Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Document Period End Date | Jun. 30, 2020 | Jun. 30, 2020 | |
Amendment Flag | false | ||
Document Quarterly Report | true | ||
Document Fiscal Year Focus | 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | Q2 | ||
Document Transition Report | false | ||
Entity File Number | 001-16707 | ||
Entity Registrant Name | Prudential Financial, Inc. | ||
Entity Central Index Key | 0001137774 | ||
Entity Incorporation, State or Country Code | NJ | ||
Entity Tax Identification Number | 22-3703799 | ||
Entity Address, Address Line One | 751 Broad Street | ||
Entity Address, City or Town | Newark | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07102 | ||
City Area Code | 973 | ||
Local Phone Number | 802-6000 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 395 | ||
Common Class A | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, Par Value $.01 | ||
Trading Symbol | PRU | ||
Security Exchange Name | NYSE | ||
5.75% Junior Subordinated Note | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.75% Junior Subordinated Notes | ||
Trading Symbol | PJH | ||
Security Exchange Name | NYSE | ||
5.70% Junior Subordinated Notes | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.70% Junior Subordinated Notes | ||
Trading Symbol | PRH | ||
Security Exchange Name | NYSE | ||
5.625% Junior Subordinated Notes | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.625% Junior Subordinated Notes | ||
Trading Symbol | PRS | ||
Security Exchange Name | NYSE |
Unaudited Interim Consolidated
Unaudited Interim Consolidated Statements of Financial Position - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
ASSETS | ||||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2020-$353,812; 2019-$346,574; 2020-net of $238 allowance for credit losses) | [2] | $ 407,944 | [1] | $ 391,096 |
Fixed maturities, held-to-maturity, at amortized cost (2020-net of $9 allowance for credit losses; fair value: 2020-$2,231; 2019-$2,302) | [2] | 1,875 | [3] | 1,933 |
Fixed maturities, trading, at fair value (amortized cost: 2020-$4,089: 2019-$3,917) | [2] | 3,933 | 3,884 | |
Assets supporting experience-rated contractholder liabilities, at fair value | [2] | 23,245 | 21,597 | |
Equity securities, at fair value (cost: 2020-$5,704; 2019-$5,560) | [2] | 7,010 | [1] | 7,522 |
Commercial mortgage and other loans (net of $245 and $121 allowance for credit losses; includes $682 and $228 of loans measured at fair value under the fair value option at June 30, 2020 and December 31, 2019, respectively) | [2],[3] | 63,469 | 63,559 | |
Policy loans | 12,283 | [1] | 12,096 | |
Other invested assets (2020-net of $2 allowance for credit losses; includes $6,280 and $5,646 of assets measured at fair value at June 30, 2020 and December 31, 2019, respectively) | [2] | 16,757 | [1],[3] | 15,606 |
Short-term investments | 11,416 | [1] | 5,467 | |
Total investments | 547,932 | 522,760 | ||
Cash and cash equivalents | [2] | 21,149 | [1] | 16,327 |
Accrued investment income | [2] | 3,296 | [1] | 3,330 |
Deferred policy acquisition costs | 19,667 | [1],[3] | 19,912 | |
Value of business acquired | 1,040 | 1,110 | ||
Other assets (2020-net of $8 allowance for credit losses) | [2] | 21,301 | [1],[3] | 20,832 |
Separate account assets | 301,002 | [1] | 312,281 | |
TOTAL ASSETS | 915,387 | 896,552 | ||
LIABILITIES | ||||
Future policy benefits | 312,759 | [1] | 293,527 | |
Policyholders’ account balances | 158,237 | [1] | 152,110 | |
Policyholders’ dividends | 8,623 | [1],[3] | 6,988 | |
Securities sold under agreements to repurchase | 10,488 | 9,681 | ||
Cash collateral for loaned securities | 3,447 | 4,213 | ||
Income taxes | 13,261 | [1],[3] | 11,378 | |
Short-term debt | 1,130 | 1,933 | ||
Long-term debt | 20,162 | 18,646 | ||
Other liabilities (2020-net of $19 allowance for credit losses) | [2] | 18,573 | [1],[3] | 20,802 |
Separate account liabilities | 301,002 | [1] | 312,281 | |
Total liabilities | 848,879 | 832,833 | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
EQUITY | ||||
Preferred Stock ($.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 shares issued as of both June 30, 2020 and December 31, 2019) | 6 | 6 | ||
Additional paid-in capital | 25,513 | 25,532 | ||
Common Stock held in treasury, at cost (271,694,260 and 267,472,781 shares at June 30, 2020 and December 31, 2019, respectively) | (19,785) | (19,453) | ||
Accumulated other comprehensive income (loss) | 30,837 | 24,039 | ||
Retained earnings | 29,326 | 32,991 | ||
Total Prudential Financial, Inc. equity | 65,897 | 63,115 | ||
Noncontrolling interests | 611 | 604 | ||
Total equity | 66,508 | 63,719 | ||
TOTAL LIABILITIES AND EQUITY | 915,387 | 896,552 | ||
Consolidated VIEs for Which the Company is the Investment Manager | ||||
ASSETS | ||||
TOTAL ASSETS | 5,156 | 5,048 | ||
LIABILITIES | ||||
Total liabilities | 1,583 | 1,578 | ||
Notes Issued by Consolidated VIEs | Consolidated VIEs for Which the Company is the Investment Manager | ||||
LIABILITIES | ||||
Total liabilities | [2] | 1,197 | $ 1,274 | |
Discontinued Operations, Held for Sale | The Prudential Life Insurance Company of Korea, Ltd. | ||||
ASSETS | ||||
Commercial mortgage and other loans (net of $245 and $121 allowance for credit losses; includes $682 and $228 of loans measured at fair value under the fair value option at June 30, 2020 and December 31, 2019, respectively) | 3 | |||
Policy loans | 777 | |||
Other invested assets (2020-net of $2 allowance for credit losses; includes $6,280 and $5,646 of assets measured at fair value at June 30, 2020 and December 31, 2019, respectively) | 109 | |||
Short-term investments | 69 | |||
Accrued investment income | 134 | |||
Deferred policy acquisition costs | 1,178 | |||
Other assets (2020-net of $8 allowance for credit losses) | 254 | |||
Separate account assets | 3,427 | |||
TOTAL ASSETS | 20,835 | |||
LIABILITIES | ||||
Future policy benefits | 10,527 | |||
Policyholders’ account balances | 1,357 | |||
Policyholders’ dividends | 26 | |||
Income taxes | 989 | |||
Other liabilities (2020-net of $19 allowance for credit losses) | 815 | |||
Separate account liabilities | 3,427 | |||
Total liabilities | $ 17,141 | |||
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||
[3] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. |
Unaudited Interim Consolidate_2
Unaudited Interim Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Fixed Maturities, AFS, amortized cost | $ 353,812 | $ 346,574 | ||
Fixed Maturities, AFS, allowance for credit losses | 238 | |||
Fixed Maturities, HTM, at fair value | 2,231 | 2,302 | ||
Fixed Maturities, HTM, allowance for credit losses | 9 | |||
Fixed Maturities, Trading, amortized cost | 4,089 | 3,917 | ||
Equity Securities, AFS, amortized cost | 5,704 | 5,560 | ||
Commercial mortgage and other loans | [1],[2] | 63,469 | 63,559 | |
Commercial mortgage and other loans, allowance for credit losses | 245 | 121 | ||
Other invested assets, at fair value | 6,280 | 5,646 | ||
Other invested assets, allowance for credit losses | [2] | 16,757 | [1],[3] | 15,606 |
Notes issued by consolidated VIEs | 848,879 | 832,833 | ||
Other liabilities, allowance for credit losses | [2] | $ 18,573 | [1],[3] | $ 20,802 |
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 | 666,305,189 | ||
Treasury Stock, Shares | 271,694,260 | 267,472,781 | ||
Fair value option | ||||
Commercial mortgage and other loans | $ 682 | $ 228 | ||
Notes issued by consolidated VIEs | 741 | $ 800 | ||
Leveraged lease loans | ||||
Other invested assets, allowance for credit losses | 2 | |||
ASU 2016-13 | ||||
Other assets, allowance for credit losses | 8 | |||
Other liabilities, allowance for credit losses | $ 19 | |||
[1] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||
[3] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. |
Unaudited Interim Consolidate_3
Unaudited Interim Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
REVENUES | ||||
Premiums | $ 7,693 | $ 8,135 | $ 15,357 | $ 16,035 |
Policy charges and fee income | 1,523 | 1,473 | 3,012 | 2,944 |
Net investment income | 4,186 | 4,390 | 8,388 | 8,606 |
Asset management and service fees | 991 | 1,083 | 2,024 | 2,099 |
Other income (loss) | 1,474 | 643 | (1,117) | 1,897 |
Realized investment gains (losses), net | (3,752) | (336) | (2,085) | (1,102) |
Total revenues | 12,115 | 15,388 | 25,579 | 30,479 |
BENEFITS AND EXPENSES | ||||
Policyholders' benefits | 8,450 | 8,877 | 17,456 | 17,315 |
Interest credited to policyholders' account balances | 1,832 | 1,278 | 2,224 | 2,623 |
Dividends to policyholders | 531 | 437 | 454 | 1,014 |
Amortization of deferred policy acquisition costs | 287 | 782 | 1,244 | 1,217 |
General and administrative expenses | 3,347 | 3,138 | 6,871 | 6,294 |
Total benefits and expenses | 14,447 | 14,512 | 28,249 | 28,463 |
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | (2,332) | 876 | (2,670) | 2,016 |
Total income tax expense (benefit) | 115 | 162 | 57 | 394 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (2,447) | 714 | (2,727) | 1,622 |
Equity in earnings of operating joint ventures, net of taxes | 42 | 24 | 52 | 53 |
NET INCOME (LOSS) | (2,405) | 738 | (2,675) | 1,675 |
Less: Income (loss) attributable to noncontrolling interests | 4 | 30 | 5 | 35 |
NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. | $ (2,409) | $ 708 | $ (2,680) | $ 1,640 |
Basic earnings per share-Common Stock: | ||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ (6.12) | $ 1.73 | $ (6.80) | $ 3.98 |
Diluted earnings per share-Common Stock: | ||||
Net income (loss) attributable to Prudential Financial, Inc. (in dollars per share) | $ (6.12) | $ 1.71 | $ (6.80) | $ 3.93 |
Unaudited Interim Consolidate_4
Unaudited Interim Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ (2,405) | $ 738 | $ (2,675) | $ 1,675 |
Other comprehensive income (loss), before tax: | ||||
Foreign currency translation adjustments for the period | 88 | 213 | (207) | 108 |
Net unrealized investment gains (losses) | 10,101 | 8,506 | 8,747 | 16,795 |
Defined benefit pension and postretirement unrecognized periodic benefit (cost) | 72 | 17 | 144 | 81 |
Total | 10,261 | 8,736 | 8,684 | 16,984 |
Less: Income tax expense (benefit) related to other comprehensive income (loss) | 2,023 | 1,966 | 1,885 | 3,910 |
Other comprehensive income (loss), net of taxes | 8,238 | 6,770 | 6,799 | 13,074 |
Comprehensive income (loss) | 5,833 | 7,508 | 4,124 | 14,749 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 5 | 36 | 6 | 40 |
Comprehensive income (loss) attributable to Prudential Financial, Inc. | $ 5,828 | $ 7,472 | $ 4,118 | $ 14,709 |
Unaudited Interim Consolidate_5
Unaudited Interim Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock Held in TreasuryCommon Stock | Accumulated Other Comprehensive Income (Loss) | Total Prudential Financial, Inc. Equity | Noncontrolling Interests | Cumulative effect of adoption of accounting changes | Cumulative effect of adoption of accounting changesRetained Earnings | Cumulative effect of adoption of accounting changesAccumulated Other Comprehensive Income (Loss) | [1] | Cumulative effect of adoption of accounting changesTotal Prudential Financial, Inc. Equity | |||
Balance at Dec. 31, 2018 | $ 49,031 | $ 6 | $ 24,828 | $ 30,470 | $ (17,593) | $ 10,906 | $ 48,617 | $ 414 | $ (14) | [1] | $ (21) | [1] | $ 7 | $ (14) | [1] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common Stock acquired | (500) | (500) | (500) | |||||||||||||
Contributions from noncontrolling interests | 26 | 26 | ||||||||||||||
Distributions to noncontrolling interests | (4) | (4) | ||||||||||||||
Stock-based compensation programs | 85 | (46) | 131 | 85 | ||||||||||||
Dividends declared on Common Stock | (415) | (415) | (415) | |||||||||||||
Comprehensive income: | ||||||||||||||||
Net income (loss) | 937 | 932 | 932 | 5 | ||||||||||||
Other comprehensive income (loss), net of tax | 6,304 | 6,305 | 6,305 | (1) | ||||||||||||
Total comprehensive income (loss) | 7,241 | 7,237 | 4 | |||||||||||||
Balance at Mar. 31, 2019 | 55,450 | 6 | 24,782 | 30,966 | (17,962) | 17,218 | 55,010 | 440 | ||||||||
Balance at Dec. 31, 2018 | 49,031 | 6 | 24,828 | 30,470 | (17,593) | 10,906 | 48,617 | 414 | (14) | [1] | (21) | [1] | $ 7 | (14) | [1] | |
Comprehensive income: | ||||||||||||||||
Net income (loss) | 1,675 | |||||||||||||||
Other comprehensive income (loss), net of tax | 13,074 | |||||||||||||||
Total comprehensive income (loss) | 14,749 | |||||||||||||||
Balance at Jun. 30, 2019 | 62,153 | 6 | 24,825 | 31,263 | (18,416) | 23,982 | 61,660 | 493 | ||||||||
Balance at Mar. 31, 2019 | 55,450 | 6 | 24,782 | 30,966 | (17,962) | 17,218 | 55,010 | 440 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common Stock acquired | (500) | (500) | (500) | |||||||||||||
Contributions from noncontrolling interests | 25 | 25 | ||||||||||||||
Distributions to noncontrolling interests | (16) | (16) | ||||||||||||||
Consolidations (deconsolidations) of noncontrolling interests | 8 | 8 | ||||||||||||||
Stock-based compensation programs | 89 | 43 | 46 | 89 | ||||||||||||
Dividends declared on Common Stock | (411) | (411) | (411) | |||||||||||||
Comprehensive income: | ||||||||||||||||
Net income (loss) | 738 | 708 | 708 | 30 | ||||||||||||
Other comprehensive income (loss), net of tax | 6,770 | 6,764 | 6,764 | 6 | ||||||||||||
Total comprehensive income (loss) | 7,508 | 7,472 | 36 | |||||||||||||
Balance at Jun. 30, 2019 | 62,153 | 6 | 24,825 | 31,263 | (18,416) | 23,982 | 61,660 | 493 | ||||||||
Balance at Dec. 31, 2019 | 63,719 | 6 | 25,532 | 32,991 | (19,453) | 24,039 | 63,115 | 604 | (99) | [2] | (99) | [2] | (99) | [2] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Common Stock acquired | (500) | (500) | (500) | |||||||||||||
Contributions from noncontrolling interests | 31 | 31 | ||||||||||||||
Distributions to noncontrolling interests | (11) | (11) | ||||||||||||||
Stock-based compensation programs | 86 | (26) | 112 | 86 | ||||||||||||
Dividends declared on Common Stock | (445) | (445) | (445) | |||||||||||||
Comprehensive income: | ||||||||||||||||
Net income (loss) | (270) | (271) | (271) | 1 | ||||||||||||
Other comprehensive income (loss), net of tax | (1,439) | (1,439) | (1,439) | 0 | ||||||||||||
Total comprehensive income (loss) | (1,709) | (1,710) | 1 | |||||||||||||
Balance at Mar. 31, 2020 | 61,072 | 6 | 25,506 | 32,176 | (19,841) | 22,600 | 60,447 | 625 | ||||||||
Balance at Dec. 31, 2019 | 63,719 | 6 | 25,532 | 32,991 | (19,453) | 24,039 | 63,115 | 604 | $ (99) | [2] | $ (99) | [2] | $ (99) | [2] | ||
Comprehensive income: | ||||||||||||||||
Net income (loss) | (2,675) | |||||||||||||||
Other comprehensive income (loss), net of tax | 6,799 | |||||||||||||||
Total comprehensive income (loss) | 4,124 | |||||||||||||||
Balance at Jun. 30, 2020 | 66,508 | 6 | 25,513 | 29,326 | (19,785) | 30,837 | 65,897 | 611 | ||||||||
Balance at Mar. 31, 2020 | 61,072 | 6 | 25,506 | 32,176 | (19,841) | 22,600 | 60,447 | 625 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Contributions from noncontrolling interests | 4 | 4 | ||||||||||||||
Distributions to noncontrolling interests | (23) | (23) | ||||||||||||||
Stock-based compensation programs | 63 | 7 | 56 | 63 | ||||||||||||
Dividends declared on Common Stock | (441) | (441) | (441) | |||||||||||||
Comprehensive income: | ||||||||||||||||
Net income (loss) | (2,405) | (2,409) | (2,409) | 4 | ||||||||||||
Other comprehensive income (loss), net of tax | 8,238 | 8,237 | 8,237 | 1 | ||||||||||||
Total comprehensive income (loss) | 5,833 | 5,828 | 5 | |||||||||||||
Balance at Jun. 30, 2020 | $ 66,508 | $ 6 | $ 25,513 | $ 29,326 | $ (19,785) | $ 30,837 | $ 65,897 | $ 611 | ||||||||
[1] | Includes the impact from the adoption of ASU 2017-08 and 2017-12. See Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 for additional information. | |||||||||||||||
[2] | Includes the impact from the adoption of ASU 2016-13. See Note 2. |
Unaudited Interim Consolidate_6
Unaudited Interim Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (2,675) | $ 1,675 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Realized investment (gains) losses, net | 2,085 | 1,102 | |
Policy charges and fee income | (1,366) | (1,483) | |
Interest credited to policyholders’ account balances | 2,224 | 2,623 | |
Depreciation and amortization | 383 | (89) | |
(Gains) losses on assets supporting experience-rated contractholder liabilities, net | (142) | (741) | |
Change in: | |||
Deferred policy acquisition costs | (120) | (258) | |
Future policy benefits and other insurance liabilities | 5,186 | 5,603 | |
Income taxes | (4) | (382) | |
Derivatives, net | 10,629 | 2,010 | |
Other, net | (2,721) | (1,736) | |
Cash flows from (used in) operating activities | 13,479 | 8,324 | |
Proceeds from the sale/maturity/prepayment of: | |||
Fixed maturities, available-for-sale | 20,664 | 25,681 | |
Fixed maturities, held-to-maturity | 58 | 35 | |
Fixed maturities, trading | 276 | 187 | |
Assets supporting experience-rated contractholder liabilities | 14,015 | 9,014 | |
Equity securities | 1,274 | 1,377 | |
Commercial mortgage and other loans | 2,639 | 2,885 | |
Policy loans | 1,291 | 1,154 | |
Other invested assets | 939 | 724 | |
Short-term investments | 21,107 | 16,682 | |
Payments for the purchase/origination of: | |||
Fixed maturities, available-for-sale | (26,815) | (32,847) | |
Fixed maturities, trading | (446) | (570) | |
Assets supporting experience-rated contractholder liabilities | (15,453) | (8,813) | |
Equity securities | (1,370) | (1,376) | |
Commercial mortgage and other loans | (2,463) | (4,352) | |
Policy loans | (1,288) | (945) | |
Other invested assets | (1,435) | (1,011) | |
Short-term investments | (27,076) | (16,278) | |
Derivatives, net | 841 | 638 | |
Other, net | (107) | (222) | |
Cash flows from (used in) investing activities | (13,349) | (8,037) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Policyholders’ account deposits | 25,452 | 13,280 | |
Policyholders’ account withdrawals | (20,306) | (13,045) | |
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities | 41 | 97 | |
Cash dividends paid on Common Stock | (886) | (827) | |
Net change in financing arrangements (maturities 90 days or less) | 306 | 166 | |
Common Stock acquired | (500) | (983) | |
Common Stock reissued for exercise of stock options | 73 | 75 | |
Proceeds from the issuance of debt (maturities longer than 90 days) | 1,563 | 1,439 | |
Repayments of debt (maturities longer than 90 days) | (791) | (924) | |
Proceeds from notes issued by consolidated VIEs | 0 | 925 | |
Repayments of notes issued by consolidated VIEs | (18) | (638) | |
Other, net | (247) | 196 | |
Cash flows from (used in) financing activities | 4,687 | (239) | |
Effect of foreign exchange rate changes on cash balances | 6 | 27 | |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS | 4,823 | 75 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, BEGINNING OF YEAR | 16,474 | 15,495 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS, END OF PERIOD | 21,297 | 15,570 | |
NON-CASH TRANSACTIONS DURING THE PERIOD | |||
Treasury Stock shares issued for stock-based compensation programs | 144 | 168 | |
RECONCILIATION TO THE UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||
Cash and cash equivalents | 21,149 | [1],[2] | 15,421 |
Restricted cash and restricted cash equivalents (included in “Other assets”) | 148 | 149 | |
Total cash, cash equivalents, restricted cash and restricted cash equivalents | 21,297 | 15,570 | |
Pension Risk Transfer | |||
NON-CASH TRANSACTIONS DURING THE PERIOD | |||
Assets Received, excluding cash and cash equivalents | 238 | 445 | |
Liabilities Assumed | 505 | 447 | |
Net cash received | $ 267 | $ 2 | |
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. | ||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Business and Basis of Presentat
Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Basis of Presentation | BUSINESS AND BASIS OF PRESENTATION Prudential Financial, Inc. (“Prudential Financial”) and its subsidiaries (collectively, “Prudential” or the “Company”) provide a wide range of insurance, investment management, and other financial products and services to both individual and institutional customers throughout the United States and in many other countries. Principal products and services provided include life insurance, annuities, retirement-related services, mutual funds and investment management. The Company’s principal operations are comprised of 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, LLC (“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. Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The Unaudited Interim 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 additional information on the Company’s consolidated variable interest entities. Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . 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; policyholders’ account balances related to the 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, measurement of allowance for credit losses, and 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. COVID-19 Beginning in the first quarter of 2020, the outbreak of the novel coronavirus (“COVID-19”) has resulted in extreme stress and disruption in the global economy and financial markets, and has adversely impacted, and may continue to adversely impact, our results of operations, financial condition and cash flows. Due to the highly uncertain nature of these conditions, it is not possible to estimate the ultimate impacts at this time. The risks may have manifested, and may continue to manifest, in our financial statements in the areas of, among others, i) investments: increased risk of loss on our investments due to default or deterioration in credit quality or value; ii) insurance liabilities and related balances: potential changes to assumptions regarding investment returns, mortality, morbidity and policyholder behavior which are reflected in our insurance liabilities and certain related balances (e.g., DAC, VOBA, etc.); and iii) goodwill: the macroeconomic environment may also result in the need to recognize an impairment of goodwill which could negatively impact our results of operations and financial condition. We cannot predict what impact the COVID-19 pandemic will ultimately have on the global economy, markets or our businesses. Business Held for Sale On April 10, 2020, Prudential International Insurance Holdings, Ltd. (“PIIH”), a subsidiary of Prudential Financial, entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with KB Financial Group Inc. (the “Buyer”), pursuant to which PIIH has agreed to sell to the Buyer all of the issued and outstanding capital stock of The Prudential Life Insurance Company of Korea, Ltd. (“POK”), the Company’s Korean insurance business, for cash consideration of approximately 2.3 trillion Korean Won, equal to approximately U.S. $1.9 billion at then current exchange rates, to be paid at closing. The Share Purchase Agreement contains customary warranties and covenants of PIIH and the Buyer. The Company expects the transaction to close by the end of 2020, subject to regulatory approval and the satisfaction of customary closing conditions. Beginning with the second quarter of 2020, the Company reported its investment in POK as “held for sale” and recognized an after-tax charge to earnings, primarily within “Other income”, of approximately $700 million to adjust the carrying value of POK to the fair market value as reflected in the purchase price. The after-tax charge excludes the impact of currency hedging transactions that the Company expects to settle at transaction closing, the fair value of which was approximately $40 million in assets at June 30, 2020. The ultimate after-tax loss, as well as the settlement value of the hedging transactions, will be based on balances at the closing date and could vary materially from the charge recorded in the second quarter. In addition, upon closing of the transaction, the Company expects to recognize an approximately $100 million tax expense, with an offsetting benefit to accumulated other comprehensive income (“AOCI”), related to the release of legacy tax balances resulting from prior year changes in tax law. The Company intends to use the proceeds of the transaction for general corporate purposes. The table below reflects the carrying amounts of assets and liabilities held for sale related to the pending sale of POK. June 30, 2020 (in millions)(1) Assets held for sale: Fixed maturities, available-for-sale $ 14,402 Equity securities 264 Commercial mortgage and other loans 3 Policy loans 777 Other invested assets 109 Short-term investments 69 Cash and cash equivalents 218 Accrued investment income 134 Deferred policy acquisition costs 1,178 Other assets(2) 254 Separate account assets 3,427 Total assets held for sale $ 20,835 Liabilities held for sale: Future policy benefits $ 10,527 Policyholders’ account balances 1,357 Policyholders’ dividends 26 Income taxes 989 Other liabilities(2) 815 Separate account liabilities 3,427 Total liabilities held for sale $ 17,141 _________ (1) These amounts held for sale are included, where applicable, in the remaining Notes to the Unaudited Interim Consolidated Financial Statements and are presented within the line items noted in this table. (2) Includes POK’s lower of cost or fair market value adjustment. Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Significant Accounting Policies
Significant Accounting Policies and Pronouncements | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Pronouncements | SIGNIFICANT ACCOUNTING POLICIES AND PRONOUNCEMENTS Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification (“ASC”). The Company considers the applicability and impact of all ASUs. ASUs listed below include those that have been adopted during the current fiscal year and/or those that have been issued but not yet adopted as of June 30, 2020, and as of the date of this filing. ASUs not listed below were assessed and determined to be either not applicable or not material. Adoption of ASU 2016-13 The Company adopted ASU 2016-13, and related ASUs, effective January 1, 2020 using the modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. The modified retrospective method results in a cumulative effect adjustment to opening retained earnings. The Company adopted the guidance related to fixed maturities, available-for-sale on a prospective basis. This ASU requires the use of a new current expected credit loss (“CECL”) model to account for expected credit losses on certain financial assets reported at amortized cost (e.g., loans held for investment, fixed maturities held-to-maturity, reinsurance receivables, etc.) and certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans and certain loan commitments). The guidance requires an entity to estimate lifetime credit losses related to such financial assets and credit exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of the reported amounts. The standard also modifies the OTTI guidance for fixed maturities, available-for-sale requiring the use of an allowance rather than a direct write-down of the investment. The impacts of this ASU on the Company’s Consolidated Financial Statements primarily include (1) A Cumulative Effect Adjustment Upon Adoption; (2) Changes to the Presentation of the Consolidated Statements of Financial Position and Consolidated Statements of Operations; and (3) Changes to Accounting Policies. Each of these impacts is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (1) Cumulative Effect Adjustment Upon Adoption Summary of Transition Impact on the Consolidated Statements of Financial Position Upon Adoption on January 1, 2020 Increase/(Decrease) (in millions) Fixed maturities, held-to-maturity $ (9 ) Commercial mortgage and other loans (115 ) Other invested assets (1 ) Deferred policy acquisition costs 9 Other assets (6 ) Total assets $ (122 ) Policyholders' dividends $ (14 ) Other liabilities 21 Income taxes (30 ) Total liabilities (23 ) Retained earnings (99 ) Total equity (99 ) Total liabilities and equity $ (122 ) The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings. (2) Changes to the Presentation of the Consolidated Statements of Financial Position and Consolidated Statements of Operations The allowance for credit losses is presented parenthetically on relevant line items in the Consolidated Statements of Financial Position. In the Consolidated Statements of Operations, realized investment gains (losses), net are presented on one line item and will no longer reflect the breakout of OTTI on fixed maturity securities; OTTI on fixed maturity securities transferred to other comprehensive income (“OCI”); and other realized investment gains (losses), net. The presentation of this detail in prior periods is immaterial. (3) Changes to Accounting Policies This section has been updated to include the following changes in our accounting policies resulting from the adoption of ASU 2016-13. Fixed maturities, available-for-sale Fixed maturities, available-for-sale (“AFS debt securities”) are reported at fair value in the Statements of Financial Position. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. 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 relating to the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of impairments recognized in earnings and OCI. For mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is impaired or purchased with credit deterioration. For impaired mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively only if subsequent favorable or adverse changes in expected cash flows are not reflected in the allowance for credit losses. Prior to the adoption of this standard, the effective yield was adjusted prospectively regardless of whether the investment was impaired or not. AFS debt securities with unrealized losses are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. In evaluating whether the amortized cost basis is recoverable, the Company considers several factors including, but not limited to the extent of the decline and the reasons for the decline in value (credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer. When an AFS debt security is in an unrealized loss position and (1) the Company has the intent to sell the AFS debt security, or (2) it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, or (3) the Company has deemed the AFS debt security to be uncollectable, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The impairment is reported in “Realized investment gains (losses), net.” The new cost basis is not adjusted for subsequent increases in estimated fair value. For an AFS debt security in an unrealized loss position that does not meet these conditions, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows (the “net present value”) 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 AFS debt security at the date of acquisition. The Company may use the estimated fair value of collateral, if any, 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 allowance for losses is recognized in earnings for the difference between amortized cost and the net present value and is limited to the difference between amortized cost and fair value of the AFS debt security. Any difference between the fair value and the net present value of the debt security at the impairment measurement date remains in “Other comprehensive income (loss).” Changes in the allowance for losses are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, any impairments on AFS debt securities were reported as an adjustment to the amortized cost basis of the security. Subsequent to the impairment, the AFS debt security was treated as if it were newly acquired at the date of impairment, and any increases in cash flows expected to be collected were accreted into net investment income over the life of the investment. Fixed maturities, held-to-maturity Fixed maturities, held-to-maturity are reported in the Statements of Financial Position at amortized cost net of the CECL allowance. The CECL allowance is generally determined based on probability of default and loss given default assumptions according to sector, credit quality and remaining time to maturity. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, fixed maturities, held-to-maturity deemed to be OTTI were written down to the net present value of expected cash flows. Any difference between the fair value and the net present value of the debt security at the impairment measurement date was recorded in “Other comprehensive income (loss).” Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. For mortgage-backed and asset-backed securities, the effective yield is based on estimated timing and amount of 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 impairment recognized in earnings and OCI. For mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is impaired or purchased with credit deterioration. For impaired mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively only if subsequent favorable or adverse changes in expected cash flows are not reflected in the allowance for credit losses. Prior to the adoption of this standard, the effective yield was adjusted prospectively regardless of whether the investment was impaired or not. Commercial mortgage and other loans Commercial mortgage and other loans are reported in the Statements of Financial Position at amortized cost net of the CECL allowance. Additionally, certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance. The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, and other collateralized and uncollateralized loans. For commercial mortgage and agricultural mortgage loans (and related unfunded commitments where the Company cannot unconditionally cancel the commitment), the allowance is calculated using an internally developed CECL model. Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below. Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to-value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt-service-coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt-service-coverage ratios less than 1.0 times indicate that a property’s 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 and agricultural mortgage loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a credit re-rating process, whereby the internal credit rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary credit quality rating system. 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 mortgage loan portfolios. Generally, every loan is re-rated at least annually. Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations. When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities,” and the change in the allowance is reported in “Realized investment gains (losses), net.” When a commercial mortgage or other loan is deemed to be uncollectible, any allowance is reversed and a direct write-down of the carrying amount of the loan is recorded through “Realized investment gains (losses), net.” The carrying amount of the loan is not adjusted for subsequent recoveries in value. The CECL allowance for other collateralized and uncollateralized loans carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, the impairments on commercial mortgage and other loans were collectively reviewed at a portfolio level for impairment based on probable incurred but not specifically identified losses with any such losses reflected in an allowance for credit losses. When a loan was individually identified to be impaired, the loan was individually evaluated for an allowance. Changes in these allowances were reported in “Realized investment gains (losses), net.” Additionally, an allowance for credit losses was not required on unfunded loan commitments. As further described in Note 14, the Company’s PGIM business provides commercial mortgage origination, underwriting and servicing for certain government sponsored entities (“GSEs”). The Company has agreed to indemnify the GSEs for a portion of the credit risk associated with certain of the mortgages it services. Management has established a CECL allowance that factors in historical loss information, current conditions and reasonable and supportable forecasts. The allowance also considers the remaining lives of the loans subject to the indemnification. The CECL allowance is included in “Other liabilities” and changes in the CECL allowance are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, a credit loss allowance was not required. Reinsurance Reinsurance recoverables are reported on the Statements of Financial Position in “Other Assets” net of the CECL allowance. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Trade Receivables Trade receivables related to Assurance IQ are reported in the Statements of Financial Position in “Other assets” net of the CECL allowance. The CECL allowance considers the credit quality of the counterparties and is generally determined based on probability of default and loss given default assumptions. Additions to or releases of the allowance are reported in “General and administrative expenses.” Prior to the adoption of this standard, the reserve was limited to an allowance for doubtful accounts. Other ASUs adopted during the six months ended June 30, 2020 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters 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. The adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This ASU provides optional relief for certain contracts impacted by reference rate reform. The standard permits an entity to consider contract modification due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The ASU also temporarily (until December 31, 2022) allows hedge relationships to continue without de-designation upon changes due to reference rate reform. March 12, 2020 to December 31, 2022 using the prospective method. This ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The Company made the election under ASU 2020-04 for all applicable contracts as they converted from the current reference rate to the new reference rate. ASU issued but not yet adopted as of June 30, 2020 — 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. As a result of the COVID-19 pandemic, the FASB voted in June 2020 to tentatively defer for an additional one year the current effective date of ASU 2018-12 from January 1, 2022 to January 1, 2023, and to provide transition relief to facilitate the early adoption of the ASU. Subsequently in July 2020, the FASB issued a proposed ASU with comment deadline of August 24, 2020 to obtain additional feedback on the tentative decisions, which are expected to be finalized during the third quarter of 2020. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would also apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. ASU 2018-12 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 non-performance risk (“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. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Investments | 3. INVESTMENTS Fixed Maturity Securities The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated: June 30, 2020 Amortized Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 31,731 $ 11,309 $ 19 $ 0 $ 43,021 Obligations of U.S. states and their political subdivisions 10,387 2,012 1 0 12,398 Foreign government bonds 98,357 18,657 206 38 116,770 U.S. public corporate securities 91,777 15,518 627 51 106,617 U.S. private corporate securities(1) 35,145 3,281 215 52 38,159 Foreign public corporate securities 26,070 3,328 248 32 29,118 Foreign private corporate securities 28,167 1,145 925 64 28,323 Asset-backed securities(2) 13,989 152 205 0 13,936 Commercial mortgage-backed securities 15,089 1,181 7 1 16,262 Residential mortgage-backed securities(3) 3,100 241 1 0 3,340 Total fixed maturities, available-for-sale(1) $ 353,812 $ 56,824 $ 2,454 $ 238 $ 407,944 June 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Amortized Cost, Net of Allowance (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 896 $ 261 $ 0 $ 1,157 $ 0 $ 896 Foreign public corporate securities 625 61 0 686 9 616 Foreign private corporate securities 83 2 0 85 0 83 Residential mortgage-backed securities(3) 280 23 0 303 0 280 Total fixed maturities, held-to-maturity(4) $ 1,884 $ 347 $ 0 $ 2,231 $ 9 $ 1,875 __________ (1) Excludes notes with amortized cost of $6,466 million (fair value, $6,466 million ), which have been offset with the associated debt under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans, home equity loans and other asset types. (3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (4) Excludes notes with amortized cost of $4,998 million (fair value, $5,603 million ), which have been offset with the associated debt under a netting agreement. 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. The following table sets forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit 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 date indicated: June 30, 2020 Less Than Twelve Months Total Fair Gross Fair Gross Fair Gross (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 950 $ 22 $ 0 $ 0 $ 950 $ 22 Obligations of U.S. states and their political subdivisions 47 1 0 0 47 1 Foreign government bonds 4,589 192 31 3 4,620 195 U.S. public corporate securities 6,595 372 1,504 236 8,099 608 U.S. private corporate securities 2,393 118 1,017 97 3,410 215 Foreign public corporate securities 2,875 169 400 60 3,275 229 Foreign private corporate securities 5,775 245 5,223 675 10,998 920 Asset-backed securities 6,741 120 3,510 85 10,251 205 Commercial mortgage-backed securities 105 4 75 3 180 7 Residential mortgage-backed securities 24 0 2 0 26 0 Total fixed maturities, available-for-sale $ 30,094 $ 1,243 $ 11,762 $ 1,159 $ 41,856 $ 2,402 The following table sets forth the fair value and gross unrealized losses on fixed maturity securities aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the date 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. As of June 30, 2020 , the gross unrealized losses on fixed maturity available-for-sale securities without an allowance were composed of $1,450 million related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $952 million related to other than high or highest quality securities based on NAIC or equivalent rating. As of June 30, 2020 , the $1,159 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the energy, finance and consumer non-cyclical sectors. As of December 31, 2019 , the gross unrealized losses on fixed maturity securities were composed of $973 million related to “1” highest quality or “2” high quality securities based on the NAIC or equivalent rating and $342 million 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. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for credit losses related to these fixed maturity securities was not warranted at June 30, 2020 . 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, foreign currency exchange rate movements and the financial condition or near-term prospects of the issuer. As of June 30, 2020 , 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 or amortized cost, net of allowance and fair value of fixed maturities by contractual maturities, as of the date indicated: June 30, 2020 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost, Net of Allowance Fair Value (in millions) Fixed maturities: Due in one year or less $ 17,494 $ 18,078 $ 114 $ 116 Due after one year through five years 51,138 54,309 0 0 Due after five years through ten years 67,575 75,812 588 659 Due after ten years(1) 185,427 226,207 893 1,153 Asset-backed securities 13,989 13,936 0 0 Commercial mortgage-backed securities 15,089 16,262 0 0 Residential mortgage-backed securities 3,100 3,340 280 303 Total $ 353,812 $ 407,944 $ 1,875 $ 2,231 __________ (1) Excludes available-for-sale notes with amortized cost of $6,466 million (fair value, $6,466 million ) and held-to-maturity notes with amortized cost of $4,998 million (fair value, $5,603 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 write-downs, impairments and the allowance for credit losses of fixed maturities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 5,217 $ 6,659 $ 10,370 $ 16,821 Proceeds from maturities/prepayments 5,539 4,704 10,422 9,192 Gross investment gains from sales and maturities 405 228 873 711 Gross investment losses from sales and maturities (149 ) (95 ) (210 ) (283 ) OTTI recognized in earnings(2) N/A (64 ) N/A (99 ) Write-downs recognized in earnings(3) (64 ) N/A (155 ) N/A (Addition to) release of allowance for credit losses(4) (80 ) N/A (238 ) N/A Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(5) $ 22 $ 23 $ 63 $ 37 (Addition to) release of allowance for credit losses(4) 0 N/A 0 N/A __________ (1) Includes $128 million and $332 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2020 and 2019 , respectively. (2) For the three and six months ended June 30, 2019 , amounts exclude 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) For the three and six months ended June 30, 2020 , amounts represent write-downs on securities approaching maturity related to foreign exchange movements and securities actively marketed for sale. (4) Effective January 1, 2020, credit losses on available-for-sale and held-to-maturity fixed maturity securities are recorded within the “allowance for credit losses.” (5) Includes $5 million and $2 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2020 and 2019 , respectively. The following tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the date indicated: June 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in millions) Fixed maturities, available-for-sale: Balance, beginning of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 38 205 0 1 0 244 Reductions for securities sold during the period 0 0 (28 ) 0 0 0 (28 ) Additions/reductions on securities with previous allowance 0 0 22 0 0 0 22 Balance, end of period $ 0 $ 38 $ 199 $ 0 $ 1 $ 0 $ 238 June 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in millions) Fixed maturities, held-to-maturity: Balance, beginning of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Cumulative effect of adoption of ASU 2016-13 0 0 9 0 0 0 9 Balance, end of period $ 0 $ 0 $ 9 $ 0 $ 0 $ 0 $ 9 See Note 2 for additional information about the Company’s methodology for developing our allowance and expected losses. As of June 30, 2020 , the allowance for credit losses on available-for-sale securities was primarily related to adverse projected cash flows on public and private corporate securities. The Company did not have any fixed maturity securities purchased with credit deterioration, as of June 30, 2020 . Assets Supporting Experience-Rated Contractholder Liabilities The following table sets forth the composition of “Assets supporting experience-rated contractholder liabilities,” as of the dates indicated: June 30, 2020 December 31, 2019 Amortized Fair Amortized Fair (in millions) Short-term investments and cash equivalents $ 1,234 $ 1,234 $ 277 $ 277 Fixed maturities: Corporate securities 13,492 14,190 13,143 13,603 Commercial mortgage-backed securities 1,832 1,921 1,845 1,896 Residential mortgage-backed securities(1) 1,142 1,200 1,134 1,158 Asset-backed securities(2) 1,762 1,772 1,639 1,662 Foreign government bonds 803 808 802 814 U.S. government authorities and agencies and obligations of U.S. states 354 437 341 397 Total fixed maturities(3) 19,385 20,328 18,904 19,530 Equity securities 1,533 1,683 1,465 1,790 Total assets supporting experience-rated contractholder liabilities(4) $ 22,152 $ 23,245 $ 20,646 $ 21,597 __________ (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 $1,141 million and $1,060 million as of June 30, 2020 and December 31, 2019 , respectively, all of which were rated AAA. (3) As a percentage of amortized cost, 93% and 94% of the portfolio was considered high or highest quality based on NAIC or equivalent ratings, as of June 30, 2020 and December 31, 2019 , respectively. (4) As a percentage of amortized cost, 78% and 77% of the portfolio consisted of public securities as of June 30, 2020 and December 31, 2019 , 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 $984 million and $300 million during the three months ended June 30, 2020 and 2019 , respectively, and $142 million and $769 million during the six months ended June 30, 2020 and 2019 , respectively. Equity Securities The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss),” was $825 million and $51 million during the three months ended June 30, 2020 and 2019 , respectively, and $(656) million and $581 million during the six months ended June 30, 2020 and 2019 , respectively. Concentrations of Financial Instruments The Company monitors its concentrations of financial instruments and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any single issuer. As of the dates indicated, the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s equity included securities of the U.S. government and certain U.S. government agencies and securities guaranteed by the U.S. government, as well as the securities disclosed below: June 30, 2020 December 31, 2019 Amortized Fair Value Amortized Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 74,765 $ 87,747 $ 74,118 $ 89,546 Fixed maturities, held-to-maturity 874 1,127 869 1,143 Fixed maturities, trading 23 22 23 23 Assets supporting experience-rated contractholder liabilities 647 652 653 664 Total $ 76,309 $ 89,548 $ 75,663 $ 91,376 June 30, 2020 December 31, 2019 Amortized Fair Value Amortized Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 10,783 $ 13,402 $ 10,823 $ 13,322 Assets supporting experience-rated contractholder liabilities 15 16 15 16 Total $ 10,798 $ 13,418 $ 10,838 $ 13,338 Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2020 December 31, 2019 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,642 20.2 % $ 13,462 21.4 % Retail 7,739 12.3 8,379 13.3 Apartments/Multi-Family 18,031 28.8 17,348 27.6 Industrial 13,292 21.2 13,226 21.1 Hospitality 2,378 3.8 2,415 3.9 Other 4,617 7.4 4,533 7.2 Total commercial mortgage loans 58,699 93.7 59,363 94.5 Agricultural property loans 3,978 6.3 3,472 5.5 Total commercial mortgage and agricultural property loans by property type 62,677 100.0 % 62,835 100.0 % Allowance for credit losses (238 ) (117 ) Total net commercial mortgage and agricultural property loans by property type 62,439 62,718 Other loans: Uncollateralized loans 680 656 Residential property loans 109 124 Other collateralized loans 248 65 Total other loans 1,037 845 Allowance for credit losses (7 ) (4 ) Total net other loans 1,030 841 Total commercial mortgage and other loans(1) $ 63,469 $ 63,559 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2020 and December 31, 2019 , the net carrying value of these loans was $682 million and $228 million , respectively. As of June 30, 2020 , the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California ( 28% ), Texas ( 9% ) and New York ( 8% )) and included loans secured by properties in Europe ( 7% ), Asia ( 2% ) and Australia ( 1% ). The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Balance at December 31, 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 Cumulative effect of adoption of ASU 2016-13 110 5 0 0 0 115 Addition to (release of) allowance for expected losses 6 0 0 0 0 6 Other 0 0 0 3 0 3 Balance at June 30, 2020 $ 230 $ 8 $ 0 $ 3 $ 4 $ 245 See Note 2 for additional information about the Company’s methodology for developing our allowance and expected losses. As of June 30, 2020 The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated: June 30, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Total (in millions) Loan-to-Value Ratio: Commercial mortgage loans 0%-59.99% $ 346 $ 2,791 $ 3,067 $ 3,462 $ 3,296 $ 17,859 $ 0 $ 30,821 60%-69.99% 1,265 4,057 3,457 2,668 2,886 4,506 0 18,839 70%-79.99% 809 3,021 2,531 1,091 570 720 0 8,742 80% or greater 0 10 0 18 61 208 0 297 Subtotal 2,420 9,879 9,055 7,239 6,813 23,293 0 58,699 Agricultural property loans 0%-59.99% 534 483 376 555 400 1,410 0 3,758 60%-69.99% 112 71 34 3 0 0 0 220 70%-79.99% 0 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 0 Subtotal 646 554 410 558 400 1,410 0 3,978 Total commercial mortgage and agricultural property loans 0%-59.99% 880 3,274 3,443 4,017 3,696 19,269 0 34,579 60%-69.99% 1,377 4,128 3,491 2,671 2,886 4,506 0 19,059 70%-79.99% 809 3,021 2,531 1,091 570 720 0 8,742 80% or greater 0 10 0 18 61 208 0 297 Total commercial mortgage and agricultural property loans $ 3,066 $ 10,433 $ 9,465 $ 7,797 $ 7,213 $ 24,703 $ 0 $ 62,677 June 30, 2020 December 31, 2019 Commercial Mortgage Loans Agricultural Property Loans Commercial Mortgage Loans Agricultural Property Loans (in millions) Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 55,921 $ 3,870 $ 56,346 $ 3,401 1.0 - 1.2x 2,465 80 2,708 57 Less than 1.0x 313 28 309 14 Total $ 58,699 $ 3,978 $ 59,363 $ 3,472 See Note 2 for additional information about the Company’s commercial mortgage and other loans credit quality monitoring process. The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: June 30, 2020 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Non-Accrual (in millions) Commercial mortgage loans $ 58,386 $ 0 $ 313 $ 0 $ 313 $ 58,699 $ 44 Agricultural property loans 3,971 0 1 6 7 3,978 15 Residential property loans 107 1 0 1 2 109 1 Other collateralized loans 248 0 0 0 0 248 0 Uncollateralized loans 680 0 0 0 0 680 4 Total $ 63,392 $ 1 $ 314 $ 7 $ 322 $ 63,714 $ 64 __________ (1) As of June 30, 2020 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . 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 Non-Accrual (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 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Loans on non-accrual status recognized interest income of $2 million for both the three months and six months ended June 30, 2020 , respectively, and $19 million of these loans did not have a related allowance for credit losses as of June 30, 2020 . The Company did not have any significant losses on commercial mortgage and other loans purchased with credit deterioration as of June 30, 2020 . Other Invested Assets The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2020 December 31, 2019 (in millions) LPs/LLCs: Equity method: Private equity $ 3,830 $ 3,625 Hedge funds 2,166 1,947 Real estate-related 1,381 1,372 Subtotal equity method 7,377 6,944 Fair value: Private equity 1,548 1,705 Hedge funds 2,100 2,172 Real estate-related 331 336 Subtotal fair value 3,979 4,213 Total LPs/LLCs 11,356 11,157 Real estate held through direct ownership(1) 2,451 2,388 Derivative instruments 1,655 877 Other(2) 1,295 1,184 Total other invested assets $ 16,757 $ 15,606 _________ (1) As of June 30, 2020 and December 31, 2019 , real estate held through direct ownership had mortgage debt of $459 million and $537 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 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Accrued Investment Income The following table sets forth the composition of “Accrued investment income,” as of the date indicated: June 30, 2020 (in millions) Fixed maturities $ 2,739 Equity securities 9 Commercial mortgage and other loans 198 Policy loans 301 Other invested assets 36 Short-term investments and cash equivalents 13 Total accrued investment income $ 3,296 There were $9 million and $12 million of write-downs on accrued investment income for the three months and six months ended June 30, 2020 , respectively. Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Fixed maturities, available-for-sale(1) $ 3,067 $ 3,150 $ 6,179 $ 6,238 Fixed maturities, held-to-maturity(1) 58 58 117 115 Fixed maturities, trading 34 38 68 72 Assets supporting experience-rated contractholder liabilities 164 182 348 367 Equity securities 55 51 83 81 Commercial mortgage and other loans 618 627 1,258 1,227 Policy loans 150 152 303 303 Other invested assets 147 271 278 476 Short-term investments and cash equivalents 65 115 152 233 Gross investment income 4,358 4,644 8,786 9,112 Less: investment expenses (172 ) (254 ) (398 ) (506 ) Net investment income $ 4,186 $ 4,390 $ 8,388 $ 8,606 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line item as related surplus notes, as conditions are met for right to offset. Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Fixed maturities(1) $ 112 $ 69 $ 270 $ 329 Commercial mortgage and other loans 2 4 24 14 Investment real estate 11 0 10 0 LPs/LLCs (3 ) 2 (6 ) (3 ) Derivatives (3,881 ) (411 ) (2,389 ) (1,443 ) Other 7 0 6 1 Realized investment gains (losses), net $ (3,752 ) $ (336 ) $ (2,085 ) $ (1,102 ) __________ (1) Net Unrealized Gains (Losses) on Investments within AOCI The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: June 30, December 31, (in millions) Fixed maturity securities, available-for-sale—with OTTI(1) $ N/A $ 243 Fixed maturity securities, available-for-sale—all other(1) N/A 44,279 Fixed maturity securities, available-for-sale with an allowance (40 ) N/A Fixed maturity securities, available-for-sale without an allowance 54,410 N/A Derivatives designated as cash flow hedges(2) 2,498 832 Other investments(3) (2 ) (15 ) Net unrealized gains (losses) on investments $ 56,866 $ 45,339 __________ (1) Effective January 1, 2020, per ASU 2016-13, fixed maturity securities, available-for-sale are no longer required to be disclosed “with OTTI” and “all other.” (2) For additional information on cash flow hedges, see Note 5. (3) As of June 30, 2020 , there were no Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. The following table sets forth the composition of “Securities sold under agreements to repurchase,” as of the dates indicated: June 30, 2020 December 31, 2019 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 $ 9,516 $ 558 $ 10,074 $ 9,431 $ 0 $ 9,431 Residential mortgage-backed securities 414 0 414 250 0 250 Total securities sold under agreements to repurchase(1) $ 9,930 $ 558 $ 10,488 $ 9,681 $ 0 $ 9,681 __________ (1) The Company did no t have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: June 30, 2020 December 31, 2019 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 $ 0 $ 0 $ 0 $ 9 $ 0 $ 9 Obligations of U.S. states and their political subdivisions 101 0 101 33 0 33 Foreign government bonds 381 0 381 244 0 244 U.S. public corporate securities 2,375 0 2,375 2,996 0 2,996 Foreign public corporate securities 536 0 536 762 0 762 Commercial mortgage-backed securities 2 0 2 2 0 2 Equity securities 52 0 52 167 0 167 Total cash collateral for loaned securities(1) $ 3,447 $ 0 $ 3,447 $ 4,213 $ 0 $ 4,213 __________ (1) The Company did no t have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2020 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES In the normal course of its activities, the Company enters into relationships with various special-purpose entities and other entities that are deemed to be variable interest entities (“VIEs”). For additional information, see Note 4 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Consolidated Variable Interest Entities The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. The liabilities primarily comprise obligations under debt instruments issued by the VIEs. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. Consolidated VIEs for which the Company is the Investment Manager(1) Other Consolidated VIEs(1) June 30, December 31, June 30, December 31, (in millions) Fixed maturities, available-for-sale $ 99 $ 104 $ 284 $ 285 Fixed maturities, held-to-maturity 83 83 843 839 Fixed maturities, trading 1,043 1,112 0 0 Assets supporting experience-rated contractholder liabilities 0 0 2 4 Equity securities 29 47 0 0 Commercial mortgage and other loans 943 883 0 0 Other invested assets 2,379 2,199 151 89 Cash and cash equivalents 153 166 0 0 Accrued investment income 5 4 4 4 Other assets 422 450 663 689 Total assets of consolidated VIEs $ 5,156 $ 5,048 $ 1,947 $ 1,910 Other liabilities $ 386 $ 304 $ 15 $ 13 Notes issued by consolidated VIEs(2) 1,197 1,274 0 0 Total liabilities of consolidated VIEs $ 1,583 $ 1,578 $ 15 $ 13 __________ (1) Total assets of consolidated VIEs reflect $2,742 million and $2,668 million as of June 30, 2020 and December 31, 2019 , respectively, related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. (2) Recourse is limited to the assets of the respective VIE and does not extend to the general credit of the Company . As of June 30, 2020 , 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. 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 $1,015 million and $1,021 million at June 30, 2020 and December 31, 2019 , respectively. These investments are reflected in “Fixed maturities, available-for-sale,” “Fixed maturities, trading,” “Equity securities” and “Other invested assets.” There are no liabilities associated with these unconsolidated VIEs on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In the normal course of its activities, the Company will invest in limited partnerships and limited liability companies (“LPs/LLCs”), which include hedge funds, private equity funds and real estate-related funds and may or may not be VIEs. The Company’s maximum exposure to loss on these investments, both VIEs and non-VIEs, is limited to the amount of its investment. The Company classifies these investments as “Other invested assets” and its maximum exposure to loss associated with these entities was $11,356 million and $11,157 million as of June 30, 2020 and December 31, 2019 , respectively. In addition, in the normal course of its activities, the Company will invest in structured investments including VIEs for which it is not the investment manager. These structured investments typically invest in fixed income investments and are managed by third-parties and include asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities. The Company’s maximum exposure to loss on these structured investments, both VIEs and non-VIEs, is limited to the amount of its investment. See Note 3 for details regarding the carrying amounts and classification of these assets. The Company has not provided material financial or other support that was not contractually required to these structures. The Company has determined that it is not the primary beneficiary of these structures due to the fact that it does not control these entities. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 5. DERIVATIVE INSTRUMENTS Types of Derivative Instruments and Derivative Strategies The Company utilizes various derivatives instruments and strategies to manage its risk. Commonly used derivative instruments include, but are not necessarily limited to: • Interest rate contracts: futures, swaps, forwards, options, caps and floors • Equity contracts: futures, options and total return swaps • Foreign exchange contracts: futures, options, forwards and swaps • Credit contracts: single and index reference credit default swaps Other types of financial contracts that the Company accounts for as derivatives are: • To-be-announced (“TBA”) forward contracts, loan commitments, embedded derivatives and synthetic guaranteed investment contracts (“GICs”). For detailed information on these contracts and the related strategies, see Note 5 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . 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 $1,644 million and $867 million as of June 30, 2020 and December 31, 2019 , respectively, and total derivative liabilities of $684 million and $831 million as of June 30, 2020 and December 31, 2019 , respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position. Primary Underlying Risk /Instrument Type June 30, 2020 December 31, 2019 Fair Value Fair Value Gross Notional Assets Liabilities Gross Notional Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 3,227 $ 1,220 $ (105 ) $ 3,257 $ 628 $ (73 ) Interest Rate Forwards 202 36 (1 ) 205 4 (1 ) Foreign Currency Foreign Currency Forwards 2,155 73 (12 ) 1,461 22 (57 ) Currency/Interest Rate Foreign Currency Swaps 23,372 3,049 (59 ) 22,746 1,467 (302 ) Total Derivatives Designated as Hedge Accounting Instruments $ 28,956 $ 4,378 $ (177 ) $ 27,669 $ 2,121 $ (433 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 153,866 $ 22,286 $ (11,151 ) $ 141,162 $ 10,249 $ (4,861 ) Interest Rate Futures 17,326 6 (44 ) 17,095 4 (38 ) Interest Rate Options 14,518 1,813 (267 ) 16,496 339 (238 ) Interest Rate Forwards 2,745 28 0 2,218 18 (3 ) Foreign Currency Foreign Currency Forwards 30,785 308 (235 ) 26,604 208 (214 ) Foreign Currency Options 0 0 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 12,819 1,243 (337 ) 13,874 740 (345 ) Credit Credit Default Swaps 2,529 20 (17 ) 798 21 0 Equity Equity Futures 7,243 2 (84 ) 1,802 0 (3 ) Equity Options 45,519 494 (302 ) 32,657 679 (765 ) Total Return Swaps 24,798 184 (1,071 ) 18,218 6 (636 ) Other Other(1) 1,260 0 0 1,258 0 0 Synthetic GICs 82,325 1 0 80,009 1 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 395,733 $ 26,385 $ (13,508 ) $ 352,191 $ 12,265 $ (7,103 ) Total Derivatives(2)(3) $ 424,689 $ 30,763 $ (13,685 ) $ 379,860 $ 14,386 $ (7,536 ) __________ (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 $27,110 million and $14,035 million as of June 30, 2020 and December 31, 2019 , respectively, primarily included in “Future policy benefits.” (3) Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position. As of June 30, 2020 , the following amounts were recorded on the Unaudited Interim Consolidated Statements of Financial Position related to the carrying amount of the hedged assets (liabilities) and cumulative basis adjustments included in the carrying amount for fair value hedges. June 30, 2020 December 31, 2019 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) Carrying Amount of the Hedged Assets (Liabilities) Cumulative Amount of (in millions) Fixed maturities, available-for-sale, at fair value $ 397 $ 92 $ 389 $ 64 Commercial mortgage and other loans $ 22 $ 2 $ 23 $ 2 Policyholders’ account balances $ (1,721 ) $ (425 ) $ (1,376 ) $ (107 ) Future policy benefits $ (1,277 ) $ (443 ) $ (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 GICs, which are product standalone derivatives, do not qualify as hedging instruments under hedge accounting rules. Offsetting Assets and Liabilities The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2020 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) $ 30,611 $ (29,119 ) $ 1,492 $ (849 ) $ 643 Securities purchased under agreement to resell 2,355 0 2,355 (2,355 ) 0 Total assets $ 32,966 $ (29,119 ) $ 3,847 $ (3,204 ) $ 643 Offsetting of Financial Liabilities: Derivatives(1) $ 13,676 $ (13,001 ) $ 675 $ (40 ) $ 635 Securities sold under agreement to repurchase 10,488 0 10,488 (10,488 ) 0 Total liabilities $ 24,164 $ (13,001 ) $ 11,163 $ (10,528 ) $ 635 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 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 __________ (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. For information regarding the rights of offset associated with the derivative assets and liabilities in the table above, see “—Counterparty Credit Risk” below. For securities purchased under agreements to resell and securities sold under agreements to repurchase, the Company monitors the value of the securities and maintains collateral, as appropriate, to protect against credit exposure. Where the Company has entered into repurchase and resale agreements with the same counterparty, in the event of default, the Company would generally be permitted to exercise rights of offset. For additional information on the Company’s accounting policy for securities repurchase and resale agreements, see Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2019 . 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, or 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. Three Months Ended June 30, 2020 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ 1 $ (2 ) $ 0 $ 0 $ 6 $ (1 ) $ 0 Currency 0 0 0 0 0 2 0 Total gains (losses) on derivatives designated as hedge instruments 1 (2 ) 0 0 6 1 0 Gains (losses) on the hedged item: Interest Rate (1 ) 4 0 0 5 9 0 Currency 0 0 0 0 0 (2 ) 0 Total gains (losses) on hedged item (1 ) 4 0 0 5 7 0 Amortization for gains (losses) excluded from assessment of the effectiveness Currency 0 0 0 0 0 0 (3 ) Total Amortization for Gain (Loss) Excluded from Assessment of the Effectiveness 0 0 0 0 0 0 (3 ) Total gains (losses) on fair value hedges net of hedged item 0 2 0 0 11 8 (3 ) Cash flow hedges Interest Rate 10 0 0 0 0 0 (8 ) Currency 2 0 0 0 0 0 (10 ) Currency/Interest Rate 49 82 (99 ) 0 0 0 (669 ) Total gains (losses) on cash flow hedges 61 82 (99 ) 0 0 0 (687 ) 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 (232 ) 0 0 0 0 0 0 Currency (103 ) 0 0 0 0 0 0 Currency/Interest Rate (86 ) 0 0 0 0 0 0 Credit (1 ) 0 0 0 0 0 0 Equity (5,221 ) 0 0 0 0 0 0 Other 1 0 0 0 0 0 0 Embedded Derivatives 1,702 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (3,940 ) 0 0 0 0 0 0 Total $ (3,879 ) $ 84 $ (99 ) $ 0 $ 11 $ 8 $ (694 ) Six Months Ended June 30, 2020 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (29 ) $ (4 ) $ 0 $ 0 $ 330 $ 279 $ 0 Currency 2 0 0 0 0 2 0 Total gains (losses) on derivatives designated as hedge instruments (27 ) (4 ) 0 0 330 281 0 Gains (losses) on the hedged item: Interest Rate 29 9 0 0 (318 ) (270 ) 0 Currency (1 ) 1 0 0 0 (2 ) 0 Total gains (losses) on hedged item 28 10 0 0 (318 ) (272 ) 0 Amortization for gains (losses) excluded from assessment of the effectiveness Currency 0 0 0 0 0 0 (3 ) Total Amortization for Gain (Loss) Excluded from Assessment of the Effectiveness 0 0 0 0 0 0 (3 ) Total gains (losses) on fair value hedges net of hedged item 1 6 0 0 12 9 (3 ) Cash flow hedges Interest Rate 8 0 0 0 0 0 44 Currency 4 0 0 0 0 0 91 Currency/Interest Rate 67 160 193 0 0 0 1,531 Total gains (losses) on cash flow hedges 79 160 193 0 0 0 1,666 Net investment hedges Currency 0 0 0 0 0 0 10 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 10 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 8,992 0 0 0 0 0 0 Currency 230 0 (7 ) 0 0 0 0 Currency/Interest Rate 731 0 2 0 0 0 0 Credit (42 ) 0 0 0 0 0 0 Equity 216 0 0 0 0 0 0 Other 1 0 0 0 0 0 0 Embedded Derivatives (12,593 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (2,465 ) 0 (5 ) 0 0 0 0 Total $ (2,385 ) $ 166 $ 188 $ 0 $ 12 $ 9 $ 1,673 Three Months Ended June 30, 2019 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (9 ) $ (2 ) $ 0 $ 0 $ 101 $ 80 $ 0 Currency 2 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (7 ) (2 ) 0 0 101 80 0 Gains (losses) on the hedged item: Interest Rate 9 5 0 0 (98 ) (73 ) 0 Currency (1 ) 1 0 0 0 0 0 Total gains (losses) on hedged item 8 6 0 0 (98 ) (73 ) 0 Total gains (losses) on fair value hedges net of hedged item 1 4 0 0 3 7 0 Cash flow hedges Interest Rate 0 0 0 0 0 0 (1 ) Currency 1 0 0 0 0 0 14 Currency/Interest Rate 47 69 40 0 0 0 229 Total gains (losses) on cash flow hedges 48 69 40 0 0 0 242 Net investment hedges Currency 0 0 0 0 0 0 1 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 1 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 2,346 0 0 0 0 0 0 Currency 122 0 (5 ) 0 0 0 0 Currency/Interest Rate 20 0 0 0 0 0 0 Credit 36 0 0 0 0 0 0 Equity (617 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (2,368 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (461 ) 0 (5 ) 0 0 0 0 Total $ (412 ) $ 73 $ 35 $ 0 $ 3 $ 7 $ 243 Six Months Ended June 30, 2019 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (15 ) $ (4 ) $ 0 $ 0 $ 168 $ 131 $ 0 Currency 1 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (14 ) (4 ) 0 0 168 131 0 Gains (losses) on the hedged item: Interest Rate 11 11 0 0 (164 ) (119 ) 0 Currency 0 2 0 0 0 0 0 Total gains (losses) on hedged item 11 13 0 0 (164 ) (119 ) 0 Total gains (losses) on fair value hedges net of hedged item (3 ) 9 0 0 4 12 0 Cash flow hedges Interest Rate (1 ) 0 0 0 0 0 22 Currency 2 0 0 0 0 0 5 Currency/Interest Rate 40 137 (6 ) 0 0 0 170 Total gains (losses) on cash flow hedges 41 137 (6 ) 0 0 0 197 Net investment hedges Currency 0 0 0 0 0 0 2 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 2 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 3,734 0 0 0 0 0 0 Currency 84 0 0 0 0 0 0 Currency/Interest Rate 204 0 0 0 0 0 0 Credit 104 0 0 0 0 0 0 Equity (2,427 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (3,180 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (1,481 ) 0 0 0 0 0 0 Total $ (1,443 ) $ 146 $ (6 ) $ 0 $ 4 $ 12 $ 199 _________ (1) Net change in AOCI. Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in millions) Balance, December 31, 2019 $ 832 Amount recorded in AOCI Interest Rate 52 Currency 95 Currency/Interest Rate 1,951 Total amount recorded in AOCI 2,098 Amount reclassified from AOCI to income Interest Rate (8 ) Currency (4 ) Currency/Interest Rate (420 ) Total amount reclassified from AOCI to income (432 ) Balance, June 30, 2020 $ 2,498 The changes in fair value of cash flow hedges are deferred in AOCI and are included in “Net unrealized investment gains (losses)” in the Unaudited Interim Consolidated Statements of Comprehensive Income; these amounts are then reclassified to earnings when the hedged item affects earnings. Using June 30, 2020 values, it is estimated that a pre-tax gain of approximately $328 million is expected to be reclassified from AOCI to earnings during the subsequent twelve months ending June 30, 2021 . 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 $546 million and $536 million as of June 30, 2020 and December 31, 2019 , respectively. Credit Derivatives The following table provides a summary of the notional and fair value of written credit protection. The Company’s maximum amount at risk under these credit derivatives, assuming the value of the underlying referenced securities become worthless, is equal to the notional amounts. These credit derivatives have maturities of less than 1 year and less than 27 years for single name and index references, respectively. June 30, 2020 NAIC Rating Designation of Underlying Credit Obligation(1) NAIC 1 NAIC 2 NAIC 3 NAIC 4 NAIC 5 NAIC 6 Total Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value (in millions) Single name reference(2) $ 48 $ 0 $ 48 $ 0 $ 4 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 100 $ 0 Index reference(2) 50 1 0 0 0 0 1,940 13 0 0 0 0 1,990 14 Total $ 98 $ 1 $ 48 $ 0 $ 4 $ 0 $ 1,940 $ 13 $ 0 $ 0 $ 0 $ 0 $ 2,090 $ 14 December 31, 2019 NAIC Rating Designation of Underlying Credit Obligation(1) NAIC 1 NAIC 2 NAIC 3 NAIC 4 NAIC 5 NAIC 6 Total Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value (in millions) Single name reference(2) $ 36 $ 0 $ 60 $ 1 $ 4 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 100 $ 1 Index reference(2) 50 0 0 0 570 13 0 0 0 0 72 7 692 20 Total $ 86 $ 0 $ 60 $ 1 $ 574 $ 13 $ 0 $ 0 $ 0 $ 0 $ 72 $ 7 $ 792 $ 21 _________ (1) The NAIC rating designations are based on availability and the lowest ratings among Moody's Investors Service, Inc. ("Moody's"), Standard & Poor’s Rating Services (“S&P”) and Fitch Ratings Inc. (“Fitch”). If no rating is available from a rating agency, a NAIC 6 rating is used. (2) Single name credit default swaps may reference to the credit of corporate debt, sovereign debt, and structured finance. Index references NAIC designations are based on the lowest rated single name reference included in the index. In addition to writing credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. As of June 30, 2020 and December 31, 2019 , the Company had $440 million and $6 million of outstanding notional amounts and reported at fair value as a liability of $10 million and $ 0 million 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 over-the-counter (“OTC”) parties; (iii) obtaining collateral, such as cash and securities, when appropriate; and (iv) setting limits on single party credit exposures which are subject to periodic management review. Substantially all of the Company’s derivative agreements have zero thresholds which require daily full collateralization by the party in a liability position. In addition, certain of the Company’s derivative agreements contain credit-risk related contingent features; if the credit rating of one of the parties to the derivative agreement is to fall below a certain level, the party with positive fair value could request termination at the then fair value or demand immediate full collateralization from the party whose credit rating fell and is in a net liability position. As of June 30, 2020 , there were no net liability derivative positions with counterparties with credit risk-related contingent features. All derivatives have been appropriately collateralized by the Company or the counterparty in accordance with the terms of the derivative agreements. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES Fair Value Measurement —Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative fair value guidance establishes a framework for measuring fair value that includes a hierarchy used to classify the inputs used in measuring fair value. The level in the fair value hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement. The levels of the fair value hierarchy are as follows: Level 1—Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Level 2—Fair value is based on significant inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability through corroboration with observable market data. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, and other market observable inputs. Level 3—Fair value is based on at least one significant unobservable input for the asset or liability. The assets and liabilities in this category may require significant judgment or estimation in determining the fair value. For a discussion of Company’s valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 6 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Assets and Liabilities by Hierarchy Level —The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of June 30, 2020 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 $ 42,899 $ 122 $ $ 43,021 Obligations of U.S. states and their political subdivisions 0 12,394 4 12,398 Foreign government bonds 0 116,749 21 116,770 U.S. corporate public securities 0 106,181 436 106,617 U.S. corporate private securities(2) 0 36,305 1,854 38,159 Foreign corporate public securities 0 29,033 85 29,118 Foreign corporate private securities 0 25,794 2,529 28,323 Asset-backed securities(3) 0 13,246 690 13,936 Commercial mortgage-backed securities 0 16,262 0 16,262 Residential mortgage-backed securities 0 3,229 111 3,340 Subtotal 0 402,092 5,852 407,944 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 208 0 208 Obligations of U.S. states and their political subdivisions 0 229 0 229 Foreign government bonds 0 784 24 808 Corporate securities 0 13,566 624 14,190 Asset-backed securities(3) 0 1,673 99 1,772 Commercial mortgage-backed securities 0 1,921 0 1,921 Residential mortgage-backed securities 0 1,200 0 1,200 Equity securities 1,444 239 0 1,683 All other(4) 360 548 7 915 Subtotal 1,804 20,368 754 22,926 Fixed maturities, trading 0 3,697 236 3,933 Equity securities 5,249 1,030 594 6,873 Commercial mortgage and other loans 0 682 0 682 Other invested assets(5) 69 30,693 658 (29,119 ) 2,301 Short-term investments 2,685 6,247 44 8,976 Cash equivalents 4,653 5,439 1 10,093 Other assets 0 0 377 377 Separate account assets(6)(7) 47,429 228,772 1,684 277,885 Total assets $ 61,889 $ 699,020 $ 10,200 $ (29,119 ) $ 741,990 Future policy benefits(8) $ 0 $ 0 $ 26,439 $ $ 26,439 Policyholders’ account balances 0 0 1,441 1,441 Other liabilities 130 13,163 0 (13,001 ) 292 Notes issued by consolidated VIEs 0 0 741 741 Total liabilities $ 130 $ 13,163 $ 28,621 $ (13,001 ) $ 28,913 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 __________ (1) “Netting” amounts represent cash collateral of $16,118 million and $6,814 million as of June 30, 2020 and December 31, 2019 , respectively. (2) Excludes notes with fair value of $6,466 million (carrying amount of $6,466 million ) and $4,757 million (carrying amount of $4,751 million ) as of June 30, 2020 and December 31, 2019 , respectively, which have been offset with the associated payables under a netting agreement. (3) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (4) All other represents cash equivalents and short-term investments. (5) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. As of June 30, 2020 and December 31, 2019 , the fair values of such investments were $3,979 million and $4,213 million respectively. (6) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and other invested assets. As of June 30, 2020 and December 31, 2019 , the fair value of such investments was $23,117 million and $23,557 million , respectively. (7) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (8) As of June 30, 2020 , the net embedded derivative liability position of $26.4 billion includes $0.3 billion of embedded derivatives in an asset position and $26.7 billion of embedded derivatives in a liability position. 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. Quantitative Information Regarding Internally-Priced Level 3 Assets and Liabilities —The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of June 30, 2020 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) $ 3,382 Discounted cash flow(4) Discount rate 0.56% 30% 5.31% Decrease Market comparables EBITDA multiples(3) 6.5X 15.0X 9.3X Increase Liquidation Liquidation value 14.98% 92.79% 67.50% Increase Equity securities $ 185 Discounted cash flow(4) Discount rate 10% 30% Decrease Market comparables EBITDA multiples(3) 1X 9.0X 1.7X Increase Net Asset Value Share price $1 $1,414 $450 Increase Separate account assets-commercial mortgage loans(5) $ 803 Discounted cash flow Spread 1.83% 3.18% 2.05% Decrease Liabilities: Future policy benefits(6) $ 26,439 Discounted cash flow Lapse rate(8) 1% 20% Decrease Spread over LIBOR(9) 0.17% 1.69% Decrease Utilization rate(10) 39% 96% Increase Withdrawal rate See table footnote (11) below. Mortality rate(12) 0% 15% Decrease Equity volatility curve 18% 29% Increase Policyholders’ account balances(7) $ 1,441 Discounted cash flow Lapse rate(8) 1% 42% Decrease Spread over LIBOR(9) 0.17% 1.69% Decrease Mortality rate(12) 0% 24% Decrease Equity volatility curve 6% 38% Increase 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) 0.10% 1.23% Decrease Mortality rate(12) 0% 24% Decrease Equity volatility curve 6% 25% Increase __________ (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities available-for-sale, 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) 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 Unaudited Interim Consolidated Statements of Financial Position. As a result, changes in value associated with these investments are not reflected in the Company’s Unaudited Interim Consolidated Statements of Operations. (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 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 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 June 30, 2020 and December 31, 2019 , the minimum withdrawal rate assumption is 76% and 78% respectively. As of June 30, 2020 and December 31, 2019 , 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. Interrelationships Between Unobservable Inputs — In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another or multiple inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows: Corporate Securities— The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term, and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value. Asset-Backed Securities— Interrelationships may exist between the prepayment rate, the default rate and/or loss severity, depending on specific market conditions. In stronger economic cycles, prepayment rates are generally driven by overall market interest rates and accompanied by lower default rates and loss severity. During weaker economic cycles, prepayments may decline, as default rates and loss severity increase. Additionally, the impact of these factors on average life varies with the structure and subordination. Generally, a change in the assumption used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. Future Policy Benefits— The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent that more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money. Changes in Level 3 Assets and Liabilities —The following tables describe changes in fair values of Level 3 assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. 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. Three Months Ended June 30, 2020 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 $ 115 $ 0 $ 7 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 122 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 21 0 0 0 0 0 0 1 (1 ) 21 (1 ) Corporate securities(3) 4,496 318 125 (5 ) 0 (95 ) 0 196 (131 ) 4,904 316 Structured securities(4) 948 4 73 0 0 (197 ) 0 80 (107 ) 801 11 Assets supporting experience-rated contractholder liabilities: Foreign government 24 0 0 0 0 0 0 0 0 24 0 Corporate securities(3) 603 19 0 1 0 (20 ) 0 29 (8 ) 624 17 Structured securities(4) 177 2 39 0 0 (6 ) 0 0 (113 ) 99 2 Equity securities 0 0 0 0 0 0 0 0 0 0 0 All other activity 7 0 0 0 0 0 0 0 0 7 0 Other assets: Fixed maturities, trading 249 (1 ) 4 (26 ) 0 0 10 0 0 236 (1 ) Equity securities 594 (14 ) 19 (5 ) 0 0 0 0 0 594 (16 ) Other invested assets 581 (4 ) 54 0 4 (3 ) 26 0 0 658 3 Short-term investments 53 0 1 0 0 0 (10 ) 0 0 44 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 382 (24 ) 19 0 0 0 0 0 0 377 (22 ) Separate account assets(5) 1,528 114 48 (8 ) 0 (15 ) 0 26 (9 ) 1,684 112 Liabilities: Future policy benefits (27,935 ) 1,820 0 0 (322 ) 0 (2 ) 0 0 (26,439 ) 1,565 Policyholders’ account balances(6) (1,206 ) (134 ) 0 0 (101 ) 0 0 0 0 (1,441 ) (127 ) Other liabilities (47 ) 47 0 0 0 0 0 0 0 0 47 Notes issued by consolidated VIEs (799 ) 58 0 0 0 0 0 0 0 (741 ) 59 Three Months Ended June 30, 2020 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 (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss)(7) (in millions) Fixed maturities, available-for-sale $ (88 ) $ 0 $ 0 $ 407 $ 3 $ (80 ) $ 0 $ 0 406 Assets supporting experience-rated contractholder liabilities 0 18 0 0 3 0 19 0 0 Other assets: Fixed maturities, trading 0 (2 ) 0 0 1 0 (1 ) 0 0 Equity securities 0 (14 ) 0 0 0 0 (16 ) 0 0 Other invested assets 0 (4 ) 0 0 0 7 (4 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 Other assets (24 ) 0 0 0 0 (22 ) 0 0 0 Separate account assets(5) 0 0 114 0 0 0 0 112 0 Liabilities: Future policy benefits 1,820 0 0 0 0 1,565 0 0 0 Policyholders’ account balances (134 ) 0 0 0 0 (127 ) 0 0 0 Other liabilities 0 47 0 0 0 0 47 0 0 Notes issued by consolidated VIEs (1 ) 59 0 0 0 0 59 0 0 Six Months Ended June 30, 2020 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 $ 105 $ 0 $ 17 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 122 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 22 (1 ) 0 0 0 0 0 1 (1 ) 21 (1 ) Corporate securities(3) 3,236 (182 ) 419 (118 ) 0 (330 ) 1 2,023 (145 ) 4,904 (175 ) Structured securities(4) 948 (3 ) 388 (17 ) 0 (297 ) 155 92 (465 ) 801 (4 ) Assets supporting experience-rated contractholder liabilities: Foreign government 24 0 0 0 0 0 0 0 0 24 0 Corporate securities(3) 637 (27 ) 4 (9 ) 0 (65 ) 0 92 (8 ) 624 (27 ) Structured securities(4) 69 (2 ) 155 0 0 (10 ) 0 0 (113 ) 99 2 Equity securities 0 0 0 0 0 0 0 0 0 0 0 All other activity 0 0 7 0 0 0 0 0 0 7 0 Other assets: Fixed maturities, trading 287 (16 ) 22 (32 ) 0 0 8 15 (48 ) 236 (16 ) Equity securities 633 (58 ) 28 (10 ) 0 0 1 0 0 594 (60 ) Other invested assets 567 4 81 0 4 (4 ) 6 0 0 658 5 Short-term investments 155 2 44 0 0 (110 ) (47 ) 0 0 44 0 Cash equivalents 131 0 0 0 0 0 (130 ) 0 0 1 0 Other assets 113 228 36 0 0 0 0 0 0 377 229 Separate account assets(5) 1,717 (26 ) 104 (21 ) 0 (33 ) 0 33 (90 ) 1,684 (17 ) Liabilities: Future policy benefits (12,831 ) (12,969 ) 0 0 (641 ) 0 2 0 0 (26,439 ) (13,183 ) Policyholders’ account balances(6) (1,316 ) 72 0 0 (197 ) 0 0 0 0 (1,441 ) 63 Other liabilities (105 ) 105 0 0 0 0 0 0 0 0 104 Notes issued by consolidated VIEs (800 ) 59 0 0 0 0 0 0 0 (741 ) 59 Six Months Ended June 30, 2020 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 (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss)(7) (in millions) Fixed maturities, available-for-sale $ (115 ) $ 0 $ 0 $ (76 ) $ 5 $ (106 ) $ 0 $ 0 $ (74 ) Assets supporting experience-rated contractholder liabilities 0 (29 ) 0 0 0 0 (25 ) 0 0 Other assets: Fixed maturities, trading 0 (17 ) 0 0 1 0 (16 ) 0 0 Equity securities 0 (58 ) 0 0 0 0 (60 ) 0 0 Other invested assets 0 4 0 0 0 1 4 0 0 Short-term investments 2 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 Other assets 228 0 0 0 0 229 0 0 0 Separate account assets(5) 0 0 (26 ) 0 0 0 0 (17 ) 0 Liabilities: Future policy benefits (12,969 ) 0 0 0 0 (13,183 ) 0 0 0 Policyholders’ account balances 72 0 0 0 0 63 0 0 0 Other liabilities 0 105 0 0 0 0 104 0 0 Notes issued by consolidated VIEs 0 59 0 0 0 0 59 0 0 Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 88 $ 0 $ 6 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 138 (1 ) 0 0 0 0 (2 ) 0 (111 ) 24 0 Corporate securities(3) 2,757 6 288 (17 ) 0 (225 ) 1 19 (37 ) 2,792 (5 ) Structured securities(4) 1,915 8 113 (47 ) 0 (101 ) 9 17 (1,053 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 29 0 0 0 0 (3 ) 0 0 0 26 0 Corporate securities(3) 592 5 14 0 0 (67 ) 0 10 (1 ) 553 11 Structured securities(4) 60 1 0 0 0 (4 ) 0 0 0 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 0 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 240 (7 ) 36 (13 ) 0 0 1 39 0 296 (7 ) Equity securities 674 16 23 (13 ) 0 (59 ) 6 1 (24 ) 624 15 Other invested assets 373 0 61 0 0 0 2 0 0 436 0 Short-term investments 168 0 273 0 0 (153 ) 0 0 0 288 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 48 42 8 0 0 0 0 0 0 98 41 Separate account assets(5) 1,635 44 139 (6 ) 0 (27 ) 0 0 (77 ) 1,708 41 Liabilities: Future policy benefits (10,025 ) (2,400 ) 0 0 (298 ) 0 0 0 0 (12,723 ) (2,503 ) Policyholders’ account balances(6) (146 ) (828 ) 0 0 (73 ) 0 0 0 0 (1,047 ) (821 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (817 ) 1 0 0 0 0 0 0 0 (816 ) 1 Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (11 ) $ 0 $ 0 $ 18 $ 6 $ (5 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 6 0 0 1 0 12 0 Other assets: Fixed maturities, trading 0 (8 ) 0 0 1 0 (7 ) 0 Equity securities 0 16 0 0 0 0 15 0 Other invested assets 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 42 0 0 0 0 41 0 0 Separate account assets(5) 0 0 43 0 1 0 0 41 Liabilities: Future policy benefits (2,400 ) 0 0 0 0 (2,503 ) 0 0 Policyholders’ account balances (828 ) 0 0 0 0 (821 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs 1 0 0 0 0 1 0 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 81 $ 0 $ 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 5 0 0 0 0 (1 ) 0 0 0 4 0 Foreign government 125 2 0 0 0 0 (1 ) 9 (111 ) 24 0 Corporate securities(3) 2,685 10 607 (29 ) 0 (604 ) (1 ) 183 (59 ) 2,792 (26 ) Structured securities(4) 1,339 25 431 (47 ) 0 (332 ) 7 750 (1,312 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 225 0 0 0 0 (3 ) (196 ) 0 0 26 0 Corporate securities(3) 444 10 41 0 0 (143 ) 196 10 (5 ) 553 6 Structured securities(4) 149 1 6 0 0 (25 ) 0 0 (74 ) 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 1 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 206 (11 ) 74 (14 ) 0 0 3 39 (1 ) 296 (7 ) Equity securities 671 24 46 (24 ) 0 (74 ) 4 1 (24 ) 624 22 Other invested assets 263 (1 ) 218 0 0 (42 ) (2 ) 0 0 436 (1 ) Short-term investments 89 0 426 0 0 (227 ) 0 0 0 288 0 Cash equivalents 77 0 1 0 0 (77 ) 0 0 0 1 0 Other assets 25 56 17 0 0 0 0 0 0 98 55 Separate account assets(5) 1,534 125 228 (17 ) 0 (50 ) 0 0 (112 ) 1,708 115 Liabilities: Future policy benefits (8,926 ) (3,210 ) 0 0 (588 ) 0 1 0 0 (12,723 ) (3,364 ) Policyholders’ account balances(6) (56 ) (879 ) 0 0 (109 ) 0 (3 ) 0 0 (1,047 ) (872 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (595 ) (1 ) 0 0 (858 ) 638 0 0 0 (816 ) (1 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ 40 $ 10 $ (26 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 9 0 0 3 0 8 0 Other assets: Fixed maturities, trading 0 (12 ) 0 0 1 0 (7 ) 0 Equity securities 0 24 0 0 0 0 22 0 Other invested assets (1 ) 0 0 0 0 (1 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 56 0 0 0 0 55 0 0 Separate account assets(5) 0 0 123 0 2 0 0 115 Liabilities: Future policy benefits (3,210 ) 0 0 0 0 (3,364 ) 0 0 Policyholders’ account balances (879 ) 0 0 0 0 (872 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (1 ) 0 0 0 0 (1 ) 0 0 __________ (1) “Other,” for the periods ended June 30, 2020 and June 30, 2019 , primarily represent deconsolidation of VIE, reclassifications of certain assets between reporting categories and foreign currency translation. (2) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (3) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (4) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (5) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Stat |
Closed Block
Closed Block | 6 Months Ended |
Jun. 30, 2020 | |
Closed Block Disclosure [Abstract] | |
Closed Block | CLOSED BLOCK On December 18, 2001, the date of demutualization, The Prudential Insurance Company of America (“PICA”) established a closed block for certain in-force participating insurance policies and annuity products, along with corresponding assets used for the payment of benefits and policyholders’ dividends on these products, (collectively the “Closed Block”), and ceased offering these participating products. The recorded assets and liabilities were allocated to the Closed Block at their historical carrying amounts. The Closed Block forms the principal component of the Closed Block division. For additional information on the Closed Block, see Note 15 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2019 . As of June 30, 2020 and December 31, 2019 , the Company recognized a policyholder dividend obligation of $2,450 million and $2,816 million , respectively, to Closed Block policyholders for the excess of actual cumulative earnings over expected cumulative earnings. Additionally, accumulated net unrealized investment gains that have arisen subsequent to the establishment of the Closed Block have been reflected as a policyholder dividend obligation of $5,305 million and $3,332 million at June 30, 2020 and December 31, 2019 , respectively, to be paid to Closed Block policyholders unless offset by future experience, with a corresponding amount reported in AOCI. Closed Block liabilities and assets designated to the Closed Block, as well as maximum future earnings to be recognized from these liabilities and assets, are as follows: June 30, December 31, (in millions) Closed Block liabilities Future policy benefits $ 47,142 $ 47,613 Policyholders’ dividends payable 728 717 Policyholders’ dividend obligation 7,755 6,149 Policyholders’ account balances 4,914 4,973 Other Closed Block liabilities 3,322 4,049 Total Closed Block liabilities 63,861 63,501 Closed Block assets Fixed maturities, available-for-sale, at fair value 42,058 41,146 Fixed maturities, trading, at fair value 239 256 Equity securities, at fair value 2,047 2,245 Commercial mortgage and other loans 8,388 8,629 Policy loans 4,158 4,264 Other invested assets 3,259 3,333 Short-term investments 95 227 Total investments 60,244 60,100 Cash and cash equivalents 462 191 Accrued investment income 436 456 Other Closed Block assets 86 93 Total Closed Block assets 61,228 60,840 Excess of reported Closed Block liabilities over Closed Block assets 2,633 2,661 Portion of above representing accumulated other comprehensive income (loss): Net unrealized investment gains (losses) 5,250 3,280 Allocated to policyholder dividend obligation (5,305 ) (3,332 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,578 $ 2,609 Information regarding the policyholder dividend obligation is as follows: Six Months Ended (in millions) Balance, December 31, 2019 $ 6,149 Cumulative effect adjustment from the adoption of ASU 2016-13(1) (13 ) Impact from earnings allocable to policyholder dividend obligation (353 ) Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 1,972 Balance, June 30, 2020 $ 7,755 __________ (1) See Note 2 for more information. Closed Block revenues and benefits and expenses are as follows for the periods indicated: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Revenues Premiums $ 519 $ 581 $ 999 $ 1,108 Net investment income 515 576 1,063 1,141 Realized investment gains (losses), net (8 ) 49 248 105 Other income (loss) 318 97 (285 ) 325 Total Closed Block revenues 1,344 1,303 2,025 2,679 Benefits and Expenses Policyholders’ benefits 725 780 1,372 1,489 Interest credited to policyholders’ account balances 32 32 64 64 Dividends to policyholders 517 415 423 968 General and administrative expenses 82 89 167 178 Total Closed Block benefits and expenses 1,356 1,316 2,026 2,699 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes (12 ) (13 ) (1 ) (20 ) Income tax expense (benefit) (28 ) (29 ) (34 ) (53 ) Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 16 $ 16 $ 33 $ 33 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company uses a full year projected effective tax rate approach to calculate year-to-date taxes. In addition, certain items impacting total income tax expense are recorded in the periods in which they occur. The projected effective tax rate is the ratio of projected “Total income tax expense” divided by projected “Income before income taxes and equity in earnings of operating joint ventures.” Taxes attributable to operating joint ventures are recorded within “Equity in earnings of operating joint ventures, net of taxes.” The interim period tax expense (or benefit) is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year. The Company’s income tax provision, on a consolidated basis, amounted to an income tax expense of $57 million , or (2.1)% of income (loss) before income taxes and equity in earnings of operating joint ventures, in the first six months of 2020, compared to an income tax expense of $394 million , or 19.5% , in the first six months of 2019. The Company’s current and prior effective tax rates differ from the U.S. statutory rate of 21% primarily due to non-taxable investment income, tax credits and foreign earnings taxed at higher rates than the U.S. statutory rate. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted into law. One provision of the CARES Act amends the Tax Cuts and Jobs Act (“TCJA”) and allows companies with net operating losses (“NOLs”) originating in 2018, 2019 or 2020 to carry back those losses for five years. The Company has incorporated into the full year projected effective tax rate an income tax benefit of $512 million that would result from carrying the estimated 2020 NOL back to tax years that have a 35% tax rate. The projected tax benefit related to the NOL carryback was partially offset by an incremental Global Intangible Low-Taxed Income (“GILTI”) tax expense of $140 million driven by projected overall domestic losses (“ODLs”) which resulted in a reduced GILTI foreign tax credit. These amounts are estimates and will change if the amount of, and sources of, 2020 net taxable income are different from forecast. The inclusion of these two amounts in the full year projected effective tax rate results in a projected negative effective tax rate for the year, which when applied to the year-to-date pre-tax loss resulted in a $781 million increase to our income tax expense for the first six months of 2020. The first six months of 2020 also include a $47 million reduction in income tax expense recorded as a discrete item from the carryback of 2018 NOL and related ODL. On July 20, 2020, the U.S. Treasury and the Internal Revenue Service issued Final Regulations which will allow an annual election to exclude from the U.S. tax return certain GILTI amounts when the taxes paid by a foreign affiliate exceeds 18.9% ( 90% of U.S. statutory rate of 21% ) of the GILTI amount for that foreign affiliate (the “high-tax exception”). These regulations are effective for the 2021 taxable year with an election to apply to any taxable year beginning after 2017. In many of the countries in which we operate, including Japan, there are differences between local tax rules used to determine the tax base and the U.S. tax principles used to determine GILTI. Also, our Japan affiliates have a different tax year than the U.S. calendar tax year used to determine GILTI. Therefore, while many of the countries, including Japan, have a statutory tax rate above the 18.9% threshold, separate affiliates may not meet the 18.9% threshold each year and, as such, may not qualify for this exclusion. The Company is in the process of reviewing and estimating the impacts of the regulations and will record any such impacts in the third quarter of 2020. The Treasury Department and the IRS also issued Proposed Regulations on July 20th which would require that, if a high-tax exception election is made with respect to GILTI in any year, an election having the same effect must also be made with regard to income taxed under Subpart F of the Tax Code. Such an election under Subpart F of the Tax Code would apply to the Full Inclusion election made by the Company for its insurance operations in Brazil, thereby increasing the tax rate applied to our Brazil insurance operations. The Proposed Regulations will be effective for taxable years beginning after they are issued in final form. |
Short-Term and Long-Term Debt
