $ 2,207 | $ 2,301 | $ 2,524 |
Net investment income | 2,332 | 2,298 | 2,669 |
Realized investment gains (losses), net | 521 | 130 | 534 |
Other income (loss) | 589 | (39) | 113 |
Total Closed Block revenues | 5,649 | 4,690 | 5,840 |
Benefits and Expenses | |||
Policyholders’ benefits | 2,906 | 2,972 | 3,220 |
Interest credited to policyholders’ account balances | 130 | 132 | 133 |
Dividends to policyholders | 2,187 | 1,236 | 2,007 |
General and administrative expenses | 351 | 364 | 382 |
Total Closed Block benefits and expenses | 5,574 | 4,704 | 5,742 |
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes | 75 | (14) | 98 |
Income tax expense (benefit) | 10 | (78) | 43 |
Closed Block revenues, net of Closed Block benefits and expenses and income taxes | $ 65 | $ 64 | $ 55 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense (benefit): | |||
U.S. | $ 86 | $ (346) | $ (47) |
State and local | 2 | 7 | 11 |
Foreign | 879 | 681 | 594 |
Total current tax expense (benefit) | 967 | 342 | 558 |
Deferred tax expense (benefit): | |||
U.S.(1) | 57 | 80 | (2,552) |
State and local | (1) | 1 | 0 |
Foreign(1) | (76) | 399 | 556 |
Total deferred tax expense (benefit) | (20) | 480 | (1,996) |
Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures | 947 | 822 | (1,438) |
Income tax expense (benefit) on equity in earnings of operating joint ventures | 43 | 31 | 33 |
Income tax expense (benefit) on discontinued operations | 0 | 0 | 0 |
Income tax expense (benefit) reported in equity related to: | |||
Other comprehensive income (loss) | 3,811 | (1,812) | 784 |
Stock-based compensation programs | 0 | 0 | (2) |
Total income taxes | $ 4,801 | $ (959) | $ (623) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Accounting Estimate [Line Items] | ||||
Total income tax expense (benefit) | $ 947 | $ 822 | $ (1,438) | |
Total provision for income tax expense (benefit) | $ (3,033) | $ (2,880) | ||
Effective tax rate | 18.60% | 17.00% | (22.20%) | |
U.S. federal income tax rate | 21.00% | 35.00% | ||
Tax expense related to remeasuring Korea’s deferred tax assets and liabilities | $ 26 | |||
DRD constituting non-taxable investment income | $ 122 | 127 | $ 280 | |
Non-taxable investment income | $ 270 | 246 | 369 | |
Percent of income tax expense (benefit) | 5.00% | |||
Income (loss) from domestic operations | $ 1,985 | 1,447 | 2,541 | |
Income (loss) from foreign operations | 3,101 | 3,387 | $ 3,945 | |
Polish and Italian insurance operations | ||||
Change in Accounting Estimate [Line Items] | ||||
Total income tax expense (benefit) | 10 | |||
Korea insurance operations | ||||
Change in Accounting Estimate [Line Items] | ||||
Total income tax expense (benefit) | 14 | |||
U.S. Tax Cut and Jobs Act of 2017 | ||||
Change in Accounting Estimate [Line Items] | ||||
Total provision for income tax expense (benefit) | (153) | |||
Industry Issue Resolution | ||||
Change in Accounting Estimate [Line Items] | ||||
Tax adjustment impact | $ (198) | |||
Brazil Full Inclusion | ||||
Change in Accounting Estimate [Line Items] | ||||
Tax adjustment impact | $ 3 | $ (34) | ||
Japan Statutory Tax Rate | ||||
Change in Accounting Estimate [Line Items] | ||||
Effective tax rate | 28.00% | |||
Korea Statutory Tax Rate | ||||
Change in Accounting Estimate [Line Items] | ||||
Effective tax rate | 24.20% | |||
Brazil Statutory Tax Rate | ||||
Change in Accounting Estimate [Line Items] | ||||
Effective tax rate | 45.00% |
Income Taxes (Reconciliation To
Income Taxes (Reconciliation To Effective Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected federal income tax expense (benefit) | $ 1,068 | $ 1,015 | $ 2,270 |
Non-taxable investment income | (270) | (246) | (369) |
Foreign taxes at other than U.S. rate | 225 | 349 | (249) |
Low-income housing and other tax credits | (118) | (112) | (126) |
Changes in tax law | 0 | (321) | (2,858) |
Other | 42 | 137 | (106) |
Total income tax expense (benefit) on income (loss) before equity in earnings of operating joint ventures | $ 947 | $ 822 | $ (1,438) |
Effective tax rate | 18.60% | 17.00% | (22.20%) |
Income Taxes (U.S. Tax Cuts and
Income Taxes (U.S. Tax Cuts and Jobs Act of 2017) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Accounting Estimate [Line Items] | ||
Deferred tax revaluation from tax law change | $ (1,585) | $ (1,592) |
Adoption of modified territorial system | (1,809) | (1,785) |
Deemed repatriation | 361 | 497 |
Total provision for income tax expense (benefit) | (3,033) | $ (2,880) |
U.S. Tax Cut and Jobs Act of 2017 | ||
Change in Accounting Estimate [Line Items] | ||
Deferred tax revaluation from tax law change | 7 | |
Adoption of modified territorial system | (24) | |
Deemed repatriation | (136) | |
Total provision for income tax expense (benefit) | $ (153) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||||
Deferred Tax Assets Insurance Reserves | $ 730 | |||
Policyholders’ dividends | 1,365 | $ 733 | ||
Net operating and capital loss carryforwards | 189 | 155 | ||
Refundable AMT credits | 0 | 205 | ||
Employee benefits | 973 | 693 | ||
Investments | 0 | 1,002 | ||
Other | 113 | 39 | ||
Deferred tax assets before valuation allowance | 3,370 | 2,827 | ||
Valuation allowance | (136) | (117) | $ (214) | $ (163) |
Deferred tax assets after valuation allowance | 3,234 | 2,710 | ||
Deferred tax liabilities: | ||||
Insurance reserves | 0 | 719 | ||
Net unrealized investment gains | 11,109 | 5,961 | ||
Deferred policy acquisition costs | 3,799 | 3,888 | ||
Deferred Tax Liabilities, Investments | 138 | |||
Value of business acquired | 262 | 461 | ||
Deferred tax liabilities | 15,308 | 11,029 | ||
Net deferred tax liability | $ (12,074) | $ (8,319) |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance on Deferred Tax Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance, Deferred Tax Asset [Roll Forward] | |||
Balance, beginning of year | $ 117 | $ 214 | $ 163 |
Charged to costs and expenses | 32 | 18 | 66 |
Other adjustments | (13) | (115) | (15) |
Balance, ending of year | 136 | 117 | 214 |
Federal | |||
Valuation Allowance, Deferred Tax Asset [Roll Forward] | |||
Balance, beginning of year | 0 | 0 | 0 |
Charged to costs and expenses | 3 | 0 | 0 |
Other adjustments | 0 | 0 | 0 |
Balance, ending of year | 3 | 0 | 0 |
State | |||
Valuation Allowance, Deferred Tax Asset [Roll Forward] | |||
Balance, beginning of year | 106 | 196 | 138 |
Charged to costs and expenses | 34 | 24 | 63 |
Other adjustments | (13) | (114) | (5) |
Balance, ending of year | 127 | 106 | 196 |
Foreign Operations | |||
Valuation Allowance, Deferred Tax Asset [Roll Forward] | |||
Balance, beginning of year | 11 | 18 | 25 |
Charged to costs and expenses | (5) | (6) | 3 |
Other adjustments | 0 | (1) | (10) |
Balance, ending of year | $ 6 | $ 11 | $ 18 |
Income Taxes (Operating and Cap
Income Taxes (Operating and Capital Loss Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 33 | $ 0 |
State and local | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 2,005 | 2,152 |
Foreign operations | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 203 | 99 |
Foreign operations | Operating loss expiring between 2018 and 2035 | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 124 | |
Foreign operations | Operating loss unlimited carryforward | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 79 | |
Federal foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 4 | $ 0 |
Income Taxes (Undistributed Ear
Income Taxes (Undistributed Earnings) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | |||
Undistributed earnings of foreign subsidiaries | $ 2,764 | $ 2,475 | $ 2,603 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Amount | $ 20 | $ 45 | $ 26 |
Increases in unrecognized tax benefits—prior years | 0 | 20 | 11 |
(Decreases) in unrecognized tax benefits—prior years | (2) | 0 | (5) |
Increases in unrecognized tax benefits—current year | 0 | 0 | 14 |
(Decreases) in unrecognized tax benefits—current year | 0 | 0 | 0 |
Settlements with taxing authorities | 0 | (45) | (1) |
Amount | 18 | 20 | 45 |
Unrecognized tax benefits that, if recognized, would favorably impact the effective rate | $ 0 | $ 0 | $ 45 |
Income Taxes (Amounts Recognize
Income Taxes (Amounts Recognized for Tax Related Interest and Penalties) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Interest and penalties recognized in the Consolidated Statements of Operations | $ 1 | $ 1 | $ (3) |
Interest and penalties recognized in liabilities in the Consolidated Statements of Financial Position | $ 2 | $ 1 |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt (Short-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short Term Debt [Line Items] | ||
Short-term debt | $ 1,933 | $ 2,451 |
Weighted average interest rate on outstanding short-term debt | 1.61% | 2.41% |
Commercial paper | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 549 | $ 742 |
Weighted average maturity of outstanding commercial paper, in days | 6 days | 12 days |
Senior notes | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 1,179 | $ 1,100 |
Convertible Debt | ||
Short Term Debt [Line Items] | ||
Short-term debt | 0 | 499 |
Current portion of long-term debt | ||
Short Term Debt [Line Items] | ||
Short-term debt | 1,371 | 1,656 |
Borrowings due overnight | Commercial paper | ||
Short Term Debt [Line Items] | ||
Short-term debt | 224 | 301 |
Daily average outstanding | Commercial paper | ||
Short Term Debt [Line Items] | ||
Short-term debt | 1,702 | 1,554 |
Prudential Financial | ||
Short Term Debt [Line Items] | ||
Short-term debt | 1,204 | 1,115 |
Prudential Financial | Commercial paper | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 25 | $ 15 |
Weighted average interest rate on outstanding short-term debt | 1.71% | 2.45% |
Prudential Financial | Current portion of long-term debt | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 1,179 | $ 1,100 |
Prudential Funding, LLC | Commercial paper | ||
Short Term Debt [Line Items] | ||
Short-term debt | 524 | 727 |
Bridge Loan | Foreign public corporate securities | ||
Short Term Debt [Line Items] | ||
Short-term debt | 0 | 53 |
Mortgages | ||
Short Term Debt [Line Items] | ||
Short-term debt | 192 | 57 |
Construction Loan Payable | ||
Short Term Debt [Line Items] | ||
Short-term debt | 13 | |
Line of Credit | ||
Short Term Debt [Line Items] | ||
Amount Outstanding | $ 13 | 0 |
Mortgages | ||
Short Term Debt [Line Items] | ||
Short-term debt | $ 53 |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt (Narrative) (Details) $ / shares in Units, shares in Millions | Aug. 02, 2019USD ($)shares | Feb. 18, 2015USD ($) | Aug. 31, 2018USD ($) | Nov. 30, 2017 | Mar. 31, 2017USD ($) | Dec. 31, 2013USD ($) | Nov. 30, 2013USD ($) | Sep. 30, 2009USD ($)$ / sharesshares | Dec. 31, 2019USD ($)Rateshares | Dec. 31, 2019JPY (¥)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2019JPY (¥)Rate | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 18,646,000,000 | $ 17,378,000,000 | |||||||||||||||
Interest expense | $ 1,550,000,000 | $ 1,420,000,000 | $ 1,327,000,000 | ||||||||||||||
Exchangeable Surplus Notes (in shares) | shares | 3.6 | 3.6 | 5.9 | 5.8 | |||||||||||||
Capacity | $ 2,000,000,000 | ||||||||||||||||
Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 17,430,000,000 | $ 16,141,000,000 | |||||||||||||||
Interest expense | 1,161,000,000 | 1,087,000,000 | $ 1,057,000,000 | ||||||||||||||
Minimum statutory consolidated net worth | $ 20,958,000,000 | ||||||||||||||||
Prudential Insurance | Federal Home Loan Bank of New York | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Purchase requirement activity-based stock of the outstanding borrowings | 4.50% | 4.50% | |||||||||||||||
Debt Instrument, Term Upon Certain Events | 90 days | 90 days | |||||||||||||||
Other long-term investments | $ 30,200,000 | 29,900,000 | |||||||||||||||
Pledge collateral of prior year-end statutory net admitted assets | 5.00% | 5.00% | |||||||||||||||
Maximum amount of pledged asset | $ 6,700,000,000 | ||||||||||||||||
Outstanding amount of notes | 0 | ||||||||||||||||
Debt Issuance Costs, Net | 1,000,000,000 | ||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 5,900,000,000 | ||||||||||||||||
PRIAC | Federal Home Loan Bank of Boston | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Other long-term investments | 6,000,000 | $ 10,000,000 | |||||||||||||||
Outstanding amount of notes | 0 | ||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 271,000,000 | ||||||||||||||||
Prudential Financial and Prudential Funding | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Capacity | $ 4,000,000,000 | ||||||||||||||||
Line of Credit Facility, Expiration Period | 5 years | 5 years | |||||||||||||||
Proceeds from Lines of Credit | $ 0 | ||||||||||||||||
Prudential Holdings of Japan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Capacity | ¥ | ¥ 100,000,000,000 | ||||||||||||||||
Line of Credit Facility, Expiration Period | 5 years | 5 years | |||||||||||||||
Proceeds from Lines of Credit | ¥ | ¥ 0 | ||||||||||||||||
Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average maturity of outstanding commercial paper, in days | 20 years | ||||||||||||||||
Other Subsidiaries | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Capacity | $ 370,000,000 | ||||||||||||||||
PLIC | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average maturity of outstanding commercial paper, in days | 20 years | ||||||||||||||||
Future Debt Instrument Authorized | $ 4,000,000,000 | ||||||||||||||||
Minimum | PRIAC | Federal Home Loan Bank of Boston | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Purchase requirement activity-based stock of the outstanding borrowings | 3.00% | 3.00% | |||||||||||||||
Maximum | PRIAC | Federal Home Loan Bank of Boston | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Purchase requirement activity-based stock of the outstanding borrowings | 4.50% | 4.50% | |||||||||||||||
Prudential Insurance | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average maturity of outstanding commercial paper, in days | 7 years | 7 years | |||||||||||||||
Term-out option | Prudential Holdings of Japan | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit Facility, Expiration Period | 2 years | 2 years | |||||||||||||||
Commercial paper | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average maturity of outstanding commercial paper, in days | 6 days | 6 days | 12 days | ||||||||||||||
Commercial paper | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Authorized | $ 3,000,000,000 | ||||||||||||||||
Commercial paper | Prudential Funding, LLC | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Authorized | 7,000,000,000 | ||||||||||||||||
Real estate separate accounts | Other Subsidiaries | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Capacity | 160,000,000 | ||||||||||||||||
Proceeds from Lines of Credit | $ 19,000,000 | ||||||||||||||||
Put Option | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Term of contract | 10 years | ||||||||||||||||
Debt Instrument, Interest Rate | 1.777% | 1.777% | |||||||||||||||
Derivative, Time To Cure | 30 days | ||||||||||||||||
Minimum Equity Less AOCI For Automatic Exercise | $ 7,000,000,000 | ||||||||||||||||
Private Placement | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.419% | ||||||||||||||||
Floating Rate Debt Surplus Notes Subject To Set Off Arrangement | Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Estimated maximum borrowing capacity, after taking into account applicable required collateralization levels and required purchases of activity based stock | $ 100,000,000 | ||||||||||||||||
Senior notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.85% | 5.04% | 4.85% | ||||||||||||||
Medium-term Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Authorized | $ 20,000,000,000 | ||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 9,340,000,000 | ||||||||||||||||
Outstanding amount of notes | 1,150,000,000 | ||||||||||||||||
Increase (decrease) in debt | (1,400,000,000) | ||||||||||||||||
Maturities of Senior Debt | $ 1,100,000,000 | ||||||||||||||||
Asset-backed securities | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Assets Under Set Off Arrangements | $ 500,000,000 | ||||||||||||||||
Derivative Financial Instruments, Liabilities | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest expense | 1,000,000 | 1,000,000 | 3,000,000 | ||||||||||||||
Current And Long Term Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Expense, Debt | 1,563,000,000 | 1,423,000,000 | 1,334,000,000 | ||||||||||||||
Junior subordinated debt | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 7,518,000,000 | 7,511,000,000 | |||||||||||||||
Junior subordinated debt | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Deferral Period | 5 years | 5 years | |||||||||||||||
Junior subordinated debt | Minimum | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |||||||||||||||
Junior subordinated debt | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Deferral Period | 10 years | 10 years | |||||||||||||||
Junior subordinated debt | Maximum | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.88% | 5.88% | |||||||||||||||
Limited Recourse Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||||||||||||
Retail Medium Term Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Authorized | $ 5,000,000,000 | ||||||||||||||||
Outstanding amount of notes | 302,000,000 | ||||||||||||||||
Regulation XXX | Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Capacity | 2,450,000,000 | ||||||||||||||||
Regulation XXX | Subordinated Debt | Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Authorized | $ 2,000,000,000 | $ 1,750,000,000 | $ 2,000,000,000 | ||||||||||||||
Capacity | 2,400,000,000 | ||||||||||||||||
Debt Instrument, Face Amount | 2,360,000,000 | ||||||||||||||||
Outstanding amount of notes | 2,270,000,000 | ||||||||||||||||
Weighted average maturity of outstanding commercial paper, in days | 15 years | ||||||||||||||||
Regulation XXX | Subordinated Debt | Captive Reinsurance Subsidiary | Twenty-year term | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Authorized | 650,000,000 | ||||||||||||||||
Regulation XXX | Surplus notes subject to set-off arrangements | Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Outstanding amount of notes | 1,750,000,000 | ||||||||||||||||
Regulation XXX | Floating Rate Debt Surplus Notes Subject To Set Off Arrangement | Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Authorized | $ 1,600,000,000 | ||||||||||||||||
Estimated maximum borrowing capacity, after taking into account applicable required collateralization levels and required purchases of activity based stock | 920,000,000 | ||||||||||||||||
Regulation XXX | Floating Rate Debt Surplus Notes Subject To Set Off Arrangement | Captive Reinsurance Subsidiary | Total Prudential Financial, Inc. Equity | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Assets Under Set Off Arrangements | 500,000,000 | 1,000,000,000 | |||||||||||||||
