Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 04, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity File Number | 000-55705 | ||
Entity Central Index Key | 0001167609 | ||
Entity Registrant Name | BRIGHTHOUSE LIFE INSURANCE Co OF NY | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 13-3690700 | ||
Entity Address, Address Line One | 285 Madison Avenue, 14th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10017 | ||
City Area Code | 980 | ||
Local Phone Number | 365-7100 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Balance Sheets
Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $3,460 and $2,897, respectively; allowance for credit losses of $0 and $0, respectively) | $ 3,843 | $ 3,067 |
Mortgage loans (net of allowance for credit losses of $2 and $3, respectively) | 643 | 625 |
Short-term investments, principally at estimated fair value | 71 | 52 |
Other invested assets, principally at estimated fair value | 266 | 108 |
Total investments | 4,823 | 3,852 |
Cash and cash equivalents | 275 | 148 |
Accrued investment income | 29 | 25 |
Premiums, reinsurance and other receivables | 1,223 | 1,048 |
Deferred policy acquisition costs | 160 | 175 |
Other assets | 27 | 33 |
Separate account assets | 4,965 | 4,676 |
Total assets | 11,502 | 9,957 |
Liabilities | ||
Future policy benefits | 825 | 743 |
Policyholder account balances | 3,151 | 2,339 |
Other policy-related balances | 12 | 9 |
Payables for collateral under derivative transactions | 137 | 85 |
Current income tax payable | 2 | 30 |
Deferred income tax liability | 178 | 114 |
Other liabilities | 940 | 912 |
Separate account liabilities | 4,965 | 4,676 |
Total liabilities | 10,210 | 8,908 |
Contingencies, Commitments and Guarantees (Note 13) | ||
Stockholder’s Equity | ||
Common stock, par value $10 per share; 200,000 shares authorized, issued and outstanding | 2 | 2 |
Additional paid-in capital | 491 | 491 |
Retained earnings (deficit) | 541 | 434 |
Accumulated other comprehensive income (loss) | 258 | 122 |
Total stockholder’s equity | 1,292 | 1,049 |
Total liabilities and stockholder’s equity | $ 11,502 | $ 9,957 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Amortized cost of fixed maturity securities available-for-sale | $ 3,460 | $ 2,897 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Mortgage loans valuation allowances | $ 2 | $ 3 |
Equity [Abstract] | ||
Common stock, par value | $ 10 | $ 10 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 200,000 | 200,000 |
Common stock, shares outstanding | 200,000 | 200,000 |
Statements of Operations
Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Premiums | $ 22 | $ 23 | $ 37 |
Universal life and investment-type product policy fees | 93 | 97 | 102 |
Net investment income | 134 | 122 | 100 |
Other revenues | (83) | (85) | (59) |
Net investment gains (losses) | 13 | 4 | (7) |
Net derivative gains (losses) | 129 | 42 | (18) |
Total revenues | 308 | 203 | 155 |
Expenses | |||
Policyholder benefits and claims | 23 | 33 | 7 |
Interest credited to policyholder account balances | 38 | 36 | 38 |
Amortization of deferred policy acquisition costs | 38 | 22 | 1 |
Other expenses | 77 | 81 | 66 |
Total expenses | 176 | 172 | 112 |
Income (loss) before provision for income tax | 132 | 31 | 43 |
Provision for income tax expense (benefit) | 25 | 3 | 5 |
Net income (loss) | $ 107 | $ 28 | $ 38 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 107 | $ 28 | $ 38 |
Other comprehensive income (loss): | |||
Unrealized investment gains (losses), net of related offsets | 177 | 173 | (62) |
Unrealized gains (losses) on derivatives | (5) | 0 | 5 |
Other comprehensive income (loss), before income tax | 172 | 173 | (57) |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (36) | (36) | 12 |
Other comprehensive income (loss), net of income tax | 136 | 137 | (45) |
Comprehensive income (loss) | $ 243 | $ 165 | $ (7) |
Statements of Stockholder's Equ
Statements of Stockholder's Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2017 | $ 844 | $ 2 | $ 416 | $ 396 | $ 30 |
Net income (loss) | 38 | 38 | |||
Other comprehensive income (loss), net of income tax | (45) | (45) | |||
Ending Balance at Dec. 31, 2018 | 837 | 2 | 416 | 434 | (15) |
Capital contribution | 75 | 75 | |||
Dividends paid to Brighthouse Life Insurance Company | (28) | (28) | |||
Net income (loss) | 28 | 28 | |||
Other comprehensive income (loss), net of income tax | 137 | 137 | |||
Ending Balance at Dec. 31, 2019 | 1,049 | 2 | 491 | 434 | 122 |
Net income (loss) | 107 | 107 | |||
Other comprehensive income (loss), net of income tax | 136 | 136 | |||
Ending Balance at Dec. 31, 2020 | $ 1,292 | $ 2 | $ 491 | $ 541 | $ 258 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | |||
Net income (loss) | $ 107 | $ 28 | $ 38 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Amortization of premiums and accretion of discounts associated with investments, net | 1 | 3 | 2 |
(Gains) losses on investments, net | (13) | (4) | 7 |
(Gains) losses on derivatives, net | (124) | (27) | 41 |
Interest credited to policyholder account balances | 38 | 36 | 38 |
Universal life and investment-type product policy fees | (93) | (97) | (102) |
Change in accrued investment income | (3) | (4) | (2) |
Change in premiums, reinsurance and other receivables | (35) | 0 | (15) |
Change in deferred policy acquisition costs | (4) | (17) | (29) |
Change in income tax | 0 | (2) | 7 |
Change in other assets | 90 | 92 | 97 |
Change in future policy benefits and other policy-related balances | 68 | 21 | 41 |
Change in other liabilities | (37) | (11) | (15) |
Net cash provided by (used in) operating activities | (5) | 18 | 108 |
Cash flows from investing activities | |||
Sales, maturities and repayments of fixed maturity securities | 480 | 626 | 408 |
Sales, maturities and repayments of mortgage loans | 60 | 97 | 8 |
Purchases of fixed maturity securities | (1,023) | (1,067) | (702) |
Purchases of mortgage loans | (80) | (275) | (63) |
Cash received in connection with freestanding derivatives | 313 | 107 | 6 |
Cash paid in connection with freestanding derivatives | (231) | (41) | (59) |
Net change in short-term investments | (20) | (52) | 0 |
Net change in other invested assets | 1 | 6 | (11) |
Net cash provided by (used in) investing activities | (500) | (599) | (413) |
Cash flows from financing activities | |||
Policyholder account balances: Deposits | 672 | 645 | 470 |
Policyholder account balances: Withdrawals | (100) | (144) | (149) |
Net change in payables for collateral under derivative transactions | 52 | 61 | 18 |
Short-term debt issued | 100 | 0 | 0 |
Short-term debt repaid | (100) | 0 | 0 |
Dividends paid | 0 | (28) | 0 |
Capital contribution | 0 | 75 | 0 |
Financing element on certain derivative instruments and other derivative related transactions, net | 8 | 0 | 0 |
Net cash provided by (used in) financing activities | 632 | 609 | 339 |
Change in cash, cash equivalents and restricted cash | 127 | 28 | 34 |
Cash, cash equivalents and restricted cash, beginning of year | 148 | 120 | 86 |
Cash, cash equivalents and restricted cash, end of year | 275 | 148 | 120 |
Supplemental disclosures of cash flow information | |||
Net cash paid (received) for interest | 1 | 0 | 0 |
Net cash paid (received) for income tax | $ 25 | $ 5 | $ (2) |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business “BHNY” and the “Company” refer to Brighthouse Life Insurance Company of NY, a New York domiciled life insurance company. Brighthouse Life Insurance Company of NY is a wholly-owned subsidiary of Brighthouse Life Insurance Company, which is an indirect wholly-owned subsidiary of Brighthouse Financial, Inc. (“BHF” together with its subsidiaries and affiliates, “Brighthouse Financial”). The Company is licensed to transact business in the state of New York. The Company markets or administers a range of annuity and life insurance products to individuals. The Company is organized into two segments: Annuities and Life. In addition, the Company reports certain of its results of operations in Corporate & Other. In 2016, MetLife, Inc. (together with its subsidiaries and affiliates, “MetLife”) announced its plan to pursue the separation of a substantial portion of its former U.S. retail business (the “Separation”). In connection with the Separation, 80.8% of MetLife, Inc.’s interest in BHF was distributed to holders of MetLife, Inc.’s common stock. On June 14, 2018, MetLife, Inc. divested its remaining shares of BHF common stock (the “MetLife Divestiture”). As a result, MetLife, Inc. and its subsidiaries and affiliates are no longer considered related parties subsequent to the MetLife Divestiture. Basis of Presentation The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. Reclassifications Certain amounts in the prior years’ financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as may be discussed when applicable in the Notes to the Financial Statements. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a standalone entity. Summary of Significant Accounting Policies Insurance Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for future amounts payable under insurance policies. Insurance liabilities are generally equal to the present value of future expected benefits to be paid, reduced by the present value of future expected net premiums. Assumptions used to measure the liability are based on the Company’s experience and include a margin for adverse deviation. The most significant assumptions used in the establishment of liabilities for future policy benefits are mortality, benefit election and utilization, withdrawals, policy lapse, and investment returns as appropriate to the respective product type. For traditional long-duration insurance contracts (term life insurance and income annuities), assumptions are determined at issuance of the policy and are not updated unless a premium deficiency exists. A premium deficiency exists when the liability for future policy benefits plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. To assess whether a premium deficiency exists, the Company groups insurance contracts based on the manner acquired, serviced and measured for profitability. In applying the profitability criteria, groupings are limited by segment. The Company is also required to reflect the effect of investment gains and losses in its premium deficiency testing. When a premium deficiency exists related to unrealized gains and losses, any reductions in deferred acquisition costs or increases in insurance liabilities are recorded to other comprehensive income (loss) (“OCI”). Policyholder account balances relate to customer deposits on deferred annuity contracts and are equal to the sum of deposits, plus interest credited, less charges and withdrawals. The Company may also hold additional liabilities for certain guaranteed benefits related to these contracts. The Company issues directly, certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDB”), the portion of guaranteed minimum income benefits (“GMIB”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWB”). Guarantees accounted for as embedded derivatives in policyholder account balances include the non-life contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMAB”) and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Recognition of Insurance Revenues and Deposits Premiums related to traditional life insurance and annuity contracts are recognized as revenues when due from policyholders. When premiums for income annuities are due over a significantly shorter period than the period over which policyholder benefits are incurred, any excess profit is deferred and recognized into earnings in proportion to the amount of expected future benefit payments. Deposits related to deferred annuities are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, risk charges, policy administration fees and surrender charges. These fees, which are included in universal life and investment-type product policy fees, are recognized when assessed to the contract holder. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. Deferred Policy Acquisition Costs and Deferred Sales Inducements The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as deferred policy acquisition costs (“DAC”). These costs mainly consist of commissions and include the portion of employees’ compensation and benefits related to time spent selling, underwriting or processing the issuance of new insurance contracts. All other acquisition-related costs are expensed as incurred. The Company amortizes DAC related to term life insurance over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC balance is deemed to be unrecoverable from future expected profits. The Company amortizes DAC on deferred annuities over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon investment returns in excess of the amounts credited to policyholders, mortality, in-force or persistency, benefit elections and utilization, and withdrawals. When significant negative gross profits are expected in future periods, the Company substitutes the amount of insurance in-force for expected future gross profits as the amortization basis for DAC. Assumptions for DAC are reviewed at least annually, and if they change significantly, the cumulative DAC amortization is re-estimated and adjusted by a cumulative charge or credit to net income. When expected future gross profits are below those previously estimated, the DAC amortization will increase, resulting in a current period charge to net income. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. The Company updates expected future gross profits to reflect the actual gross profits for each period, including changes to its nonperformance risk related to embedded derivatives and the actual amount of business remaining in-force. When actual gross profits exceed those previously estimated, the DAC amortization will increase, resulting in a current period charge to net income. The opposite result occurs when the actual gross profits are below the previously expected future gross profits. DAC balances on deferred annuities are also adjusted to reflect the effect of investment gains and losses and certain embedded derivatives (including changes in nonperformance risk). These adjustments can create fluctuations in net income from period to period. Changes in DAC balances related to unrealized gains and losses are recorded to OCI. DAC balances and amortization for variable annuities can be significantly impacted by changes in expected future gross profits related to projected separate account rates of return. The Company’s practice of determining changes in separate account returns assumes that long-term appreciation in equity markets is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of an existing contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If a modification is considered to have substantially changed the contract, the associated DAC is written off immediately as net income and any new acquisition costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. The Company also has intangible assets representing deferred sales inducements (“DSI”) which are included in other assets. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of DSI is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews DSI to determine whether the assets are impaired. Reinsurance The Company enters into reinsurance arrangements pursuant to which it cedes certain insurance risks to unaffiliated and related party reinsurers. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The accounting for reinsurance arrangements depends on whether the arrangement provides indemnification against loss or liability relating to insurance risk in accordance with GAAP. For ceded reinsurance of existing in-force blocks of insurance contracts that transfer significant insurance risk, premiums, benefits and the amortization of DAC are reported net of reinsurance ceded. Amounts recoverable from reinsurers related to incurred claims and ceded reserves are included in premiums, reinsurance and other receivables and amounts payable to reinsurers included in other liabilities. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records a funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Certain funds withheld arrangements may also contain embedded derivatives measured at fair value that are related to the investment return on the assets withheld. The Company cedes the risk associated with the variable annuities with guaranteed minimum benefits to Brighthouse Life Insurance Company. Certain features of the ceded guarantees are accounted for as an embedded derivative and measured at fair value. Index-linked Annuities The Company issues index-linked annuities. The crediting rate associated with index-linked annuities is accounted for at fair value as an embedded derivative. The estimated fair value is determined using a combination of an option pricing model and an option-budget approach. Under this approach, the company estimates the cost of funding the crediting rate using option pricing and establishes that cost on the balance sheet as a reduction to the initial deposit amount. In subsequent periods, the embedded derivative is remeasured at fair value while the reduction in initial deposit is accreted back up to the initial deposit over the estimated life of the contract. Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity Securities Available-For-Sale The Company’s fixed maturity securities are classified as available-for-sale and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of OCI, net of policy-related amounts and deferred income taxes. Publicly-traded security transactions are recorded on a trade date basis, while privately-placed and bank loan security transactions are recorded on a settlement date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis. The Company regularly evaluates fixed maturity securities for declines in fair value to determine if a credit loss exists. This evaluation is based on management’s case by case evaluation of the underlying reasons for the decline in fair value including, but not limited to an analysis of the gross unrealized losses by severity and financial condition of the issuer. For fixed maturity securities in an unrealized loss position, when the Company has the intent to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery, the amortized cost basis of the security is written down to fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. If the Company determines the decline in estimated fair value is due to credit losses, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an allowance through net investment gains (losses). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the allowance related to other-than-credit factors is recorded in OCI. Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Mortgage Loans Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and any deferred fees or expenses, and net of an allowance for credit losses. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. The allowance for credit losses for mortgage loans represents the Company’s best estimate of expected credit losses over the remaining life of the loans and is determined using relevant available information from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Other Invested Assets Other invested assets consist principally of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. If a derivative is not designated or did not qualify as an accounting hedge, changes in the estimated fair value of the derivative are reported in net derivative gains (losses). The Company generally reports cash received or paid for a derivative in the investing activity section of the statement of cash flows except for cash flows of certain derivative options with deferred premiums, which are reported in the financing activity section of the statement of cash flows. Hedge Accounting The Company primarily designates derivatives as a hedge of a forecasted transaction or a variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in fair value are recorded in OCI and subsequently reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative or hedged item expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). The changes in estimated fair value of derivatives previously recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When the hedged item matures or is sold, or the forecasted transaction is not probable of occurring, the Company immediately reclassifies any remaining balances in OCI to net derivative gains (losses). Embedded Derivatives The Company has certain insurance and reinsurance contracts that contain embedded derivatives which are required to be separated from their host contracts and reported as derivatives. These host contracts include: variable annuities with guaranteed minimum benefits; index-linked annuities that are directly written; and ceded reinsurance of variable annuity with guaranteed minimum benefits. Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the balance sheets. Changes in the estimated fair value of the embedded derivative are reported in net derivative gains (losses). See “— Variable Annuity Guarantees,” “— Index-Linked Annuities” and “— Reinsurance” for additional information on the accounting policies for embedded derivatives bifurcated from variable annuity and reinsurance host contracts. Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. In determining the estimated fair value of the Company’s investments, fair values are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical investments, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments. Separate Accounts Separate accounts underlying the Company’s variable life and annuity contracts are reported at fair value. Assets in separate accounts supporting the contract liabilities are legally insulated from the Company’s general account liabilities. Investments in these separate accounts are directed by the contract holder and all investment performance, net of contract fees and assessments, is passed through to the contract holder. Investment performance and the corresponding amounts credited to contract holders of such separate accounts are offset within the same line on the statements of operations. Separate accounts that do not pass all investment performance to the contract holder, including those underlying certain index-linked annuities, are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses. The accounting for investments in these separate accounts is consistent with the methodologies described herein for similar financial instruments held within the general account. The Company receives asset-based distribution and service fees from mutual funds available to the annuity contract holders as investment options in its separate accounts. These fees are recognized in the period in which the related services are performed and are included in other revenues in the statement of operations. Income Tax Income taxes as presented herein attribute current and deferred income taxes of MetLife, Inc., for periods up until the Separation, to Brighthouse Financial in a manner that is systematic, rational and consistent with the asset and liability method prescribed by the Financial Accounting Standards Board (“FASB”) guidance Accounting Standards Codification 740 — Income Taxes (“ASC 740”). The Company’s income tax provision was prepared following the modified separate return method. The modified separate return method applies ASC 740 to the standalone financial statements of each member of the consolidated group as if the group member were a separate taxpayer and a standalone enterprise, after providing benefits for losses. The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including the jurisdiction in which the deferred tax asset was generated, the length of time that carryforward can be utilized in the various taxing jurisdictions, future taxable income exclusive of reversing temporary differences and carryforwards, future reversals of existing taxable temporary differences, taxable income in prior carryback years, tax planning strategies and the nature, frequency, and amount of cumulative financial reporting income and losses in recent years. The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense. Litigation Contingencies The Company is a party to a number of legal actions and may be involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company’s financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected on the Company’s financial statements. Other Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at estimated fair value or amortized cost, which approximates estimated fair value. Employee Benefit Plans Brighthouse Services, LLC (“Brighthouse Services”), an affiliate, sponsors qualified and non-qualified defined contribution plans, and New England Life Insurance Company, an affiliate, sponsors certain frozen defined benefit pension and postretirement plans. Within its statement of operations, the Company has included expenses associated with its participants in these plans. Adoption of New Accounting Pronouncements Changes to GAAP are established by the FASB in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed were as |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 2. Segment Information The Company is organized into two segments: Annuities and Life. In addition, the Company reports certain of its results of operations in Corporate & Other. Annuities The Annuities segment consists of a variety of variable, fixed, index-linked and income annuities designed to address contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer and income security. Life The Life segment consists of insurance products and services, mainly term life insurance, designed to address policyholders’ needs for financial security and protected wealth transfer, which may be provided on a tax-advantaged basis. Corporate & Other Corporate & Other contains the excess capital not allocated to the segments and expenses associated with certain legal proceedings and income tax audit issues. Corporate & Other also includes term life insurance sold direct to consumers, which is no longer being offered for new sales. Financial Measures and Segment Accounting Policies Adjusted earnings is a financial measure used by management to evaluate performance, allocate resources and facilitate comparisons to industry results. Consistent with GAAP guidance for segment reporting, adjusted earnings is also used to measure segment performance. The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings should not be viewed as a substitute for net income (loss). Adjusted earnings, which may be positive or negative, focuses on the Company’s primary businesses principally by excluding the impact of market volatility, which could distort trends. The following are significant items excluded from total revenues, net of income tax, in calculating adjusted earnings: • Net investment gains (losses); • Net derivative gains (losses) except earned income and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment; and • Certain variable annuity GMIB fees (“GMIB Fees”). The following are significant items excluded from total expenses, net of income tax, in calculating adjusted earnings: • Amounts associated with benefits related to GMIBs (“GMIB Costs”); • Amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); and • Amortization of DAC related to: (i) net investment gains (losses), (ii) net derivative gains (losses), (iii) GMIB Fees and GMIB Costs and (iv) Market Value Adjustments. The tax impact of the adjustments mentioned above is calculated net of the statutory tax rate, which could differ from the Company’s effective tax rate. The segment accounting policies are the same as those used to prepare the Company’s financial statements, except for the adjustments to calculate adjusted earnings described above. In addition, segment accounting policies include the methods of capital allocation described below. Operating results by segment, as well as Corporate & Other, were as follows: Year Ended December 31, 2020 Annuities Life Corporate Total (In millions) Pre-tax adjusted earnings $ (11) $ 33 $ (6) $ 16 Provision for income tax expense (benefit) (4) 7 (2) 1 Adjusted earnings $ (7) $ 26 $ (4) 15 Adjustments for: Net investment gains (losses) 13 Net derivative gains (losses) 129 Other adjustments to net income (loss) (26) Provision for income tax (expense) benefit (24) Net income (loss) $ 107 Interest revenue $ 97 $ 36 $ 1 Year Ended December 31, 2019 Annuities Life Corporate Total (In millions) Pre-tax adjusted earnings $ (32) $ (10) $ — $ (42) Provision for income tax expense (benefit) (8) (2) (2) (12) Adjusted earnings $ (24) $ (8) $ 2 (30) Adjustments for: Net investment gains (losses) 4 Net derivative gains (losses) 42 Other adjustments to net income (loss) 27 Provision for income tax (expense) benefit (15) Net income (loss) $ 28 Interest revenue $ 83 $ 37 $ 2 Year Ended December 31, 2018 Annuities Life Corporate Total (In millions) Pre-tax adjusted earnings $ 27 $ 25 $ (2) $ 50 Provision for income tax expense (benefit) 4 5 (2) 7 Adjusted earnings $ 23 $ 20 $ — 43 Adjustments for: Net investment gains (losses) (7) Net derivative gains (losses) (18) Other adjustments to net income (loss) 18 Provision for income tax (expense) benefit 2 Net income (loss) $ 38 Interest revenue $ 64 $ 35 $ 1 Total revenues by segment, as well as Corporate & Other, were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Annuities $ 104 $ 90 $ 103 Life 48 51 60 Corporate & Other 2 3 4 Adjustments 154 59 (12) Total $ 308 $ 203 $ 155 Total assets by segment, as well as Corporate & Other, were as follows at: December 31, 2020 2019 (In millions) Annuities $ 9,467 $ 7,888 Life 1,859 1,933 Corporate & Other 176 136 Total $ 11,502 $ 9,957 Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Annuity products $ 20 $ 19 $ 53 Life insurance products 12 16 27 Total $ 32 $ 35 $ 80 All of the Company’s premiums, universal life and investment-type product policy fees and other revenues originated in the U.S. Revenues derived from any individual customer did not exceed 10% of premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2020, 2019 and 2018. |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Insurance | 3. Insurance Insurance Liabilities Insurance liabilities, including affiliated insurance liabilities on reinsurance ceded, are comprised of future policy benefits, policyholder account balances and other policy-related balances. Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2020 2019 (In millions) Annuities $ 3,612 $ 2,714 Life 365 367 Corporate & Other 11 10 Total $ 3,988 $ 3,091 See Note 5 for discussion of affiliated reinsurance liabilities included in the table above. Assumptions for Future Policyholder Benefits and Policyholder Account Balances For term life insurance, assumptions for mortality and persistency are based upon the Company’s experience. Interest rate assumptions for the aggregate future policy benefit liabilities range from 3% to 5%. The liability for single premium immediate annuities is based on the present value of expected future payments using the Company’s experience for mortality assumptions, with interest rate assumptions used in establishing such liabilities ranging from 1% to 8%. Policyholder account balances liabilities for deferred annuities have interest credited rates ranging from 1% to 6%. Guarantees The Company issues variable annuity contracts with guaranteed minimum benefits. GMDBs, the life contingent portion of GMWBs and certain portions of GMIBs are accounted for as insurance liabilities in future policyholder benefits, while other guarantees are accounted for in whole or in part as embedded derivatives in policyholder account balances and are further discussed in Note 7. The most significant assumptions for variable annuity guarantees included in future policyholder benefits are projected general account and separate account investment returns, and policyholder behavior including mortality, benefit election and utilization, and withdrawals. See Note 1 for more information on guarantees accounted for as insurance liabilities. Information regarding the liabilities for guarantees (excluding policyholder account balances and embedded derivatives) relating to variable annuity contracts was as follows: Variable Annuity Contracts GMDBs GMIBs Total (In millions) Direct Balance at January 1, 2018 $ 12 $ 172 $ 184 Incurred guaranteed benefits 1 26 27 Paid guaranteed benefits — — — Balance at December 31, 2018 13 198 211 Incurred guaranteed benefits 1 4 5 Paid guaranteed benefits — — — Balance at December 31, 2019 14 202 216 Incurred guaranteed benefits (1) 64 63 Paid guaranteed benefits (1) — (1) Balance at December 31, 2020 $ 12 $ 266 $ 278 Ceded Balance at January 1, 2018 $ 13 $ 61 $ 74 Incurred guaranteed benefits (1) 11 10 Paid guaranteed benefits — — — Balance at December 31, 2018 12 72 84 Incurred guaranteed benefits — 2 2 Paid guaranteed benefits — — — Balance at December 31, 2019 12 74 86 Incurred guaranteed benefits — 34 34 Paid guaranteed benefits (1) — (1) Balance at December 31, 2020 $ 11 $ 108 $ 119 Net Balance at January 1, 2018 $ (1) $ 111 $ 110 Incurred guaranteed benefits 2 15 17 Paid guaranteed benefits — — — Balance at December 31, 2018 1 126 127 Incurred guaranteed benefits 1 2 3 Paid guaranteed benefits — — — Balance at December 31, 2019 2 128 130 Incurred guaranteed benefits (1) 30 29 Paid guaranteed benefits — — — Balance at December 31, 2020 $ 1 $ 158 $ 159 Information regarding the Company’s guarantee exposure was as follows at: December 31, 2020 2019 In the At In the At (Dollars in millions) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 4,971 $ 3,816 $ 4,683 $ 3,742 Separate account value $ 4,962 $ 3,816 $ 4,675 $ 3,741 Net amount at risk $ 3 (4) $ 429 (5) $ 4 (4) $ 310 (5) Average attained age of contract holders 69 years 69 years 68 years 68 years _______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2020 2019 (In millions) Fund Groupings: Balanced $ 3,069 $ 3,001 Equity 1,350 1,180 Bond 546 495 Total $ 4,965 $ 4,676 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs, and Other Policy-Related Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs and Deferred Sales Inducements | 4. Deferred Policy Acquisition Costs and Deferred Sales Inducements See Note 1 for a description of capitalized acquisition costs. Information regarding DAC was as follows: Years Ended December 31, 2020 2019 2018 (In millions) DAC: Balance at January 1, $ 175 $ 186 $ 131 Capitalizations 42 39 30 Amortization related to net investment gains (losses) and net derivative gains (losses) 18 17 25 All other amortization (56) (39) (26) Total amortization (38) (22) (1) Unrealized investment gains (losses) (19) (28) 26 Balance at December 31, $ 160 $ 175 $ 186 Information regarding total DAC by segment, was as follows at: December 31, 2020 2019 (In millions) Annuities $ 141 $ 156 Life 19 19 Total $ 160 $ 175 Information regarding DSI was as follows: Years Ended December 31, 2020 2019 2018 (In millions) DSI: Balance at January 1, $ 25 $ 29 $ 27 Amortization (7) (2) (2) Unrealized investment gains (losses) — (2) 4 Balance at December 31, $ 18 $ 25 $ 29 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | 5. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed in Note 6. Annuities For annuities, the Company currently reinsures to its parent, Brighthouse Life Insurance Company, 100% of certain variable annuity risks or 100% of the living and death benefit guarantees issued in connection with variable annuities. Under the benefit guarantee reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders, and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. Life For its individual life insurance products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. The Company currently retains up to $100,000 per life and reinsures 100% of amounts in excess of the amount the Company retains. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specified characteristics. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. Catastrophe Coverage The Company has exposure to catastrophes, which could contribute to significant fluctuations in the Company’s results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. Reinsurance Recoverables The Company reinsures its business through a diversified group of highly rated reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers and monitors ratings and the financial strength of its reinsurers. In addition, the reinsurance recoverable balances due from each reinsurer and the recoverability of such balance is evaluated as part of this overall monitoring process. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts, and irrevocable letters of credit. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at both December 31, 2020 and 2019, were not significant. The Company had $20 million and $23 million of unsecured reinsurance recoverable balances with third-parties at December 31, 2020 and 2019, respectively. The amounts on the statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2020 2019 2018 (In millions) Premiums Direct premiums $ 82 $ 86 $ 91 Reinsurance ceded (60) (63) (54) Net premiums $ 22 $ 23 $ 37 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 97 $ 101 $ 106 Reinsurance ceded (4) (4) (4) Net universal life and investment-type product policy fees $ 93 $ 97 $ 102 Other revenues Direct other revenues $ 13 $ 13 $ 13 Reinsurance ceded (96) (98) (72) Net other revenues $ (83) $ (85) $ (59) Policyholder benefits and claims Direct policyholder benefits and claims $ 149 $ 92 $ 98 Reinsurance ceded (126) (59) (91) Net policyholder benefits and claims $ 23 $ 33 $ 7 Other expenses Direct other expenses $ 80 $ 87 $ 74 Reinsurance ceded (3) (6) (8) Net other expenses $ 77 $ 81 $ 66 The amounts on the balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2020 2019 Direct Ceded Total Direct Ceded Total (In millions) Assets Premiums, reinsurance and other receivables $ 24 $ 1,199 $ 1,223 $ 18 $ 1,030 $ 1,048 Liabilities Other liabilities $ 148 $ 792 $ 940 $ 86 $ 826 $ 912 Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on reinsurance were $435 million and $444 million at December 31, 2020 and 2019, respectively. There were no deposit liabilities on reinsurance at both December 31, 2020 and 2019. Related Party Reinsurance Transactions The Company has reinsurance agreements with its parent, Brighthouse Life Insurance Company, and Metropolitan Life Insurance Company, all of which were related parties until the completion of the MetLife Divestiture. Information regarding the significant effects of related party reinsurance included on the statements of operations was as follows: Years Ended December 31, 2020 2019 2018 (In millions) Premiums Reinsurance ceded $ (43) $ (45) $ (37) Universal life and investment-type product policy fees Reinsurance ceded $ (4) $ (3) $ (4) Other revenues Reinsurance ceded $ (96) $ (98) $ (72) Policyholder benefits and claims Reinsurance ceded $ (120) $ (51) $ (89) Other expenses Reinsurance ceded $ (7) $ (7) $ (8) Information regarding the significant effects of ceded related party reinsurance included on the balance sheets was as follows at: December 31, 2020 2019 (In millions) Assets Premiums, reinsurance and other receivables $ 749 $ 567 Liabilities Other liabilities $ 362 $ 387 The Company cedes risks to Brighthouse Life Insurance Company related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their estimated fair value are included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were $477 million and $338 million at December 31, 2020 and 2019, respectively. Net derivative gains (losses) associated with the embedded derivatives were $138 million, $38 million and ($12) million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts. The Company had no unsecured related party reinsurance recoverable balances at both December 31, 2020 and 2019. Related party reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on related party reinsurance were $5 million and $4 million at December 31, 2020 and 2019, respectively. There were no deposit liabilities on related party reinsurance at both December 31, 2020 and 2019. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 6. Investments See Note 8 for information about the fair value hierarchy for investments and the related valuation methodologies. In connection with the adoption of new guidance related to the credit losses (see Note 1), effective January 1, 2020, the Company updated its accounting policies on certain investments. Any accounting policy updates required by the new guidance are described in this footnote. Fixed Maturity Securities Available-for-sale Fixed Maturity Securities by Sector Fixed maturity securities by sector were as follows at: December 31, 2020 December 31, 2019 Amortized Allowance for Credit Losses Gross Unrealized Estimated Amortized Allowance for Credit Losses (1) Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 1,697 $ — $ 201 $ 1 $ 1,897 $ 1,361 $ — $ 87 $ 2 $ 1,446 Foreign corporate 503 — 58 2 559 396 — 23 3 416 ABS 350 — 6 1 355 142 — 1 1 142 CMBS 299 — 31 1 329 319 — 16 1 334 U.S. government and agency 254 — 58 — 312 290 — 27 — 317 RMBS 219 — 17 — 236 277 — 12 1 288 State and political subdivision 122 — 15 — 137 92 — 10 — 102 Foreign government 16 — 2 — 18 20 — 2 — 22 Total fixed maturity securities $ 3,460 $ — $ 388 $ 5 $ 3,843 $ 2,897 $ — $ 178 $ 8 $ 3,067 The Company held non-income producing fixed maturity securities with an estimated fair value of $2 million at December 31, 2020. The Company did not hold any non-income producing fixed maturity securities at December 31, 2019. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2020: Due in One Due After One Due After Five Due After Ten Structured Total Fixed (In millions) Amortized cost $ 27 $ 529 $ 1,104 $ 932 $ 868 $ 3,460 Estimated fair value $ 28 $ 570 $ 1,217 $ 1,108 $ 920 $ 3,843 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: December 31, 2020 December 31, 2019 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 54 $ 1 $ 2 $ — $ 94 $ 2 $ 17 $ — Foreign corporate 4 — 10 2 28 1 26 2 ABS 98 1 17 — 57 — 22 1 CMBS 19 1 — — 38 1 3 — RMBS 4 — — — 8 — 6 1 State and political subdivision 9 — — — 19 — — — Foreign government 2 — — — 2 — — — Total fixed maturity securities $ 190 $ 3 $ 29 $ 2 $ 246 $ 4 $ 74 $ 4 Total number of securities in an unrealized loss position 82 15 69 36 Allowance for Credit Losses for Fixed Maturity Securities Evaluation and Measurement Methodologies For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI. Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $24 million at December 31, 2020 and is included in accrued investment income. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. Current Period Evaluation Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded no allowance for credit losses on fixed maturity securities at December 31, 2020. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer-specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: December 31, 2020 2019 Carrying % of Carrying % of (Dollars in millions) Commercial $ 458 71.2 % $ 457 73.1 % Agricultural 187 29.1 171 27.3 Total mortgage loans 645 100.3 628 100.4 Allowance for credit losses (2) (0.3) (3) (0.4) Total mortgage loans, net $ 643 100.0 % $ 625 100.0 % Allowance for Credit Losses for Mortgage Loans Evaluation and Measurement Methodologies The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the worldwide pandemic sparked by the novel coronavirus (“COVID-19 pandemic”), interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at December 31, 2020. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $4 million at December 31, 2020. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year. Mortgage loans are evaluated in both portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDR”), foreclosure probable loans, and loans with dissimilar risk characteristics. Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Total (In millions) Balance at December 31, 2019 $ 2 $ 1 $ 3 Cumulative effect of change in accounting principle (1) — (1) Balance at January 1, 2020 1 1 2 Balance at December 31, 2020 $ 1 $ 1 $ 2 Credit Quality of Mortgage Loans by Portfolio Segment The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2020 2019 2018 2017 2016 Prior Total (In millions) December 31, 2020 Commercial mortgage loans Loan-to-value ratios Less than 65% $ 32 $ 102 $ 23 $ 13 $ 16 $ 187 $ 373 65% to 75% — 50 6 7 — 3 66 76% to 80% — — — — 1 3 4 Greater than 80% — — 5 — — 10 15 Total commercial mortgage loans 32 152 34 20 17 203 458 Agricultural mortgage loans Loan-to-value ratios Less than 65% 46 43 21 6 15 52 183 65% to 75% — 3 1 — — — 4 Total agricultural mortgage loans 46 46 22 6 15 52 187 Total $ 78 $ 198 $ 56 $ 26 $ 32 $ 255 $ 645 The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments. The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: December 31, 2020 2019 Amortized % of Amortized % of (Dollars in millions) Debt service coverage ratios: Greater than 1.20x $ 450 98.3 % $ 448 98.0 % 1.00x - 1.20x 8 1.7 9 2.0 Total $ 458 100.0 % $ 457 100.0 % The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments. Past Due Mortgage Loans by Portfolio Segment The Company has a high-quality, well performing mortgage loan portfolio, with all mortgage loans classified as performing at both December 31, 2020 and 2019 . Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans — 60 days and agricultural mortgage loans — 90 days. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the past due status of the impacted loans during the forbearance period is locked-in as of March 1, 2020, which reflects the date on which the COVID-19 pandemic began to affect the borrower’s ability to make payments. At December 31, 2020, the Company did not have any COVID-19 pandemic modified loans in delinquent status. The Company did not have any mortgage loans past due at December 31, 2020. Mortgage Loans in Nonaccrual Status by Portfolio Segment Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized and in the process of foreclosure. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the impacted loans generally will not be reported as in a nonaccrual status during the period of deferral. A COVID-19 pandemic modified loan is only reported as a nonaccrual asset in the event a borrower declares bankruptcy, the borrower experiences significant credit deterioration such that the Company does not expect to collect all principal and interest due, or the loan was 90 days past due at the onset of the pandemic. At December 31, 2020, the Company did not have any COVID-19 pandemic modified loans in nonaccrual status. The Company did not have any mortgage loans in a nonaccrual status at either December 31, 2020 or 2019. Modified Mortgage Loans by Portfolio Segment Under certain circumstances, modifications are granted to nonperforming mortgage loans. Each modification is evaluated to determine if a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the amount of debt owed, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company did not have any mortgage loans modified in a troubled debt restructuring during the year ended December 31, 2020. Short-term modifications made on a good faith basis to borrowers who were not more than 30 days past due at December 31, 2019 and in response to the COVID-19 pandemic are not considered TDRs. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities and the effect on DAC, DSI and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”). The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Fixed maturity securities $ 383 $ 170 $ (36) Derivatives 1 6 6 Subtotal 384 176 (30) Amounts allocated from: Future policy benefits (20) (3) — DAC and DSI (38) (19) 11 Subtotal (58) (22) 11 Deferred income tax benefit (expense) (68) (32) 4 Net unrealized investment gains (losses) $ 258 $ 122 $ (15) The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Balance at January 1, $ 122 $ (15) $ 30 Unrealized investment gains (losses) during the year 208 206 (87) Unrealized investment gains (losses) relating to: Future policy benefits (17) (3) — DAC and DSI (19) (30) 30 Deferred income tax benefit (expense) (36) (36) 12 Balance at December 31, $ 258 $ 122 $ (15) Change in net unrealized investment gains (losses) $ 136 $ 137 $ (45) Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both December 31, 2020 and 2019. Invested Assets on Deposit and Pledged as Collateral Invested assets on deposit and pledged as collateral at estimated fair value were as follows at: December 31, 2020 2019 (In millions) Invested assets on deposit (regulatory deposits) $ 2 $ 2 Invested assets pledged as collateral (1) 5 19 Total invested assets on deposit and pledged as collateral (2) $ 7 $ 21 _______________ (1) The Company has pledged invested assets in connection with derivative transactions (see Note 7). (2) The Company did not hold any restricted cash and cash equivalents at either December 31, 2020 or 2019. Variable Interest Entities The Company has invested in legal entities that are variable interest entities (“VIE”). VIEs are consolidated when the investor is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both the power to (i) direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either December 31, 2020 or 2019. The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: December 31, 2020 2019 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 301 $ 274 $ 394 $ 376 The Company’s investments in unconsolidated VIEs are described below. Fixed Maturity Securities The Company invests in U.S. corporate bonds, foreign corporate bonds, and Structured Securities, issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-for-sale” for information on these securities. Net Investment Income The components of net investment income were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Investment income: Fixed maturity securities $ 112 $ 101 $ 86 Mortgage loans 26 21 17 Cash, cash equivalents and short-term investments 1 3 1 Other 1 1 1 Total investment income 140 126 105 Less: Investment expenses 6 4 5 Net investment income $ 134 $ 122 $ 100 See “— Related Party Investment Transactions” for discussion of related party investment expenses. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Fixed maturity securities $ 13 $ 5 $ (5) Mortgage loans — (1) — Other — — (2) Total net investment gains (losses) $ 13 $ 4 $ (7) Sales or Disposals of Fixed Maturity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Proceeds $ 321 $ 460 $ 274 Gross investment gains $ 14 $ 8 $ 1 Gross investment losses (1) (3) (6) Net investment gains (losses) $ 13 $ 5 $ (5) Related Party Investment Transactions All of the transactions reported as related party activity occurred prior to the MetLife Divestiture (see Note 1). |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 7. Derivatives Accounting for Derivatives See Note 1 for a description of the Company’s accounting policies for derivatives and Note 8 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks, including interest rate, foreign currency exchange rate and equity market. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates and/or financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. The Company’s OTC derivatives are settled bilateral contracts between two counterparties (“OTC-bilateral”). Interest Rate Derivatives Interest rate caps: The Company uses interest rate caps to protect against interest rate exposure arising from mismatches between assets and liabilities. Interest rate caps are used in non-qualifying hedging relationships. Foreign Currency Exchange Rate Derivatives Foreign currency swaps: The Company uses foreign currency swaps to convert foreign currency denominated cash flows to U.S. dollars to reduce cash flow fluctuations due to changes in currency exchange rates. Foreign currency swaps are used in cash flow and non-qualifying hedging relationships. Equity Derivatives Equity index options: The Company uses equity index options to hedge index-linked annuity products against adverse changes in equity markets. Equity index options are used in non-qualifying hedging relationships. Equity total return swaps: The Company uses equity total return swaps to hedge index-linked annuity products against adverse changes in equity markets. Equity total return swaps are used in non-qualifying hedging relationships. Primary Risks Managed by Derivatives The primary underlying risk exposure, gross notional amount, and estimated fair value of derivatives held were as follows at: Primary Underlying Risk Exposure December 31, 2020 2019 Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency swaps Foreign currency exchange rate $ 115 $ 4 $ 3 $ 98 $ 6 $ — Total qualifying hedges 115 4 3 98 6 — Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate caps Interest rate 800 1 — 800 2 — Foreign currency swaps Foreign currency exchange rate 16 4 — 18 4 — Equity index options Equity market 5,908 250 94 4,699 96 39 Equity total return swaps Equity market 249 7 — — — — Total non-designated or non-qualifying derivatives 6,973 262 94 5,517 102 39 Embedded derivatives: Ceded guaranteed minimum income benefits Other N/A 477 — N/A 338 — Direct guaranteed minimum benefits Other N/A — 14 N/A — (28) Direct index-linked annuities Other N/A — 393 N/A — 180 Total embedded derivatives Other N/A 477 407 N/A 338 152 Total $ 7,088 $ 743 $ 504 $ 5,615 $ 446 $ 191 The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows: Year Ended December 31, 2020 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ (5) Total cash flow hedges — — 1 (5) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives 195 — — — Embedded derivatives (66) — — — Total non-qualifying hedges 129 — — — Total $ 129 $ — $ 1 $ (5) Year Ended December 31, 2019 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ — Total cash flow hedges — — 1 — Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (8) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives 113 — — — Embedded derivatives (64) — — — Total non-qualifying hedges 42 — — — Total $ 42 $ — $ 1 $ — Year Ended December 31, 2018 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ 5 Total cash flow hedges — — 1 5 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (2) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives (31) — — — Embedded derivatives 13 — — — Total non-qualifying hedges (19) — — — Total $ (19) $ — $ 1 $ 5 At December 31, 2020 and 2019, the balance in AOCI associated with cash flow hedges was $1 million and $6 million, respectively. Counterparty Credit Risk The Company may be exposed to credit-related losses in the event of counterparty nonperformance on derivative instruments. Generally, the credit exposure is the fair value at the reporting date less any collateral received from the counterparty. The Company manages its credit risk by: (i) entering into derivative transactions with creditworthy counterparties governed by master netting agreements; (ii) trading through regulated exchanges and central clearing counterparties; (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. See Note 8 for a description of the impact of credit risk on the valuation of derivatives. The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) December 31, 2020 Derivative assets $ 266 $ (91) $ (136) $ 39 $ (34) $ 5 Derivative liabilities $ 97 $ (91) $ — $ 6 $ (6) $ — December 31, 2019 Derivative assets $ 108 $ (21) $ (82) $ 5 $ (4) $ 1 Derivative liabilities $ 39 $ (21) $ — $ 18 $ (18) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. The Company’s collateral arrangements generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the amount owed by that counterparty reaches a minimum transfer amount. Certain of these arrangements also include credit-contingent provisions which permit the party with positive fair value to terminate the derivative at the current fair value or demand immediate full collateralization from the party in a net liability position, in the event that the financial strength or credit rating of the party in a net liability position falls below a certain level. The aggregate estimated fair values of derivatives in a net liability position containing such credit contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at: December 31, 2020 2019 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 6 $ 18 Estimated Fair Value of Collateral Provided (2): Fixed maturity securities $ 6 $ 19 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. Fair Value When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy. December 31, 2020 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 1,873 $ 24 $ 1,897 Foreign corporate — 557 2 559 ABS — 349 6 355 CMBS — 329 — 329 U.S. government and agency 158 154 — 312 RMBS — 236 — 236 State and political subdivision — 137 — 137 Foreign government — 18 — 18 Total fixed maturity securities 158 3,653 32 3,843 Short-term investments 63 8 — 71 Derivative assets: (1) Interest rate — 1 — 1 Foreign currency exchange rate — 8 — 8 Equity market — 257 — 257 Total derivative assets — 266 — 266 Embedded derivatives within asset host contracts (2) — — 477 477 Separate account assets — 4,965 — 4,965 Total assets $ 221 $ 8,892 $ 509 $ 9,622 Liabilities Derivative liabilities: (1) Foreign currency exchange rate $ — $ 3 $ — $ 3 Equity market — 94 — 94 Embedded derivatives within liability host contracts (2) — — 407 407 Total liabilities $ — $ 97 $ 407 $ 504 December 31, 2019 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 1,419 $ 27 $ 1,446 Foreign corporate — 408 8 416 ABS — 133 9 142 CMBS — 334 — 334 U.S. government and agency 184 133 — 317 RMBS — 288 — 288 State and political subdivision — 102 — 102 Foreign government — 22 — 22 Total fixed maturity securities 184 2,839 44 3,067 Short-term investments 35 17 — 52 Derivative assets: (1) Interest rate — 2 — 2 Foreign currency exchange rate — 10 — 10 Equity market — 96 — 96 Total derivative assets — 108 — 108 Embedded derivatives within asset host contracts (2) — — 338 338 Separate account assets — 4,676 — 4,676 Total assets $ 219 $ 7,640 $ 382 $ 8,241 Liabilities Derivative liabilities: (1) Equity market $ — $ 39 $ — $ 39 Embedded derivatives within liability host contracts (2) — — 152 152 Total liabilities $ — $ 39 $ 152 $ 191 _______________ (1) Derivative assets are presented within other invested assets on the balance sheets and derivative liabilities are presented within other liabilities on the balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the balance sheets. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the balance sheets. Valuation Controls and Procedures The Company monitors and provides oversight of valuation controls and policies for securities, mortgage loans and derivatives, which are primarily executed by its valuation service providers. The valuation methodologies used to determine fair values prioritize the use of observable market prices and market-based parameters and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. The valuation methodologies for securities, mortgage loans and derivatives are reviewed on an ongoing basis and revised when necessary. In addition, the Chief Accounting Officer periodically reports to the Audit Committee of Brighthouse Financial’s Board of Directors regarding compliance with fair value accounting standards. The fair value of financial assets and financial liabilities is based on quoted market prices, where available. Prices received are assessed to determine if they represent a reasonable estimate of fair value. Several controls are performed, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. Independent non-binding broker quotes, also referred to herein as “consensus pricing,” are used for a non-significant portion of the portfolio. Prices received from independent brokers are assessed to determine if they represent a reasonable estimate of fair value by considering such pricing relative to the current market dynamics and current pricing for similar financial instruments. A formal process is also applied to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained. If obtaining an independent non-binding broker quotation is unsuccessful, the last available price will be used. Additional controls are performed, such as, balance sheet analytics to assess reasonableness of period to period pricing changes, including any price adjustments. Price adjustments are applied if prices or quotes received from independent pricing services or brokers are not considered reflective of market activity or representative of estimated fair value. The Company did not have significant price adjustments during the year ended December 31, 2020. Determination of Fair Value Fixed Maturity Securities The fair values for actively traded marketable bonds, primarily U.S. government and agency securities, are determined using the quoted market prices and are classified as Level 1 assets. For fixed maturity securities classified as Level 2 assets, fair values are determined using either a market or income approach and are valued based on a variety of observable inputs as described below. U.S. corporate and foreign corporate securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark yields, spreads off benchmark yields, new issuances, issuer rating, trades of identical or comparable securities, or duration. Privately-placed securities are valued using the additional key inputs: market yield curve, call provisions, observable prices and spreads for similar public or private securities that incorporate the credit quality and industry sector of the issuer, and delta spread adjustments to reflect specific credit-related issues. U.S. government and agency, state and political subdivision and foreign government securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, benchmark U.S. Treasury yield or other yields, spread off the U.S. Treasury yield curve for the identical security, issuer ratings and issuer spreads, broker-dealer quotes, and comparable securities that are actively traded. Structured Securities: Fair value is determined using third-party commercial pricing services, with the primary inputs being quoted prices in markets that are not active, spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, ratings, geographic region, weighted average coupon and weighted average maturity, average delinquency rates and debt-service coverage ratios. Other issuance-specific information is also used, including, but not limited to; collateral type, structure of the security, vintage of the loans, payment terms of the underlying asset, payment priority within tranche, and deal performance. Short-term Investments The fair value for actively traded short-term investments are determined using quoted market prices and are classified as Level 1 assets. For financial instruments classified as Level 2 assets, fair values are determined using a market approach and are valued based on a variety of observable inputs as described below Fair value is determined using third-party commercial pricing services, with the primary input being quoted prices in markets that are not active. Derivatives The fair values for OTC-bilateral derivatives classified as Level 2 assets or liabilities are determined using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models which are based on market standard valuation methodologies and a variety of observable inputs. The significant inputs to the pricing models for most OTC-bilateral derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Certain OTC-bilateral derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Embedded Derivatives Embedded derivatives principally include certain direct variable annuity guarantees and certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, and equity crediting rates within index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life contingent portion of GMWBs and certain portions of GMIBs are accounted for as embedded derivatives and measured at estimated fair value separately from the host variable annuity contract. These embedded derivatives are classified within policyholder account balances on the balance sheets with changes in estimated fair value reported in net derivative gains (losses). The Company determines the fair value of these embedded derivatives by estimating the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations of policyholder behavior. The calculation is based on in-force business and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. The percentage of fees included in the initial fair value measurement is not updated in subsequent periods. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly-traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. Transfers Into or Out of Level 3: Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at: December 31, 2020 December 31, 2019 Impact of Valuation Techniques Significant Range Range Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates 0.03% - 12.13% 0.02% - 11.31% Decrease (1) • Lapse rates 0.25% - 15.00% 0.25% - 16.00% Decrease (2) • Utilization rates 0.00% - 25.00% 0.00% - 25.00% Increase (3) • Withdrawal rates 0.25% - 10.00% 0.25% - 10.00% (4) • Long-term equity volatilities 16.66% - 22.21% 16.24% - 21.65% Increase (5) • Nonperformance risk spread 0.47% - 1.97% 0.54% - 1.99% Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. (3) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. (4) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (6) Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The Company does not develop unobservable inputs used in measuring fair value for all other assets and liabilities classified within Level 3; therefore, these are not included in the table above. The other Level 3 assets and liabilities primarily included fixed maturity securities and derivatives. For fixed maturity securities valued based on non-binding broker quotes, an increase (decrease) in credit spreads would result in a higher (lower) fair value. For derivatives valued based on third-party pricing models, an increase (decrease) in credit spreads would generally result in a higher (lower) fair value. The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) were summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Net Embedded Derivatives (2) Corporate (1) Structured Securities (In millions) Balance, January 1, 2019 $ 13 $ 5 $ 311 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) — — (64) Total realized/unrealized gains (losses) included in AOCI 1 — — Purchases (5) 30 9 — Sales (5) — — — Issuances (5) — — — Settlements (5) — — (61) Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) (9) (5) — Balance, December 31, 2019 35 9 186 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) — — (66) Total realized/unrealized gains (losses) included in AOCI — — — Purchases (5) 16 6 — Sales (5) (6) — — Issuances (5) — — — Settlements (5) — — (50) Transfers into Level 3 (6) 3 — — Transfers out of Level 3 (6) (22) (9) — Balance, December 31, 2020 $ 26 $ 6 $ 70 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2018 (7) $ — $ — $ (20) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2019 (7) $ — $ — $ (122) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2020 (7) $ — $ — $ (111) Changes in unrealized gains (losses) included in OCI for the instruments still held at December 31, 2020 (7) $ — $ — $ — Gains (Losses) Data for the year ended December 31, 2018: Total realized/unrealized gains (losses) included in net income (loss) (3) (4) $ — $ — $ 13 Total realized/unrealized gains (losses) included in AOCI $ (1) $ — $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (3) Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivative gains (losses). (4) Interest accruals, as well as cash interest coupons received, are excluded from the rollforward. (5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (6) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivative gains (losses). Fair Value of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income and payables for collateral under derivative transactions. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the tables below are not considered financial instruments subject to this disclosure. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: December 31, 2020 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 643 $ — $ — $ 681 $ 681 Premiums, reinsurance and other receivables $ 436 $ — $ 1 $ 435 $ 436 Liabilities Policyholder account balances $ 915 $ — $ — $ 979 $ 979 Other liabilities $ 430 $ — $ 7 $ 423 $ 430 December 31, 2019 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 625 $ — $ — $ 647 $ 647 Premiums, reinsurance and other receivables $ 444 $ — $ — $ 444 $ 444 Liabilities Policyholder account balances $ 963 $ — $ — $ 955 $ 955 Other liabilities $ 432 $ — $ 1 $ 431 $ 432 |
Short-term Debt
Short-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Short-term Debt [Abstract] | |
Short-term Debt | 9. Short-term Debt Intercompany Liquidity Facilities BHF has established an intercompany liquidity facility with certain of its insurance and non-insurance subsidiaries to provide short-term liquidity within and across the combined group of companies. Under the facility, which is comprised of a series of revolving loan agreements among BHF and its participating subsidiaries, each company may lend to or borrow from each other, subject to certain maximum limits for a term not more than 364 days. On March 30, 2020, BHNY issued a $100 million promissory note to Brighthouse Holdings, LLC, which bore interest at a fixed rate of 2.4996%, and was repaid upon maturity on June 30, 2020. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | 10. Equity Capital Contributions During the years ended December 31, 2020, 2019 and 2018, the Company received cash capital contributions of $0, $75 million, and $0, respectively, from Brighthouse Life Insurance Company. Statutory Equity and Income The state of domicile of the Company imposes RBC requirements that were developed by the National Association of Insurance Commissioners (“NAIC”). Regulatory compliance is determined by a ratio of a company’s total adjusted capital (“TAC”), calculated in the manner prescribed by the NAIC to its authorized control level RBC (“ACL RBC”), calculated in the manner prescribed by the NAIC, based on the statutory-based filed financial statements. Companies below specific trigger levels or ratios are classified by their respective levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC. The RBC ratio for the Company was in excess of 400% for all periods presented. The Company prepares statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services (“NYDFS”). The NAIC has adopted the Codification of Statutory Accounting Principles (“Statutory Codification”). Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. Modifications by the state insurance department may impact the effect of Statutory Codification on the statutory capital and surplus of the Company. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting of reinsurance agreements with different presentation and valuing investments and deferred tax assets on a different basis. New York has adopted certain prescribed accounting practices, primarily consisting of the continuous Commissioners’ Annuity Reserve Valuation Method, which impacts deferred annuities, NYDFS Circular Letter No 11, which impacts deferred premiums, and NYDFS Seventh Amendment to Regulation 172, which impacts admitted unearned reinsurance premiums. The collective impact of these prescribed accounting practices decreased the statutory capital and surplus of the Company for the years ended December 31, 2020 and 2019 by an amount of $33 million and $40 million, respectively, in excess of the amount of the decrease had capital and surplus been measured under NAIC guidance. The tables below present amounts from the Company, which are derived from the statutory-basis financial statements as filed with the NYDFS. Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2020 2019 2018 (In millions) Brighthouse Life Insurance Company of NY New York $ (390) $ (139) $ 19 Statutory capital and surplus was as follows at: December 31, Company 2020 2019 (In millions) Brighthouse Life Insurance Company of NY $ 373 $ 579 Dividend Restrictions The Company is not permitted to pay dividends in 2021 to its parent without insurance regulatory approval from the NYDFS. The Company did not pay any dividends in 2020, paid $28 million in 2019 and did not pay any dividends in 2018. Under New York Insurance Laws, the Company is permitted, without prior insurance regulatory clearance, to pay stockholder dividends to its parent in any calendar year based on one of two standards. Under one standard, the Company is permitted, without prior insurance regulatory clearance, to pay dividends out of earned surplus (defined as positive “unassigned funds (surplus)”), excluding 85% of the change in net unrealized capital gains or losses (less capital gains tax), for the immediately preceding calendar year), in an amount up to the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains), not to exceed 30% of surplus to policyholders as of the end of the immediately preceding calendar year. In addition, under this standard, the Company may not, without prior insurance regulatory clearance, pay any dividends in any calendar year immediately following a calendar year for which its net gain from operations, excluding realized capital gains, was negative. Under the second standard, if dividends are paid out of other than earned surplus, the Company may, without prior insurance regulatory clearance, pay an amount up to the lesser of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year, or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). In addition, the Company will be permitted to pay a dividend to its parent in excess of the amounts allowed under both standards only if it files notice of its intention to declare such a dividend and the amount thereof with the New York Superintendent of Financial Services (the “NY Superintendent”) and the NY Superintendent either approves the distribution of the dividend or does not disapprove the dividend within 30 days of its filing. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI was as follows: Unrealized Unrealized Total (In millions) Balance at December 31, 2017 $ 29 $ 1 $ 30 OCI before reclassifications (67) 5 (62) Deferred income tax benefit (expense) 13 — 13 AOCI before reclassifications, net of income tax (25) 6 (19) Amounts reclassified from AOCI 5 — 5 Deferred income tax benefit (expense) (1) — (1) Amounts reclassified from AOCI, net of income tax 4 — 4 Balance at December 31, 2018 (21) 6 (15) OCI before reclassifications 178 — 178 Deferred income tax benefit (expense) (37) — (37) AOCI before reclassifications, net of income tax 120 6 126 Amounts reclassified from AOCI (5) — (5) Deferred income tax benefit (expense) 1 — 1 Amounts reclassified from AOCI, net of income tax (4) — (4) Balance at December 31, 2019 116 6 122 OCI before reclassifications 190 (5) 185 Deferred income tax benefit (expense) (40) 1 (39) AOCI before reclassifications, net of income tax 266 2 268 Amounts reclassified from AOCI (13) — (13) Deferred income tax benefit (expense) 3 — 3 Amounts reclassified from AOCI, net of income tax (10) — (10) Balance at December 31, 2020 $ 256 $ 2 $ 258 _______________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC and DSI. Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Statements of Operations Locations Years Ended December 31, 2020 2019 2018 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 13 $ 5 $ (5) Net investment gains (losses) Net unrealized investment gains (losses), before income tax 13 5 (5) Income tax (expense) benefit (3) (1) 1 Net unrealized investment gains (losses), net of income tax 10 4 (4) Total reclassifications, net of income tax $ 10 $ 4 $ (4) |
Other Revenues and Other Expens
Other Revenues and Other Expenses | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Revenues and Other Expenses | 11. Other Revenues and Other Expenses Other Revenues The Company has entered into contracts with mutual funds, fund managers, and their affiliates (collectively, the “Funds”) whereby the Company is paid monthly or quarterly fees (“12b-1 fees”) for providing certain services to customers and distributors of the Funds. The 12b-1 fees are generally equal to a fixed percentage of the average daily balance of the customer’s investment in a fund. The percentage is specified in the contract between the Company and the Funds. Payments are generally collected when due and are neither refundable nor able to offset future fees. To earn these fees, the Company performs services such as responding to phone inquiries, maintaining records, providing information to distributors and shareholders about fund performance and providing training to account managers and sales agents. The passage of time reflects the satisfaction of the Company’s performance obligations to the Funds, and is used to recognize revenue associated with 12b-1 fees. Direct other revenues consisted primarily of 12b-1 fees of $13 million, $13 million and $14 million for the years ended December 31, 2020, 2019 and 2018, respectively, of which all were reported in the Annuities segment. Other Expenses Information on other expenses was as follows: Years Ended December 31, 2020 2019 2018 (In millions) Compensation $ 20 $ 20 $ 13 Contracted services and other labor costs 16 15 9 Transition services agreements 6 14 11 Establishment costs 8 3 5 Premium and other taxes, licenses and fees — 2 3 Volume related costs, excluding compensation, net of DAC capitalization 22 19 19 Other 5 8 6 Total other expenses $ 77 $ 81 $ 66 Capitalization of DAC See Note 4 for additional information on the capitalization of DAC. Related Party Expenses See Note 14 for a discussion of related party expenses included in the table above. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 12. Income Tax The provision for income tax was as follows: Years Ended December 31, 2020 2019 2018 (In millions) Current: Federal $ (3) $ 33 $ (2) Deferred: Federal 28 (30) 7 Provision for income tax expense (benefit) $ 25 $ 3 $ 5 The reconciliation of the income tax provision at the statutory tax rate to the provision for income tax as reported was as follows: Years Ended December 31, 2020 2019 2018 (Dollars in millions) Tax provision at statutory rate $ 28 $ 6 $ 9 Tax effect of: Dividends received deduction (2) (2) (2) Prior year tax — — (1) Tax credits (1) (1) (1) Provision for income tax expense (benefit) $ 25 $ 3 $ 5 Effective tax rate 19 % 9 % 12 % Deferred income tax represents the tax effect of the differences between the book and tax bases of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following at: December 31, 2020 2019 (In millions) Deferred income tax assets: Tax credit carryforwards $ 6 $ 4 Net operating loss carryforwards 62 3 Total deferred income tax assets 68 7 Deferred income tax liabilities: Investments, including derivatives 34 12 Policyholder liabilities and receivables 112 45 Intangibles 1 1 Net unrealized investment gains 68 33 DAC 31 30 Total deferred income tax liabilities 246 121 Net deferred income tax asset (liability) $ (178) $ (114) At December 31, 2020, the Company had net operating loss carryforwards of approximately $297 million, of which approximately $5 million expires in year 2032 and approximately $292 million is carried forward indefinitely. The following table sets forth the foreign tax credits available for carryforward for tax purposes at December 31, 2020. Foreign Tax Credits Carryforwards (In millions) Expiration 2020-2024 $ 1 2025-2029 4 2030-2034 1 2035-2039 — Indefinite — $ 6 The Company’s liability for unrecognized tax benefits may increase or decrease in the next 12 months. A reasonable estimate of the increase or decrease cannot be made at this time. However, the Company continues to believe that the ultimate resolution of the pending issues will not result in a material change to its financial statements, although the resolution of income tax matters could impact the Company’s effective tax rate in the future. The ending balance for unrecognized tax benefits that, if recognized, would impact the effective rate is $1 million for each of the years ended December 31, 2020, 2019 and 2018. The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. Interest related to unrecognized tax benefits was not significant. The Company had no penalties for each of the years ended December 31, 2020, 2019 and 2018. The Company is under continuous examination by the Internal Revenue Service and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction and subsidiary. The Company is no longer subject to federal, state or local income tax examinations for years prior to 2007. Management believes it has established adequate tax liabilities, and final resolution of the audit for the years 2007 and forward is not expected to have a material impact on the Company’s financial statements. Tax Sharing Agreements For the periods prior to the Separation, the Company was included in a consolidated federal life and non-life income tax return in accordance with the provisions of the Tax Code. Current taxes (and the benefits of tax attributes such as losses) are allocated to the Company under the consolidated tax return regulations and a tax sharing agreement with MetLife. This tax sharing agreement states that federal taxes will be computed on a modified separate return basis with benefits for losses. For periods after the Separation, Brighthouse Life Insurance Company and any directly owned life insurance and reinsurance subsidiaries (including the Company and BRCD) entered in a tax sharing agreement to join a life consolidated federal income tax return. The non-life subsidiaries of Brighthouse Life Insurance Company will file their own federal income tax returns. The tax sharing agreements state that federal taxes are computed on a modified separate return basis with benefit for losses. Income Tax Transactions with Former Parent The Company entered into a tax separation agreement with MetLife. Among other things, the tax separation agreement governs the allocation between MetLife and the Company of the responsibility for the taxes of the MetLife group. The tax separation agreement also allocates rights, obligations and responsibilities in connection with certain administrative matters relating to the preparation of tax returns and control of tax audits and other proceedings relating to taxes. In November 2018, MetLife paid $2 million to the Company under the tax separation agreement. At both December 31, 2020 and 2019, the current income tax payable included a $3 million payable to MetLife related to this agreement. |