Short-Term and Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Debt | SHORT-TERM AND LONG-TERM DEBT Short-term Debt The table below presents the Company’s short-term debt as of the dates indicated: June 30, 2020 December 31, 2019 ($ in millions) Commercial paper: Prudential Financial $ 25 $ 25 Prudential Funding, LLC 475 524 Subtotal commercial paper 500 549 Current portion of long-term debt: Senior Notes 528 1,179 Mortgage Debt 95 192 Surplus notes subject to set-off arrangements (1) 250 0 Subtotal current portion of long-term debt 873 1,371 Other(2) 7 13 Subtotal 1,380 1,933 Less: assets under set-off arrangements(1) 250 0 Total short-term debt(3) $ 1,130 $ 1,933 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 240 $ 224 Daily average commercial paper outstanding for the quarter ended $ 1,869 $ 1,702 Weighted average maturity of outstanding commercial paper, in days 14 6 Weighted average interest rate on outstanding commercial paper 0.13 % 1.61 % _________ (1) The surplus notes have corresponding assets where rights to set-off exist, thereby reducing the amount of surplus notes. (2) Includes $7 million drawn on a revolving line of credit held by a subsidiary at June 30, 2020. (3) Includes Prudential Financial debt of $553 million and $1,204 million at June 30, 2020 and December 31, 2019 , respectively. Prudential Financial and certain subsidiaries have access to external sources of liquidity, including membership in the Federal Home Loan Banks, commercial paper programs and contingent financing facilities in the form of a put option agreement and facility agreement. The Company also maintains syndicated, unsecured committed credit facilities as an alternative source of liquidity. At June 30, 2020 , no amounts were drawn on these credit facilities. For additional information on these sources of liquidity, see Note 17 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Federal Home Loan Bank of New York (“FHLBNY”) In the first quarter of 2020, PICA issued $3.6 billion in funding agreements under the FHLBNY facility. As of June 30, 2020, $3.6 billion of funding agreements remain outstanding under this facility with maturities ranging from five months to seven years and rates from 0.430% to 1.925% . These funding agreements are reflected as “Policyholders’ account balances” on the Consolidated Statements of Financial Position and as such are not included in the foregoing table. For additional information on this facility, see Note 17 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Facility Agreement for Senior Debt Issuance In May 2020, Prudential Financial entered into a ten-year facility 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/or interest strips of U.S. Treasury securities. The facility agreement provides Prudential Financial the right to issue and sell to the trust from time to time up to $1.5 billion of 2.850% senior notes due May 15, 2030 and receive in exchange a corresponding amount of the U.S. Treasury securities held by the trust. In return, the Company agreed to pay a semi-annual facility fee to the trust at a rate of 2.175% per annum applied to the maximum amount of senior notes that the Company could issue and sell to the trust. The facility agreement with the trust provides Prudential Financial with a source of liquid assets in exchange for notes and is similar to the Company’s existing put option agreement in respect of $1.5 billion of senior notes that expires in 2023. The right to issue senior notes described above will be exercised automatically in full upon the Company’s failure to make certain payments to the trust, such as paying the facility fee 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 this issuance right if its consolidated stockholders’ equity, calculated in accordance with U.S. GAAP but excluding AOCI, falls below $9.0 billion , subject to adjustment in certain cases. Prior to any involuntary exercise of the issuance right, the Company has the right to repurchase any of its senior notes then held by the trust in exchange for U.S. Treasury securities. Finally, Prudential Financial may redeem any outstanding senior notes, in whole or in part, prior to February 15, 2030, at a redemption price equal to the greater of par or a make-whole price, or thereafter, redeem the senior notes, in whole or in part, at par. Long-term Debt The table below presents the Company’s long-term debt as of the dates indicated: June 30, 2020 December 31, 2019 (in millions) Fixed-rate obligations: Surplus notes $ 343 $ 342 Surplus notes subject to set-off arrangements(1) 8,884 7,484 Senior notes 11,575 10,084 Mortgage debt(2) 100 104 Floating-rate obligations: Line of credit 300 300 Surplus notes subject to set-off arrangements(1) 2,330 2,265 Mortgage debt(3) 264 241 Junior subordinated notes(4) 7,580 7,575 Subtotal 31,376 28,395 Less: assets under set-off arrangements(1) 11,214 9,749 Total long-term debt(5) $ 20,162 $ 18,646 __________ (1) The surplus notes have corresponding assets where rights to set-off exist, thereby reducing the amount of surplus notes included in long-term debt. (2) Includes $40 million and $43 million of debt denominated in foreign currency at June 30, 2020 and December 31, 2019 , respectively. (3) Includes $50 million and $53 million of debt denominated in foreign currency at June 30, 2020 and December 31, 2019 , respectively. (4) Includes Prudential Financial debt of $7,522 million and $7,518 million at June 30, 2020 and December 31, 2019, respectively. Also includes subsidiary debt of $58 million and $57 million denominated in foreign currency at June 30, 2020 and December 31, 2019, respectively. (5) Includes Prudential Financial debt of $18,925 million and $17,430 million at June 30, 2020 and December 31, 2019 , respectively. At June 30, 2020 and December 31, 2019 , the Company was in compliance with all debt covenants related to the borrowings in the table above. Surplus Notes. In March 2020, Prudential Legacy Insurance Company of New Jersey issued $800 million of surplus notes under its $4 billion reserve financing facility. As of June 30, 2020, an aggregate of $900 million of surplus notes was outstanding under the facility and no credit-linked note payments have been required. For additional information on this facility, see Note 17 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . In June 2020, the Company established a new $1.2 billion captive financing facility to finance non-economic reserves required under Guideline AXXX. Similar to the Company’s other captive financing facilities, a captive reinsurance subsidiary may issue 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 Arizona Reinsurance Universal Company issued $700 million of surplus notes under this facility in June 2020. As of June 30, 2020, an aggregate of $700 million of surplus notes was outstanding under the facility and no credit-linked note payments have been required. Senior Notes. As of June 30, 2020, the outstanding balance of the Company’s senior notes was $12.1 billion , an increase of $0.8 billion from December 31, 2019 . The increase is due to the issuance of $1.5 billion of medium-term notes in March 2020: $500 million with an interest rate of 1.5% maturing in March 2026, $500 million with an interest rate of 2.1% maturing in March 2030, and $500 million with an interest rate of 3.0% maturing in March 2040, offset by $651 million of debt maturities in June 2020. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Pension and Other Postretirement Plans The Company has funded and non-funded non-contributory defined benefit pension plans (“Pension Benefits”), which cover substantially all of its employees. For some employees, benefits are based on final average earnings and length of service, while benefits for other employees are based on an account balance that takes into consideration age, service and earnings during their career. The Company provides certain health care and life insurance benefits for its retired employees, their beneficiaries and covered dependents (“Other Postretirement Benefits”). The health care plan is contributory; the life insurance plan is non-contributory. Substantially all of the Company’s U.S. employees may become eligible to receive Other Postretirement Benefits if they retire after age 55 with at least 10 years of service or under certain circumstances after age 50 with at least 20 years of continuous service. Net periodic (benefit) cost included in “General and administrative expenses” includes the following components: Three Months Ended June 30, Pension Benefits Other Postretirement Benefits 2020 2019 2020 2019 (in millions) Components of net periodic (benefit) cost: Service cost $ 81 $ 72 $ 6 $ 5 Interest cost 107 123 16 20 Expected return on plan assets (202 ) (204 ) (25 ) (23 ) Amortization of prior service cost (1 ) (1 ) 1 1 Amortization of actuarial (gain) loss, net 66 54 4 6 Settlements 4 48 0 0 Special termination benefits(1)(2) 0 1 0 0 Net periodic (benefit) cost $ 55 $ 93 $ 2 $ 9 Six Months Ended June 30, Pension Benefits Other Postretirement Benefits 2020 2019 2020 2019 (in millions) Components of net periodic (benefit) cost: Service cost $ 161 $ 145 $ 12 $ 11 Interest cost 215 246 32 39 Expected return on plan assets (403 ) (408 ) (50 ) (47 ) Amortization of prior service cost (2 ) (2 ) 3 2 Amortization of actuarial (gain) loss, net 131 108 8 12 Settlements 4 48 0 0 Special termination benefits(1)(2) 2 1 0 0 Net periodic (benefit) cost $ 108 $ 138 $ 5 $ 17 __________ (1) For 2020 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 or participation in the Voluntary Separation Program that was offered to eligible U.S.-based employees in 2019. (2) For 2019 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. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Equity | EQUITY The changes in the number of shares of Common Stock issued, held in treasury and outstanding, are as follows for the periods indicated: Common Stock Issued Held In Treasury Outstanding (in millions) Balance, December 31, 2019 666.3 267.5 398.8 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 6.7 (6.7 ) Stock-based compensation programs(1) 0.0 (2.5 ) 2.5 Balance, June 30, 2020 666.3 271.7 394.6 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. In December 2019 , Prudential Financial’s Board of Directors (the “Board”) authorized the Company to repurchase at management’s discretion up to $2.0 billion of its outstanding Common Stock during the period from January 1, 2020 through December 31, 2020 . As of June 30, 2020 , 6.7 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $500 million . The Company temporarily suspended Common Stock repurchases under the existing repurchase authorization beginning April 1, 2020; however, the Company continues to evaluate the resumption of share repurchases under the existing Board authorization. The timing and amount of share repurchases are determined by management based upon market conditions and other considerations, and repurchases may be effected in the open market, through derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Securities Exchange Act of 1934 (the “Exchange Act”). Numerous factors could affect the timing and amount of any future repurchases under the share repurchase authorization, including increased capital needs of the Company due to changes in regulatory capital requirements, opportunities for growth and acquisitions, and the effect of adverse market conditions on the segments. Dividends declared per share of Common Stock are as follows for the periods indicated: Three Months Ended Six Months Ended 2020 2019 2020 2019 Dividends declared per share of Common Stock $ 1.10 $ 1.00 $ 2.20 $ 2.00 Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Unaudited Interim Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2020 and 2019 , 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, 2019 $ (536 ) $ 28,112 $ (3,537 ) $ 24,039 Change in OCI before reclassifications (213 ) 9,449 4 9,240 Amounts reclassified from AOCI 5 (702 ) 140 (557 ) Income tax benefit (expense) 28 (1,881 ) (32 ) (1,885 ) Balance, June 30, 2020 $ (716 ) $ 34,978 $ (3,425 ) $ 30,837 Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) Total Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2018 $ (564 ) $ 14,745 $ (3,275 ) $ 10,906 Change in OCI before reclassifications 98 17,296 (39 ) 17,355 Amounts reclassified from AOCI 5 (501 ) 120 (376 ) Income tax benefit (expense) 8 (3,899 ) (19 ) (3,910 ) Cumulative effect of adoption of ASU 2017-12 0 7 0 7 Balance, June 30, 2019 $ (453 ) $ 27,648 $ (3,213 ) $ 23,982 __________ (1) Includes cash flow hedges of $2,498 million and $832 million as of June 30, 2020 and December 31, 2019 , respectively, and $1,017 million and $811 million as of June 30, 2019 and December 31, 2018 , respectively, and fair value hedges of $(3) million and $0 million as of June 30, 2020 and December 31, 2019 , respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended Affected line item in Consolidated Statements of Operations 2020 2019 2020 2019 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustments $ (2 ) $ 0 $ (5 ) $ (5 ) Realized investment gains (losses), net Foreign currency translation adjustments 0 0 0 0 Other income (loss) Total foreign currency translation adjustment (2 ) 0 (5 ) (5 ) Net unrealized investment gains (losses): Cash flow hedges—Interest rate 9 0 8 (1 ) (3) Cash flow hedges—Currency 3 1 4 2 (3) Cash flow hedges—Currency/Interest rate 32 156 420 171 (3) Net unrealized investment gains (losses) on available-for-sale securities 112 69 270 329 Total net unrealized investment gains (losses) 156 226 702 501 (4) Amortization of defined benefit pension items: Prior service cost 0 0 (1 ) 0 (5) Actuarial gain (loss) (70 ) (60 ) (139 ) (120 ) (5) Total amortization of defined benefit pension items (70 ) (60 ) (140 ) (120 ) Total reclassifications for the period $ 84 $ 166 $ 557 $ 376 __________ (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 5 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ dividends. (5) See Note 10 for information on employee benefit plans. Net Unrealized Investment Gains (Losses) Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income (loss)” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Available-for-sale Fixed Maturity Securities on which an allowance for credit losses has been recognized Net Unrealized DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2019(1) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net investment gains (losses) on investments arising during the period 34 (7 ) 27 Reclassification adjustment for (gains) losses included in net income 13 (3 ) 10 Increase (Decrease) due to non-credit related losses recognized in AOCI during the period (87 ) 19 (68 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 2 0 2 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables 0 0 0 Impact of net unrealized investment (gains) losses on policyholders’ dividends (5 ) 1 (4 ) Balance, June 30, 2020 $ (40 ) $ 2 $ 0 $ (5 ) $ 10 $ (33 ) __________ (1) Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020. All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments(1) DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2019(2) $ 45,339 $ (1,585 ) $ (2,909 ) $ (3,366 ) $ (9,367 ) $ 28,112 Net investment gains (losses) on investments arising during the period 12,195 (2,599 ) 9,596 Reclassification adjustment for (gains) losses included in net income (715 ) 152 (563 ) Reclassification due to allowance for credit losses recorded during the period 87 (19 ) 68 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 226 (40 ) 186 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables (1,036 ) 202 (834 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (1,967 ) 413 (1,554 ) Balance, June 30, 2020 $ 56,906 $ (1,359 ) $ (3,945 ) $ (5,333 ) $ (11,258 ) $ 35,011 __________ (1) Includes cash flow and fair value hedges. See Note 5 for information on cash flow and fair value hedges. (2) Includes net unrealized gains (losses) for which an OTTI loss had been previously recognized. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the periods indicated is as follows: Three Months Ended June 30, 2020 2019 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) $ (2,405 ) $ 738 Less: Income (loss) attributable to noncontrolling interests 4 30 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 6 8 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ (2,415 ) 394.6 $ (6.12 ) $ 700 405.3 $ 1.73 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 6 $ 8 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 6 8 Stock options 0.0 1.3 Deferred and long-term compensation programs 0.0 1.1 Exchangeable Surplus Notes 0 0.0 6 6.2 Diluted earnings per share(1) Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ (2,415 ) 394.6 $ (6.12 ) $ 706 413.9 $ 1.71 __________ (1) For the three months ended June 30, 2020, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the three months ended June 30, 2020, all potential stock options and compensation programs were considered antidilutive. Six Months Ended June 30, 2020 2019 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) $ (2,675 ) $ 1,675 Less: Income (loss) attributable to noncontrolling interests 5 35 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 11 18 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ (2,691 ) 395.8 $ (6.80 ) $ 1,622 407.3 $ 3.98 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 11 $ 18 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 11 18 Stock options 0.0 1.2 Deferred and long-term compensation programs 0.0 1.1 Exchangeable Surplus Notes 0 0.0 11 6.2 Diluted earnings per share(1) Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ (2,691 ) 395.8 $ (6.80 ) $ 1,633 415.8 $ 3.93 __________ (1) For the six months ended June 30, 2020, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the six months ended June 30, 2020, all potential stock options and compensation programs were considered antidilutive. Unvested share-based payment awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to Prudential Financial are allocated between Common Stock and the participating awards, as if the awards were a second class of stock. During periods of net income available to holders of Common Stock, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss available to holders of Common Stock, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. Undistributed earnings allocated to participating unvested share-based payment awards for the three months ended June 30, 2020 and 2019 , as applicable, were based on 5.0 million and 4.5 million of such awards, respectively, and for the six months ended June 30, 2020 and 2019 , as applicable, were based on 5.0 million and 4.6 million of such awards, respectively, weighted for the period they were outstanding. Stock options and shares related to deferred and long-term compensation programs that are considered antidilutive are excluded from the computation of diluted earnings per share. Stock options are considered antidilutive based on application of the treasury stock method or in the event of a net loss available to holders of Common Stock. Shares related to deferred and long-term compensation programs are considered antidilutive in the event of a net loss available to holders of Common Stock. For the periods indicated, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows: Three Months Ended June 30, 2020 2019 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 4.7 $ 74.92 0.9 $ 105.95 Antidilutive stock options due to net loss available to holders of Common Stock 0.2 0.0 Antidilutive shares based on application of the treasury stock method 0.2 0.0 Antidilutive shares due to net loss available to holders of Common Stock 1.3 0.0 Total antidilutive stock options and shares 6.4 0.9 Six Months Ended June 30, 2020 2019 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 3.5 $ 79.06 1.0 $ 104.57 Antidilutive stock options due to net loss available to holders of Common Stock 0.5 0.0 Antidilutive shares based on application of the treasury stock method 0.2 0.0 Antidilutive shares due to net loss available to holders of Common Stock 1.5 0.0 Total antidilutive stock options and shares 5.7 1.0 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. 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, for the three and six months ended June 30, 2019, 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. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Segments 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, LLC (“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. Divested and Run-off Businesses are comprised of businesses that have been, or will be, sold or exited, including businesses that have been placed in wind down status that do not qualify for “discontinued operations” accounting treatment under U.S. GAAP. The Company’s Corporate and Other operations include corporate items and initiatives that are not allocated to business segments and businesses that have been or will be divested or placed in run-off, excluding the Closed Block division. Adjusted Operating Income The Company analyzes the operating performance of each segment using “adjusted operating income.” Adjusted operating income does not equate to “Income (loss) before income taxes and equity in earnings of operating joint ventures” or “Net income (loss)” as determined in accordance with U.S. GAAP but is the measure of segment profit or loss used by the Company’s chief operating decision maker to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below. Adjusted operating income is calculated by adjusting each segment’s “Income (loss) before income taxes and equity in earnings of operating joint ventures” for the following items: • Realized investment gains (losses), net, and related adjustments; • Charges related to realized investment gains (losses), net; • Market experience updates; • 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. The Company, however, believes that the presentation of adjusted operating income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses. For additional information on these reconciling items, see Note 22 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The Company has historically reflected the results of its variable annuities hedging programs in adjusted operating income over time. Beginning with the second quarter of 2020, these impacts are excluded from adju s ted operating income which the Company believes enhances the understanding of underlying performance trends. Reconciliation of adjusted operating income to net income (loss) The table below reconciles “Adjusted operating income before income taxes” to “Income (loss) before income taxes and equity in earnings of operating joint ventures”: Three Months Ended Six Months Ended 2020 2019 2020 2019 Adjusted operating income before income taxes by segment: (in millions) PGIM $ 324 $ 264 $ 488 $ 478 U.S. Businesses: U.S. Workplace Solutions division: Retirement 281 467 526 718 Group Insurance 5 81 49 134 Total U.S. Workplace Solutions division 286 548 575 852 U.S. Individual Solutions division: Individual Annuities(1) 249 462 622 934 Individual Life (64 ) (135 ) (84 ) (30 ) Total U.S. Individual Solutions division 185 327 538 904 Assurance IQ division(2): Assurance IQ (16 ) 0 (39 ) 0 Total Assurance IQ division (16 ) 0 (39 ) 0 Total U.S. Businesses 455 875 1,074 1,756 International Businesses(3) 693 790 1,391 1,649 Corporate and Other (541 ) (335 ) (883 ) (747 ) Total segment adjusted operating income before income taxes 931 1,594 2,070 3,136 Reconciling items: Realized investment gains (losses), net, and related adjustments(4) (3,191 ) (572 ) (2,982 ) (1,194 ) Charges related to realized investment gains (losses), net 519 (82 ) (283 ) (57 ) Market experience updates(5) 55 (207 ) (886 ) (207 ) Divested and Run-off Businesses: Closed Block division (22 ) (21 ) (23 ) (40 ) Other Divested and Run-off Businesses(3) (602 ) 168 (580 ) 415 Other adjustments(6) 32 0 77 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (54 ) (4 ) (63 ) (37 ) Income (loss) before income taxes and equity in earnings of operating joint ventures per Unaudited Interim Consolidated Financial Statements $ (2,332 ) $ 876 $ (2,670 ) $ 2,016 ________ (1) Individual Annuities segment results reflect DAC as if the Individual Annuities 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. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (3) Effective second quarter of 2020, the results of POK and the impact of its anticipated sale are excluded from the International Businesses and are included in the Divested and Run-off Businesses in Corporate and Other. Prior period amounts have been updated to conform to current period presentation. See Note 1 for additional information. (4) Prior period amounts have been updated to conform to current period presentation. (5) 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. (6) 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 by segment on an adjusted operating income basis, and the reconciliation of the segment totals to amounts reported in the Consolidated Financial Statements. June 30, December 31, Assets by segment: (in millions) PGIM $ 47,722 $ 47,655 U.S. Businesses: U.S. Workplace Solutions division: Retirement 203,191 198,153 Group Insurance 43,900 43,712 Total U.S. Workplace Solutions division 247,091 241,865 U.S. Individual Solutions division: Individual Annuities 191,259 189,040 Individual Life 100,429 96,072 Total U.S. Individual Solutions division 291,688 285,112 Assurance IQ division(1): Assurance IQ 2,599 2,639 Total Assurance IQ division 2,599 2,639 Total U.S. Businesses 541,378 529,616 International Businesses(2) 226,611 220,381 Corporate and Other(2) 37,927 37,573 Closed Block division 61,749 61,327 Total assets per Unaudited Interim Consolidated Financial Statements $ 915,387 $ 896,552 __________ (1) Assurance IQ was acquired by the Company in October 2019. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (2) Effective second quarter of 2020, the carrying amounts of assets of POK are excluded from the International Businesses and are included in the Divested and Run-off Businesses in Corporate and Other. Prior period amounts have been updated to conform to current period presentation. See Note 1 for additional information. Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenues on an adjusted operating income basis: (in millions) PGIM $ 957 $ 926 $ 1,735 $ 1,796 U.S. Businesses: U.S. Workplace Solutions division: Retirement 2,992 3,586 5,429 6,225 Group Insurance 1,471 1,461 2,895 2,902 Total U.S. Workplace Solutions division 4,463 5,047 8,324 9,127 U.S. Individual Solutions division: Individual Annuities 953 1,288 2,101 2,523 Individual Life 1,563 1,508 3,093 2,990 Total U.S. Individual Solutions division 2,516 2,796 5,194 5,513 Assurance IQ division(1): Assurance IQ 59 0 119 0 Total Assurance IQ division 59 0 119 0 Total U.S. Businesses 7,038 7,843 13,637 14,640 International Businesses(2) 5,233 5,058 11,010 10,782 Corporate and Other (150 ) (164 ) (355 ) (335 ) Total revenues on an adjusted operating income basis 13,078 13,663 26,027 26,883 Reconciling items: Realized investment gains (losses), net, and related adjustments(3) (2,241 ) (259 ) (2,695 ) (478 ) Charges related to realized investment gains (losses), net (20 ) (54 ) (81 ) (125 ) Market experience updates(4) (14 ) (7 ) (348 ) (7 ) Divested and Run-off Businesses: Closed Block division 1,340 1,301 2,017 2,675 Other Divested and Run-off Businesses(2) (18 ) 777 623 1,602 Other adjustments(5) 47 0 105 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (57 ) (33 ) (69 ) (71 ) Total revenues per Unaudited Interim Consolidated Financial Statements $ 12,115 $ 15,388 $ 25,579 $ 30,479 __________ (1) Assurance IQ was acquired by the Company in October 2019. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (2) Effective second quarter of 2020, the results of POK and the impact of its anticipated sale are excluded from the International Businesses and are included in the Divested and Run-off Businesses in Corporate and Other. Prior period amounts have been updated to conform to current period presentation. 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. (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. Intersegment revenues Management has determined the intersegment revenues with reference to market rates. Intersegment revenues are eliminated in consolidation in Corporate and Other operations. The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) PGIM segment intersegment revenues $ 208 $ 194 $ 425 $ 374 Segments may also enter into internal derivative contracts with other segments. For adjusted operating income, each segment accounts for the internal derivative results consistent with the manner in which that segment accounts for other similar external derivatives. Asset management and service fees The table below presents asset management and service fees, predominantly related to investment management activities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions) Asset-based management fees $ 840 $ 872 $ 1,715 $ 1,715 Performance-based incentive fees 16 62 30 98 Other fees 135 149 279 286 Total asset management and service fees $ 991 $ 1,083 $ 2,024 $ 2,099 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Commitments and Guarantees Commercial Mortgage Loan Commitments June 30, December 31, (in millions) Total outstanding mortgage loan commitments $ 1,754 $ 2,129 Portion of commitment where prearrangement to sell to investor exists $ 787 $ 751 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. The above amount includes unfunded commitments that are not unconditionally cancellable. For related credit exposure, there was an allowance for credit losses of $2 million as of June 30, 2020 , which is a change of $0 million and $(1) million for the three and six months ended June 30, 2020 , respectively. Commitments to Purchase Investments (excluding Commercial Mortgage Loans) June 30, December 31, (in millions) Expected to be funded from the general account and other operations outside the separate accounts $ 8,394 $ 7,372 Expected to be funded from separate accounts $ 53 $ 49 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. The above amount includes unfunded commitments that are not unconditionally cancellable. There were no related charges for credit losses for the three and six ended June 30, 2020 . Indemnification of Securities Lending and Securities Repurchase Transactions June 30, December 31, (in millions) Indemnification provided to certain clients for securities lending and securities repurchase transactions(1) $ 7,167 $ 5,071 Fair value of related collateral associated with above indemnifications(2) $ 7,317 $ 5,204 Accrued liability associated with guarantee $ 0 $ 0 __________ (1) Includes $34 million and $38 million related to securities repurchase transactions as of June 30, 2020 and December 31, 2019 , respectively. (2) Includes $34 million and $37 million related to securities repurchase transactions as of June 30, 2020 and December 31, 2019 , respectively. In the normal course of business, the Company may facilitate securities lending or securities repurchase transactions on behalf of certain client accounts (collectively, “the accounts”). In certain of these arrangements, the Company has provided an indemnification to the accounts to hold them harmless against losses caused by counterparty (i.e., borrower) defaults associated with such transactions facilitated by the Company. In securities lending transactions, collateral is provided by the counterparty to the accounts at the inception of the transaction in an amount at least equal to 102% of the fair value of the loaned securities and the collateral is maintained daily to equal at least 102% of the fair value of the loaned securities. In securities repurchase transactions, collateral is provided by the counterparty to the accounts at the inception of the transaction in an amount at least equal to 95% of the fair value of the securities subject to repurchase and the collateral is maintained daily to equal at least 95% of the fair value of the securities subject to repurchase. The Company is only at risk if the counterparty to the transaction defaults and the value of the collateral held is less than the value of the securities loaned to, or subject to repurchase from, such counterparty. The Company believes the possibility of any payments under these indemnities is remote. Credit Derivatives Written As discussed further in Note 5, the Company writes credit derivatives under which the Company is obligated to pay the counterparty the referenced amount of the contract and receive in return the defaulted security or similar security. Guarantees of Asset Values June 30, December 31, (in millions) Guaranteed value of third-parties’ assets $ 82,325 $ 80,009 Fair value of collateral supporting these assets $ 86,247 $ 81,604 Asset (liability) associated with guarantee, carried at fair value $ 1 $ 1 Certain contracts underwritten by the Retirement segment include guarantees related to financial assets owned by the guaranteed party. These contracts are accounted for as derivatives and carried at fair value. The collateral supporting these guarantees is not reflected on the Unaudited Interim Consolidated Statements of Financial Position. Indemnification of Serviced Mortgage Loans June 30, December 31, (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 2,278 $ 2,113 First-loss exposure portion of above $ 668 $ 622 Accrued liability associated with guarantees(1) $ 37 $ 19 __________ (1) As of June 30, 2020 , the accrued liability associated with guarantees includes an allowance for credit losses of $17 million , which is a change of $0 million and $(1) million for the three and six months ended June 30, 2020 , respectively. 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 4% 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 $18,154 million and $16,878 million of mortgages subject to these loss-sharing arrangements as of June 30, 2020 and December 31, 2019 , respectively, all of which are collateralized by first priority liens on the underlying multi-family residential properties. As of June 30, 2020 , these mortgages had a weighted-average debt service coverage ratio of 1.96 times and a weighted-average loan-to-value ratio of 62% . 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% . The Company had no losses related to indemnifications that were settled for both the six months ended June 30, 2020 and 2019 . Other Guarantees June 30, December 31, (in millions) Other guarantees where amount can be determined $ 51 $ 55 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 reflects $9 million and $12 million as of June 30, 2020 and December 31, 2019 , 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. Assurance IQ Contingent Consideration Liability On October 10, 2019, the Company completed its acquisition of Assurance IQ, a leading consumer solutions platform that offers a range of solutions that help meet consumers’ financial needs. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Pursuant to the merger agreement, 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. The contingent consideration liability referred to above is reported at fair value. Fair value is determined based on the present value of expected payments under the arrangement described above, using an internally developed option pricing model based on a number of assumptions, including certain unobservable assumptions for future Variable Profits and the future price of Prudential Financial Common Stock. 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 less than $1 million as of June 30, 2020 and $105 million as of December 31, 2019 (see Note 6 for additional information). 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. Contingent Liabilities On an ongoing basis, the Company and its regulators review its operations including, but not limited to, sales and other customer interface procedures and practices, and procedures for meeting obligations to its customers and other parties. These reviews may result in the modification or enhancement of processes or the imposition of other action plans, including concerning management oversight, sales and other customer interface procedures and practices, and the timing or computation of payments to customers and other parties. In certain cases, if appropriate, the Company may offer customers or other parties remediation and may incur charges, including the cost of such remediation, administrative costs and regulatory fines. The Company is subject to the laws and regulations of states and other jurisdictions concerning the identification, reporting and escheatment of unclaimed or abandoned funds, and is subject to audit and examination for compliance with these requirements. For additional discussion of these matters, see “ — Litigation and Regulatory Matters” below. It is possible that the results of operations or the cash flow of the Company in a particular quarterly or annual period could be materially affected as a result of payments in connection with the matters discussed above or other matters depending, in part, upon the results of operations or cash flow for such period. Management believes, however, that ultimate payments in connection with these matters, after consideration of applicable reserves and rights to indemnification, should not have a material adverse effect on the Company’s financial position. Litigation and Regulatory Matters The Company is subject to legal and regulatory actions in the ordinary course of its businesses. Pending legal and regulatory actions include proceedings relating to aspects of the Company’s businesses and operations that are specific to it and proceedings that are typical of the businesses in which it operates, including in both cases businesses that have been either divested or placed in wind down status. Some of these proceedings have been brought on behalf of various alleged classes of complainants. In certain of these matters, the plaintiffs are seeking large and/or indeterminate amounts, including punitive or exemplary damages. The outcome of litigation or a regulatory matter, and the amount or range of potential loss at any particular time, is often inherently uncertain. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimable, no accrual is established but the matter, if potentially material, is disclosed, including matters discussed below. The Company estimates that as of June 30, 2020 , the aggregate range of reasonably possible losses in excess of accruals established for those litigation and regulatory matters for which such an estimate currently can be made is less than $250 million . Any estimate is not an indication of expected loss, if any, or the Company’s maximum possible loss exposure on such matters. The Company reviews relevant information with respect to its litigation and regulatory matters on a quarterly and annual basis and updates its accruals, disclosures and estimates of reasonably possible loss based on such reviews. The following discussion of litigation and regulatory matters provides an update of those matters discussed in Note 23 to the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 , and should be read in conjunction with the complete descriptions provided in the Form 10-K. Individual Annuities, Individual Life, and Group Insurance Behfarin v. Pruco Life In June 2020, the court issued an order: (i) granting plaintiffs’ motion for certification of the settlement class; (ii) approving the proposed nationwide class settlement agreement; (iii) approving the class notice; (iv) awarding attorneys’ fees and costs to plaintiffs and a reduced incentive award to Behfarin; and (v) dismissing the action with prejudice, but maintaining jurisdiction over the settlement. Securities Litigation City of Warren v. PFI, et al In March 2020, the court issued an order consolidating this action with Donald P. Crawford v. PFI, et al. under the caption In re Prudential Financial, Inc. Securities Litigation. In June 2020, plaintiffs filed an amended complaint and added Robert M. Falzon, PFI’s vice chairman, as an individual defendant. Donald P. Crawford v. PFI, et al. In March 2020, the court issued an order consolidating this action with City of Warren v. PFI, et al. under the caption In re Prudential Financial, Inc. Securities Litigation. Case updates are consolidated with the City of Warren action. Shareholder Demands 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. In February 2020, the Board of Directors authorized the creation of a special committee to investigate the allegations set forth in the shareholder demand letter. In April 2020, the Company received additional shareholder demands raising allegations similar to those contained in the January 2020 demand, and may be subject prospectively to additional activity relating to these matters. LIBOR Litigation Prudential Investment Portfolios 2, f/k/a Dryden Core Investment Fund, o/b/o Prudential Core Short-Term Bond Fund and Prudential Core Taxable Money Market Fund v. Bank of America Corporation, et al. In May 2020, the court issued two orders approving stipulations dismissing with prejudice Prudential’s claims against Barclays Bank PLC, Barclays Capital Inc., and Barclays PLC. Summary The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcome cannot be predicted. It is possible that the Company’s results of operations or cash flow in a particular quarterly or annual period could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the results of operations or cash flow for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect on the Company’s financial position. |
Significant Accounting Polici_2
Significant Accounting Policies and Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Unaudited Interim Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) on a basis consistent with reporting interim financial information in accordance with instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The Unaudited Interim 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 additional information on the Company’s consolidated variable interest entities. Intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments necessary for a fair statement of the financial position and results of operations have been made. All such adjustments are of a normal, recurring nature. Interim results are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . |
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; policyholders’ account balances related to the 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, measurement of allowance for credit losses, and recognition of other-than-temporary impairments (“OTTI”); future policy benefits including guarantees; pension and other postretirement benefits; provision for income taxes and valuation of deferred tax assets; and accruals for contingent liabilities, including estimates for losses in connection with unresolved legal and regulatory matters. |
Reclassifications | Reclassifications Certain amounts in prior periods have been reclassified to conform to the current period presentation. |
Adoption of New Accounting Pronouncements | Adoption of ASU 2016-13 The Company adopted ASU 2016-13, and related ASUs, effective January 1, 2020 using the modified retrospective method for certain financial assets carried at amortized cost and certain off-balance sheet exposures. The modified retrospective method results in a cumulative effect adjustment to opening retained earnings. The Company adopted the guidance related to fixed maturities, available-for-sale on a prospective basis. This ASU requires the use of a new current expected credit loss (“CECL”) model to account for expected credit losses on certain financial assets reported at amortized cost (e.g., loans held for investment, fixed maturities held-to-maturity, reinsurance receivables, etc.) and certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans and certain loan commitments). The guidance requires an entity to estimate lifetime credit losses related to such financial assets and credit exposures based on relevant information about past events, current conditions, and reasonable and supportable forecasts that may affect the collectability of the reported amounts. The standard also modifies the OTTI guidance for fixed maturities, available-for-sale requiring the use of an allowance rather than a direct write-down of the investment. The impacts of this ASU on the Company’s Consolidated Financial Statements primarily include (1) A Cumulative Effect Adjustment Upon Adoption; (2) Changes to the Presentation of the Consolidated Statements of Financial Position and Consolidated Statements of Operations; and (3) Changes to Accounting Policies. Each of these impacts is described below. This section is meant to serve as an update to, and should be read in conjunction with, Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (1) Cumulative Effect Adjustment Upon Adoption Summary of Transition Impact on the Consolidated Statements of Financial Position Upon Adoption on January 1, 2020 Increase/(Decrease) (in millions) Fixed maturities, held-to-maturity $ (9 ) Commercial mortgage and other loans (115 ) Other invested assets (1 ) Deferred policy acquisition costs 9 Other assets (6 ) Total assets $ (122 ) Policyholders' dividends $ (14 ) Other liabilities 21 Income taxes (30 ) Total liabilities (23 ) Retained earnings (99 ) Total equity (99 ) Total liabilities and equity $ (122 ) The prospective adoption of the portions of the standard related to fixed maturities, available-for-sale resulted in no impact to opening retained earnings. (2) Changes to the Presentation of the Consolidated Statements of Financial Position and Consolidated Statements of Operations The allowance for credit losses is presented parenthetically on relevant line items in the Consolidated Statements of Financial Position. In the Consolidated Statements of Operations, realized investment gains (losses), net are presented on one line item and will no longer reflect the breakout of OTTI on fixed maturity securities; OTTI on fixed maturity securities transferred to other comprehensive income (“OCI”); and other realized investment gains (losses), net. The presentation of this detail in prior periods is immaterial. (3) Changes to Accounting Policies This section has been updated to include the following changes in our accounting policies resulting from the adoption of ASU 2016-13. Fixed maturities, available-for-sale Fixed maturities, available-for-sale (“AFS debt securities”) are reported at fair value in the Statements of Financial Position. Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. 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 relating to the underlying collateral, including default rates and changes in value. These assumptions can significantly impact income recognition and the amount of impairments recognized in earnings and OCI. For mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is impaired or purchased with credit deterioration. For impaired mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively only if subsequent favorable or adverse changes in expected cash flows are not reflected in the allowance for credit losses. Prior to the adoption of this standard, the effective yield was adjusted prospectively regardless of whether the investment was impaired or not. AFS debt securities with unrealized losses are reviewed quarterly to determine whether the amortized cost basis of the security is recoverable. In evaluating whether the amortized cost basis is recoverable, the Company considers several factors including, but not limited to the extent of the decline and the reasons for the decline in value (credit events, currency or interest-rate related, including general credit spread widening), and the financial condition of the issuer. When an AFS debt security is in an unrealized loss position and (1) the Company has the intent to sell the AFS debt security, or (2) it is more likely than not the Company will be required to sell the AFS debt security before its anticipated recovery, or (3) the Company has deemed the AFS debt security to be uncollectable, the amortized cost basis of the AFS debt security is written down to fair value and any previously recognized allowance is reversed. The impairment is reported in “Realized investment gains (losses), net.” The new cost basis is not adjusted for subsequent increases in estimated fair value. For an AFS debt security in an unrealized loss position that does not meet these conditions, the Company analyzes its ability to recover the amortized cost by comparing the net present value of projected future cash flows (the “net present value”) 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 AFS debt security at the date of acquisition. The Company may use the estimated fair value of collateral, if any, 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 allowance for losses is recognized in earnings for the difference between amortized cost and the net present value and is limited to the difference between amortized cost and fair value of the AFS debt security. Any difference between the fair value and the net present value of the debt security at the impairment measurement date remains in “Other comprehensive income (loss).” Changes in the allowance for losses are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, any impairments on AFS debt securities were reported as an adjustment to the amortized cost basis of the security. Subsequent to the impairment, the AFS debt security was treated as if it were newly acquired at the date of impairment, and any increases in cash flows expected to be collected were accreted into net investment income over the life of the investment. Fixed maturities, held-to-maturity Fixed maturities, held-to-maturity are reported in the Statements of Financial Position at amortized cost net of the CECL allowance. The CECL allowance is generally determined based on probability of default and loss given default assumptions according to sector, credit quality and remaining time to maturity. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, fixed maturities, held-to-maturity deemed to be OTTI were written down to the net present value of expected cash flows. Any difference between the fair value and the net present value of the debt security at the impairment measurement date was recorded in “Other comprehensive income (loss).” Interest income, and amortization of premium and accretion of discount are included in “Net investment income” under the effective yield method. For mortgage-backed and asset-backed securities, the effective yield is based on estimated timing and amount of 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 impairment recognized in earnings and OCI. For mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively for any changes in the estimated timing and amount of cash flows unless the investment is impaired or purchased with credit deterioration. For impaired mortgage-backed and asset-backed securities rated below AA, the effective yield is adjusted prospectively only if subsequent favorable or adverse changes in expected cash flows are not reflected in the allowance for credit losses. Prior to the adoption of this standard, the effective yield was adjusted prospectively regardless of whether the investment was impaired or not. Commercial mortgage and other loans Commercial mortgage and other loans are reported in the Statements of Financial Position at amortized cost net of the CECL allowance. Additionally, certain off-balance sheet credit exposures (e.g., indemnification of serviced mortgage loans, and certain unfunded mortgage loan commitments where the Company cannot unconditionally cancel the commitment) are also subject to a CECL allowance. The CECL allowance represents the Company’s best estimate of expected credit losses over the remaining life of the assets or off-balance sheet credit exposures. The determination of the allowance considers historical credit loss experience, current conditions, and reasonable and supportable forecasts. The allowance is calculated separately for commercial mortgage loans, agricultural mortgage loans, and other collateralized and uncollateralized loans. For commercial mortgage and agricultural mortgage loans (and related unfunded commitments where the Company cannot unconditionally cancel the commitment), the allowance is calculated using an internally developed CECL model. Key inputs to the CECL model include unpaid principal balances, internal credit ratings, annual expected loss factors, average lives of the loans adjusted for prepayment considerations, current and historical interest rate assumptions, and other factors influencing the Company’s view of the current stage of the economic cycle and future economic conditions. Subjective considerations include a review of whether historical loss experience is representative of current market conditions and the Company’s view of the credit cycle. Model assumptions and factors are reviewed and updated as appropriate. Information about certain key inputs is detailed below. Key factors in determining the internal credit ratings for commercial mortgage and agricultural mortgage loans include loan-to-value and debt-service-coverage ratios. Other factors include amortization, loan term, and estimated market value growth rate and volatility for the property type and region. The loan-to-value ratio compares the carrying amount of the loan to the fair value of the underlying property or properties collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the carrying amount of the loan exceeds the collateral value. A loan-to-value ratio less than 100% indicates an excess of collateral value over the carrying amount of the loan. The debt-service-coverage ratio is a property’s net operating income as a percentage of its debt service payments. Debt-service-coverage ratios less than 1.0 times indicate that a property’s 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 and agricultural mortgage loan portfolios, which includes an internal appraisal of the underlying collateral value. The Company’s periodic review also includes a credit re-rating process, whereby the internal credit rating originally assigned at underwriting is updated based on current loan, property and market information using a proprietary credit quality rating system. 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 mortgage loan portfolios. Generally, every loan is re-rated at least annually. Annual expected loss rates are based on historical default and loss experience factors. Using average lives, the annual expected loss rates are converted into life-of-loan loss expectations. When individual loans no longer have the credit risk characteristics of the commercial or agricultural mortgage loan pools, they are removed from the pools and are evaluated individually for an allowance. The allowance is determined based on the outstanding loan balance less the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The CECL allowance on commercial mortgage and other loans can increase or decrease from period to period based on the factors noted above. The change in allowance is reported in “Realized investment gains (losses), net.” As it relates to unfunded commitments that are in scope of this guidance, the CECL allowance is reported in “Other liabilities,” and the change in the allowance is reported in “Realized investment gains (losses), net.” When a commercial mortgage or other loan is deemed to be uncollectible, any allowance is reversed and a direct write-down of the carrying amount of the loan is recorded through “Realized investment gains (losses), net.” The carrying amount of the loan is not adjusted for subsequent recoveries in value. The CECL allowance for other collateralized and uncollateralized loans carried at amortized cost is determined based on probability of default and loss given default assumptions by sector, credit quality and average lives of the loans. Additions to or releases of the allowance are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, the impairments on commercial mortgage and other loans were collectively reviewed at a portfolio level for impairment based on probable incurred but not specifically identified losses with any such losses reflected in an allowance for credit losses. When a loan was individually identified to be impaired, the loan was individually evaluated for an allowance. Changes in these allowances were reported in “Realized investment gains (losses), net.” Additionally, an allowance for credit losses was not required on unfunded loan commitments. As further described in Note 14, the Company’s PGIM business provides commercial mortgage origination, underwriting and servicing for certain government sponsored entities (“GSEs”). The Company has agreed to indemnify the GSEs for a portion of the credit risk associated with certain of the mortgages it services. Management has established a CECL allowance that factors in historical loss information, current conditions and reasonable and supportable forecasts. The allowance also considers the remaining lives of the loans subject to the indemnification. The CECL allowance is included in “Other liabilities” and changes in the CECL allowance are reported in “Realized investment gains (losses), net.” Prior to the adoption of this standard, a credit loss allowance was not required. Reinsurance Reinsurance recoverables are reported on the Statements of Financial Position in “Other Assets” net of the CECL allowance. The CECL allowance considers the credit quality of the reinsurance counterparty and is generally determined based on the probability of default and loss given default assumptions, after considering any applicable collateral arrangements. Additions to or releases of the allowance are reported in “Policyholders’ benefits.” Prior to the adoption of this standard, an allowance for credit losses for reinsurance recoverables was established only when it was deemed probable that a reinsurer may fail to make payments to us in a timely manner. Trade Receivables Trade receivables related to Assurance IQ are reported in the Statements of Financial Position in “Other assets” net of the CECL allowance. The CECL allowance considers the credit quality of the counterparties and is generally determined based on probability of default and loss given default assumptions. Additions to or releases of the allowance are reported in “General and administrative expenses.” Prior to the adoption of this standard, the reserve was limited to an allowance for doubtful accounts. Other ASUs adopted during the six months ended June 30, 2020 Standard Description Effective date and method of adoption Effect on the financial statements or other significant matters 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. The adoption of the ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting This ASU provides optional relief for certain contracts impacted by reference rate reform. The standard permits an entity to consider contract modification due to reference rate reform to be an event that does not require contract remeasurement at the modification date or reassessment of a previous accounting determination. The ASU also temporarily (until December 31, 2022) allows hedge relationships to continue without de-designation upon changes due to reference rate reform. March 12, 2020 to December 31, 2022 using the prospective method. This ASU did not have a significant impact on the Company’s Consolidated Financial Statements and Notes to the Consolidated Financial Statements. The Company made the election under ASU 2020-04 for all applicable contracts as they converted from the current reference rate to the new reference rate. |
