Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 26, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GNW | |
Entity Registrant Name | GENWORTH FINANCIAL INC | |
Entity Central Index Key | 1,276,520 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 497,464,957 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Assets | |||
Fixed maturity securities available-for-sale, at fair value | $ 60,851 | $ 61,276 | |
Equity securities available-for-sale, at fair value | 273 | 275 | |
Commercial mortgage loans | 6,133 | 6,100 | |
Restricted commercial mortgage loans related to securitization entities | 175 | 201 | |
Policy loans | 1,567 | 1,501 | |
Other invested assets | 2,773 | 2,244 | |
Restricted other invested assets related to securitization entities, at fair value | 412 | 411 | |
Total investments | 72,184 | 72,008 | |
Cash and cash equivalents | 3,666 | 4,716 | |
Accrued investment income | 685 | 664 | |
Deferred acquisition costs | 4,437 | 4,849 | |
Intangible assets | 284 | 250 | |
Goodwill | 14 | 16 | |
Reinsurance recoverable | 17,276 | 17,314 | |
Other assets | 577 | 524 | |
Separate account assets | 7,893 | 9,208 | |
Assets held for sale related to discontinued operations | 1,206 | 1,809 | |
Total assets | 108,222 | 111,358 | |
Liabilities and stockholders' equity | |||
Future policy benefits | 36,472 | 35,915 | |
Policyholder account balances | 26,000 | 26,032 | |
Liability for policy and contract claims | 8,065 | 7,937 | |
Unearned premiums | 3,340 | 3,547 | |
Other liabilities ($42 and $45 of other liabilities are related to securitization entities) | 3,241 | 3,282 | |
Borrowings related to securitization entities ($80 and $85 are at fair value) | 188 | 219 | |
Non-recourse funding obligations | 1,951 | 1,996 | |
Long-term borrowings | 4,601 | 4,639 | |
Deferred tax liability | 201 | 858 | |
Separate account liabilities | 7,893 | 9,208 | |
Liabilities held for sale related to discontinued operations | 854 | 928 | |
Total liabilities | $ 92,806 | $ 94,561 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 586 million and 585 million shares issued as of September 30, 2015 and December 31, 2014, respectively; 497 million shares outstanding as of September 30, 2015 and December 31, 2014 | $ 1 | $ 1 | |
Additional paid-in capital | 11,944 | 11,997 | |
Net unrealized investment gains (losses): | |||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,709 | 2,431 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 22 | 22 | |
Net unrealized investment gains (losses) | [1] | 1,731 | 2,453 |
Derivatives qualifying as hedges | [2] | 2,130 | 2,070 |
Foreign currency translation and other adjustments | (383) | (77) | |
Total accumulated other comprehensive income (loss) | 3,478 | 4,446 | |
Retained earnings | 856 | 1,179 | |
Treasury stock, at cost (88 million shares as of September 30, 2015 and December 31, 2014) | (2,700) | (2,700) | |
Total Genworth Financial, Inc.'s stockholders' equity | 13,579 | 14,923 | |
Noncontrolling interests | 1,837 | 1,874 | |
Total stockholders' equity | 15,416 | 16,797 | |
Total liabilities and stockholders' equity | $ 108,222 | $ 111,358 | |
[1] | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. | ||
[2] | See note 5 for additional information. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Other liabilities, securitization entities | $ 42 | $ 45 |
Borrowings related to securitization entities, fair value | $ 80 | $ 85 |
Class A common stock, par value | $ 0.001 | $ 0.001 |
Class A common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Class A common stock, shares issued | 586,000,000 | 585,000,000 |
Class A common stock, shares outstanding | 497,000,000 | 497,000,000 |
Treasury stock, shares | 88,000,000 | 88,000,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Revenues: | |||||
Premiums | $ 1,145 | $ 1,210 | $ 3,422 | $ 3,486 | |
Net investment income | 783 | 778 | 2,357 | 2,345 | |
Net investment gains (losses) | (51) | (27) | (59) | (11) | |
Insurance and investment product fees and other | 223 | 229 | 672 | 680 | |
Total revenues | 2,100 | 2,190 | 6,392 | 6,500 | |
Benefits and expenses: | |||||
Benefits and other changes in policy reserves | 1,290 | 1,934 | 3,714 | 4,282 | |
Interest credited | 179 | 185 | 540 | 552 | |
Acquisition and operating expenses, net of deferrals | 314 | 284 | 876 | 839 | |
Amortization of deferred acquisition costs and intangibles | 563 | 113 | 759 | 325 | |
Goodwill impairment | 0 | 550 | 0 | 550 | |
Interest expense | 105 | 104 | 315 | 327 | |
Total benefits and expenses | 2,451 | 3,170 | 6,204 | 6,875 | |
Income (loss) from continuing operations before income taxes | (351) | (980) | 188 | (375) | |
Provision (benefit) for income taxes | (134) | (187) | 27 | (16) | |
Income (loss) from continuing operations | (217) | (793) | 161 | (359) | |
Income (loss) from discontinued operations, net of taxes | (21) | 6 | (334) | 19 | |
Net loss | (238) | (787) | (173) | (340) | |
Less: net income attributable to noncontrolling interests | 46 | 57 | 150 | 144 | |
Net loss available to Genworth Financial, Inc.'s common stockholders | $ (284) | $ (844) | $ (323) | $ (484) | |
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per common share: | |||||
Basic | $ (0.53) | $ (1.71) | $ 0.02 | $ (1.01) | |
Diluted | (0.53) | (1.71) | 0.02 | (1.01) | |
Net loss available to Genworth Financial, Inc.'s common stockholders per common share: | |||||
Basic | (0.57) | (1.70) | (0.65) | (0.98) | |
Diluted | $ (0.57) | $ (1.70) | $ (0.65) | $ (0.98) | |
Weighted-average common shares outstanding: | |||||
Basic | 497.4 | 496.6 | 497.3 | 496.4 | |
Diluted | [1] | 497.4 | 496.6 | 499 | 496.4 |
Supplemental disclosures: | |||||
Total other-than-temporary impairments | $ (10) | $ (13) | $ (13) | $ (16) | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 1 | 7 | 1 | 7 | |
Net other-than-temporary impairments | (9) | (6) | (12) | (9) | |
Other investments gains (losses) | (42) | (21) | (47) | (2) | |
Net investment gains (losses) | $ (51) | $ (27) | $ (59) | $ (11) | |