Guideline AXXX | Surplus notes subject to set-off arrangements | Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Outstanding amount of notes | 3,250,000,000 | ||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 3,500,000,000 | ||||||||||||||||
Future Debt Instrument Authorized | 4,500,000,000 | ||||||||||||||||
Guideline AXXX | Floating Rate Debt Surplus Notes Subject To Set Off Arrangement | Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Authorized | $ 1,000,000,000 | ||||||||||||||||
Estimated maximum borrowing capacity, after taking into account applicable required collateralization levels and required purchases of activity based stock | 1,470,000,000 | ||||||||||||||||
Weighted average maturity of outstanding commercial paper, in days | 20 years | ||||||||||||||||
Derivatives | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest expense | 0 | 0 | $ 1,000,000 | ||||||||||||||
Fixed rate | Senior notes | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 9,912,000,000 | 8,601,000,000 | |||||||||||||||
Fixed rate | Senior notes | Minimum | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.35% | 1.35% | |||||||||||||||
Fixed rate | Senior notes | Maximum | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.63% | 6.63% | |||||||||||||||
Floating rate debt | Subordinated Debt | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 342,000,000 | ||||||||||||||||
Floating rate debt | Senior notes | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 0 | 29,000,000 | |||||||||||||||
Floating rate debt | Senior notes | Minimum | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.04% | 4.04% | |||||||||||||||
Floating rate debt | Senior notes | Maximum | Prudential Financial | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.95% | 4.95% | |||||||||||||||
Short-term Debt | Retail Medium Term Note | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Outstanding amount of notes | $ 29,000,000 | ||||||||||||||||
Long-term Debt | Exhangeable Surplus Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Surplus notes principal amount, for each | $ 1,000 | $ 1,000 | 1,000 | ||||||||||||||
Exchangeable Surplus Notes (in shares) | shares | 6.2 | 5.1 | |||||||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 98.78 | ||||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.36% | ||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 12.3877 | 10.1235 | |||||||||||||||
Long-term Debt | Fixed rate | Exhangeable Surplus Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | 1,750,000,000 | ||||||||||||||||
Subordinated Debt | Regulation XXX | Captive Reinsurance Subsidiary | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Weighted average maturity of outstanding commercial paper, in days | 20 years | 10 years | 10 years | ||||||||||||||
Subordinated Debt | Fixed rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 342,000,000 | 341,000,000 | |||||||||||||||
Subordinated Debt | Fixed rate | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.30% | 8.30% | |||||||||||||||
Subordinated Debt | Fixed rate | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.30% | 8.30% | |||||||||||||||
Senior notes | Investment Real Estate | Mortgages | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 47,000,000 | ||||||||||||||||
Debt Instrument, Translation Adjustment | 2,000,000 | ||||||||||||||||
Long-term Debt | 537,000,000 | ||||||||||||||||
Increase (decrease) in debt | 239,000,000 | ||||||||||||||||
Repayments of Senior Debt | 288,000,000 | ||||||||||||||||
Senior notes | Fixed rate | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 10,084,000,000 | 8,774,000,000 | |||||||||||||||
Senior notes | Fixed rate | Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.35% | 1.35% | |||||||||||||||
Senior notes | Fixed rate | Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 11.31% | 11.31% | |||||||||||||||
Senior notes | Floating rate debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Long-term debt | $ 0 | $ 29,000,000 | |||||||||||||||
Senior notes | Maturing in 2050 | Medium-term Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 1,000,000,000 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 4.35% | 4.35% | |||||||||||||||
Senior notes | Maturing in 2051 | Medium-term Notes | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 3.70% | 3.70% | |||||||||||||||
Exchangeable Debt | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Surplus notes principal amount, for each | $ 1,000 | ||||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||||||||||||||
Interest Rate | shares | 6.2 |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt (Credit Facilities) (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019JPY (¥) | Dec. 31, 2019JPY (¥) | Jun. 30, 2018USD ($) | |
CreditFacility [Line Items] | ||||
Capacity | $ 2,000,000,000 | |||
Prudential Financial and Prudential Funding | ||||
CreditFacility [Line Items] | ||||
Original Term | 5 years | 5 years | ||
Capacity | $ 4,000,000,000 | |||
Amount Outstanding | $ 0 | |||
Prudential Holdings of Japan | ||||
CreditFacility [Line Items] | ||||
Original Term | 5 years | 5 years | ||
Capacity | ¥ | ¥ 100,000,000,000 | |||
Amount Outstanding | ¥ | ¥ 0 |
Short-Term and Long-Term Debt_5
Short-Term and Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt, Current | $ 1,933 | $ 2,451 |
Long-term debt | 18,646 | 17,378 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Debt, Current | 1,179 | 1,100 |
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 | 7,484 | 6,895 |
Surplus notes subject to set-off arrangements | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,265 | 2,200 |
Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 10,084 | 8,774 |
Senior notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 29 |
Mortgages | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 104 | 237 |
Mortgages | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 241 | 429 |
Mortgages | Debt denominated in foreign currency | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 43 | 101 |
Mortgages | Debt denominated in foreign currency | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 53 | 206 |
Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,575 | 7,568 |
Subtotal | ||
Debt Instrument [Line Items] | ||
Long-term debt | 28,395 | 26,473 |
Less: assets under set-off arrangements | ||
Debt Instrument [Line Items] | ||
Long-term debt | 9,749 | 9,095 |
Line of Credit | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 300 | 0 |
Prudential Financial | ||
Debt Instrument [Line Items] | ||
Debt, Current | 1,204 | 1,115 |
Long-term debt | 17,430 | 16,141 |
Prudential Financial | Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 9,912 | 8,601 |
Prudential Financial | Senior notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | $ 29 |
Prudential Financial | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,518 | |
Subsidiaries | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 57 | |
Minimum | Surplus notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.30% | |
Minimum | Surplus notes subject to set-off arrangements | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.52% | |
Minimum | Surplus notes subject to set-off arrangements | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.48% | |
Minimum | Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.35% | |
Minimum | Mortgages | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.95% | |
Minimum | Mortgages | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.36% | |
Minimum | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.55% | |
Minimum | Prudential Financial | Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.35% | |
Minimum | Prudential Financial | Senior notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.04% | |
Maximum | Surplus notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 8.30% | |
Maximum | Surplus notes subject to set-off arrangements | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.26% | |
Maximum | Surplus notes subject to set-off arrangements | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.20% | |
Maximum | Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 11.31% | |
Maximum | Mortgages | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.85% | |
Maximum | Mortgages | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.67% | |
Maximum | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.88% | |
Maximum | Prudential Financial | Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.63% | |
Maximum | Prudential Financial | Senior notes | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.95% |
Short-Term and Long-Term Debt_6
Short-Term and Long-Term Debt (Contractual Maturities for Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2021 | $ 491 | |
2022 | 436 | |
2023 | 245 | |
2024 | 725 | |
2025 and thereafter | 16,750 | |
Long-term debt | $ 18,646 | $ 17,378 |
Short-Term and Long-Term Debt_7
Short-Term and Long-Term Debt (Schedule of Junior Subordinated Notes) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Junior Subordinated Institutional Notes August 2012 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,000,000,000 |
Interest Rate | 5.88% |
Interest Rate Subsequent to Optional Redemption Date | 4.18% |
Junior Subordinated Institutional Notes November 2012 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,500,000,000 |
Interest Rate | 5.63% |
Interest Rate Subsequent to Optional Redemption Date | 3.92% |
Junior Subordinated Retail Notes December 2012 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 575,000,000 |
Interest Rate | 5.75% |
Interest Rate Subsequent to Optional Redemption Date | 5.75% |
Junior Subordinated Retail Notes March 2013 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 710,000,000 |
Interest Rate | 5.70% |
Interest Rate Subsequent to Optional Redemption Date | 5.70% |
Junior Subordinated Institutional Notes March 2013 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 500,000,000 |
Interest Rate | 5.20% |
Interest Rate Subsequent to Optional Redemption Date | 3.04% |
Junior Subordinated Institutional Notes May 2015 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,000,000,000 |
Interest Rate | 5.38% |
Interest Rate Subsequent to Optional Redemption Date | 3.03% |
Junior Subordinated Institutional Notes September 2017 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 750,000,000 |
Interest Rate | 4.50% |
Interest Rate Subsequent to Optional Redemption Date | 2.38% |
Junior Subordinated Retail Notes August 2018 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 565,000,000 |
Interest Rate | 5.63% |
Interest Rate Subsequent to Optional Redemption Date | 5.63% |
Junior Subordinated Institutional Notes September 2018 | |
Debt Instrument [Line Items] | |
Principal Amount | $ 1,000,000,000 |
Interest Rate | 5.70% |
Interest Rate Subsequent to Optional Redemption Date | 2.67% |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of annual salary Contributed by the Company for employees (401(k) plans) | 4.00% | |||
General And Administrative Expense | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Cost | $ 84 | $ 89 | $ 74 | |
Other liabilities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net accumulated liability for non-retiree postemployment benefits provided to former or inactive employee | 1 | |||
Rabbi Trust | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | 1,301 | 1,208 | ||
Fair value of plan assets | 986 | 861 | ||
Rabbi Trust | Discontinued Operations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | 76 | 72 | ||
Fair value of plan assets | 106 | 102 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | 14,637 | 13,185 | 13,838 | |
Fair value of plan assets | $ 13,906 | $ 12,807 | $ 13,655 | |
Defined Benefit Plan Weighted Average Asset Allocations | 100.00% | 100.00% | ||
Bond Yield rate used in determining Discount rate | 3.30% | 4.30% | 3.65% | 4.15% |
Expected long-term rate of return on plan assets | 6.00% | 6.50% | 6.25% | 6.25% |
Defined Benefit Plans Estimated Future Employer Contributions in Next Fiscal Year | $ 205 | |||
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | 1,993 | $ 1,876 | $ 1,996 | |
Fair value of plan assets | $ 1,557 | $ 1,432 | $ 1,615 | |
Defined Benefit Plan Weighted Average Asset Allocations | 100.00% | 100.00% | ||
Bond Yield rate used in determining Discount rate | 3.25% | 4.30% | 3.60% | 4.05% |
Expected long-term rate of return on plan assets | 6.75% | 7.00% | 7.00% | 7.00% |
Defined Benefit Plans Estimated Future Employer Contributions in Next Fiscal Year | $ 10 | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Bond Yield rate used in determining Discount rate | 90.00% | |||
Maximum | Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred Compensation Arrangement with Individual, Requisite Age | 55 years | |||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 20 years | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Bond Yield rate used in determining Discount rate | 10.00% | |||
Minimum | Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Deferred Compensation Arrangement with Individual, Requisite Age | 50 years | |||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 10 years | |||
Annuity Contracts | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Obligation | $ 22 | $ 18 | ||
Foreign plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan Weighted Average Asset Allocations | 5.00% | 5.00% | ||
Foreign plans | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension benefits for foreign plans percentage of the ending benefit obligation | 14.00% | 15.00% |
Employee Benefit Plans (Status
Employee Benefit Plans (Status of Prepaid Benefits Costs and Accrued Benefit Liabilities Included in Other Assets and Other Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at the beginning of period | $ (13,185) | $ (13,838) | |
Service cost | (291) | (314) | $ (284) |
Interest cost | (489) | (448) | (476) |
Plan participants’ contributions | 0 | 0 | |
Medicare Part D subsidy receipts | 0 | 0 | |
Amendments | 0 | (3) | |
Actuarial gains (losses), net | (1,499) | 611 | |
Settlements | 45 | 27 | |
Special termination benefits | (26) | (1) | |
Benefits paid | 831 | 797 | |
Foreign currency changes and other | (23) | (16) | |
Benefit obligation at end of period | (14,637) | (13,185) | (13,838) |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 12,807 | 13,655 | |
Actual return on plan assets | 1,681 | (224) | |
Employer contributions | 280 | 219 | |
Plan participants’ contributions | 0 | 0 | |
Disbursement for settlements | (45) | (27) | |
Benefits paid | (831) | (797) | |
Foreign currency changes and other | 14 | (19) | |
Fair value of plan assets at end of period | 13,906 | 12,807 | 13,655 |
Funded status at end of period | (731) | (378) | |
Amounts recognized in the Statements of Financial Position | |||
Prepaid benefit cost | 2,204 | 2,458 | |
Accrued benefit liability | (2,935) | (2,836) | |
Net amount recognized | (731) | (378) | |
Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost: | |||
Prior service cost | (12) | (15) | |
Net actuarial loss | 4,191 | 3,829 | |
Net amount not recognized | 4,179 | 3,814 | |
Accumulated benefit obligation | (13,934) | (12,560) | |
Other Postretirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at the beginning of period | (1,876) | (1,996) | |
Service cost | (22) | (23) | (20) |
Interest cost | (78) | (70) | (82) |
Plan participants’ contributions | (21) | (25) | |
Medicare Part D subsidy receipts | (7) | (9) | |
Amendments | (27) | (32) | |
Actuarial gains (losses), net | (124) | 96 | |
Settlements | 0 | 0 | |
Special termination benefits | (1) | 0 | |
Benefits paid | 165 | 182 | |
Foreign currency changes and other | (2) | 1 | |
Benefit obligation at end of period | (1,993) | (1,876) | (1,996) |
Change in plan assets | |||
Fair value of plan assets at beginning of period | 1,432 | 1,615 | |
Actual return on plan assets | 264 | (70) | |
Employer contributions | 5 | 44 | |
Plan participants’ contributions | 21 | 25 | |
Disbursement for settlements | 0 | 0 | |
Benefits paid | (165) | (182) | |
Foreign currency changes and other | 0 | 0 | |
Fair value of plan assets at end of period | 1,557 | 1,432 | $ 1,615 |
Funded status at end of period | (436) | (444) | |
Amounts recognized in the Statements of Financial Position | |||
Prepaid benefit cost | 0 | 4 | |
Accrued benefit liability | (436) | (448) | |
Net amount recognized | (436) | (444) | |
Items recorded in “Accumulated other comprehensive income (loss)” not yet recognized as a component of net periodic (benefit) cost: | |||
Prior service cost | 65 | 41 | |
Net actuarial loss | 341 | 408 | |
Net amount not recognized | 406 | 449 | |
Accumulated benefit obligation | (1,993) | (1,877) | |
Annuity Contracts | Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at the beginning of period | (18) | ||
Benefit obligation at end of period | $ (22) | $ (18) |
Employee Benefit Plans (Informa
Employee Benefit Plans (Information for Pension Plans with a Projected and Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan, Pension Plan with Project Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 2,997 | $ 2,895 |
Fair value of plan assets | 62 | 59 |
Information On Pension Plans With Accumulated Benefit Obligation In Excess Of Plan Assets [Abstract] | ||
Accumulated benefit obligation | 2,760 | 2,697 |
Fair value of plan assets | $ 7 | $ 6 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost Included in General and Administrative Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 291 | $ 314 | $ 284 |
Interest cost | 489 | 448 | 476 |
Expected return on plan assets | (816) | (817) | (781) |
Amortization of prior service cost | (4) | (4) | (3) |
Amortization of actuarial (gain) loss, net | 217 | 213 | 191 |
Settlements | 59 | 8 | 13 |
Special termination benefits | 26 | 1 | 4 |
Net periodic (benefit) cost | 262 | 163 | 184 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 22 | 23 | 20 |
Interest cost | 78 | 70 | 82 |
Expected return on plan assets | (95) | (108) | (102) |
Amortization of prior service cost | 4 | 1 | 0 |
Amortization of actuarial (gain) loss, net | 24 | 17 | 36 |
Settlements | 0 | 0 | 0 |
Special termination benefits | 1 | 0 | 0 |
Net periodic (benefit) cost | $ 34 | $ 3 | $ 36 |
Employee Benefit Plans (Amounts
Employee Benefit Plans (Amounts Recorded in Accumulated Other Comprehensive Income not yet Recognized) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | $ 3,814 | ||
Amortization for the period | 217 | $ 213 | $ 191 |
Deferrals for the period | (1,499) | 611 | |
Impact of foreign currency changes and other | 23 | 16 | |
Balance, end of period | 4,179 | 3,814 | |
Pension Benefits | Prior Service Cost | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | (15) | (22) | (25) |
Amortization for the period | 4 | 4 | 3 |
Deferrals for the period | 0 | 3 | 0 |
Impact of foreign currency changes and other | (1) | 0 | 0 |
Balance, end of period | (12) | (15) | (22) |
Pension Benefits | Net Actuarial (Gain) Loss | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 3,829 | 3,611 | 3,481 |