Future Adoption Of New Accounting Pronouncements | ASU issued but not yet adopted as of June 30, 2020 — 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. As a result of the COVID-19 pandemic, the FASB voted in June 2020 to tentatively defer for an additional one year the current effective date of ASU 2018-12 from January 1, 2022 to January 1, 2023, and to provide transition relief to facilitate the early adoption of the ASU. Subsequently in July 2020, the FASB issued a proposed ASU with comment deadline of August 24, 2020 to obtain additional feedback on the tentative decisions, which are expected to be finalized during the third quarter of 2020. The transition relief would allow large calendar-year public companies that early adopt ASU 2018-12 to apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2022 financial statements. Companies that do not early adopt ASU 2018-12 would also apply the guidance as of January 1, 2021 (and record transition adjustments as of January 1, 2021) in the 2023 financial statements. ASU 2018-12 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 non-performance risk (“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. |
Business and Basis of Present_2
Business and Basis of Presentation Business and Basis of Presentation (Tables) | 3 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Business Held for Sale | The table below reflects the carrying amounts of assets and liabilities held for sale related to the pending sale of POK. June 30, 2020 (in millions)(1) Assets held for sale: Fixed maturities, available-for-sale $ 14,402 Equity securities 264 Commercial mortgage and other loans 3 Policy loans 777 Other invested assets 109 Short-term investments 69 Cash and cash equivalents 218 Accrued investment income 134 Deferred policy acquisition costs 1,178 Other assets(2) 254 Separate account assets 3,427 Total assets held for sale $ 20,835 Liabilities held for sale: Future policy benefits $ 10,527 Policyholders’ account balances 1,357 Policyholders’ dividends 26 Income taxes 989 Other liabilities(2) 815 Separate account liabilities 3,427 Total liabilities held for sale $ 17,141 _________ (1) These amounts held for sale are included, where applicable, in the remaining Notes to the Unaudited Interim Consolidated Financial Statements and are presented within the line items noted in this table. (2) Includes POK’s lower of cost or fair market value adjustment. |
Significant Accounting Polici_3
Significant Accounting Policies and Pronouncements Significant Accounting Policies and Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Transition Impact | (1) Cumulative Effect Adjustment Upon Adoption Summary of Transition Impact on the Consolidated Statements of Financial Position Upon Adoption on January 1, 2020 Increase/(Decrease) (in millions) Fixed maturities, held-to-maturity $ (9 ) Commercial mortgage and other loans (115 ) Other invested assets (1 ) Deferred policy acquisition costs 9 Other assets (6 ) Total assets $ (122 ) Policyholders' dividends $ (14 ) Other liabilities 21 Income taxes (30 ) Total liabilities (23 ) Retained earnings (99 ) Total equity (99 ) Total liabilities and equity $ (122 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Fixed Maturities, Available-for-sale Securities | 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. (1) Excludes notes with amortized cost of $6,466 million (fair value, $6,466 million ), which have been offset with the associated debt under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans, home equity loans and other asset types. (3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (4) Excludes notes with amortized cost of $4,998 million (fair value, $5,603 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: June 30, 2020 Amortized Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Fair Value (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 31,731 $ 11,309 $ 19 $ 0 $ 43,021 Obligations of U.S. states and their political subdivisions 10,387 2,012 1 0 12,398 Foreign government bonds 98,357 18,657 206 38 116,770 U.S. public corporate securities 91,777 15,518 627 51 106,617 U.S. private corporate securities(1) 35,145 3,281 215 52 38,159 Foreign public corporate securities 26,070 3,328 248 32 29,118 Foreign private corporate securities 28,167 1,145 925 64 28,323 Asset-backed securities(2) 13,989 152 205 0 13,936 Commercial mortgage-backed securities 15,089 1,181 7 1 16,262 Residential mortgage-backed securities(3) 3,100 241 1 0 3,340 Total fixed maturities, available-for-sale(1) $ 353,812 $ 56,824 $ 2,454 $ 238 $ 407,944 |
Fixed Maturities, Held-to-maturity Securities | June 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Amortized Cost, Net of Allowance (in millions) Fixed maturities, held-to-maturity: Foreign government bonds $ 896 $ 261 $ 0 $ 1,157 $ 0 $ 896 Foreign public corporate securities 625 61 0 686 9 616 Foreign private corporate securities 83 2 0 85 0 83 Residential mortgage-backed securities(3) 280 23 0 303 0 280 Total fixed maturities, held-to-maturity(4) $ 1,884 $ 347 $ 0 $ 2,231 $ 9 $ 1,875 __________ (1) Excludes notes with amortized cost of $6,466 million (fair value, $6,466 million ), which have been offset with the associated debt under a netting agreement. (2) Includes credit-tranched securities collateralized by loan obligations, auto loans, education loans, home equity loans and other asset types. (3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (4) Excludes notes with amortized cost of $4,998 million (fair value, $5,603 million ), which have been offset with the associated debt under a netting agreement. 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. |
Duration Of Gross Unrealized Losses On Fixed Maturity Securities | The following table sets forth the fair value and gross unrealized losses on available-for-sale fixed maturity securities without an allowance for credit 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 date indicated: June 30, 2020 Less Than Twelve Months Total Fair Gross Fair Gross Fair Gross (in millions) Fixed maturities, available-for-sale: U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 950 $ 22 $ 0 $ 0 $ 950 $ 22 Obligations of U.S. states and their political subdivisions 47 1 0 0 47 1 Foreign government bonds 4,589 192 31 3 4,620 195 U.S. public corporate securities 6,595 372 1,504 236 8,099 608 U.S. private corporate securities 2,393 118 1,017 97 3,410 215 Foreign public corporate securities 2,875 169 400 60 3,275 229 Foreign private corporate securities 5,775 245 5,223 675 10,998 920 Asset-backed securities 6,741 120 3,510 85 10,251 205 Commercial mortgage-backed securities 105 4 75 3 180 7 Residential mortgage-backed securities 24 0 2 0 26 0 Total fixed maturities, available-for-sale $ 30,094 $ 1,243 $ 11,762 $ 1,159 $ 41,856 $ 2,402 The following table sets forth the fair value and gross unrealized losses on fixed maturity securities aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the date 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. |
Fixed Maturities Classified by Contractual Maturity Date | The following table sets forth the amortized cost or amortized cost, net of allowance and fair value of fixed maturities by contractual maturities, as of the date indicated: June 30, 2020 Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost, Net of Allowance Fair Value (in millions) Fixed maturities: Due in one year or less $ 17,494 $ 18,078 $ 114 $ 116 Due after one year through five years 51,138 54,309 0 0 Due after five years through ten years 67,575 75,812 588 659 Due after ten years(1) 185,427 226,207 893 1,153 Asset-backed securities 13,989 13,936 0 0 Commercial mortgage-backed securities 15,089 16,262 0 0 Residential mortgage-backed securities 3,100 3,340 280 303 Total $ 353,812 $ 407,944 $ 1,875 $ 2,231 __________ (1) Excludes available-for-sale notes with amortized cost of $6,466 million (fair value, $6,466 million ) and held-to-maturity notes with amortized cost of $4,998 million (fair value, $5,603 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 write-downs, impairments and the allowance for credit losses of fixed maturities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions) Fixed maturities, available-for-sale: Proceeds from sales(1) $ 5,217 $ 6,659 $ 10,370 $ 16,821 Proceeds from maturities/prepayments 5,539 4,704 10,422 9,192 Gross investment gains from sales and maturities 405 228 873 711 Gross investment losses from sales and maturities (149 ) (95 ) (210 ) (283 ) OTTI recognized in earnings(2) N/A (64 ) N/A (99 ) Write-downs recognized in earnings(3) (64 ) N/A (155 ) N/A (Addition to) release of allowance for credit losses(4) (80 ) N/A (238 ) N/A Fixed maturities, held-to-maturity: Proceeds from maturities/prepayments(5) $ 22 $ 23 $ 63 $ 37 (Addition to) release of allowance for credit losses(4) 0 N/A 0 N/A __________ (1) Includes $128 million and $332 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2020 and 2019 , respectively. (2) For the three and six months ended June 30, 2019 , amounts exclude 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) For the three and six months ended June 30, 2020 , amounts represent write-downs on securities approaching maturity related to foreign exchange movements and securities actively marketed for sale. (4) Effective January 1, 2020, credit losses on available-for-sale and held-to-maturity fixed maturity securities are recorded within the “allowance for credit losses.” (5) Includes $5 million and $2 million of non-cash related proceeds due to the timing of trade settlements for the six months ended June 30, 2020 and 2019 , 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 tables set forth the activity in the allowance for credit losses for fixed maturity securities, as of the date indicated: June 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in millions) Fixed maturities, available-for-sale: Balance, beginning of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Additions to allowance for credit losses not previously recorded 0 38 205 0 1 0 244 Reductions for securities sold during the period 0 0 (28 ) 0 0 0 (28 ) Additions/reductions on securities with previous allowance 0 0 22 0 0 0 22 Balance, end of period $ 0 $ 38 $ 199 $ 0 $ 1 $ 0 $ 238 June 30, 2020 U.S. Treasury Securities and Obligations of U.S. States Foreign Government Bonds U.S. and Foreign Corporate Securities Asset-Backed Securities Commercial Mortgage-Backed Securities Residential Mortgage-Backed Securities Total (in millions) Fixed maturities, held-to-maturity: Balance, beginning of year $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Cumulative effect of adoption of ASU 2016-13 0 0 9 0 0 0 9 Balance, end of period $ 0 $ 0 $ 9 $ 0 $ 0 $ 0 $ 9 |
Assets Supporting Experience-Rated Contractholder Liabilities | The following table sets forth the composition of “Assets supporting experience-rated contractholder liabilities,” as of the dates indicated: June 30, 2020 December 31, 2019 Amortized Fair Amortized Fair (in millions) Short-term investments and cash equivalents $ 1,234 $ 1,234 $ 277 $ 277 Fixed maturities: Corporate securities 13,492 14,190 13,143 13,603 Commercial mortgage-backed securities 1,832 1,921 1,845 1,896 Residential mortgage-backed securities(1) 1,142 1,200 1,134 1,158 Asset-backed securities(2) 1,762 1,772 1,639 1,662 Foreign government bonds 803 808 802 814 U.S. government authorities and agencies and obligations of U.S. states 354 437 341 397 Total fixed maturities(3) 19,385 20,328 18,904 19,530 Equity securities 1,533 1,683 1,465 1,790 Total assets supporting experience-rated contractholder liabilities(4) $ 22,152 $ 23,245 $ 20,646 $ 21,597 __________ (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 $1,141 million and $1,060 million as of June 30, 2020 and December 31, 2019 , respectively, all of which were rated AAA. (3) As a percentage of amortized cost, 93% and 94% of the portfolio was considered high or highest quality based on NAIC or equivalent ratings, as of June 30, 2020 and December 31, 2019 , respectively. (4) As a percentage of amortized cost, 78% and 77% of the portfolio consisted of public securities as of June 30, 2020 and December 31, 2019 , 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: June 30, 2020 December 31, 2019 Amortized Fair Value Amortized Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 74,765 $ 87,747 $ 74,118 $ 89,546 Fixed maturities, held-to-maturity 874 1,127 869 1,143 Fixed maturities, trading 23 22 23 23 Assets supporting experience-rated contractholder liabilities 647 652 653 664 Total $ 76,309 $ 89,548 $ 75,663 $ 91,376 June 30, 2020 December 31, 2019 Amortized Fair Value Amortized Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 10,783 $ 13,402 $ 10,823 $ 13,322 Assets supporting experience-rated contractholder liabilities 15 16 15 16 Total $ 10,798 $ 13,418 $ 10,838 $ 13,338 |
Commercial Mortgage and Other Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2020 December 31, 2019 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,642 20.2 % $ 13,462 21.4 % Retail 7,739 12.3 8,379 13.3 Apartments/Multi-Family 18,031 28.8 17,348 27.6 Industrial 13,292 21.2 13,226 21.1 Hospitality 2,378 3.8 2,415 3.9 Other 4,617 7.4 4,533 7.2 Total commercial mortgage loans 58,699 93.7 59,363 94.5 Agricultural property loans 3,978 6.3 3,472 5.5 Total commercial mortgage and agricultural property loans by property type 62,677 100.0 % 62,835 100.0 % Allowance for credit losses (238 ) (117 ) Total net commercial mortgage and agricultural property loans by property type 62,439 62,718 Other loans: Uncollateralized loans 680 656 Residential property loans 109 124 Other collateralized loans 248 65 Total other loans 1,037 845 Allowance for credit losses (7 ) (4 ) Total net other loans 1,030 841 Total commercial mortgage and other loans(1) $ 63,469 $ 63,559 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2020 and December 31, 2019 , the net carrying value of these loans was $682 million and $228 million , respectively. |
Allowance for Credit Losses | The following table sets forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated: Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Balance at December 31, 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 Cumulative effect of adoption of ASU 2016-13 110 5 0 0 0 115 Addition to (release of) allowance for expected losses 6 0 0 0 0 6 Other 0 0 0 3 0 3 Balance at June 30, 2020 $ 230 $ 8 $ 0 $ 3 $ 4 $ 245 |
Financing Receivable Credit Quality Indicators | The following tables set forth key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated: June 30, 2020 Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Total (in millions) Loan-to-Value Ratio: Commercial mortgage loans 0%-59.99% $ 346 $ 2,791 $ 3,067 $ 3,462 $ 3,296 $ 17,859 $ 0 $ 30,821 60%-69.99% 1,265 4,057 3,457 2,668 2,886 4,506 0 18,839 70%-79.99% 809 3,021 2,531 1,091 570 720 0 8,742 80% or greater 0 10 0 18 61 208 0 297 Subtotal 2,420 9,879 9,055 7,239 6,813 23,293 0 58,699 Agricultural property loans 0%-59.99% 534 483 376 555 400 1,410 0 3,758 60%-69.99% 112 71 34 3 0 0 0 220 70%-79.99% 0 0 0 0 0 0 0 0 80% or greater 0 0 0 0 0 0 0 0 Subtotal 646 554 410 558 400 1,410 0 3,978 Total commercial mortgage and agricultural property loans 0%-59.99% 880 3,274 3,443 4,017 3,696 19,269 0 34,579 60%-69.99% 1,377 4,128 3,491 2,671 2,886 4,506 0 19,059 70%-79.99% 809 3,021 2,531 1,091 570 720 0 8,742 80% or greater 0 10 0 18 61 208 0 297 Total commercial mortgage and agricultural property loans $ 3,066 $ 10,433 $ 9,465 $ 7,797 $ 7,213 $ 24,703 $ 0 $ 62,677 June 30, 2020 December 31, 2019 Commercial Mortgage Loans Agricultural Property Loans Commercial Mortgage Loans Agricultural Property Loans (in millions) Debt Service Coverage Ratio: Greater or Equal to 1.2x $ 55,921 $ 3,870 $ 56,346 $ 3,401 1.0 - 1.2x 2,465 80 2,708 57 Less than 1.0x 313 28 309 14 Total $ 58,699 $ 3,978 $ 59,363 $ 3,472 |
Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status | The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated: June 30, 2020 Current 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Total Non-Accrual (in millions) Commercial mortgage loans $ 58,386 $ 0 $ 313 $ 0 $ 313 $ 58,699 $ 44 Agricultural property loans 3,971 0 1 6 7 3,978 15 Residential property loans 107 1 0 1 2 109 1 Other collateralized loans 248 0 0 0 0 248 0 Uncollateralized loans 680 0 0 0 0 680 4 Total $ 63,392 $ 1 $ 314 $ 7 $ 322 $ 63,714 $ 64 __________ (1) As of June 30, 2020 , there were no loans in this category accruing interest. (2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . 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 Non-Accrual (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 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . |
Other Invested Assets | The following table sets forth the composition of “Other invested assets,” as of the dates indicated: June 30, 2020 December 31, 2019 (in millions) LPs/LLCs: Equity method: Private equity $ 3,830 $ 3,625 Hedge funds 2,166 1,947 Real estate-related 1,381 1,372 Subtotal equity method 7,377 6,944 Fair value: Private equity 1,548 1,705 Hedge funds 2,100 2,172 Real estate-related 331 336 Subtotal fair value 3,979 4,213 Total LPs/LLCs 11,356 11,157 Real estate held through direct ownership(1) 2,451 2,388 Derivative instruments 1,655 877 Other(2) 1,295 1,184 Total other invested assets $ 16,757 $ 15,606 _________ (1) As of June 30, 2020 and December 31, 2019 , real estate held through direct ownership had mortgage debt of $459 million and $537 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 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . |
Accrued Investment Income | The following table sets forth the composition of “Accrued investment income,” as of the date indicated: June 30, 2020 (in millions) Fixed maturities $ 2,739 Equity securities 9 Commercial mortgage and other loans 198 Policy loans 301 Other invested assets 36 Short-term investments and cash equivalents 13 Total accrued investment income $ 3,296 |
Net Investment Income | The following table sets forth “Net investment income” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Fixed maturities, available-for-sale(1) $ 3,067 $ 3,150 $ 6,179 $ 6,238 Fixed maturities, held-to-maturity(1) 58 58 117 115 Fixed maturities, trading 34 38 68 72 Assets supporting experience-rated contractholder liabilities 164 182 348 367 Equity securities 55 51 83 81 Commercial mortgage and other loans 618 627 1,258 1,227 Policy loans 150 152 303 303 Other invested assets 147 271 278 476 Short-term investments and cash equivalents 65 115 152 233 Gross investment income 4,358 4,644 8,786 9,112 Less: investment expenses (172 ) (254 ) (398 ) (506 ) Net investment income $ 4,186 $ 4,390 $ 8,388 $ 8,606 __________ (1) Includes income on credit-linked notes which are reported on the same financial statement line item as related surplus notes, as conditions are met for right to offset. |
Realized Investment Gains (Losses), Net | The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Fixed maturities(1) $ 112 $ 69 $ 270 $ 329 Commercial mortgage and other loans 2 4 24 14 Investment real estate 11 0 10 0 LPs/LLCs (3 ) 2 (6 ) (3 ) Derivatives (3,881 ) (411 ) (2,389 ) (1,443 ) Other 7 0 6 1 Realized investment gains (losses), net $ (3,752 ) $ (336 ) $ (2,085 ) $ (1,102 ) __________ (1) |
Net Unrealized Gains (Losses) on Investment | The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated: June 30, December 31, (in millions) Fixed maturity securities, available-for-sale—with OTTI(1) $ N/A $ 243 Fixed maturity securities, available-for-sale—all other(1) N/A 44,279 Fixed maturity securities, available-for-sale with an allowance (40 ) N/A Fixed maturity securities, available-for-sale without an allowance 54,410 N/A Derivatives designated as cash flow hedges(2) 2,498 832 Other investments(3) (2 ) (15 ) Net unrealized gains (losses) on investments $ 56,866 $ 45,339 __________ (1) Effective January 1, 2020, per ASU 2016-13, fixed maturity securities, available-for-sale are no longer required to be disclosed “with OTTI” and “all other.” (2) For additional information on cash flow hedges, see Note 5. (3) As of June 30, 2020 , there were no net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.” |
Repurchase Agreements and Securities Lending | The following table sets forth the composition of “Securities sold under agreements to repurchase,” as of the dates indicated: June 30, 2020 December 31, 2019 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 $ 9,516 $ 558 $ 10,074 $ 9,431 $ 0 $ 9,431 Residential mortgage-backed securities 414 0 414 250 0 250 Total securities sold under agreements to repurchase(1) $ 9,930 $ 558 $ 10,488 $ 9,681 $ 0 $ 9,681 __________ (1) The Company did no t have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. The following table sets forth the composition of “Cash collateral for loaned securities,” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated: June 30, 2020 December 31, 2019 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 $ 0 $ 0 $ 0 $ 9 $ 0 $ 9 Obligations of U.S. states and their political subdivisions 101 0 101 33 0 33 Foreign government bonds 381 0 381 244 0 244 U.S. public corporate securities 2,375 0 2,375 2,996 0 2,996 Foreign public corporate securities 536 0 536 762 0 762 Commercial mortgage-backed securities 2 0 2 2 0 2 Equity securities 52 0 52 167 0 167 Total cash collateral for loaned securities(1) $ 3,447 $ 0 $ 3,447 $ 4,213 $ 0 $ 4,213 __________ (1) The Company did no t have any agreements with remaining contractual maturities greater than thirty days, as of the dates indicated. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Variable Interest Entity, Measure of Activity [Abstract] | |
Schedule of Consolidated Variable Interest Entities | The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported. The liabilities primarily comprise obligations under debt instruments issued by the VIEs. The creditors of these VIEs do not have recourse to the Company in excess of the assets contained within the VIEs. Consolidated VIEs for which the Company is the Investment Manager(1) Other Consolidated VIEs(1) June 30, December 31, June 30, December 31, (in millions) Fixed maturities, available-for-sale $ 99 $ 104 $ 284 $ 285 Fixed maturities, held-to-maturity 83 83 843 839 Fixed maturities, trading 1,043 1,112 0 0 Assets supporting experience-rated contractholder liabilities 0 0 2 4 Equity securities 29 47 0 0 Commercial mortgage and other loans 943 883 0 0 Other invested assets 2,379 2,199 151 89 Cash and cash equivalents 153 166 0 0 Accrued investment income 5 4 4 4 Other assets 422 450 663 689 Total assets of consolidated VIEs $ 5,156 $ 5,048 $ 1,947 $ 1,910 Other liabilities $ 386 $ 304 $ 15 $ 13 Notes issued by consolidated VIEs(2) 1,197 1,274 0 0 Total liabilities of consolidated VIEs $ 1,583 $ 1,578 $ 15 $ 13 __________ (1) Total assets of consolidated VIEs reflect $2,742 million and $2,668 million as of June 30, 2020 and December 31, 2019 , respectively, related to VIEs whose beneficial interests are wholly-owned by consolidated subsidiaries. (2) Recourse is limited to the assets of the respective VIE and does not extend to the general credit of the Company . As of June 30, 2020 , the maturities of these obligations were between 4 and 9 years . |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The table below provides a summary of the gross notional amount and fair value of derivatives contracts by the primary underlying risks, excluding embedded derivatives and associated reinsurance recoverables. Many derivative instruments contain multiple underlying risks. The fair value amounts below represent the value of derivative contracts prior to taking into account the netting effects of master netting agreements and cash collateral. This netting impact results in total derivative assets of $1,644 million and $867 million as of June 30, 2020 and December 31, 2019 , respectively, and total derivative liabilities of $684 million and $831 million as of June 30, 2020 and December 31, 2019 , respectively, reflected in the Unaudited Interim Consolidated Statements of Financial Position. Primary Underlying Risk /Instrument Type June 30, 2020 December 31, 2019 Fair Value Fair Value Gross Notional Assets Liabilities Gross Notional Assets Liabilities (in millions) Derivatives Designated as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 3,227 $ 1,220 $ (105 ) $ 3,257 $ 628 $ (73 ) Interest Rate Forwards 202 36 (1 ) 205 4 (1 ) Foreign Currency Foreign Currency Forwards 2,155 73 (12 ) 1,461 22 (57 ) Currency/Interest Rate Foreign Currency Swaps 23,372 3,049 (59 ) 22,746 1,467 (302 ) Total Derivatives Designated as Hedge Accounting Instruments $ 28,956 $ 4,378 $ (177 ) $ 27,669 $ 2,121 $ (433 ) Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate Interest Rate Swaps $ 153,866 $ 22,286 $ (11,151 ) $ 141,162 $ 10,249 $ (4,861 ) Interest Rate Futures 17,326 6 (44 ) 17,095 4 (38 ) Interest Rate Options 14,518 1,813 (267 ) 16,496 339 (238 ) Interest Rate Forwards 2,745 28 0 2,218 18 (3 ) Foreign Currency Foreign Currency Forwards 30,785 308 (235 ) 26,604 208 (214 ) Foreign Currency Options 0 0 0 0 0 0 Currency/Interest Rate Foreign Currency Swaps 12,819 1,243 (337 ) 13,874 740 (345 ) Credit Credit Default Swaps 2,529 20 (17 ) 798 21 0 Equity Equity Futures 7,243 2 (84 ) 1,802 0 (3 ) Equity Options 45,519 494 (302 ) 32,657 679 (765 ) Total Return Swaps 24,798 184 (1,071 ) 18,218 6 (636 ) Other Other(1) 1,260 0 0 1,258 0 0 Synthetic GICs 82,325 1 0 80,009 1 0 Total Derivatives Not Qualifying as Hedge Accounting Instruments $ 395,733 $ 26,385 $ (13,508 ) $ 352,191 $ 12,265 $ (7,103 ) Total Derivatives(2)(3) $ 424,689 $ 30,763 $ (13,685 ) $ 379,860 $ 14,386 $ (7,536 ) __________ (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 $27,110 million and $14,035 million as of June 30, 2020 and December 31, 2019 , respectively, primarily included in “Future policy benefits.” (3) Recorded in “Other invested assets” and “Other liabilities” on the Unaudited Interim Consolidated Statements of Financial Position. |
Schedule of Derivative instruments (hedged item in fair value hedge accounting relationship) | As of June 30, 2020 , the following amounts were recorded on the Unaudited Interim Consolidated Statements of Financial Position related to the carrying amount of the hedged assets (liabilities) and cumulative basis adjustments included in the carrying amount for fair value hedges. June 30, 2020 December 31, 2019 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) Carrying Amount of the Hedged Assets (Liabilities) Cumulative Amount of (in millions) Fixed maturities, available-for-sale, at fair value $ 397 $ 92 $ 389 $ 64 Commercial mortgage and other loans $ 22 $ 2 $ 23 $ 2 Policyholders’ account balances $ (1,721 ) $ (425 ) $ (1,376 ) $ (107 ) Future policy benefits $ (1,277 ) $ (443 ) $ (676 ) $ (172 ) __________ (1) There were no material fair value hedging adjustments for hedged assets and liabilities for which hedge accounting has been discontinued. |
Offsetting of Financial Assets | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2020 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) $ 30,611 $ (29,119 ) $ 1,492 $ (849 ) $ 643 Securities purchased under agreement to resell 2,355 0 2,355 (2,355 ) 0 Total assets $ 32,966 $ (29,119 ) $ 3,847 $ (3,204 ) $ 643 Offsetting of Financial Liabilities: Derivatives(1) $ 13,676 $ (13,001 ) $ 675 $ (40 ) $ 635 Securities sold under agreement to repurchase 10,488 0 10,488 (10,488 ) 0 Total liabilities $ 24,164 $ (13,001 ) $ 11,163 $ (10,528 ) $ 635 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 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 __________ (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Offsetting of Financial Liabilities | The following table presents recognized derivative instruments (excluding embedded derivatives and associated reinsurance recoverables), and repurchase and reverse repurchase agreements that are offset in the Unaudited Interim Consolidated Statements of Financial Position, and/or are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the Unaudited Interim Consolidated Statements of Financial Position. June 30, 2020 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) $ 30,611 $ (29,119 ) $ 1,492 $ (849 ) $ 643 Securities purchased under agreement to resell 2,355 0 2,355 (2,355 ) 0 Total assets $ 32,966 $ (29,119 ) $ 3,847 $ (3,204 ) $ 643 Offsetting of Financial Liabilities: Derivatives(1) $ 13,676 $ (13,001 ) $ 675 $ (40 ) $ 635 Securities sold under agreement to repurchase 10,488 0 10,488 (10,488 ) 0 Total liabilities $ 24,164 $ (13,001 ) $ 11,163 $ (10,528 ) $ 635 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 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 __________ (1) Amounts exclude the excess of collateral received/pledged from/to the counterparty. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table provides the financial statement classification and impact of derivatives used in qualifying and non-qualifying hedge relationships, including the offset of the hedged item in fair value hedge relationships. Three Months Ended June 30, 2020 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ 1 $ (2 ) $ 0 $ 0 $ 6 $ (1 ) $ 0 Currency 0 0 0 0 0 2 0 Total gains (losses) on derivatives designated as hedge instruments 1 (2 ) 0 0 6 1 0 Gains (losses) on the hedged item: Interest Rate (1 ) 4 0 0 5 9 0 Currency 0 0 0 0 0 (2 ) 0 Total gains (losses) on hedged item (1 ) 4 0 0 5 7 0 Amortization for gains (losses) excluded from assessment of the effectiveness Currency 0 0 0 0 0 0 (3 ) Total Amortization for Gain (Loss) Excluded from Assessment of the Effectiveness 0 0 0 0 0 0 (3 ) Total gains (losses) on fair value hedges net of hedged item 0 2 0 0 11 8 (3 ) Cash flow hedges Interest Rate 10 0 0 0 0 0 (8 ) Currency 2 0 0 0 0 0 (10 ) Currency/Interest Rate 49 82 (99 ) 0 0 0 (669 ) Total gains (losses) on cash flow hedges 61 82 (99 ) 0 0 0 (687 ) 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 (232 ) 0 0 0 0 0 0 Currency (103 ) 0 0 0 0 0 0 Currency/Interest Rate (86 ) 0 0 0 0 0 0 Credit (1 ) 0 0 0 0 0 0 Equity (5,221 ) 0 0 0 0 0 0 Other 1 0 0 0 0 0 0 Embedded Derivatives 1,702 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (3,940 ) 0 0 0 0 0 0 Total $ (3,879 ) $ 84 $ (99 ) $ 0 $ 11 $ 8 $ (694 ) Six Months Ended June 30, 2020 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (29 ) $ (4 ) $ 0 $ 0 $ 330 $ 279 $ 0 Currency 2 0 0 0 0 2 0 Total gains (losses) on derivatives designated as hedge instruments (27 ) (4 ) 0 0 330 281 0 Gains (losses) on the hedged item: Interest Rate 29 9 0 0 (318 ) (270 ) 0 Currency (1 ) 1 0 0 0 (2 ) 0 Total gains (losses) on hedged item 28 10 0 0 (318 ) (272 ) 0 Amortization for gains (losses) excluded from assessment of the effectiveness Currency 0 0 0 0 0 0 (3 ) Total Amortization for Gain (Loss) Excluded from Assessment of the Effectiveness 0 0 0 0 0 0 (3 ) Total gains (losses) on fair value hedges net of hedged item 1 6 0 0 12 9 (3 ) Cash flow hedges Interest Rate 8 0 0 0 0 0 44 Currency 4 0 0 0 0 0 91 Currency/Interest Rate 67 160 193 0 0 0 1,531 Total gains (losses) on cash flow hedges 79 160 193 0 0 0 1,666 Net investment hedges Currency 0 0 0 0 0 0 10 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 10 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 8,992 0 0 0 0 0 0 Currency 230 0 (7 ) 0 0 0 0 Currency/Interest Rate 731 0 2 0 0 0 0 Credit (42 ) 0 0 0 0 0 0 Equity 216 0 0 0 0 0 0 Other 1 0 0 0 0 0 0 Embedded Derivatives (12,593 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (2,465 ) 0 (5 ) 0 0 0 0 Total $ (2,385 ) $ 166 $ 188 $ 0 $ 12 $ 9 $ 1,673 Three Months Ended June 30, 2019 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (9 ) $ (2 ) $ 0 $ 0 $ 101 $ 80 $ 0 Currency 2 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (7 ) (2 ) 0 0 101 80 0 Gains (losses) on the hedged item: Interest Rate 9 5 0 0 (98 ) (73 ) 0 Currency (1 ) 1 0 0 0 0 0 Total gains (losses) on hedged item 8 6 0 0 (98 ) (73 ) 0 Total gains (losses) on fair value hedges net of hedged item 1 4 0 0 3 7 0 Cash flow hedges Interest Rate 0 0 0 0 0 0 (1 ) Currency 1 0 0 0 0 0 14 Currency/Interest Rate 47 69 40 0 0 0 229 Total gains (losses) on cash flow hedges 48 69 40 0 0 0 242 Net investment hedges Currency 0 0 0 0 0 0 1 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 1 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 2,346 0 0 0 0 0 0 Currency 122 0 (5 ) 0 0 0 0 Currency/Interest Rate 20 0 0 0 0 0 0 Credit 36 0 0 0 0 0 0 Equity (617 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (2,368 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (461 ) 0 (5 ) 0 0 0 0 Total $ (412 ) $ 73 $ 35 $ 0 $ 3 $ 7 $ 243 Six Months Ended June 30, 2019 Realized Net Other Interest Interest Policyholders’ Benefits AOCI(1) (in millions) Derivatives Designated as Hedge Accounting Instruments: Fair value hedges Gains (losses) on derivatives designated as hedge instruments: Interest Rate $ (15 ) $ (4 ) $ 0 $ 0 $ 168 $ 131 $ 0 Currency 1 0 0 0 0 0 0 Total gains (losses) on derivatives designated as hedge instruments (14 ) (4 ) 0 0 168 131 0 Gains (losses) on the hedged item: Interest Rate 11 11 0 0 (164 ) (119 ) 0 Currency 0 2 0 0 0 0 0 Total gains (losses) on hedged item 11 13 0 0 (164 ) (119 ) 0 Total gains (losses) on fair value hedges net of hedged item (3 ) 9 0 0 4 12 0 Cash flow hedges Interest Rate (1 ) 0 0 0 0 0 22 Currency 2 0 0 0 0 0 5 Currency/Interest Rate 40 137 (6 ) 0 0 0 170 Total gains (losses) on cash flow hedges 41 137 (6 ) 0 0 0 197 Net investment hedges Currency 0 0 0 0 0 0 2 Currency/Interest Rate 0 0 0 0 0 0 0 Total gains (losses) on net investment hedges 0 0 0 0 0 0 2 Derivatives Not Qualifying as Hedge Accounting Instruments: Interest Rate 3,734 0 0 0 0 0 0 Currency 84 0 0 0 0 0 0 Currency/Interest Rate 204 0 0 0 0 0 0 Credit 104 0 0 0 0 0 0 Equity (2,427 ) 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Embedded Derivatives (3,180 ) 0 0 0 0 0 0 Total gains (losses) on derivatives not qualifying as hedge accounting instruments (1,481 ) 0 0 0 0 0 0 Total $ (1,443 ) $ 146 $ (6 ) $ 0 $ 4 $ 12 $ 199 _________ (1) Net change in AOCI. |
Schedule of Derivative Instruments Recognized in Accumulated Other Comprehensive Income (Loss) Before Taxes | Presented below is a rollforward of current period cash flow hedges in AOCI before taxes: (in millions) Balance, December 31, 2019 $ 832 Amount recorded in AOCI Interest Rate 52 Currency 95 Currency/Interest Rate 1,951 Total amount recorded in AOCI 2,098 Amount reclassified from AOCI to income Interest Rate (8 ) Currency (4 ) Currency/Interest Rate (420 ) Total amount reclassified from AOCI to income (432 ) Balance, June 30, 2020 $ 2,498 |
Credit Derivatives | The following table provides a summary of the notional and fair value of written credit protection. The Company’s maximum amount at risk under these credit derivatives, assuming the value of the underlying referenced securities become worthless, is equal to the notional amounts. These credit derivatives have maturities of less than 1 year and less than 27 years for single name and index references, respectively. June 30, 2020 NAIC Rating Designation of Underlying Credit Obligation(1) NAIC 1 NAIC 2 NAIC 3 NAIC 4 NAIC 5 NAIC 6 Total Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value (in millions) Single name reference(2) $ 48 $ 0 $ 48 $ 0 $ 4 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 100 $ 0 Index reference(2) 50 1 0 0 0 0 1,940 13 0 0 0 0 1,990 14 Total $ 98 $ 1 $ 48 $ 0 $ 4 $ 0 $ 1,940 $ 13 $ 0 $ 0 $ 0 $ 0 $ 2,090 $ 14 December 31, 2019 NAIC Rating Designation of Underlying Credit Obligation(1) NAIC 1 NAIC 2 NAIC 3 NAIC 4 NAIC 5 NAIC 6 Total Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value Gross Notional Fair Value (in millions) Single name reference(2) $ 36 $ 0 $ 60 $ 1 $ 4 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 100 $ 1 Index reference(2) 50 0 0 0 570 13 0 0 0 0 72 7 692 20 Total $ 86 $ 0 $ 60 $ 1 $ 574 $ 13 $ 0 $ 0 $ 0 $ 0 $ 72 $ 7 $ 792 $ 21 _________ (1) The NAIC rating designations are based on availability and the lowest ratings among Moody's Investors Service, Inc. ("Moody's"), Standard & Poor’s Rating Services (“S&P”) and Fitch Ratings Inc. (“Fitch”). If no rating is available from a rating agency, a NAIC 6 rating is used. (2) Single name credit default swaps may reference to the credit of corporate debt, sovereign debt, and structured finance. Index references NAIC designations are based on the lowest rated single name reference included in the index. In addition to writing credit protection, the Company has purchased credit protection using credit derivatives in order to hedge specific credit exposures in the Company’s investment portfolio. As of June 30, 2020 and December 31, 2019 , the Company had $440 million and $6 million of outstanding notional amounts and reported at fair value as a liability of $10 million and $ 0 million |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated. As of June 30, 2020 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 $ 42,899 $ 122 $ $ 43,021 Obligations of U.S. states and their political subdivisions 0 12,394 4 12,398 Foreign government bonds 0 116,749 21 116,770 U.S. corporate public securities 0 106,181 436 106,617 U.S. corporate private securities(2) 0 36,305 1,854 38,159 Foreign corporate public securities 0 29,033 85 29,118 Foreign corporate private securities 0 25,794 2,529 28,323 Asset-backed securities(3) 0 13,246 690 13,936 Commercial mortgage-backed securities 0 16,262 0 16,262 Residential mortgage-backed securities 0 3,229 111 3,340 Subtotal 0 402,092 5,852 407,944 Assets supporting experience-rated contractholder liabilities: U.S. Treasury securities and obligations of U.S. government authorities and agencies 0 208 0 208 Obligations of U.S. states and their political subdivisions 0 229 0 229 Foreign government bonds 0 784 24 808 Corporate securities 0 13,566 624 14,190 Asset-backed securities(3) 0 1,673 99 1,772 Commercial mortgage-backed securities 0 1,921 0 1,921 Residential mortgage-backed securities 0 1,200 0 1,200 Equity securities 1,444 239 0 1,683 All other(4) 360 548 7 915 Subtotal 1,804 20,368 754 22,926 Fixed maturities, trading 0 3,697 236 3,933 Equity securities 5,249 1,030 594 6,873 Commercial mortgage and other loans 0 682 0 682 Other invested assets(5) 69 30,693 658 (29,119 ) 2,301 Short-term investments 2,685 6,247 44 8,976 Cash equivalents 4,653 5,439 1 10,093 Other assets 0 0 377 377 Separate account assets(6)(7) 47,429 228,772 1,684 277,885 Total assets $ 61,889 $ 699,020 $ 10,200 $ (29,119 ) $ 741,990 Future policy benefits(8) $ 0 $ 0 $ 26,439 $ $ 26,439 Policyholders’ account balances 0 0 1,441 1,441 Other liabilities 130 13,163 0 (13,001 ) 292 Notes issued by consolidated VIEs 0 0 741 741 Total liabilities $ 130 $ 13,163 $ 28,621 $ (13,001 ) $ 28,913 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 __________ (1) “Netting” amounts represent cash collateral of $16,118 million and $6,814 million as of June 30, 2020 and December 31, 2019 , respectively. (2) Excludes notes with fair value of $6,466 million (carrying amount of $6,466 million ) and $4,757 million (carrying amount of $4,751 million ) as of June 30, 2020 and December 31, 2019 , respectively, which have been offset with the associated payables under a netting agreement. (3) Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types. (4) All other represents cash equivalents and short-term investments. (5) Other invested assets excluded from the fair value hierarchy include certain hedge funds, private equity funds and other funds for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. As of June 30, 2020 and December 31, 2019 , the fair values of such investments were $3,979 million and $4,213 million respectively. (6) Separate account assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate, hedge funds and other invested assets. As of June 30, 2020 and December 31, 2019 , the fair value of such investments was $23,117 million and $23,557 million , respectively. (7) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (8) As of June 30, 2020 , the net embedded derivative liability position of $26.4 billion includes $0.3 billion of embedded derivatives in an asset position and $26.7 billion of embedded derivatives in a liability position. 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. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The tables below present quantitative information on significant internally-priced Level 3 assets and liabilities. As of June 30, 2020 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) $ 3,382 Discounted cash flow(4) Discount rate 0.56% 30% 5.31% Decrease Market comparables EBITDA multiples(3) 6.5X 15.0X 9.3X Increase Liquidation Liquidation value 14.98% 92.79% 67.50% Increase Equity securities $ 185 Discounted cash flow(4) Discount rate 10% 30% Decrease Market comparables EBITDA multiples(3) 1X 9.0X 1.7X Increase Net Asset Value Share price $1 $1,414 $450 Increase Separate account assets-commercial mortgage loans(5) $ 803 Discounted cash flow Spread 1.83% 3.18% 2.05% Decrease Liabilities: Future policy benefits(6) $ 26,439 Discounted cash flow Lapse rate(8) 1% 20% Decrease Spread over LIBOR(9) 0.17% 1.69% Decrease Utilization rate(10) 39% 96% Increase Withdrawal rate See table footnote (11) below. Mortality rate(12) 0% 15% Decrease Equity volatility curve 18% 29% Increase Policyholders’ account balances(7) $ 1,441 Discounted cash flow Lapse rate(8) 1% 42% Decrease Spread over LIBOR(9) 0.17% 1.69% Decrease Mortality rate(12) 0% 24% Decrease Equity volatility curve 6% 38% Increase 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) 0.10% 1.23% Decrease Mortality rate(12) 0% 24% Decrease Equity volatility curve 6% 25% Increase __________ (1) Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table. (2) Includes assets classified as fixed maturities available-for-sale, 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) 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 Unaudited Interim Consolidated Statements of Financial Position. As a result, changes in value associated with these investments are not reflected in the Company’s Unaudited Interim Consolidated Statements of Operations. (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 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 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 June 30, 2020 and December 31, 2019 , the minimum withdrawal rate assumption is 76% and 78% respectively. As of June 30, 2020 and December 31, 2019 , 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. Three Months Ended June 30, 2020 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 $ 115 $ 0 $ 7 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 122 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 21 0 0 0 0 0 0 1 (1 ) 21 (1 ) Corporate securities(3) 4,496 318 125 (5 ) 0 (95 ) 0 196 (131 ) 4,904 316 Structured securities(4) 948 4 73 0 0 (197 ) 0 80 (107 ) 801 11 Assets supporting experience-rated contractholder liabilities: Foreign government 24 0 0 0 0 0 0 0 0 24 0 Corporate securities(3) 603 19 0 1 0 (20 ) 0 29 (8 ) 624 17 Structured securities(4) 177 2 39 0 0 (6 ) 0 0 (113 ) 99 2 Equity securities 0 0 0 0 0 0 0 0 0 0 0 All other activity 7 0 0 0 0 0 0 0 0 7 0 Other assets: Fixed maturities, trading 249 (1 ) 4 (26 ) 0 0 10 0 0 236 (1 ) Equity securities 594 (14 ) 19 (5 ) 0 0 0 0 0 594 (16 ) Other invested assets 581 (4 ) 54 0 4 (3 ) 26 0 0 658 3 Short-term investments 53 0 1 0 0 0 (10 ) 0 0 44 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 382 (24 ) 19 0 0 0 0 0 0 377 (22 ) Separate account assets(5) 1,528 114 48 (8 ) 0 (15 ) 0 26 (9 ) 1,684 112 Liabilities: Future policy benefits (27,935 ) 1,820 0 0 (322 ) 0 (2 ) 0 0 (26,439 ) 1,565 Policyholders’ account balances(6) (1,206 ) (134 ) 0 0 (101 ) 0 0 0 0 (1,441 ) (127 ) Other liabilities (47 ) 47 0 0 0 0 0 0 0 0 47 Notes issued by consolidated VIEs (799 ) 58 0 0 0 0 0 0 0 (741 ) 59 Three Months Ended June 30, 2020 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 (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss)(7) (in millions) Fixed maturities, available-for-sale $ (88 ) $ 0 $ 0 $ 407 $ 3 $ (80 ) $ 0 $ 0 406 Assets supporting experience-rated contractholder liabilities 0 18 0 0 3 0 19 0 0 Other assets: Fixed maturities, trading 0 (2 ) 0 0 1 0 (1 ) 0 0 Equity securities 0 (14 ) 0 0 0 0 (16 ) 0 0 Other invested assets 0 (4 ) 0 0 0 7 (4 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 Other assets (24 ) 0 0 0 0 (22 ) 0 0 0 Separate account assets(5) 0 0 114 0 0 0 0 112 0 Liabilities: Future policy benefits 1,820 0 0 0 0 1,565 0 0 0 Policyholders’ account balances (134 ) 0 0 0 0 (127 ) 0 0 0 Other liabilities 0 47 0 0 0 0 47 0 0 Notes issued by consolidated VIEs (1 ) 59 0 0 0 0 59 0 0 Six Months Ended June 30, 2020 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 $ 105 $ 0 $ 17 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 122 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 22 (1 ) 0 0 0 0 0 1 (1 ) 21 (1 ) Corporate securities(3) 3,236 (182 ) 419 (118 ) 0 (330 ) 1 2,023 (145 ) 4,904 (175 ) Structured securities(4) 948 (3 ) 388 (17 ) 0 (297 ) 155 92 (465 ) 801 (4 ) Assets supporting experience-rated contractholder liabilities: Foreign government 24 0 0 0 0 0 0 0 0 24 0 Corporate securities(3) 637 (27 ) 4 (9 ) 0 (65 ) 0 92 (8 ) 624 (27 ) Structured securities(4) 69 (2 ) 155 0 0 (10 ) 0 0 (113 ) 99 2 Equity securities 0 0 0 0 0 0 0 0 0 0 0 All other activity 0 0 7 0 0 0 0 0 0 7 0 Other assets: Fixed maturities, trading 287 (16 ) 22 (32 ) 0 0 8 15 (48 ) 236 (16 ) Equity securities 633 (58 ) 28 (10 ) 0 0 1 0 0 594 (60 ) Other invested assets 567 4 81 0 4 (4 ) 6 0 0 658 5 Short-term investments 155 2 44 0 0 (110 ) (47 ) 0 0 44 0 Cash equivalents 131 0 0 0 0 0 (130 ) 0 0 1 0 Other assets 113 228 36 0 0 0 0 0 0 377 229 Separate account assets(5) 1,717 (26 ) 104 (21 ) 0 (33 ) 0 33 (90 ) 1,684 (17 ) Liabilities: Future policy benefits (12,831 ) (12,969 ) 0 0 (641 ) 0 2 0 0 (26,439 ) (13,183 ) Policyholders’ account balances(6) (1,316 ) 72 0 0 (197 ) 0 0 0 0 (1,441 ) 63 Other liabilities (105 ) 105 0 0 0 0 0 0 0 0 104 Notes issued by consolidated VIEs (800 ) 59 0 0 0 0 0 0 0 (741 ) 59 Six Months Ended June 30, 2020 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 (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss)(7) (in millions) Fixed maturities, available-for-sale $ (115 ) $ 0 $ 0 $ (76 ) $ 5 $ (106 ) $ 0 $ 0 $ (74 ) Assets supporting experience-rated contractholder liabilities 0 (29 ) 0 0 0 0 (25 ) 0 0 Other assets: Fixed maturities, trading 0 (17 ) 0 0 1 0 (16 ) 0 0 Equity securities 0 (58 ) 0 0 0 0 (60 ) 0 0 Other invested assets 0 4 0 0 0 1 4 0 0 Short-term investments 2 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 Other assets 228 0 0 0 0 229 0 0 0 Separate account assets(5) 0 0 (26 ) 0 0 0 0 (17 ) 0 Liabilities: Future policy benefits (12,969 ) 0 0 0 0 (13,183 ) 0 0 0 Policyholders’ account balances 72 0 0 0 0 63 0 0 0 Other liabilities 0 105 0 0 0 0 104 0 0 Notes issued by consolidated VIEs 0 59 0 0 0 0 59 0 0 Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 88 $ 0 $ 6 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 138 (1 ) 0 0 0 0 (2 ) 0 (111 ) 24 0 Corporate securities(3) 2,757 6 288 (17 ) 0 (225 ) 1 19 (37 ) 2,792 (5 ) Structured securities(4) 1,915 8 113 (47 ) 0 (101 ) 9 17 (1,053 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 29 0 0 0 0 (3 ) 0 0 0 26 0 Corporate securities(3) 592 5 14 0 0 (67 ) 0 10 (1 ) 553 11 Structured securities(4) 60 1 0 0 0 (4 ) 0 0 0 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 0 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 240 (7 ) 36 (13 ) 0 0 1 39 0 296 (7 ) Equity securities 674 16 23 (13 ) 0 (59 ) 6 1 (24 ) 624 15 Other invested assets 373 0 61 0 0 0 2 0 0 436 0 Short-term investments 168 0 273 0 0 (153 ) 0 0 0 288 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 48 42 8 0 0 0 0 0 0 98 41 Separate account assets(5) 1,635 44 139 (6 ) 0 (27 ) 0 0 (77 ) 1,708 41 Liabilities: Future policy benefits (10,025 ) (2,400 ) 0 0 (298 ) 0 0 0 0 (12,723 ) (2,503 ) Policyholders’ account balances(6) (146 ) (828 ) 0 0 (73 ) 0 0 0 0 (1,047 ) (821 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (817 ) 1 0 0 0 0 0 0 0 (816 ) 1 Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (11 ) $ 0 $ 0 $ 18 $ 6 $ (5 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 6 0 0 1 0 12 0 Other assets: Fixed maturities, trading 0 (8 ) 0 0 1 0 (7 ) 0 Equity securities 0 16 0 0 0 0 15 0 Other invested assets 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 42 0 0 0 0 41 0 0 Separate account assets(5) 0 0 43 0 1 0 0 41 Liabilities: Future policy benefits (2,400 ) 0 0 0 0 (2,503 ) 0 0 Policyholders’ account balances (828 ) 0 0 0 0 (821 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs 1 0 0 0 0 1 0 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 81 $ 0 $ 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 5 0 0 0 0 (1 ) 0 0 0 4 0 Foreign government 125 2 0 0 0 0 (1 ) 9 (111 ) 24 0 Corporate securities(3) 2,685 10 607 (29 ) 0 (604 ) (1 ) 183 (59 ) 2,792 (26 ) Structured securities(4) 1,339 25 431 (47 ) 0 (332 ) 7 750 (1,312 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 225 0 0 0 0 (3 ) (196 ) 0 0 26 0 Corporate securities(3) 444 10 41 0 0 (143 ) 196 10 (5 ) 553 6 Structured securities(4) 149 1 6 0 0 (25 ) 0 0 (74 ) 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 1 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 206 (11 ) 74 (14 ) 0 0 3 39 (1 ) 296 (7 ) Equity securities 671 24 46 (24 ) 0 (74 ) 4 1 (24 ) 624 22 Other invested assets 263 (1 ) 218 0 0 (42 ) (2 ) 0 0 436 (1 ) Short-term investments 89 0 426 0 0 (227 ) 0 0 0 288 0 Cash equivalents 77 0 1 0 0 (77 ) 0 0 0 1 0 Other assets 25 56 17 0 0 0 0 0 0 98 55 Separate account assets(5) 1,534 125 228 (17 ) 0 (50 ) 0 0 (112 ) 1,708 115 Liabilities: Future policy benefits (8,926 ) (3,210 ) 0 0 (588 ) 0 1 0 0 (12,723 ) (3,364 ) Policyholders’ account balances(6) (56 ) (879 ) 0 0 (109 ) 0 (3 ) 0 0 (1,047 ) (872 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (595 ) (1 ) 0 0 (858 ) 638 0 0 0 (816 ) (1 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ 40 $ 10 $ (26 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 9 0 0 3 0 8 0 Other assets: Fixed maturities, trading 0 (12 ) 0 0 1 0 (7 ) 0 Equity securities 0 24 0 0 0 0 22 0 Other invested assets (1 ) 0 0 0 0 (1 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 56 0 0 0 0 55 0 0 Separate account assets(5) 0 0 123 0 2 0 0 115 Liabilities: Future policy benefits (3,210 ) 0 0 0 0 (3,364 ) 0 0 Policyholders’ account balances (879 ) 0 0 0 0 (872 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (1 ) 0 0 0 0 (1 ) 0 0 __________ (1) “Other,” for the periods ended June 30, 2020 and June 30, 2019 , primarily represent deconsolidation of VIE, reclassifications of certain assets between reporting categories and foreign currency translation. (2) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (3) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (4) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (5) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (6) Issuances and settlements for Policyholders’ account balances are presented net in the rollforward. (7) Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . |
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. Three Months Ended June 30, 2020 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 $ 115 $ 0 $ 7 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 122 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 21 0 0 0 0 0 0 1 (1 ) 21 (1 ) Corporate securities(3) 4,496 318 125 (5 ) 0 (95 ) 0 196 (131 ) 4,904 316 Structured securities(4) 948 4 73 0 0 (197 ) 0 80 (107 ) 801 11 Assets supporting experience-rated contractholder liabilities: Foreign government 24 0 0 0 0 0 0 0 0 24 0 Corporate securities(3) 603 19 0 1 0 (20 ) 0 29 (8 ) 624 17 Structured securities(4) 177 2 39 0 0 (6 ) 0 0 (113 ) 99 2 Equity securities 0 0 0 0 0 0 0 0 0 0 0 All other activity 7 0 0 0 0 0 0 0 0 7 0 Other assets: Fixed maturities, trading 249 (1 ) 4 (26 ) 0 0 10 0 0 236 (1 ) Equity securities 594 (14 ) 19 (5 ) 0 0 0 0 0 594 (16 ) Other invested assets 581 (4 ) 54 0 4 (3 ) 26 0 0 658 3 Short-term investments 53 0 1 0 0 0 (10 ) 0 0 44 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 382 (24 ) 19 0 0 0 0 0 0 377 (22 ) Separate account assets(5) 1,528 114 48 (8 ) 0 (15 ) 0 26 (9 ) 1,684 112 Liabilities: Future policy benefits (27,935 ) 1,820 0 0 (322 ) 0 (2 ) 0 0 (26,439 ) 1,565 Policyholders’ account balances(6) (1,206 ) (134 ) 0 0 (101 ) 0 0 0 0 (1,441 ) (127 ) Other liabilities (47 ) 47 0 0 0 0 0 0 0 0 47 Notes issued by consolidated VIEs (799 ) 58 0 0 0 0 0 0 0 (741 ) 59 Three Months Ended June 30, 2020 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 (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss)(7) (in millions) Fixed maturities, available-for-sale $ (88 ) $ 0 $ 0 $ 407 $ 3 $ (80 ) $ 0 $ 0 406 Assets supporting experience-rated contractholder liabilities 0 18 0 0 3 0 19 0 0 Other assets: Fixed maturities, trading 0 (2 ) 0 0 1 0 (1 ) 0 0 Equity securities 0 (14 ) 0 0 0 0 (16 ) 0 0 Other invested assets 0 (4 ) 0 0 0 7 (4 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 Other assets (24 ) 0 0 0 0 (22 ) 0 0 0 Separate account assets(5) 0 0 114 0 0 0 0 112 0 Liabilities: Future policy benefits 1,820 0 0 0 0 1,565 0 0 0 Policyholders’ account balances (134 ) 0 0 0 0 (127 ) 0 0 0 Other liabilities 0 47 0 0 0 0 47 0 0 Notes issued by consolidated VIEs (1 ) 59 0 0 0 0 59 0 0 Six Months Ended June 30, 2020 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 $ 105 $ 0 $ 17 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 122 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 22 (1 ) 0 0 0 0 0 1 (1 ) 21 (1 ) Corporate securities(3) 3,236 (182 ) 419 (118 ) 0 (330 ) 1 2,023 (145 ) 4,904 (175 ) Structured securities(4) 948 (3 ) 388 (17 ) 0 (297 ) 155 92 (465 ) 801 (4 ) Assets supporting experience-rated contractholder liabilities: Foreign government 24 0 0 0 0 0 0 0 0 24 0 Corporate securities(3) 637 (27 ) 4 (9 ) 0 (65 ) 0 92 (8 ) 624 (27 ) Structured securities(4) 69 (2 ) 155 0 0 (10 ) 0 0 (113 ) 99 2 Equity securities 0 0 0 0 0 0 0 0 0 0 0 All other activity 0 0 7 0 0 0 0 0 0 7 0 Other assets: Fixed maturities, trading 287 (16 ) 22 (32 ) 0 0 8 15 (48 ) 236 (16 ) Equity securities 633 (58 ) 28 (10 ) 0 0 1 0 0 594 (60 ) Other invested assets 567 4 81 0 4 (4 ) 6 0 0 658 5 Short-term investments 155 2 44 0 0 (110 ) (47 ) 0 0 44 0 Cash equivalents 131 0 0 0 0 0 (130 ) 0 0 1 0 Other assets 113 228 36 0 0 0 0 0 0 377 229 Separate account assets(5) 1,717 (26 ) 104 (21 ) 0 (33 ) 0 33 (90 ) 1,684 (17 ) Liabilities: Future policy benefits (12,831 ) (12,969 ) 0 0 (641 ) 0 2 0 0 (26,439 ) (13,183 ) Policyholders’ account balances(6) (1,316 ) 72 0 0 (197 ) 0 0 0 0 (1,441 ) 63 Other liabilities (105 ) 105 0 0 0 0 0 0 0 0 104 Notes issued by consolidated VIEs (800 ) 59 0 0 0 0 0 0 0 (741 ) 59 Six Months Ended June 30, 2020 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 (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss)(7) (in millions) Fixed maturities, available-for-sale $ (115 ) $ 0 $ 0 $ (76 ) $ 5 $ (106 ) $ 0 $ 0 $ (74 ) Assets supporting experience-rated contractholder liabilities 0 (29 ) 0 0 0 0 (25 ) 0 0 Other assets: Fixed maturities, trading 0 (17 ) 0 0 1 0 (16 ) 0 0 Equity securities 0 (58 ) 0 0 0 0 (60 ) 0 0 Other invested assets 0 4 0 0 0 1 4 0 0 Short-term investments 2 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 0 Other assets 228 0 0 0 0 229 0 0 0 Separate account assets(5) 0 0 (26 ) 0 0 0 0 (17 ) 0 Liabilities: Future policy benefits (12,969 ) 0 0 0 0 (13,183 ) 0 0 0 Policyholders’ account balances 72 0 0 0 0 63 0 0 0 Other liabilities 0 105 0 0 0 0 104 0 0 Notes issued by consolidated VIEs 0 59 0 0 0 0 59 0 0 Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 88 $ 0 $ 6 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 4 0 0 0 0 0 0 0 0 4 0 Foreign government 138 (1 ) 0 0 0 0 (2 ) 0 (111 ) 24 0 Corporate securities(3) 2,757 6 288 (17 ) 0 (225 ) 1 19 (37 ) 2,792 (5 ) Structured securities(4) 1,915 8 113 (47 ) 0 (101 ) 9 17 (1,053 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 29 0 0 0 0 (3 ) 0 0 0 26 0 Corporate securities(3) 592 5 14 0 0 (67 ) 0 10 (1 ) 553 11 Structured securities(4) 60 1 0 0 0 (4 ) 0 0 0 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 0 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 240 (7 ) 36 (13 ) 0 0 1 39 0 296 (7 ) Equity securities 674 16 23 (13 ) 0 (59 ) 6 1 (24 ) 624 15 Other invested assets 373 0 61 0 0 0 2 0 0 436 0 Short-term investments 168 0 273 0 0 (153 ) 0 0 0 288 0 Cash equivalents 1 0 0 0 0 0 0 0 0 1 0 Other assets 48 42 8 0 0 0 0 0 0 98 41 Separate account assets(5) 1,635 44 139 (6 ) 0 (27 ) 0 0 (77 ) 1,708 41 Liabilities: Future policy benefits (10,025 ) (2,400 ) 0 0 (298 ) 0 0 0 0 (12,723 ) (2,503 ) Policyholders’ account balances(6) (146 ) (828 ) 0 0 (73 ) 0 0 0 0 (1,047 ) (821 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (817 ) 1 0 0 0 0 0 0 0 (816 ) 1 Three Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (11 ) $ 0 $ 0 $ 18 $ 6 $ (5 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 6 0 0 1 0 12 0 Other assets: Fixed maturities, trading 0 (8 ) 0 0 1 0 (7 ) 0 Equity securities 0 16 0 0 0 0 15 0 Other invested assets 0 0 0 0 0 0 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 42 0 0 0 0 41 0 0 Separate account assets(5) 0 0 43 0 1 0 0 41 Liabilities: Future policy benefits (2,400 ) 0 0 0 0 (2,503 ) 0 0 Policyholders’ account balances (828 ) 0 0 0 0 (821 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs 1 0 0 0 0 1 0 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses) Purchases Sales Issuances Settlements Other(1) Transfers into Level 3 Transfers out of Level 3 Fair Value, end of period Unrealized gains (losses) for assets still held(2) (in millions) Fixed maturities, available-for-sale: U.S. government $ 81 $ 0 $ 13 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 94 $ 0 U.S. states 5 0 0 0 0 (1 ) 0 0 0 4 0 Foreign government 125 2 0 0 0 0 (1 ) 9 (111 ) 24 0 Corporate securities(3) 2,685 10 607 (29 ) 0 (604 ) (1 ) 183 (59 ) 2,792 (26 ) Structured securities(4) 1,339 25 431 (47 ) 0 (332 ) 7 750 (1,312 ) 861 0 Assets supporting experience-rated contractholder liabilities: Foreign government 225 0 0 0 0 (3 ) (196 ) 0 0 26 0 Corporate securities(3) 444 10 41 0 0 (143 ) 196 10 (5 ) 553 6 Structured securities(4) 149 1 6 0 0 (25 ) 0 0 (74 ) 57 1 Equity securities 1 1 0 (1 ) 0 0 0 0 0 1 1 All other activity 0 0 3 0 0 (2 ) 0 0 0 1 0 Other assets: Fixed maturities, trading 206 (11 ) 74 (14 ) 0 0 3 39 (1 ) 296 (7 ) Equity securities 671 24 46 (24 ) 0 (74 ) 4 1 (24 ) 624 22 Other invested assets 263 (1 ) 218 0 0 (42 ) (2 ) 0 0 436 (1 ) Short-term investments 89 0 426 0 0 (227 ) 0 0 0 288 0 Cash equivalents 77 0 1 0 0 (77 ) 0 0 0 1 0 Other assets 25 56 17 0 0 0 0 0 0 98 55 Separate account assets(5) 1,534 125 228 (17 ) 0 (50 ) 0 0 (112 ) 1,708 115 Liabilities: Future policy benefits (8,926 ) (3,210 ) 0 0 (588 ) 0 1 0 0 (12,723 ) (3,364 ) Policyholders’ account balances(6) (56 ) (879 ) 0 0 (109 ) 0 (3 ) 0 0 (1,047 ) (872 ) Other liabilities 0 0 0 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (595 ) (1 ) 0 0 (858 ) 638 0 0 0 (816 ) (1 ) Six Months Ended June 30, 2019 Total realized and unrealized gains (losses) Unrealized gains (losses) for assets still held(2) Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances Included in other comprehensive income (loss) Net investment income Realized investment gains (losses), net Other income (loss) Interest credited to policyholders’ account balances (in millions) Fixed maturities, available-for-sale $ (13 ) $ 0 $ 0 $ 40 $ 10 $ (26 ) $ 0 $ 0 Assets supporting experience-rated contractholder liabilities 0 9 0 0 3 0 8 0 Other assets: Fixed maturities, trading 0 (12 ) 0 0 1 0 (7 ) 0 Equity securities 0 24 0 0 0 0 22 0 Other invested assets (1 ) 0 0 0 0 (1 ) 0 0 Short-term investments 0 0 0 0 0 0 0 0 Cash equivalents 0 0 0 0 0 0 0 0 Other assets 56 0 0 0 0 55 0 0 Separate account assets(5) 0 0 123 0 2 0 0 115 Liabilities: Future policy benefits (3,210 ) 0 0 0 0 (3,364 ) 0 0 Policyholders’ account balances (879 ) 0 0 0 0 (872 ) 0 0 Other liabilities 0 0 0 0 0 0 0 0 Notes issued by consolidated VIEs (1 ) 0 0 0 0 (1 ) 0 0 __________ (1) “Other,” for the periods ended June 30, 2020 and June 30, 2019 , primarily represent deconsolidation of VIE, reclassifications of certain assets between reporting categories and foreign currency translation. (2) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts. (3) Includes U.S. corporate public, U.S. corporate private, foreign corporate public and foreign corporate private securities. (4) Includes asset-backed, commercial mortgage-backed and residential mortgage-backed securities. (5) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities are not included in the above table as they are reported at contract value and not fair value in the Company’s Unaudited Interim Consolidated Statements of Financial Position. (6) Issuances and settlements for Policyholders’ account balances are presented net in the rollforward. (7) Effective January 1, 2020, the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period were added prospectively due to adoption of ASU 2018-13. Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . |
Fair Value Assets and Liabilities Measured on Recurring Basis, Derivatives | The following tables present the balances of derivative assets and liabilities measured at fair value on a recurring basis, as of the date indicated, by primary underlying risk. These tables include NPR and exclude embedded derivatives and associated reinsurance recoverables. The derivative assets and liabilities shown below are included in “Other invested assets” or “Other liabilities” in the tables contained within the sections “—Assets and Liabilities by Hierarchy Level” and “—Changes in Level 3 Assets and Liabilities,” above. As of June 30, 2020 Level 1 Level 2 Level 3 Netting(1) Total (in millions) Derivative Assets: Interest Rate $ 6 $ 25,383 $ 1 $ $ 25,390 Currency 0 381 0 381 Credit 0 20 0 20 Currency/Interest Rate 0 4,292 0 4,292 Equity 63 617 0 680 Other 0 0 0 0 Netting(1) (29,119 ) (29,119 ) Total derivative assets $ 69 $ 30,693 $ 1 $ (29,119 ) $ 1,644 Derivative Liabilities: Interest Rate $ 44 $ 11,524 $ 0 $ $ 11,568 Currency 0 247 0 247 Credit 0 17 0 17 Currency/Interest Rate 0 396 0 396 Equity 84 1,373 0 1,457 Other 0 0 0 0 Netting(1) (13,001 ) (13,001 ) Total derivative liabilities $ 128 $ 13,557 $ 0 $ (13,001 ) $ 684 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 Other 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 Other 0 0 0 0 Netting(1) (6,705 ) (6,705 ) Total derivative liabilities $ 41 $ 7,495 $ 0 $ (6,705 ) $ 831 __________ (1) “Netting” amounts represent cash collateral and the impact of offsetting asset and liability positions held with the same counterparty, subject to master netting agreement. |
Fair Value Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation, Derivatives | The following tables provide a summary of the changes in fair value of Level 3 derivative assets and liabilities as of the dates indicated, as well as the portion of gains or losses included in income, attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. Three Months Ended June 30, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net Derivative - Interest Rate 1 0 0 0 0 0 0 0 0 1 0 Six Months Ended June 30, 2020 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net Derivative - Interest Rate 1 0 0 0 0 0 0 0 0 1 0 Three Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net Derivative - Interest Rate 1 0 0 0 0 0 0 0 0 1 0 Six Months Ended June 30, 2019 Fair Value, beginning of period Total realized and unrealized gains (losses)(1) Purchases Sales Issuances Settlements Other Transfers into Transfers out of Level 3(2) Fair Value, end of period Unrealized gains (losses) for assets still held(1) (in millions) Net Derivative - Equity $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net Derivative - Interest Rate 2 (1 ) 0 0 0 0 0 0 0 1 (1 ) ______ (1) Total realized and unrealized gains (losses) as well as unrealized gains (losses) for assets still held at the end of the period are recorded in “Realized investment gains (losses), net.” (2) Transfers into or out of Level 3 are generally reported at the value as of the beginning of the quarter in which the transfers occur for any such positions still held at the end of the quarter. |
Fair Value Measurements, Nonrecurring | The following tables represent information for assets measured at fair value on a nonrecurring basis. The fair value measurement is nonrecurring as these assets are measured at fair value only when there is a triggering event (e.g., an evidence of impairment). Assets included in the table are those that were impaired during the respective reporting periods and that are still held as of the reporting date. The estimated fair values for these amounts were determined using significant unobservable inputs (Level 3). Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Realized investment gains (losses) net: Commercial mortgage loans(1) $ (3 ) $ 0 $ (3 ) $ 0 Mortgage servicing rights(2) $ (26 ) $ (1 ) $ (29 ) $ (2 ) June 30, 2020 December 31, 2019 (in millions) Carrying value after measurement as of period end: Commercial mortgage loans(1) $ 11 $ 15 Mortgage servicing rights(2) $ 280 $ 87 __________ (1) Commercial mortgage loans are valued based on discounted cash flows utilizing market rates or the fair value of the underlying real estate collateral. (2) Mortgage servicing rights are valued using a discounted cash flow model. The model incorporates assumptions for servicing revenues, which are adjusted for expected prepayments, delinquency rates, escrow deposit income and estimated loan servicing expenses. The discount rates incorporated into the model are determined based on the estimated returns a market participant would require for this business including a liquidity and risk premium. This estimate includes available relevant data from any active market sales of mortgage servicing rights. |
Fair Value, Option | The following tables present information regarding assets and liabilities where the fair value option has been elected. Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Liabilities: Notes issued by consolidated VIEs: Changes in fair value $ (59 ) $ (1 ) $ (59 ) $ 1 Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Commercial mortgage and other loans: Interest income $ 4 $ 5 $ 6 $ 11 Notes issued by consolidated VIEs: Interest expense $ 11 $ 13 $ 22 $ 22 June 30, 2020 December 31, 2019 (in millions) Commercial mortgage and other loans(1): Fair value as of period end $ 682 $ 228 Aggregate contractual principal as of period end $ 670 $ 224 Other assets: Fair value as of period end $ 10 $ 10 Notes issued by consolidated VIEs: Fair value as of period end $ 741 $ 800 Aggregate contractual principal as of period end $ 857 $ 857 __________ (1) As of June 30, 2020 , for loans for which the fair value option has been elected, there were no loans in non-accrual status and none of the loans were more than 90 days past due and still accruing. |
Fair Value Disclosure Financial Instruments Not Carried at Fair Value | The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Unaudited Interim Consolidated Statements of Financial Position. In some cases, as described below, the carrying amount equals or approximates fair value. June 30, 2020 Fair Value Carrying Amount(1) Level 1 Level 2 Level 3 Total Total (in millions) Assets: Fixed maturities, held-to-maturity(2) $ 0 $ 2,146 $ 85 $ 2,231 $ 1,875 Assets supporting experience-rated contractholder liabilities 219 100 0 319 319 Commercial mortgage and other loans 0 108 65,666 65,774 62,787 Policy loans 0 0 12,283 12,283 12,283 Other invested assets 0 200 0 200 200 Short-term investments 2,351 89 0 2,440 2,440 Cash and cash equivalents 8,785 2,271 0 11,056 11,056 Accrued investment income 0 3,296 0 3,296 3,296 Other assets 148 2,548 276 2,972 2,971 Total assets $ 11,503 $ 10,758 $ 78,310 $ 100,571 $ 97,227 Liabilities: Policyholders’ account balances—investment contracts $ 0 $ 37,374 $ 71,832 $ 109,206 $ 106,501 Securities sold under agreements to repurchase 0 10,488 0 10,488 10,488 Cash collateral for loaned securities 0 3,447 0 3,447 3,447 Short-term debt 0 1,036 102 1,138 1,130 Long-term debt(3) 1,900 19,884 1,206 22,990 20,162 Notes issued by consolidated VIEs 0 0 456 456 456 Other liabilities 0 7,546 48 7,594 7,594 Separate account liabilities—investment contracts 0 77,492 23,687 101,179 101,179 Total liabilities $ 1,900 $ 157,267 $ 97,331 $ 256,498 $ 250,957 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 __________ (1) Carrying values presented herein differ from those in the Company’s Unaudited Interim Consolidated Statements of Financial Position because certain items within the respective financial statement captions are not considered financial instruments or are out of scope under authoritative guidance relating to disclosures of the fair value of financial instruments. (2) Excludes notes with fair value of $5,603 million (carrying amount of $4,998 million ) and $5,401 million (carrying amount of $4,998 million ) as of June 30, 2020 and December 31, 2019 , respectively, which have been offset with the associated payables under a netting agreement. (3) Includes notes with fair value of $12,069 million (carrying amount of $11,464 million ) and $10,158 million (carrying amount of $9,749 million ) as of June 30, 2020 and December 31, 2019 , respectively, which have been offset with the associated receivables under a netting agreement. |
Closed Block (Tables)
Closed Block (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Closed Block Disclosure [Abstract] | |
Schedule of Closed Block Liabilities and Assets | Closed Block liabilities and assets designated to the Closed Block, as well as maximum future earnings to be recognized from these liabilities and assets, are as follows: June 30, December 31, (in millions) Closed Block liabilities Future policy benefits $ 47,142 $ 47,613 Policyholders’ dividends payable 728 717 Policyholders’ dividend obligation 7,755 6,149 Policyholders’ account balances 4,914 4,973 Other Closed Block liabilities 3,322 4,049 Total Closed Block liabilities 63,861 63,501 Closed Block assets Fixed maturities, available-for-sale, at fair value 42,058 41,146 Fixed maturities, trading, at fair value 239 256 Equity securities, at fair value 2,047 2,245 Commercial mortgage and other loans 8,388 8,629 Policy loans 4,158 4,264 Other invested assets 3,259 3,333 Short-term investments 95 227 Total investments 60,244 60,100 Cash and cash equivalents 462 191 Accrued investment income 436 456 Other Closed Block assets 86 93 Total Closed Block assets 61,228 60,840 Excess of reported Closed Block liabilities over Closed Block assets 2,633 2,661 Portion of above representing accumulated other comprehensive income (loss): Net unrealized investment gains (losses) 5,250 3,280 Allocated to policyholder dividend obligation (5,305 ) (3,332 ) Future earnings to be recognized from Closed Block assets and Closed Block liabilities $ 2,578 $ 2,609 |
Schedule of Closed Block Dividend Obligation | Information regarding the policyholder dividend obligation is as follows: Six Months Ended (in millions) Balance, December 31, 2019 $ 6,149 Cumulative effect adjustment from the adoption of ASU 2016-13(1) (13 ) Impact from earnings allocable to policyholder dividend obligation (353 ) Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation 1,972 Balance, June 30, 2020 $ 7,755 |
Schedule of Closed Block Revenues Benefits Expenses | Closed Block revenues and benefits and expenses are as follows for the periods indicated: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) Revenues Premiums $ 519 $ 581 $ 999 $ 1,108 Net investment income 515 576 1,063 1,141 Realized investment gains (losses), net (8 ) 49 248 105 Other income (loss) 318 97 (285 ) 325 Total Closed Block revenues 1,344 1,303 2,025 2,679 Benefits and Expenses Policyholders’ benefits 725 780 1,372 1,489 Interest credited to policyholders’ account balances 32 32 64 64 Dividends to policyholders 517 415 423 968 General and administrative expenses 82 89 167 178 Total Closed Block benefits and expenses 1,356 1,316 2,026 2,699 Closed Block revenues, net of Closed Block benefits and expenses, before income taxes (12 ) (13 ) (1 ) (20 ) Income tax expense (benefit) (28 ) (29 ) (34 ) (53 ) Closed Block revenues, net of Closed Block benefits and expenses and income taxes $ 16 $ 16 $ 33 $ 33 |
Short-Term and Long-Term Debt (
Short-Term and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | The table below presents the Company’s short-term debt as of the dates indicated: June 30, 2020 December 31, 2019 ($ in millions) Commercial paper: Prudential Financial $ 25 $ 25 Prudential Funding, LLC 475 524 Subtotal commercial paper 500 549 Current portion of long-term debt: Senior Notes 528 1,179 Mortgage Debt 95 192 Surplus notes subject to set-off arrangements (1) 250 0 Subtotal current portion of long-term debt 873 1,371 Other(2) 7 13 Subtotal 1,380 1,933 Less: assets under set-off arrangements(1) 250 0 Total short-term debt(3) $ 1,130 $ 1,933 Supplemental short-term debt information: Portion of commercial paper borrowings due overnight $ 240 $ 224 Daily average commercial paper outstanding for the quarter ended $ 1,869 $ 1,702 Weighted average maturity of outstanding commercial paper, in days 14 6 Weighted average interest rate on outstanding commercial paper 0.13 % 1.61 % _________ (1) The surplus notes have corresponding assets where rights to set-off exist, thereby reducing the amount of surplus notes. (2) Includes $7 million drawn on a revolving line of credit held by a subsidiary at June 30, 2020. (3) Includes Prudential Financial debt of $553 million and $1,204 million at June 30, 2020 and December 31, 2019 , respectively. |
Schedule of Long-term Debt | The table below presents the Company’s long-term debt as of the dates indicated: June 30, 2020 December 31, 2019 (in millions) Fixed-rate obligations: Surplus notes $ 343 $ 342 Surplus notes subject to set-off arrangements(1) 8,884 7,484 Senior notes 11,575 10,084 Mortgage debt(2) 100 104 Floating-rate obligations: Line of credit 300 300 Surplus notes subject to set-off arrangements(1) 2,330 2,265 Mortgage debt(3) 264 241 Junior subordinated notes(4) 7,580 7,575 Subtotal 31,376 28,395 Less: assets under set-off arrangements(1) 11,214 9,749 Total long-term debt(5) $ 20,162 $ 18,646 __________ (1) The surplus notes have corresponding assets where rights to set-off exist, thereby reducing the amount of surplus notes included in long-term debt. (2) Includes $40 million and $43 million of debt denominated in foreign currency at June 30, 2020 and December 31, 2019 , respectively. (3) Includes $50 million and $53 million of debt denominated in foreign currency at June 30, 2020 and December 31, 2019 , respectively. (4) Includes Prudential Financial debt of $7,522 million and $7,518 million at June 30, 2020 and December 31, 2019, respectively. Also includes subsidiary debt of $58 million and $57 million denominated in foreign currency at June 30, 2020 and December 31, 2019, respectively. (5) Includes Prudential Financial debt of $18,925 million and $17,430 million at June 30, 2020 and December 31, 2019 , respectively. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Net periodic (benefit) cost included in “General and administrative expenses” includes the following components: Three Months Ended June 30, Pension Benefits Other Postretirement Benefits 2020 2019 2020 2019 (in millions) Components of net periodic (benefit) cost: Service cost $ 81 $ 72 $ 6 $ 5 Interest cost 107 123 16 20 Expected return on plan assets (202 ) (204 ) (25 ) (23 ) Amortization of prior service cost (1 ) (1 ) 1 1 Amortization of actuarial (gain) loss, net 66 54 4 6 Settlements 4 48 0 0 Special termination benefits(1)(2) 0 1 0 0 Net periodic (benefit) cost $ 55 $ 93 $ 2 $ 9 Six Months Ended June 30, Pension Benefits Other Postretirement Benefits 2020 2019 2020 2019 (in millions) Components of net periodic (benefit) cost: Service cost $ 161 $ 145 $ 12 $ 11 Interest cost 215 246 32 39 Expected return on plan assets (403 ) (408 ) (50 ) (47 ) Amortization of prior service cost (2 ) (2 ) 3 2 Amortization of actuarial (gain) loss, net 131 108 8 12 Settlements 4 48 0 0 Special termination benefits(1)(2) 2 1 0 0 Net periodic (benefit) cost $ 108 $ 138 $ 5 $ 17 __________ (1) For 2020 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 or participation in the Voluntary Separation Program that was offered to eligible U.S.-based employees in 2019. (2) For 2019 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. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019 666.3 267.5 398.8 Common Stock issued 0.0 0.0 0.0 Common Stock acquired 0.0 6.7 (6.7 ) Stock-based compensation programs(1) 0.0 (2.5 ) 2.5 Balance, June 30, 2020 666.3 271.7 394.6 __________ (1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. |
Dividends Declared | Dividends declared per share of Common Stock are as follows for the periods indicated: Three Months Ended Six Months Ended 2020 2019 2020 2019 Dividends declared per share of Common Stock $ 1.10 $ 1.00 $ 2.20 $ 2.00 |
Components of Accumulated Other Comprehensive Income (Loss) | The balance of and changes in each component of AOCI as of and for the six months ended June 30, 2020 and 2019 , 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, 2019 $ (536 ) $ 28,112 $ (3,537 ) $ 24,039 Change in OCI before reclassifications (213 ) 9,449 4 9,240 Amounts reclassified from AOCI 5 (702 ) 140 (557 ) Income tax benefit (expense) 28 (1,881 ) (32 ) (1,885 ) Balance, June 30, 2020 $ (716 ) $ 34,978 $ (3,425 ) $ 30,837 Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. Foreign Currency Translation Adjustment Net Unrealized Investment Gains (Losses)(1) Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) Total Accumulated Other Comprehensive Income (Loss) (in millions) Balance, December 31, 2018 $ (564 ) $ 14,745 $ (3,275 ) $ 10,906 Change in OCI before reclassifications 98 17,296 (39 ) 17,355 Amounts reclassified from AOCI 5 (501 ) 120 (376 ) Income tax benefit (expense) 8 (3,899 ) (19 ) (3,910 ) Cumulative effect of adoption of ASU 2017-12 0 7 0 7 Balance, June 30, 2019 $ (453 ) $ 27,648 $ (3,213 ) $ 23,982 __________ (1) Includes cash flow hedges of $2,498 million and $832 million as of June 30, 2020 and December 31, 2019 , respectively, and $1,017 million and $811 million as of June 30, 2019 and December 31, 2018 , respectively, and fair value hedges of $(3) million and $0 million as of June 30, 2020 and December 31, 2019 , respectively. |
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of Accumulated Other Comprehensive Income (Loss) Three Months Ended Six Months Ended Affected line item in Consolidated Statements of Operations 2020 2019 2020 2019 (in millions) Amounts reclassified from AOCI(1)(2): Foreign currency translation adjustment: Foreign currency translation adjustments $ (2 ) $ 0 $ (5 ) $ (5 ) Realized investment gains (losses), net Foreign currency translation adjustments 0 0 0 0 Other income (loss) Total foreign currency translation adjustment (2 ) 0 (5 ) (5 ) Net unrealized investment gains (losses): Cash flow hedges—Interest rate 9 0 8 (1 ) (3) Cash flow hedges—Currency 3 1 4 2 (3) Cash flow hedges—Currency/Interest rate 32 156 420 171 (3) Net unrealized investment gains (losses) on available-for-sale securities 112 69 270 329 Total net unrealized investment gains (losses) 156 226 702 501 (4) Amortization of defined benefit pension items: Prior service cost 0 0 (1 ) 0 (5) Actuarial gain (loss) (70 ) (60 ) (139 ) (120 ) (5) Total amortization of defined benefit pension items (70 ) (60 ) (140 ) (120 ) Total reclassifications for the period $ 84 $ 166 $ 557 $ 376 __________ (1) All amounts are shown before tax. (2) Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI. (3) See Note 5 for additional information on cash flow hedges. (4) See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ dividends. (5) See Note 10 for information on employee benefit plans. |
Allowance for Credit Losses Net Unrealized Investment Gain (Loss) AOCI Rollforward | The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows: Net Unrealized Investment Gains (Losses) on Available-for-sale Fixed Maturity Securities on which an allowance for credit losses has been recognized Net Unrealized DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2019(1) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Net investment gains (losses) on investments arising during the period 34 (7 ) 27 Reclassification adjustment for (gains) losses included in net income 13 (3 ) 10 Increase (Decrease) due to non-credit related losses recognized in AOCI during the period (87 ) 19 (68 ) Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 2 0 2 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables 0 0 0 Impact of net unrealized investment (gains) losses on policyholders’ dividends (5 ) 1 (4 ) Balance, June 30, 2020 $ (40 ) $ 2 $ 0 $ (5 ) $ 10 $ (33 ) __________ (1) |
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward | All Other Net Unrealized Investment Gains (Losses) in AOCI Net Unrealized Gains (Losses) on Investments(1) DAC, DSI, VOBA and Reinsurance Recoverables Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) (in millions) Balance, December 31, 2019(2) $ 45,339 $ (1,585 ) $ (2,909 ) $ (3,366 ) $ (9,367 ) $ 28,112 Net investment gains (losses) on investments arising during the period 12,195 (2,599 ) 9,596 Reclassification adjustment for (gains) losses included in net income (715 ) 152 (563 ) Reclassification due to allowance for credit losses recorded during the period 87 (19 ) 68 Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables 226 (40 ) 186 Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables (1,036 ) 202 (834 ) Impact of net unrealized investment (gains) losses on policyholders’ dividends (1,967 ) 413 (1,554 ) Balance, June 30, 2020 $ 56,906 $ (1,359 ) $ (3,945 ) $ (5,333 ) $ (11,258 ) $ 35,011 __________ (1) Includes cash flow and fair value hedges. See Note 5 for information on cash flow and fair value hedges. (2) Includes net unrealized gains (losses) for which an OTTI loss had been previously recognized. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the periods indicated is as follows: Three Months Ended June 30, 2020 2019 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) $ (2,405 ) $ 738 Less: Income (loss) attributable to noncontrolling interests 4 30 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 6 8 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ (2,415 ) 394.6 $ (6.12 ) $ 700 405.3 $ 1.73 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 6 $ 8 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 6 8 Stock options 0.0 1.3 Deferred and long-term compensation programs 0.0 1.1 Exchangeable Surplus Notes 0 0.0 6 6.2 Diluted earnings per share(1) Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ (2,415 ) 394.6 $ (6.12 ) $ 706 413.9 $ 1.71 __________ (1) For the three months ended June 30, 2020, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the three months ended June 30, 2020, all potential stock options and compensation programs were considered antidilutive. Six Months Ended June 30, 2020 2019 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) $ (2,675 ) $ 1,675 Less: Income (loss) attributable to noncontrolling interests 5 35 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards 11 18 Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ (2,691 ) 395.8 $ (6.80 ) $ 1,622 407.3 $ 3.98 Effect of dilutive securities and compensation programs Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic $ 11 $ 18 Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted 11 18 Stock options 0.0 1.2 Deferred and long-term compensation programs 0.0 1.1 Exchangeable Surplus Notes 0 0.0 11 6.2 Diluted earnings per share(1) Net income (loss) attributable to Prudential Financial available to holders of Common Stock $ (2,691 ) 395.8 $ (6.80 ) $ 1,633 415.8 $ 3.93 __________ (1) For the six months ended June 30, 2020, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the six months ended June 30, 2020, all potential stock options and compensation programs were considered antidilutive. |
Earnings Per Share Computation | For the periods indicated, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows: Three Months Ended June 30, 2020 2019 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 4.7 $ 74.92 0.9 $ 105.95 Antidilutive stock options due to net loss available to holders of Common Stock 0.2 0.0 Antidilutive shares based on application of the treasury stock method 0.2 0.0 Antidilutive shares due to net loss available to holders of Common Stock 1.3 0.0 Total antidilutive stock options and shares 6.4 0.9 Six Months Ended June 30, 2020 2019 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 3.5 $ 79.06 1.0 $ 104.57 Antidilutive stock options due to net loss available to holders of Common Stock 0.5 0.0 Antidilutive shares based on application of the treasury stock method 0.2 0.0 Antidilutive shares due to net loss available to holders of Common Stock 1.5 0.0 Total antidilutive stock options and shares 5.7 1.0 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The table below reconciles “Adjusted operating income before income taxes” to “Income (loss) before income taxes and equity in earnings of operating joint ventures”: Three Months Ended Six Months Ended 2020 2019 2020 2019 Adjusted operating income before income taxes by segment: (in millions) PGIM $ 324 $ 264 $ 488 $ 478 U.S. Businesses: U.S. Workplace Solutions division: Retirement 281 467 526 718 Group Insurance 5 81 49 134 Total U.S. Workplace Solutions division 286 548 575 852 U.S. Individual Solutions division: Individual Annuities(1) 249 462 622 934 Individual Life (64 ) (135 ) (84 ) (30 ) Total U.S. Individual Solutions division 185 327 538 904 Assurance IQ division(2): Assurance IQ (16 ) 0 (39 ) 0 Total Assurance IQ division (16 ) 0 (39 ) 0 Total U.S. Businesses 455 875 1,074 1,756 International Businesses(3) 693 790 1,391 1,649 Corporate and Other (541 ) (335 ) (883 ) (747 ) Total segment adjusted operating income before income taxes 931 1,594 2,070 3,136 Reconciling items: Realized investment gains (losses), net, and related adjustments(4) (3,191 ) (572 ) (2,982 ) (1,194 ) Charges related to realized investment gains (losses), net 519 (82 ) (283 ) (57 ) Market experience updates(5) 55 (207 ) (886 ) (207 ) Divested and Run-off Businesses: Closed Block division (22 ) (21 ) (23 ) (40 ) Other Divested and Run-off Businesses(3) (602 ) 168 (580 ) 415 Other adjustments(6) 32 0 77 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (54 ) (4 ) (63 ) (37 ) Income (loss) before income taxes and equity in earnings of operating joint ventures per Unaudited Interim Consolidated Financial Statements $ (2,332 ) $ 876 $ (2,670 ) $ 2,016 ________ (1) Individual Annuities segment results reflect DAC as if the Individual Annuities 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. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (3) Effective second quarter of 2020, the results of POK and the impact of its anticipated sale are excluded from the International Businesses and are included in the Divested and Run-off Businesses in Corporate and Other. Prior period amounts have been updated to conform to current period presentation. See Note 1 for additional information. (4) Prior period amounts have been updated to conform to current period presentation. (5) 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. (6) 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 Certain Financial Information from Segments to Consolidated | The tables below present certain financial information for the Company’s segments and its Corporate and Other operations, including assets by segment and revenues by segment on an adjusted operating income basis, and the reconciliation of the segment totals to amounts reported in the Consolidated Financial Statements. June 30, December 31, Assets by segment: (in millions) PGIM $ 47,722 $ 47,655 U.S. Businesses: U.S. Workplace Solutions division: Retirement 203,191 198,153 Group Insurance 43,900 43,712 Total U.S. Workplace Solutions division 247,091 241,865 U.S. Individual Solutions division: Individual Annuities 191,259 189,040 Individual Life 100,429 96,072 Total U.S. Individual Solutions division 291,688 285,112 Assurance IQ division(1): Assurance IQ 2,599 2,639 Total Assurance IQ division 2,599 2,639 Total U.S. Businesses 541,378 529,616 International Businesses(2) 226,611 220,381 Corporate and Other(2) 37,927 37,573 Closed Block division 61,749 61,327 Total assets per Unaudited Interim Consolidated Financial Statements $ 915,387 $ 896,552 __________ (1) Assurance IQ was acquired by the Company in October 2019. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (2) Effective second quarter of 2020, the carrying amounts of assets of POK are excluded from the International Businesses and are included in the Divested and Run-off Businesses in Corporate and Other. Prior period amounts have been updated to conform to current period presentation. See Note 1 for additional information. Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenues on an adjusted operating income basis: (in millions) PGIM $ 957 $ 926 $ 1,735 $ 1,796 U.S. Businesses: U.S. Workplace Solutions division: Retirement 2,992 3,586 5,429 6,225 Group Insurance 1,471 1,461 2,895 2,902 Total U.S. Workplace Solutions division 4,463 5,047 8,324 9,127 U.S. Individual Solutions division: Individual Annuities 953 1,288 2,101 2,523 Individual Life 1,563 1,508 3,093 2,990 Total U.S. Individual Solutions division 2,516 2,796 5,194 5,513 Assurance IQ division(1): Assurance IQ 59 0 119 0 Total Assurance IQ division 59 0 119 0 Total U.S. Businesses 7,038 7,843 13,637 14,640 International Businesses(2) 5,233 5,058 11,010 10,782 Corporate and Other (150 ) (164 ) (355 ) (335 ) Total revenues on an adjusted operating income basis 13,078 13,663 26,027 26,883 Reconciling items: Realized investment gains (losses), net, and related adjustments(3) (2,241 ) (259 ) (2,695 ) (478 ) Charges related to realized investment gains (losses), net (20 ) (54 ) (81 ) (125 ) Market experience updates(4) (14 ) (7 ) (348 ) (7 ) Divested and Run-off Businesses: Closed Block division 1,340 1,301 2,017 2,675 Other Divested and Run-off Businesses(2) (18 ) 777 623 1,602 Other adjustments(5) 47 0 105 0 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests (57 ) (33 ) (69 ) (71 ) Total revenues per Unaudited Interim Consolidated Financial Statements $ 12,115 $ 15,388 $ 25,579 $ 30,479 __________ (1) Assurance IQ was acquired by the Company in October 2019. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. (2) Effective second quarter of 2020, the results of POK and the impact of its anticipated sale are excluded from the International Businesses and are included in the Divested and Run-off Businesses in Corporate and Other. Prior period amounts have been updated to conform to current period presentation. 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. (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. |
Schedule of Intersegment Revenues | The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (in millions) PGIM segment intersegment revenues $ 208 $ 194 $ 425 $ 374 |
Schedule of Asset Management and Service Fees | The table below presents asset management and service fees, predominantly related to investment management activities, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions) Asset-based management fees $ 840 $ 872 $ 1,715 $ 1,715 Performance-based incentive fees 16 62 30 98 Other fees 135 149 279 286 Total asset management and service fees $ 991 $ 1,083 $ 2,024 $ 2,099 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingent Liabilities [Line Items] | |
Mortgage Loans | The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated: June 30, 2020 December 31, 2019 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 12,642 20.2 % $ 13,462 21.4 % Retail 7,739 12.3 8,379 13.3 Apartments/Multi-Family 18,031 28.8 17,348 27.6 Industrial 13,292 21.2 13,226 21.1 Hospitality 2,378 3.8 2,415 3.9 Other 4,617 7.4 4,533 7.2 Total commercial mortgage loans 58,699 93.7 59,363 94.5 Agricultural property loans 3,978 6.3 3,472 5.5 Total commercial mortgage and agricultural property loans by property type 62,677 100.0 % 62,835 100.0 % Allowance for credit losses (238 ) (117 ) Total net commercial mortgage and agricultural property loans by property type 62,439 62,718 Other loans: Uncollateralized loans 680 656 Residential property loans 109 124 Other collateralized loans 248 65 Total other loans 1,037 845 Allowance for credit losses (7 ) (4 ) Total net other loans 1,030 841 Total commercial mortgage and other loans(1) $ 63,469 $ 63,559 __________ (1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of June 30, 2020 and December 31, 2019 , the net carrying value of these loans was $682 million and $228 million , respectively. |
Commitments | Commercial Mortgage Loans | |
Commitments and Contingent Liabilities [Line Items] | |
Mortgage Loans | Commercial Mortgage Loan Commitments June 30, December 31, (in millions) Total outstanding mortgage loan commitments $ 1,754 $ 2,129 Portion of commitment where prearrangement to sell to investor exists $ 787 $ 751 |
Commitments | Investments | |
Commitments and Contingent Liabilities [Line Items] | |
Commitments to Purchase Investments (excluding Commercial Mortgage Loans) | Commitments to Purchase Investments (excluding Commercial Mortgage Loans) June 30, December 31, (in millions) Expected to be funded from the general account and other operations outside the separate accounts $ 8,394 $ 7,372 Expected to be funded from separate accounts $ 53 $ 49 |
Indemnification | |
Commitments and Contingent Liabilities [Line Items] | |
Indemnification of Securities Lending and Securities Repurchase Transactions | Indemnification of Securities Lending and Securities Repurchase Transactions June 30, December 31, (in millions) Indemnification provided to certain clients for securities lending and securities repurchase transactions(1) $ 7,167 $ 5,071 Fair value of related collateral associated with above indemnifications(2) $ 7,317 $ 5,204 Accrued liability associated with guarantee $ 0 $ 0 __________ (1) Includes $34 million and $38 million related to securities repurchase transactions as of June 30, 2020 and December 31, 2019 , respectively. (2) Includes $34 million and $37 million related to securities repurchase transactions as of June 30, 2020 and December 31, 2019 , respectively. |
Indemnification | Serviced Mortgage Loans | |
Commitments and Contingent Liabilities [Line Items] | |
Mortgage Loans | Indemnification of Serviced Mortgage Loans June 30, December 31, (in millions) Maximum exposure under indemnification agreements for mortgage loans serviced by the Company $ 2,278 $ 2,113 First-loss exposure portion of above $ 668 $ 622 Accrued liability associated with guarantees(1) $ 37 $ 19 __________ (1) As of June 30, 2020 , the accrued liability associated with guarantees includes an allowance for credit losses of $17 million , which is a change of $0 million and $(1) million for the three and six months ended June 30, 2020 , respectively. |
Guarantees of Asset Values | |
Commitments and Contingent Liabilities [Line Items] | |
Guarantees | Guarantees of Asset Values June 30, December 31, (in millions) Guaranteed value of third-parties’ assets $ 82,325 $ 80,009 Fair value of collateral supporting these assets $ 86,247 $ 81,604 Asset (liability) associated with guarantee, carried at fair value $ 1 $ 1 |
Other Guarantees | |
Commitments and Contingent Liabilities [Line Items] | |
Guarantees | Other Guarantees June 30, December 31, (in millions) Other guarantees where amount can be determined $ 51 $ 55 Accrued liability for other guarantees and indemnifications $ 0 $ 0 |
Business and Basic Presentation
Business and Basic Presentation (Narrative) (Details) $ in Millions, ₩ in Trillions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Apr. 10, 2020KRW (₩) | Apr. 10, 2020USD ($) | Dec. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Other income | $ 1,474 | $ 643 | $ (1,117) | $ 1,897 | |||
Derivative Asset, Fair Value, Gross Asset | 30,763 | 30,763 | $ 14,386 | ||||
Total income tax expense (benefit) | 115 | $ 162 | 57 | $ 394 | |||
The Prudential Life Insurance Company of Korea, Ltd. | Discontinued Operations, Held for Sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash considerations for sale of a business | ₩ 2.3 | $ 1,900 | |||||
Other income | 700 | ||||||
Derivative Asset, Fair Value, Gross Asset | 40 | $ 40 | |||||
Total income tax expense (benefit) | $ 100 |
Business and Basis of Present_3
Business and Basis of Presentation Business and Basis of Presentation (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Fixed Maturities, AFS, amortized cost | $ 353,812 | $ 346,574 | ||
Equity securities | 5,704 | 5,560 | ||
Commercial mortgage and other loans | [1],[2] | 63,469 | 63,559 | |
Policy loans | 12,283 | [3] | 12,096 | |
Other invested assets | [2] | 16,757 | [1],[3] | 15,606 |
Short-term investments | 11,416 | [3] | 5,467 | |
Accrued investment income | [2] | 3,296 | [3] | 3,330 |
Deferred policy acquisition costs | 19,667 | [1],[3] | 19,912 | |