[1] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.'s common stockholders and net loss available to Genworth Financial, Inc.'s common stockholders for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.3 million, 5.4 million and 6.4 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.'s common stockholders and net loss available to Genworth Financial, Inc.'s common stockholders for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, dilutive potential weighted-average common shares outstanding would have been 498.7 million, 502.0 million and 502.8 million, respectively. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net loss | $ (238) | $ (787) | $ (173) | $ (340) | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 87 | (68) | (728) | 1,171 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 1 | 0 | 8 | |
Derivatives qualifying as hedges | [1] | 217 | 101 | 60 | 434 |
Foreign currency translation and other adjustments | (302) | (379) | (619) | (252) | |
Total other comprehensive income (loss) | 2 | (345) | (1,287) | 1,361 | |
Total comprehensive income (loss) | (236) | (1,132) | (1,460) | 1,021 | |
Less: comprehensive income (loss) attributable to noncontrolling interests | (121) | (61) | (145) | 56 | |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (115) | $ (1,071) | $ (1,315) | $ 965 | |
[1] | See note 5 for additional information. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock, at cost | Total Genworth Financial, Inc.'s stockholders' equity | Noncontrolling interests | |
Balances at Dec. 31, 2013 | $ 15,620 | $ 1 | $ 12,127 | $ 2,542 | $ 2,423 | $ (2,700) | $ 14,393 | $ 1,227 | |
Sale of subsidiary shares to noncontrolling interests | 511 | 0 | (145) | (57) | 0 | 0 | (202) | 713 | |
Comprehensive income (loss): | |||||||||
Net income (loss) | (340) | 0 | 0 | 0 | (484) | 0 | (484) | 144 | |
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,171 | 0 | 0 | 1,155 | 0 | 0 | 1,155 | 16 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 8 | 0 | 0 | 8 | 0 | 0 | 8 | 0 | |
Derivatives qualifying as hedges | 434 | [1] | 0 | 0 | 434 | 0 | 0 | 434 | 0 |
Foreign currency translation and other adjustments | (252) | 0 | 0 | (148) | 0 | 0 | (148) | (104) | |
Total comprehensive income (loss) | 1,021 | 965 | 56 | ||||||
Dividends to noncontrolling interests | (46) | 0 | 0 | 0 | 0 | 0 | 0 | (46) | |
Stock-based compensation expense and exercises and other | 15 | 0 | 9 | 0 | 0 | 0 | 9 | 6 | |
Balances at Sep. 30, 2014 | 17,121 | 1 | 11,991 | 3,934 | 1,939 | (2,700) | 15,165 | 1,956 | |
Balances at Dec. 31, 2014 | 16,797 | 1 | 11,997 | 4,446 | 1,179 | (2,700) | 14,923 | 1,874 | |
Sale of subsidiary shares to noncontrolling interests | 226 | 0 | (65) | 24 | 0 | 0 | (41) | 267 | |
Repurchase of subsidiary shares | (17) | 0 | 0 | 0 | 0 | 0 | 0 | (17) | |
Comprehensive income (loss): | |||||||||
Net income (loss) | (173) | 0 | 0 | 0 | (323) | 0 | (323) | 150 | |
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (728) | 0 | 0 | (708) | 0 | 0 | (708) | (20) | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Derivatives qualifying as hedges | 60 | [1] | 0 | 0 | 60 | 0 | 0 | 60 | 0 |
Foreign currency translation and other adjustments | (619) | 0 | 0 | (344) | 0 | 0 | (344) | (275) | |
Total comprehensive income (loss) | (1,460) | (1,315) | (145) | ||||||
Dividends to noncontrolling interests | (145) | 0 | 0 | 0 | 0 | 0 | 0 | (145) | |
Stock-based compensation expense and exercises and other | 15 | 0 | 12 | 0 | 0 | 0 | 12 | 3 | |
Balances at Sep. 30, 2015 | $ 15,416 | $ 1 | $ 11,944 | $ 3,478 | $ 856 | $ (2,700) | $ 13,579 | $ 1,837 | |
[1] | See note 5 for additional information. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (173) | $ (340) |
Less (income) loss from discontinued operations, net of taxes | 334 | (19) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (80) | (97) |
Net investment losses (gains) | 59 | 11 |
Charges assessed to policyholders | (586) | (580) |
Acquisition costs deferred | (226) | (282) |
Amortization of deferred acquisition costs and intangibles | 759 | 325 |
Goodwill impairment | 0 | 550 |
Deferred income taxes | (117) | (186) |
Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments | (247) | 110 |
Stock-based compensation expense | 14 | 19 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (133) | (175) |
Insurance reserves | 1,270 | 1,260 |
Current tax liabilities | (71) | (185) |
Other liabilities, policy and contract claims and other policy-related balances | 352 | 731 |
Cash from operating activities-discontinued operations | 3 | (2) |
Net cash from operating activities | 1,158 | 1,140 |
Cash flows from investing activities: | ||
Fixed maturity securities | 3,389 | 3,638 |
Commercial mortgage loans | 640 | 528 |
Restricted commercial mortgage loans related to securitization entities | 27 | 24 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 1,333 | 1,651 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | (6,836) | (7,202) |
Commercial mortgage loans | (678) | (709) |
Other invested assets, net | (39) | 104 |
Policy loans, net | 23 | 11 |
Cash from investing activities-discontinued operations | (22) | (48) |
Net cash from investing activities | (2,163) | (2,003) |
Cash flows from financing activities: | ||
Deposits to universal life and investment contracts | 1,693 | 2,201 |
Withdrawals from universal life and investment contracts | (1,677) | (1,950) |
Redemption of non-recourse funding obligations | (45) | (28) |
Proceeds from issuance of long-term debt | 150 | 144 |
Repayment and repurchase of long-term debt | (120) | (621) |
Repayment of borrowings related to securitization entities | (26) | (24) |
Proceeds from sale of subsidiary shares to noncontrolling interests | 226 | 517 |
Repurchase of subsidiary shares | (17) | 0 |
Dividends paid to noncontrolling interests | (145) | (46) |
Other, net | (25) | (19) |
Cash from financing activities-discontinued operations | (33) | (25) |
Net cash from financing activities | (19) | 149 |
Effect of exchange rate changes on cash and cash equivalents (includes $(8) and $(3) related to discontinued operations | (86) | (23) |
Net change in cash and cash equivalents | (1,110) | (737) |
Cash and cash equivalents at beginning of period | 4,918 | 4,214 |
Cash and cash equivalents at end of period | 3,808 | 3,477 |
Less cash and cash equivalents of discontinued operations at end of period | 142 | 193 |
Cash and cash equivalents of continuing operations at end of period | $ 3,666 | $ 3,284 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Effect of exchange rate changes on cash and cash equivalents related to discontinued operations | $ (8) | $ (3) |