Amortization for the period | (217) | (213) | (191) |
Deferrals for the period | 634 | 430 | 323 |
Impact of foreign currency changes and other | (55) | 1 | (2) |
Balance, end of period | 4,191 | 3,829 | 3,611 |
Other Postretirement Benefits | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 449 | ||
Amortization for the period | 24 | 17 | 36 |
Deferrals for the period | (124) | 96 | |
Impact of foreign currency changes and other | 2 | (1) | |
Balance, end of period | 406 | 449 | |
Other Postretirement Benefits | Prior Service Cost | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 41 | 10 | 1 |
Amortization for the period | (4) | (1) | 0 |
Deferrals for the period | 27 | 32 | 9 |
Impact of foreign currency changes and other | 1 | 0 | 0 |
Balance, end of period | 65 | 41 | 10 |
Other Postretirement Benefits | Net Actuarial (Gain) Loss | |||
Pension And Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | |||
Balance, beginning of year | 408 | 344 | 557 |
Amortization for the period | (24) | (17) | (36) |
Deferrals for the period | (45) | 82 | (179) |
Impact of foreign currency changes and other | 2 | (1) | 2 |
Balance, end of period | $ 341 | $ 408 | $ 344 |
Employee Benefit Plans (Amoun_2
Employee Benefit Plans (Amounts Included in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Cost in Subsequent Year) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost | $ (4) |
Amortization of actuarial (gain) loss, net | 262 |
Total | 258 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost | 6 |
Amortization of actuarial (gain) loss, net | 17 |
Total | $ 23 |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions Related to Calculation of Domestic Benefit Obligation (End of Period) and Determination of Net Periodic (Benefit) Cost (Beginning of Period)) (Details) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2016 | |
Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 10.00% | ||||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 90.00% | ||||
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 3.30% | 4.30% | 3.65% | 4.15% | |
Rate of increase in compensation levels | 4.50% | 4.50% | 4.50% | 4.50% | |
Expected return on plan assets | 6.00% | 6.50% | 6.25% | 6.25% | |
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 3.25% | 4.30% | 3.60% | 4.05% | |
Expected return on plan assets | 6.75% | 7.00% | 7.00% | 7.00% | |
Health care cost trend rates | 6.25% | 6.00% | 6.20% | 6.60% | |
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% | 5.00% |
Employee Benefit Plans (Effects
Employee Benefit Plans (Effects of a One-Percentage Point Increase and Decrease in Assumed Health Care Cost Trend Rates) (Details) - Other Postretirement Benefits $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Increase in total service and interest costs | $ 6 |
Increase in postretirement benefit obligation | 110 |
Decrease in total service and interest costs | 5 |
Decrease in postretirement benefit obligation | $ 102 |
Employee Benefit Plans (Asset A
Employee Benefit Plans (Asset Allocation Targets Reflecting a Percentage of Total Assets by Asset Class) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 13,906 | $ 12,807 | $ 13,655 |
Pension Benefits | U.S. Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 475 | 518 | |
Pension Benefits | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 753 | 640 | |
Pension Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 8,844 | 8,038 | |
Pension Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 91 | 77 | |
Pension Benefits | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,458 | 1,238 | |
Pension Benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2,285 | 2,296 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,557 | 1,432 | $ 1,615 |
Other Postretirement Benefits | U.S. Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 771 | 644 | |
Other Postretirement Benefits | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 177 | 150 | |
Other Postretirement Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 446 | 500 | |
Other Postretirement Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 163 | $ 138 | |
Minimum | Pension Benefits | U.S. Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 2.00% | ||
Minimum | Pension Benefits | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 2.00% | ||
Minimum | Pension Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 54.00% | ||
Minimum | Pension Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 0.00% | ||
Minimum | Pension Benefits | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 2.00% | ||
Minimum | Pension Benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 6.00% | ||
Minimum | Other Postretirement Benefits | U.S. Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 29.00% | ||
Minimum | Other Postretirement Benefits | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 2.00% | ||
Minimum | Other Postretirement Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 10.00% | ||
Minimum | Other Postretirement Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 0.00% | ||
Minimum | Other Postretirement Benefits | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 0.00% | ||
Minimum | Other Postretirement Benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 0.00% | ||
Maximum | Pension Benefits | U.S. Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 8.00% | ||
Maximum | Pension Benefits | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 10.00% | ||
Maximum | Pension Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 66.00% | ||
Maximum | Pension Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 12.00% | ||
Maximum | Pension Benefits | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 16.00% | ||
Maximum | Pension Benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 27.00% | ||
Maximum | Other Postretirement Benefits | U.S. Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 66.00% | ||
Maximum | Other Postretirement Benefits | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 21.00% | ||
Maximum | Other Postretirement Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 48.00% | ||
Maximum | Other Postretirement Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 35.00% | ||
Maximum | Other Postretirement Benefits | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 0.00% | ||
Maximum | Other Postretirement Benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Asset allocation targets | 0.00% |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension and Post Retirement Asset Allocations in Accordance with Investment Guidelines) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Notional | $ 379,860 | $ 405,644 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 13,906 | 12,807 | $ 13,655 |
Net Value of investment of securities lending collateral invested in short-term bond | 135 | 157 | |
Liability for securities lending collateral | 135 | 157 | |
Pension Benefits | U.S. Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 475 | 518 | |
Pension Benefits | U.S. Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 204 | 448 | |
Pension Benefits | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 271 | 70 | |
Pension Benefits | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 753 | 640 | |
Pension Benefits | International Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 312 | 315 | |
Pension Benefits | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 393 | 283 | |
Pension Benefits | International Equities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 48 | 42 | |
Pension Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 8,844 | 8,038 | |
Pension Benefits | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,521 | 1,326 | |
Pension Benefits | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 521 | 485 | |
Pension Benefits | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 1 | |
Pension Benefits | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 783 | 712 | |
Pension Benefits | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 562 | 519 | |
Pension Benefits | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 93 | 7 | |
Pension Benefits | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 90 | 289 | |
Pension Benefits | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,281 | 3,478 | |
Pension Benefits | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 22 | 24 | |
Pension Benefits | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 485 | 474 | |
Pension Benefits | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 397 | 293 | |
Pension Benefits | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Notional | 2,462 | 1,694 | |
Total | 2 | 11 | |
Pension Benefits | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 53 | ||
Pension Benefits | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7 | 293 | |
Pension Benefits | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 79 | 73 | |
Pension Benefits | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 91 | 77 | |
Pension Benefits | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 61 | 74 | |
Pension Benefits | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 30 | 3 | |
Pension Benefits | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,458 | 1,238 | |
Pension Benefits | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 770 | 760 | |
Pension Benefits | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 688 | 478 | |
Pension Benefits | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2,285 | 2,296 | |
Pension Benefits | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 973 | 831 | |
Pension Benefits | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,312 | 1,465 | |
Pension Benefits | NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2,973 | 2,774 | |
Pension Benefits | NAV Practical Expedient | U.S. Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | International Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | International Equities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | NAV Practical Expedient | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 688 | 478 | |
Pension Benefits | NAV Practical Expedient | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 973 | 831 | |
Pension Benefits | NAV Practical Expedient | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,312 | 1,465 | |
Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 79 | 299 | |
Pension Benefits | Level 1 | U.S. Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | International Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | International Equities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Pension Benefits | Level 1 | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 7 | 293 | |
Pension Benefits | Level 1 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 37 | 6 | |
Pension Benefits | Level 1 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 5 | 0 | |
Pension Benefits | Level 1 | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 30 | 0 | |
Pension Benefits | Level 1 | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 1 | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 10,040 | 8,910 | |
Pension Benefits | Level 2 | U.S. Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 204 | 448 | |
Pension Benefits | Level 2 | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 271 | 70 | |
Pension Benefits | Level 2 | International Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 312 | 315 | |
Pension Benefits | Level 2 | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 393 | 283 | |
Pension Benefits | Level 2 | International Equities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 48 | 42 | |
Pension Benefits | Level 2 | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,521 | 1,326 | |
Pension Benefits | Level 2 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 521 | 485 | |
Pension Benefits | Level 2 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 1 | |
Pension Benefits | Level 2 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 783 | 712 | |
Pension Benefits | Level 2 | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 562 | 519 | |
Pension Benefits | Level 2 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 93 | 7 | |
Pension Benefits | Level 2 | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 90 | 289 | |
Pension Benefits | Level 2 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4,281 | 3,476 | |
Pension Benefits | Level 2 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 22 | 24 | |
Pension Benefits | Level 2 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 485 | 474 | |
Pension Benefits | Level 2 | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 397 | 293 | |
Pension Benefits | Level 2 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2 | 11 | |
Pension Benefits | Level 2 | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 53 | ||
Pension Benefits | Level 2 | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | (2) | 5 | |
Pension Benefits | Level 2 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 56 | 74 | |
Pension Benefits | Level 2 | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 3 | |
Pension Benefits | Level 2 | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 2 | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 814 | 824 | |
Pension Benefits | Level 3 | U.S. Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | International Equities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | International Equities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Mortgage-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | U.S. government securities (state & other) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 2 | |
Pension Benefits | Level 3 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Pension Benefits | Level 3 | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 44 | 62 | |
Pension Benefits | Level 3 | Fixed Maturities | Unrealized gain (loss) on investment of securities lending collateral | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Short-term Investments | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Short-term Investments | United Kingdom insurance pooled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Real Estate | Pooled separate accounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 770 | 760 | |
Pension Benefits | Level 3 | Real Estate | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Other | Partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Pension Benefits | Level 3 | Other | Hedge Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,557 | 1,432 | $ 1,615 |
Other Postretirement Benefits | U.S. Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 771 | 644 | |
Other Postretirement Benefits | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 83 | 75 | |
Other Postretirement Benefits | U.S. Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 31 | ||
Other Postretirement Benefits | U.S. Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 688 | 538 | |
Other Postretirement Benefits | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 177 | 150 | |
Other Postretirement Benefits | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 59 | 53 | |
Other Postretirement Benefits | International Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 6 | ||
Other Postretirement Benefits | International Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 118 | 91 | |
Other Postretirement Benefits | Fixed Maturities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 446 | 500 | |
Other Postretirement Benefits | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 131 | 130 | |
Other Postretirement Benefits | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 20 | 25 | |
Other Postretirement Benefits | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2 | ||
Other Postretirement Benefits | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 53 | 120 | |
Other Postretirement Benefits | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 15 | 27 | |
Other Postretirement Benefits | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 10 | 18 | |
Other Postretirement Benefits | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 16 | 18 | |
Other Postretirement Benefits | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Notional | 253 | 188 | |
Total | 0 | (1) | |
Other Postretirement Benefits | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 194 | 157 | |
Other Postretirement Benefits | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4 | 3 | |
Other Postretirement Benefits | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 3 | |
Other Postretirement Benefits | Short-term Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 163 | 138 | |
Other Postretirement Benefits | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 163 | 138 | |
Other Postretirement Benefits | NAV Practical Expedient | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | U.S. Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Other Postretirement Benefits | NAV Practical Expedient | U.S. Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | International Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Other Postretirement Benefits | NAV Practical Expedient | International Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | NAV Practical Expedient | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 167 | 166 | |
Other Postretirement Benefits | Level 1 | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | U.S. Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 25 | ||
Other Postretirement Benefits | Level 1 | U.S. Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | International Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Other Postretirement Benefits | Level 1 | International Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Other Postretirement Benefits | Level 1 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 4 | 3 | |
Other Postretirement Benefits | Level 1 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 1 | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 163 | 138 | |
Other Postretirement Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1,389 | 1,261 | |
Other Postretirement Benefits | Level 2 | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 83 | 75 | |
Other Postretirement Benefits | Level 2 | U.S. Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 6 | ||
Other Postretirement Benefits | Level 2 | U.S. Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 688 | 538 | |
Other Postretirement Benefits | Level 2 | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 59 | 53 | |
Other Postretirement Benefits | Level 2 | International Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 6 | ||
Other Postretirement Benefits | Level 2 | International Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 118 | 91 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 131 | 130 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 20 | 25 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 2 | ||