Contingencies, Commitments and
Contingencies, Commitments and Guarantees | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies, Commitments and Guarantees | 13. Contingencies, Commitments and Guarantees Contingencies, Commitments and Guarantees Litigation Sales Practices Claims Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities or other products. The Company continues to defend vigorously against the claims in these matters. The Company believes adequate provision has been made in its financial statements for all probable and reasonably estimable losses for sales practices matters. Summary Various litigations, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large or indeterminate amounts, including punitive and treble damages, are sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s net income or cash flows in particular quarterly or annual periods. Other Contingencies As with litigation and regulatory loss contingencies, the Company considers establishing liabilities for certain non-litigation loss contingencies when assertions are made involving disputes or other matters with counterparties to contractual arrangements entered into by the Company, including with third-party vendors. The Company establishes liabilities for such non-litigation loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In matters where it is not probable, but is reasonably possible that a loss will be incurred and the amount of loss can be reasonably estimated, such losses or range of losses are disclosed, and no accrual is made. In the absence of sufficient information to support an assessment of the reasonably possible loss or range of loss, no accrual is made and no loss or range of loss is disclosed. On a quarterly and annual basis, the Company reviews relevant information with respect to non-litigation contingencies and, when applicable, updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. Commitments Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $7 million and $11 million at December 31, 2020 and 2019, respectively. Commitments to Fund Private Corporate Bond Investments Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and bylaws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company did not have a liability for indemnities, guarantees and commitments at either December 31, 2020 and 2019. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions The Company has various existing arrangements with its Brighthouse affiliates and had previous arrangements with MetLife for services necessary to conduct its activities. Certain of the MetLife services have continued, however, MetLife ceased to be a related party in June 2018 (see Note 1). See Note 11 for amounts related to continuing transition services. The Company has related party reinsurance, investment, debt and equity transactions (see Notes 5, 6, 9 and 10). Other material arrangements between the Company and its related parties not disclosed elsewhere are as follows: Shared Services and Overhead Allocations Brighthouse Services currently provides, and previously MetLife provided, certain services to the Company, each using an allocation methodology under certain agreements for such services. These services include, but are not limited to, treasury, financial planning and analysis, legal, human resources, tax planning, internal audit, financial reporting and information technology. When specific identification to a particular legal entity and/or product is not practicable, an allocation methodology based on various performance measures or activity-based costing, such as sales, new policies/contracts issued, reserves, and in-force policy counts is used. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Management believes that the methods used to allocate expenses under these arrangements are reasonable. Revenues received from an affiliate related to these agreements, recorded in universal life and investment-type product policy fees, were $11 million, $12 million and $12 million for the years ended December 31, 2020, 2019 and 2018, respectively. Costs incurred under these arrangements with Brighthouse Services, as well as with MetLife prior to the MetLife Divestiture, were $53 million, $61 million and $44 million for the years ended December 31, 2020, 2019 and 2018, respectively, and were recorded in other expenses. Included in these costs are those incurred related to the establishment of services and infrastructure to replace those previously provided by MetLife. The Company incurred costs of $3 million, $1 million and $3 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company is charged a fee to reflect the value of the available infrastructure and services provided by these costs. While management believes the method used to allocate expenses under this arrangement is reasonable, the allocated expenses may not be indicative of those of a standalone entity. The Company had net receivables from/(payables to) affiliates, related to the items discussed above, of ($6) million and ($18) million at December 31, 2020 and 2019, respectively. Broker-Dealer Transactions The related party expense for the Company was commissions paid on the sale of variable products and passed through to the broker-dealer affiliate. The related party revenue for the Company was fee income passed through the broker-dealer affiliate from trusts and mutual funds whose shares serve as investment options of policyholders of the Company. Fee income received related to these transactions and recorded in other revenues was $12 million for all the years ended December 31, 2020, 2019 and 2018. Commission expenses incurred related to these transactions and recorded in other expenses was $71 million, $66 million and $58 million for the years ended December 31, 2020, 2019 and 2018, respectively. The Company also had related party fee income receivables of $1 million at both December 31, 2020 and 2019. |
Summary of Investments - Other
Summary of Investments - Other Than Investments in Related Parties Summary of Investments - Other Than Investments in Related Parties (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Text Block] | Brighthouse Life Insurance Company of NY (An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.) Schedule I Summary of Investments Other Than Investments in Related Parties December 31, 2020 (In millions) Types of Investments Cost or Amortized Cost (1) Estimated Fair Amount at Fixed maturity securities: Bonds: U.S. government and agency $ 254 $ 312 $ 312 State and political subdivision 122 137 137 Public utilities 92 105 105 Foreign government 16 18 18 All other corporate bonds 2,104 2,347 2,347 Total bonds 2,588 2,919 2,919 Mortgage-backed and asset-backed securities 868 920 920 Redeemable preferred stock 4 4 4 Total fixed maturity securities 3,460 3,843 3,843 Mortgage loans 643 643 Short-term investments 71 71 Other invested assets 266 266 Total investments $ 4,440 $ 4,823 _______________ |
Supplementary Insurance Informa
Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | Brighthouse Life Insurance Company of NY (An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.) Schedule III Supplementary Insurance Information December 31, 2020 and 2019 (In millions) Segment DAC Future Policy Policyholder Unearned Unearned 2020 Annuities $ 141 $ 474 $ 3,138 $ — $ 2 Life 19 352 13 1 — Corporate & Other — 11 — — — Total $ 160 $ 837 $ 3,151 $ 1 $ 2 2019 Annuities $ 156 $ 390 $ 2,324 $ — $ 2 Life 19 352 15 1 — Corporate & Other — 10 — — — Total $ 175 $ 752 $ 2,339 $ 1 $ 2 _______________ (1) Amounts are included within the future policy benefits and other policy-related balances column. (2) Includes premiums received in advance. Brighthouse Life Insurance Company of NY (An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.) Schedule III Supplementary Insurance Information (continued) December 31, 2020, 2019 and 2018 (In millions) Segment Premiums and Net Policyholder Benefits Amortization of Other 2020 Annuities $ 102 $ 97 $ 59 $ 37 $ 57 Life 12 36 2 1 12 Corporate & Other 1 1 — — 8 Total $ 115 $ 134 $ 61 $ 38 $ 77 2019 Annuities $ 105 $ 83 $ 21 $ 19 $ 68 Life 14 37 48 3 10 Corporate & Other 1 2 — — 3 Total $ 120 $ 122 $ 69 $ 22 $ 81 2018 Annuities $ 111 $ 63 $ 27 $ (2) $ 46 Life 25 35 17 3 15 Corporate & Other 3 2 1 — 5 Total $ 139 $ 100 $ 45 $ 1 $ 66 _______________ (1) See Note 2 of the Notes to the Financial Statements for the basis of allocation of net investment income. |
Reinsurance_2
Reinsurance | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | Brighthouse Life Insurance Company of NY (An Indirect Wholly-Owned Subsidiary of Brighthouse Financial, Inc.) Schedule IV Reinsurance December 31, 2020, 2019 and 2018 (Dollars in millions) Gross Amount Ceded Assumed Net Amount % Amount Assumed to Net 2020 Life insurance in-force $ 41,707 $ 35,792 $ — $ 5,915 — % Life insurance premium (1) $ 82 $ 60 $ — $ 22 — % 2019 Life insurance in-force $ 44,324 $ 38,220 $ — $ 6,104 — % Life insurance premium (1) $ 86 $ 63 $ — $ 23 — % 2018 Life insurance in-force $ 46,722 $ 39,987 $ — $ 6,735 — % Life insurance premium (1) $ 91 $ 54 $ — $ 37 — % _______________ (1) Includes annuities with life contingencies. For the year ended December 31, 2020, reinsurance ceded included related party transactions for life insurance in-force of $27.0 billion, and life insurance premiums of $43 million. For the year ended December 31, 2019, reinsurance ceded included related party transactions for life insurance in-force of $28.7 billion, and life insurance premiums of $45 million. For the year ended December 31, 2018, reinsurance ceded included related party transactions for life insurance in-force of $29.8 billion, and life insurance premiums of $37 million. |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from these estimates. |
Consolidation of Subsidiaries | Reclassifications Certain amounts in the prior years’ financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as may be discussed when applicable in the Notes to the Financial Statements. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a standalone entity. |
Future Policy Benefit Liabilities and Policyholder Account Balances | Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for future amounts payable under insurance policies. Insurance liabilities are generally equal to the present value of future expected benefits to be paid, reduced by the present value of future expected net premiums. Assumptions used to measure the liability are based on the Company’s experience and include a margin for adverse deviation. The most significant assumptions used in the establishment of liabilities for future policy benefits are mortality, benefit election and utilization, withdrawals, policy lapse, and investment returns as appropriate to the respective product type. For traditional long-duration insurance contracts (term life insurance and income annuities), assumptions are determined at issuance of the policy and are not updated unless a premium deficiency exists. A premium deficiency exists when the liability for future policy benefits plus the present value of expected future gross premiums are less than expected future benefits and expenses (based on current assumptions). When a premium deficiency exists, the Company will reduce any deferred acquisition costs and may also establish an additional liability to eliminate the deficiency. To assess whether a premium deficiency exists, the Company groups insurance contracts based on the manner acquired, serviced and measured for profitability. In applying the profitability criteria, groupings are limited by segment. The Company is also required to reflect the effect of investment gains and losses in its premium deficiency testing. When a premium deficiency exists related to unrealized gains and losses, any reductions in deferred acquisition costs or increases in insurance liabilities are recorded to other comprehensive income (loss) (“OCI”). |
Variable Annuity Guaranteed Minimum Benefits | The Company issues directly, certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits (“GMDB”), the portion of guaranteed minimum income benefits (“GMIB”) that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits (“GMWB”). Guarantees accounted for as embedded derivatives in policyholder account balances include the non-life contingent portion of GMWBs, guaranteed minimum accumulation benefits (“GMAB”) and the portion of GMIBs that do not require annuitization. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. Index-linked Annuities The Company issues index-linked annuities. The crediting rate associated with index-linked annuities is accounted for at fair value as an embedded derivative. The estimated fair value is determined using a combination of an option pricing model and an option-budget approach. Under this approach, the company estimates the cost of funding the crediting rate using option pricing and establishes that cost on the balance sheet as a reduction to the initial deposit amount. In subsequent periods, the embedded derivative is remeasured at fair value while the reduction in initial deposit is accreted back up to the initial deposit over the estimated life of the contract. Embedded Derivatives Embedded derivatives principally include certain direct variable annuity guarantees and certain affiliated ceded reinsurance agreements related to such variable annuity guarantees, and equity crediting rates within index-linked annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. The Company issues variable annuity products with guaranteed minimum benefits. GMABs, the non-life contingent portion of GMWBs and certain portions of GMIBs are accounted for as embedded derivatives and measured at estimated fair value separately from the host variable annuity contract. These embedded derivatives are classified within policyholder account balances on the balance sheets with changes in estimated fair value reported in net derivative gains (losses). The Company determines the fair value of these embedded derivatives by estimating the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations of policyholder behavior. The calculation is based on in-force business and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. The percentage of fees included in the initial fair value measurement is not updated in subsequent periods. Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly-traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. |
Recognition of Insurance Revenues and Deposits | Recognition of Insurance Revenues and Deposits Premiums related to traditional life insurance and annuity contracts are recognized as revenues when due from policyholders. When premiums for income annuities are due over a significantly shorter period than the period over which policyholder benefits are incurred, any excess profit is deferred and recognized into earnings in proportion to the amount of expected future benefit payments. Deposits related to deferred annuities are credited to policyholder account balances. Revenues from such contracts consist of asset-based investment management fees, risk charges, policy administration fees and surrender charges. These fees, which are included in universal life and investment-type product policy fees, are recognized when assessed to the contract holder. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. |
Deferred Policy Acquisition Costs and Value of Business Acquired | Deferred Policy Acquisition Costs and Deferred Sales Inducements The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as deferred policy acquisition costs (“DAC”). These costs mainly consist of commissions and include the portion of employees’ compensation and benefits related to time spent selling, underwriting or processing the issuance of new insurance contracts. All other acquisition-related costs are expensed as incurred. The Company amortizes DAC related to term life insurance over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC balance is deemed to be unrecoverable from future expected profits. The Company amortizes DAC on deferred annuities over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon investment returns in excess of the amounts credited to policyholders, mortality, in-force or persistency, benefit elections and utilization, and withdrawals. When significant negative gross profits are expected in future periods, the Company substitutes the amount of insurance in-force for expected future gross profits as the amortization basis for DAC. Assumptions for DAC are reviewed at least annually, and if they change significantly, the cumulative DAC amortization is re-estimated and adjusted by a cumulative charge or credit to net income. When expected future gross profits are below those previously estimated, the DAC amortization will increase, resulting in a current period charge to net income. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. The Company updates expected future gross profits to reflect the actual gross profits for each period, including changes to its nonperformance risk related to embedded derivatives and the actual amount of business remaining in-force. When actual gross profits exceed those previously estimated, the DAC amortization will increase, resulting in a current period charge to net income. The opposite result occurs when the actual gross profits are below the previously expected future gross profits. DAC balances on deferred annuities are also adjusted to reflect the effect of investment gains and losses and certain embedded derivatives (including changes in nonperformance risk). These adjustments can create fluctuations in net income from period to period. Changes in DAC balances related to unrealized gains and losses are recorded to OCI. DAC balances and amortization for variable annuities can be significantly impacted by changes in expected future gross profits related to projected separate account rates of return. The Company’s practice of determining changes in separate account returns assumes that long-term appreciation in equity markets is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of an existing contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If a modification is considered to have substantially changed the contract, the associated DAC is written off immediately as net income and any new acquisition costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. |
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination, Policy [Policy Text Block] | Deferred Policy Acquisition Costs and Deferred Sales Inducements The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as deferred policy acquisition costs (“DAC”). These costs mainly consist of commissions and include the portion of employees’ compensation and benefits related to time spent selling, underwriting or processing the issuance of new insurance contracts. All other acquisition-related costs are expensed as incurred. The Company amortizes DAC related to term life insurance over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, include provisions for adverse deviation, and are consistent with the assumptions used to calculate future policy benefit liabilities. These assumptions are not revised after policy issuance or acquisition unless the DAC balance is deemed to be unrecoverable from future expected profits. The Company amortizes DAC on deferred annuities over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The amount of future gross profits is dependent principally upon investment returns in excess of the amounts credited to policyholders, mortality, in-force or persistency, benefit elections and utilization, and withdrawals. When significant negative gross profits are expected in future periods, the Company substitutes the amount of insurance in-force for expected future gross profits as the amortization basis for DAC. Assumptions for DAC are reviewed at least annually, and if they change significantly, the cumulative DAC amortization is re-estimated and adjusted by a cumulative charge or credit to net income. When expected future gross profits are below those previously estimated, the DAC amortization will increase, resulting in a current period charge to net income. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. The Company updates expected future gross profits to reflect the actual gross profits for each period, including changes to its nonperformance risk related to embedded derivatives and the actual amount of business remaining in-force. When actual gross profits exceed those previously estimated, the DAC amortization will increase, resulting in a current period charge to net income. The opposite result occurs when the actual gross profits are below the previously expected future gross profits. DAC balances on deferred annuities are also adjusted to reflect the effect of investment gains and losses and certain embedded derivatives (including changes in nonperformance risk). These adjustments can create fluctuations in net income from period to period. Changes in DAC balances related to unrealized gains and losses are recorded to OCI. DAC balances and amortization for variable annuities can be significantly impacted by changes in expected future gross profits related to projected separate account rates of return. The Company’s practice of determining changes in separate account returns assumes that long-term appreciation in equity markets is only changed when sustained interim deviations are expected. The Company monitors these events and only changes the assumption when its long-term expectation changes. Periodically, the Company modifies product benefits, features, rights or coverages that occur by the exchange of an existing contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If a modification is considered to have substantially changed the contract, the associated DAC is written off immediately as net income and any new acquisition costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. |
Deferred Sales Inducements | The Company also has intangible assets representing deferred sales inducements (“DSI”) which are included in other assets. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. The amortization of DSI is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a possible impairment exists, the Company reviews DSI to determine whether the assets are impaired. |
Reinsurance | Reinsurance The Company enters into reinsurance arrangements pursuant to which it cedes certain insurance risks to unaffiliated and related party reinsurers. Cessions under reinsurance agreements do not discharge the Company’s obligations as the primary insurer. The accounting for reinsurance arrangements depends on whether the arrangement provides indemnification against loss or liability relating to insurance risk in accordance with GAAP. For ceded reinsurance of existing in-force blocks of insurance contracts that transfer significant insurance risk, premiums, benefits and the amortization of DAC are reported net of reinsurance ceded. Amounts recoverable from reinsurers related to incurred claims and ceded reserves are included in premiums, reinsurance and other receivables and amounts payable to reinsurers included in other liabilities. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on such deposits is recorded as other revenues or other expenses, as appropriate. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. Under certain reinsurance agreements, the Company withholds the funds rather than transferring the underlying investments and, as a result, records a funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. Certain funds withheld arrangements may also contain embedded derivatives measured at fair value that are related to the investment return on the assets withheld. The Company cedes the risk associated with the variable annuities with guaranteed minimum benefits to Brighthouse Life Insurance Company. Certain features of the ceded guarantees are accounted for as an embedded derivative and measured at fair value. |