Formation of Genworth and Basis
Formation of Genworth and Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Formation of Genworth and Basis of Presentation | (1) Formation of Genworth and Basis of Presentation Genworth Holdings, Inc. (“Genworth Holdings”) (formerly known as Genworth Financial, Inc.) was incorporated in Delaware in 2003 in preparation for an initial public offering of Genworth common stock, which was completed on May 28, 2004. On April 1, 2013, Genworth Holdings completed a holding company reorganization pursuant to which Genworth Holdings became a direct, 100% owned subsidiary of a new public holding company that it had formed. The new public holding company was incorporated in Delaware on December 5, 2012, in connection with the reorganization, under the name Sub XLVI, Inc., and was renamed Genworth Financial, Inc. (“Genworth Financial”) upon the completion of the reorganization. The accompanying unaudited condensed financial statements include on a consolidated basis the accounts of Genworth Financial and the affiliate companies in which it holds a majority voting interest or where it is the primary beneficiary of a variable interest entity (“VIE”). All intercompany accounts and transactions have been eliminated in consolidation. References to “Genworth,” the “Company,” “we” or “our” in the accompanying condensed consolidated financial statements and these notes thereto are, unless the context otherwise requires, to Genworth Financial on a consolidated basis. We have the following operating segments: • International Mortgage Insurance. • U.S. Mortgage Insurance. • U.S. Life Insurance. • Runoff. We also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other non-core businesses that are managed outside of our operating segments, including discontinued operations. In June 2015, our Board of Directors approved a transaction to sell our lifestyle protection insurance business, which had previously been designated as a non-core business. As the held-for-sale criteria were satisfied during the second quarter of 2015, we recorded an estimated loss to reduce the carrying value of the business to the fair value less pension settlement costs and closing costs. Our lifestyle protection insurance business, previously the only business in the International Protection segment, has been reported as discontinued operations and its financial position, results of operations and cash flows are separately reported for all periods presented. All prior periods reflected herein have been re-presented on this basis. See note 15 for additional information. The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements include all adjustments (including normal recurring adjustments) considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results reported in these unaudited condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes contained in our 2014 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation. We have revised our condensed consolidated statement of cash flows previously reported in our Quarterly Report on Form 10-Q for the nine months ended September 30, 2014 to reflect a correction related to the calculation of the change in reinsurance recoverable that impacted the lines “insurance reserves” and “other liabilities, policy and contract claims and other policy-related balances.” As a result, the change in insurance reserves decreased by $514 million and the change in other liabilities, policy and contract claims and other policy-related balances increased by $514 million. The revisions had no impact on net cash flows from operating activities or the total change in cash and cash equivalents within our condensed consolidated statement of cash flows. Additionally, there was no impact on our unaudited condensed consolidated balance sheet or unaudited condensed consolidated statement of income. |
Accounting Changes
Accounting Changes | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes | (2) Accounting Changes a) Accounting Pronouncements Recently Adopted On January 1, 2015, we early adopted new accounting guidance related to measuring the financial assets and financial liabilities of a consolidated collateralized financing entity. The guidance addresses the accounting for the measurement difference between the fair value of financial assets and the fair value of financial liabilities of a collateralized financing entity. The new guidance provides an alternative whereby a reporting entity could measure the financial assets and financial liabilities of the collateralized financing entity in its consolidated financial statements using the more observable of the fair values. There was no impact on our consolidated financial statements. On January 1, 2015, we adopted new accounting guidance related to the accounting for repurchase-to-maturity transactions and repurchase financings. The new guidance changed the accounting for repurchase-to-maturity transactions and repurchase financing such that they were consistent with secured borrowing accounting. In addition, the guidance required new disclosures for all repurchase agreements and securities lending transactions which were effective beginning in the second quarter of 2015. We do not have repurchase-to-maturity transactions, but have repurchase agreements and securities lending transactions that are subject to additional disclosures. This new guidance did not have an impact on our consolidated financial statements but did impact our disclosures. On January 1, 2015, we adopted new accounting guidance related to the accounting for investments in affordable housing projects that qualify for the low-income housing tax credit. The new guidance permits reporting entities to make an accounting policy election to account for investments in qualified affordable housing projects by amortizing the initial cost of the investment in proportion to the tax benefits received and recognize the net investment performance as a component of income tax expense (called the proportional amortization method) if certain conditions are met. The new guidance requires use of the equity method or cost method for investments in qualified affordable