Other assets | [2] | 21,301 | [1],[3] | 20,832 |
Separate account assets | 301,002 | [3] | 312,281 | |
Total assets | 915,387 | 896,552 | ||
Future policy benefits | 312,759 | [3] | 293,527 | |
Policyholders’ account balances | 158,237 | [3] | 152,110 | |
Policyholders’ dividends | 8,623 | [1],[3] | 6,988 | |
Income taxes | 13,261 | [1],[3] | 11,378 | |
Other liabilities | [2] | 18,573 | [1],[3] | 20,802 |
Separate account liabilities | 301,002 | [3] | 312,281 | |
Total liabilities | 848,879 | $ 832,833 | ||
Discontinued Operations, Held for Sale | The Prudential Life Insurance Company of Korea, Ltd. | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Fixed Maturities, AFS, amortized cost | 14,402 | |||
Equity securities | 264 | |||
Commercial mortgage and other loans | 3 | |||
Policy loans | 777 | |||
Other invested assets | 109 | |||
Short-term investments | 69 | |||
Cash and cash equivalents | 218 | |||
Accrued investment income | 134 | |||
Deferred policy acquisition costs | 1,178 | |||
Other assets | 254 | |||
Separate account assets | 3,427 | |||
Total assets | 20,835 | |||
Future policy benefits | 10,527 | |||
Policyholders’ account balances | 1,357 | |||
Policyholders’ dividends | 26 | |||
Income taxes | 989 | |||
Other liabilities | 815 | |||
Separate account liabilities | 3,427 | |||
Total liabilities | $ 17,141 | |||
[1] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||
[3] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. |
Significant Accounting Polici_4
Significant Accounting Policies and Pronouncements (Summary of Transition Impact) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Fixed maturities, held-to-maturity | [2] | $ 1,875 | [1] | $ 1,933 | |||||
Commercial mortgage and other loans | [1],[2] | 63,469 | 63,559 | ||||||
Other invested assets | [2] | 16,757 | [1],[3] | 15,606 | |||||
Deferred policy acquisition costs | 19,667 | [1],[3] | 19,912 | ||||||
Other assets | [2] | 21,301 | [1],[3] | 20,832 | |||||
Total Assets | 915,387 | 896,552 | |||||||
Policyholders’ dividends | 8,623 | [1],[3] | 6,988 | ||||||
Other liabilities | [2] | 18,573 | [1],[3] | 20,802 | |||||
Income taxes | 13,261 | [1],[3] | 11,378 | ||||||
Total liabilities | 848,879 | 832,833 | |||||||
Retained earnings | 29,326 | 32,991 | |||||||
Total equity | 66,508 | $ 61,072 | 63,719 | $ 62,153 | $ 55,450 | $ 49,031 | |||
Total liabilities and equity | 915,387 | $ 896,552 | |||||||
ASU 2016-13 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Other liabilities | $ 19 | ||||||||
Restatement Adjustment | ASU 2016-13 | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Fixed maturities, held-to-maturity | $ (9) | ||||||||
Commercial mortgage and other loans | (115) | ||||||||
Other invested assets | (1) | ||||||||
Deferred policy acquisition costs | 9 | ||||||||
Other assets | (6) | ||||||||
Total Assets | (122) | ||||||||
Policyholders’ dividends | (14) | ||||||||
Other liabilities | 21 | ||||||||
Income taxes | (30) | ||||||||
Total liabilities | (23) | ||||||||
Retained earnings | (99) | ||||||||
Total equity | (99) | ||||||||
Total liabilities and equity | $ (122) | ||||||||
[1] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. | ||||||||
[2] | See Note 4 for details of balances associated with variable interest entities. | ||||||||
[3] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. |
Investments (Fixed Maturities S
Investments (Fixed Maturities Securities Excluding Investments Classified as Trading) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | $ 353,812 | $ 346,574 | ||
Allowance for Credit Losses | 238 | |||
Fair Value | [2] | 407,944 | [1] | 391,096 |
Amortized Cost | [2] | 1,875 | [3] | 1,933 |
Fair Value | 2,231 | 2,302 | ||
Allowance for Credit Losses | 9 | |||
Fixed maturities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 353,812 | 346,574 | ||
Gross Unrealized Gains | 56,824 | 45,837 | ||
Gross Unrealized Losses | 2,454 | 1,315 | ||
Allowance for Credit Losses | 238 | |||
Fair Value | 407,944 | 391,096 | ||
Amortized Cost | 1,884 | 1,933 | ||
Gross Unrealized Gains | 347 | 369 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 2,231 | 2,302 | ||
Allowance for Credit Losses | 9 | |||
Amortized Cost, Net of Allowance | 1,875 | |||
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 | 31,731 | 30,625 | ||
Gross Unrealized Gains | 11,309 | 5,195 | ||
Gross Unrealized Losses | 19 | 161 | ||
Allowance for Credit Losses | 0 | |||
Fair Value | 43,021 | 35,659 | ||
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 | 10,387 | 10,068 | ||
Gross Unrealized Gains | 2,012 | 1,437 | ||
Gross Unrealized Losses | 1 | 8 | ||
Allowance for Credit Losses | 0 | |||
Fair Value | 12,398 | 11,497 | ||
Fixed maturities | Foreign government bonds | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 98,357 | 98,356 | ||
Gross Unrealized Gains | 18,657 | 20,761 | ||
Gross Unrealized Losses | 206 | 63 | ||
Allowance for Credit Losses | 38 | |||
Fair Value | 116,770 | 119,054 | ||
Amortized Cost | 896 | 891 | ||
Gross Unrealized Gains | 261 | 282 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 1,157 | 1,173 | ||
Allowance for Credit Losses | 0 | |||
Amortized Cost, Net of Allowance | 896 | |||
Fixed maturities | U.S. public corporate securities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 91,777 | 87,566 | ||
Gross Unrealized Gains | 15,518 | 11,030 | ||
Gross Unrealized Losses | 627 | 257 | ||
Allowance for Credit Losses | 51 | |||
Fair Value | 106,617 | 98,339 | ||
Fixed maturities | U.S. private corporate securities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 35,145 | 34,410 | ||
Gross Unrealized Gains | 3,281 | 2,243 | ||
Gross Unrealized Losses | 215 | 120 | ||
Allowance for Credit Losses | 52 | |||
Fair Value | 38,159 | 36,533 | ||
Fixed maturities | Foreign public corporate securities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 26,070 | 26,841 | ||
Gross Unrealized Gains | 3,328 | 3,054 | ||
Gross Unrealized Losses | 248 | 70 | ||
Allowance for Credit Losses | 32 | |||
Fair Value | 29,118 | 29,825 | ||
Amortized Cost | 625 | 649 | ||
Gross Unrealized Gains | 61 | 64 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 686 | 713 | ||
Allowance for Credit Losses | 9 | |||
Amortized Cost, Net of Allowance | 616 | |||
Fixed maturities | Foreign private corporate securities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 28,167 | 27,619 | ||
Gross Unrealized Gains | 1,145 | 1,201 | ||
Gross Unrealized Losses | 925 | 580 | ||
Allowance for Credit Losses | 64 | |||
Fair Value | 28,323 | 28,240 | ||
Amortized Cost | 83 | 83 | ||
Gross Unrealized Gains | 2 | 2 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 85 | 85 | ||
Allowance for Credit Losses | 0 | |||
Amortized Cost, Net of Allowance | 83 | |||
Fixed maturities | Asset-backed securities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 13,989 | 13,067 | ||
Gross Unrealized Gains | 152 | 147 | ||
Gross Unrealized Losses | 205 | 40 | ||
Allowance for Credit Losses | 0 | |||
Fair Value | 13,936 | 13,174 | ||
Fixed maturities | Commercial mortgage-backed securities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 15,089 | 14,978 | ||
Gross Unrealized Gains | 1,181 | 610 | ||
Gross Unrealized Losses | 7 | 14 | ||
Allowance for Credit Losses | 1 | |||
Fair Value | 16,262 | 15,574 | ||
Fixed maturities | Residential mortgage-backed securities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 3,100 | 3,044 | ||
Gross Unrealized Gains | 241 | 159 | ||
Gross Unrealized Losses | 1 | 2 | ||
Allowance for Credit Losses | 0 | |||
Fair Value | 3,340 | 3,201 | ||
Amortized Cost | 280 | 310 | ||
Gross Unrealized Gains | 23 | 21 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 303 | 331 | ||
Allowance for Credit Losses | 0 | |||
Amortized Cost, Net of Allowance | 280 | |||
Available-for-sale | OTTI | Fixed maturities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
OTTI in AOCI | (119) | |||
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 | |||
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 | |||
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) | |||
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) | |||
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 | |||
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) | |||
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 | |||
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) | |||
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 | |||
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) | |||
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 | |||
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 | |||
Prudential Netting Agreement | U.S. private corporate securities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Fair Value | 6,466 | 4,751 | ||
Prudential Netting Agreement | Fixed maturities | ||||
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | ||||
Amortized Cost | 4,998 | 4,998 | ||
Fair Value | 5,603 | 5,401 | ||
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 | 6,466 | 4,751 | ||
Fair Value | $ 6,466 | $ 4,757 | ||
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||
[3] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. |
Investments (Fair Value and Los
Investments (Fair Value and Losses by Investment Category and Length of Time in a Loss Position) (Details) - Fixed maturities - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | $ 30,094 | $ 21,898 |
Less Than Twelve Months, Gross Unrealized Losses | 1,243 | 437 |
Twelve Months or More, Fair Value | 11,762 | 15,006 |
Twelve Months or More, Gross Unrealized Losses | 1,159 | 878 |
Total, Fair Value | 41,856 | 36,904 |
Total, Gross Unrealized Losses | 2,402 | 1,315 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 950 | 4,950 |
Less Than Twelve Months, Gross Unrealized Losses | 22 | 161 |
Twelve Months or More, Fair Value | 0 | 267 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 950 | 5,217 |
Total, Gross Unrealized Losses | 22 | 161 |
Obligations of U.S. states and their political subdivisions | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 47 | 273 |
Less Than Twelve Months, Gross Unrealized Losses | 1 | 8 |
Twelve Months or More, Fair Value | 0 | 0 |
Twelve Months or More, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 47 | 273 |
Total, Gross Unrealized Losses | 1 | 8 |
Foreign government bonds | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 4,589 | 2,332 |
Less Than Twelve Months, Gross Unrealized Losses | 192 | 60 |
Twelve Months or More, Fair Value | 31 | 126 |
Twelve Months or More, Gross Unrealized Losses | 3 | 3 |
Total, Fair Value | 4,620 | 2,458 |
Total, Gross Unrealized Losses | 195 | 63 |
U.S. public corporate securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 6,595 | 3,944 |
Less Than Twelve Months, Gross Unrealized Losses | 372 | 85 |
Twelve Months or More, Fair Value | 1,504 | 2,203 |
Twelve Months or More, Gross Unrealized Losses | 236 | 172 |
Total, Fair Value | 8,099 | 6,147 |
Total, Gross Unrealized Losses | 608 | 257 |
U.S. private corporate securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 2,393 | 2,283 |
Less Than Twelve Months, Gross Unrealized Losses | 118 | 44 |
Twelve Months or More, Fair Value | 1,017 | 1,563 |
Twelve Months or More, Gross Unrealized Losses | 97 | 76 |
Total, Fair Value | 3,410 | 3,846 |
Total, Gross Unrealized Losses | 215 | 120 |
Foreign public corporate securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 2,875 | 1,271 |
Less Than Twelve Months, Gross Unrealized Losses | 169 | 23 |
Twelve Months or More, Fair Value | 400 | 496 |
Twelve Months or More, Gross Unrealized Losses | 60 | 47 |
Total, Fair Value | 3,275 | 1,767 |
Total, Gross Unrealized Losses | 229 | 70 |
Foreign private corporate securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 5,775 | 1,466 |
Less Than Twelve Months, Gross Unrealized Losses | 245 | 33 |
Twelve Months or More, Fair Value | 5,223 | 5,666 |
Twelve Months or More, Gross Unrealized Losses | 675 | 547 |
Total, Fair Value | 10,998 | 7,132 |
Total, Gross Unrealized Losses | 920 | 580 |
Asset-backed securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 6,741 | 3,979 |
Less Than Twelve Months, Gross Unrealized Losses | 120 | 12 |
Twelve Months or More, Fair Value | 3,510 | 4,433 |
Twelve Months or More, Gross Unrealized Losses | 85 | 28 |
Total, Fair Value | 10,251 | 8,412 |
Total, Gross Unrealized Losses | 205 | 40 |
Commercial mortgage-backed securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 105 | 1,193 |
Less Than Twelve Months, Gross Unrealized Losses | 4 | 10 |
Twelve Months or More, Fair Value | 75 | 164 |
Twelve Months or More, Gross Unrealized Losses | 3 | 4 |
Total, Fair Value | 180 | 1,357 |
Total, Gross Unrealized Losses | 7 | 14 |
Residential mortgage-backed securities | ||
Debt Securities [Line Items] | ||
Less Than Twelve Months, Fair Value | 24 | 207 |
Less Than Twelve Months, Gross Unrealized Losses | 0 | 1 |
Twelve Months or More, Fair Value | 2 | 88 |
Twelve Months or More, Gross Unrealized Losses | 0 | 1 |
Total, Fair Value | 26 | 295 |
Total, Gross Unrealized Losses | $ 0 | $ 2 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | |||||
Write-down on accrued investment income receivable | $ 9 | $ 12 | |||
Fixed maturity securities purchased with credit deterioration | 0 | ||||
Commercial mortgage and other loans purchased with credit deterioration | 0 | ||||
Loans on non-accrual status recognized in interest income | 2 | 2 | |||
Loans on non-accrual status, do not have allowance for credit losses | 19 | ||||
Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | 2,402 | 2,402 | $ 1,315 | ||
Gross unrealized losses of twelve months or more concentrated in various sectors | 1,159 | 1,159 | 878 | ||
Corporate securities | |||||
Schedule of Investments [Line Items] | |||||
Gross unrealized losses of twelve months or more concentrated in various sectors | 1,159 | 1,159 | 878 | ||
Other income | Equity securities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized gains (losses) for assets still held: | 825 | $ 51 | (656) | $ 581 | |
Other income | Assets supporting experience-rated contractholder liabilities | |||||
Schedule of Investments [Line Items] | |||||
Unrealized gains (losses) for assets still held: | $ 984 | $ 300 | $ 142 | $ 769 | |
California | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 28.00% | 28.00% | |||
Texas | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 9.00% | 9.00% | |||
New York | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 8.00% | 8.00% | |||
Europe | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 7.00% | 7.00% | |||
Asia | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 2.00% | 2.00% | |||
Australia | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loan, concentration percentage | 1.00% | 1.00% | |||
NAIC Other Than High or Highest Quality Rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 952 | $ 952 | 342 | ||
NAIC High or Highest Quality Rating | Fixed maturities | |||||
Schedule of Investments [Line Items] | |||||
Gross Unrealized Losses | $ 1,450 | $ 1,450 | $ 973 |
Investments Investments (Amorti
Investments Investments (Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturities) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Available-for-sale, Amortized Cost | ||||
Due in one year or less | $ 17,494 | |||
Due after one year through five years | 51,138 | |||
Due after five years through ten years | 67,575 | |||
Due after ten years | 185,427 | |||
Amortized Cost | 353,812 | $ 346,574 | ||
Available-for-sale, Fair Value | ||||
Due in one year or less | 18,078 | |||
Due after one year through five years | 54,309 | |||
Due after five years through ten years | 75,812 | |||
Due after ten years | 226,207 | |||
Fair Value | [2] | 407,944 | [1] | 391,096 |
Held-to-maturity, Amortized Cost | ||||
Due in one year or less | 114 | |||
Due after one year through five years | 0 | |||
Due after five years through ten years | 588 | |||
Due after ten years | 893 | |||
Amortized Cost | [2] | 1,875 | [3] | 1,933 |
Held-to-maturity, Fair Value | ||||
Due in one year or less | 116 | |||
Due after one year through five years | 0 | |||
Due after five years through ten years | 659 | |||
Due after ten years | 1,153 | |||
Fair Value | 2,231 | 2,302 | ||
Asset-backed securities | ||||
Available-for-sale, Amortized Cost | ||||
Debt Maturities, without single maturity date | 13,989 | |||
Available-for-sale, Fair Value | ||||
Debt Maturities, without single maturity date | 13,936 | |||
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 | 15,089 | |||
Available-for-sale, Fair Value | ||||
Debt Maturities, without single maturity date | 16,262 | |||
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 | 3,100 | |||
Available-for-sale, Fair Value | ||||
Debt Maturities, without single maturity date | 3,340 | |||
Held-to-maturity, Amortized Cost | ||||
Debt Maturities, without single maturity date | 280 | |||
Held-to-maturity, Fair Value | ||||
Debt Maturities, without single maturity date | 303 | |||
Prudential Netting Agreement | U.S. private corporate securities | ||||
Available-for-sale, Fair Value | ||||
Fair Value | 6,466 | 4,751 | ||
Fixed maturities | ||||
Available-for-sale, Amortized Cost | ||||
Amortized Cost | 353,812 | 346,574 | ||
Available-for-sale, Fair Value | ||||
Fair Value | 407,944 | 391,096 | ||
Held-to-maturity, Amortized Cost | ||||
Amortized Cost | 1,884 | 1,933 | ||
Held-to-maturity, Fair Value | ||||
Fair Value | 2,231 | 2,302 | ||
Fixed maturities | U.S. private corporate securities | ||||
Available-for-sale, Amortized Cost | ||||
Amortized Cost | 35,145 | 34,410 | ||
Available-for-sale, Fair Value | ||||
Fair Value | 38,159 | 36,533 | ||
Fixed maturities | Asset-backed securities | ||||
Available-for-sale, Amortized Cost | ||||
Amortized Cost | 13,989 | 13,067 | ||
Available-for-sale, Fair Value | ||||
Fair Value | 13,936 | 13,174 | ||
Fixed maturities | Commercial mortgage-backed securities | ||||
Available-for-sale, Amortized Cost | ||||
Amortized Cost | 15,089 | 14,978 | ||
Available-for-sale, Fair Value | ||||
Fair Value | 16,262 | 15,574 | ||
Fixed maturities | Residential mortgage-backed securities | ||||
Available-for-sale, Amortized Cost | ||||
Amortized Cost | 3,100 | 3,044 | ||
Available-for-sale, Fair Value | ||||
Fair Value | 3,340 | 3,201 | ||
Held-to-maturity, Amortized Cost | ||||
Amortized Cost | 280 | 310 | ||
Held-to-maturity, Fair Value | ||||
Fair Value | 303 | 331 | ||
Fixed maturities | Prudential Netting Agreement | ||||
Held-to-maturity, Amortized Cost | ||||
Amortized Cost | 4,998 | 4,998 | ||
Held-to-maturity, Fair Value | ||||
Fair Value | 5,603 | 5,401 | ||
Fixed maturities | Prudential Netting Agreement | U.S. private corporate securities | ||||
Available-for-sale, Amortized Cost | ||||
Amortized Cost | 6,466 | 4,751 | ||
Available-for-sale, Fair Value | ||||
Fair Value | $ 6,466 | $ 4,757 | ||
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||
[3] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. |
Investments (Fixed Maturity Pro
Investments (Fixed Maturity Proceeds) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Securities [Line Items] | ||||
Proceeds from maturities/prepayments - AFS | $ 20,664 | $ 25,681 | ||
Proceeds from maturities/prepayments - HTM | 58 | 35 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities [Line Items] | ||||
Proceeds from sales | $ 5,217 | $ 6,659 | 10,370 | 16,821 |
Proceeds from maturities/prepayments - AFS | 5,539 | 4,704 | 10,422 | 9,192 |
Gross investment gains from sales and maturities | 405 | 228 | 873 | 711 |
Gross investment losses from sales and maturities | (149) | (95) | (210) | (283) |
OTTI recognized in earnings | (64) | (99) | ||
Write-down recognized in earnings | (64) | (155) | ||
(Addition to) release of allowance for credit losses - AFS | (80) | (238) | ||
Fixed maturities | Held-to-maturity | ||||
Debt Securities [Line Items] | ||||
Proceeds from maturities/prepayments - HTM | 22 | $ 23 | 63 | 37 |
(Addition to) release of allowance for credit Losses - HTM | $ 0 | 0 | ||
Fixed maturities | Available-for-sale | ||||
Debt Securities [Line Items] | ||||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | 128 | 332 | ||
Fixed maturities | Held-to-maturity | ||||
Debt Securities [Line Items] | ||||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ 5 | $ 2 |
Investments (Credit Losses Reco
Investments (Credit Losses Recognized In Earnings on Fixed Maturity Securities Held by the Company) (Details) - Fixed maturities $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Available-for-sale | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | $ 0 |
Additions to allowance for credit losses not previously recorded | 244 |
Reductions for securities sold during the period | (28) |
Additions/reductions on securities with previous allowance | 22 |
Balance, ending of period | 238 |
Available-for-sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Additions to allowance for credit losses not previously recorded | 0 |
Reductions for securities sold during the period | 0 |
Additions/reductions on securities with previous allowance | 0 |
Balance, ending of period | 0 |
Available-for-sale | Foreign government bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Additions to allowance for credit losses not previously recorded | 38 |
Reductions for securities sold during the period | 0 |
Additions/reductions on securities with previous allowance | 0 |
Balance, ending of period | 38 |
Available-for-sale | U.S. and Foreign Corporate Securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Additions to allowance for credit losses not previously recorded | 205 |
Reductions for securities sold during the period | (28) |
Additions/reductions on securities with previous allowance | 22 |
Balance, ending of period | 199 |
Available-for-sale | Asset-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Additions to allowance for credit losses not previously recorded | 0 |
Reductions for securities sold during the period | 0 |
Additions/reductions on securities with previous allowance | 0 |
Balance, ending of period | 0 |
Available-for-sale | Commercial mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Additions to allowance for credit losses not previously recorded | 1 |
Reductions for securities sold during the period | 0 |
Additions/reductions on securities with previous allowance | 0 |
Balance, ending of period | 1 |
Available-for-sale | Residential mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Additions to allowance for credit losses not previously recorded | 0 |
Reductions for securities sold during the period | 0 |
Additions/reductions on securities with previous allowance | 0 |
Balance, ending of period | 0 |
Held-to-maturity | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Cumulative effect of adoption of ASU 2016-13 | 9 |
Balance, ending of period | 9 |
Held-to-maturity | U.S. Treasury securities and obligations of U.S. government authorities and agencies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Cumulative effect of adoption of ASU 2016-13 | 0 |
Balance, ending of period | 0 |
Held-to-maturity | Foreign government bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Cumulative effect of adoption of ASU 2016-13 | 0 |
Balance, ending of period | 0 |
Held-to-maturity | U.S. and Foreign Corporate Securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Cumulative effect of adoption of ASU 2016-13 | 9 |
Balance, ending of period | 9 |
Held-to-maturity | Asset-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Cumulative effect of adoption of ASU 2016-13 | 0 |
Balance, ending of period | 0 |
Held-to-maturity | Commercial mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Cumulative effect of adoption of ASU 2016-13 | 0 |
Balance, ending of period | 0 |
Held-to-maturity | Residential mortgage-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Balance, beginning of period | 0 |
Cumulative effect of adoption of ASU 2016-13 | 0 |
Balance, ending of period | $ 0 |
Investments (Assets Supporting
Investments (Assets Supporting Experience-Rated Contractholder Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | $ 22,152 | $ 20,646 | |
Assets supporting experience-rated contractholder liabilities, at fair value | [1] | 23,245 | 21,597 |
Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 19,385 | 18,904 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 20,328 | 19,530 | |
Equity securities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,533 | 1,465 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,683 | 1,790 | |
Short-term investments and cash equivalents | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,234 | 277 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,234 | 277 | |
Corporate securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 13,492 | 13,143 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 14,190 | 13,603 | |
Commercial mortgage-backed securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,832 | 1,845 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,921 | 1,896 | |
Residential mortgage-backed securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,142 | 1,134 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,200 | 1,158 | |
Asset-backed securities | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 1,762 | 1,639 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 1,772 | 1,662 | |
Foreign government bonds | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 803 | 802 | |
Assets supporting experience-rated contractholder liabilities, at fair value | 808 | 814 | |
U.S. government authorities and agencies and obligations of U.S. states | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost or cost | 354 | 341 | |
Assets supporting experience-rated contractholder liabilities, at fair value | $ 437 | $ 397 | |
Public Securities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost percentage | 78.00% | 77.00% | |
Collateralized loan obligations | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at fair value | $ 1,141 | $ 1,060 | |
NAIC High or Highest Quality Rating | Fixed maturities | |||
Assets Supporting Experience-Rated Contractholder Liabilities [Line Items] | |||
Assets supporting experience-rated contractholder liabilities, at amortized cost percentage | 93.00% | 94.00% | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Concentrations of
Investments (Concentrations of Credit Risk) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | $ 76,309 | $ 75,663 |
Concentrations of credit risk at fair value | 89,548 | 91,376 |
Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 10,798 | 10,838 |
Concentrations of credit risk at fair value | 13,418 | 13,338 |
Assets supporting experience-rated contractholder liabilities | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 647 | 653 |
Concentrations of credit risk at fair value | 652 | 664 |
Assets supporting experience-rated contractholder liabilities | Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 15 | 15 |
Concentrations of credit risk at fair value | 16 | 16 |
Available-for-sale | Fixed maturities | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 74,765 | 74,118 |
Concentrations of credit risk at fair value | 87,747 | 89,546 |
Available-for-sale | Fixed maturities | Investments in South Korean government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 10,783 | 10,823 |
Concentrations of credit risk at fair value | 13,402 | 13,322 |
Held-to-maturity | Fixed maturities | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 874 | 869 |
Concentrations of credit risk at fair value | 1,127 | 1,143 |
Trading | Fixed maturities | Investments in Japanese government and government agency securities: | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Concentrations of credit risk at amortized cost | 23 | 23 |
Concentrations of credit risk at fair value | $ 22 | $ 23 |
Investments (Commercial Mortgag
Investments (Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 62,677 | $ 62,835 |
Other loans | 1,037 | 845 |
Total commercial mortgage and other loans | $ 63,469 | $ 63,559 |
% of Total | 100.00% | 100.00% |
Net carrying value of commercial loans held for sale | $ 682 | $ 228 |
Commercial Mortgage Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 58,699 | $ 59,363 |
% of Total | 93.70% | 94.50% |
Commercial mortgage and agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Allowance for credit losses, Commercial mortgage and agricultural property loans | $ (238) | $ (117) |
Total net loans | 62,439 | 62,718 |
Uncollateralized loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 680 | 656 |
Residential property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 109 | 124 |
Other Collateralized Loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Other loans | 248 | 65 |
Other loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Total net loans | 1,030 | 841 |
Allowance for credit losses, Other loans | (7) | (4) |
Office | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 12,642 | $ 13,462 |
% of Total | 20.20% | 21.40% |
Retail | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 7,739 | $ 8,379 |
% of Total | 12.30% | 13.30% |
Apartments/Multi-Family | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 18,031 | $ 17,348 |
% of Total | 28.80% | 27.60% |
Industrial | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 13,292 | $ 13,226 |
% of Total | 21.20% | 21.10% |
Hospitality | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 2,378 | $ 2,415 |
% of Total | 3.80% | 3.90% |
Other | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 4,617 | $ 4,533 |
% of Total | 7.40% | 7.20% |
Agricultural property loans | ||
Commercial Mortgage and Other Loans [Line Items] | ||
Commercial mortgage and agricultural property loans by property type | $ 3,978 | $ 3,472 |
% of Total | 6.30% | 5.50% |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | $ 121 | $ 128 |
Cumulative effect of adoption of ASU 2016-13 | 115 | |
Addition to (release of) allowance for credit losses | 6 | (6) |
Charge-offs, net of recoveries | (1) | |
Change in foreign exchange | 0 | |
Other | 3 | |
Total ending balance | 245 | 121 |
Commercial Mortgage Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 114 | 120 |
Cumulative effect of adoption of ASU 2016-13 | 110 | |
Addition to (release of) allowance for credit losses | 6 | (5) |
Charge-offs, net of recoveries | (1) | |
Change in foreign exchange | 0 | |
Other | 0 | |
Total ending balance | 230 | 114 |
Agricultural Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 3 | 3 |
Cumulative effect of adoption of ASU 2016-13 | 5 | |
Addition to (release of) allowance for credit losses | 0 | 0 |
Charge-offs, net of recoveries | 0 | |
Change in foreign exchange | 0 | |
Other | 0 | |
Total ending balance | 8 | 3 |
Residential Property Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 0 | 0 |
Cumulative effect of adoption of ASU 2016-13 | 0 | |
Addition to (release of) allowance for credit losses | 0 | 0 |
Charge-offs, net of recoveries | 0 | |
Change in foreign exchange | 0 | |
Other | 0 | |
Total ending balance | 0 | 0 |
Other Collateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 0 | 0 |
Cumulative effect of adoption of ASU 2016-13 | 0 | |
Addition to (release of) allowance for credit losses | 0 | 0 |
Charge-offs, net of recoveries | 0 | |
Change in foreign exchange | 0 | |
Other | 3 | |
Total ending balance | 3 | 0 |
Uncollateralized Loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance, beginning of year | 4 | 5 |
Cumulative effect of adoption of ASU 2016-13 | 0 | |
Addition to (release of) allowance for credit losses | 0 | (1) |
Charge-offs, net of recoveries | 0 | |
Change in foreign exchange | 0 | |
Other | 0 | |
Total ending balance | $ 4 | $ 4 |
Investments (Loan-to-value rati
Investments (Loan-to-value ratios) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | $ 2,420 | |
2019 | 9,879 | |
2018 | 9,055 | |
2017 | 7,239 | |
2016 | 6,813 | |
Prior | 23,293 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 58,699 | $ 59,363 |
Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 646 | |
2019 | 554 | |
2018 | 410 | |
2017 | 558 | |
2016 | 400 | |
Prior | 1,410 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 3,978 | $ 3,472 |
Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 3,066 | |
2019 | 10,433 | |
2018 | 9,465 | |
2017 | 7,797 | |
2016 | 7,213 | |
Prior | 24,703 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 62,677 | |
0%-59.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 346 | |
2019 | 2,791 | |
2018 | 3,067 | |
2017 | 3,462 | |
2016 | 3,296 | |
Prior | 17,859 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 30,821 | |
0%-59.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 534 | |
2019 | 483 | |
2018 | 376 | |
2017 | 555 | |
2016 | 400 | |
Prior | 1,410 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 3,758 | |
0%-59.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 880 | |
2019 | 3,274 | |
2018 | 3,443 | |
2017 | 4,017 | |
2016 | 3,696 | |
Prior | 19,269 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 34,579 | |
60%-69.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,265 | |
2019 | 4,057 | |
2018 | 3,457 | |
2017 | 2,668 | |
2016 | 2,886 | |
Prior | 4,506 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 18,839 | |
60%-69.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 112 | |
2019 | 71 | |
2018 | 34 | |
2017 | 3 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 220 | |
60%-69.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 1,377 | |
2019 | 4,128 | |
2018 | 3,491 | |
2017 | 2,671 | |
2016 | 2,886 | |
Prior | 4,506 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 19,059 | |
70%-79.99% | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 809 | |
2019 | 3,021 | |
2018 | 2,531 | |
2017 | 1,091 | |
2016 | 570 | |
Prior | 720 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 8,742 | |
70%-79.99% | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 0 | |
70%-79.99% | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 809 | |
2019 | 3,021 | |
2018 | 2,531 | |
2017 | 1,091 | |
2016 | 570 | |
Prior | 720 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 8,742 | |
80% or greater | Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 10 | |
2018 | 0 | |
2017 | 18 | |
2016 | 61 | |
Prior | 208 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 297 | |
80% or greater | Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | 0 | |
80% or greater | Commercial mortgage and agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 0 | |
2019 | 10 | |
2018 | 0 | |
2017 | 18 | |
2016 | 61 | |
Prior | 208 | |
Revolving Loans | 0 | |
Recording investment gross of allowance for credit losses | $ 297 |
Investments (Debt Service Cover
Investments (Debt Service Coverage Ratio) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commercial Mortgage Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 58,699 | $ 59,363 |
Commercial Mortgage Loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 55,921 | 56,346 |
Commercial Mortgage Loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 2,465 | 2,708 |
Commercial Mortgage Loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 313 | 309 |
Agricultural property loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,978 | 3,472 |
Agricultural property loans | ≥ 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 3,870 | 3,401 |
Agricultural property loans | 1.0X to 1.2X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | 80 | 57 |
Agricultural property loans | Less than 1.0X | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, before Allowance for Credit Loss | $ 28 | $ 14 |
Investments (Analysis of Past D
Investments (Analysis of Past Due Commercial Mortgage and Other Loans) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Current | $ 63,392 | $ 63,663 |
Total Past Due | 322 | 17 |
Total Loans | 63,714 | 63,680 |
Non-Accrual Status | 64 | 59 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | 2 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 314 | 0 |
90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7 | 15 |
Commercial Mortgage Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 58,386 | 59,363 |
Total Past Due | 313 | 0 |
Total Loans | 58,699 | 59,363 |
Non-Accrual Status | 44 | 44 |
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 | 313 | 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 | 3,971 | 3,458 |
Total Past Due | 7 | 14 |
Total Loans | 3,978 | 3,472 |
Non-Accrual Status | 15 | 13 |
Agricultural property loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1 |
Agricultural property loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | 0 |
Agricultural property loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6 | 13 |
Residential Property Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 107 | 121 |
Total Past Due | 2 | 3 |
Total Loans | 109 | 124 |
Non-Accrual Status | 1 | 2 |
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 | 1 | 2 |
Other Collateralized Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 248 | 65 |
Total Past Due | 0 | 0 |
Total Loans | 248 | 65 |
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 | 680 | 656 |
Total Past Due | 0 | 0 |
Total Loans | 680 | 656 |
Non-Accrual Status | 4 | 0 |
Uncollateralized loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Uncollateralized loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Loans | 90 days or more past due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Interest | $ 0 | $ 0 |
Investments (Other Invested Ass
Investments (Other Invested Assets) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Other Invested Assets [Line Items] | ||||
Other invested assets | [3] | $ 16,757 | [1],[2] | $ 15,606 |
LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 11,356 | 11,157 | ||
Real estate held through direct ownership | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 2,451 | 2,388 | ||
Derivative instruments | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 1,655 | 877 | ||
Other | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 1,295 | 1,184 | ||
Mortgage Debt | Real estate-related | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 459 | 537 | ||
Equity method | LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 7,377 | 6,944 | ||
Equity method | Private equity | LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 3,830 | 3,625 | ||
Equity method | Hedge funds | LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 2,166 | 1,947 | ||
Equity method | Real estate-related | LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 1,381 | 1,372 | ||
Fair Value | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 200 | 36 | ||
Fair Value | LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 3,979 | 4,213 | ||
Fair Value | Private equity | LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 1,548 | 1,705 | ||
Fair Value | Hedge funds | LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | 2,100 | 2,172 | ||
Fair Value | Real estate-related | LPs/LLCs | ||||
Other Invested Assets [Line Items] | ||||
Other invested assets | $ 331 | $ 336 | ||
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. | |||
[2] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. | |||
[3] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Accrued Investment
Investments (Accrued Investment Income) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Net Investment Income [Line Items] | ||||
Accrued investment income | [2] | $ 3,296 | [1] | $ 3,330 |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Accrued investment income | 2,739 | |||
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Accrued investment income | 9 | |||
Commercial mortgage and other loans | ||||
Net Investment Income [Line Items] | ||||
Accrued investment income | 198 | |||
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Accrued investment income | 301 | |||
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Accrued investment income | 36 | |||
Short-term investments and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Accrued investment income | $ 13 | |||
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 4,358 | $ 4,644 | $ 8,786 | $ 9,112 |
Less: investment expenses | (172) | (254) | (398) | (506) |
Net investment income | 4,186 | 4,390 | 8,388 | 8,606 |
Assets supporting experience-rated contractholder liabilities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 164 | 182 | 348 | 367 |
Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 55 | 51 | 83 | 81 |
Commercial mortgage and other loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 618 | 627 | 1,258 | 1,227 |
Policy loans | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 150 | 152 | 303 | 303 |
Other invested assets | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 147 | 271 | 278 | 476 |
Short-term investments and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 65 | 115 | 152 | 233 |
Available-for-sale | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 3,067 | 3,150 | 6,179 | 6,238 |
Held-to-maturity | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 58 | 58 | 117 | 115 |
Trading | Fixed maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 34 | $ 38 | $ 68 | $ 72 |
Investments (Realized Investmen
Investments (Realized Investment Gains Losses, Net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | $ (3,752) | $ (336) | $ (2,085) | $ (1,102) |
Fixed maturities | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 112 | 69 | 270 | 329 |
Commercial mortgage and other loans | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 2 | 4 | 24 | 14 |
Investment real estate | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | 11 | 0 | 10 | 0 |
LPs/LLCs | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | (3) | 2 | (6) | (3) |
Derivatives | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | (3,881) | (411) | (2,389) | (1,443) |
Other | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | $ 7 | $ 0 | $ 6 | $ 1 |
Investments (Net Unrealized Gai
Investments (Net Unrealized Gains Losses on Investments) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | $ 56,866 | $ 45,339 |
Fixed maturities | Available-for-sale | OTTI | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 243 | |
Fixed maturities | Available-for-sale | All Other | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 44,279 | |
Fixed maturities | Available-for-sale | With an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (40) | |
Fixed maturities | Available-for-sale | Without an allowance | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 54,410 | |
Derivatives designated as cash flow hedges | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | 2,498 | 832 |
Other investments | ||
Gain (Loss) on Securities [Line Items] | ||
Net unrealized gains (losses) on investments | (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 | Jun. 30, 2020 | Dec. 31, 2019 |
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | $ 10,488 | $ 9,681 |
Total cash collateral for loaned securities | 3,447 | 4,213 |
Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 9,930 | 9,681 |
Total cash collateral for loaned securities | 3,447 | 4,213 |
Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 558 | 0 |
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 | 10,074 | 9,431 |
Total cash collateral for loaned securities | 0 | 9 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 9,516 | 9,431 |
Total cash collateral for loaned securities | 0 | 9 |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total securities sold under agreements to repurchase | 558 | 0 |
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 | 101 | 33 |
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 | 101 | 33 |
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 | 381 | 244 |
Foreign government bonds | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 381 | 244 |
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 cash collateral for loaned securities | 2,375 | 2,996 |
U.S. public corporate securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 2,375 | 2,996 |
U.S. 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 |
Foreign public corporate securities | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 536 | 762 |
Foreign public corporate securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 536 | 762 |
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 | 2 |
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 | 2 |
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 | 414 | 250 |
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 | 414 | 250 |
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 | 52 | 167 |
Equity securities | Overnight & Continuous | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | 52 | 167 |
Equity securities | Up to 30 Days | ||
Transfer Of Certain Financial Assets Accounted For As Secured Borrowings [Line Items] | ||
Total cash collateral for loaned securities | $ 0 | $ 0 |
Variable Interest Entities (Ass
Variable Interest Entities (Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | ||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | $ 915,387 | $ 896,552 | |
Total liabilities of consolidated VIEs | 848,879 | 832,833 | |
Consolidated VIEs for Which the Company is the Investment Manager | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 5,156 | 5,048 | |
Total liabilities of consolidated VIEs | 1,583 | 1,578 | |
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 | 29 | 47 | |
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 | 943 | 883 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 2,379 | 2,199 | |
Consolidated VIEs for Which the Company is the Investment Manager | Cash and cash equivalents | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 153 | 166 | |
Consolidated VIEs for Which the Company is the Investment Manager | Accrued investment income | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 5 | 4 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other assets | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 422 | 450 | |
Consolidated VIEs for Which the Company is the Investment Manager | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 386 | 304 | |
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] | 1,197 | 1,274 |
Consolidated VIEs for Which the Company is the Investment Manager | Available-for-sale | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 99 | 104 | |
Consolidated VIEs for Which the Company is the Investment Manager | Held-to-maturity | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 83 | 83 | |
Consolidated VIEs for Which the Company is the Investment Manager | Trading | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 1,043 | 1,112 | |
Consolidated VIEs for Which the Company is the Investment Manager | ASU 2015-02, Wholly-owned by consolidated subsidiaries | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | $ 2,742 | 2,668 | |
Consolidated VIEs for Which the Company is the Investment Manager | Minimum | Notes Issued by Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
VIEs Liabilities, maturities obligations (greater than) | 4 years | ||
Consolidated VIEs for Which the Company is the Investment Manager | Maximum | Notes Issued by Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
VIEs Liabilities, maturities obligations (greater than) | 9 years | ||
Other Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | $ 1,947 | 1,910 | |
Total liabilities of consolidated VIEs | 15 | 13 | |
Other Consolidated VIEs | Assets supporting experience-rated contractholder liabilities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 2 | 4 | |
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 | 151 | 89 | |
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 | 663 | 689 | |
Other Consolidated VIEs | Other liabilities | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 15 | 13 | |
Other Consolidated VIEs | Notes Issued by Consolidated VIEs | |||
Variable Interest Entity [Line Items] | |||
Total liabilities of consolidated VIEs | 0 | 0 | |
Other Consolidated VIEs | Available-for-sale | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 284 | 285 | |
Other Consolidated VIEs | Held-to-maturity | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | 843 | 839 | |
Other Consolidated VIEs | Trading | Fixed maturities | |||
Variable Interest Entity [Line Items] | |||
Total assets of consolidated VIEs | $ 0 | $ 0 | |
[1] | See Note 4 for details of balances associated with variable interest entities. |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Total liabilities | $ 848,879,000,000 | $ 832,833,000,000 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 0 | |
Unconsolidated VIEs | Fixed maturities, available-for-sale, Fixed maturities, trading, Equity securities and Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss on these investments | 1,015,000,000 | 1,021,000,000 |
VIEs and Non-VIEs | LPs/LLCs | Other invested assets | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss on these investments | $ 11,356,000,000 | $ 11,157,000,000 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Total derivative assets | $ 1,644 | $ 867 |
Total derivative liabilities | 684 | 831 |
Anticipated pre-tax gain (loss) reclassified from accumulated other comprehensive income (loss) to earnings | $ 328 | |
Maximum Length of Time Hedged in Cash Flow Hedge | 10 years | |
Net investment hedges income (loss) before taxes | $ 546 | 536 |
Credit Derivatives [Line Items] | ||
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 14 | 21 |
Credit Derivative Protection Purchased Notional Amount | $ 440 | 6 |
Single Name Credit Default Swaps | ||
Credit Derivatives [Line Items] | ||
Credit Derivatives Written Max Length Of Maturities (less than) | 1 year | |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 1 | |
Credit Default Swaps Referencing Indices | ||
Credit Derivatives [Line Items] | ||
Credit Derivatives Written Max Length Of Maturities (less than) | 27 years | |
Credit Default Swap, Buying Protection | ||
Credit Derivatives [Line Items] | ||
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ (10) | $ 0 |
Derivative Instruments (Gross N
Derivative Instruments (Gross Notional Amount and Fair Value of Derivatives Contracts) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 30,763 | $ 14,386 |
Derivative Liability, Fair Value, Gross Liability | (13,685) | (7,536) |
Derivative, Notional Amount | 424,689 | 379,860 |
Net Embedded Derivative Liability | (27,110) | (14,035) |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 4,378 | 2,121 |
Derivative Liability, Fair Value, Gross Liability | (177) | (433) |
Derivative, Notional Amount | 28,956 | 27,669 |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,220 | 628 |
Derivative Liability, Fair Value, Gross Liability | (105) | (73) |
Derivative, Notional Amount | 3,227 | 3,257 |
Designated as Hedging Instrument | Interest Rate Forward | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 36 | 4 |
Derivative Liability, Fair Value, Gross Liability | (1) | (1) |
Derivative, Notional Amount | 202 | 205 |
Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 73 | 22 |
Derivative Liability, Fair Value, Gross Liability | (12) | (57) |
Derivative, Notional Amount | 2,155 | 1,461 |
Designated as Hedging Instrument | Currency Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 3,049 | 1,467 |
Derivative Liability, Fair Value, Gross Liability | (59) | (302) |
Derivative, Notional Amount | 23,372 | 22,746 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 26,385 | 12,265 |
Derivative Liability, Fair Value, Gross Liability | (13,508) | (7,103) |
Derivative, Notional Amount | 395,733 | 352,191 |