Other Postretirement Benefits | Level 2 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 53 | 120 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 15 | 26 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 10 | 17 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 16 | 18 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | (1) | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 194 | 157 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 2 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 2 | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 5 | |
Other Postretirement Benefits | Level 3 | U.S. Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | U.S. Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Other Postretirement Benefits | Level 3 | U.S. Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | International Equities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | International Equities | Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Other Postretirement Benefits | Level 3 | International Equities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Common/collective trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Other U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Non-U.S. government securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | ||
Other Postretirement Benefits | Level 3 | Fixed Maturities | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Asset-backed | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 1 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Collateralized Mortgage Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 1 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Other collateralized loans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Interest Rate Swaps | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Variable Life Insurance Policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 0 | 0 | |
Other Postretirement Benefits | Level 3 | Fixed Maturities | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | 1 | 3 | |
Other Postretirement Benefits | Level 3 | Short-term Investments | Registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total | $ 0 | $ 0 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes in Fair Value of Level 3 Pension and Post Retirement Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pooled Separate Accounts | Fixed Maturities | Pension Benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | $ 0 | $ 38 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | |
Relating to assets sold during the period | 0 | |
Purchases, sales and settlements | (38) | |
Transfers in and/or out of Level 3 (1) | 0 | |
Fair Value, end of period | 0 | |
Pooled Separate Accounts | Real Estate | Pension Benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 760 | 714 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 39 | 56 |
Relating to assets sold during the period | 15 | 8 |
Purchases, sales and settlements | (44) | (18) |
Transfers in and/or out of Level 3 (1) | 0 | 0 |
Fair Value, end of period | 770 | 760 |
Corporate Debt | Fixed Maturities | Pension Benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 2 | 1 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | 0 | (1) |
Transfers in and/or out of Level 3 (1) | (2) | 2 |
Fair Value, end of period | 0 | 2 |
Corporate Debt | Asset-backed | Fixed Maturities | Other Postretirement Benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 1 | 0 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | 0 | (1) |
Transfers in and/or out of Level 3 (1) | (1) | 2 |
Fair Value, end of period | 0 | 1 |
Collateralized Mortgage Obligations | Corporate Debt | Fixed Maturities | Other Postretirement Benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 1 | 2 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | (1) | (1) |
Transfers in and/or out of Level 3 (1) | 0 | 0 |
Fair Value, end of period | 0 | 1 |
Collateralized loan obligations | Corporate Debt | Fixed Maturities | Other Postretirement Benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 0 | 2 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | |
Relating to assets sold during the period | 0 | |
Purchases, sales and settlements | 0 | |
Transfers in and/or out of Level 3 (1) | (2) | |
Fair Value, end of period | 0 | |
Other | Fixed Maturities | Pension Benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 62 | 39 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | (18) | 23 |
Transfers in and/or out of Level 3 (1) | 0 | 0 |
Fair Value, end of period | 44 | 62 |
Other | Fixed Maturities | Other Postretirement Benefits | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value, beginning of period | 3 | 5 |
Actual Return on Assets: | ||
Relating to assets still held at the reporting date | 0 | 0 |
Relating to assets sold during the period | 0 | 0 |
Purchases, sales and settlements | (2) | (2) |
Transfers in and/or out of Level 3 (1) | 0 | 0 |
Fair Value, end of period | $ 1 | $ 3 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Pension and Postretirement Plan Asset Allocation) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 100.00% | 100.00% |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 100.00% | 100.00% |
U.S. Equities | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 3.00% | 4.00% |
U.S. Equities | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 50.00% | 43.00% |
International Equities | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 5.00% | 5.00% |
International Equities | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 11.00% | 10.00% |
Fixed Maturities | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 64.00% | 63.00% |
Fixed Maturities | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 29.00% | 37.00% |
Short-term investments | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 1.00% | 0.00% |
Short-term investments | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 10.00% | 10.00% |
Real Estate | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 11.00% | 10.00% |
Real Estate | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 0.00% | 0.00% |
Other | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 16.00% | 18.00% |
Other | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of asset class to total plan assets (actual) | 0.00% | 0.00% |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Benefit Payments for Company's Pension and Postretirement Plans as well as Expected Medicare Part D Subsidy Receipts Related to Postretirement Plan) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 938 |
2021 | 797 |
2022 | 825 |
2023 | 858 |
2024 | 865 |
2025-2029 | 4,577 |
Total | 8,860 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 147 |
2021 | 148 |
2022 | 149 |
2023 | 148 |
2024 | 146 |
2025-2029 | 698 |
Total | 1,436 |
Other Postretirement Benefits– Medicare Part D Subsidy Receipts | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 8 |
2021 | 8 |
2022 | 8 |
2023 | 7 |
2024 | 7 |
2025-2029 | 32 |
Total | $ 70 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Prudential Financial | |||
Class of Stock [Line Items] | |||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | |
Cash and short-term investments at carrying value excluding intercompany liquidity account | $ 4,061 | ||
Gibraltar Life | |||
Class of Stock [Line Items] | |||
Japan Permitted Percentage of Statutory Earnings w/o approval | 83.00% | ||
RBC or solvency margin capital in excess of the regulatory required minimums | 3.50 | ||
Prudential Insurance | |||
Class of Stock [Line Items] | |||
Unassigned Surplus | $ 7,511 | ||
Percentage exceed the greater/lesser of statutory surplus | 10.00% | ||
Prudential Annuities Life Assurance Corporation | |||
Class of Stock [Line Items] | |||
Percentage exceed the greater/lesser of statutory surplus | 10.00% | ||
POJ | |||
Class of Stock [Line Items] | |||
Japan Permitted Percentage of Statutory Earnings w/o approval | 83.00% | ||
Japan-Retained Earnings Level- Permitted Percentage of Prior Year Statutory Earnings | 100.00% | ||
RBC or solvency margin capital in excess of the regulatory required minimums | 3.5 | ||
Prudential International Insurance Holdings | |||
Class of Stock [Line Items] | |||
Proceeds from Dividends Received | $ 1,065 | ||
Permitted to be paid in 2020 | Prudential Insurance | |||
Class of Stock [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | 1,148 | ||
Permitted to be paid in 2020 | Prudential Annuities Life Assurance Corporation | |||
Class of Stock [Line Items] | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 204 |
Equity (Common Stock Changes in
Equity (Common Stock Changes in Number of Shares Issued, Held in Treasury and Outstanding) (Details) | Aug. 02, 2019USD ($)shares | Sep. 30, 2009USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | Dec. 31, 2017shares |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 660,111,339 | ||||
Ending Balance | 666,305,189 | 660,111,339 | |||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 3,600,000 | 5,900,000 | 5,800,000 | ||
Issued | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 660,100,000 | 660,100,000 | 660,100,000 | ||
Common Stock issued | 6,200,000 | 0 | 0 | ||
Common Stock acquired | 0 | 0 | 0 | ||
Stock-based compensation programs | 0 | 0 | 0 | ||
Ending Balance | 666,300,000 | 660,100,000 | 660,100,000 | ||
Held In Treasury | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 249,400,000 | 237,500,000 | 230,500,000 | ||
Common Stock issued | (5,500,000) | 0 | 0 | ||
Common Stock acquired | 27,200,000 | 14,900,000 | 11,500,000 | ||
Stock-based compensation programs | (3,600,000) | (3,000,000) | (4,500,000) | ||
Ending Balance | 267,500,000 | 249,400,000 | 237,500,000 | ||
Outstanding | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 410,700,000 | 422,600,000 | 429,600,000 | ||
Common Stock issued | 11,700,000 | 0 | 0 | ||
Common Stock acquired | (27,200,000) | (14,900,000) | (11,500,000) | ||
Stock-based compensation programs | 3,600,000 | 3,000,000 | 4,500,000 | ||
Ending Balance | 398,800,000 | 410,700,000 | 422,600,000 | ||
Exhangeable Surplus Notes | Long-term Debt | |||||
Class of Stock [Line Items] | |||||
Debt Instrument, Face Amount | $ | $ 500,000,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities | 6,200,000 | 5,100,000 | |||
Debt Instrument, Convertible, Conversion Ratio | 12.3877 | 10.1235 | |||
Surplus Notes | $ | $ 1,000 | $ 1,000 | $ 1,000 | ||
Common Stock Held in Treasury | Common Stock | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued During Period, Shares, Acquisitions | 5,500,000 |
Equity (Share Repurchases Autho
Equity (Share Repurchases Authorizations) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 05, 2019 | Dec. 31, 2016 | |
Under December 2018 Board Of Directors Authorization | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | ||||
Increased Under September 2019 Board Of Directors Authorization | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 2,500 | ||||
Under December 2017 Board Of Directors Authorization | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,500 | ||||
Under December 2016 Board Of Directors Authorization | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,250 | ||||
Other common stocks | Increased Under September 2019 Board Of Directors Authorization | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of Treasury Stock Shares Acquired | 27.2 | ||||
Other common stocks | Under December 2017 Board Of Directors Authorization | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of Treasury Stock Shares Acquired | 14.9 | ||||
Other common stocks | Under December 2016 Board Of Directors Authorization | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of Treasury Stock Shares Acquired | 11.5 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | [1] | Jan. 01, 2018 | Jan. 01, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning balance | $ 10,906 | ||||||
Income tax benefit (expense) | (3,811) | $ 1,812 | $ (784) | ||||
Cumulative effect of adoption | 9 | $ (14) | $ 0 | ||||
Ending balance | 24,039 | 10,906 | |||||
Foreign Currency Translation Adjustment | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning balance | (564) | (269) | (973) | ||||
Change in OCI before reclassifications | 37 | (74) | 768 | ||||
Amounts reclassified from AOCI | 27 | 1 | 1 | ||||
Income tax benefit (expense) | (36) | 9 | (65) | ||||
Ending balance | (536) | (564) | (269) | ||||
Net Unrealized Investment Gains (Losses) | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning balance | 14,745 | 19,968 | 18,171 | ||||
Change in OCI before reclassifications | 18,540 | (7,614) | 4,026 | ||||
Amounts reclassified from AOCI | (1,345) | (779) | (1,629) | ||||
Income tax benefit (expense) | (3,835) | 1,735 | (600) | ||||
Ending balance | 28,112 | 14,745 | 19,968 | ||||
Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning balance | (3,275) | (2,625) | (2,577) | ||||
Change in OCI before reclassifications | (563) | (547) | (153) | ||||
Amounts reclassified from AOCI | 241 | 227 | 224 | ||||
Income tax benefit (expense) | 60 | 68 | (119) | ||||
Ending balance | (3,537) | (3,275) | (2,625) | ||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning balance | 10,906 | 17,074 | 14,621 | ||||
Change in OCI before reclassifications | 18,014 | (8,235) | 4,641 | ||||
Amounts reclassified from AOCI | (1,077) | (551) | (1,404) | ||||
Income tax benefit (expense) | (3,811) | 1,812 | (784) | ||||
Cumulative effect of adoption | $ 7 | $ 1,653 | |||||
Ending balance | 24,039 | 10,906 | 17,074 | ||||
Cash flow hedges | Net Unrealized Investment Gains (Losses) | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Beginning balance | 811 | (39) | |||||
Ending balance | 832 | 811 | $ (39) | ||||
ASU 2016-01 | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | 57 | ||||||
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) | $ (847) | |||||
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 | ||||||
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 | ||||||
[1] | Includes the impact from the adoption of ASU 2017-08 and 2017-12. See Note 2. |
Equity (Reclassifications out o
Equity (Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Realized investment gains (losses), net | $ (459) | $ 1,977 | $ 432 |
Other income (loss) | 3,262 | (1,042) | 1,301 |
Total Foreign Currency Translation Adjustment | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 27 | 1 | 1 |
Net Unrealized Investment Gains (Losses) | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (1,345) | (779) | (1,629) |
Total amortization of defined benefit pension items | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 241 | 227 | 224 |
Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (1,077) | (551) | (1,404) |
Amounts reclassified from AOCI | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Realized investment gains (losses), net | (27) | (1) | (3) |
Other income (loss) | 0 | 0 | 2 |
Amortization of defined benefit items: | |||
Prior service cost | 0 | 3 | 3 |
Actuarial gain (loss) | (241) | (230) | (227) |
Amounts reclassified from AOCI | Total Foreign Currency Translation Adjustment | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | (27) | (1) | (1) |
Amounts reclassified from AOCI | Net Unrealized Investment Gains (Losses) | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 1,345 | 779 | 1,629 |
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 | (241) | (227) | (224) |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Amounts reclassified from AOCI | 1,077 | 551 | 1,404 |
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) | 966 | 228 | 1,647 |
Amounts reclassified from AOCI | Interest Rate | Cash Flow Hedges | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net unrealized investment gains (losses) | 58 | 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) | 6 | 7 | 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) | $ 315 | $ 543 | $ (16) |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which OTTI loss has been recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 10,906 | ||
Ending balance | 24,039 | $ 10,906 | |
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 | $ 18,171 |
Ending balance | 28,112 | 14,745 | 19,968 |
OTTI | Net Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 189 | 286 | 312 |
Net investment gains (losses) on investments arising during the period | 129 | (19) | 79 |
Reclassification adjustment for (gains) losses included in net income | (96) | (76) | (85) |
Reclassification adjustment for OTTI losses excluded from net income | 21 | (2) | (20) |
Ending balance | 243 | 189 | 286 |
OTTI | DAC, DSI, VOBA and Reinsurance Recoverables | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (1) | (2) | (5) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 0 | 1 | 3 |
Ending balance | (1) | (1) | (2) |
OTTI | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 4 | 3 | (6) |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | 1 | 1 | 9 |
Ending balance | 5 | 4 | 3 |
OTTI | Policyholders’ Dividends | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (23) | (46) | (47) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 1 | 23 | 1 |
Ending balance | (22) | (23) | (46) |
OTTI | Deferred Income Tax (Liability) Benefit | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (61) | (94) | (97) |
Net investment gains (losses) on investments arising during the period | (29) | 8 | (22) |
Reclassification adjustment for (gains) losses included in net income | 21 | 33 | 23 |
Reclassification adjustment for OTTI losses excluded from net income | (5) | 1 | 5 |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 0 | 0 | (1) |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | 0 | 0 | (2) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 0 | (9) | 0 |
Ending balance | (74) | (61) | (94) |
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 | 147 | 157 |
Net investment gains (losses) on investments arising during the period | 100 | (11) | 57 |
Reclassification adjustment for (gains) losses included in net income | (75) | (43) | (62) |
Reclassification adjustment for OTTI losses excluded from net income | 16 | (1) | (15) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 0 | 1 | 2 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | 1 | 1 | 7 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 1 | 14 | 1 |
Ending balance | $ 151 | $ 108 | $ 147 |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | [1] | Jan. 01, 2018 | Jan. 01, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ 10,906 | ||||||
Cumulative effect of adoption | $ 9 | $ (14) | $ 0 | ||||
Ending balance | 24,039 | 10,906 | |||||
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 14,745 | 19,968 | $ 18,171 | ||||
Ending balance | 28,112 | 14,745 | 19,968 | ||||
ASU 2016-01 | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | $ 57 | ||||||
ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | (847) | ||||||
ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | 2,282 | ||||||
ASU 2017-12 | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | 7 | ||||||
All Other | Net Unrealized Gains (Losses) on Investments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 22,531 | 36,112 | 32,420 | ||||
Net investment gains (losses) on investments arising during the period | 23,826 | (10,838) | 5,216 | ||||
Reclassification adjustment for (gains) losses included in net income | (1,249) | (703) | (1,544) | ||||
Reclassification adjustment for OTTI losses excluded from net income | (21) | 2 | 20 | ||||
Ending balance | 45,096 | 22,531 | 36,112 | ||||
All Other | DAC, DSI, VOBA and Reinsurance Recoverables | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (738) | (1,580) | (1,056) | ||||
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (846) | 842 | (524) | ||||
Ending balance | (1,584) | (738) | (1,580) | ||||
All Other | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (791) | (1,243) | (1,136) | ||||
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | (2,123) | 452 | (107) | ||||
Ending balance | (2,914) | (791) | (1,243) | ||||
All Other | Policyholders’ Dividends | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (894) | (3,631) | (2,980) | ||||
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (2,450) | 1,924 | (651) | ||||
Ending balance | (3,344) | (894) | (3,631) | ||||
All Other | Deferred Income Tax (Liability) Benefit | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | (5,471) | (9,837) | (9,234) | ||||
Net investment gains (losses) on investments arising during the period | (5,282) | 2,893 | (1,425) | ||||
Reclassification adjustment for (gains) losses included in net income | 277 | 303 | 421 | ||||
Reclassification adjustment for OTTI losses excluded from net income | 5 | (1) | (5) | ||||
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 190 | (263) | 191 | ||||
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | 475 | (186) | 25 | ||||
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 515 | (874) | 190 | ||||
Ending balance | (9,293) | (5,471) | (9,837) | ||||
All Other | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 14,637 | 19,821 | 18,014 | ||||
Net investment gains (losses) on investments arising during the period | 18,544 | (7,945) | 3,791 | ||||
Reclassification adjustment for (gains) losses included in net income | (972) | (400) | (1,123) | ||||
Reclassification adjustment for OTTI losses excluded from net income | (16) | 1 | 15 | ||||
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (656) | 579 | (333) | ||||
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | (1,648) | 266 | (82) | ||||
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (1,935) | 1,050 | (461) | ||||
Ending balance | 27,961 | 14,637 | $ 19,821 | ||||
All Other | ASU 2016-01 | Net Unrealized Gains (Losses) on Investments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | (2,042) | ||||||
All Other | ASU 2016-01 | Policyholders’ Dividends | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | 813 | ||||||
All Other | ASU 2016-01 | Deferred Income Tax (Liability) Benefit | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | 212 | ||||||
All Other | ASU 2016-01 | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | (1,017) | ||||||
All Other | ASU 2018-02 | Deferred Income Tax (Liability) Benefit | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | 2,282 | ||||||
All Other | ASU 2018-02 | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | $ 2,282 | ||||||
All Other | ASU 2017-12 | Net Unrealized Gains (Losses) on Investments | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | 9 | ||||||
All Other | ASU 2017-12 | Deferred Income Tax (Liability) Benefit | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | (2) | ||||||
All Other | ASU 2017-12 | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Cumulative effect of adoption | $ 7 | ||||||
[1] | Includes the impact from the adoption of ASU 2017-08 and 2017-12. See Note 2. |
Equity (Statutory Financial Inf
Equity (Statutory Financial Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Prudential Insurance | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss)(1) | $ (169) | $ 1,324 | $ (217) |
Statutory capital and surplus | 11,483 | 10,695 | 9,948 |
PALAC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory net income (loss)(1) | (2,052) | (852) | 3,911 |
Statutory capital and surplus | $ 4,748 | $ 6,396 | $ 8,059 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) $ / shares in Units, shares in Millions | Aug. 02, 2019USD ($)shares | Sep. 30, 2009USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | Dec. 31, 2017shares |
Debt Instrument [Line Items] | |||||
Undistributed earnings allocated to participating unvested share-based payment awards, weighted outstanding shares | 4.6 | 4.9 | 5.2 | ||
Exchangeable Surplus Notes (in shares) | 3.6 | 5.9 | 5.8 | ||
Long-term Debt | Exhangeable Surplus Notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ | $ 500,000,000 | ||||
Interest Rate | 5.36% | ||||
Debt Instrument, Convertible, Conversion Ratio | 12.3877 | 10.1235 | |||
Surplus notes principal amount, for each | $ | $ 1,000 | $ 1,000 | $ 1,000 | ||
Exchangeable Surplus Notes (in shares) | 6.2 | 5.1 | |||
Exchange price of common stock, per share | $ / shares | $ 98.78 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of the Numerators and Denominators of the Basic and Diluted Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic earnings per share | |||||||||||
Net income (loss) | $ 1,138 | $ 1,425 | $ 738 | $ 937 | $ 849 | $ 1,675 | $ 200 | $ 1,364 | $ 4,238 | $ 4,088 | $ 7,974 |
Less: Income (loss) attributable to noncontrolling interests | $ 10 | $ 7 | $ 30 | $ 5 | $ 7 | $ 3 | $ 3 | $ 1 | 52 | 14 | 111 |
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards | 46 | 48 | 95 | ||||||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Income | $ 4,140 | $ 4,026 | $ 7,768 | ||||||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Weighted Average Shares | 404.8 | 417.6 | 427 | ||||||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Per Share Amount | $ 2.78 | $ 3.47 | $ 1.73 | $ 2.25 | $ 2.01 | $ 3.97 | $ 0.46 | $ 3.19 | $ 10.23 | $ 9.64 | $ 18.19 |
Dilutive Securities, Effect on Basic Earnings Per Share [Abstract] | |||||||||||
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic | $ 46 | $ 48 | $ 95 | ||||||||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted | $ 45 | $ 47 | $ 94 | ||||||||
Stock options, Weighted Average Shares | 1.1 | 1.5 | 2.1 | ||||||||
Deferred and long-term compensation programs (in shares) | 1.4 | 1.2 | 1.1 | ||||||||
Exchangeable Surplus Notes | $ 12 | $ 21 | $ 17 | ||||||||
Exchangeable Surplus Notes (in shares) | 3.6 | 5.9 | 5.8 | ||||||||
Diluted earnings per share | |||||||||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Income | $ 4,153 | $ 4,048 | $ 7,786 | ||||||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Weighted Average Shares | 410.9 | 426.2 | 436 | ||||||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Per Share Amount | $ 2.76 | $ 3.44 | $ 1.71 | $ 2.22 | $ 1.99 | $ 3.90 | $ 0.46 | $ 3.14 | $ 10.11 | $ 9.50 | $ 17.86 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities Excluded From the Computation of Diluted Earnings Per Share) (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 1.2 | 0.7 | 0.4 |
Antidilutive stock options based on application of the treasury stock method | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 1.2 | 0.7 | 0.3 |
Weighted average exercise price of options excluded from computation of diluted earnings per share (in dollars per share) | $ 102.84 | $ 108.34 | $ 110.18 |
Antidilutive stock options due to net loss available to holders of Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 0 | 0 | 0 |
Antidilutive shares based on application of the treasury stock method | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 0 | 0 | 0.1 |
Antidilutive shares due to net loss available to holders of Common Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Weighted average shares of antidilutive security excluded from computation of diluted earnings per share (in shares) | 0 | 0 | 0 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax benefit realized for exercises of stock options | $ 5 | $ 7 | $ 39 |
Tax benefit realized upon vesting of restricted stock shares, restricted stock units, and performance shares | 52 | 49 | 70 |
Cash used to settle performance units | 32 | $ 29 | $ 27 |
Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Tax benefit realized for exercises of stock options | $ 2 | ||
Omnibus Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Authorized shares remain available for grant including previously authorized but unissued shares under the Option Plan | 14,183,145 | ||
Employee stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum term of stock option granted (in years) | 10 years | ||
Vesting period | 3 years | ||
Weighed Average grant date fair value of stock options granted (in dollars per share) | $ 20.02 | $ 27.11 | $ 27.91 |
The total intrinsic value of stock options exercised | $ 21 | $ 28 | $ 109 |
Unrecognized Compensation Cost | $ 2 | ||
Weighted Average Recognition Period (in years) | 1 year 5 months 15 days | ||
Employee stock options | Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Maximum term of stock option granted (in years) | 10 years | ||
Vesting period | 3 years | ||
Weighed Average grant date fair value of stock options granted (in dollars per share) | $ 86.31 | ||
The total intrinsic value of stock options exercised | $ 3 | ||
Unrecognized Compensation Cost | $ 45 | ||
Weighted Average Recognition Period (in years) | 3 years 1 month 17 days | ||
Employee Restricted Stock Restricted Units And Performance Shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
The fair market value of share awards released | $ 255 | $ 238 | $ 196 |
Unrecognized Compensation Cost | $ 153 | ||
Weighted Average Recognition Period (in years) | 1 year 8 months 19 days | ||
Employee Restricted Stock Restricted Units And Performance Shares | Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized Compensation Cost | $ 10 | ||
Weighted Average Recognition Period (in years) | 4 years 2 months 1 day | ||
Employee restricted stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 2,024,896 | ||
Granted (in dollars per share) | $ 93.35 | $ 106.32 | $ 110.39 |
Employee restricted stock units | Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||
Granted (in dollars per share) | $ 87.67 | ||
Employee performance shares and performance units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 757,807 | ||
Granted (in dollars per share) | $ 90.68 | $ 81.55 | $ 114.98 |
Employee performance shares and performance units | Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||
Granted (in dollars per share) | $ 89.81 |
Share-Based Payments (Weighted
Share-Based Payments (Weighted Average Grant Date Assumptions Used in Binomial Optional Valuation Model) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Expected volatility | 34.63% | 35.39% | 35.29% |
Expected dividend yield | 4.26% | 2.88% | 2.84% |
Expected term | 5 years 6 months 14 days | 5 years 5 months 26 days | 5 years 7 months 6 days |
Risk-free interest rate | 2.50% | 2.64% | 2.06% |
Share-Based Payments (Compensat
Share-Based Payments (Compensation Cost Recognized and Related Income Tax Benefit for Stock Options, Restricted Stock Shares, Restricted Stock Units, and Performance Share Awards) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | $ 231 | $ 155 | $ 263 |
Income Tax Benefit | 55 | 36 | 97 |
Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 5 | ||
Income Tax Benefit | 1 | ||
Employee stock options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 11 | 13 | 12 |
Income Tax Benefit | 3 | 3 | 5 |
Employee stock options | Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 4 | ||
Income Tax Benefit | 1 | ||
Employee restricted stock units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 149 | 139 | 142 |
Income Tax Benefit | 35 | 32 | 51 |
Employee restricted stock units | Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 1 | ||
Income Tax Benefit | 0 | ||
Employee performance shares and performance units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 71 | 3 | 109 |
Income Tax Benefit | 17 | $ 1 | $ 41 |
Employee performance shares and performance units | Assurance IQ | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total Compensation Cost Recognized | 0 | ||
Income Tax Benefit | $ 0 |
Share-Based Payments (Summary o
Share-Based Payments (Summary of the Status of the Company's Employee Stock Option Grants) (Details) - Employee stock options | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Outstanding (in shares) | shares | 4,584,244 |
Granted (in shares) | shares | 569,137 |
Exercised (in shares) | shares | (541,473) |
Forfeited (in shares) | shares | (165) |
Expired (in shares) | shares | (746) |
Outstanding (in shares) | shares | 4,610,997 |
Exercisable (in shares) | shares | 3,614,679 |
Weighted Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 72.03 |
Granted (in dollars per share) | $ / shares | 93.36 |
Exercised (in dollars per share) | $ / shares | 58.56 |
Forfeited (in dollars per share) | $ / shares | 76.71 |
Expired (in dollars per share) | $ / shares | 19.86 |
Outstanding (in dollars per share) | $ / shares | 76.26 |
Exercisable (in dollars per share) | $ / shares | $ 70.03 |
Assurance IQ | |
Shares | |
Outstanding (in shares) | shares | 0 |
Granted (in shares) | shares | 584,017 |
Exercised (in shares) | shares | (36,825) |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding (in shares) | shares | 547,192 |
Exercisable (in shares) | shares | 33,596 |
Weighted Average Exercise Price | |
Outstanding (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 1.36 |
Exercised (in dollars per share) | $ / shares | 0.98 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Outstanding (in dollars per share) | $ / shares | 1.38 |
Exercisable (in dollars per share) | $ / shares | $ 2.08 |
Share-Based Payments (Weighte_2
Share-Based Payments (Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value of Stock Options Outstanding, Vested and Expected to Vest, and Exercisable) (Details) - Employee stock options $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Weighted Average Remaining Contractual Term | 4 years 6 months 10 days |
Exercisable, Weighted Average Remaining Contractual Term | 3 years 8 months 23 days |
Outstanding, Aggregate Intrinsic Value | $ 92 |
Exercisable, Aggregate Intrinsic Value | $ 92 |
Assurance IQ | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding, Weighted Average Remaining Contractual Term | 8 years 5 months 19 days |
Exercisable, Weighted Average Remaining Contractual Term | 8 years 8 months 8 days |
Outstanding, Aggregate Intrinsic Value | $ 51 |
Exercisable, Aggregate Intrinsic Value | $ 3 |
Share-Based Payments (Summary_2
Share-Based Payments (Summary of the Company's Employee Restricted Stock Shares, Restricted Stock Units and Performance Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares to be awarded at the end of each performance period | 0.00% | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares to be awarded at the end of each performance period | 125.00% | ||
Employee restricted stock units | |||
Restricted Awards | |||
Restricted (in shares) | 4,760,914 | ||
Granted (in shares) | 1,919,168 | ||
Forfeited (in shares) | (183,997) | ||
Released (in shares) | (2,024,896) | ||
Restricted (in shares) | 4,471,189 | 4,760,914 | |
Weighted Average Grant Date Fair Value | |||
Restricted (in dollars per share) | $ 90.09 | ||
Granted (in dollars per share) | 93.35 | $ 106.32 | $ 110.39 |
Forfeited (in dollars per share) | 100.09 | ||
Released (in dollars per share) | 65.44 | ||
Restricted (in dollars per share) | $ 102.25 | $ 90.09 | |
Employee performance shares and performance units | |||
Restricted Awards | |||
Restricted (in shares) | 1,809,075 | ||
Granted (in shares) | 691,724 | ||
Forfeited (in shares) | (12,947) | ||
Performance adjustment (in shares) | 92,841 | ||
Released (in shares) | (757,807) | ||
Restricted (in shares) | 1,822,886 | 1,809,075 | |
Weighted Average Grant Date Fair Value | |||
Restricted (in dollars per share) | $ 81.55 | ||
Granted (in dollars per share) | 90.68 | $ 81.55 | $ 114.98 |
Forfeited (in dollars per share) | 93.26 | ||
Performance adjustment (in dollars per share) | 93.36 | ||
Released (in dollars per share) | 93.36 | ||
Restricted (in dollars per share) | $ 80.62 | $ 81.55 | |
Assurance IQ | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares to be awarded at the end of each performance period | 0.00% | ||
Variable profit sharing | $ 900 | ||
Assurance IQ | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares to be awarded at the end of each performance period | 100.00% | ||
Variable profit sharing | $ 1,300 | ||
Assurance IQ | Employee restricted stock units | |||
Restricted Awards | |||
Restricted (in shares) | 0 | ||
Granted (in shares) | 125,788 | ||
Forfeited (in shares) | 0 | ||
Performance adjustment (in shares) | 0 | ||
Released (in shares) | 0 | ||
Restricted (in shares) | 125,788 | 0 | |
Weighted Average Grant Date Fair Value | |||
Restricted (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 87.67 | ||
Forfeited (in dollars per share) | 0 | ||
Performance adjustment (in dollars per share) | 0 | ||
Released (in dollars per share) | 0 | ||
Restricted (in dollars per share) | $ 87.67 | $ 0 | |
Assurance IQ | Employee performance shares and performance units | |||
Restricted Awards | |||
Restricted (in shares) | 0 | ||
Granted (in shares) | 1,982,708 | ||
Forfeited (in shares) | 0 | ||
Performance adjustment (in shares) | 0 | ||
Released (in shares) | 0 | ||
Restricted (in shares) | 1,982,708 | 0 | |
Weighted Average Grant Date Fair Value | |||
Restricted (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 89.81 | ||
Forfeited (in dollars per share) | 0 | ||
Performance adjustment (in dollars per share) | 0 | ||
Released (in dollars per share) | 0 | ||
Restricted (in dollars per share) | $ 89.81 | $ 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | segment | 8 | ||
Total deferred gain (loss) | $ 222 | ||
Synthetic Gic Fees | 147 | $ 146 | $ 159 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net, Terminated Or Offset Before Maturity | $ 41 | $ 19 | $ 53 |
Segment Information (Operating
Segment Information (Operating Income of Reportable Segments) (Reconciling Items) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
(Gains) Losses On Assets Supporting Experience-Rated Contractholder Liabilities, Net | $ 971 | $ (863) | $ 336 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Terminated hedges of foreign currency earnings | 65 | (15) | (15) |
Current period yield adjustments | 331 | 367 | 434 |