housing projects not accounted for using the proportional amortization method. The adoption of this new guidance did not have a material impact on our consolidated financial statements. On January 1, 2015, we early adopted new accounting guidance related to the accounting for share-based payment awards when the terms of an award provide that a performance target can be achieved after the requisite service period. The guidance requires that such performance targets should not be reflected in estimating the grant-date fair value of an award, and that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. We have a performance stock unit plan where awards for employees who are retirement eligible can vest on a pro-rata basis upon retirement even if retirement occurs before the performance target is achieved. There was no impact on our consolidated financial statements. b) Accounting Pronouncement Not Yet Adopted In May 2015, the Financial Accounting Standards Board (the “FASB”) issued new disclosure requirements for short-duration insurance contracts. The new guidance requires additional disclosures on short-duration policy and contract claims liabilities for incurred and paid claims development, unpaid claims and claims frequency. These new disclosures will be effective for us on December 31, 2016 with early adoption permitted and will only impact our mortgage insurance disclosures. In April 2015, the FASB issued new guidance related to the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB issued new guidance further clarifying that companies can make the election to present debt issuance costs related to revolving credit facilities as either an asset or as a direct deduction from the carrying amount of that debt liability. The new guidance related to debt issuance costs are both effective for us on January 1, 2016 and are required to be applied on a retrospective basis. We plan to early adopt this new guidance as of December 31, 2015 and expect approximately $45 million presented in other assets to be deducted from debt liabilities in our consolidated financial statements upon adoption. In February 2015, the FASB issued new accounting guidance related to consolidation. This guidance primarily impacts limited partnerships and similar legal entities, evaluation of fees paid to a decision maker as a variable interest, the effect of fee arrangements and related parties on the primary beneficiary determination and certain investment funds. This guidance is effective for us on January 1, 2016, with early adoption permitted. While we are in the process of determining the impact of this new guidance, we do not believe the impact will be significant to our consolidated financial statements. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (Loss) Per Share | (3) Earnings (Loss) Per Share Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated: Three months ended Nine months ended (Amounts in millions, except per share amounts) 2015 2014 2015 2014 Weighted-average common shares used in basic earnings (loss) per common share calculations 497.4 496.6 497.3 496.4 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights — — 1.7 — Weighted-average common shares used in diluted earnings (loss) per common share calculations (1) 497.4 496.6 499.0 496.4 Income (loss) from continuing operations: Income (loss) from continuing operations $ (217 ) $ (793 ) $ 161 $ (359 ) Less: income from continuing operations attributable to noncontrolling interests 46 57 150 144 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ (263 ) $ (850 ) $ 11 $ (503 ) Basic per common share $ (0.53 ) $ (1.71 ) $ 0.02 $ (1.01 ) Diluted per common share $ (0.53 ) $ (1.71 ) $ 0.02 $ (1.01 ) Income (loss) from discontinued operations: Income (loss) from discontinued operations, net of taxes $ (21 ) $ 6 $ (334 ) $ 19 Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — — — Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ (21 ) $ 6 $ (334 ) $ 19 Basic per common share $ (0.04 ) $ 0.01 $ (0.67 ) $ 0.04 Diluted per common share $ (0.04 ) $ 0.01 $ (0.67 ) $ 0.04 Net income (loss): Income (loss) from continuing operations $ (217 ) $ (793 ) $ 161 $ (359 ) Income (loss) from discontinued operations, net of taxes (21 ) 6 (334 ) 19 Net loss (238 ) (787 ) (173 ) (340 ) Less: net income attributable to noncontrolling interests 46 57 150 144 Net loss available to Genworth Financial, Inc.’s common stockholders $ (284 ) $ (844 ) $ (323 ) $ (484 ) Basic per common share $ (0.57 ) $ (1.70 ) $ (0.65 ) $ (0.98 ) Diluted per common share $ (0.57 ) $ (1.70 ) $ (0.65 ) $ (0.98 ) (1) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders and net loss available to Genworth Financial, Inc.’s common stockholders for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.3 million, 5.4 million and 6.4 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders and net loss available to Genworth Financial, Inc.’s common stockholders for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, dilutive potential weighted-average common shares outstanding would have been 498.7 million, 502.0 million and 502.8 million, respectively. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments | (4) Investments (a) Net Investment Income Sources of net investment income were as follows for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Fixed maturity securities—taxable $ 647 $ 643 $ 1,924 $ 1,940 Fixed maturity securities—non-taxable 3 3 9 9 Commercial mortgage loans 84 82 252 246 Restricted commercial mortgage loans related to securitization entities 3 3 10 11 Equity securities 3 3 11 11 Other invested assets 26 27 103 81 Restricted other invested assets related to securitization entities 1 1 3 3 Policy loans 33 32 101 95 Cash, cash equivalents and short-term investments 3 7 10 19 Gross investment income before expenses and fees 803 801 2,423 2,415 Expenses and fees (20 ) (23 ) (66 ) (70 ) Net investment income $ 783 $ 778 $ 2,357 $ 2,345 (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Available-for-sale securities: Realized gains $ 14 $ 17 $ 49 $ 61 Realized losses (18 ) (5 ) (36 ) (42 ) Net realized gains (losses) on available-for-sale securities (4 ) 12 13 19 Impairments: Total other-than-temporary impairments (10 ) (13 ) (13 ) (16 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) 