Investments | Investments Net Investment Income and Net Investment Gains (Losses) Income from investments is reported within net investment income, unless otherwise stated herein. Gains and losses on sales of investments, impairment losses and changes in valuation allowances are reported within net investment gains (losses), unless otherwise stated herein. Fixed Maturity Securities Available-For-Sale The Company’s fixed maturity securities are classified as available-for-sale and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of OCI, net of policy-related amounts and deferred income taxes. Publicly-traded security transactions are recorded on a trade date basis, while privately-placed and bank loan security transactions are recorded on a settlement date basis. Investment gains and losses on sales are determined on a specific identification basis. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts and is based on the estimated economic life of the securities, which for residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”) considers the estimated timing and amount of prepayments of the underlying loans. The amortization of premium and accretion of discount of fixed maturity securities also takes into consideration call and maturity dates. Amortization of premium and accretion of discount on Structured Securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed, and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Securities are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive Structured Securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other Structured Securities, the effective yield is recalculated on a retrospective basis. The Company regularly evaluates fixed maturity securities for declines in fair value to determine if a credit loss exists. This evaluation is based on management’s case by case evaluation of the underlying reasons for the decline in fair value including, but not limited to an analysis of the gross unrealized losses by severity and financial condition of the issuer. For fixed maturity securities in an unrealized loss position, when the Company has the intent to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery, the amortized cost basis of the security is written down to fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. If the Company determines the decline in estimated fair value is due to credit losses, the difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected is recognized as an allowance through net investment gains (losses). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of the allowance related to other-than-credit factors is recorded in OCI. Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Mortgage Loans Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, and any deferred fees or expenses, and net of an allowance for credit losses. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. The allowance for credit losses for mortgage loans represents the Company’s best estimate of expected credit losses over the remaining life of the loans and is determined using relevant available information from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Other Invested Assets Other invested assets consist principally of freestanding derivatives with positive estimated fair values which are described in “— Derivatives” below. |
Derivatives | Derivatives Freestanding Derivatives Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the estimated fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. If a derivative is not designated or did not qualify as an accounting hedge, changes in the estimated fair value of the derivative are reported in net derivative gains (losses). The Company generally reports cash received or paid for a derivative in the investing activity section of the statement of cash flows except for cash flows of certain derivative options with deferred premiums, which are reported in the financing activity section of the statement of cash flows. Hedge Accounting The Company primarily designates derivatives as a hedge of a forecasted transaction or a variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge). When a derivative is designated as a cash flow hedge and is determined to be highly effective, changes in fair value are recorded in OCI and subsequently reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative or hedged item expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. When hedge accounting is discontinued the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). The changes in estimated fair value of derivatives previously recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. When the hedged item matures or is sold, or the forecasted transaction is not probable of occurring, the Company immediately reclassifies any remaining balances in OCI to net derivative gains (losses). Embedded Derivatives The Company has certain insurance and reinsurance contracts that contain embedded derivatives which are required to be separated from their host contracts and reported as derivatives. These host contracts include: variable annuities with guaranteed minimum benefits; index-linked annuities that are directly written; and ceded reinsurance of variable annuity with guaranteed minimum benefits. Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the balance sheets. Changes in the estimated fair value of the embedded derivative are reported in net derivative gains (losses). Derivative Strategies The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize its exposure to various market risks, including interest rate, foreign currency exchange rate and equity market. Derivatives are financial instruments with values derived from interest rates, foreign currency exchange rates and/or financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. The Company’s OTC derivatives are settled bilateral contracts between two counterparties (“OTC-bilateral”). Interest Rate Derivatives Interest rate caps: The Company uses interest rate caps to protect against interest rate exposure arising from mismatches between assets and liabilities. Interest rate caps are used in non-qualifying hedging relationships. Foreign Currency Exchange Rate Derivatives Foreign currency swaps: The Company uses foreign currency swaps to convert foreign currency denominated cash flows to U.S. dollars to reduce cash flow fluctuations due to changes in currency exchange rates. Foreign currency swaps are used in cash flow and non-qualifying hedging relationships. Equity Derivatives Equity index options: The Company uses equity index options to hedge index-linked annuity products against adverse changes in equity markets. Equity index options are used in non-qualifying hedging relationships. Equity total return swaps: The Company uses equity total return swaps to hedge index-linked annuity products against adverse changes in equity markets. Equity total return swaps are used in non-qualifying hedging relationships. |
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. In determining the estimated fair value of the Company’s investments, fair values are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical investments, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments. When developing estimated fair values, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. |
Policyholder Accounts, Policy [Policy Text Block] | Separate Accounts Separate accounts underlying the Company’s variable life and annuity contracts are reported at fair value. Assets in separate accounts supporting the contract liabilities are legally insulated from the Company’s general account liabilities. Investments in these separate accounts are directed by the contract holder and all investment performance, net of contract fees and assessments, is passed through to the contract holder. Investment performance and the corresponding amounts credited to contract holders of such separate accounts are offset within the same line on the statements of operations. Separate accounts that do not pass all investment performance to the contract holder, including those underlying certain index-linked annuities, are combined on a line-by-line basis with the Company’s general account assets, liabilities, revenues and expenses. The accounting for investments in these separate accounts is consistent with the methodologies described herein for similar financial instruments held within the general account. The Company receives asset-based distribution and service fees from mutual funds available to the annuity contract holders as investment options in its separate accounts. These fees are recognized in the period in which the related services are performed and are included in other revenues in the statement of operations. |
Income Tax | Income Tax Income taxes as presented herein attribute current and deferred income taxes of MetLife, Inc., for periods up until the Separation, to Brighthouse Financial in a manner that is systematic, rational and consistent with the asset and liability method prescribed by the Financial Accounting Standards Board (“FASB”) guidance Accounting Standards Codification 740 — Income Taxes (“ASC 740”). The Company’s income tax provision was prepared following the modified separate return method. The modified separate return method applies ASC 740 to the standalone financial statements of each member of the consolidated group as if the group member were a separate taxpayer and a standalone enterprise, after providing benefits for losses. The Company’s accounting for income taxes represents management’s best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established, as well as the amount of such allowances. When making such determination, the Company considers many factors, including the jurisdiction in which the deferred tax asset was generated, the length of time that carryforward can be utilized in the various taxing jurisdictions, future taxable income exclusive of reversing temporary differences and carryforwards, future reversals of existing taxable temporary differences, taxable income in prior carryback years, tax planning strategies and the nature, frequency, and amount of cumulative financial reporting income and losses in recent years. The Company may be required to change its provision for income taxes when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, the effect of changes in tax laws, tax regulations, or interpretations of such laws or regulations, is recognized in net income tax expense (benefit) in the period of change. The Company determines whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded on the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax expense. |
Litigation Contingencies | Litigation Contingencies The Company is a party to a number of legal actions and may be involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company’s financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Legal costs are recognized as incurred. On a quarterly and annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected on the Company’s financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid securities and other investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash equivalents are stated at estimated fair value or amortized cost, which approximates estimated fair value. |
Employee Benefit Plans | Employee Benefit Plans Brighthouse Services, LLC (“Brighthouse Services”), an affiliate, sponsors qualified and non-qualified defined contribution plans, and New England Life Insurance Company, an affiliate, sponsors certain frozen defined benefit pension and postretirement plans. Within its statement of operations, the Company has included expenses associated with its participants in these plans. |
New Accounting Pronouncements, Policy [Policy Text Block] | Adoption of New Accounting Pronouncements Changes to GAAP are established by the FASB in the form of accounting standards updates (“ASU”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. ASUs not listed were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s financial statements. Effective January 1, 2020, using the modified retrospective method, the Company adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The amendments to Topic 326 replace the incurred loss impairment methodology for certain financial instruments with one that reflects expected credit losses based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance also requires that an other-than-temporary impairment on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through realized investment gains and losses. The Company recorded an after tax net increase to retained earnings of less than $1 million for the cumulative effect of adoption. The adjustment included establishing or updating the allowance for credit losses on fixed maturity securities, mortgage loans, and other invested assets. Future Adoption of New Accounting Pronouncements In August 2018, the FASB issued new guidance on long-duration contracts (ASU 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts ). This new guidance is effective for fiscal years beginning after January 1, 2023. The amendments to Topic 944 will result in significant changes to the accounting for long-duration insurance contracts. These changes (i) require all guarantees that qualify as market risk benefits to be measured at fair value, (ii) require more frequent updating of assumptions and modify existing discount rate requirements for certain insurance liabilities, (iii) modify the methods of amortization for DAC, and (iv) require new qualitative and quantitative disclosures around insurance contract asset and liability balances and the judgments, assumptions and methods used to measure those balances. The market risk benefit guidance is required to be applied on a retrospective basis, while the changes to guidance for insurance liabilities and DAC may be applied to existing carrying amounts on the effective date or on a retrospective basis. The Company continues to evaluate the new guidance and therefore is unable to estimate the impact on its financial statements. The most significant impact from the ASU is the requirement that all variable annuity guarantees will be considered market risk benefits and measured at fair value, whereas today a significant amount of variable annuity guarantees are classified as insurance liabilities. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | Operating results by segment, as well as Corporate & Other, were as follows: Year Ended December 31, 2020 Annuities Life Corporate Total (In millions) Pre-tax adjusted earnings $ (11) $ 33 $ (6) $ 16 Provision for income tax expense (benefit) (4) 7 (2) 1 Adjusted earnings $ (7) $ 26 $ (4) 15 Adjustments for: Net investment gains (losses) 13 Net derivative gains (losses) 129 Other adjustments to net income (loss) (26) Provision for income tax (expense) benefit (24) Net income (loss) $ 107 Interest revenue $ 97 $ 36 $ 1 Year Ended December 31, 2019 Annuities Life Corporate Total (In millions) Pre-tax adjusted earnings $ (32) $ (10) $ — $ (42) Provision for income tax expense (benefit) (8) (2) (2) (12) Adjusted earnings $ (24) $ (8) $ 2 (30) Adjustments for: Net investment gains (losses) 4 Net derivative gains (losses) 42 Other adjustments to net income (loss) 27 Provision for income tax (expense) benefit (15) Net income (loss) $ 28 Interest revenue $ 83 $ 37 $ 2 Year Ended December 31, 2018 Annuities Life Corporate Total (In millions) Pre-tax adjusted earnings $ 27 $ 25 $ (2) $ 50 Provision for income tax expense (benefit) 4 5 (2) 7 Adjusted earnings $ 23 $ 20 $ — 43 Adjustments for: Net investment gains (losses) (7) Net derivative gains (losses) (18) Other adjustments to net income (loss) 18 Provision for income tax (expense) benefit 2 Net income (loss) $ 38 Interest revenue $ 64 $ 35 $ 1 Total assets by segment, as well as Corporate & Other, were as follows at: December 31, 2020 2019 (In millions) Annuities $ 9,467 $ 7,888 Life 1,859 1,933 Corporate & Other 176 136 Total $ 11,502 $ 9,957 |
Reconciliation of Revenue from Segments to Consolidated | Total revenues by segment, as well as Corporate & Other, were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Annuities $ 104 $ 90 $ 103 Life 48 51 60 Corporate & Other 2 3 4 Adjustments 154 59 (12) Total $ 308 $ 203 $ 155 |
Premiums, Universal Life and Investment-Type Product Policy Fees and Other Revenues by Product Groups | Total premiums, universal life and investment-type product policy fees and other revenues by major product group were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Annuity products $ 20 $ 19 $ 53 Life insurance products 12 16 27 Total $ 32 $ 35 $ 80 |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Insurance Liabilities | Information regarding insurance liabilities by segment, as well as Corporate & Other, was as follows at: December 31, 2020 2019 (In millions) Annuities $ 3,612 $ 2,714 Life 365 367 Corporate & Other 11 10 Total $ 3,988 $ 3,091 |
Liabilities for Guarantees | Information regarding the liabilities for guarantees (excluding policyholder account balances and embedded derivatives) relating to variable annuity contracts was as follows: Variable Annuity Contracts GMDBs GMIBs Total (In millions) Direct Balance at January 1, 2018 $ 12 $ 172 $ 184 Incurred guaranteed benefits 1 26 27 Paid guaranteed benefits — — — Balance at December 31, 2018 13 198 211 Incurred guaranteed benefits 1 4 5 Paid guaranteed benefits — — — Balance at December 31, 2019 14 202 216 Incurred guaranteed benefits (1) 64 63 Paid guaranteed benefits (1) — (1) Balance at December 31, 2020 $ 12 $ 266 $ 278 Ceded Balance at January 1, 2018 $ 13 $ 61 $ 74 Incurred guaranteed benefits (1) 11 10 Paid guaranteed benefits — — — Balance at December 31, 2018 12 72 84 Incurred guaranteed benefits — 2 2 Paid guaranteed benefits — — — Balance at December 31, 2019 12 74 86 Incurred guaranteed benefits — 34 34 Paid guaranteed benefits (1) — (1) Balance at December 31, 2020 $ 11 $ 108 $ 119 Net Balance at January 1, 2018 $ (1) $ 111 $ 110 Incurred guaranteed benefits 2 15 17 Paid guaranteed benefits — — — Balance at December 31, 2018 1 126 127 Incurred guaranteed benefits 1 2 3 Paid guaranteed benefits — — — Balance at December 31, 2019 2 128 130 Incurred guaranteed benefits (1) 30 29 Paid guaranteed benefits — — — Balance at December 31, 2020 $ 1 $ 158 $ 159 |
Guarantees Related to Annuity, Universal and Variable Life Contracts | Information regarding the Company’s guarantee exposure was as follows at: December 31, 2020 2019 In the At In the At (Dollars in millions) Annuity Contracts (1), (2) Variable Annuity Guarantees Total account value (3) $ 4,971 $ 3,816 $ 4,683 $ 3,742 Separate account value $ 4,962 $ 3,816 $ 4,675 $ 3,741 Net amount at risk $ 3 (4) $ 429 (5) $ 4 (4) $ 310 (5) Average attained age of contract holders 69 years 69 years 68 years 68 years _______________ (1) The Company’s annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) Includes direct business, but excludes offsets from hedging or reinsurance, if any. Therefore, the net amount at risk presented reflects the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. See Note 5 for a discussion of guaranteed minimum benefits which have been reinsured. (3) Includes the contract holder’s investments in the general account and separate account, if applicable. (4) Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. (5) Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contract holders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contract holders have achieved. |
Fund Groupings | Account balances of contracts with guarantees were invested in separate account asset classes as follows at: December 31, 2020 2019 (In millions) Fund Groupings: Balanced $ 3,069 $ 3,001 Equity 1,350 1,180 Bond 546 495 Total $ 4,965 $ 4,676 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs, and Other Policy-Related Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |
Deferred Policy Acquisition Costs | Information regarding DAC was as follows: Years Ended December 31, 2020 2019 2018 (In millions) DAC: Balance at January 1, $ 175 $ 186 $ 131 Capitalizations 42 39 30 Amortization related to net investment gains (losses) and net derivative gains (losses) 18 17 25 All other amortization (56) (39) (26) Total amortization (38) (22) (1) Unrealized investment gains (losses) (19) (28) 26 Balance at December 31, $ 160 $ 175 $ 186 |
Information Regarding Deferred Policy Acquisition Costs | Information regarding total DAC by segment, was as follows at: December 31, 2020 2019 (In millions) Annuities $ 141 $ 156 Life 19 19 Total $ 160 $ 175 |
Deferred Sales Inducements | Information regarding DSI was as follows: Years Ended December 31, 2020 2019 2018 (In millions) DSI: Balance at January 1, $ 25 $ 29 $ 27 Amortization (7) (2) (2) Unrealized investment gains (losses) — (2) 4 Balance at December 31, $ 18 $ 25 $ 29 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance [Table Text Block] | The amounts on the statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows: Years Ended December 31, 2020 2019 2018 (In millions) Premiums Direct premiums $ 82 $ 86 $ 91 Reinsurance ceded (60) (63) (54) Net premiums $ 22 $ 23 $ 37 Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees $ 97 $ 101 $ 106 Reinsurance ceded (4) (4) (4) Net universal life and investment-type product policy fees $ 93 $ 97 $ 102 Other revenues Direct other revenues $ 13 $ 13 $ 13 Reinsurance ceded (96) (98) (72) Net other revenues $ (83) $ (85) $ (59) Policyholder benefits and claims Direct policyholder benefits and claims $ 149 $ 92 $ 98 Reinsurance ceded (126) (59) (91) Net policyholder benefits and claims $ 23 $ 33 $ 7 Other expenses Direct other expenses $ 80 $ 87 $ 74 Reinsurance ceded (3) (6) (8) Net other expenses $ 77 $ 81 $ 66 The amounts on the balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at: December 31, 2020 2019 Direct Ceded Total Direct Ceded Total (In millions) Assets Premiums, reinsurance and other receivables $ 24 $ 1,199 $ 1,223 $ 18 $ 1,030 $ 1,048 Liabilities Other liabilities $ 148 $ 792 $ 940 $ 86 $ 826 $ 912 Information regarding the significant effects of related party reinsurance included on the statements of operations was as follows: Years Ended December 31, 2020 2019 2018 (In millions) Premiums Reinsurance ceded $ (43) $ (45) $ (37) Universal life and investment-type product policy fees Reinsurance ceded $ (4) $ (3) $ (4) Other revenues Reinsurance ceded $ (96) $ (98) $ (72) Policyholder benefits and claims Reinsurance ceded $ (120) $ (51) $ (89) Other expenses Reinsurance ceded $ (7) $ (7) $ (8) Information regarding the significant effects of ceded related party reinsurance included on the balance sheets was as follows at: December 31, 2020 2019 (In millions) Assets Premiums, reinsurance and other receivables $ 749 $ 567 Liabilities Other liabilities $ 362 $ 387 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Fixed Maturity Securities by Sector | Fixed maturity securities by sector were as follows at: December 31, 2020 December 31, 2019 Amortized Allowance for Credit Losses Gross Unrealized Estimated Amortized Allowance for Credit Losses (1) Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 1,697 $ — $ 201 $ 1 $ 1,897 $ 1,361 $ — $ 87 $ 2 $ 1,446 Foreign corporate 503 — 58 2 559 396 — 23 3 416 ABS 350 — 6 1 355 142 — 1 1 142 CMBS 299 — 31 1 329 319 — 16 1 334 U.S. government and agency 254 — 58 — 312 290 — 27 — 317 RMBS 219 — 17 — 236 277 — 12 1 288 State and political subdivision 122 — 15 — 137 92 — 10 — 102 Foreign government 16 — 2 — 18 20 — 2 — 22 Total fixed maturity securities $ 3,460 $ — $ 388 $ 5 $ 3,843 $ 2,897 $ — $ 178 $ 8 $ 3,067 |
Maturities of Fixed Maturity Securities | The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2020: Due in One Due After One Due After Five Due After Ten Structured Total Fixed (In millions) Amortized cost $ 27 $ 529 $ 1,104 $ 932 $ 868 $ 3,460 Estimated fair value $ 28 $ 570 $ 1,217 $ 1,108 $ 920 $ 3,843 |
Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector | The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: December 31, 2020 December 31, 2019 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 54 $ 1 $ 2 $ — $ 94 $ 2 $ 17 $ — Foreign corporate 4 — 10 2 28 1 26 2 ABS 98 1 17 — 57 — 22 1 CMBS 19 1 — — 38 1 3 — RMBS 4 — — — 8 — 6 1 State and political subdivision 9 — — — 19 — — — Foreign government 2 — — — 2 — — — Total fixed maturity securities $ 190 $ 3 $ 29 $ 2 $ 246 $ 4 $ 74 $ 4 Total number of securities in an unrealized loss position 82 15 69 36 |
Mortgage Loans by Portfolio Segment | Mortgage loans are summarized as follows at: December 31, 2020 2019 Carrying % of Carrying % of (Dollars in millions) Commercial $ 458 71.2 % $ 457 73.1 % Agricultural 187 29.1 171 27.3 Total mortgage loans 645 100.3 628 100.4 Allowance for credit losses (2) (0.3) (3) (0.4) Total mortgage loans, net $ 643 100.0 % $ 625 100.0 % |
Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment | The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Total (In millions) Balance at December 31, 2019 $ 2 $ 1 $ 3 Cumulative effect of change in accounting principle (1) — (1) Balance at January 1, 2020 1 1 2 Balance at December 31, 2020 $ 1 $ 1 $ 2 |
Credit Quality of Mortgage Loans by Portfolio Segment | The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2020 2019 2018 2017 2016 Prior Total (In millions) December 31, 2020 Commercial mortgage loans Loan-to-value ratios Less than 65% $ 32 $ 102 $ 23 $ 13 $ 16 $ 187 $ 373 65% to 75% — 50 6 7 — 3 66 76% to 80% — — — — 1 3 4 Greater than 80% — — 5 — — 10 15 Total commercial mortgage loans 32 152 34 20 17 203 458 Agricultural mortgage loans Loan-to-value ratios Less than 65% 46 43 21 6 15 52 183 65% to 75% — 3 1 — — — 4 Total agricultural mortgage loans 46 46 22 6 15 52 187 Total $ 78 $ 198 $ 56 $ 26 $ 32 $ 255 $ 645 The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: December 31, 2020 2019 Amortized % of Amortized % of (Dollars in millions) Debt service coverage ratios: Greater than 1.20x $ 450 98.3 % $ 448 98.0 % 1.00x - 1.20x 8 1.7 9 2.0 Total $ 458 100.0 % $ 457 100.0 % |
Net Unrealized Investment Gains (Losses) | The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Fixed maturity securities $ 383 $ 170 $ (36) Derivatives 1 6 6 Subtotal 384 176 (30) Amounts allocated from: Future policy benefits (20) (3) — DAC and DSI (38) (19) 11 Subtotal (58) (22) 11 Deferred income tax benefit (expense) (68) (32) 4 Net unrealized investment gains (losses) $ 258 $ 122 $ (15) The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Balance at January 1, $ 122 $ (15) $ 30 Unrealized investment gains (losses) during the year 208 206 (87) Unrealized investment gains (losses) relating to: Future policy benefits (17) (3) — DAC and DSI (19) (30) 30 Deferred income tax benefit (expense) (36) (36) 12 Balance at December 31, $ 258 $ 122 $ (15) Change in net unrealized investment gains (losses) $ 136 $ 137 $ (45) |
Invested Assets on Deposit and Pledged as Collateral | Invested assets on deposit and pledged as collateral at estimated fair value were as follows at: December 31, 2020 2019 (In millions) Invested assets on deposit (regulatory deposits) $ 2 $ 2 Invested assets pledged as collateral (1) 5 19 Total invested assets on deposit and pledged as collateral (2) $ 7 $ 21 _______________ (1) The Company has pledged invested assets in connection with derivative transactions (see Note 7). (2) The Company did not hold any restricted cash and cash equivalents at either December 31, 2020 or 2019. |
Variable Interest Entities | The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: December 31, 2020 2019 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 301 $ 274 $ 394 $ 376 |
Components of Net Investment Income | The components of net investment income were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Investment income: Fixed maturity securities $ 112 $ 101 $ 86 Mortgage loans 26 21 17 Cash, cash equivalents and short-term investments 1 3 1 Other 1 1 1 Total investment income 140 126 105 Less: Investment expenses 6 4 5 Net investment income $ 134 $ 122 $ 100 |
Components of Net Investment Gains (Losses) | The components of net investment gains (losses) were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Fixed maturity securities $ 13 $ 5 $ (5) Mortgage loans — (1) — Other — — (2) Total net investment gains (losses) $ 13 $ 4 $ (7) |