Principal source of earnings | (37) | 219 | (8) |
Investments carried at fair value through net income | 558 | (417) | 184 |
Foreign currency exchange movements | 61 | (289) | (135) |
Other activities | (31) | (41) | (20) |
(Gains) Losses On Assets Supporting Experience-Rated Contractholder Liabilities, Net | $ 22 | $ (153) | $ 185 |
Segment Information (Operatin_2
Segment Information (Operating Income of Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | $ 5,085 | $ 4,834 | $ 6,487 |
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | 6,098 | 6,368 | 6,244 |
Operating Segments | PGIM | PGIM | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | 998 | 959 | 979 |
Operating Segments | Total U.S. Workplace Solutions division | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | 1,586 | 1,278 | 1,497 |
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) before income taxes and equity in earnings of operating joint ventures | 1,301 | 1,049 | 1,244 |
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) before income taxes and equity in earnings of operating joint ventures | 285 | 229 | 253 |
Operating Segments | Total U.S. Individual Solutions division | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | 1,930 | 2,148 | 2,007 |
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) before income taxes and equity in earnings of operating joint ventures | 1,843 | 1,925 | 2,198 |
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) before income taxes and equity in earnings of operating joint ventures | 87 | 223 | (191) |
Operating Segments | Assurance IQ division | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | (9) | 0 | 0 |
Operating Segments | Assurance IQ division | Assurance IQ | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | (9) | 0 | 0 |
Operating Segments | Total International Insurance division | International Businesses | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | 3,359 | 3,266 | 3,198 |
Operating Segments | Total Corporate and Other | Total Corporate and Other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | (1,766) | (1,283) | (1,437) |
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) before income taxes and equity in earnings of operating joint ventures | (764) | 466 | (417) |
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) before income taxes and equity in earnings of operating joint ventures | (125) | (316) | 544 |
Segment Reconciling Items | Segment Reconciling Items, Market Experience Updates | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | (462) | 0 | 0 |
Segment Reconciling Items | Segment Reconciling Items, Other Adjustments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | (47) | 0 | 0 |
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) before income taxes and equity in earnings of operating joint ventures | (103) | (87) | 33 |
Segment Reconciling Items | Closed Block division | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | 36 | (62) | 45 |
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) before income taxes and equity in earnings of operating joint ventures | 452 | (1,535) | 38 |
U.S. Businesses | Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Income (loss) before income taxes and equity in earnings of operating joint ventures | $ 3,507 | $ 3,426 | $ 3,504 |
Segment Information (Certain Fi
Segment Information (Certain Financial Information for the Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 896,552 | $ 815,078 | $ 896,552 | $ 815,078 | |||||||
Revenues | 19,223 | $ 15,105 | $ 15,388 | $ 15,091 | 18,432 | $ 16,148 | $ 14,655 | $ 13,757 | 64,807 | 62,992 | $ 59,689 |
Net Investment Income | 17,585 | 16,176 | 16,435 | ||||||||
Total benefits and expenses | 17,879 | $ 13,380 | $ 14,512 | $ 13,951 | 17,379 | $ 14,310 | $ 14,405 | $ 12,064 | 59,722 | 58,158 | 53,202 |
Policyholders’ Benefits | 36,820 | 39,404 | 33,794 | ||||||||
Interest Credited to Policyholders’ Account Balances | 4,880 | 3,196 | 3,822 | ||||||||
Dividends to Policyholders | 2,274 | 1,336 | 2,091 | ||||||||
Interest Expense | 1,550 | 1,420 | 1,327 | ||||||||
Amortization of DAC | 2,332 | 2,273 | 1,580 | ||||||||
Closed Block Business | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 61,327 | 59,039 | 61,327 | 59,039 | |||||||
Closed Block Business | Closed Block division | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 5,642 | 4,678 | 5,826 | ||||||||
Net Investment Income | 2,323 | 2,288 | 2,653 | ||||||||
Total benefits and expenses | 5,606 | 4,740 | 5,781 | ||||||||
Policyholders’ Benefits | 2,907 | 2,972 | 3,219 | ||||||||
Interest Credited to Policyholders’ Account Balances | 130 | 132 | 133 | ||||||||
Dividends to Policyholders | 2,187 | 1,236 | 2,007 | ||||||||
Interest Expense | 7 | 2 | 1 | ||||||||
Amortization of DAC | 29 | 35 | 37 | ||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 58,132 | 58,130 | 53,646 | ||||||||
Net Investment Income | 14,802 | 13,490 | 13,499 | ||||||||
Total benefits and expenses | 52,034 | 51,762 | 47,402 | ||||||||
Policyholders’ Benefits | 33,102 | 34,312 | 29,987 | ||||||||
Interest Credited to Policyholders’ Account Balances | 3,871 | 3,720 | 3,729 | ||||||||
Dividends to Policyholders | 86 | 99 | 84 | ||||||||
Interest Expense | 1,539 | 1,414 | 1,322 | ||||||||
Amortization of DAC | 2,334 | 2,114 | 2,093 | ||||||||
Operating Segments | Other Divested and Run-off Businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,330 | 805 | 775 | ||||||||
Net Investment Income | 496 | 439 | 321 | ||||||||
Total benefits and expenses | 878 | 2,340 | 737 | ||||||||
Policyholders’ Benefits | 747 | 2,195 | 657 | ||||||||
Interest Credited to Policyholders’ Account Balances | 20 | 14 | 0 | ||||||||
Dividends to Policyholders | 1 | 1 | 0 | ||||||||
Interest Expense | 4 | 4 | 4 | ||||||||
Amortization of DAC | 6 | 6 | 0 | ||||||||
Operating Segments | PGIM | PGIM | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 47,655 | 47,690 | 47,655 | 47,690 | |||||||
Revenues | 3,589 | 3,294 | 3,355 | ||||||||
Net Investment Income | 200 | 73 | 170 | ||||||||
Total benefits and expenses | 2,591 | 2,335 | 2,376 | ||||||||
Policyholders’ Benefits | 0 | 0 | 0 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 49 | 40 | 27 | ||||||||
Amortization of DAC | 6 | 8 | 11 | ||||||||
Operating Segments | Total U.S. Workplace Solutions division | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 241,865 | 217,252 | 241,865 | 217,252 | |||||||
Revenues | 20,814 | 22,510 | 19,314 | ||||||||
Net Investment Income | 5,362 | 4,993 | 5,119 | ||||||||
Total benefits and expenses | 19,228 | 21,232 | 17,817 | ||||||||
Policyholders’ Benefits | 15,318 | 17,456 | 14,108 | ||||||||
Interest Credited to Policyholders’ Account Balances | 1,789 | 1,712 | 1,781 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 48 | 37 | 31 | ||||||||
Amortization of DAC | 45 | 38 | 40 | ||||||||
Operating Segments | Total U.S. Workplace Solutions division | Retirement | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 198,153 | 175,525 | 198,153 | 175,525 | |||||||
Revenues | 15,064 | 16,825 | 13,843 | ||||||||
Net Investment Income | 4,738 | 4,377 | 4,482 | ||||||||
Total benefits and expenses | 13,763 | 15,776 | 12,599 | ||||||||
Policyholders’ Benefits | 11,061 | 13,215 | 10,035 | ||||||||
Interest Credited to Policyholders’ Account Balances | 1,503 | 1,430 | 1,507 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 46 | 35 | 26 | ||||||||
Amortization of DAC | 38 | 33 | 26 | ||||||||
Operating Segments | Total U.S. Workplace Solutions division | Group Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 43,712 | 41,727 | 43,712 | 41,727 | |||||||
Revenues | 5,750 | 5,685 | 5,471 | ||||||||
Net Investment Income | 624 | 616 | 637 | ||||||||
Total benefits and expenses | 5,465 | 5,456 | 5,218 | ||||||||
Policyholders’ Benefits | 4,257 | 4,241 | 4,073 | ||||||||
Interest Credited to Policyholders’ Account Balances | 286 | 282 | 274 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 2 | 2 | 5 | ||||||||
Amortization of DAC | 7 | 5 | 14 | ||||||||
Operating Segments | Total U.S. Individual Solutions division | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 285,112 | 251,638 | 285,112 | 251,638 | |||||||
Revenues | 11,110 | 10,797 | 10,084 | ||||||||
Net Investment Income | 3,103 | 2,727 | 2,690 | ||||||||
Total benefits and expenses | 9,180 | 8,649 | 8,077 | ||||||||
Policyholders’ Benefits | 3,213 | 2,859 | 2,418 | ||||||||
Interest Credited to Policyholders’ Account Balances | 1,164 | 1,101 | 1,049 | ||||||||
Dividends to Policyholders | 38 | 37 | 36 | ||||||||
Interest Expense | 896 | 781 | 718 | ||||||||
Amortization of DAC | 1,090 | 879 | 947 | ||||||||
Operating Segments | Total U.S. Individual Solutions division | Individual Annuities | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 189,040 | 167,899 | 189,040 | 167,899 | |||||||
Revenues | 4,995 | 4,966 | 5,110 | ||||||||
Net Investment Income | 856 | 694 | 742 | ||||||||
Total benefits and expenses | 3,152 | 3,041 | 2,912 | ||||||||
Policyholders’ Benefits | 435 | 370 | 318 | ||||||||
Interest Credited to Policyholders’ Account Balances | 334 | 335 | 330 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 122 | 67 | 70 | ||||||||
Amortization of DAC | 513 | 511 | 464 | ||||||||
Operating Segments | Total U.S. Individual Solutions division | Individual Life | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 96,072 | 83,739 | 96,072 | 83,739 | |||||||
Revenues | 6,115 | 5,831 | 4,974 | ||||||||
Net Investment Income | 2,247 | 2,033 | 1,948 | ||||||||
Total benefits and expenses | 6,028 | 5,608 | 5,165 | ||||||||
Policyholders’ Benefits | 2,778 | 2,489 | 2,100 | ||||||||
Interest Credited to Policyholders’ Account Balances | 830 | 766 | 719 | ||||||||
Dividends to Policyholders | 38 | 37 | 36 | ||||||||
Interest Expense | 774 | 714 | 648 | ||||||||
Amortization of DAC | 577 | 368 | 483 | ||||||||
Operating Segments | Assurance IQ division | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 2,639 | 0 | 2,639 | 0 | |||||||
Revenues | 101 | ||||||||||
Net Investment Income | 0 | ||||||||||
Total benefits and expenses | 110 | ||||||||||
Policyholders’ Benefits | 0 | ||||||||||
Interest Credited to Policyholders’ Account Balances | 0 | ||||||||||
Dividends to Policyholders | 0 | ||||||||||
Interest Expense | 0 | ||||||||||
Amortization of DAC | 0 | ||||||||||
Operating Segments | Assurance IQ division | Assurance IQ | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 2,639 | 0 | 2,639 | 0 | |||||||
Revenues | 101 | ||||||||||
Net Investment Income | 0 | ||||||||||
Total benefits and expenses | 110 | ||||||||||
Policyholders’ Benefits | 0 | ||||||||||
Interest Credited to Policyholders’ Account Balances | 0 | ||||||||||
Dividends to Policyholders | 0 | ||||||||||
Interest Expense | 0 | ||||||||||
Amortization of DAC | 0 | ||||||||||
Operating Segments | Total International Insurance division | International Businesses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 241,071 | 222,633 | 241,071 | 222,633 | |||||||
Revenues | 23,195 | 22,234 | 21,560 | ||||||||
Net Investment Income | 5,558 | 5,245 | 5,027 | ||||||||
Total benefits and expenses | 19,836 | 18,968 | 18,362 | ||||||||
Policyholders’ Benefits | 14,535 | 14,009 | 13,440 | ||||||||
Interest Credited to Policyholders’ Account Balances | 918 | 907 | 899 | ||||||||
Dividends to Policyholders | 48 | 62 | 48 | ||||||||
Interest Expense | 25 | 21 | 13 | ||||||||
Amortization of DAC | 1,239 | 1,233 | 1,138 | ||||||||
Operating Segments | Corporate and Other | Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | 16,883 | 16,826 | 16,883 | 16,826 | |||||||
Revenues | (677) | (705) | (667) | ||||||||
Net Investment Income | 579 | 452 | 493 | ||||||||
Total benefits and expenses | 1,089 | 578 | 770 | ||||||||
Policyholders’ Benefits | 36 | (12) | 21 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 521 | 535 | 533 | ||||||||
Amortization of DAC | (46) | (44) | (43) | ||||||||
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 185 | (244) | (266) | ||||||||
Net Investment Income | (36) | (41) | (38) | ||||||||
Total benefits and expenses | 949 | (710) | 151 | ||||||||
Policyholders’ Benefits | 0 | 0 | 0 | ||||||||
Interest Credited to Policyholders’ Account Balances | 949 | (710) | 151 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Amortization of DAC | 0 | 0 | 0 | ||||||||
Segment Reconciling Items | Charges related to realized investment gains (losses), net | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (254) | (274) | (215) | ||||||||
Net Investment Income | 0 | 0 | 0 | ||||||||
Total benefits and expenses | (129) | 42 | (759) | ||||||||
Policyholders’ Benefits | (136) | (75) | (69) | ||||||||
Interest Credited to Policyholders’ Account Balances | (94) | 40 | (191) | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Amortization of DAC | (181) | 118 | (550) | ||||||||
Segment Reconciling Items | Segment Reconciling Items, Market Experience Updates | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (77) | ||||||||||
Net Investment Income | 0 | ||||||||||
Total benefits and expenses | 385 | ||||||||||
Policyholders’ Benefits | 200 | ||||||||||
Interest Credited to Policyholders’ Account Balances | 4 | ||||||||||
Dividends to Policyholders | 0 | ||||||||||
Interest Expense | 0 | ||||||||||
Amortization of DAC | 144 | ||||||||||
Segment Reconciling Items | Segment Reconciling Items, Other Adjustments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (5) | ||||||||||
Net Investment Income | 0 | ||||||||||
Total benefits and expenses | 42 | ||||||||||
Policyholders’ Benefits | 0 | ||||||||||
Interest Credited to Policyholders’ Account Balances | 0 | ||||||||||
Dividends to Policyholders | 0 | ||||||||||
Interest Expense | 0 | ||||||||||
Amortization of DAC | 0 | ||||||||||
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | (146) | (103) | (77) | ||||||||
Net Investment Income | 0 | 0 | 0 | ||||||||
Total benefits and expenses | (43) | (16) | (110) | ||||||||
Policyholders’ Benefits | 0 | 0 | 0 | ||||||||
Interest Credited to Policyholders’ Account Balances | 0 | 0 | 0 | ||||||||
Dividends to Policyholders | 0 | 0 | 0 | ||||||||
Interest Expense | 0 | 0 | 0 | ||||||||
Amortization of DAC | 0 | 0 | 0 | ||||||||
U.S. Businesses | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 529,616 | $ 468,890 | 529,616 | 468,890 | |||||||
Revenues | 32,025 | 33,307 | 29,398 | ||||||||
Net Investment Income | 8,465 | 7,720 | 7,809 | ||||||||
Total benefits and expenses | 28,518 | 29,881 | 25,894 | ||||||||
Policyholders’ Benefits | 18,531 | 20,315 | 16,526 | ||||||||
Interest Credited to Policyholders’ Account Balances | 2,953 | 2,813 | 2,830 | ||||||||
Dividends to Policyholders | 38 | 37 | 36 | ||||||||
Interest Expense | 944 | 818 | 749 | ||||||||
Amortization of DAC | $ 1,135 | $ 917 | $ 987 |
Segment Information (Revenues a
Segment Information (Revenues and Asset Management Revenues) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Insurance Agency Management Fee | $ 4,239 | $ 4,100 | $ 4,127 | ||||||||
Total revenues | $ 19,223 | $ 15,105 | $ 15,388 | $ 15,091 | $ 18,432 | $ 16,148 | $ 14,655 | $ 13,757 | 64,807 | 62,992 | 59,689 |
PGIM | PGIM | Intersegment Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 777 | 731 | 717 | ||||||||
Domestic operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 40,868 | 40,603 | 36,573 | ||||||||
Foreign operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 23,939 | 22,389 | 23,116 | ||||||||
Foreign operations, Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 19,626 | 19,125 | 19,589 | ||||||||
Foreign operations, Korea | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,638 | 1,495 | 1,567 | ||||||||
Management Service, Base | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Insurance Agency Management Fee | 3,489 | 3,438 | 3,328 | ||||||||
Management Service, Incentive | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Insurance Agency Management Fee | 169 | 56 | 194 | ||||||||
Financial Service, Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Insurance Agency Management Fee | $ 581 | $ 606 | $ 605 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingent Liabilities [Line Items] | ||
Fair value of collateral supporting these assets | $ 607 | $ 614 |
Other assets: | ||
Premium tax offset for future undiscounted assessments | 48 | 54 |
Premium tax offset currently available for paid assessments | 3 | 3 |
Total | 51 | 57 |
Other liabilities: | ||
Insolvency assessments | 37 | 39 |
Commitments | Serviced Mortgage Loans | ||
Commitments and Contingent Liabilities [Line Items] | ||
Total outstanding mortgage loan commitments | 2,129 | 3,299 |
Portion of commitment where prearrangement to sell to investor exists | 751 | 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) | 7,372 | 6,941 |
Expected to be funded from separate accounts | ||
Commitments and Contingent Liabilities [Line Items] | ||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 49 | 147 |
Indemnification | Securities Lending Transactions | ||
Commitments and Contingent Liabilities [Line Items] | ||
Indemnification provided to certain clients for securities lending and securities repurchase transactions | 5,071 | 5,399 |
Fair value of related collateral associated with above indemnifications | 5,204 | 5,503 |
Accrued liability associated with guarantees | 0 | 0 |
Indemnification | Securities Repurchase Transactions | ||
Commitments and Contingent Liabilities [Line Items] | ||
Indemnification provided to certain clients for securities lending and securities repurchase transactions | 38 | |
Fair value of related collateral associated with above indemnifications | 37 | |
Indemnification | Serviced Mortgage Loans | ||
Commitments and Contingent Liabilities [Line Items] | ||
Maximum exposure under indemnification agreements for mortgage loans serviced by the Company | 2,113 | 1,828 |
First-loss exposure portion of above | 622 | 543 |
Accrued liability associated with guarantees | 19 | 17 |
Guarantee of Asset Values | ||
Commitments and Contingent Liabilities [Line Items] | ||
Guaranteed value of third parties’ assets | 80,009 | 79,215 |
Fair value of collateral supporting these assets | 81,604 | 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 guarantees | $ 0 | $ 0 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Narrative Excluding Litigation) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Indemnification | Securities Lending Transactions | |||
Commitments and Contingent Liabilities [Line Items] | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 102.00% | ||
Indemnification | Securities Repurchase Transactions | |||
Commitments and Contingent Liabilities [Line Items] | |||
Guarantor Obligations, Liquidation Proceeds, Percentage | 95.00% | ||
Indemnification | Commercial Mortgage Loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Mortgages subject to loss-sharing arrangements | $ 16,878 | $ 14,335 | |
Weighted-average debt service coverage ratio of mortgages subject to loss-sharing arrangements | 1.88 | 1.83 | |