1 7 1 7 Net other-than-temporary impairments (9 ) (6 ) (12 ) (9 ) Trading securities 12 4 2 24 Commercial mortgage loans 1 3 5 9 Net gains (losses) related to securitization entities (1 ) (1 ) 9 14 Derivative instruments (1) (53 ) (38 ) (79 ) (66 ) Contingent consideration adjustment 2 (1 ) 2 (1 ) Other 1 — 1 (1 ) Net investment gains (losses) $ (51 ) $ (27 ) $ (59 ) $ (11 ) (1) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). We generally intend to hold securities in unrealized loss positions until they recover. However, from time to time, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, we sell securities in the ordinary course of managing our portfolio to meet diversification, credit quality, yield and liquidity requirements. If a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we determined that we have the intent to sell the securities or it is more likely than not that we will be required to sell the securities prior to recovery. The aggregate fair value of securities sold at a loss during the three months ended September 30, 2015 and 2014 was $186 million and $215 million, respectively, which was approximately 93% and 98%, respectively, of book value. The aggregate fair value of securities sold at a loss during the nine months ended September 30, 2015 and 2014 was $470 million and $721 million, respectively, which was approximately 94% and 95%, respectively, of book value. The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (loss) (“OCI”) as of and for the periods indicated: As of or for the As of or for the (Amounts in millions) 2015 2014 2015 2014 Beginning balance $ 75 $ 95 $ 83 $ 101 Additions: Other-than-temporary impairments not previously recognized — 1 — 2 Reductions: Securities sold, paid down or disposed (9 ) (7 ) (17 ) (14 ) Ending balance $ 66 $ 89 $ 66 $ 89 (c) Unrealized Investment Gains and Losses Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of the dates indicated: (Amounts in millions) September 30, 2015 December 31, 2014 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 4,213 $ 5,560 Equity securities (17 ) 32 Other invested assets — (2 ) Subtotal 4,196 5,590 Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (1,386 ) (1,656 ) Income taxes, net (976 ) (1,372 ) Net unrealized investment gains (losses) 1,834 2,562 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 103 109 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,731 $ 2,453 The change in net unrealized gains (losses) on available-for-sale investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the periods indicated: As of or for the (Amounts in millions) 2015 2014 Beginning balance $ 1,628 $ 2,128 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 70 (225 ) Adjustment to deferred acquisition costs 32 35 Adjustment to present value of future profits (5 ) 36 Adjustment to sales inducements 9 9 Adjustment to benefit reserves 23 49 Provision for income taxes (50 ) 33 Change in unrealized gains (losses) on investment securities 79 (63 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $(5) and $2 8 (4 ) Change in net unrealized investment gains (losses) 87 (67 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (16 ) (6 ) Ending balance $ 1,731 $ 2,067 As of or for the (Amounts in millions) 2015 2014 Beginning balance $ 2,453 $ 926 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (1,393 ) 2,399 Adjustment to deferred acquisition costs 102 (160 ) Adjustment to present value of future profits 45 (55 ) Adjustment to sales inducements 12 (19 ) Adjustment to benefit reserves 111 (339 ) Provision for income taxes 396 (640 ) Change in unrealized gains (losses) on investment securities (727 ) 1,186 Reclassification adjustments to net investment (gains) losses, net of taxes of $— and $4 (1 ) (7 ) Change in net unrealized investment gains (losses) (728 ) 1,179 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (6 ) 38 Ending balance $ 1,731 $ 2,067 (d) Fixed Maturity and Equity Securities As of September 30, 2015, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,065 $ 855 $ — $ (7 ) $ — $ 5,913 State and political subdivisions 2,280 195 — (27 ) — 2,448 Non-U.S. government 1,836 120 — (4 ) — 1,952 U.S. corporate: Utilities 3,398 420 — (18 ) — 3,800 Energy 2,664 178 — (71 ) — 2,771 Finance and insurance 5,422 447 17 (37 ) — 5,849 Consumer—non-cyclical 3,742 423 — (23 ) — 4,142 Technology and communications 2,292 144 — (28 ) — 2,408 Industrial 1,254 75 — (28 ) — 1,301 Capital goods 1,873 215 — (11 ) — 2,077 Consumer—cyclical 1,732 114 — (13 ) — 1,833 Transportation 1,012 89 — (10 ) — 1,091 Other 399 27 — (3 ) — 423 Total U.S. corporate 23,788 2,132 17 (242 ) — 25,695 Non-U.S. corporate: Utilities 861 42 — (6 ) — 897 Energy 1,856 105 — (70 ) — 1,891 Finance and insurance 2,709 173 1 (6 ) — 2,877 Consumer—non-cyclical 740 30 — (15 ) — 755 Technology and communications 975 43 — (22 ) — 996 Industrial 1,129 34 — (67 ) — 1,096 Capital goods 600 25 — (15 ) — 610 Consumer—cyclical 561 10 — (5 ) — 566 Transportation 556 59 — (4 ) — 611 Other 2,706 218 — (24 ) — 2,900 Total non-U.S. corporate 12,693 739 1 (234 ) — 13,199 Residential mortgage-backed 4,728 389 11 (10 ) — 5,118 Commercial mortgage-backed 2,464 126 4 (7 ) — 2,587 Other asset-backed 3,953 25 1 (40 ) — 3,939 Total fixed maturity securities 56,807 4,581 34 (571 ) — 60,851 Equity securities 300 5 — (32 ) — 273 Total available-for-sale securities $ 57,107 $ 4,586 $ 34 $ (603 ) $ — $ 61,124 As of December 31, 2014, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,006 $ 995 $ — $ (1 ) $ — $ 6,000 State and political subdivisions 2,013 236 — (27 ) — 2,222 Non-U.S. government 1,778 144 — (2 ) — 1,920 U.S. corporate: Utilities 3,292 577 — (5 ) — 3,864 Energy 2,498 265 — (21 ) — 2,742 Finance and insurance 5,109 537 20 (13 ) — 5,653 Consumer—non-cyclical 3,489 538 — (8 ) — 4,019 Technology and communications 2,112 217 — (4 ) — 2,325 Industrial 1,195 100 — (8 ) — 1,287 Capital goods 1,748 263 — (5 ) — 2,006 Consumer—cyclical 1,750 158 — (8 ) — 1,900 Transportation 929 114 — (4 ) — 1,039 Other 370 31 — — — 401 Total U.S. corporate 22,492 2,800 20 (76 ) — 25,236 Non-U.S. corporate: Utilities 867 48 — (2 ) — 913 Energy 1,925 163 — (38 ) — 2,050 Finance and insurance 2,812 203 — (3 ) — 3,012 Consumer—non-cyclical 