Sales or Disposals of Fixed Maturity Securities | Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Proceeds $ 321 $ 460 $ 274 Gross investment gains $ 14 $ 8 $ 1 Gross investment losses (1) (3) (6) Net investment gains (losses) $ 13 $ 5 $ (5) |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments in Statement of Financial Position, Fair Value | The primary underlying risk exposure, gross notional amount, and estimated fair value of derivatives held were as follows at: Primary Underlying Risk Exposure December 31, 2020 2019 Gross Estimated Fair Value Gross Estimated Fair Value Assets Liabilities Assets Liabilities (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency swaps Foreign currency exchange rate $ 115 $ 4 $ 3 $ 98 $ 6 $ — Total qualifying hedges 115 4 3 98 6 — Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate caps Interest rate 800 1 — 800 2 — Foreign currency swaps Foreign currency exchange rate 16 4 — 18 4 — Equity index options Equity market 5,908 250 94 4,699 96 39 Equity total return swaps Equity market 249 7 — — — — Total non-designated or non-qualifying derivatives 6,973 262 94 5,517 102 39 Embedded derivatives: Ceded guaranteed minimum income benefits Other N/A 477 — N/A 338 — Direct guaranteed minimum benefits Other N/A — 14 N/A — (28) Direct index-linked annuities Other N/A — 393 N/A — 180 Total embedded derivatives Other N/A 477 407 N/A 338 152 Total $ 7,088 $ 743 $ 504 $ 5,615 $ 446 $ 191 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows: Year Ended December 31, 2020 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ (5) Total cash flow hedges — — 1 (5) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives 195 — — — Embedded derivatives (66) — — — Total non-qualifying hedges 129 — — — Total $ 129 $ — $ 1 $ (5) Year Ended December 31, 2019 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ — Total cash flow hedges — — 1 — Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (8) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives 113 — — — Embedded derivatives (64) — — — Total non-qualifying hedges 42 — — — Total $ 42 $ — $ 1 $ — Year Ended December 31, 2018 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ 5 Total cash flow hedges — — 1 5 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (2) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives (31) — — — Embedded derivatives 13 — — — Total non-qualifying hedges (19) — — — Total $ (19) $ — $ 1 $ 5 |
Derivative Instruments, Gain (Loss) | The amount and location of gains (losses), including earned income, recognized for derivatives and gains (losses) pertaining to hedged items presented in net derivative gains (losses) were as follows: Year Ended December 31, 2020 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ (5) Total cash flow hedges — — 1 (5) Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (1) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives 195 — — — Embedded derivatives (66) — — — Total non-qualifying hedges 129 — — — Total $ 129 $ — $ 1 $ (5) Year Ended December 31, 2019 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ — Total cash flow hedges — — 1 — Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (8) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives 113 — — — Embedded derivatives (64) — — — Total non-qualifying hedges 42 — — — Total $ 42 $ — $ 1 $ — Year Ended December 31, 2018 Net Derivative Net Derivative Net Amount of Gains (Losses) Deferred in AOCI (In millions) Derivatives Designated as Hedging Instruments: Cash flow hedges: Foreign currency exchange rate derivatives $ — $ — $ 1 $ 5 Total cash flow hedges — — 1 5 Derivatives Not Designated or Not Qualifying as Hedging Instruments: Interest rate derivatives (2) — — — Foreign currency exchange rate derivatives 1 — — — Equity derivatives (31) — — — Embedded derivatives 13 — — — Total non-qualifying hedges (19) — — — Total $ (19) $ — $ 1 $ 5 |
Offsetting Assets | The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) December 31, 2020 Derivative assets $ 266 $ (91) $ (136) $ 39 $ (34) $ 5 Derivative liabilities $ 97 $ (91) $ — $ 6 $ (6) $ — December 31, 2019 Derivative assets $ 108 $ (21) $ (82) $ 5 $ (4) $ 1 Derivative liabilities $ 39 $ (21) $ — $ 18 $ (18) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. |
Offsetting Liabilities | The estimated fair values of net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: Gross Amounts Not Offset on the Balance Sheets Gross Amount Recognized Financial Instruments (1) Collateral Received/Pledged (2) Net Amount Securities Collateral Received/Pledged (3) Net Amount After Securities Collateral (In millions) December 31, 2020 Derivative assets $ 266 $ (91) $ (136) $ 39 $ (34) $ 5 Derivative liabilities $ 97 $ (91) $ — $ 6 $ (6) $ — December 31, 2019 Derivative assets $ 108 $ (21) $ (82) $ 5 $ (4) $ 1 Derivative liabilities $ 39 $ (21) $ — $ 18 $ (18) $ — _______________ (1) Represents amounts subject to an enforceable master netting agreement or similar agreement. (2) The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreement. (3) Securities collateral received from counterparties is not reported on the balance sheets and may not be sold or re-pledged unless the counterparty is in default. Amounts do not include excess of collateral pledged or received. |
Schedule of Derivative Instruments | The aggregate estimated fair values of derivatives in a net liability position containing such credit contingent provisions and the aggregate estimated fair value of assets posted as collateral for such instruments were as follows at: December 31, 2020 2019 (In millions) Estimated fair value of derivatives in a net liability position (1) $ 6 $ 18 Estimated Fair Value of Collateral Provided (2): Fixed maturity securities $ 6 $ 19 _______________ (1) After taking into consideration the existence of netting agreements. (2) Substantially all of the Company’s collateral arrangements provide for daily posting of collateral for the full value of the derivative contract. As a result, if the credit-contingent provisions of derivative contracts in a net liability position were triggered, minimal additional assets would be required to be posted as collateral or needed to settle the instruments immediately. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements | December 31, 2020 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 1,873 $ 24 $ 1,897 Foreign corporate — 557 2 559 ABS — 349 6 355 CMBS — 329 — 329 U.S. government and agency 158 154 — 312 RMBS — 236 — 236 State and political subdivision — 137 — 137 Foreign government — 18 — 18 Total fixed maturity securities 158 3,653 32 3,843 Short-term investments 63 8 — 71 Derivative assets: (1) Interest rate — 1 — 1 Foreign currency exchange rate — 8 — 8 Equity market — 257 — 257 Total derivative assets — 266 — 266 Embedded derivatives within asset host contracts (2) — — 477 477 Separate account assets — 4,965 — 4,965 Total assets $ 221 $ 8,892 $ 509 $ 9,622 Liabilities Derivative liabilities: (1) Foreign currency exchange rate $ — $ 3 $ — $ 3 Equity market — 94 — 94 Embedded derivatives within liability host contracts (2) — — 407 407 Total liabilities $ — $ 97 $ 407 $ 504 December 31, 2019 Fair Value Hierarchy Level 1 Level 2 Level 3 Total Estimated (In millions) Assets Fixed maturity securities: U.S. corporate $ — $ 1,419 $ 27 $ 1,446 Foreign corporate — 408 8 416 ABS — 133 9 142 CMBS — 334 — 334 U.S. government and agency 184 133 — 317 RMBS — 288 — 288 State and political subdivision — 102 — 102 Foreign government — 22 — 22 Total fixed maturity securities 184 2,839 44 3,067 Short-term investments 35 17 — 52 Derivative assets: (1) Interest rate — 2 — 2 Foreign currency exchange rate — 10 — 10 Equity market — 96 — 96 Total derivative assets — 108 — 108 Embedded derivatives within asset host contracts (2) — — 338 338 Separate account assets — 4,676 — 4,676 Total assets $ 219 $ 7,640 $ 382 $ 8,241 Liabilities Derivative liabilities: (1) Equity market $ — $ 39 $ — $ 39 Embedded derivatives within liability host contracts (2) — — 152 152 Total liabilities $ — $ 39 $ 152 $ 191 _______________ (1) Derivative assets are presented within other invested assets on the balance sheets and derivative liabilities are presented within other liabilities on the balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the balance sheets. (2) Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables on the balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances on the balance sheets. |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at: December 31, 2020 December 31, 2019 Impact of Valuation Techniques Significant Range Range Embedded derivatives Direct, assumed and ceded guaranteed minimum benefits • Option pricing techniques • Mortality rates 0.03% - 12.13% 0.02% - 11.31% Decrease (1) • Lapse rates 0.25% - 15.00% 0.25% - 16.00% Decrease (2) • Utilization rates 0.00% - 25.00% 0.00% - 25.00% Increase (3) • Withdrawal rates 0.25% - 10.00% 0.25% - 10.00% (4) • Long-term equity volatilities 16.66% - 22.21% 16.24% - 21.65% Increase (5) • Nonperformance risk spread 0.47% - 1.97% 0.54% - 1.99% Decrease (6) _______________ (1) Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old, which represents the majority of the business with living benefits. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement. (2) The range shown reflects base lapse rates for major product categories for duration 1-20, which represents majority of business with living benefit riders. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. (3) The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. (4) The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. (5) Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (6) Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. |
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) were summarized as follows: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Fixed Maturity Securities Net Embedded Derivatives (2) Corporate (1) Structured Securities (In millions) Balance, January 1, 2019 $ 13 $ 5 $ 311 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) — — (64) Total realized/unrealized gains (losses) included in AOCI 1 — — Purchases (5) 30 9 — Sales (5) — — — Issuances (5) — — — Settlements (5) — — (61) Transfers into Level 3 (6) — — — Transfers out of Level 3 (6) (9) (5) — Balance, December 31, 2019 35 9 186 Total realized/unrealized gains (losses) included in net income (loss) (3) (4) — — (66) Total realized/unrealized gains (losses) included in AOCI — — — Purchases (5) 16 6 — Sales (5) (6) — — Issuances (5) — — — Settlements (5) — — (50) Transfers into Level 3 (6) 3 — — Transfers out of Level 3 (6) (22) (9) — Balance, December 31, 2020 $ 26 $ 6 $ 70 Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2018 (7) $ — $ — $ (20) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2019 (7) $ — $ — $ (122) Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2020 (7) $ — $ — $ (111) Changes in unrealized gains (losses) included in OCI for the instruments still held at December 31, 2020 (7) $ — $ — $ — Gains (Losses) Data for the year ended December 31, 2018: Total realized/unrealized gains (losses) included in net income (loss) (3) (4) $ — $ — $ 13 Total realized/unrealized gains (losses) included in AOCI $ (1) $ — $ — _______________ (1) Comprised of U.S. and foreign corporate securities. (2) Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (3) Amortization of premium/accretion of discount is included within net investment income. Changes in the allowance for credit losses and direct write offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivative gains (losses). (4) Interest accruals, as well as cash interest coupons received, are excluded from the rollforward. (5) Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (6) Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (7) Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net embedded derivatives are reported in net derivative gains (losses). |
Fair Value of Financial Instruments Carried at Other Than Fair Value | The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: December 31, 2020 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 643 $ — $ — $ 681 $ 681 Premiums, reinsurance and other receivables $ 436 $ — $ 1 $ 435 $ 436 Liabilities Policyholder account balances $ 915 $ — $ — $ 979 $ 979 Other liabilities $ 430 $ — $ 7 $ 423 $ 430 December 31, 2019 Fair Value Hierarchy Carrying Level 1 Level 2 Level 3 Total (In millions) Assets Mortgage loans $ 625 $ — $ — $ 647 $ 647 Premiums, reinsurance and other receivables $ 444 $ — $ — $ 444 $ 444 Liabilities Policyholder account balances $ 963 $ — $ — $ 955 $ 955 Other liabilities $ 432 $ — $ 1 $ 431 $ 432 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedules of statutory net income, capital and surplus and reserve strengthening by subsidiary | Statutory net income (loss) was as follows: Years Ended December 31, Company State of Domicile 2020 2019 2018 (In millions) Brighthouse Life Insurance Company of NY New York $ (390) $ (139) $ 19 Statutory capital and surplus was as follows at: December 31, Company 2020 2019 (In millions) Brighthouse Life Insurance Company of NY $ 373 $ 579 |
Components of Accumulated Other Comprehensive Income (Loss) | Information regarding changes in the balances of each component of AOCI was as follows: Unrealized Unrealized Total (In millions) Balance at December 31, 2017 $ 29 $ 1 $ 30 OCI before reclassifications (67) 5 (62) Deferred income tax benefit (expense) 13 — 13 AOCI before reclassifications, net of income tax (25) 6 (19) Amounts reclassified from AOCI 5 — 5 Deferred income tax benefit (expense) (1) — (1) Amounts reclassified from AOCI, net of income tax 4 — 4 Balance at December 31, 2018 (21) 6 (15) OCI before reclassifications 178 — 178 Deferred income tax benefit (expense) (37) — (37) AOCI before reclassifications, net of income tax 120 6 126 Amounts reclassified from AOCI (5) — (5) Deferred income tax benefit (expense) 1 — 1 Amounts reclassified from AOCI, net of income tax (4) — (4) Balance at December 31, 2019 116 6 122 OCI before reclassifications 190 (5) 185 Deferred income tax benefit (expense) (40) 1 (39) AOCI before reclassifications, net of income tax 266 2 268 Amounts reclassified from AOCI (13) — (13) Deferred income tax benefit (expense) 3 — 3 Amounts reclassified from AOCI, net of income tax (10) — (10) Balance at December 31, 2020 $ 256 $ 2 $ 258 _______________ (1) See Note 6 for information on offsets to investments related to future policy benefits, DAC and DSI. |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | Information regarding amounts reclassified out of each component of AOCI was as follows: AOCI Components Amounts Reclassified from AOCI Statements of Operations Locations Years Ended December 31, 2020 2019 2018 (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses) $ 13 $ 5 $ (5) Net investment gains (losses) Net unrealized investment gains (losses), before income tax 13 5 (5) Income tax (expense) benefit (3) (1) 1 Net unrealized investment gains (losses), net of income tax 10 4 (4) Total reclassifications, net of income tax $ 10 $ 4 $ (4) |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Expenses | Information on other expenses was as follows: Years Ended December 31, 2020 2019 2018 (In millions) Compensation $ 20 $ 20 $ 13 Contracted services and other labor costs 16 15 9 Transition services agreements 6 14 11 Establishment costs 8 3 5 Premium and other taxes, licenses and fees — 2 3 Volume related costs, excluding compensation, net of DAC capitalization 22 19 19 Other 5 8 6 Total other expenses $ 77 $ 81 $ 66 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Tax Credit Carryforwards [Table Text Block] | The following table sets forth the foreign tax credits available for carryforward for tax purposes at December 31, 2020. Foreign Tax Credits Carryforwards (In millions) Expiration 2020-2024 $ 1 2025-2029 4 2030-2034 1 2035-2039 — Indefinite — $ 6 |
Provision for income tax from continuing operations | The provision for income tax was as follows: Years Ended December 31, 2020 2019 2018 (In millions) Current: Federal $ (3) $ 33 $ (2) Deferred: Federal 28 (30) 7 Provision for income tax expense (benefit) $ 25 $ 3 $ 5 |
Income tax for continuing operations effective rate reconciliation | The reconciliation of the income tax provision at the statutory tax rate to the provision for income tax as reported was as follows: Years Ended December 31, 2020 2019 2018 (Dollars in millions) Tax provision at statutory rate $ 28 $ 6 $ 9 Tax effect of: Dividends received deduction (2) (2) (2) Prior year tax — — (1) Tax credits (1) (1) (1) Provision for income tax expense (benefit) $ 25 $ 3 $ 5 Effective tax rate 19 % 9 % 12 % |
Components of deferred tax assets and liabilities | Net deferred income tax assets and liabilities consisted of the following at: December 31, 2020 2019 (In millions) Deferred income tax assets: Tax credit carryforwards $ 6 $ 4 Net operating loss carryforwards 62 3 Total deferred income tax assets 68 7 Deferred income tax liabilities: Investments, including derivatives 34 12 Policyholder liabilities and receivables 112 45 Intangibles 1 1 Net unrealized investment gains 68 33 DAC 31 30 Total deferred income tax liabilities 246 121 Net deferred income tax asset (liability) $ (178) $ (114) |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 04, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of segments | 2 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 541 | $ 434 | |
Maximum | Cumulative Effect, Adjustment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Retained Earnings (Accumulated Deficit) | $ 1 | ||
Parent shareholders' percentage [Member] | Spinoff [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Common Stock Distribution by Parent | 80.80% |
Segment Information (Operating
Segment Information (Operating Results) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | $ 132 | $ 31 | $ 43 |
Provision for income tax expense (benefit) | 25 | 3 | 5 |
Net investment gains (losses) | 13 | 4 | (7) |
Net derivative gains (losses) | 129 | 42 | (18) |
Other adjustments to net income (loss) | (83) | (85) | (59) |
Net income (loss) | 107 | 28 | 38 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 97 | 83 | 64 |
Life | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 36 | 37 | 35 |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Interest revenue | 1 | 2 | 1 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 16 | (42) | 50 |
Provision for income tax expense (benefit) | 1 | (12) | 7 |
Adjusted earnings | 15 | (30) | 43 |
Operating Segments | Annuities | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | (11) | (32) | 27 |
Provision for income tax expense (benefit) | (4) | (8) | 4 |
Adjusted earnings | (7) | (24) | 23 |
Operating Segments | Life | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | 33 | (10) | 25 |
Provision for income tax expense (benefit) | 7 | (2) | 5 |
Adjusted earnings | 26 | (8) | 20 |
Operating Segments | Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Pre-tax adjusted earnings | (6) | 0 | (2) |
Provision for income tax expense (benefit) | (2) | (2) | (2) |
Adjusted earnings | (4) | 2 | 0 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Provision for income tax expense (benefit) | (24) | (15) | 2 |
Net investment gains (losses) | 13 | 4 | (7) |
Net derivative gains (losses) | 129 | 42 | (18) |
Other adjustments to net income (loss) | $ (26) | $ 27 | $ 18 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Operating Revenues to Total Revenues) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 308 | $ 203 | $ 155 |
Annuities | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 104 | 90 | 103 |
Life | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 48 | 51 | 60 |
Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2 | 3 | 4 |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 154 | $ 59 | $ (12) |
Segment Information (Total Asse
Segment Information (Total Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 11,502 | $ 9,957 |
Annuities | ||
Segment Reporting Information [Line Items] | ||
Total assets | 9,467 | 7,888 |
Life | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,859 | 1,933 |
Corporate & Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 176 | $ 136 |
Segment Information (Premiums,
Segment Information (Premiums, Universal Life and Investment-Type Product Policy Fees and Other Revenues by Major Product Group) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 32 | $ 35 | $ 80 |
Annuity products | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | 20 | 19 | 53 |
Life insurance products | |||
Segment Reporting Information [Line Items] | |||
Total premiums, universal life and investment-type product policy fees and other revenues | $ 12 | $ 16 | $ 27 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Number of segments | 2 |
Insurance (Insurance Liabilitie
Insurance (Insurance Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 3,988 | $ 3,091 |
Annuities | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 3,612 | 2,714 |
Life | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | 365 | 367 |
Corporate & Other | ||
Insurance Liabilities [Line Items] | ||
Insurance liabilities comprised of future policy benefits, policyholder account balances and other policy-related balances | $ 11 | $ 10 |
Insurance (Guarantees Related t
Insurance (Guarantees Related to Annuity Contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Balance at January 1, | $ 216 | $ 211 | $ 184 | |
Incurred guaranteed benefits | 63 | 5 | 27 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (1) | 0 | 0 | |
Balance at December 31, | 278 | 216 | 211 | |
Variable Annuity | GMDBs | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Balance at January 1, | 14 | 13 | 12 | |
Incurred guaranteed benefits | (1) | 1 | 1 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (1) | 0 | 0 | |
Balance at December 31, | 12 | 14 | 13 | |
Variable Annuity | GMIBs | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Balance at January 1, | 202 | 198 | 172 | |
Incurred guaranteed benefits | 64 | 4 | 26 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 0 | 0 | |
Balance at December 31, | 266 | 202 | 198 | |
Net Ceded and Assumed Liabilities For Guarantees | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (1) | 0 | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 119 | 86 | 84 | $ 74 |
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | 34 | 2 | 10 | |
Net Ceded and Assumed Liabilities For Guarantees | GMDBs | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | (1) | 0 | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 11 | 12 | 12 | 13 |
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | 0 | 0 | (1) | |
Net Ceded and Assumed Liabilities For Guarantees | GMIBs | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 0 | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 108 | 74 | 72 | 61 |
liabilities for guarantees on long duration contracts reinsurance recoverable incurred benefits net | 34 | 2 | 11 | |
Net Liabilities For Guarantees | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Incurred guaranteed benefits | 29 | 3 | 17 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 0 | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 159 | 130 | 127 | 110 |
Net Liabilities For Guarantees | GMDBs | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Incurred guaranteed benefits | (1) | 1 | 2 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 0 | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | 1 | 2 | 1 | (1) |
Net Liabilities For Guarantees | GMIBs | ||||
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ||||
Incurred guaranteed benefits | 30 | 2 | 15 | |
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 0 | 0 | 0 | |
Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Net | $ 158 | $ 128 | $ 126 | $ 111 |
Insurance (Liabilities for Guar
Insurance (Liabilities for Guarantees) (Details) - Variable Annuity Guarantees - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
In the Event of Death | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 4,971 | $ 4,683 |
Separate account value | 4,962 | 4,675 |
Net amount at risk | $ 3 | $ 4 |
Average attained age of contract holders | 69 years | 68 years |
At Annuitization | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Total account value (3) | $ 3,816 | $ 3,742 |
Separate account value | 3,816 | 3,741 |
Net amount at risk | $ 429 | $ 310 |
Average attained age of contract holders | 69 years | 68 years |
Insurance (Fund Groupings) (Det
Insurance (Fund Groupings) (Details) - Variable Annuity And Variable Life [Member] - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Separate Account Investment [Line Items] | ||
Fund Groupings: | $ 4,965 | $ 4,676 |
Balanced | ||
Fair Value, Separate Account Investment [Line Items] | ||
Fund Groupings: | 3,069 | 3,001 |
Equity | ||
Fair Value, Separate Account Investment [Line Items] | ||
Fund Groupings: | 1,350 | 1,180 |
Bond | ||
Fair Value, Separate Account Investment [Line Items] | ||
Fund Groupings: | $ 546 | $ 495 |
Insurance (Future Policy Benefi
Insurance (Future Policy Benefits - Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Interest rate range credited to policyholder account balances | 1.00% |
Maximum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Interest rate range credited to policyholder account balances | 6.00% |
Nonparticipating Life Insurance Contract [Member] | Minimum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | 3.00% |
Nonparticipating Life Insurance Contract [Member] | Maximum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | 5.00% |
Fixed Annuity [Member] | Minimum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | 1.00% |
Fixed Annuity [Member] | Maximum | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |
Liability for Future Policy Benefits, Interest Rate Assumption | 8.00% |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs, and Other Policy-Related Intangibles (DAC and VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract] | |||
Balance at January 1, | $ 175 | $ 186 | $ 131 |
Capitalizations | 42 | 39 | 30 |
Amortization related to net investment gains (losses) and net derivative gains (losses) | 18 | 17 | 25 |
All other amortization | (56) | (39) | (26) |
Total amortization | (38) | (22) | (1) |
Unrealized investment gains (losses) | (19) | (28) | 26 |
Balance at December 31, | $ 160 | $ 175 | $ 186 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs, and Other Policy-Related Intangibles (DAC and VOBA by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||||
Deferred Policy Acquisition Cost | $ 160 | $ 175 | $ 186 | $ 131 |
Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Deferred Policy Acquisition Cost | 141 | 156 | ||
Life | ||||
Segment Reporting Information [Line Items] | ||||
Deferred Policy Acquisition Cost | $ 19 | $ 19 |
Deferred Policy Acquisition C_5