Not Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 22,286 | 10,249 |
Derivative Liability, Fair Value, Gross Liability | (11,151) | (4,861) |
Derivative, Notional Amount | 153,866 | 141,162 |
Not Designated as Hedging Instrument | Interest Rate Forward | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 28 | 18 |
Derivative Liability, Fair Value, Gross Liability | 0 | (3) |
Derivative, Notional Amount | 2,745 | 2,218 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 308 | 208 |
Derivative Liability, Fair Value, Gross Liability | (235) | (214) |
Derivative, Notional Amount | 30,785 | 26,604 |
Not Designated as Hedging Instrument | Foreign Exchange Option | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 0 | 0 |
Not Designated as Hedging Instrument | Currency Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,243 | 740 |
Derivative Liability, Fair Value, Gross Liability | (337) | (345) |
Derivative, Notional Amount | 12,819 | 13,874 |
Not Designated as Hedging Instrument | Interest Rate Future | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 6 | 4 |
Derivative Liability, Fair Value, Gross Liability | (44) | (38) |
Derivative, Notional Amount | 17,326 | 17,095 |
Not Designated as Hedging Instrument | Interest Rate Option | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1,813 | 339 |
Derivative Liability, Fair Value, Gross Liability | (267) | (238) |
Derivative, Notional Amount | 14,518 | 16,496 |
Not Designated as Hedging Instrument | Credit Default Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 20 | 21 |
Derivative Liability, Fair Value, Gross Liability | (17) | 0 |
Derivative, Notional Amount | 2,529 | 798 |
Not Designated as Hedging Instrument | Equity Future | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 2 | 0 |
Derivative Liability, Fair Value, Gross Liability | (84) | (3) |
Derivative, Notional Amount | 7,243 | 1,802 |
Not Designated as Hedging Instrument | Equity Option | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 494 | 679 |
Derivative Liability, Fair Value, Gross Liability | (302) | (765) |
Derivative, Notional Amount | 45,519 | 32,657 |
Not Designated as Hedging Instrument | Total Return Swap | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 184 | 6 |
Derivative Liability, Fair Value, Gross Liability | (1,071) | (636) |
Derivative, Notional Amount | 24,798 | 18,218 |
Not Designated as Hedging Instrument | Other Contract | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | 1,260 | 1,258 |
Not Designated as Hedging Instrument | Synthetic Gics | ||
Derivative [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 1 | 1 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative, Notional Amount | $ 82,325 | $ 80,009 |
Derivative Instruments (Hedged
Derivative Instruments (Hedged Item Offset By Derivatives Achieving Fair Value Hedge Accounting) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Derivative [Line Items] | ||||
Fixed maturities, available-for-sale | [2] | $ 407,944 | [1] | $ 391,096 |
Commercial mortgage and other loans | [2],[3] | 63,469 | 63,559 | |
Policyholders’ account balances | (158,237) | [1] | (152,110) | |
Future policy benefits | (312,759) | [1] | (293,527) | |
Carrying Amount of the Hedged Assets (Liabilities) | ||||
Derivative [Line Items] | ||||
Fixed maturities, available-for-sale | 397 | 389 | ||
Commercial mortgage and other loans | 22 | 23 | ||
Policyholders’ account balances | (1,721) | (1,376) | ||
Future policy benefits | (1,277) | (676) | ||
Cumulative Adjustment Included in Carrying Amount | ||||
Derivative [Line Items] | ||||
Fixed maturities, available-for-sale | 92 | 64 | ||
Commercial mortgage and other loans | 2 | 2 | ||
Policyholders’ account balances | (425) | (107) | ||
Future policy benefits | $ (443) | $ (172) | ||
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||
[3] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. |
Derivative Instruments (Offsett
Derivative Instruments (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Assets | ||
Gross Amounts of Recognized Financial Instruments | $ 30,611 | $ 14,303 |
Gross Amounts Offset in the Statements of Financial Position | (29,119) | (13,519) |
Net Amounts Presented in the Statements of Financial Position | 1,492 | 784 |
Financial Instruments/Collateral | (849) | (607) |
Net Amount | 643 | 177 |
Securities purchased under agreement to resell | ||
Gross Amounts of Recognized Financial Instruments | 2,355 | 1,012 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 2,355 | 1,012 |
Financial Instruments/Collateral | (2,355) | (1,012) |
Net Amount | 0 | 0 |
Total assets | ||
Gross Amounts of Recognized Financial Instruments | 32,966 | 15,315 |
Gross Amounts Offset in the Statements of Financial Position | (29,119) | (13,519) |
Net Amounts Presented in the Statements of Financial Position | 3,847 | 1,796 |
Financial Instruments/Collateral | (3,204) | (1,619) |
Net Amount | 643 | 177 |
Derivative Liabilities | ||
Gross Amounts of Recognized Financial Instruments | 13,676 | 7,528 |
Gross Amounts Offset in the Statements of Financial Position | (13,001) | (6,705) |
Net Amounts Presented in the Statements of Financial Position | 675 | 823 |
Financial Instruments/Collateral | (40) | (244) |
Net Amount | 635 | 579 |
Securities sold under agreement to repurchase | ||
Gross Amounts of Recognized Financial Instruments | 10,488 | 9,681 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts Presented in the Statements of Financial Position | 10,488 | 9,681 |
Financial Instruments/Collateral | (10,488) | (9,681) |
Net Amount | 0 | 0 |
Total liabilities | ||
Gross Amounts of Recognized Financial Instruments | 24,164 | 17,209 |
Gross Amounts Offset in the Statements of Financial Position | (13,001) | (6,705) |
Net Amounts Presented in the Statements of Financial Position | 11,163 | 10,504 |
Financial Instruments/Collateral | (10,528) | (9,925) |
Net Amount | $ 635 | $ 579 |
Derivative Instruments (Financi
Derivative Instruments (Financial Statement Classification and Impact of Derivatives Used in Qualifying and Non-qualifying Hedge Relationships) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ (3,879) | $ (412) | $ (2,385) | $ (1,443) |
Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3,940) | (461) | (2,465) | (1,481) |
Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 84 | 73 | 166 | 146 |
Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (99) | 35 | 188 | (6) |
Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (5) | (5) | 0 |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 11 | 3 | 12 | 4 |
Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 8 | 7 | 9 | 12 |
Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (694) | 243 | 1,673 | 199 |
AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Fair value hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | (7) | (27) | (14) |
Fair value hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2) | (2) | (4) | (4) |
Fair value hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Fair value hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Fair value hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 6 | 101 | 330 | 168 |
Fair value hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | 80 | 281 | 131 |
Fair value hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Fair Value Hedged Item | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (1) | 8 | 28 | 11 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 0 | 1 | 1 | (3) |
Fair Value Hedged Item | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 4 | 6 | 10 | 13 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 2 | 4 | 6 | 9 |
Fair Value Hedged Item | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 0 | 0 | 0 | 0 |
Fair Value Hedged Item | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 0 | 0 | 0 | 0 |
Fair Value Hedged Item | Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 5 | (98) | (318) | (164) |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 11 | 3 | 12 | 4 |
Fair Value Hedged Item | Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 7 | (73) | (272) | (119) |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | 8 | 7 | 9 | 12 |
Fair Value Hedged Item | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Change In Unrealized Gain (Loss) On Hedged Item In Fair Value Net Of Hedging Instrument | (3) | 0 | (3) | 0 |
Cash flow hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 61 | 48 | 79 | 41 |
Cash flow hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 82 | 69 | 160 | 137 |
Cash flow hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (99) | 40 | 193 | (6) |
Cash flow hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Cash flow hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Cash flow hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Cash flow hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (687) | 242 | 1,666 | 197 |
Net investment hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Net investment hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (4) | 1 | 10 | 2 |
Interest Rate | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (232) | 2,346 | 8,992 | 3,734 |
Interest Rate | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Fair value hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | (9) | (29) | (15) |
Interest Rate | Fair value hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (2) | (2) | (4) | (4) |
Interest Rate | Fair value hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Fair value hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Fair value hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 6 | 101 | 330 | 168 |
Interest Rate | Fair value hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | 80 | 279 | 131 |
Interest Rate | Fair value hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Fair Value Hedged Item | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (1) | 9 | 29 | 11 |
Interest Rate | Fair Value Hedged Item | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 4 | 5 | 9 | 11 |
Interest Rate | Fair Value Hedged Item | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Interest Rate | Fair Value Hedged Item | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Interest Rate | Fair Value Hedged Item | Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 5 | (98) | (318) | (164) |
Interest Rate | Fair Value Hedged Item | Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 9 | (73) | (270) | (119) |
Interest Rate | Fair Value Hedged Item | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 10 | 0 | 8 | (1) |
Interest Rate | Cash flow hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Interest Rate | Cash flow hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (8) | (1) | 44 | 22 |
Currency | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (103) | 122 | 230 | 84 |
Currency | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | (5) | (7) | 0 |
Currency | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 2 | 2 | 1 |
Currency | Fair value hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair value hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2 | 0 | 2 | 0 |
Currency | Fair value hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Fair Value Hedged Item | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | (1) | (1) | 0 |
Currency | Fair Value Hedged Item | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 1 | 1 | 2 |
Currency | Fair Value Hedged Item | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Currency | Fair Value Hedged Item | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Currency | Fair Value Hedged Item | Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Currency | Fair Value Hedged Item | Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | (2) | 0 | (2) | 0 |
Currency | Fair Value Hedged Item | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge | 0 | 0 | 0 | 0 |
Currency | Amortization of Gain(loss) excluded from assessment of effectiveness | Realized Investment Gains (Losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | ||
Currency | Amortization of Gain(loss) excluded from assessment of effectiveness | Net Investment Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | ||
Currency | Amortization of Gain(loss) excluded from assessment of effectiveness | Other Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | ||
Currency | Amortization of Gain(loss) excluded from assessment of effectiveness | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | ||
Currency | Amortization of Gain(loss) excluded from assessment of effectiveness | Interest Credited To Policyholders’ Account Balances | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | ||
Currency | Amortization of Gain(loss) excluded from assessment of effectiveness | Policyholder Benefts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | ||
Currency | Amortization of Gain(loss) excluded from assessment of effectiveness | AOCI | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (3) | (3) | ||
Currency | Cash flow hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 2 | 1 | 4 | 2 |
Currency | Cash flow hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Cash flow hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Cash flow hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Cash flow hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Cash flow hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Cash flow hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (10) | 14 | 91 | 5 |
Currency | Net investment hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency | Net investment hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (4) | 1 | 10 | 2 |
Currency/Interest Rate | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (86) | 20 | 731 | 204 |
Currency/Interest Rate | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 2 | 0 |
Currency/Interest Rate | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Cash flow hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 49 | 47 | 67 | 40 |
Currency/Interest Rate | Cash flow hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 82 | 69 | 160 | 137 |
Currency/Interest Rate | Cash flow hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (99) | 40 | 193 | (6) |
Currency/Interest Rate | Cash flow hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Cash flow hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Cash flow hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Cash flow hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (669) | 229 | 1,531 | 170 |
Currency/Interest Rate | Net investment hedges | Realized Investment Gains (Losses) | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Net Investment Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Other Income | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Interest Expense | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Interest Credited To Policyholders’ Account Balances | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | Policyholder Benefts | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Currency/Interest Rate | Net investment hedges | AOCI | Derivatives Designated as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (1) | 36 | (42) | 104 |
Credit | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Credit | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | (5,221) | (617) | 216 | (2,427) |
Equity | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Equity | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Other | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1 | 0 | 1 | 0 |
Other | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Other | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Other | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Other | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Other | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Other | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Realized Investment Gains (Losses) | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 1,702 | (2,368) | (12,593) | (3,180) |
Embedded Derivatives | Net Investment Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Other Income | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Interest Expense | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Interest Credited To Policyholders’ Account Balances | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | Policyholder Benefts | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | 0 | 0 | 0 | 0 |
Embedded Derivatives | AOCI | Derivatives Not Qualifying as Hedge Accounting Instruments: | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments Gain (Loss) Recognized In Income Net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments (Current
Derivative Instruments (Current Period Cash Flow Hedges in AOCI (loss) before Taxes) (Details) - Cash flow hedges in AOCI $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Balance, beginning | $ 832 |
Amount recorded in AOCI | 2,098 |
Amount reclassified from AOCI to income | (432) |
Balance, ending | 2,498 |
Interest Rate | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Amount recorded in AOCI | 52 |
Amount reclassified from AOCI to income | (8) |
Currency | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Amount recorded in AOCI | 95 |
Amount reclassified from AOCI to income | (4) |
Currency/Interest Rate | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |
Amount recorded in AOCI | 1,951 |
Amount reclassified from AOCI to income | $ (420) |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Credit Derivatives) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | $ 2,090 | $ 792 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 14 | 21 |
Single Name | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 100 | 100 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 1 |
Credit Default Index | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 1,990 | 692 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 14 | 20 |
NAIC 1 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 98 | 86 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 1 | 0 |
NAIC 1 | Single Name | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 48 | 36 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 0 |
NAIC 1 | Credit Default Index | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 50 | 50 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 1 | 0 |
NAIC 2 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 48 | 60 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 1 |
NAIC 2 | Single Name | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 48 | 60 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 1 |
NAIC 2 | Credit Default Index | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 0 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 0 |
NAIC 3 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 4 | 574 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 13 |
NAIC 3 | Single Name | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 4 | 4 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 0 |
NAIC 3 | Credit Default Index | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 570 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 13 |
NAIC 4 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 1,940 | 0 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 13 | 0 |
NAIC 4 | Single Name | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 0 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 0 |
NAIC 4 | Credit Default Index | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 1,940 | 0 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 13 | 0 |
NAIC 5 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 0 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 0 |
NAIC 5 | Single Name | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 0 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 0 |
NAIC 5 | Credit Default Index | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 0 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 0 |
NAIC 6 | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 72 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 7 |
NAIC 6 | Single Name | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 0 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | 0 | 0 |
NAIC 6 | Credit Default Index | ||
Derivative [Line Items] | ||
Credit Derivative, Maximum Exposure, Undiscounted | 0 | 72 |
Credit Risk Derivatives, at Fair Value, Asset Net (Liability) | $ 0 | $ 7 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Balances of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, available-for-sale | [2] | $ 407,944 | [1] | $ 391,096 |
Assets supporting experience-rated contractholder liabilities | [2] | 23,245 | 21,597 | |
Fixed maturities, trading | [2] | 3,933 | 3,884 | |
Equity securities | [2] | 7,010 | [1] | 7,522 |
Commercial mortgage and other loans | [2],[3] | 63,469 | 63,559 | |
Other invested assets | [2] | 16,757 | [1],[3] | 15,606 |
Short-term investments | 11,416 | [1] | 5,467 | |
Other assets | [2] | 21,301 | [1],[3] | 20,832 |
Separate account assets | 301,002 | [1] | 312,281 | |
TOTAL ASSETS | 915,387 | 896,552 | ||
Future policy benefits | 312,759 | [1] | 293,527 | |
Other liabilities | [2] | 18,573 | [1],[3] | 20,802 |
Total liabilities | 848,879 | 832,833 | ||
Netting | (29,119) | (13,519) | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net Liability | 27,110 | 14,035 | ||
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 | 26,400 | 12,800 | ||
Embedded Derivative, Fair Value Of Embedded Derivative Gross Asset | 300 | 700 | ||
Embedded Derivative, Fair Value Of Embedded Derivative Gross Liability | 26,700 | 13,500 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, available-for-sale | 407,944 | 391,096 | ||
Assets supporting experience-rated contractholder liabilities | 22,926 | 21,581 | ||
Fixed maturities, trading | 3,933 | 3,884 | ||
Equity securities | 6,873 | 7,385 | ||
Commercial mortgage and other loans | 682 | 228 | ||
Other invested assets | 2,301 | 1,433 | ||
Short-term investments | 8,976 | 3,936 | ||
Cash equivalents | 10,093 | 9,006 | ||
Other assets | 377 | 113 | ||
Separate account assets | 277,885 | 288,724 | ||
TOTAL ASSETS | 741,990 | 727,386 | ||
Future policy benefits | 26,439 | 12,831 | ||
Policyholders' account balances | 1,441 | 1,316 | ||
Other liabilities | 292 | 936 | ||
Notes issued by consolidated VIEs | 741 | 800 | ||
Total liabilities | 28,913 | 15,883 | ||
Assets Netting | (29,119) | (13,519) | ||
Liabilities Netting | (13,001) | (6,705) | ||
Netting | (16,118) | (6,814) | ||
Fair Value, Measurements, Recurring | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets Netting | (29,119) | (13,519) | ||
Fair Value, Measurements, Recurring | Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities Netting | (13,001) | (6,705) | ||
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 | 43,021 | 35,659 | ||
Assets supporting experience-rated contractholder liabilities | 208 | 185 | ||
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 | 12,398 | 11,497 | ||
Assets supporting experience-rated contractholder liabilities | 229 | 212 | ||
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 | 116,770 | 119,054 | ||
Assets supporting experience-rated contractholder liabilities | 808 | 814 | ||
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 | 106,617 | 98,339 | ||
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 | 38,159 | 36,533 | ||
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 | 29,118 | 29,825 | ||
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 | 28,323 | 28,240 | ||
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 | 14,190 | 13,603 | ||
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 | 13,936 | 13,174 | ||
Assets supporting experience-rated contractholder liabilities | 1,772 | 1,662 | ||
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 | 16,262 | 15,574 | ||
Assets supporting experience-rated contractholder liabilities | 1,921 | 1,896 | ||
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 | 3,340 | 3,201 | ||
Assets supporting experience-rated contractholder liabilities | 1,200 | 1,158 | ||
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 | 1,683 | 1,790 | ||
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 | 915 | 261 | ||
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 | 1,804 | 1,505 | ||
Fixed maturities, trading | 0 | 0 | ||
Equity securities | 5,249 | 5,813 | ||
Commercial mortgage and other loans | 0 | 0 | ||
Other invested assets | 69 | 6 | ||
Short-term investments | 2,685 | 1,806 | ||
Cash equivalents | 4,653 | 2,079 | ||
Other assets | 0 | 0 | ||
Separate account assets | 47,429 | 46,574 | ||
TOTAL ASSETS | 61,889 | 57,783 | ||
Future policy benefits | 0 | 0 | ||
Policyholders' account balances | 0 | 0 | ||
Other liabilities | 130 | 41 | ||
Notes issued by consolidated VIEs | 0 | 0 | ||
Total liabilities | 130 | 41 | ||
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 | 1,444 | 1,505 | ||
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 | 360 | 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 | 402,092 | 386,781 | ||
Assets supporting experience-rated contractholder liabilities | 20,368 | 19,346 | ||
Fixed maturities, trading | 3,697 | 3,597 | ||
Equity securities | 1,030 | 939 | ||
Commercial mortgage and other loans | 682 | 228 | ||
Other invested assets | 30,693 | 14,379 | ||
Short-term investments | 6,247 | 1,975 | ||
Cash equivalents | 5,439 | 6,796 | ||
Other assets | 0 | 0 | ||
Separate account assets | 228,772 | 240,433 | ||
TOTAL ASSETS | 699,020 | 674,474 | ||
Future policy benefits | 0 | 0 | ||
Policyholders' account balances | 0 | 0 | ||
Other liabilities | 13,163 | 7,495 | ||
Notes issued by consolidated VIEs | 0 | 0 | ||
Total liabilities | 13,163 | 7,495 | ||
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 | 42,899 | 35,554 | ||
Assets supporting experience-rated contractholder liabilities | 208 | 185 | ||
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 | 12,394 | 11,493 | ||
Assets supporting experience-rated contractholder liabilities | 229 | 212 | ||
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 | 116,749 | 119,032 | ||
Assets supporting experience-rated contractholder liabilities | 784 | 790 | ||
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 | 106,181 | 97,959 | ||
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 | 36,305 | 34,749 | ||
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 | 29,033 | 29,756 | ||
Fair Value, Measurements, Recurring | Level 2 | Foreign private corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, available-for-sale | 25,794 | 27,237 | ||
Fair Value, Measurements, Recurring | Level 2 | Corporate securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets supporting experience-rated contractholder liabilities | 13,566 | 12,966 | ||
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 | 13,246 | 12,238 | ||
Assets supporting experience-rated contractholder liabilities | 1,673 | 1,593 | ||
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 | 16,262 | 15,574 | ||
Assets supporting experience-rated contractholder liabilities | 1,921 | 1,896 | ||
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 | 3,229 | 3,189 | ||
Assets supporting experience-rated contractholder liabilities | 1,200 | 1,158 | ||
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 | 239 | 285 | ||
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 | 548 | 261 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fixed maturities, available-for-sale | 5,852 | 4,315 | ||
Assets supporting experience-rated contractholder liabilities | 754 | 730 | ||
Fixed maturities, trading | 236 | 287 | ||
Equity securities | 594 | 633 | ||
Commercial mortgage and other loans | 0 | 0 | ||
Other invested assets | 658 | 567 | ||
Short-term investments | 44 | 155 | ||
Cash equivalents | 1 | 131 | ||
Other assets | 377 | 113 | ||
Separate account assets | 1,684 | 1,717 | ||
TOTAL ASSETS | 10,200 | 8,648 | ||
Future policy benefits | 26,439 | 12,831 | ||
Policyholders' account balances | 1,441 | 1,316 | ||
Other liabilities | 0 | 105 | ||
Notes issued by consolidated VIEs | 741 | 800 | ||
Total liabilities | 28,621 | 15,052 | ||
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 | 122 | 105 | ||
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 | 4 | ||
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 | 21 | 22 | ||
Assets supporting experience-rated contractholder liabilities | 24 | 24 | ||
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 | 436 | 380 | ||
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 | 1,854 | 1,784 | ||
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 | 85 | 69 | ||
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 | 2,529 | 1,003 | ||
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 | 624 | 637 | ||
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 | 690 | 936 | ||
Assets supporting experience-rated contractholder liabilities | 99 | 69 | ||
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 | 0 | ||
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 | 111 | 12 | ||
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 | 0 | ||
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 | 7 | 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 | 6,466 | 4,751 | ||
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 | 6,466 | 4,757 | ||
Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value investment measured at NAV per share | 3,979 | 4,213 | ||
Separate account assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value investment measured at NAV per share | $ 23,117 | $ 23,557 | ||
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. | |||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||
[3] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Quantitative Info for Level 3 Inputs) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | $ 312,759 | [1] | $ 293,527 |
Fair Value, Measurements, Recurring | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | 26,439 | 12,831 | |
Policyholders' account balances | $ 1,441 | 1,316 | |
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 | $ 26,439 | 12,831 | |
Policyholders' account balances | $ 1,441 | $ 1,316 | |
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 | 0.17% | 0.10% | |
Utilization rate | 39.00% | 43.00% | |
Withdrawal rate (greater than maximum range) | 76.00% | 78.00% | |
Mortality rate | 0.00% | 0.00% | |
Equity volatility curve | 18.00% | 13.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 1.00% | 1.00% | |
Spread over LIBOR | 0.17% | 0.10% | |
Mortality rate | 0.00% | 0.00% | |
Equity volatility curve | 6.00% | 6.00% | |
Level 3 | Internal | Minimum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 0.56% | 0.49% | |
Level 3 | Internal | Minimum | Discounted cash flow | Equity securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 10.00% | 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 | 1.83% | 1.11% | |
Level 3 | Internal | Minimum | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 6.5 | 5.7 | |
Level 3 | Internal | Minimum | Market comparables | Equity securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 1 | 1 | |
Level 3 | Internal | Minimum | Liquidation | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 14.98% | 14.25% | |
Level 3 | Internal | Minimum | Net asset value | Equity securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Share price | 1 | 5 | |
Level 3 | Internal | Maximum | Discounted cash flow | Future policy benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 20.00% | 18.00% | |
Spread over LIBOR | 1.69% | 1.23% | |
Utilization rate | 96.00% | 97.00% | |
Withdrawal rate (greater than maximum range) | 100.00% | 100.00% | |
Mortality rate | 15.00% | 15.00% | |
Equity volatility curve | 29.00% | 23.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Lapse rate | 42.00% | 42.00% | |
Spread over LIBOR | 1.69% | 1.23% | |
Mortality rate | 24.00% | 24.00% | |
Equity volatility curve | 38.00% | 25.00% | |
Level 3 | Internal | Maximum | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 30.00% | 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% | 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 | 3.18% | 1.85% | |
Level 3 | Internal | Maximum | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 15 | 9.2 | |
Level 3 | Internal | Maximum | Market comparables | Equity securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 9 | 10.1 | |
Level 3 | Internal | Maximum | Liquidation | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 92.79% | 83.61% | |
Level 3 | Internal | Maximum | Net asset value | Equity securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Share price | 1,414 | 1,353 | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Discount rate | 5.31% | 7.41% | |
Level 3 | Internal | Weighted Average | Discounted cash flow | Separate accounts commercial mortgage loan | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Spread | 2.05% | 1.26% | |
Level 3 | Internal | Weighted Average | Market comparables | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 9.3 | 7.3 | |
Level 3 | Internal | Weighted Average | Market comparables | Equity securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
EBITDA multiples | 1.7 | 5.4 | |
Level 3 | Internal | Weighted Average | Liquidation | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Liquidation value | 67.50% | 59.47% | |
Level 3 | Internal | Weighted Average | Net asset value | Equity securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Share price | 450 | 451 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Future policy benefits | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Future policy benefits | $ 26,439 | $ 12,831 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Policyholders' account balances | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Policyholders' account balances | 1,441 | 1,316 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Corporate securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Corporate securities | 3,382 | 1,424 | |
Level 3 | Internal | Fair Value, Measurements, Recurring | Equity securities | |||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | |||
Equity securities | 185 | 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 | $ 803 | $ 796 | |
[1] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Changes in Level 3 Assets and Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | $ 594 | $ 674 | $ 633 | $ 671 |
Purchases | 19 | 23 | 28 | 46 |
Sales | (5) | (13) | (10) | (24) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | (59) | 0 | (74) |
Other | 0 | 6 | 1 | 4 |
Transfers into Level 3 | 0 | 1 | 0 | 1 |
Transfers out of Level 3 | 0 | (24) | 0 | (24) |
Fair Value, end of period | 594 | 624 | 594 | 624 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (14) | 16 | (58) | 24 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (16) | 15 | (60) | 22 |
Equity securities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity securities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (14) | 16 | (58) | 24 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (16) | 15 | (60) | 22 |
Equity securities | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Equity securities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Equity securities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Assets supporting experience-rated contractholder liabilities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Assets supporting experience-rated contractholder liabilities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 18 | 6 | (29) | 9 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 19 | 12 | (25) | 8 |
Assets supporting experience-rated contractholder liabilities | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Assets supporting experience-rated contractholder liabilities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Assets supporting experience-rated contractholder liabilities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 3 | 1 | 0 | 3 |
Assets supporting experience-rated contractholder liabilities | Foreign government bonds | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 24 | 29 | 24 | 225 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | (3) | 0 | (3) |
Other | 0 | 0 | 0 | (196) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 24 | 26 | 24 | 26 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Assets supporting experience-rated contractholder liabilities | Corporate securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 603 | 592 | 637 | 444 |
Purchases | 0 | 14 | 4 | 41 |
Sales | 1 | 0 | (9) | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (20) | (67) | (65) | (143) |
Other | 0 | 0 | 0 | 196 |
Transfers into Level 3 | 29 | 10 | 92 | 10 |
Transfers out of Level 3 | (8) | (1) | (8) | (5) |
Fair Value, end of period | 624 | 553 | 624 | 553 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 19 | 5 | (27) | 10 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 17 | 11 | (27) | 6 |
Assets supporting experience-rated contractholder liabilities | Structured securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 177 | 60 | 69 | 149 |
Purchases | 39 | 0 | 155 | 6 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (6) | (4) | (10) | (25) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | (113) | 0 | (113) | (74) |
Fair Value, end of period | 99 | 57 | 99 | 57 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 2 | 1 | (2) | 1 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 2 | 1 | 2 | 1 |
Assets supporting experience-rated contractholder liabilities | Equity securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 0 | 1 | 0 | 1 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | (1) | 0 | (1) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 1 | 0 | 1 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 1 | 0 | 1 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 1 |
Assets supporting experience-rated contractholder liabilities | All other activity | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 7 | 0 | 0 | 0 |
Purchases | 0 | 3 | 7 | 3 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | (2) | 0 | (2) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 7 | 1 | 7 | 1 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 581 | 373 | 567 | 263 |
Purchases | 54 | 61 | 81 | 218 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 4 | 0 | 4 | 0 |
Settlements | (3) | 0 | (4) | (42) |
Other | 26 | 2 | 6 | (2) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 658 | 436 | 658 | 436 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (4) | 0 | 4 | (1) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 3 | 0 | 5 | (1) |
Other invested assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (1) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 7 | 0 | 1 | (1) |
Other invested assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (4) | 0 | 4 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (4) | 0 | 4 | 0 |
Other invested assets | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other invested assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Other invested assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 53 | 168 | 155 | 89 |
Purchases | 1 | 273 | 44 | 426 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | (153) | (110) | (227) |
Other | (10) | 0 | (47) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 44 | 288 | 44 | 288 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 2 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 2 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Short-term investments | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Short-term investments | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 1 | 1 | 131 | 77 |
Purchases | 0 | 0 | 0 | 1 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | (77) |
Other | 0 | 0 | (130) | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 1 | 1 | 1 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Cash equivalents | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Cash equivalents | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 382 | 48 | 113 | 25 |
Purchases | 19 | 8 | 36 | 17 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 377 | 98 | 377 | 98 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (24) | 42 | 228 | 56 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (22) | 41 | 229 | 55 |
Other assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (24) | 42 | 228 | 56 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (22) | 41 | 229 | 55 |
Other assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Other assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Separate accounts assets | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 1,528 | 1,635 | 1,717 | 1,534 |
Purchases | 48 | 139 | 104 | 228 |
Sales | (8) | (6) | (21) | (17) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (15) | (27) | (33) | (50) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 26 | 0 | 33 | 0 |
Transfers out of Level 3 | (9) | (77) | (90) | (112) |
Fair Value, end of period | 1,684 | 1,708 | 1,684 | 1,708 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 114 | 44 | (26) | 125 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 112 | 41 | (17) | 115 |
Separate accounts assets | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Separate accounts assets | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Separate accounts assets | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 114 | 43 | (26) | 123 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 112 | 41 | (17) | 115 |
Separate accounts assets | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Separate accounts assets | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 1 | 0 | 2 |
Future policy benefits | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (27,935) | (10,025) | (12,831) | (8,926) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 322 | 298 | 641 | 588 |
Settlements | 0 | 0 | 0 | 0 |
Other | (2) | 0 | 2 | 1 |
Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (26,439) | (12,723) | (26,439) | (12,723) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,820 | (2,400) | (12,969) | (3,210) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,565 | (2,503) | (13,183) | (3,364) |
Future policy benefits | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 1,820 | (2,400) | (12,969) | (3,210) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 1,565 | (2,503) | (13,183) | (3,364) |
Future policy benefits | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Future policy benefits | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Future policy benefits | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (1,206) | (146) | (1,316) | (56) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 101 | 73 | 197 | 109 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | (3) |
Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (1,441) | (1,047) | (1,441) | (1,047) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (134) | (828) | 72 | (879) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (127) | (821) | 63 | (872) |
Policyholders' account balances | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (134) | (828) | 72 | (879) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (127) | (821) | 63 | (872) |
Policyholders' account balances | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Policyholders' account balances | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Policyholders' account balances | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other liabilities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (47) | 0 | (105) | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 0 | 0 | 0 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 47 | 0 | 105 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 47 | 0 | 104 | 0 |
Other liabilities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other liabilities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 47 | 0 | 105 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 47 | 0 | 104 | 0 |
Other liabilities | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Other liabilities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Other liabilities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Notes Issued by Consolidated VIEs | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | (799) | (817) | (800) | (595) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 858 |
Settlements | 0 | 0 | 0 | 638 |
Other | 0 | 0 | 0 | 0 |
Transfers Into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | (741) | (816) | (741) | (816) |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 58 | 1 | 59 | (1) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 59 | 1 | 59 | (1) |
Notes Issued by Consolidated VIEs | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1) | 1 | 0 | (1) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 1 | 0 | (1) |
Notes Issued by Consolidated VIEs | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 59 | 0 | 59 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 59 | 0 | 59 | 0 |
Notes Issued by Consolidated VIEs | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Notes Issued by Consolidated VIEs | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Notes Issued by Consolidated VIEs | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (88) | (11) | (115) | (13) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (80) | (5) | (106) | (26) |
Available-for-sale | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 407 | 18 | (76) | 40 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 406 | (74) | ||
Available-for-sale | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 3 | 6 | 5 | 10 |
Available-for-sale | Fixed maturities | U.S. government | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 115 | 88 | 105 | 81 |
Purchases | 7 | 6 | 17 | 13 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 122 | 94 | 122 | 94 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | U.S. states | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 4 | 4 | 4 | 5 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | (1) |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 4 | 4 | 4 | 4 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Available-for-sale | Fixed maturities | Foreign government bonds | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 21 | 138 | 22 | 125 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | (2) | 0 | (1) |
Transfers into Level 3 | 1 | 0 | 1 | 9 |
Transfers out of Level 3 | (1) | (111) | (1) | (111) |
Fair Value, end of period | 21 | 24 | 21 | 24 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | (1) | (1) | 2 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1) | 0 | (1) | 0 |
Available-for-sale | Fixed maturities | Corporate securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 4,496 | 2,757 | 3,236 | 2,685 |
Purchases | 125 | 288 | 419 | 607 |
Sales | (5) | (17) | (118) | (29) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (95) | (225) | (330) | (604) |
Other | 0 | 1 | 1 | (1) |
Transfers into Level 3 | 196 | 19 | 2,023 | 183 |
Transfers out of Level 3 | (131) | (37) | (145) | (59) |
Fair Value, end of period | 4,904 | 2,792 | 4,904 | 2,792 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 318 | 6 | (182) | 10 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 316 | (5) | (175) | (26) |
Available-for-sale | Fixed maturities | Structured securities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 948 | 1,915 | 948 | 1,339 |
Purchases | 73 | 113 | 388 | 431 |
Sales | 0 | (47) | (17) | (47) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (197) | (101) | (297) | (332) |
Other | 0 | 9 | 155 | 7 |
Transfers into Level 3 | 80 | 17 | 92 | 750 |
Transfers out of Level 3 | (107) | (1,053) | (465) | (1,312) |
Fair Value, end of period | 801 | 861 | 801 | 861 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 4 | 8 | (3) | 25 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 11 | 0 | (4) | 0 |
Trading | Fixed maturities | ||||
Fair Value, Assets And Liabilities Measured On Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, beginning of period | 249 | 240 | 287 | 206 |
Purchases | 4 | 36 | 22 | 74 |
Sales | (26) | (13) | (32) | (14) |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 10 | 1 | 8 | 3 |
Transfers into Level 3 | 0 | 39 | 15 | 39 |
Transfers out of Level 3 | 0 | 0 | (48) | (1) |
Fair Value, end of period | 236 | 296 | 236 | 296 |
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (1) | (7) | (16) | (11) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1) | (7) | (16) | (7) |
Trading | Fixed maturities | Realized investment gains (losses), net | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading | Fixed maturities | Other income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | (2) | (8) | (17) | (12) |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | (1) | (7) | (16) | (7) |
Trading | Fixed maturities | Interest credited to policyholders’ account balances | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Trading | Fixed maturities | Included in other comprehensive income (loss) | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized gains (losses) for assets/liabilities still held: | ||||
Included in earnings | 0 | 0 | ||
Trading | Fixed maturities | Net investment income | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | $ 1 | $ 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 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | $ 1,644 | $ 867 |
Netting | (29,119) | (13,519) |
Total derivative liabilities | 684 | 831 |
Netting | (13,001) | (6,705) |
Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 25,390 | 11,243 |
Total derivative liabilities | 11,568 | 5,214 |
Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 381 | 230 |
Total derivative liabilities | 247 | 271 |
Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 20 | 21 |
Total derivative liabilities | 17 | 0 |
Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 4,292 | 2,207 |
Total derivative liabilities | 396 | 647 |
Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 680 | 685 |
Total derivative liabilities | 1,457 | 1,404 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 69 | 6 |
Total derivative liabilities | 128 | 41 |
Level 1 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 6 | 4 |
Total derivative liabilities | 44 | 38 |
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 | 63 | 2 |
Total derivative liabilities | 84 | 3 |
Level 1 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 30,693 | 14,379 |
Total derivative liabilities | 13,557 | 7,495 |
Level 2 | Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 25,383 | 11,238 |
Total derivative liabilities | 11,524 | 5,176 |
Level 2 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 381 | 230 |
Total derivative liabilities | 247 | 271 |
Level 2 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 20 | 21 |
Total derivative liabilities | 17 | 0 |
Level 2 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 4,292 | 2,207 |
Total derivative liabilities | 396 | 647 |
Level 2 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 617 | 683 |
Total derivative liabilities | 1,373 | 1,401 |
Level 2 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 1 | 1 |
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 | 1 |
Total derivative liabilities | 0 | 0 |
Level 3 | Currency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Currency/Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Equity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Level 3 | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total derivative assets | 0 | 0 |