780 41 — (9 ) — 812 Technology and communications 999 71 — (4 ) — 1,066 Industrial 1,178 65 — (18 ) — 1,225 Capital goods 605 31 — (5 ) — 631 Consumer—cyclical 535 14 — — — 549 Transportation 525 70 — (1 ) — 594 Other 3,169 257 — (15 ) — 3,411 Total non-U.S. corporate 13,395 963 — (95 ) — 14,263 Residential mortgage-backed 4,871 362 13 (17 ) (1 ) 5,228 Commercial mortgage-backed 2,564 143 4 (9 ) — 2,702 Other asset-backed 3,735 23 1 (54 ) — 3,705 Total fixed maturity securities 55,854 5,666 38 (281 ) (1 ) 61,276 Equity securities 250 32 — (7 ) — 275 Total available-for-sale securities $ 56,104 $ 5,698 $ 38 $ (288 ) $ (1 ) $ 61,551 The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of September 30, 2015: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 406 $ (7 ) 10 $ — $ — — $ 406 $ (7 ) 10 State and political subdivisions 334 (10 ) 54 155 (17 ) 16 489 (27 ) 70 Non-U.S. government 148 (4 ) 33 — — — 148 (4 ) 33 U.S. corporate 4,313 (198 ) 632 429 (44 ) 69 4,742 (242 ) 701 Non-U.S. corporate 2,643 (165 ) 371 376 (69 ) 56 3,019 (234 ) 427 Residential mortgage-backed 396 (5 ) 37 109 (5 ) 38 505 (10 ) 75 Commercial mortgage-backed 320 (6 ) 54 50 (1 ) 14 370 (7 ) 68 Other asset-backed 870 (5 ) 165 330 (35 ) 55 1,200 (40 ) 220 Subtotal, fixed maturity securities 9,430 (400 ) 1,356 1,449 (171 ) 248 10,879 (571 ) 1,604 Equity securities 182 (32 ) 65 — — — 182 (32 ) 65 Total for securities in an unrealized loss position $ 9,612 $ (432 ) 1,421 $ 1,449 $ (171 ) 248 $ 11,061 $ (603 ) 1,669 % Below cost—fixed maturity securities: <20% Below cost $ 9,298 $ (340 ) 1,329 $ 1,238 $ (78 ) 219 $ 10,536 $ (418 ) 1,548 20%-50% Below cost 127 (50 ) 25 206 (86 ) 27 333 (136 ) 52 >50% Below cost 5 (10 ) 2 5 (7 ) 2 10 (17 ) 4 Total fixed maturity securities 9,430 (400 ) 1,356 1,449 (171 ) 248 10,879 (571 ) 1,604 % Below cost—equity securities: <20% Below cost 106 (9 ) 41 — — — 106 (9 ) 41 20%-50% Below cost 76 (23 ) 24 — — — 76 (23 ) 24 Total equity securities 182 (32 ) 65 — — — 182 (32 ) 65 Total for securities in an unrealized loss position $ 9,612 $ (432 ) 1,421 $ 1,449 $ (171 ) 248 $ 11,061 $ (603 ) 1,669 Investment grade $ 8,632 $ (332 ) 1,248 $ 1,194 $ (105 ) 199 $ 9,826 $ (437 ) 1,447 Below investment grade 980 (100 ) 173 255 (66 ) 49 1,235 (166 ) 222 Total for securities in an unrealized loss position $ 9,612 $ (432 ) 1,421 $ 1,449 $ (171 ) 248 $ 11,061 $ (603 ) 1,669 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of September 30, 2015: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 329 $ (17 ) 51 $ 12 $ (1 ) 6 $ 341 $ (18 ) 57 Energy 808 (58 ) 124 106 (13 ) 15 914 (71 ) 139 Finance and insurance 903 (26 ) 125 102 (11 ) 15 1,005 (37 ) 140 Consumer—non-cyclical 522 (19 ) 74 56 (4 ) 11 578 (23 ) 85 Technology and communications 604 (28 ) 89 — — — 604 (28 ) 89 Industrial 355 (19 ) 50 42 (9 ) 8 397 (28 ) 58 Capital goods 256 (8 ) 42 25 (3 ) 4 281 (11 ) 46 Consumer—cyclical 316 (11 ) 48 64 (2 ) 8 380 (13 ) 56 Transportation 166 (9 ) 24 22 (1 ) 2 188 (10 ) 26 Other 54 (3 ) 5 — — — 54 (3 ) 5 Subtotal, U.S. corporate securities 4,313 (198 ) 632 429 (44 ) 69 4,742 (242 ) 701 Non-U.S. corporate: Utilities 111 (4 ) 17 27 (2 ) 3 138 (6 ) 20 Energy 554 (55 ) 68 104 (15 ) 13 658 (70 ) 81 Finance and insurance 441 (6 ) 65 30 — 7 471 (6 ) 72 Consumer—non-cyclical 214 (12 ) 24 32 (3 ) 3 246 (15 ) 27 Technology and communications 255 (10 ) 36 28 (12 ) 6 283 (22 ) 42 Industrial 442 (42 ) 62 104 (25 ) 15 546 (67 ) 77 Capital goods 137 (10 ) 25 7 (5 ) 3 144 (15 ) 28 Consumer—cyclical 170 (5 ) 21 — — — 170 (5 ) 21 Transportation 105 (4 ) 15 — — — 105 (4 ) 15 Other 214 (17 ) 38 44 (7 ) 6 258 (24 ) 44 Subtotal, non-U.S. corporate securities 2,643 (165 ) 371 376 (69 ) 56 3,019 (234 ) 427 Total for corporate securities in an unrealized loss position $ 6,956 $ (363 ) 1,003 $ 805 $ (113 ) 125 $ 7,761 $ (476 ) 1,128 As indicated in the tables above, the majority of the securities in a continuous unrealized loss position for less than 12 months were investment grade and less than 20% below cost. These unrealized losses were primarily attributable to the increase in interest rates, mostly concentrated in our corporate securities. For securities that have been in a continuous unrealized loss position for less than 12 months, the average fair value percentage below cost was approximately 5% as of September 30, 2015. Fixed Maturity Securities In A Continuous Unrealized Loss Position For 12 Months Or More Of the $78 million of unrealized losses on fixed maturity securities in a continuous unrealized loss for 12 months or more that were less than 20% below cost, the weighted-average rating was “BBB” and approximately 70% of the unrealized losses were related to investment grade securities as of September 30, 2015. These unrealized losses were predominantly attributable to corporate securities and municipal securities including fixed rate securities purchased in a lower rate environment and variable rate securities purchased in a higher rate and lower spread environment. The average fair value percentage below cost for these securities was approximately 6% as of September 30, 2015. See below for additional discussion related to fixed maturity securities that have been in a continuous unrealized loss position for 12 months or more with a fair value that was more than 20% below cost. The following tables present the concentration of gross unrealized losses and fair values of fixed maturity securities that were more than 20% below cost and in a continuous unrealized loss position for 12 months or more by asset class as of September 30, 2015: Investment Grade 20% to 50% Greater than 50% (Dollar amounts in millions) Fair Gross % of total Number of Fair Gross % of total Number of Fixed maturity securities: State and political subdivisions $ 9 $ (4 ) 1 % 1 $ — $ — — % — U.S. corporate—industrial 18 (5 ) 1 2 — — — — Non-U.S. corporate: Utilities 4 (1 ) — 1 — — — — Energy 22 (6 ) 1 2 — — — — Industrial 24 (7 ) 1 3 — — — — Capital goods 3 (3 ) 1 1 — — — — Total non-U.S. corporate 53 (17 ) 3 7 — — — — Structured securities: Other asset-backed 67 (25 ) 4 4 — — — — Total structured securities 67 (25 ) 4 4 — — — — Total $ 147 $ (51 ) 9 % 14 $ — $ — — % — Below Investment Grade 20% to 50% Greater than 50% (Dollar amounts in millions) Fair