Deferred Policy Acquisition Costs, and Other Policy-Related Intangibles (DSI and VODA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | |||
Balance at January 1, | $ 25 | $ 29 | $ 27 |
Amortization | (7) | (2) | (2) |
Unrealized investment gains (losses) | 0 | (2) | 4 |
Balance at December 31, | $ 18 | $ 25 | $ 29 |
Reinsurance (Effects of Reinsur
Reinsurance (Effects of Reinsurance on Earnings) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums: | |||
Direct premiums | $ 82 | $ 86 | $ 91 |
Reinsurance ceded | (60) | (63) | (54) |
Net premiums | 22 | 23 | 37 |
Universal life and investment-type product policy fees [Abstract] | |||
Direct universal life and investment-type product policy fees | 97 | 101 | 106 |
Reinsurance ceded | (4) | (4) | (4) |
Net universal life and investment-type product policy fees | 93 | 97 | 102 |
Component of Operating Income [Abstract] | |||
Other Income Direct | 13 | 13 | 13 |
Other Income Ceded | (96) | (98) | (72) |
Net other revenues | (83) | (85) | (59) |
Policyholder Benefits and Claims Incurred [Abstract] | |||
Direct policyholder benefits and claims | 149 | 92 | 98 |
Reinsurance ceded | (126) | (59) | (91) |
Net policyholder benefits and claims | 23 | 33 | 7 |
Other Expenses [Abstract] | |||
Direct other expenses | 80 | 87 | 74 |
Reinsurance ceded | (3) | (6) | (8) |
Net other expenses | $ 77 | $ 81 | $ 66 |
Reinsurance (Effects of Reins_2
Reinsurance (Effects of Reinsurance on Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Premiums, reinsurance and other receivables | $ 1,223 | $ 1,048 |
Liabilities: | ||
Other liabilities | 940 | 912 |
Deposit Contracts, Assets | 435 | 444 |
Deposit Contracts, Liabilities | 0 | 0 |
Direct | ||
Assets: | ||
Premiums, reinsurance and other receivables | 24 | 18 |
Liabilities: | ||
Other liabilities | 148 | 86 |
Ceded | ||
Assets: | ||
Premiums, reinsurance and other receivables | 1,199 | 1,030 |
Liabilities: | ||
Other liabilities | $ 792 | $ 826 |
Reinsurance (Effects of Affilia
Reinsurance (Effects of Affiliated Reinsurance on Statements of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums: | |||
Reinsurance ceded | $ (60) | $ (63) | $ (54) |
Universal life and investment-type product policy fees [Abstract] | |||
Reinsurance ceded | (4) | (4) | (4) |
Other revenues: | |||
Reinsurance ceded | (96) | (98) | (72) |
Policyholder benefits and claims: | |||
Reinsurance ceded | (126) | (59) | (91) |
Other Expenses [Abstract] | |||
Reinsurance ceded | (3) | (6) | (8) |
Affiliated Entity [Member] | Ceded | |||
Premiums: | |||
Reinsurance ceded | (43) | (45) | (37) |
Universal life and investment-type product policy fees [Abstract] | |||
Reinsurance ceded | (4) | (3) | (4) |
Other revenues: | |||
Reinsurance ceded | (96) | (98) | (72) |
Policyholder benefits and claims: | |||
Reinsurance ceded | (120) | (51) | (89) |
Other Expenses [Abstract] | |||
Reinsurance ceded | $ (7) | $ (7) | $ (8) |
Reinsurance (Effects of Affil_2
Reinsurance (Effects of Affiliated Reinsurance on Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Premiums, reinsurance and other receivables | $ 1,223 | $ 1,048 |
Liabilities: | ||
Other liabilities | 940 | 912 |
Ceded | ||
Assets: | ||
Premiums, reinsurance and other receivables | 1,199 | 1,030 |
Liabilities: | ||
Other liabilities | 792 | 826 |
Ceded | Affiliated Entity [Member] | ||
Assets: | ||
Premiums, reinsurance and other receivables | 749 | 567 |
Liabilities: | ||
Other liabilities | $ 362 | $ 387 |
Reinsurance (Reinsurance Retent
Reinsurance (Reinsurance Retention Policy Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fixed Annuities [Member] | |
Reinsurance Retention Policy [Line Items] | |
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% |
Living And Death Benefit Guarantees [Member] | |
Reinsurance Retention Policy [Line Items] | |
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% |
Mortality Risk [Member] | |
Reinsurance Retention Policy [Line Items] | |
Reinsurance Retention Policy, Reinsured Risk, Percentage | 100.00% |
Reinsurance Retention Policy, Amount Retained | $ 100,000 |
Reinsurance Reinsurance (Ceded
Reinsurance Reinsurance (Ceded Credit Risk Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Ceded Credit Risk [Line Items] | ||
Reinsurance Recoverables, Ceded | $ 443 | $ 454 |
Five Largest Ceded Reinsurers [Member] | ||
Ceded Credit Risk [Line Items] | ||
Ceded Credit Risk, Reinsurance Recoverables, Net | $ 439 | $ 451 |
Ceded Credit Risk, Reinsurance Recoverables, Percentage | 99.00% | 99.00% |
Ceded Credit Risk, Unsecured | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance Recoverables, Ceded | $ 20 | $ 23 |
Ceded Credit Risk, Unsecured | Five Largest Ceded Reinsurers [Member] | ||
Ceded Credit Risk [Line Items] | ||
Ceded Credit Risk, Reinsurance Recoverables, Net | $ 17 | $ 20 |
Reinsurance (Related Party Narr
Reinsurance (Related Party Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Embedded Derivative, Fair Value of Embedded Derivative Asset | $ 477 | $ 338 | |
Reinsurance recoverables | 443 | 454 | |
Deposit Contracts, Assets | 435 | 444 | |
Deposit Contracts, Liabilities | 0 | 0 | |
Ceded Credit Risk, Unsecured | |||
Reinsurance recoverables | 20 | 23 | |
Affiliated Entity [Member] | |||
Deposit Contracts, Assets | 5 | 4 | |
Deposit Contracts, Liabilities | 0 | 0 | |
Affiliated Entity [Member] | Ceded Credit Risk, Unsecured | |||
Reinsurance recoverables | 0 | 0 | |
Affiliated Entity [Member] | Ceded guaranteed minimum benefits | |||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 477 | 338 | |
Embedded Derivative, Gain (Loss) on Embedded Derivative, Net | $ 138 | $ 38 | $ (12) |
Investments (Fixed Maturity Sec
Investments (Fixed Maturity Securities by Sector) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | $ 3,460 | $ 2,897 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 388 | 178 |
Fixed maturity securities, gross unrealized losses | 5 | 8 |
Fixed maturity securities, estimated fair value | 3,843 | 3,067 |
U.S. Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 1,697 | 1,361 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 201 | 87 |
Fixed maturity securities, gross unrealized losses | 1 | 2 |
Fixed maturity securities, estimated fair value | 1,897 | 1,446 |
Foreign Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 503 | 396 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 58 | 23 |
Fixed maturity securities, gross unrealized losses | 2 | 3 |
Fixed maturity securities, estimated fair value | 559 | 416 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 350 | 142 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 6 | 1 |
Fixed maturity securities, gross unrealized losses | 1 | 1 |
Fixed maturity securities, estimated fair value | 355 | 142 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 299 | 319 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 31 | 16 |
Fixed maturity securities, gross unrealized losses | 1 | 1 |
Fixed maturity securities, estimated fair value | 329 | 334 |
U.S. Government and Agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 254 | 290 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 58 | 27 |
Fixed maturity securities, gross unrealized losses | 0 | 0 |
Fixed maturity securities, estimated fair value | 312 | 317 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 219 | 277 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 17 | 12 |
Fixed maturity securities, gross unrealized losses | 0 | 1 |
Fixed maturity securities, estimated fair value | 236 | 288 |
State and Political Subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 122 | 92 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 15 | 10 |
Fixed maturity securities, gross unrealized losses | 0 | 0 |
Fixed maturity securities, estimated fair value | 137 | 102 |
Foreign Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, amortized cost | 16 | 20 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 2 | 2 |
Fixed maturity securities, gross unrealized losses | 0 | 0 |
Fixed maturity securities, estimated fair value | $ 18 | $ 22 |
Investments (Maturities of Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, due in one year or less | $ 27 | |
Amortized cost, due after one year through five years | 529 | |
Amortized cost, due after five years through ten years | 1,104 | |
Amortized cost, due after ten years | 932 | |
Amortized cost, Structured Securities | 868 | |
Fixed maturity securities, amortized cost | 3,460 | $ 2,897 |
Estimated fair value, due in one year or less | 28 | |
Estimated fair value, due after one year through five years | 570 | |
Estimated fair value, due after five years through ten years | 1,217 | |
Estimated fair value, due after ten years | 1,108 | |
Estimated fair value, Structured Securities | 920 | |
Fixed maturity securities, estimated fair value | $ 3,843 | $ 3,067 |
Investments (Continuous Gross U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector) (Details) $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | $ 190 | $ 246 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | $ 3 | $ 4 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, number of securities | 82 | 69 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | $ 29 | $ 74 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | $ 2 | $ 4 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, number of securities | 15 | 36 |
U.S. Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | $ 54 | $ 94 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 1 | 2 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 2 | 17 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 0 | 0 |
Foreign Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 4 | 28 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 0 | 1 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 10 | 26 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 2 | 2 |
ABS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 98 | 57 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 1 | 0 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 17 | 22 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 0 | 1 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 19 | 38 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 1 | 1 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 0 | 3 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 0 | 0 |
RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 4 | 8 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 0 | 0 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 0 | 6 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 0 | 1 |
State and Political Subdivision | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 9 | 19 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 0 | 0 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 0 | 0 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | 0 | 0 |
Foreign Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities in continuous unrealized loss position, less than 12 months, estimated fair value | 2 | 2 |
Fixed maturity securities in continuous unrealized loss position, less than 12 months, gross unrealized losses | 0 | 0 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, estimated fair value | 0 | 0 |
Fixed maturity securities in continuous unrealized loss position, 12 months or greater, gross unrealized losses | $ 0 | $ 0 |
Investments (Mortgage Loans by
Investments (Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 645 | $ 628 |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 100.30% | 100.40% |
Financing receivable, allowance for credit losses | $ (2) | $ (3) |
Financing receivable, allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | (0.30%) | (0.40%) |
Financing receivable, net of allowance for credit losses | $ 643 | $ 625 |
Financing receivable, after allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 100.00% | 100.00% |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 458 | $ 457 |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 71.20% | 73.10% |
Financing receivable, allowance for credit losses | $ (1) | $ (2) |
Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 187 | $ 171 |
Financing receivable, before allowance for credit losses as a percentage of financing receivable, net of allowance for credit losses | 29.10% | 27.30% |
Financing receivable, allowance for credit losses | $ (1) | $ (1) |
Investments (Rollforward of the
Investments (Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans $ in Millions | Dec. 31, 2020USD ($) |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | $ 3 |
Financing receivable, allowance for credit losses, end of year | 2 |
Cumulative Effect, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | (1) |
Cumulative Effect, Adjusted Balance | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | 2 |
Commercial | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | 2 |
Financing receivable, allowance for credit losses, end of year | 1 |
Commercial | Cumulative Effect, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | (1) |
Commercial | Cumulative Effect, Adjusted Balance | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | 1 |
Agricultural | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | 1 |
Financing receivable, allowance for credit losses, end of year | 1 |
Agricultural | Cumulative Effect, Adjustment | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | 0 |
Agricultural | Cumulative Effect, Adjusted Balance | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |
Financing receivable, allowance for credit losses, beginning of year | $ 1 |
Investments (Credit Quality of
Investments (Credit Quality of Mortgage Loans by Portfolio Segment) (Details) - Mortgage Loans - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | $ 78 | |
Financing receivable, originated in FY before latest FY | 198 | |
Financing receivable, originated two years before latest FY | 56 | |
Financing receivable, originated three years before latest FY | 26 | |
Financing receivable, originated four years before latest FY | 32 | |
Financing receivable, originated five or more years before latest FY | 255 | |
Financing receivable, before allowance for credit losses | 645 | $ 628 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 32 | |
Financing receivable, originated in FY before latest FY | 152 | |
Financing receivable, originated two years before latest FY | 34 | |
Financing receivable, originated three years before latest FY | 20 | |
Financing receivable, originated four years before latest FY | 17 | |
Financing receivable, originated five or more years before latest FY | 203 | |
Financing receivable, before allowance for credit losses | $ 458 | $ 457 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 100.00% | 100.00% |
Commercial | Debt Service Coverage Ratio, Greater than 1.20x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 450 | $ 448 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 98.30% | 98.00% |
Commercial | Debt Service Coverage Ratio, 1.00x to 1.20x | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 8 | $ 9 |
Financing receivable, before allowance for credit losses by debt service coverage ratio as a percentage of financing receivable, before allowance for credit losses | 1.70% | 2.00% |
Commercial | Loan-to-Value Ratio, Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | $ 32 | |
Financing receivable, originated in FY before latest FY | 102 | |
Financing receivable, originated two years before latest FY | 23 | |
Financing receivable, originated three years before latest FY | 13 | |
Financing receivable, originated four years before latest FY | 16 | |
Financing receivable, originated five or more years before latest FY | 187 | |
Financing receivable, before allowance for credit losses | 373 | |
Commercial | Loan-to-Value Ratio, 65% to 75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | |
Financing receivable, originated in FY before latest FY | 50 | |
Financing receivable, originated two years before latest FY | 6 | |
Financing receivable, originated three years before latest FY | 7 | |
Financing receivable, originated four years before latest FY | 0 | |
Financing receivable, originated five or more years before latest FY | 3 | |
Financing receivable, before allowance for credit losses | 66 | |
Commercial | Loan-to-Value Ratio, 76% to 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | |
Financing receivable, originated in FY before latest FY | 0 | |
Financing receivable, originated two years before latest FY | 0 | |
Financing receivable, originated three years before latest FY | 0 | |
Financing receivable, originated four years before latest FY | 1 | |
Financing receivable, originated five or more years before latest FY | 3 | |
Financing receivable, before allowance for credit losses | 4 | |
Commercial | Loan-to-Value Ratio, Greater than 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | |
Financing receivable, originated in FY before latest FY | 0 | |
Financing receivable, originated two years before latest FY | 5 | |
Financing receivable, originated three years before latest FY | 0 | |
Financing receivable, originated four years before latest FY | 0 | |
Financing receivable, originated five or more years before latest FY | 10 | |
Financing receivable, before allowance for credit losses | 15 | |
Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 46 | |
Financing receivable, originated in FY before latest FY | 46 | |
Financing receivable, originated two years before latest FY | 22 | |
Financing receivable, originated three years before latest FY | 6 | |
Financing receivable, originated four years before latest FY | 15 | |
Financing receivable, originated five or more years before latest FY | 52 | |
Financing receivable, before allowance for credit losses | 187 | $ 171 |
Agricultural | Loan-to-Value Ratio, Less than 65% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 46 | |
Financing receivable, originated in FY before latest FY | 43 | |
Financing receivable, originated two years before latest FY | 21 | |
Financing receivable, originated three years before latest FY | 6 | |
Financing receivable, originated four years before latest FY | 15 | |
Financing receivable, originated five or more years before latest FY | 52 | |
Financing receivable, before allowance for credit losses | 183 | |
Agricultural | Loan-to-Value Ratio, 65% to 75% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated in current FY | 0 | |
Financing receivable, originated in FY before latest FY | 3 | |
Financing receivable, originated two years before latest FY | 1 | |
Financing receivable, originated three years before latest FY | 0 | |
Financing receivable, originated four years before latest FY | 0 | |
Financing receivable, originated five or more years before latest FY | 0 | |
Financing receivable, before allowance for credit losses | $ 4 |
Investments (Net Unrealized Inv
Investments (Net Unrealized Investment Gains (Losses)) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | |||
Fixed maturity securities | $ 383 | $ 170 | $ (36) |
Derivatives | 1 | 6 | 6 |
Subtotal | 384 | 176 | (30) |
Amounts allocated from: Future policy benefits | (20) | (3) | 0 |
Amounts allocated from: DAC and DSI | (38) | (19) | 11 |
Subtotal | (58) | (22) | 11 |
Deferred income tax benefit (expense) | (68) | (32) | 4 |
Net unrealized investment gains (losses) | $ 258 | $ 122 | $ (15) |
Investments (Changes in Net Unr
Investments (Changes in Net Unrealized Investment Gains (Losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized investment gains (losses), beginning of year | $ 122 | $ (15) | $ 30 |
Unrealized investment gains (losses) during the year | 208 | 206 | (87) |
Unrealized investment gains (losses) relating to: Future policy benefits | (17) | (3) | 0 |
Unrealized investment gains (losses) relating to: DAC and DSI | (19) | (30) | 30 |
Unrealized investment gains (losses) relating to: Deferred income tax benefit (expense) | 36 | 36 | (12) |
Unrealized investment gains (losses), end of year | 258 | 122 | (15) |
Change in net unrealized investment gains (losses) | $ 136 | $ 137 | $ (45) |
Investments (Invested Assets on
Investments (Invested Assets on Deposit and Pledged as Collateral) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Invested assets on deposit (regulatory deposits) | $ 2 | $ 2 |
Invested assets pledged as collateral | 5 | 19 |
Total invested assets on deposit and pledged as collateral | $ 7 | $ 21 |
Investments (Variable Interest
Investments (Variable Interest Entities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Carrying amount | $ 11,502 | $ 9,957 |
VIE, Not Primary Beneficiary | Fixed maturity securities | ||
Variable Interest Entity [Line Items] | ||
Carrying amount | 301 | 394 |
Maximum exposure to loss | $ 274 | $ 376 |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Income [Line Items] | |||
Gross investment income | $ 140 | $ 126 | $ 105 |
Less: Investment expenses | 6 | 4 | 5 |
Net investment income | 134 | 122 | 100 |
Fixed maturity securities | |||
Net Investment Income [Line Items] | |||
Gross investment income | 112 | 101 | 86 |
Mortgage loans | |||
Net Investment Income [Line Items] | |||
Gross investment income | 26 | 21 | 17 |
Cash, cash equivalents and short-term investments | |||
Net Investment Income [Line Items] | |||
Gross investment income | 1 | 3 | 1 |
Other | |||
Net Investment Income [Line Items] | |||
Gross investment income | $ 1 | $ 1 | $ 1 |
Investments (Components of Net
Investments (Components of Net Investment Gains (Losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net investment gains (losses), fixed maturity securities | $ 13 | $ 5 | $ (5) |
Net investment gains (losses), mortgage loans | 0 | (1) | 0 |
Net investment gains (losses), other | 0 | 0 | (2) |
Net investment gains (losses) | $ 13 | $ 4 | $ (7) |
Investments (Sales or Disposals
Investments (Sales or Disposals of Fixed Maturity Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales or disposals of fixed maturity securities | $ 321 | $ 460 | $ 274 |
Fixed maturity securities, gross investment gains | 14 | 8 | 1 |
Fixed maturity securities, gross investment losses | (1) | (3) | (6) |
Fixed maturity securities, net investment gains (losses) | $ 13 | $ 5 | $ (5) |
Investments (Fixed Maturity S_2
Investments (Fixed Maturity Securities - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, estimated fair value | $ 3,843 | $ 3,067 |
Fixed maturity securities, allowance for credit losses | 0 | 0 |
Non Income Producing | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, estimated fair value | 2 | $ 0 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 24 |
Investments (Mortgage Loans - N
Investments (Mortgage Loans - Narrative) (Details) - Mortgage Loans - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued interest receivable | $ 4 | |
Financing receivable, before allowance for credit losses | 645 | $ 628 |
COVID-19 Pandemic financing receivable in nonaccrual status | 0 | |
Financing receivables in nonaccrual status | 0 | $ 0 |
Financing receivables modified in a troubled debt restructuring | 0 | |
COVID-19 Pandemic Financial Asset Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | 0 | |
Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses | $ 0 | |
Performing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivable, before allowance for credit losses by performance status as a percentage of financing receivables, before allowance for credit losses | 100.00% | 100.00% |
Investments (Invested Assets _2
Investments (Invested Assets on Deposit and Pledged as Collateral - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Restricted cash and cash equivalents | $ 0 | $ 0 |
Investments (Related Party Inve
Investments (Related Party Investment Transactions - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Related party investment administrative service charges | $ 53 | $ 61 | $ 44 |
MetLife Investment Management, LLC | |||
Related Party Transaction [Line Items] | |||
Related party investment administrative service charges | $ 2 |
Derivatives (Primary Risks) (De
Derivatives (Primary Risks) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 7,088 | $ 5,615 |
Derivative assets | 743 | 446 |
Derivative liabilities | 504 | 191 |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 477 | 338 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 407 | 152 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 115 | 98 |
Derivative assets | 4 | 6 |
Derivative liabilities | 3 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 6,973 | 5,517 |
Derivative assets | 262 | 102 |
Derivative liabilities | 94 | 39 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 800 | 800 |
Derivative assets | 1 | 2 |
Derivative liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 16 | 18 |
Derivative assets | 4 | 4 |
Derivative liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 5,908 | 4,699 |
Derivative assets | 250 | 96 |
Derivative liabilities | 94 | 39 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | Equity total return swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 249 | 0 |
Derivative assets | 7 | 0 |
Derivative liabilities | 0 | 0 |
Ceded Guaranteed Minimum Benefit | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 477 | 338 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 0 | 0 |
Direct Guaranteed Minimum Benefit | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 14 | (28) |
Direct index-linked annuities | ||
Derivatives, Fair Value [Line Items] | ||
Embedded Derivative, Fair Value of Embedded Derivative Asset | 0 | 0 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 393 | 180 |
Cash Flow Hedging | Derivatives Designated as Hedging Instruments | Foreign currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 115 | 98 |
Derivative assets | 4 | 6 |
Derivative liabilities | $ 3 | $ 0 |
Derivatives Derivatives Pertain
Derivatives Derivatives Pertaining to Hedged Items Presented in Net Derivative Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | $ 0 | $ 0 | $ 0 |
Amount of Gains (Losses) Deferred in AOCI | (5) | 0 | 5 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 |
Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | (5) | 0 | 5 |
Net Derivative Gains (Losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 129 | 42 | (19) |
Net Derivative Gains (Losses) | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 129 | 42 | (19) |
Net Derivative Gains (Losses) | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Net Investment Income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | 1 | 1 |
Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Net Investment Income | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | 1 | 1 |
Interest rate derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 |
Interest rate derivatives | Net Derivative Gains (Losses) | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (1) | (8) | (2) |
Interest rate derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Foreign currency exchange rate derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 |