Weighted-average loan-to-value ratio of mortgages subject to loss-sharing arrangements | 61.00% | 62.00% | |
Losses related to indemnification that were settled | $ 0 | $ 0 | $ 0 |
Indemnification | Minimum | Commercial Mortgage Loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Percentage share of losses incurred on certain loans serviced | 2.00% | ||
Indemnification | Maximum | Commercial 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 | 1 Months Ended | 3 Months Ended | |||||||
Dec. 31, 2017defendant | Feb. 28, 2017plaintiff | Jun. 30, 2014caseplaintiff | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Jan. 31, 2018plaintiff | Feb. 28, 2015plaintiff | Jul. 31, 2014defendant | May 31, 2014defendant | |
Loss Contingencies [Line Items] | |||||||||
Estimate of possible losses in excess of accruals (less than) for litigation and regulatory matters | $ | $ 250 | ||||||||
Residential mortgage-backed securities | Positive Outcome of Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of other institutions filing actions along with Company | 9 | ||||||||
Number of actions filed by the Company in New York state court | case | 6 | ||||||||
Number of Trusts represented in legal action filed by the Company (more than) | 2,200 | ||||||||
Number of defendants in legal action filed by the company | defendant | 6 | ||||||||
Residential mortgage-backed securities | PICA et al. v. Deutsche Bank, et al. | Positive Outcome of Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Claims Filed, Number | 62 | ||||||||
Loss Contingency, Pending Claims, Number | 41 | ||||||||
Loss Contingency, Claims Dismissed, Number | 21 | ||||||||
Residential mortgage-backed securities | PICA et al. v. U.S. Bank N.A. | Positive Outcome of Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of Trusts represented in legal action filed by the Company (more than) | 77 | 770 | |||||||
London Interbank Offered Rate (LIBOR) | Positive Outcome of Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of defendants in legal action filed by the company | defendant | 10 | ||||||||
Pending Litigation | Total Asset Recovery Services, LLC v. MetLife, Inc., and Prudential | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss Contingency, Number of Defendants | defendant | 19 | ||||||||
Settled Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation Settlement, Amount Awarded to Other Party | $ | $ 5 | ||||||||
Disgorgement Ruling | |||||||||
Loss Contingencies [Line Items] | |||||||||
Litigation Settlement, Amount Awarded to Other Party | $ | $ 27.6 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Total revenues | $ 19,223 | $ 15,105 | $ 15,388 | $ 15,091 | $ 18,432 | $ 16,148 | $ 14,655 | $ 13,757 | $ 64,807 | $ 62,992 | $ 59,689 |
Total benefits and expenses | 17,879 | 13,380 | 14,512 | 13,951 | 17,379 | 14,310 | 14,405 | 12,064 | 59,722 | 58,158 | 53,202 |
Net income (loss) | 1,138 | 1,425 | 738 | 937 | 849 | 1,675 | 200 | 1,364 | 4,238 | 4,088 | 7,974 |
Less: Income attributable to noncontrolling interests | 10 | 7 | 30 | 5 | 7 | 3 | 3 | 1 | 52 | 14 | 111 |
Net income (loss) attributable to Prudential Financial, Inc. | $ 1,128 | $ 1,418 | $ 708 | $ 932 | $ 842 | $ 1,672 | $ 197 | $ 1,363 | $ 4,186 | $ 4,074 | $ 7,863 |
Basic earnings per share-Common Stock: | |||||||||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ 2.78 | $ 3.47 | $ 1.73 | $ 2.25 | $ 2.01 | $ 3.97 | $ 0.46 | $ 3.19 | $ 10.23 | $ 9.64 | $ 18.19 |
Diluted earnings per share-Common Stock: | |||||||||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ 2.76 | $ 3.44 | $ 1.71 | $ 2.22 | $ 1.99 | $ 3.90 | $ 0.46 | $ 3.14 | $ 10.11 | $ 9.50 | $ 17.86 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - $ / shares | Feb. 04, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||
Dividends declared per share of Common Stock (in dollars per share) | $ 4 | $ 3.60 | $ 3 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share of Common Stock (in dollars per share) | $ 1.10 |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments Other Than investments in Related Parties (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | [1] | $ 63,559 | $ 59,830 |
Amortized Cost | 346,574 | 331,745 | |
Fair Value | [1] | 391,096 | 353,656 |
Fixed maturities, held-to-maturity | [1] | 1,933 | 2,013 |
Fixed maturities, held to maturity, fair value | 2,302 | 2,372 | |
Equity securities, at cost | 5,560 | 5,219 | |
Equity securities, at fair value | [1] | 7,522 | 6,238 |
Fixed Maturities, Trading, Amortized Cost | 3,917 | 3,392 | |
Fixed maturities, trading, at fair value | [1] | 3,884 | 3,243 |
Commercial mortgage and other loans | 63,559 | 59,830 | |
Policy loans | 12,096 | 12,016 | |
Short-term investments | 5,467 | ||
Other invested assets | [1] | 15,606 | 14,526 |
Total Investment at Cost | 476,309 | ||
Total investment per Balance Sheet | 522,760 | 479,245 | |
Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 346,574 | 331,745 | |
Fair Value | 391,096 | 353,656 | |
Fixed maturities, held-to-maturity | 1,933 | 2,013 | |
Fixed maturities, held to maturity, fair value | 2,302 | 2,372 | |
Equity securities | |||
Schedule of Investments [Line Items] | |||
Equity securities, at cost | 5,560 | ||
Equity securities, at fair value | 7,522 | ||
Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 346,574 | ||
Fair Value | 391,096 | ||
Held-to-maturity | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Fixed maturities, held-to-maturity | 1,933 | ||
Fixed maturities, held to maturity, fair value | 2,302 | ||
Trading | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Fixed Maturities, Trading, Amortized Cost | 3,917 | ||
Fixed maturities, trading, at fair value | 3,884 | ||
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 30,625 | 28,242 | |
Fair Value | 35,659 | 30,594 | |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 30,625 | ||
Fair Value | 35,659 | ||
Obligations of U.S. states and their political subdivisions | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 10,068 | 9,880 | |
Fair Value | 11,497 | 10,493 | |
Obligations of U.S. states and their political subdivisions | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 10,068 | ||
Fair Value | 11,497 | ||
Foreign governments | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 98,356 | ||
Fair Value | 119,054 | ||
Asset-backed securities | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 13,067 | 12,888 | |
Fair Value | 13,174 | 12,973 | |
Asset-backed securities | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 13,067 | ||
Fair Value | 13,174 | ||
Residential mortgage-backed securities | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 3,044 | 2,937 | |
Fair Value | 3,201 | 3,004 | |
Fixed maturities, held-to-maturity | 310 | 365 | |
Fixed maturities, held to maturity, fair value | 331 | 388 | |
Residential mortgage-backed securities | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 3,044 | ||
Fair Value | 3,201 | ||
Residential mortgage-backed securities | Held-to-maturity | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Fixed maturities, held-to-maturity | 310 | ||
Fixed maturities, held to maturity, fair value | 331 | ||
Commercial Mortgage Backed Securities | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 14,978 | 13,396 | |
Fair Value | 15,574 | 13,315 | |
Commercial Mortgage Backed Securities | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 14,978 | ||
Fair Value | 15,574 | ||
Public utilities | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 26,170 | ||
Fair Value | 29,064 | ||
All other corporate bonds | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 149,767 | ||
Fair Value | 163,309 | ||
All other corporate bonds | Held-to-maturity | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Fixed maturities, held-to-maturity | 732 | ||
Fixed maturities, held to maturity, fair value | 798 | ||
Redeemable preferred stock | Available-for-sale | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 499 | ||
Fair Value | 564 | ||
Foreign government bonds | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Amortized Cost | 98,356 | 96,710 | |
Fair Value | 119,054 | 113,110 | |
Fixed maturities, held-to-maturity | 891 | 885 | |
Fixed maturities, held to maturity, fair value | 1,173 | $ 1,154 | |
Foreign government bonds | Held-to-maturity | Fixed Maturities | |||
Schedule of Investments [Line Items] | |||
Fixed maturities, held-to-maturity | 891 | ||
Fixed maturities, held to maturity, fair value | 1,173 | ||
Other common stocks | Equity securities | |||
Schedule of Investments [Line Items] | |||
Equity securities, at cost | 4,065 | ||
Equity securities, at fair value | 5,698 | ||
Mutual funds | Equity securities | |||
Schedule of Investments [Line Items] | |||
Equity securities, at cost | 1,236 | ||
Equity securities, at fair value | 1,528 | ||
Nonredeemable preferred stock | Equity securities | |||
Schedule of Investments [Line Items] | |||
Equity securities, at cost | 57 | ||
Equity securities, at fair value | 56 | ||
Perpetual preferred stock | Equity securities | |||
Schedule of Investments [Line Items] | |||
Equity securities, at cost | 202 | ||
Equity securities, at fair value | 240 | ||
Assets supporting experience-rated contractholder liabilities | |||
Schedule of Investments [Line Items] | |||
Assets supporting experience-rated contractholder liabilities | 21,597 | ||
Commercial mortgage and agricultural properties loans and other collateralized loans | |||
Schedule of Investments [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | 62,907 | ||
Uncollateralized loans | |||
Schedule of Investments [Line Items] | |||
Financing Receivable, after Allowance for Credit Loss | $ 652 | ||
[1] | See Note 4 for details of balances associated with variable interest entities. |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant (Condensed Statements of Financial Position) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
ASSETS | |||||||
Fixed maturities, available-for-sale: | [1] | $ 391,096 | $ 353,656 | ||||
Equity securities, at fair value | [1] | 7,522 | 6,238 | ||||
Other invested assets | [1] | 15,606 | 14,526 | ||||
Total investments | 522,760 | 479,245 | |||||
Cash and cash equivalents | 16,327 | [1] | 15,353 | [1] | $ 14,490 | ||
Investment in subsidiaries | 1,309 | 1,329 | $ 1,483 | ||||
Other assets | [1] | 20,832 | 16,118 | ||||
TOTAL ASSETS | 896,552 | 815,078 | |||||
LIABILITIES | |||||||
Short-term debt | 1,933 | 2,451 | |||||
Long-term debt | 18,646 | 17,378 | |||||
Other liabilities | [1] | 20,802 | 16,018 | ||||
Total liabilities | 832,833 | 766,047 | |||||
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; 666,305,189 and 660,111,339 shares issued as of December 31, 2019 and 2018, respectively) | 6 | 6 | |||||
Additional paid-in capital | 25,532 | 24,828 | |||||
Common Stock held in treasury, at cost (267,472,781 and 249,398,887 shares as of December 31, 2019 and 2018, respectively) | (19,453) | (17,593) | |||||
Accumulated other comprehensive income (loss) | 24,039 | 10,906 | |||||
Retained earnings | 32,991 | 30,470 | |||||
Total Prudential Financial, Inc. equity | 63,115 | 48,617 | |||||
TOTAL LIABILITIES AND EQUITY | 896,552 | 815,078 | |||||
Fixed maturities, available-for-sale, amortized cost | 346,574 | 331,745 | |||||
Equity securities, at cost | $ 5,560 | $ 5,219 | |||||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred Stock, shares authorized | 10,000,000 | 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 | 666,305,189 | 660,111,339 | |||||
Common Stock held in treasury, shares | 267,472,781 | 249,398,887 | |||||
Prudential Financial | |||||||
ASSETS | |||||||
Investment contracts from subsidiaries | $ 1 | $ 1 | |||||
Fixed maturities, available-for-sale: | 1,697 | 1,387 | |||||
Equity securities, at fair value | 25 | 25 | |||||
Other invested assets | 2,326 | 3,537 | |||||
Total investments | 4,049 | 4,950 | |||||
Cash and cash equivalents | 1,162 | 1,327 | $ 1,677 | $ 1,128 | |||
Due from subsidiaries | 1,670 | 1,601 | |||||
Loans receivable from subsidiaries | 7,151 | 7,044 | |||||
Investment in subsidiaries | 76,101 | 57,934 | |||||
Property, plant and equipment | 471 | 502 | |||||
Income taxes receivable | 540 | 413 | |||||
Other assets | 101 | 98 | |||||
TOTAL ASSETS | 91,245 | 73,869 | |||||
LIABILITIES | |||||||
Due to subsidiaries | 2,560 | 2,117 | |||||
Loans payable to subsidiaries | 6,110 | 5,260 | |||||
Short-term debt | 1,204 | 1,115 | |||||
Long-term debt | 17,430 | 16,141 | |||||
Other liabilities | 826 | 619 | |||||
Total liabilities | 28,130 | 25,252 | |||||
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; 666,305,189 and 660,111,339 shares issued as of December 31, 2019 and 2018, respectively) | 6 | 6 | |||||
Additional paid-in capital | 25,532 | 24,828 | |||||
Common Stock held in treasury, at cost (267,472,781 and 249,398,887 shares as of December 31, 2019 and 2018, respectively) | (19,453) | (17,593) | |||||
Accumulated other comprehensive income (loss) | 24,039 | 10,906 | |||||
Retained earnings | 32,991 | 30,470 | |||||
Total Prudential Financial, Inc. equity | 63,115 | 48,617 | |||||
TOTAL LIABILITIES AND EQUITY | 91,245 | 73,869 | |||||
Fixed maturities, available-for-sale, amortized cost | 1,643 | 1,354 | |||||
Equity securities, at cost | $ 25 | $ 25 | |||||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 | |||||
Preferred Stock, shares issued | 0 | 0 | |||||
Prudential Financial | Other common stocks | |||||||
EQUITY | |||||||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 | |||||
Common stock, shares issued | 666,305,189 | 660,111,339 | |||||
Common Stock held in treasury, shares | 267,472,781 | 249,398,887 | |||||
[1] | See Note 4 for details of balances associated with variable interest entities. |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant (Condensed Statements of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||||||||||
Net investment income | $ 17,585 | $ 16,176 | $ 16,435 | ||||||||
Realized investment gains (losses), net | (459) | 1,977 | 432 | ||||||||
Other income (loss) | 3,262 | (1,042) | 1,301 | ||||||||
Total revenues | $ 19,223 | $ 15,105 | $ 15,388 | $ 15,091 | $ 18,432 | $ 16,148 | $ 14,655 | $ 13,757 | 64,807 | 62,992 | 59,689 |
EXPENSES | |||||||||||
Interest expense | 1,550 | 1,420 | 1,327 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 5,085 | 4,834 | 6,487 | ||||||||
Total income tax expense (benefit) | 947 | 822 | (1,438) | ||||||||
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | 4,138 | 4,012 | 7,925 | ||||||||
Equity in earnings of subsidiaries | 100 | 76 | 49 | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | $ 1,128 | $ 1,418 | $ 708 | $ 932 | $ 842 | $ 1,672 | $ 197 | $ 1,363 | 4,186 | 4,074 | 7,863 |
Comprehensive income (loss) attributable to Prudential Financial, Inc. | 17,312 | (2,900) | 10,316 | ||||||||
Prudential Financial | |||||||||||
REVENUES | |||||||||||
Net investment income | 203 | 168 | 92 | ||||||||
Realized investment gains (losses), net | (250) | 106 | (73) | ||||||||
Affiliated interest revenue | 362 | 374 | 379 | ||||||||
Other income (loss) | 21 | (7) | (79) | ||||||||
Total revenues | 336 | 641 | 319 | ||||||||
EXPENSES | |||||||||||
General and administrative expenses | 92 | 126 | 126 | ||||||||
Interest expense | 1,161 | 1,087 | 1,057 | ||||||||
Total expenses | 1,253 | 1,213 | 1,183 | ||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | (917) | (572) | (864) | ||||||||
Total income tax expense (benefit) | (223) | (130) | (397) | ||||||||
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | (694) | (442) | (467) | ||||||||
Equity in earnings of subsidiaries | 4,880 | 4,516 | 8,330 | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | 4,186 | 4,074 | 7,863 | ||||||||
Other Comprehensive Income (loss) | 13,126 | (6,974) | 2,453 | ||||||||
Comprehensive income (loss) attributable to Prudential Financial, Inc. | $ 17,312 | $ (2,900) | $ 10,316 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant (Condensed Statements of Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income (loss) | $ 1,138 | $ 1,425 | $ 738 | $ 937 | $ 849 | $ 1,675 | $ 200 | $ 1,364 | $ 4,238 | $ 4,088 | $ 7,974 | ||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||||
Realized investment (gains) losses, net | 459 | (1,977) | (432) | ||||||||||||||
Dividends received from subsidiaries | 70 | 93 | 63 | ||||||||||||||
Change in: | |||||||||||||||||
Other, operating | [1] | 1,671 | 680 | (1,127) | |||||||||||||
Cash flows from (used in) operating activities | [1] | 19,625 | 21,664 | 13,460 | |||||||||||||
Proceeds from the sale/maturity of: | |||||||||||||||||
Fixed maturities, available-for-sale | 52,306 | 59,675 | 58,244 | ||||||||||||||
Short-term investments | [1] | 38,095 | 33,846 | 29,328 | |||||||||||||
Payments for the purchase of: | |||||||||||||||||
Fixed maturities, available-for-sale | (64,570) | (77,234) | (68,667) | ||||||||||||||
Short-term investments | [1] | (37,286) | (33,336) | (28,405) | |||||||||||||
Other, investing | [1] | (437) | (188) | (723) | |||||||||||||
Cash flows from (used in) investing activities | [1] | (17,028) | (21,628) | (11,957) | |||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Cash dividends paid on Common Stock | (1,641) | (1,521) | (1,296) | ||||||||||||||
Common Stock acquired | (2,500) | (1,500) | (1,250) | ||||||||||||||
Common Stock reissued for exercise of stock options | 133 | 132 | 246 | ||||||||||||||
Proceeds from the issuance of debt (maturities longer than 90 days) | 2,993 | 2,934 | 1,225 | ||||||||||||||
Repayments of debt (maturities longer than 90 days) | (1,429) | (1,810) | (1,827) | ||||||||||||||
Net change in financing arrangements (maturities 90 days or less) | (181) | 199 | 38 | ||||||||||||||
Other, financing | (181) | (282) | (14) | ||||||||||||||
Cash flows from (used in) financing activities | (1,634) | 781 | (1,258) | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 15,353 | [2] | 14,490 | 15,353 | [2] | 14,490 | |||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 16,327 | [2] | 15,353 | [2] | 16,327 | [2] | 15,353 | [2] | 14,490 | ||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||||||||
Cash paid (refunds received) during the period for taxes | 1,348 | 760 | 185 | ||||||||||||||
Acquisitions | |||||||||||||||||
Treasury stock shares issued | 454 | ||||||||||||||||
Prudential Financial | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net income (loss) | 4,186 | 4,074 | 7,863 | ||||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||||
Equity in earnings of subsidiaries | (4,880) | (4,516) | (8,330) | ||||||||||||||
Realized investment (gains) losses, net | 250 | (106) | 73 | ||||||||||||||
Dividends received from subsidiaries | 2,269 | 2,975 | 1,975 | ||||||||||||||
Property, plant and equipment | 0 | (4) | (1) | ||||||||||||||
Change in: | |||||||||||||||||
Due to/from subsidiaries, net | 669 | (1) | 213 | ||||||||||||||
Other, operating | [3] | (229) | 115 | (149) | |||||||||||||