Total derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Netting | $ (16,118) | $ (6,814) |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities (Changes in Level 3 Derivative Assets and Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Derivative- Equity | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, beginning of period | $ 0 | $ 0 | $ 0 | $ 0 |
Total gains (losses) (realized/unrealized): | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 0 | 0 | 0 | 0 |
Net Derivative- Interest Rate | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Fair Value, beginning of period | 1 | 1 | 1 | 2 |
Total gains (losses) (realized/unrealized): | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Fair Value, end of period | 1 | 1 | 1 | 1 |
Realized investment gains (losses), net | Net Derivative- Equity | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Unrealized Gain (Loss) for assets still held | ||||
Included in earnings | 0 | 0 | 0 | 0 |
Realized investment gains (losses), net | Net Derivative- Interest Rate | ||||
Total gains (losses) (realized/unrealized): | ||||
Included in earnings | 0 | 0 | 0 | (1) |
Unrealized Gain (Loss) for assets still held | ||||
Included in earnings | $ 0 | $ 0 | $ 0 | $ (1) |
Fair Value of Assets and Liab_8
Fair Value of Assets and Liabilities (Nonrecurring Fair Value Measurements) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Commercial Mortgage Loans | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized investment gains (losses) net | $ (3) | $ 0 | $ (3) | $ 0 | |
Carrying value after measurement as of period end | 11 | 11 | $ 15 | ||
Mortgage servicing rights | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized investment gains (losses) net | (26) | $ (1) | (29) | $ (2) | |
Carrying value after measurement as of period end | $ 280 | $ 280 | $ 87 |
Fair Value of Assets and Liab_9
Fair Value of Assets and Liabilities (Changes in Fair Values Recorded in Earnings for FVO Assets-Liabilities) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Commercial mortgage and other loans | [1],[2] | $ 63,469 | $ 63,469 | $ 63,559 | ||||
Other assets | [2] | 21,301 | [1],[3] | 21,301 | [1],[3] | 20,832 | ||
Commercial mortgage and other loans | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Interest income | 4 | $ 5 | 6 | $ 11 | ||||
Fair value option loans in non-accrual status | 0 | 0 | ||||||
Fair value option loans in more than 90 days past due and still accruing | 0 | 0 | ||||||
Notes Issued by Consolidated VIEs | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Changes in fair value | (59) | (1) | (59) | 1 | ||||
Interest expense | 11 | $ 13 | 22 | $ 22 | ||||
Fair value option | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Commercial mortgage and other loans | 682 | 682 | 228 | |||||
Other assets | 10 | 10 | 10 | |||||
Notes issued by consolidated VIEs | 741 | 741 | 800 | |||||
Fair value option, aggregate contractual principal | ||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||
Commercial mortgage and other loans | 670 | 670 | 224 | |||||
Notes issued by consolidated VIEs | $ 857 | $ 857 | $ 857 | |||||
[1] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. | |||||||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||||||
[3] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. |
Fair Value of Assets and Lia_10
Fair Value of Assets and Liabilities (Financial Instruments where Carrying Amounts and Fair Values May Differ) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |||
Assets: | ||||||
Fixed maturities, held-to-maturity | [2] | $ 1,875 | [1] | $ 1,933 | ||
Assets supporting experience-rated contractholder liabilities | [2] | 23,245 | 21,597 | |||
Commercial mortgage and other loans | [1],[2] | 63,469 | 63,559 | |||
Policy loans | 12,283 | [3] | 12,096 | |||
Other invested assets | [2] | 16,757 | [1],[3] | 15,606 | ||
Cash and cash equivalents | 21,149 | [2],[3] | 16,327 | [2] | $ 15,421 | |
Accrued investment income | [2] | 3,296 | [3] | 3,330 | ||
Liabilities: | ||||||
Securities sold under agreements to repurchase | 10,488 | 9,681 | ||||
Cash collateral for loaned securities | 3,447 | 4,213 | ||||
Short-term debt | 1,130 | 1,933 | ||||
Long-term debt | 20,162 | 18,646 | ||||
Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,231 | 2,302 | ||||
Assets supporting experience-rated contractholder liabilities | 319 | 16 | ||||
Commercial mortgage and other loans | 65,774 | 65,665 | ||||
Policy loans | 12,283 | 12,096 | ||||
Other invested assets | 200 | 36 | ||||
Short-term Investments | 2,440 | 1,531 | ||||
Cash and cash equivalents | 11,056 | 7,321 | ||||
Accrued investment income | 3,296 | 3,330 | ||||
Other assets | 2,972 | 3,316 | ||||
Total assets | 100,571 | 95,613 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 109,206 | 102,156 | ||||
Securities sold under agreements to repurchase | 10,488 | 9,681 | ||||
Cash collateral for loaned securities | 3,447 | 4,213 | ||||
Short-term debt | 1,138 | 1,953 | ||||
Long-term debt | 22,990 | 21,324 | ||||
Notes issued by consolidated VIEs | 456 | 474 | ||||
Other liabilities | 7,594 | 6,982 | ||||
Separate account liabilities—investment contracts | 101,179 | 101,541 | ||||
Total liabilities | 256,498 | 248,324 | ||||
Carrying Amount | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 1,875 | 1,933 | ||||
Assets supporting experience-rated contractholder liabilities | 319 | 16 | ||||
Commercial mortgage and other loans | 62,787 | 63,331 | ||||
Policy loans | 12,283 | 12,096 | ||||
Other invested assets | 200 | 36 | ||||
Short-term Investments | 2,440 | 1,531 | ||||
Cash and cash equivalents | 11,056 | 7,321 | ||||
Accrued investment income | 3,296 | 3,330 | ||||
Other assets | 2,971 | 3,315 | ||||
Total assets | 97,227 | 92,909 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 106,501 | 101,241 | ||||
Securities sold under agreements to repurchase | 10,488 | 9,681 | ||||
Cash collateral for loaned securities | 3,447 | 4,213 | ||||
Short-term debt | 1,130 | 1,933 | ||||
Long-term debt | 20,162 | 18,646 | ||||
Notes issued by consolidated VIEs | 456 | 474 | ||||
Other liabilities | 7,594 | 6,982 | ||||
Separate account liabilities—investment contracts | 101,179 | 101,541 | ||||
Total liabilities | 250,957 | 244,711 | ||||
Level 1 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 0 | 0 | ||||
Assets supporting experience-rated contractholder liabilities | 219 | 16 | ||||
Commercial mortgage and other loans | 0 | 0 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Short-term Investments | 2,351 | 1,492 | ||||
Cash and cash equivalents | 8,785 | 6,278 | ||||
Accrued investment income | 0 | 0 | ||||
Other assets | 148 | 147 | ||||
Total assets | 11,503 | 7,933 | ||||
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 | 1,900 | 1,950 | ||||
Notes issued by consolidated VIEs | 0 | 0 | ||||
Other liabilities | 0 | 0 | ||||
Separate account liabilities—investment contracts | 0 | 0 | ||||
Total liabilities | 1,900 | 1,950 | ||||
Level 2 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 2,146 | 2,217 | ||||
Assets supporting experience-rated contractholder liabilities | 100 | 0 | ||||
Commercial mortgage and other loans | 108 | 107 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 200 | 36 | ||||
Short-term Investments | 89 | 39 | ||||
Cash and cash equivalents | 2,271 | 1,043 | ||||
Accrued investment income | 3,296 | 3,330 | ||||
Other assets | 2,548 | 2,526 | ||||
Total assets | 10,758 | 9,298 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 37,374 | 32,940 | ||||
Securities sold under agreements to repurchase | 10,488 | 9,681 | ||||
Cash collateral for loaned securities | 3,447 | 4,213 | ||||
Short-term debt | 1,036 | 1,748 | ||||
Long-term debt | 19,884 | 18,188 | ||||
Notes issued by consolidated VIEs | 0 | 0 | ||||
Other liabilities | 7,546 | 6,403 | ||||
Separate account liabilities—investment contracts | 77,492 | 77,134 | ||||
Total liabilities | 157,267 | 150,307 | ||||
Level 3 | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 85 | 85 | ||||
Assets supporting experience-rated contractholder liabilities | 0 | 0 | ||||
Commercial mortgage and other loans | 65,666 | 65,558 | ||||
Policy loans | 12,283 | 12,096 | ||||
Other invested assets | 0 | 0 | ||||
Short-term Investments | 0 | 0 | ||||
Cash and cash equivalents | 0 | 0 | ||||
Accrued investment income | 0 | 0 | ||||
Other assets | 276 | 643 | ||||
Total assets | 78,310 | 78,382 | ||||
Liabilities: | ||||||
Policyholders’ account balances—investment contracts | 71,832 | 69,216 | ||||
Securities sold under agreements to repurchase | 0 | 0 | ||||
Cash collateral for loaned securities | 0 | 0 | ||||
Short-term debt | 102 | 205 | ||||
Long-term debt | 1,206 | 1,186 | ||||
Notes issued by consolidated VIEs | 456 | 474 | ||||
Other liabilities | 48 | 579 | ||||
Separate account liabilities—investment contracts | 23,687 | 24,407 | ||||
Total liabilities | 97,331 | 96,067 | ||||
Prudential Netting Agreement | Fair Value | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 5,603 | 5,401 | ||||
Liabilities: | ||||||
Long-term debt | 12,069 | 10,158 | ||||
Prudential Netting Agreement | Carrying Amount | ||||||
Assets: | ||||||
Fixed maturities, held-to-maturity | 4,998 | 4,998 | ||||
Liabilities: | ||||||
Long-term debt | $ 11,464 | $ 9,749 | ||||
[1] | June 30, 2020 amounts include the impacts of the January 1, 2020 adoption of ASU 2016-13. See Note 2 for details. | |||||
[2] | See Note 4 for details of balances associated with variable interest entities. | |||||
[3] | June 30, 2020 amounts include assets and liabilities held for sale which aggregate to $20,835 million and $17,141 million, respectively, related to the pending sale of The Prudential Life Insurance Company of Korea, Ltd. See Note 1 for details of these balances. |
Closed Block (Narrative) (Detai
Closed Block (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Closed Block Dividend Obligation | $ 7,755 | $ 6,149 |
Accumulated Distributions in Excess of Net Income | ||
Closed Block Dividend Obligation | 2,450 | 2,816 |
Net Unrealized Investment Gains (Losses) | ||
Closed Block Dividend Obligation | $ 5,305 | $ 3,332 |
Closed Block (Closed Block Liab
Closed Block (Closed Block Liabilities and Assets Designated to Closed Block; Maximum Future Earnings to be Recognized) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Closed Block liabilities | ||
Future policy benefits | $ 47,142 | $ 47,613 |
Policyholders’ dividends payable | 728 | 717 |
Policyholders’ dividend obligation | 7,755 | 6,149 |
Policyholders’ account balances | 4,914 | 4,973 |
Other Closed Block liabilities | 3,322 | 4,049 |
Total Closed Block liabilities | 63,861 | 63,501 |
Closed Block assets | ||
Fixed maturities, available-for-sale, at fair value | 42,058 | 41,146 |
Fixed maturities, trading, at fair value | 239 | 256 |
Equity securities, at fair value | 2,047 | 2,245 |
Commercial mortgage and other loans | 8,388 | 8,629 |
Policy loans | 4,158 | 4,264 |
Other invested assets | 3,259 | 3,333 |
Short-term investments | 95 | 227 |
Total investments | 60,244 | 60,100 |
Cash and cash equivalents | 462 | 191 |
Accrued investment income | 436 | 456 |
Other Closed Block assets | 86 | 93 |
Total Closed Block assets | 61,228 | 60,840 |
Excess of reported Closed Block liabilities over Closed Block assets | 2,633 | 2,661 |
Portion of above representing accumulated other comprehensive income (loss): | ||
Net unrealized investment gains (losses) | 5,250 | 3,280 |
Allocated to policyholder dividend obligation | (5,305) | (3,332) |
Future earnings to be recognized from Closed Block assets and Closed Block liabilities | $ 2,578 | $ 2,609 |
Closed Block (Information Regar
Closed Block (Information Regarding Policyholder Dividend Obligation) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Movement in Closed Block Dividend Obligation [Roll Forward] | |
Balance, beginning | $ 6,149 |
Impact from earnings allocable to policyholder dividend obligation | (353) |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligation | 1,972 |
Balance, ending | 7,755 |
ASU 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Closed Block Dividend Obligation, Period Increase (Decrease) | $ (13) |
Closed Block (Closed Block Reve
Closed Block (Closed Block Revenues and Benefits and Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Premiums | $ 519 | $ 581 | $ 999 | $ 1,108 |
Net investment income | 515 | 576 | 1,063 | 1,141 |
Realized investment gains (losses), net | (8) | 49 | 248 | 105 |
Other income (loss) | 318 | 97 | (285) | 325 |
Total Closed Block revenues | 1,344 | 1,303 | 2,025 | 2,679 |
Benefits and Expenses | ||||
Policyholders’ benefits | 725 | 780 | 1,372 | 1,489 |
Interest credited to policyholders’ account balances | 32 | 32 | 64 | 64 |
Dividends to policyholders | 517 | 415 | 423 | 968 |
General and administrative expenses | 82 | 89 | 167 | 178 |
Total Closed Block benefits and expenses | 1,356 | 1,316 | 2,026 | 2,699 |
Closed Block revenues, net of Closed Block benefits and expenses, before income taxes | (12) | (13) | (1) | (20) |
Income tax expense (benefit) | (28) | (29) | (34) | (53) |
Closed Block revenues, net of Closed Block benefits and expenses and income taxes | $ 16 | $ 16 | $ 33 | $ 33 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Total income tax expense (benefit) | $ 115 | $ 162 | $ 57 | $ 394 | |
Effective Income Tax Rate, Percent | (2.10%) | 19.50% | |||
Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |||
GILTI Tax on NOL Carryback | $ 140 | ||||
YTD CARES Act NOL Carryback | 781 | ||||
NOL Carryback | $ (47) | ||||
High Tax Exception Percentage | 18.90% | ||||
Percentage of the Effective Income Tax Rate Rec at Federal Statutory Income | 90.00% | ||||
CARES Act NOL Carryback | $ (512) |
Short-Term and Long-Term Debt_2
Short-Term and Long-Term Debt (Short-Term Debt) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 1,130 | $ 1,933 |
Weighted average interest rate on outstanding short-term debt | 0.13% | 1.61% |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 500 | $ 549 |
Weighted average maturity of outstanding commercial paper, in days | 14 days | 6 days |
Long-term debt | ||
Short-term Debt [Line Items] | ||
Long-term Debt, Current Maturities | $ 873 | $ 1,371 |
Short-term Debt | ||
Short-term Debt [Line Items] | ||
Long-term Debt, Current Maturities | 1,380 | 1,933 |
Borrowings due overnight | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 240 | 224 |
Daily average outstanding | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 1,869 | 1,702 |
Prudential Financial | ||
Short-term Debt [Line Items] | ||
Short-term debt | 553 | 1,204 |
Prudential Financial | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 25 | 25 |
Prudential Funding, LLC | Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 475 | 524 |
Mortgages | ||
Short-term Debt [Line Items] | ||
Long-term Debt, Current Maturities | 95 | 192 |
Line of Credit | ||
Short-term Debt [Line Items] | ||
Short-term debt | 7 | |
Long-term Debt, Current Maturities | 7 | 13 |
Senior notes | ||
Short-term Debt [Line Items] | ||
Short-term debt | 1,500 | |
Long-term Debt, Current Maturities | 651 | |
Senior notes | Long-term debt | ||
Short-term Debt [Line Items] | ||
Long-term Debt, Current Maturities | 528 | 1,179 |
Surplus notes subject to set-off arrangements | ||
Short-term Debt [Line Items] | ||
Long-term Debt, Current Maturities | 250 | 0 |
Assets Under Set-Off Arrangements | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 250 | $ 0 |
Short-Term and Long-Term Debt_3
Short-Term and Long-Term Debt (Narrative) (Details) | Aug. 02, 2019USD ($) | Jun. 14, 2020 | Jun. 30, 2020USD ($)Rate | Jun. 30, 2020USD ($)Rate | Jun. 11, 2020USD ($) | May 15, 2020USD ($)Rate | Dec. 31, 2019USD ($) | Feb. 18, 2015USD ($) | Sep. 30, 2009USD ($) |
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | $ 20,162,000,000 | $ 20,162,000,000 | $ 18,646,000,000 | ||||||
Debt, Current | $ 1,130,000,000 | $ 1,130,000,000 | 1,933,000,000 | ||||||
Document Period End Date | Jun. 30, 2020 | Jun. 30, 2020 | |||||||
Amounts drawn on credit facilities | $ 0 | $ 0 | |||||||
Assets Under Set-Off Arrangements | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | 11,214,000,000 | 11,214,000,000 | 9,749,000,000 | ||||||
Debt, Current | 250,000,000 | 250,000,000 | 0 | ||||||
Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, Current | 1,500,000,000 | 1,500,000,000 | |||||||
Increase (decrease) of debt | 800,000,000 | ||||||||
Senior Notes | 12,100,000,000 | 12,100,000,000 | |||||||
Long-term Debt, Current Maturities | 651,000,000 | 651,000,000 | |||||||
Junior Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | 7,580,000,000 | 7,580,000,000 | 7,575,000,000 | ||||||
Parent Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | 18,925,000,000 | 18,925,000,000 | 17,430,000,000 | ||||||
Debt, Current | 553,000,000 | 553,000,000 | 1,204,000,000 | ||||||
Parent Company | Junior Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | 7,522,000,000 | 7,522,000,000 | 7,518,000,000 | ||||||
Subsidiaries | Junior Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | 58,000,000 | 58,000,000 | 57,000,000 | ||||||
Private Placement | Parent Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 2.85% | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | Rate | 2.175% | ||||||||
Private Placement | Parent Company | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||||||||
Private Placement | Parent Company | Maturity in 2030 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,500,000,000 | ||||||||
Long-term debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Current Maturities | 873,000,000 | 873,000,000 | 1,371,000,000 | ||||||
Long-term debt | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Current Maturities | 528,000,000 | 528,000,000 | 1,179,000,000 | ||||||
Exhangeable Surplus Notes | Long-term debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500,000,000 | ||||||||
Debt Instrument, Convertible, Terms of Conversion Feature | 12.3877 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.36% | ||||||||
Surplus Notes | $ 1,000 | ||||||||
Put Option | Parent Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Derivative, Time to Cure | 30 days | ||||||||
Minimum Equity Less AOCI for Automatic Exercise | 9,000,000,000 | 9,000,000,000 | |||||||
Federal Home Loan Bank of New York | Subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Issuance Costs, Net | 3,600,000,000 | 3,600,000,000 | |||||||
Federal Home Loan Bank of New York | Long-term debt | Subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Issuance Costs, Net | 3,600,000,000 | 3,600,000,000 | |||||||
Maturing in 2026 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt, Current | $ 500,000,000 | $ 500,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 1.50% | 1.50% | |||||||
Maturity in 2030 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 2.10% | 2.10% | |||||||
Maturing in 2040 | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 500,000,000 | $ 500,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | Rate | 3.00% | 3.00% | |||||||
Captive Reinsurance Subsidiary | Floating Rate Debt Surplus Notes Subject To Set Off Arrangement | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 900,000,000 | $ 900,000,000 | |||||||
Surplus Notes | 800,000,000 | 800,000,000 | |||||||
Prudential Legacy Insurance Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Future Debt Instrument Authorized | $ 4,000,000,000 | ||||||||
Prudential Arizona Reinsurance Universal Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 700,000,000 | ||||||||
Future Debt Instrument Authorized | $ 1,200,000,000 | ||||||||
Prudential Arizona Reinsurance Universal Company | Floating Rate Debt Surplus Notes Subject To Set Off Arrangement | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 700,000,000 | $ 700,000,000 | |||||||
Minimum | Federal Home Loan Bank of New York | Subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average maturity of outstanding commercial paper, in days | 5 months | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.43% | 0.43% | |||||||
Maximum | Federal Home Loan Bank of New York | Subsidiaries | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average maturity of outstanding commercial paper, in days | 7 years | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.925% | 1.925% | |||||||
Fed Funds Effective Rate Overnight Index Swap Rate | Senior notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | $ 11,575,000,000 | $ 11,575,000,000 | 10,084,000,000 | ||||||
Fed Funds Effective Rate Overnight Index Swap Rate | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | 100,000,000 | 100,000,000 | 104,000,000 | ||||||
Fed Funds Effective Rate Overnight Index Swap Rate | Debt denominated in foreign currency | Mortgages | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt, Excluding Current Maturities | $ 40,000,000 | $ 40,000,000 | $ 43,000,000 |
Short-Term and Long-Term Debt_4
Short-Term and Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 20,162 | $ 18,646 |
Surplus notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 343 | 342 |
Surplus notes subject to set-off arrangements | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 8,884 | 7,484 |
Surplus notes subject to set-off arrangements | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,330 | 2,265 |
Senior notes | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 11,575 | 10,084 |
Mortgages | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 100 | 104 |
Mortgages | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 264 | 241 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit, Noncurrent | 300 | 300 |
Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,580 | 7,575 |
Subtotal | ||
Debt Instrument [Line Items] | ||
Long-term debt | 31,376 | 28,395 |
Less: assets under set-off arrangements | ||
Debt Instrument [Line Items] | ||
Long-term debt | 11,214 | 9,749 |
Debt denominated in foreign currency | Mortgages | Fixed-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 40 | 43 |
Debt denominated in foreign currency | Mortgages | Floating-rate notes: | ||
Debt Instrument [Line Items] | ||
Long-term debt | 50 | 53 |
Prudential Financial | ||
Debt Instrument [Line Items] | ||
Long-term debt | 18,925 | 17,430 |
Prudential Financial | Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,522 | 7,518 |
Subsidiaries | Junior subordinated notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 58 | $ 57 |
Maturing in 2040 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 500 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - Other Postretirement Benefits | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred Compensation Arrangement with Individual, Requisite Age | 50 years | |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 10 years | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred Compensation Arrangement with Individual, Requisite Age | 55 years | |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 20 years |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Benefit Cost Included in General and Administrative Expenses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 81 | $ 72 | $ 161 | $ 145 |
Interest cost | 107 | 123 | 215 | 246 |
Expected return on plan assets | (202) | (204) | (403) | (408) |
Amortization of prior service cost | (1) | (1) | (2) | (2) |
Amortization of actuarial (gain) loss, net | 66 | 54 | 131 | 108 |
Settlements | 4 | 48 | 4 | 48 |
Special termination benefits(1)(2) | 0 | 1 | 2 | 1 |
Net periodic (benefit) cost | 55 | 93 | 108 | 138 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 6 | 5 | 12 | 11 |
Interest cost | 16 | 20 | 32 | 39 |
Expected return on plan assets | (25) | (23) | (50) | (47) |
Amortization of prior service cost | 1 | 1 | 3 | 2 |
Amortization of actuarial (gain) loss, net | 4 | 6 | 8 | 12 |
Settlements | 0 | 0 | 0 | 0 |
Special termination benefits(1)(2) | 0 | 0 | 0 | 0 |
Net periodic (benefit) cost | $ 2 | $ 9 | $ 5 | $ 17 |
Equity (Common Stock Changes in
Equity (Common Stock Changes in Number of Shares Issued, Held in Treasury and Outstanding) (Details) | Aug. 02, 2019USD ($)shares | Jun. 30, 2020shares | Jun. 30, 2019shares | Jun. 30, 2020shares | Jun. 30, 2019shares | Sep. 30, 2009USD ($) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning | 666,305,189 | |||||
Balance, ending | 666,305,189 | 666,305,189 | ||||
Exchangeable surplus notes (in shares) | 0 | 6,200,000 | 0 | 6,200,000 | ||
Issued | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning | 666,300,000 | |||||
Common Stock issued | 0 | |||||
Common Stock acquired | 0 | |||||
Stock-based compensation programs | 0 | |||||
Balance, ending | 666,300,000 | 666,300,000 | ||||
Held In Treasury | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning | 267,500,000 | |||||
Common Stock issued | 0 | |||||
Common Stock acquired | 6,700,000 | |||||
Stock-based compensation programs | (2,500,000) | |||||
Balance, ending | 271,700,000 | 271,700,000 | ||||
Outstanding | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance, beginning | 398,800,000 | |||||
Common Stock issued | 0 | |||||
Common Stock acquired | (6,700,000) | |||||
Stock-based compensation programs | 2,500,000 | |||||
Balance, ending | 394,600,000 | 394,600,000 | ||||
Long-term Debt | Exhangeable Surplus Notes | ||||||
Class of Stock [Line Items] | ||||||
Debt Instrument, Face Amount | $ | $ 500,000,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exchangeable surplus notes (in shares) | 6,200,000 | |||||
Debt Instrument, Convertible, Conversion Ratio | 12.3877 | |||||
Surplus notes principal amount, for each | $ | $ 1,000 |
Equity (Dividends Declared) (De
Equity (Dividends Declared) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Equity [Abstract] | ||||
Dividends declared per share of Common Stock | $ 1.10 | $ 1 | $ 2.20 | $ 2 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) shares in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Cost of Treasury Stock Acquired | $ 500,000,000 | $ 983,000,000 | |
Under December 2018 Board Of Directors Authorization | |||
Class of Stock [Line Items] | |||
Amount of Stock Repurchases Authorized by the Board of Directors | $ 2,000,000,000 | ||
Under December 2018 Board Of Directors Authorization | Common Stock | |||
Class of Stock [Line Items] | |||
Number of Treasury Stock Shares Acquired | 6.7 | ||
Cost of Treasury Stock Acquired | $ 500,000,000 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 24,039 | |||
Income tax benefit (expense) | $ (2,023) | $ (1,966) | (1,885) | $ (3,910) |
Ending balance | 30,837 | 30,837 | ||
Foreign Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (536) | (564) | ||
Change in OCI before reclassifications | (213) | 98 | ||
Amounts reclassified from AOCI | 5 | 5 | ||
Income tax benefit (expense) | 28 | 8 | ||
Cumulative effect of adoption of ASU 2017-12 | 0 | |||
Ending balance | (716) | (453) | (716) | (453) |
Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 28,112 | 14,745 | ||
Change in OCI before reclassifications | 9,449 | 17,296 | ||
Amounts reclassified from AOCI | (702) | (501) | ||
Income tax benefit (expense) | (1,881) | (3,899) | ||
Cumulative effect of adoption of ASU 2017-12 | 7 | |||
Ending balance | 34,978 | 27,648 | 34,978 | 27,648 |
Pension and Postretirement Unrecognized Net Periodic Benefit (Cost) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (3,537) | (3,275) | ||
Change in OCI before reclassifications | 4 | (39) | ||
Amounts reclassified from AOCI | 140 | 120 | ||
Income tax benefit (expense) | (32) | (19) | ||
Cumulative effect of adoption of ASU 2017-12 | 0 | |||
Ending balance | (3,425) | (3,213) | (3,425) | (3,213) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 24,039 | 10,906 | ||
Change in OCI before reclassifications | 9,240 | 17,355 | ||
Amounts reclassified from AOCI | (557) | (376) | ||
Income tax benefit (expense) | (1,885) | (3,910) | ||
Cumulative effect of adoption of ASU 2017-12 | 7 | |||
Ending balance | 30,837 | 23,982 | 30,837 | 23,982 |
Cash flow hedges | Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 832 | 811 | ||
Ending balance | 2,498 | $ 1,017 | 2,498 | $ 1,017 |
Fair value hedges | Net Unrealized Investment Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | |||
Ending balance | $ (3) | $ (3) |
Equity (Reclassifications out o
Equity (Reclassifications out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized investment gains (losses), net | $ (3,752) | $ (336) | $ (2,085) | $ (1,102) |
Other income | 1,474 | 643 | (1,117) | 1,897 |
Total foreign currency translation adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 5 | 5 | ||
Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (702) | (501) | ||
Total amortization of defined benefit pension items | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 140 | 120 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (557) | (376) | ||
Amounts reclassified from AOCI | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized investment gains (losses), net | (2) | 0 | (5) | (5) |
Other income | 0 | 0 | 0 | 0 |
Amortization of defined benefit pension items: | ||||
Prior service cost | 0 | 0 | (1) | 0 |
Actuarial gain (loss) | (70) | (60) | (139) | (120) |
Amounts reclassified from AOCI | Total foreign currency translation adjustment | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | (2) | 0 | (5) | (5) |
Amounts reclassified from AOCI | Net Unrealized Investment Gains (Losses) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 156 | 226 | 702 | 501 |
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 | (70) | (60) | (140) | (120) |
Amounts reclassified from AOCI | Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCI | 84 | 166 | 557 | 376 |
Amounts reclassified from AOCI | Net unrealized investment gains (losses) on available-for-sale securities | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 112 | 69 | 270 | 329 |
Amounts reclassified from AOCI | Interest Rate | Cash flow hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 9 | 0 | 8 | (1) |
Amounts reclassified from AOCI | Currency | Cash flow hedges | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized investment gains (losses) | 3 | 1 | 4 | 2 |
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) | $ 32 | $ 156 | $ 420 | $ 171 |
Equity (Net Unrealized Investme
Equity (Net Unrealized Investment Gains and Losses in AOCI with Allowance for Credit Losses) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 24,039 |
Ending balance | 30,837 |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 28,112 |
Ending balance | 34,978 |
With an allowance | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Net investment gains (losses) on investments arising during the period | 34 |
Reclassification adjustment for (gains) losses included in net income | 13 |
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | (87) |
Ending balance | (40) |
With an allowance | DAC, DSI, VOBA and Reinsurance Recoverables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 2 |
Ending balance | 2 |
With an allowance | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | 0 |
Ending balance | 0 |
With an allowance | Policyholders’ Dividends | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (5) |
Ending balance | (5) |
With an allowance | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Net investment gains (losses) on investments arising during the period | (7) |
Reclassification adjustment for (gains) losses included in net income | (3) |
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | 19 |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 0 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | 0 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 1 |
Ending balance | 10 |
With an allowance | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 0 |
Net investment gains (losses) on investments arising during the period | 27 |
Reclassification adjustment for (gains) losses included in net income | 10 |
Increase (decrease) due to non-credit related losses recognized in AOCI during the period | (68) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 2 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | 0 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (4) |
Ending balance | $ (33) |
Equity (All Other Net Unrealize
Equity (All Other Net Unrealized Investment Gains and Losses in AOCI) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 24,039 |
Ending balance | 30,837 |
Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 28,112 |
Ending balance | 34,978 |
All Other | Net Unrealized Gains (Losses) on Investments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 45,339 |
Net investment gains (losses) on investments arising during the period | 12,195 |
Reclassification adjustment for (gains) losses included in net income | (715) |
Reclassification due to allowance for credit loses recorded during the period | 87 |
Ending balance | 56,906 |
All Other | DAC, DSI, VOBA and Reinsurance Recoverables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (1,585) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 226 |
Ending balance | (1,359) |
All Other | Future Policy Benefits, Policyholders’ Account Balances and Reinsurance Payables | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (2,909) |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | (1,036) |
Ending balance | (3,945) |
All Other | Policyholders’ Dividends | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (3,366) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (1,967) |
Ending balance | (5,333) |
All Other | Deferred Income Tax (Liability) Benefit | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (9,367) |
Net investment gains (losses) on investments arising during the period | (2,599) |
Reclassification adjustment for (gains) losses included in net income | 152 |
Reclassification due to allowance for credit loses recorded during the period | (19) |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | (40) |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | 202 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | 413 |
Ending balance | (11,258) |
All Other | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 28,112 |
Net investment gains (losses) on investments arising during the period | 9,596 |
Reclassification adjustment for (gains) losses included in net income | (563) |
Reclassification due to allowance for credit loses recorded during the period | 68 |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables | 186 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables | (834) |
Impact of net unrealized investment (gains) losses on policyholders’ dividends | (1,554) |
Ending balance | $ 35,011 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of the Numerators and Denominators of the Basic and Diluted Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic earnings per share | ||||||
Net income (loss) | $ (2,405) | $ (270) | $ 738 | $ 937 | $ (2,675) | $ 1,675 |
Less: Income (loss) attributable to noncontrolling interests | 4 | 30 | 5 | 35 | ||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards | 6 | 8 | 11 | 18 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Income | $ (2,415) | $ 700 | $ (2,691) | $ 1,622 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Weighted Average Shares | 394.6 | 405.3 | 395.8 | 407.3 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Basic Per Share Amount | $ (6.12) | $ 1.73 | $ (6.80) | $ 3.98 | ||
Effect of dilutive securities and compensation programs | ||||||
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic | $ 6 | $ 8 | $ 11 | $ 18 | ||
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted | $ 6 | $ 8 | $ 11 | $ 18 | ||
Stock options, Weighted Average Shares | 0 | 1.3 | 0 | 1.2 | ||
Deferred and long-term compensation programs, Weighted Average Shares | 0 | 1.1 | 0 | 1.1 | ||
Exchangeable Surplus Notes | $ 0 | $ 6 | $ 0 | $ 11 | ||
Exchangeable Surplus Notes, Weighted Average Shares | 0 | 6.2 | 0 | 6.2 | ||
Diluted earnings per share | ||||||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Income | $ (2,415) | $ 706 | $ (2,691) | $ 1,633 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Weighted Average Shares | 394.6 | 413.9 | 395.8 | 415.8 | ||
Net income (loss) attributable to Prudential Financial available to holders of Common Stock, Diluted Per Share Amount | $ (6.12) | $ 1.71 | $ (6.80) | $ 3.93 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Millions | Aug. 02, 2019USD ($)shares | Jun. 30, 2020shares | Jun. 30, 2019shares | Jun. 30, 2020shares | Jun. 30, 2019shares | Sep. 30, 2009USD ($) |
Debt Instrument [Line Items] | ||||||
Exchangeable surplus notes (in shares) | 0 | 6.2 | 0 | 6.2 | ||
Undistributed earnings allocated to participating unvested share-based payment awards, weighted outstanding shares | 5 | 4.5 | 5 | 4.6 | ||
Long-term Debt | Exhangeable Surplus Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ | $ 500,000,000 | |||||
Surplus notes principal amount, for each | $ | $ 1,000 | |||||
Interest rate | 5.36% | |||||
Debt Instrument, Convertible, Conversion Ratio | 12.3877 | |||||
Exchangeable surplus notes (in shares) | 6.2 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Securities Excluded From the Computation of Diluted Earnings Per Share) (Details) - $ / shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 6.4 | 0.9 | 5.7 | 1 |
Antidilutive stock options based on application of the treasury stock method | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 4.7 | 0.9 | 3.5 | 1 |
Antidilutive securities excluded from computation of earnings, Exercise Price Per Share | $ 74.92 | $ 105.95 | $ 79.06 | $ 104.57 |
Antidilutive stock options due to net loss available to holders of Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0.2 | 0 | 0.5 | 0 |
Antidilutive shares based on application of the treasury stock method | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 0.2 | 0 | 0.2 | 0 |
Antidilutive shares due to net loss available to holders of Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings, Shares | 1.3 | 0 | 1.5 | 0 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Adjusted Operating Income and Net Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ (2,332) | $ 876 | $ (2,670) | $ 2,016 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 931 | 1,594 | 2,070 | 3,136 |
Operating Segments | Total PGIM division | PGIM | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 324 | 264 | 488 | 478 |
Operating Segments | Total U.S. Workplace Solutions division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 286 | 548 | 575 | 852 |
Operating Segments | Total U.S. Workplace Solutions division | Retirement | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 281 | 467 | 526 | 718 |
Operating Segments | Total U.S. Workplace Solutions division | Group Insurance | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 5 | 81 | 49 | 134 |
Operating Segments | Total U.S. Individual Solutions division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 185 | 327 | 538 | 904 |
Operating Segments | Total U.S. Individual Solutions division | Individual Annuities | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 249 | 462 | 622 | 934 |
Operating Segments | Total U.S. Individual Solutions division | Individual Life | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (64) | (135) | (84) | (30) |
Operating Segments | Assurance IQ division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (16) | 0 | (39) | 0 |
Operating Segments | Assurance IQ division | Assurance IQ | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (16) | 0 | (39) | 0 |
Operating Segments | Total International Insurance division | International Insurance | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 693 | 790 | 1,391 | 1,649 |
Operating Segments | Total Corporate and Other | Corporate and Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (541) | (335) | (883) | (747) |
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (3,191) | (572) | (2,982) | (1,194) |
Segment Reconciling Items | Charges related to realized investment gains (losses), net | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 519 | (82) | (283) | (57) |
Segment Reconciling Items | Market experience updates | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 55 | (207) | (886) | (207) |
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (54) | (4) | (63) | (37) |
Segment Reconciling Items | Segment Reconciling Items, Other Adjustments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 32 | 0 | 77 | 0 |
Segment Reconciling Items | Closed Block division | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (22) | (21) | (23) | (40) |
Segment Reconciling Items | Other Divested and Run-off businesses | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | (602) | 168 | (580) | 415 |
U.S. Businesses | Operating Segments | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 455 | $ 875 | $ 1,074 | $ 1,756 |
Segment Information (Reconcil_2
Segment Information (Reconciliation of Select Financial Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 12,115 | $ 15,388 | $ 25,579 | $ 30,479 | |
Total Assets | 915,387 | 915,387 | $ 896,552 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 13,078 | 13,663 | 26,027 | 26,883 | |
Operating Segments | Total PGIM division | PGIM | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 957 | 926 | 1,735 | 1,796 | |
Total Assets | 47,722 | 47,722 | 47,655 | ||
Operating Segments | Total U.S. Workplace Solutions division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4,463 | 5,047 | 8,324 | 9,127 | |
Total Assets | 247,091 | 247,091 | 241,865 | ||
Operating Segments | Total U.S. Workplace Solutions division | Retirement | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,992 | 3,586 | 5,429 | 6,225 | |
Total Assets | 203,191 | 203,191 | 198,153 | ||
Operating Segments | Total U.S. Workplace Solutions division | Group Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,471 | 1,461 | 2,895 | 2,902 | |
Total Assets | 43,900 | 43,900 | 43,712 | ||
Operating Segments | Total U.S. Individual Solutions division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,516 | 2,796 | 5,194 | 5,513 | |
Total Assets | 291,688 | 291,688 | 285,112 | ||
Operating Segments | Total U.S. Individual Solutions division | Individual Annuities | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 953 | 1,288 | 2,101 | 2,523 | |
Total Assets | 191,259 | 191,259 | 189,040 | ||
Operating Segments | Total U.S. Individual Solutions division | Individual Life | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,563 | 1,508 | 3,093 | 2,990 | |
Total Assets | 100,429 | 100,429 | 96,072 | ||
Operating Segments | Assurance IQ division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 59 | 0 | 119 | 0 | |
Total Assets | 2,599 | 2,599 | 2,639 | ||
Operating Segments | Assurance IQ division | Assurance IQ | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 59 | 0 | 119 | 0 | |
Total Assets | 2,599 | 2,599 | 2,639 | ||
Operating Segments | Total International Insurance division | International Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 5,233 | 5,058 | 11,010 | 10,782 | |
Total Assets | 226,611 | 226,611 | 220,381 | ||
Operating Segments | Total Corporate and Other | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (150) | (164) | (355) | (335) | |
Total Assets | 37,927 | 37,927 | 37,573 | ||
Operating Segments | Total Closed Block division | Closed Block division | |||||
Segment Reporting Information [Line Items] | |||||
Total Assets | 61,749 | 61,749 | 61,327 | ||
Segment Reconciling Items | Realized investment gains (losses), net, and related adjustments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (2,241) | (259) | (2,695) | (478) | |
Segment Reconciling Items | Charges related to realized investment gains (losses), net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (20) | (54) | (81) | (125) | |
Segment Reconciling Items | Market experience updates | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (14) | (7) | (348) | (7) | |
Segment Reconciling Items | Segment Reconciling Items, Other Adjustments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 47 | 0 | 105 | 0 | |
Segment Reconciling Items | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (57) | (33) | (69) | (71) | |
Segment Reconciling Items | Closed Block division | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,340 | 1,301 | 2,017 | 2,675 | |
Segment Reconciling Items | Other Divested and Run-off businesses | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (18) | 777 | 623 | 1,602 | |
Intersegment Eliminations | Total PGIM division | PGIM | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 208 | 194 | 425 | 374 | |
U.S. Businesses | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,038 | $ 7,843 | 13,637 | $ 14,640 | |
Total Assets | $ 541,378 | $ 541,378 | $ 529,616 |
Segment Information Segment Inf
Segment Information Segment Information (Asset Management and Service Fees) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Asset management and service fees | $ 991 | $ 1,083 | $ 2,024 | $ 2,099 |
Asset-based management fees | ||||
Asset management and service fees | 840 | 872 | 1,715 | 1,715 |
Performance-based incentive fees | ||||
Asset management and service fees | 16 | 62 | 30 | 98 |
Other fees | ||||
Asset management and service fees | $ 135 | $ 149 | $ 279 | $ 286 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Commitments and Contingent Liabilities [Line Items] | |||
Fair value of collateral supporting these assets | $ 849 | $ 849 | $ 607 |
Commitments | Commercial Mortgage Loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Total outstanding mortgage loan commitments | 1,754 | 1,754 | 2,129 |
Portion of commitment where prearrangement to sell to investor exists | 787 | 787 | 751 |
Allowance for credit losses | 2 | 2 | |
Change in allowance for credit losses | 0 | (1) | |
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) | 8,394 | 8,394 | 7,372 |
Expected to be funded from separate accounts | |||
Commitments and Contingent Liabilities [Line Items] | |||
Commitments to Purchase Investment (excluding Commercial Mortgage Loans) | 53 | 53 | 49 |
Indemnification | Securities Lending and Securities Repurchase Transactions | |||
Commitments and Contingent Liabilities [Line Items] | |||
Indemnification provided to certain clients for securities lending and securities repurchase transactions | 7,167 | 7,167 | 5,071 |
Fair value of related collateral associated with above indemnifications | 7,317 | 7,317 | 5,204 |
Accrued liability associated with guarantee | 0 | 0 | 0 |
Indemnification | Securities Repurchase Transactions | |||
Commitments and Contingent Liabilities [Line Items] | |||
Indemnification provided to certain clients for securities lending and securities repurchase transactions | 34 | 34 | 38 |
Fair value of related collateral associated with above indemnifications | 34 | 34 | 37 |
Indemnification | Serviced Mortgage Loans | |||
Commitments and Contingent Liabilities [Line Items] | |||
Maximum exposure under indemnification agreements for mortgage loans serviced by the Company | 2,278 | 2,278 | 2,113 |
First-loss exposure portion of above | 668 | 668 | 622 |
Accrued liability associated with guarantee | 37 | 37 | 19 |
Allowance for credit losses | 17 | 17 | |
Change in allowance for credit losses | 0 | (1) | |
Guarantees of Asset Values | |||
Commitments and Contingent Liabilities [Line Items] | |||
Guaranteed value of third-parties’ assets | 82,325 | 82,325 | 80,009 |
Fair value of collateral supporting these assets | 86,247 | 86,247 | 81,604 |
Asset (liability) associated with guarantee, carried at fair value | 1 | 1 | 1 |
Other Guarantees | |||
Commitments and Contingent Liabilities [Line Items] | |||
Other guarantees where amount can be determined | 51 | 51 | 55 |
Accrued liability associated with guarantee | $ 0 | $ 0 | $ 0 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Narrative Excluding Litigation) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Commitments | Commercial Mortgage Loans | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Allowance for credit losses | $ 2 | $ 2 | ||
Change in allowance for credit losses | 0 | (1) | ||
Purchase Investments | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Change in allowance for credit losses | 0 | $ 0 | ||
Indemnification | Securities Lending and Securities Repurchase 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 | Serviced Mortgage Loans | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Allowance for credit losses | 17 | $ 17 | ||
Change in allowance for credit losses | 0 | (1) | ||
Mortgages subject to loss-sharing arrangements | $ 18,154 | $ 18,154 | $ 16,878 | |
Weighted-average debt service coverage ratio of mortgages subject to loss-sharing arrangements | 1.96 | 1.96 | 1.88 | |
Weighted-average loan-to-value ratio of mortgages subject to loss-sharing arrangements | 62.00% | 62.00% | 61.00% | |
Losses related to indemnifications that were settled | $ 0 | $ 0 | ||
Indemnification | Minimum | Serviced Mortgage Loans | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Percentage share of losses incurred on certain loans serviced | 4.00% | |||
Indemnification | Maximum | Serviced Mortgage Loans | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Percentage share of losses incurred on certain loans serviced | 20.00% | |||
Yield Maintenance Guarantee | ||||
Commitments and Contingent Liabilities [Line Items] | ||||
Guarantees related to certain investments the Company sold | $ 9 | $ 9 | $ 12 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Litigation Narrative) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Loss Contingencies [Line Items] | |
Estimate of possible losses in excess of accruals (less than) for litigation and regulatory matters | $ 250 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities Commitments and Contingent Liabilities (Assurance IQ Contingent Consideration Liability Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 36 Months Ended | |||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2022 | Dec. 31, 2019 | Oct. 31, 2019 | Sep. 04, 2019 | |
Business Acquisition [Line Items] | ||||||||||
Net income (loss) | $ (2,405,000,000) | $ (270,000,000) | $ 738,000,000 | $ 937,000,000 | $ (2,675,000,000) | $ 1,675,000,000 | ||||
Share price (usd per share) | $ 83.71 | |||||||||
Acquisition of Assurance IQ, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent consideration, liability | $ 1,000,000 | $ 1,000,000 | $ 105,000,000 | |||||||
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 Three | Acquisition of Assurance IQ, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Contingent liability, stock based compensation component | $ 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 | |||||||||
Subsequent Event | Condition One | Acquisition of Assurance IQ, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net income (loss) | $ 900,000,000 | |||||||||
Subsequent Event | Condition Four - Quotient - Numerator | Acquisition of Assurance IQ, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net income (loss) | 900,000,000 | |||||||||
Minimum | Condition One | Acquisition of Assurance IQ, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration payable, cash and equity interests | 0 | |||||||||
Minimum | Subsequent Event | Condition Two | Acquisition of Assurance IQ, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net income (loss) | 1,300,000,000 | |||||||||
Minimum | Subsequent Event | Condition Three | 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 | Subsequent Event | Condition Three | Acquisition of Assurance IQ, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net income (loss) | $ 1,300,000,000 |