Foreign currency exchange rate derivatives | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | (5) | 0 | 5 |
Foreign currency exchange rate derivatives | Net Derivative Gains (Losses) | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | 1 | 1 |
Foreign currency exchange rate derivatives | Net Derivative Gains (Losses) | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Foreign currency exchange rate derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Foreign currency exchange rate derivatives | Net Investment Income | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | 1 | 1 |
Equity derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 |
Equity derivatives | Net Derivative Gains (Losses) | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 195 | 113 | (31) |
Equity derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 0 |
Net Embedded Derivatives | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net Derivative Gains (Losses) Recognized for Hedged Items | 0 | 0 | 0 |
Amount of Gains (Losses) Deferred in AOCI | 0 | 0 | 0 |
Net Embedded Derivatives | Net Derivative Gains (Losses) | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (66) | (64) | 13 |
Net Embedded Derivatives | Net Investment Income | Derivatives Not Designated or Not Qualifying as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 0 | $ 0 |
Derivatives (Estimated Fair Val
Derivatives (Estimated Fair Value of Derivatives Assets and Liabilities after Master Netting Agreements and Cash) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 266 | $ 108 |
Derivative Asset, Not Offset, Policy Election Deduction | (91) | (21) |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (136) | (82) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 39 | 5 |
Derivative Asset, Collateral, Obligation to Return Securities, Offset | (34) | (4) |
Derivative Asset, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | 5 | 1 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 97 | 39 |
Derivative Liability, Not Offset, Policy Election Deduction | (91) | (21) |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 6 | 18 |
Derivative Liability, Collateral, Right to Reclaim Securities, Offset | (6) | (18) |
Derivative Liability, Fair Value, Offset Against Collateral, Net of Not Subject to Master Netting Arrangement, Policy Election | $ 0 | $ 0 |
Derivatives Derivatives (Credit
Derivatives Derivatives (Credit Risk on Freestanding Derivatives) (Details) - Derivatives Subject To Credit-Contingent Provisions - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Credit Derivatives [Line Items] | ||
Estimated fair value of derivatives in a net liability position (1) | $ 6 | $ 18 |
Fixed maturity securities | ||
Credit Derivatives [Line Items] | ||
Estimated Fair Value of Collateral Provided (2): | $ 6 | $ 19 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ 1 | $ 6 |
Fair Value (Recurring Fair Valu
Fair Value (Recurring Fair Value Measurements) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | $ 3,843 | $ 3,067 |
Short-term investments, principally at estimated fair value | 71 | 52 |
Derivative assets | 743 | 446 |
Embedded derivatives within asset host contracts (2) | 477 | 338 |
Separate account assets | 4,965 | 4,676 |
Liabilities [Abstract] | ||
Derivative liabilities | 504 | 191 |
Embedded derivatives within liability host contracts (2) | 407 | 152 |
Recurring | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 3,843 | 3,067 |
Short-term investments, principally at estimated fair value | 71 | 52 |
Derivative assets | 266 | 108 |
Embedded derivatives within asset host contracts (2) | 477 | 338 |
Separate account assets | 4,965 | 4,676 |
Total assets | 9,622 | 8,241 |
Liabilities [Abstract] | ||
Embedded derivatives within liability host contracts (2) | 407 | 152 |
Total liabilities | 504 | 191 |
Recurring | Interest rate | ||
Assets [Abstract] | ||
Derivative assets | 1 | 2 |
Recurring | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets | 8 | 10 |
Liabilities [Abstract] | ||
Derivative liabilities | 3 | |
Recurring | Equity derivatives | ||
Assets [Abstract] | ||
Derivative assets | 257 | 96 |
Liabilities [Abstract] | ||
Derivative liabilities | 94 | 39 |
Recurring | U.S. Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,897 | 1,446 |
Recurring | Foreign Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 559 | 416 |
Recurring | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 355 | 142 |
Recurring | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 329 | 334 |
Recurring | U.S. Government and Agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 312 | 317 |
Recurring | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 236 | 288 |
Recurring | State and Political Subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 137 | 102 |
Recurring | Foreign Government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 18 | 22 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 158 | 184 |
Short-term investments, principally at estimated fair value | 63 | 35 |
Derivative assets | 0 | 0 |
Embedded derivatives within asset host contracts (2) | 0 | 0 |
Separate account assets | 0 | 0 |
Total assets | 221 | 219 |
Liabilities [Abstract] | ||
Embedded derivatives within liability host contracts (2) | 0 | 0 |
Total liabilities | 0 | 0 |
Recurring | Level 1 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Recurring | Level 1 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | |
Recurring | Level 1 | Equity derivatives | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | U.S. Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | Foreign Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | U.S. Government and Agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 158 | 184 |
Recurring | Level 1 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | State and Political Subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 1 | Foreign Government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 3,653 | 2,839 |
Short-term investments, principally at estimated fair value | 8 | 17 |
Derivative assets | 266 | 108 |
Embedded derivatives within asset host contracts (2) | 0 | 0 |
Separate account assets | 4,965 | 4,676 |
Total assets | 8,892 | 7,640 |
Liabilities [Abstract] | ||
Embedded derivatives within liability host contracts (2) | 0 | 0 |
Total liabilities | 97 | 39 |
Recurring | Level 2 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets | 1 | 2 |
Recurring | Level 2 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets | 8 | 10 |
Liabilities [Abstract] | ||
Derivative liabilities | 3 | |
Recurring | Level 2 | Equity derivatives | ||
Assets [Abstract] | ||
Derivative assets | 257 | 96 |
Liabilities [Abstract] | ||
Derivative liabilities | 94 | 39 |
Recurring | Level 2 | U.S. Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 1,873 | 1,419 |
Recurring | Level 2 | Foreign Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 557 | 408 |
Recurring | Level 2 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 349 | 133 |
Recurring | Level 2 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 329 | 334 |
Recurring | Level 2 | U.S. Government and Agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 154 | 133 |
Recurring | Level 2 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 236 | 288 |
Recurring | Level 2 | State and Political Subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 137 | 102 |
Recurring | Level 2 | Foreign Government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 18 | 22 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 32 | 44 |
Short-term investments, principally at estimated fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Embedded derivatives within asset host contracts (2) | 477 | 338 |
Separate account assets | 0 | 0 |
Total assets | 509 | 382 |
Liabilities [Abstract] | ||
Embedded derivatives within liability host contracts (2) | 407 | 152 |
Total liabilities | 407 | 152 |
Recurring | Level 3 | Interest rate | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Recurring | Level 3 | Foreign currency exchange rate | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | |
Recurring | Level 3 | Equity derivatives | ||
Assets [Abstract] | ||
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ||
Derivative liabilities | 0 | 0 |
Recurring | Level 3 | U.S. Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 24 | 27 |
Recurring | Level 3 | Foreign Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 2 | 8 |
Recurring | Level 3 | ABS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 6 | 9 |
Recurring | Level 3 | CMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | U.S. Government and Agency | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | RMBS | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | State and Political Subdivision | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | 0 | 0 |
Recurring | Level 3 | Foreign Government | ||
Assets [Abstract] | ||
Fixed maturity securities, estimated fair value | $ 0 | $ 0 |
Fair Value (Quantitative Inform
Fair Value (Quantitative Information) (Details) - Fair Value, Inputs, Level 3 [Member] | Dec. 31, 2020 | Dec. 31, 2019 |
Mortality rates | Minimum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.0003 | 0.0002 |
Mortality rates | Maximum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.1213 | 0.1131 |
Lapse rates | Minimum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.0025 | 0.0025 |
Lapse rates | Maximum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.1500 | 0.1600 |
Utilization rates | Minimum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0 | 0 |
Utilization rates | Maximum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.2500 | 0.2500 |
Withdrawal rates | Minimum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.0025 | 0.0025 |
Withdrawal rates | Maximum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.1000 | 0.1000 |
Long-term equity volatilities | Minimum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.1666 | 0.1624 |
Long-term equity volatilities | Maximum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.2221 | 0.2165 |
Nonperformance risk spread | Minimum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.0047 | 0.0054 |
Nonperformance risk spread | Maximum | ||
Fair Value, Option, Quantitative Disclosure [Line Items] | ||
Embedded Derivative Liability, Measurement Input | 0.0197 | 0.0199 |
Fair Value (Unobservable Input
Fair Value (Unobservable Input Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Embedded Derivatives (2) | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Balance, January 1, | $ 186 | $ 311 | |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | (66) | (64) | $ 13 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases (5) | 0 | 0 | |
Sales (5) | 0 | 0 | |
Issuances (5) | 0 | 0 | |
Settlements (5) | (50) | (61) | |
Transfers into Level 3 (6) | 0 | 0 | |
Transfers out of Level 3 (6) | 0 | 0 | |
Balance at December 31, | 70 | 186 | 311 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | (111) | (122) | (20) |
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | ||
Corporate (1) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, January 1, | 35 | 13 | |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 1 | (1) |
Purchases (5) | 16 | 30 | |
Sales (5) | (6) | 0 | |
Issuances (5) | 0 | 0 | |
Settlements (5) | 0 | 0 | |
Transfers into Level 3 (6) | 3 | 0 | |
Transfers out of Level 3 (6) | (22) | (9) | |
Balance, December 31, | 26 | 35 | 13 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | 0 | 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | ||
Structured Securities | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance, January 1, | 9 | 5 | |
Total realized/unrealized gains (losses) included in net income (loss) (3) (4) | 0 | 0 | 0 |
Total realized/unrealized gains (losses) included in AOCI | 0 | 0 | 0 |
Purchases (5) | 6 | 9 | |
Sales (5) | 0 | 0 | |
Issuances (5) | 0 | 0 | |
Settlements (5) | 0 | 0 | |
Transfers into Level 3 (6) | 0 | 0 | |
Transfers out of Level 3 (6) | (9) | (5) | |
Balance, December 31, | 6 | 9 | 5 |
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at end of period | 0 | $ 0 | $ 0 |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | $ 0 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Estimated Fair Value | ||
Assets | ||
Mortgage loans | $ 681 | $ 647 |
Premiums, reinsurance and other receivables | 436 | 444 |
Liabilities | ||
Policyholder account balances | 979 | 955 |
Other liabilities | 430 | 432 |
Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Premiums, reinsurance and other receivables | 1 | 0 |
Liabilities | ||
Policyholder account balances | 0 | 0 |
Other liabilities | 7 | 1 |
Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 681 | 647 |
Premiums, reinsurance and other receivables | 435 | 444 |
Liabilities | ||
Policyholder account balances | 979 | 955 |
Other liabilities | 423 | 431 |
Carrying Value | ||
Assets | ||
Mortgage loans | 643 | 625 |
Premiums, reinsurance and other receivables | 436 | 444 |
Liabilities | ||
Policyholder account balances | 915 | 963 |
Other liabilities | $ 430 | $ 432 |
Short-term Debt (Details)
Short-term Debt (Details) - Intercompany Liquidity Facilities $ in Millions | Mar. 30, 2020USD ($) |
Short-term Debt [Line Items] | |
Debt instrument, face amount | $ 100 |
Debt instrument, stated interest rate | 2.4996% |
Equity (Statutory Income) (Deta
Equity (Statutory Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Statutory net income (loss) | $ (390) | $ (139) | $ 19 |
Statutory capital and surplus | $ 373 | $ 579 |
Equity (Components of Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | $ 122 | $ (15) | $ 30 |
OCI before reclassifications | 185 | 178 | (62) |
Deferred income tax benefit (expense) | (39) | (37) | 13 |
AOCI before reclassifications, net of income tax | 268 | 126 | (19) |
Amounts reclassified from AOCI | (13) | (5) | 5 |
Deferred income tax benefit (expense) | 3 | 1 | (1) |
Amounts reclassified from AOCI, net of income tax | (10) | (4) | 4 |
Balance end of period | 258 | 122 | (15) |
Unrealized Investment Gains (Losses), Net of Related Offsets (1) | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 116 | (21) | 29 |
OCI before reclassifications | 190 | 178 | (67) |
Deferred income tax benefit (expense) | (40) | (37) | 13 |
AOCI before reclassifications, net of income tax | 266 | 120 | (25) |
Amounts reclassified from AOCI | (13) | (5) | 5 |
Deferred income tax benefit (expense) | 3 | 1 | (1) |
Amounts reclassified from AOCI, net of income tax | (10) | (4) | 4 |
Balance end of period | 256 | 116 | (21) |
Unrealized Gains (Losses) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance beginning of period | 6 | 6 | 1 |
OCI before reclassifications | (5) | 0 | 5 |
Deferred income tax benefit (expense) | 1 | 0 | 0 |
AOCI before reclassifications, net of income tax | 2 | 6 | 6 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Deferred income tax benefit (expense) | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 |
Balance end of period | $ 2 | $ 6 | $ 6 |
Equity (Reclassifications Out o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment gains (losses) | $ 13 | $ 4 | $ (7) |
Pre-tax adjusted earnings | 132 | 31 | 43 |
Income tax (expense) benefit | (25) | (3) | (5) |
Net income (loss) | 107 | 28 | 38 |
Amounts Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income (loss) | 10 | 4 | (4) |
Amounts Reclassified from AOCI | Net unrealized investment gains (losses): | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net investment gains (losses) | 13 | 5 | (5) |
Pre-tax adjusted earnings | 13 | 5 | (5) |
Income tax (expense) benefit | (3) | (1) | 1 |
Net income (loss) | $ 10 | $ 4 | $ (4) |
Equity (Capital Transactions -
Equity (Capital Transactions - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Capital contribution | $ 0 | $ 75 | $ 0 |
Equity (Statutory Income - Narr
Equity (Statutory Income - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | ||
Statutory Accounting Practices, Prescribed Practice, Amount | $ 33 | $ 40 |
Minimum | ||
Statutory Accounting Practices [Line Items] | ||
Total adjusted capital of Brighthouse New York | in excess of 400% | in excess of 400% |
Equity (Dividend Restrictions -
Equity (Dividend Restrictions - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2021 | |
Dividends paid | $ 0 | $ 28 | $ 0 | |
Forecast [Member] | ||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 0 |
Other Expenses (Other Expenses)
Other Expenses (Other Expenses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Income and Expenses [Abstract] | |||
Compensation | $ 20 | $ 20 | $ 13 |
Contracted services and other labor costs | 16 | 15 | 9 |
Transition services agreements | 6 | 14 | 11 |
Establishment costs | 8 | 3 | 5 |
Premium and other taxes, licenses and fees | 0 | 2 | 3 |
Volume related costs, excluding compensation, net of DAC capitalization | 22 | 19 | 19 |
Other | 5 | 8 | 6 |
Net other expenses | $ 77 | $ 81 | $ 66 |
Other Revenues and Other Expe_2
Other Revenues and Other Expenses Other Revenues (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Distribution Service [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 13 | $ 13 | $ 14 |
Income Tax (Provision for Incom
Income Tax (Provision for Income Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ (3) | $ 33 | $ (2) |
Deferred: | |||
Federal | 28 | (30) | 7 |
Current and Deferred: | |||
Income Tax Expense (Benefit) | $ 25 | $ 3 | $ 5 |
Income Tax (Rate Reconciliation
Income Tax (Rate Reconciliation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax expense benefit continuing operations income tax reconciliation | |||
Tax provision at statutory rate | $ 28 | $ 6 | $ 9 |
Dividends received deduction | (2) | (2) | (2) |
Prior year tax | 0 | 0 | (1) |
Tax credits | (1) | (1) | (1) |
Income Tax Expense (Benefit) | $ 25 | $ 3 | $ 5 |
Effective tax rate | 19.00% | 9.00% | 12.00% |
Income Tax (Net Deferred Income
Income Tax (Net Deferred Income Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | ||
Tax credit carryforwards | $ 6 | $ 4 |
Net operating loss carryforwards | 62 | 3 |
Deferred Tax Assets, Gross, Total | 68 | 7 |
Deferred income tax liabilities: | ||
Investments, including derivatives | 34 | 12 |
Policyholder liabilities and receivables | 112 | 45 |
Intangibles | 1 | 1 |
Net unrealized investment gains | 68 | 33 |
DAC | 31 | 30 |
Deferred Tax Liabilities, Gross | 246 | 121 |
Deferred tax assets and liabilities [Abstract] | ||
Deferred Tax Liabilities, Net | $ (178) | $ (114) |
Income Tax (Tax Credit Carryfor
Income Tax (Tax Credit Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Tax Credit Carryforward [Line Items] | ||
Foreign Tax Credits Carryforwards | $ 6 | $ 4 |
Foreign Tax Authority [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Foreign Tax Credits Carryforwards | 6 | |
Foreign Tax Authority [Member] | 2020-2024 | ||
Tax Credit Carryforward [Line Items] | ||
Foreign Tax Credits Carryforwards | 1 | |
Foreign Tax Authority [Member] | 2025-2029 | ||
Tax Credit Carryforward [Line Items] | ||
Foreign Tax Credits Carryforwards | 4 | |
Foreign Tax Authority [Member] | 2030-2034 | ||
Tax Credit Carryforward [Line Items] | ||
Foreign Tax Credits Carryforwards | 1 | |
Foreign Tax Authority [Member] | 2035-2039 | ||
Tax Credit Carryforward [Line Items] | ||
Foreign Tax Credits Carryforwards | 0 | |
Foreign Tax Authority [Member] | Indefinite | ||
Tax Credit Carryforward [Line Items] | ||
Foreign Tax Credits Carryforwards | $ 0 |
Income Tax (Narrative) (Details
Income Tax (Narrative) (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 1 | $ 1 | $ 1 | |
Income Tax Examination, Penalties Expense | 0 | 0 | $ 0 | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards | 297 | |||
Deferred Tax Assets, Operating Loss Carryforwards | 62 | 3 | ||
Related Party Transactions, By Related Party [Abstract] | ||||
Current income tax payable | 2 | 30 | ||
Metlife Inc [Member] | ||||
Related Party Transactions, By Related Party [Abstract] | ||||
Income Taxes Paid | $ 2 | |||
Current income tax payable | 3 | $ 3 | ||
2030-2034 | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards | 5 | |||
Indefinite | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Operating Loss Carryforwards | $ 292 |
Contingencies, Commitments an_2
Contingencies, Commitments and Guarantees (Commitments - Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Mortgage Loan Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet commitments | $ 7 | $ 11 |
Commitments to Fund Private Corporate Bond Investments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet commitments | $ 15 | $ 10 |
Contingencies, Commitments an_3
Contingencies, Commitments and Guarantees (Guarantees - Narrative) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Guarantees [Abstract] | ||
Liabilities for indemnities, guarantees and commitments | $ 0 | $ 0 |
Related Party Transactions (Rel
Related Party Transactions (Related Party Transactions - Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Insurance Commissions and Fees | $ 93 | $ 97 | $ 102 |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 53 | 61 | 44 |
Related Party Transaction, Amounts of Transaction | 3 | 1 | 3 |
Related Party Transaction, Due from (to) Related Party | (6) | (18) | |
Broker Dealer Activities [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | 71 | 66 | 58 |
Revenue from Related Parties | 12 | 12 | 12 |
Due from Related Parties | 1 | 1 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Insurance Commissions and Fees | $ 11 | $ 12 | $ 12 |
Summary of Investments - Othe_2
Summary of Investments - Other Than Investments in Related Parties (Details) $ in Millions | Dec. 31, 2020USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | $ 4,440 |
Amount at Which Shown on Balance Sheet | 4,823 |
U.S. Government and Agency | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 254 |
Estimated Fair Value | 312 |
Amount at Which Shown on Balance Sheet | 312 |
State and Political Subdivision | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 122 |
Estimated Fair Value | 137 |
Amount at Which Shown on Balance Sheet | 137 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 92 |
Estimated Fair Value | 105 |
Amount at Which Shown on Balance Sheet | 105 |
Foreign Government | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 16 |
Estimated Fair Value | 18 |
Amount at Which Shown on Balance Sheet | 18 |
All other corporate bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,104 |
Estimated Fair Value | 2,347 |
Amount at Which Shown on Balance Sheet | 2,347 |
Total bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 2,588 |
Estimated Fair Value | 2,919 |
Amount at Which Shown on Balance Sheet | 2,919 |
Mortgage-backed and asset-backed securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 868 |
Estimated Fair Value | 920 |
Amount at Which Shown on Balance Sheet | 920 |
Redeemable preferred stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 4 |
Estimated Fair Value | 4 |
Amount at Which Shown on Balance Sheet | 4 |
Total fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 3,460 |
Estimated Fair Value | 3,843 |
Amount at Which Shown on Balance Sheet | 3,843 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 643 |
Amount at Which Shown on Balance Sheet | 643 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 71 |
Amount at Which Shown on Balance Sheet | 71 |
Other invested assets | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost | 266 |
Amount at Which Shown on Balance Sheet | $ 266 |
Supplementary Insurance Infor_2
Supplementary Insurance Information (Balance Sheet Items) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
DAC | $ 160 | $ 175 |
Future Policy Benefits and Other Policy-Related Balances | 837 | 752 |
Policyholder Account Balances | 3,151 | 2,339 |
Unearned Premiums (1), (2) | 1 | 1 |
Unearned Revenue (1) | 2 | 2 |
Annuities | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
DAC | 141 | 156 |
Future Policy Benefits and Other Policy-Related Balances | 474 | 390 |
Policyholder Account Balances | 3,138 | 2,324 |
Unearned Premiums (1), (2) | 0 | 0 |
Unearned Revenue (1) | 2 | 2 |
Life | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
DAC | 19 | 19 |
Future Policy Benefits and Other Policy-Related Balances | 352 | 352 |
Policyholder Account Balances | 13 | 15 |
Unearned Premiums (1), (2) | 1 | 1 |
Unearned Revenue (1) | 0 | 0 |
Corporate & Other | ||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | ||
DAC | 0 | 0 |
Future Policy Benefits and Other Policy-Related Balances | 11 | 10 |
Policyholder Account Balances | 0 | 0 |
Unearned Premiums (1), (2) | 0 | 0 |
Unearned Revenue (1) | $ 0 | $ 0 |
Supplementary Insurance Infor_3
Supplementary Insurance Information Supplementary Insurance Information (Income Statement Items) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | $ 115 | $ 120 | $ 139 |
Net Investment Income (1) | 134 | 122 | 100 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 61 | 69 | 45 |
Amortization of DAC | 38 | 22 | 1 |
Other Expenses | 77 | 81 | 66 |
Annuities | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 102 | 105 | 111 |
Net Investment Income (1) | 97 | 83 | 63 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 59 | 21 | 27 |
Amortization of DAC | 37 | 19 | (2) |
Other Expenses | 57 | 68 | 46 |
Life | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 12 | 14 | 25 |
Net Investment Income (1) | 36 | 37 | 35 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 2 | 48 | 17 |
Amortization of DAC | 1 | 3 | 3 |
Other Expenses | 12 | 10 | 15 |
Corporate & Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Premiums and Universal Life and Investment-Type Product Policy Fees | 1 | 1 | 3 |
Net Investment Income (1) | 1 | 2 | 2 |
Policyholder Benefits and Claims and Interest Credited to Policyholder Account Balances | 0 | 0 | 1 |
Amortization of DAC | 0 | 0 | 0 |
Other Expenses | $ 8 | $ 3 | $ 5 |
Consolidated Reinsurance (Detai
Consolidated Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Life insurance in-force, gross amount | $ 41,707 | $ 44,324 | $ 46,722 |
Life insurance in-force, ceded amount | 35,792 | 38,220 | 39,987 |
Life insurance in-force, assumed amount | 0 | 0 | 0 |
Life insurance in-force, net amount | $ 5,915 | $ 6,104 | $ 6,735 |
Life insurance in-force, % amount assumed to net amount | 0.00% | 0.00% | 0.00% |
Direct premiums | $ 82 | $ 86 | $ 91 |
Ceded Premiums Earned | 60 | 63 | 54 |
Premiums, net amount | 22 | 23 | 37 |
Affiliated Entity [Member] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Life insurance in-force, ceded amount | 27,000 | 28,700 | 29,800 |
Life insurance premium (1) | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct premiums | 82 | 86 | 91 |
Ceded Premiums Earned | 60 | 63 | 54 |
Assumed Premiums Earned | 0 | 0 | 0 |
Premiums, net amount | $ 22 | $ 23 | $ 37 |
Premiums earned, % amount assumed to net amount | 0.00% | 0.00% | 0.00% |
Life insurance premium (1) | Affiliated Entity [Member] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Ceded Premiums Earned | $ 43 | $ 45 | $ 37 |