Cash flows from (used in) operating activities | 2,265 | 2,537 | 1,644 | ||||||||||||||
Proceeds from the sale/maturity of: | |||||||||||||||||
Fixed maturities, available-for-sale | 371 | 234 | 740 | ||||||||||||||
Short-term investments | 21,700 | 18,708 | 15,973 | ||||||||||||||
Payments for the purchase of: | |||||||||||||||||
Equity securities, at fair value | 0 | (25) | 0 | ||||||||||||||
Fixed maturities, available-for-sale | (660) | (370) | (865) | ||||||||||||||
Short-term investments | (20,486) | (19,914) | (15,087) | ||||||||||||||
Capital contributions to subsidiaries | (593) | (874) | (1,135) | ||||||||||||||
Returns of capital contributions from subsidiaries | 1,013 | 1,083 | 1,150 | ||||||||||||||
Net cash paid on acquisition | 1,758 | 0 | 0 | ||||||||||||||
Loans to subsidiaries, net of maturities | (108) | 803 | (1,127) | ||||||||||||||
Other, investing | 0 | 0 | 61 | ||||||||||||||
Cash flows from (used in) investing activities | (521) | (355) | (290) | ||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Cash dividends paid on Common Stock | (1,641) | (1,521) | (1,296) | ||||||||||||||
Common Stock acquired | (2,500) | (1,500) | (1,250) | ||||||||||||||
Common Stock reissued for exercise of stock options | 133 | 132 | 246 | ||||||||||||||
Proceeds from the issuance of debt (maturities longer than 90 days) | 2,465 | 2,531 | 742 | ||||||||||||||
Repayments of debt (maturities longer than 90 days) | (1,114) | (1,443) | (480) | ||||||||||||||
Repayments of loans from subsidiaries | (7) | (728) | (310) | ||||||||||||||
Proceeds from loans payable to subsidiaries | 818 | 99 | 1,627 | ||||||||||||||
Net change in financing arrangements (maturities 90 days or less) | 9 | (36) | (16) | ||||||||||||||
Other, financing | [3] | (72) | (66) | (68) | |||||||||||||
Cash flows from (used in) financing activities | (1,909) | (2,532) | (805) | ||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (165) | (350) | 549 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $ 1,327 | $ 1,677 | 1,327 | 1,677 | 1,128 | ||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 1,162 | 1,327 | 1,162 | 1,327 | 1,677 | ||||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||||||||
Cash paid during the period for interest | 1,084 | 1,014 | 1,019 | ||||||||||||||
Cash paid (refunds received) during the period for taxes | (103) | (231) | (213) | ||||||||||||||
NON-CASH TRANSACTIONS DURING THE YEAR | |||||||||||||||||
Non-cash capital contributions to subsidiaries | (596) | (22) | (17) | ||||||||||||||
Non-cash dividends/returns of capital from subsidiaries | 1 | 101 | 0 | ||||||||||||||
Treasury Stock shares issued for stock-based compensation programs | 197 | 138 | 104 | ||||||||||||||
Acquisitions | |||||||||||||||||
Net cash paid on acquisition | 1,758 | 0 | 0 | ||||||||||||||
Acquisition | |||||||||||||||||
Payments for the purchase of: | |||||||||||||||||
Net cash paid on acquisition | 1,755 | 0 | 64 | ||||||||||||||
Acquisitions | |||||||||||||||||
Assets acquired | 2,425 | 0 | 196 | ||||||||||||||
Liabilities assumed | 216 | $ 0 | 216 | 0 | 132 | ||||||||||||
Treasury stock shares issued | 454 | 0 | 0 | ||||||||||||||
Net cash paid on acquisition | 1,755 | $ 0 | $ 64 | ||||||||||||||
Acquisition | Prudential Financial | |||||||||||||||||
Payments for the purchase of: | |||||||||||||||||
Net cash paid on acquisition | 1,758 | ||||||||||||||||
Acquisitions | |||||||||||||||||
Assets acquired | 2,428 | ||||||||||||||||
Liabilities assumed | $ 216 | 216 | |||||||||||||||
Treasury stock shares issued | 454 | ||||||||||||||||
Net cash paid on acquisition | $ 1,758 | ||||||||||||||||
[1] | |||||||||||||||||
[2] | See Note 4 for details of balances associated with variable interest entities. | ||||||||||||||||
[3] | Prior period amounts are presented on a basis consistent with current period presentation, reflecting the adoption of ASU 2016-09. See Note 2 to the Consolidated Financial Statements for additional information. |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant (Short and Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Short-term debt | $ 1,933 | $ 2,451 |
Long-term debt | $ 18,646 | $ 17,378 |
Commercial Paper, Weighted Average Interest Rate | 1.61% | 2.41% |
Senior notes | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 1,179 | $ 1,100 |
Commercial Paper | ||
Debt Instrument [Line Items] | ||
Short-term debt | 549 | 742 |
Current portion of long-term debt | ||
Debt Instrument [Line Items] | ||
Short-term debt | 1,371 | 1,656 |
Prudential Financial | ||
Debt Instrument [Line Items] | ||
Short-term debt | 1,204 | 1,115 |
Long-term debt | 17,430 | 16,141 |
Prudential Financial | Commercial Paper | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 25 | $ 15 |
Commercial Paper, Weighted Average Interest Rate | 1.71% | 2.45% |
Prudential Financial | Current portion of long-term debt | ||
Debt Instrument [Line Items] | ||
Short-term debt | $ 1,179 | $ 1,100 |
Prudential Financial | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 7,518 | 7,511 |
Prudential Financial | Minimum | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.50% | |
Prudential Financial | Maximum | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.88% | |
Fixed rate | Prudential Financial | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 9,912 | 8,601 |
Fixed rate | Prudential Financial | Minimum | Senior notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.35% | |
Fixed rate | Prudential Financial | Maximum | Senior notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 6.63% | |
Floating rate debt | Prudential Financial | Senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 29 |
Floating rate debt | Prudential Financial | Minimum | Senior notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.04% | |
Floating rate debt | Prudential Financial | Maximum | Senior notes | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.95% |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant (Contractual Maturities for Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2021 | $ 491 | |
2022 | 436 | |
2023 | 245 | |
2024 | 725 | |
2025 and thereafter | 16,750 | |
Long-term debt | 18,646 | $ 17,378 |
Prudential Financial | ||
Debt Instrument [Line Items] | ||
2021 | 400 | |
2022 | 0 | |
2023 | 0 | |
2024 | 700 | |
2025 and thereafter | 16,330 | |
Long-term debt | $ 17,430 | $ 16,141 |
Schedule II - Condensed Finan_7
Schedule II - Condensed Financial Information of Registrant (Dividends and Returns of Capital) (Details) - Prudential Financial - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | $ 3,282 | $ 4,058 | $ 3,124 |
Prudential Annuities Holding Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 163 | 175 | 145 |
International Insurance and Investments Holding Companies | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 1,065 | 2,270 | 546 |
Prudential Insurance Company of America | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 600 | 0 | 1,000 |
PGIM Holding Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 462 | 578 | 467 |
Prudential Annuities Life Assurance Corporation | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | 978 | 1,025 | 950 |
Other Holding Companies | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends or Returns of Capital received by Parent Company from Subsidiaries | $ 14 | $ 10 | $ 16 |
Schedule II - Condensed Finan_8
Schedule II - Condensed Financial Information of Registrant (Narratives) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | |
Schedule II Narrative [Line Items] | ||||
Increase (Decrease) In Interest Expense, Derivative Instruments | $ 1,550,000,000 | $ 1,420,000,000 | $ 1,327,000,000 | |
Prudential Financial | ||||
Schedule II Narrative [Line Items] | ||||
Increase (Decrease) In Interest Expense, Derivative Instruments | 1,161,000,000 | 1,087,000,000 | 1,057,000,000 | |
Derivatives | Prudential Financial | ||||
Schedule II Narrative [Line Items] | ||||
Increase (Decrease) In Interest Expense, Derivative Instruments | 0 | $ 0 | $ 1,000,000 | |
Commercial Paper | Prudential Financial | ||||
Schedule II Narrative [Line Items] | ||||
Guarantee obligation | 524,000,000 | |||
Investee Debt | Prudential Financial | ||||
Schedule II Narrative [Line Items] | ||||
Guarantee obligation | $ 3,800,000,000 | |||
Commitments to Extend Credit | Prudential Financial | ||||
Schedule II Narrative [Line Items] | ||||
Guarantee obligation | $ 500,000,000 |
Schedule II - Condensed Finan_9
Schedule II - Condensed Financial Information of Registrant Schedule II - Condensed Financial Information of Registrant (Organization and Presentation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Treasury stock shares issued | $ 454 | ||
Prudential Financial | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | 1,758 | $ 0 | $ 0 |
Acquisition | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | 1,755 | 0 | 64 |
Treasury stock shares issued | 454 | $ 0 | $ 0 |
Acquisition | Prudential Financial | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | 1,758 | ||
Treasury stock shares issued | $ 454 |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | $ 19,912 | $ 20,058 | $ 18,992 |
Future Policy Benefits, Losses, Claims Expenses | 293,199 | 273,526 | 257,011 |
Unearned Premiums | 328 | 320 | 306 |
Other Policy Claims and Benefits Payable | 159,098 | 154,448 | 154,600 |
Premiums, Policy Charges and Fee Income | 40,180 | 41,781 | 37,394 |
Net Investment Income | 17,585 | 16,176 | 16,435 |
Benefits, Claims, Losses and Settlement Expenses | 43,974 | 43,936 | 39,707 |
Amortization of DAC | 2,332 | 2,273 | 1,580 |
Other Operating Expenses | 13,416 | 11,949 | 11,915 |
Total U.S. Workplace Solutions division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 300 | 311 | 308 |
Future Policy Benefits, Losses, Claims Expenses | 72,648 | 69,441 | 64,018 |
Unearned Premiums | 242 | 236 | 228 |
Other Policy Claims and Benefits Payable | 57,634 | 56,855 | 58,252 |
Premiums, Policy Charges and Fee Income | 14,514 | 16,576 | 13,265 |
Net Investment Income | 5,344 | 4,998 | 5,166 |
Benefits, Claims, Losses and Settlement Expenses | 17,795 | 18,732 | 15,923 |
Amortization of DAC | 36 | 44 | 30 |
Other Operating Expenses | 2,075 | 2,027 | 1,888 |
Total U.S. Individual Solutions division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 10,809 | 11,087 | 10,535 |
Future Policy Benefits, Losses, Claims Expenses | 32,568 | 25,377 | 24,446 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 37,675 | 36,678 | 34,435 |
Premiums, Policy Charges and Fee Income | 5,831 | 5,777 | 5,082 |
Net Investment Income | 3,122 | 2,723 | 2,660 |
Benefits, Claims, Losses and Settlement Expenses | 4,358 | 3,963 | 3,142 |
Amortization of DAC | 1,020 | 1,011 | 382 |
Other Operating Expenses | 3,949 | 3,731 | 3,679 |
Assurance IQ division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | ||
Future Policy Benefits, Losses, Claims Expenses | 0 | ||
Unearned Premiums | 0 | ||
Other Policy Claims and Benefits Payable | 0 | ||
Premiums, Policy Charges and Fee Income | 0 | ||
Net Investment Income | 0 | ||
Benefits, Claims, Losses and Settlement Expenses | 0 | ||
Amortization of DAC | 0 | ||
Other Operating Expenses | 151 | ||
Total U.S. Businesses | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 11,109 | 11,398 | 10,843 |
Future Policy Benefits, Losses, Claims Expenses | 105,216 | 94,818 | 88,464 |
Unearned Premiums | 242 | 236 | 228 |
Other Policy Claims and Benefits Payable | 95,309 | 93,533 | 92,687 |
Premiums, Policy Charges and Fee Income | 20,345 | 22,353 | 18,347 |
Net Investment Income | 8,466 | 7,721 | 7,826 |
Benefits, Claims, Losses and Settlement Expenses | 22,153 | 22,695 | 19,065 |
Amortization of DAC | 1,056 | 1,055 | 412 |
Other Operating Expenses | 6,175 | 5,758 | 5,567 |
Total PFI excluding Closed Block division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 19,677 | 19,794 | 18,693 |
Future Policy Benefits, Losses, Claims Expenses | 245,585 | 225,244 | 208,141 |
Unearned Premiums | 328 | 320 | 306 |
Other Policy Claims and Benefits Payable | 147,259 | 145,425 | 143,179 |
Premiums, Policy Charges and Fee Income | 37,973 | 39,480 | 34,868 |
Net Investment Income | 15,262 | 13,888 | 13,782 |
Benefits, Claims, Losses and Settlement Expenses | 38,751 | 39,596 | 34,348 |
Amortization of DAC | 2,303 | 2,238 | 1,543 |
Other Operating Expenses | 13,063 | 11,585 | 11,530 |
PGIM | PGIM | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Future Policy Benefits, Losses, Claims Expenses | 0 | 0 | 0 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 0 | 0 | 0 |
Premiums, Policy Charges and Fee Income | 0 | 0 | 0 |
Net Investment Income | 200 | 73 | 170 |
Benefits, Claims, Losses and Settlement Expenses | 0 | 0 | 0 |
Amortization of DAC | 6 | 8 | 11 |
Other Operating Expenses | 2,520 | 2,298 | 2,239 |
Retirement | Total U.S. Workplace Solutions division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 144 | 153 | 146 |
Future Policy Benefits, Losses, Claims Expenses | 67,783 | 64,750 | 59,330 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 49,047 | 47,766 | 49,269 |
Premiums, Policy Charges and Fee Income | 9,490 | 11,582 | 8,517 |
Net Investment Income | 4,721 | 4,394 | 4,536 |
Benefits, Claims, Losses and Settlement Expenses | 13,251 | 14,209 | 11,576 |
Amortization of DAC | 29 | 39 | 16 |
Other Operating Expenses | 1,160 | 1,100 | 1,031 |
Group Insurance | Total U.S. Workplace Solutions division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 156 | 158 | 162 |
Future Policy Benefits, Losses, Claims Expenses | 4,865 | 4,691 | 4,688 |
Unearned Premiums | 242 | 236 | 228 |
Other Policy Claims and Benefits Payable | 8,587 | 9,089 | 8,983 |
Premiums, Policy Charges and Fee Income | 5,024 | 4,994 | 4,748 |
Net Investment Income | 623 | 604 | 630 |
Benefits, Claims, Losses and Settlement Expenses | 4,544 | 4,523 | 4,347 |
Amortization of DAC | 7 | 5 | 14 |
Other Operating Expenses | 915 | 927 | 857 |
Individual Annuities | Total U.S. Individual Solutions division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 4,973 | 4,984 | 5,130 |
Future Policy Benefits, Losses, Claims Expenses | 15,151 | 11,057 | 10,797 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 9,529 | 8,886 | 8,551 |
Premiums, Policy Charges and Fee Income | 2,748 | 2,792 | 2,805 |
Net Investment Income | 854 | 683 | 727 |
Benefits, Claims, Losses and Settlement Expenses | 680 | 734 | 368 |
Amortization of DAC | 321 | 658 | 0 |
Other Operating Expenses | 1,869 | 1,824 | 1,791 |
Individual Life | Total U.S. Individual Solutions division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 5,836 | 6,103 | 5,405 |
Future Policy Benefits, Losses, Claims Expenses | 17,417 | 14,320 | 13,649 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 28,146 | 27,792 | 25,884 |
Premiums, Policy Charges and Fee Income | 3,083 | 2,985 | 2,277 |
Net Investment Income | 2,268 | 2,040 | 1,933 |
Benefits, Claims, Losses and Settlement Expenses | 3,678 | 3,229 | 2,774 |
Amortization of DAC | 699 | 353 | 382 |
Other Operating Expenses | 2,080 | 1,907 | 1,888 |
Assurance IQ | Assurance IQ division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | ||
Future Policy Benefits, Losses, Claims Expenses | 0 | ||
Unearned Premiums | 0 | ||
Other Policy Claims and Benefits Payable | 0 | ||
Premiums, Policy Charges and Fee Income | 0 | ||
Net Investment Income | 0 | ||
Benefits, Claims, Losses and Settlement Expenses | 0 | ||
Amortization of DAC | 0 | ||
Other Operating Expenses | 151 | ||
International Businesses | International Businesses | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 8,949 | 8,715 | 8,214 |
Future Policy Benefits, Losses, Claims Expenses | 131,901 | 122,810 | 114,437 |
Unearned Premiums | 86 | 84 | 78 |
Other Policy Claims and Benefits Payable | 51,941 | 51,003 | 50,483 |
Premiums, Policy Charges and Fee Income | 17,228 | 16,700 | 16,190 |
Net Investment Income | 5,530 | 5,219 | 5,005 |
Benefits, Claims, Losses and Settlement Expenses | 15,784 | 14,704 | 14,604 |
Amortization of DAC | 1,272 | 1,220 | 1,138 |
Other Operating Expenses | 3,096 | 2,760 | 2,838 |
Corporate and Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | (381) | (319) | (364) |
Future Policy Benefits, Losses, Claims Expenses | 8,468 | 7,616 | 5,240 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 9 | 889 | 9 |
Premiums, Policy Charges and Fee Income | 400 | 427 | 331 |
Net Investment Income | 1,066 | 875 | 781 |
Benefits, Claims, Losses and Settlement Expenses | 814 | 2,197 | 679 |
Amortization of DAC | (31) | (45) | (18) |
Other Operating Expenses | 1,272 | 769 | 886 |
Closed Block division | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 235 | 264 | 299 |
Future Policy Benefits, Losses, Claims Expenses | 47,614 | 48,282 | 48,870 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 11,839 | 9,023 | 11,421 |
Premiums, Policy Charges and Fee Income | 2,207 | 2,301 | 2,526 |
Net Investment Income | 2,323 | 2,288 | 2,653 |
Benefits, Claims, Losses and Settlement Expenses | 5,223 | 4,340 | 5,359 |
Amortization of DAC | 29 | 35 | 37 |
Other Operating Expenses | $ 353 | $ 364 | $ 385 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance Face Amount/Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 4,123,019 | $ 3,985,589 | $ 3,733,997 |
Ceded to Other Companies | 862,460 | 791,354 | 767,499 |
Assumed from Other Companies | 188,576 | 197,343 | 207,083 |
Net Amount | $ 3,449,135 | $ 3,391,578 | $ 3,173,581 |
Percentage of Amount Assumed to Net | 5.50% | 5.80% | 6.50% |
Gross Amount | $ 33,260 | $ 35,048 | $ 31,797 |
Ceded to Other Companies | 2,080 | 1,843 | 1,811 |
Assumed from Other Companies | 3,022 | 2,574 | 2,105 |
Premiums | $ 34,202 | $ 35,779 | $ 32,091 |
Percentage of Amount Assumed to Net | 8.80% | 7.20% | 6.60% |
Life Insurance | |||
Reinsurance Face Amount/Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 30,333 | $ 32,248 | $ 29,035 |
Ceded to Other Companies | 1,990 | 1,792 | 1,761 |
Assumed from Other Companies | 3,022 | 2,574 | 2,105 |
Premiums | $ 31,365 | $ 33,030 | $ 29,379 |
Percentage of Amount Assumed to Net | 9.60% | 7.80% | 7.20% |
Accident and Health Insurance | |||
Reinsurance Face Amount/Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross Amount | $ 2,927 | $ 2,800 | $ 2,762 |
Ceded to Other Companies | 90 | 51 | 50 |
Assumed from Other Companies | 0 | 0 | 0 |
Premiums | $ 2,837 | $ 2,749 | $ 2,712 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Uncategorized Items - form10-kx
Label | Element | Value | |
Additional Paid-in Capital [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 5,000,000 | |
Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (14,000,000) | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 | |
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 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] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,653,000,000 | |
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) | |
[1] | Includes the impact from the adoption of ASU 2017-08 and 2017-12. See Note 2. |