Gross % of total Number of Fair Gross % of total Number of Fixed maturity securities: U.S. corporate: Energy $ 4 $ (1 ) — % 1 $ — $ — — % — Finance and insurance 7 (3 ) 1 1 — — — — Consumer—non-cyclical 4 (1 ) — 1 — — — — Industrial 4 (2 ) — 1 — — — — Total U.S. corporate 19 (7 ) 1 4 — — — — Non-U.S. corporate: Energy 4 (1 ) — 1 1 (2 ) — 1 Technology and communications 7 (7 ) 1 2 4 (5 ) — 1 Industrial 14 (11 ) 2 3 — — — — Capital goods 3 (2 ) 1 1 — — — — Other 4 (1 ) — 1 — — — — Total non-U.S. corporate 32 (22 ) 4 8 5 (7 ) — 2 Structured securities: Other asset-backed 8 (6 ) 1 1 — — — — Total structured securities 8 (6 ) 1 1 — — — — Total $ 59 $ (35 ) 6 % 13 $ 5 $ (7 ) — % 2 For all securities in an unrealized loss position, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost. See below for further discussion of gross unrealized losses by asset class. Non-U.S. corporate As indicated above, $46 million of gross unrealized losses were related to non-U.S. corporate fixed maturity securities that have been in an unrealized loss position for more than 12 months and were more than 20% below cost. Of the total unrealized losses for non-U.S. corporate fixed maturity securities, $18 million, or 39%, related to the industrial sector. Reduced overseas demand for metals, particularly copper and oil, has led to a decline in commodities pricing, adversely impacting the fair value of these securities. We expect that our investments in non-U.S. corporate securities will continue to perform in accordance with our expectations about the amount and timing of estimated cash flows. Although we do not anticipate such events, it is reasonably possible that issuers of our investments in non-U.S. corporate securities may perform worse than current expectations. Such events may lead us to recognize write-downs within our portfolio of non-U.S. corporate securities in the future. Structured Securities Of the $31 million of unrealized losses related to structured securities that have been in an unrealized loss position for 12 months or more and were more than 20% below cost, none related to other-than-temporarily impaired securities where the unrealized losses represented the portion of the other-than-temporary impairment recognized in OCI. The extent and duration of the unrealized loss position on our structured securities was primarily due to credit spreads that have widened since acquisition. Additionally, the fair value of certain structured securities has been impacted from high risk premiums being incorporated into the valuation as a result of the amount of potential losses that may be absorbed by the security in the event of additional deterioration in the U.S. economy. While we consider the length of time each security had been in an unrealized loss position, the extent of the unrealized loss position and any significant declines in fair value subsequent to the balance sheet date in our evaluation of impairment for each of these individual securities, the primary factor in our evaluation of impairment is the expected performance for each of these securities. Our evaluation of expected performance is based on the historical performance of the associated securitization trust as well as the historical performance of the underlying collateral. Our examination of the historical performance of the securitization trust included consideration of the following factors for each class of securities issued by the trust: (i) the payment history, including failure to make scheduled payments; (ii) current payment status; (iii) current and historical outstanding balances; (iv) current levels of subordination and losses incurred to date; and (v) characteristics of the underlying collateral. Our examination of the historical performance of the underlying collateral included: (i) historical default rates, delinquency rates, voluntary and involuntary prepayments and severity of losses, including recent trends in this information; (ii) current payment status; (iii) loan to collateral value ratios, as applicable; (iv) vintage; and (v) other underlying characteristics such as current financial condition. We use our assessment of the historical performance of both the securitization trust and the underlying collateral for each security, along with third-party sources, when available, to develop our best estimate of cash flows expected to be collected. These estimates reflect projections for future delinquencies, prepayments, defaults and losses for the assets that collateralize the securitization trust and are used to determine the expected cash flows for our security, based on the payment structure of the trust. Our projection of expected cash flows is primarily based on the expected performance of the underlying assets that collateralize the securitization trust and is not directly impacted by the rating of our security. While we consider the rating of the security as an indicator of the financial condition of the issuer, this factor does not have a significant impact on our expected cash flows for each security. In limited circumstances, our expected cash flows include expected payments from reliable financial guarantors where we believe the financial guarantor will have sufficient assets to pay claims under the financial guarantee when the cash flows from the securitization trust are not sufficient to make scheduled payments. We then discount the expected cash flows using the effective yield of each security to determine the present value of expected cash flows. Based on this evaluation, the present value of expected cash flows was greater than or equal to the amortized cost for each security. Accordingly, we determined that the unrealized losses on each of our structured securities represented temporary impairments as of September 30, 2015. Despite the considerable analysis and rigor employed on our structured securities, it is reasonably possible that the underlying collateral of these investments may perform worse than current market expectations. Such events may lead to adverse changes in cash flows on our holdings of structured securities and future write-downs within our portfolio of structured securities. The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2014: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair value Gross (1) Number of Fair value Gross (1) Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ — $ — — $ 75 $ (1 ) 10 $ 75 $ (1 ) 10 State and political subdivisions 9 — 7 267 (27 ) 45 276 (27 ) 52 Non-U.S. government 64 (1 ) 15 22 (1 ) 4 86 (2 ) 19 U.S. corporate 1,646 (33 ) 233 1,201 (43 ) 174 2,847 (76 ) 407 Non-U.S. corporate 1,529 (67 ) 230 504 (28 ) 67 2,033 (95 ) 297 Residential mortgage-backed 180 (1 ) 24 249 (17 ) 87 429 (18 ) 111 Commercial mortgage-backed 163 — 21 362 (9 ) 49 525 (9 ) 70 Other asset-backed 1,551 (12 ) 215 487 (42 ) 55 2,038 (54 ) 270 Subtotal, fixed maturity securities 5,142 (114 ) 745 3,167 (168 ) 491 8,309 (282 ) 1,236 Equity securities 30 (3 ) 46 48 (4 ) 6 78 (7 ) 52 Total for securities in an unrealized loss position $ 5,172 $ (117 ) 791 $ 3,215 $ (172 ) 497 $ 8,387 $ (289 ) 1,288 % Below cost—fixed maturity securities: <20% Below cost $ 5,105 $ (103 ) 741 $ 3,036 $ (114 ) 470 $ 8,141 $ (217 ) 1,211 20%-50% Below cost 37 (11 ) 4 131 (53 ) 15 168 (64 ) 19 >50% Below cost — — — — (1 ) 6 — (1 ) 6 Total fixed maturity securities 5,142 (114 ) 745 3,167 (168 ) 491 8,309 (282 ) 1,236 % Below cost—equity securities: <20% Below cost 26 (2 ) 40 48 (4 ) 6 74 (6 ) 46 20%-50% Below cost 4 (1 ) 6 — — — 4 (1 ) 6 Total equity securities 30 (3 ) 46 48 (4 ) 6 78 (7 ) 52 Total for securities in an unrealized loss position $ 5,172 $ (117 ) 791 $ 3,215 $ (172 ) 497 $ 8,387 $ (289 ) 1,288 Investment grade $ 4,581 $ (75 ) 664 $ 2,918 $ (145 ) 424 $ 7,499 $ (220 ) 1,088 Below investment grade (2) 591 (42 ) 127 297 (27 ) 73 888 (69 ) 200 Total for securities in an unrealized loss position $ 5,172 $ (117 ) 791 $ 3,215 $ (172 ) 497 $ 8,387 $ (289 ) 1,288 (1) Amounts included $1 million of unrealized losses on other-than-temporarily impaired securities. (2) Amounts that have been in a continuous unrealized loss position for 12 months or more included $1 million of unrealized losses on other-than-temporarily impaired securities. The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2014: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 55 $ — 10 $ 164 $ (5 ) 23 $ 219 $ (5 ) 33 Energy 404 (16 ) 56 96 (5 ) 15 500 (21 ) 71 Finance and insurance 401 (3 ) 57 257 (10 ) 35 658 (13 ) 92 Consumer—non-cyclical 165 (3 ) 21 182 (5 ) 32 347 (8 ) 53 Technology and communications 181 (3 ) 27 97 (1 ) 15 278 (4 ) 42 Industrial 151 (4 ) 21 80 (4 ) 11 231 (8 ) 32 Capital goods 85 — 13 122 (5 ) 18 207 (5 ) 31 Consumer—cyclical 132 (2 ) 17 139 (6 ) 18 271 (8 ) 35 Transportation 52 (2 ) 9 57 (2 ) 6 109 (4 ) 15 Other 20 — 2 7 — 1 27 — 3 Subtotal, U.S. corporate securities 1,646 (33 ) 233 1,201 (43 ) 174 2,847 (76 ) 407 Non-U.S. corporate: Utilities 80 — 14 43 (2 ) 5 123 (2 ) 19 Energy 449 (33 ) 60 58 (5 ) 13 507 (38 ) 73 Finance and insurance 261 (2 ) 41 29 (1 ) 6 290 (3 ) 47 Consumer—non-cyclical 142 (6 ) 13 83 (3 ) 9 225 (9 ) 22 Technology and communications 88 (2 ) 18 81 (2 ) 8 169 (4 ) 26 Industrial 218 (9 ) 31 116 (9 ) 15 334 (18 ) 46 Capital goods 68 (2 ) 10 38 (3 ) 4 106 (5 ) 14 Consumer—cyclical 10 — 3 — — — 10 — 3 Transportation 34 — 7 14 (1 ) 1 48 (1 ) 8 Other 179 (13 ) 33 42 (2 ) 6 221 (15 ) 39 Subtotal, non-U.S. corporate securities 1,529 (67 ) 230 504 (28 ) 67 2,033 (95 ) 297 Total for corporate securities in an unrealized loss position $ 3,175 $ (100 ) 463 $ 1,705 $ (71 ) 241 $ 4,880 $ (171 ) 704 The scheduled maturity distribution of fixed maturity securities as of September 30, 2015 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in millions) Amortized Fair Due one year or less $ 2,135 $ 2,147 Due after one year through five years 10,474 10,950 Due after five years through ten years 11,824 12,155 Due after ten years 21,229 23,955 Subtotal 45,662 49,207 Residential mortgage-backed 4,728 5,118 Commercial mortgage-backed 2,464 2,587 Other asset-backed 3,953 3,939 Total $ 56,807 $ 60,851 As of September 30, 2015, $7,703 million of our investments (excluding mortgage-backed and asset-backed securities) were subject to certain call provisions. As of September 30, 2015, securities issued by finance and insurance, consumer—non-cyclical, utilities and energy industry groups represented approximately 22%, 13%, 12% and 12%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio. This portfolio is widely diversified among various geographic regions in the United States and internationally, and is not dependent on the economic stability of one particular region. As of September 30, 2015, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of stockholders’ equity. (e) Commercial Mortgage Loans Our mortgage loans are collateralized by commercial properties, including multi-family residential buildings. The carrying value of commercial mortgage loans is stated at original cost net of principal payments, amortization and allowance for loan losses. We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated: September 30, December 31, (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,259 37 % $ 2,150 35 % Office 1,594 26 1,643 27 Industrial 1,580 26 1,597 26 Apartments 458 7 494 8 Mixed use/other 260 4 239 4 Subtotal 6,151 100 % 6,123 100 % Unamortized balance of loan origination fees and costs (1 ) (1 ) Allowance for losses (17 ) (22 ) Total $ 6,133 $ 6,100 September 30, December 31, (Amounts in millions) Carrying % of Carrying % of Geographic region: Pacific $ 1,594 26 % $ 1,636 27 % South Atlantic 1,582 26 1,673 27 Middle Atlantic 860 14 826 14 Mountain 588 10 536 9 West North Central 396 6 382 6 East North Central 383 6 397 7 West South Central 295 5 268 4 New England 279 4 264 4 East South Central 174 3 141 2 Subtotal 6,151 100 % 6,123 100 % Unamortized balance of loan origination fees and costs (1 ) (1 ) Allowance for losses (17 ) (22 ) Total $ 6,133 $ 6,100 The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: September 30, 2015 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,259 $ 2,259 Office — — 5 5 1,589 1,594 Industrial — — — — 1,580 1,580 Apartments — — — — 458 458 Mixed use/other — — — — 260 260 Total recorded investment $ — $ — $ 5 $ 5 $ 6,146 $ 6,151 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2014 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,150 $ 2,150 Office — — 6 6 1,637 1,643 Industrial — — 2 2 1,595 1,597 Apartments — — — — 494 494 Mixed use/other — — — — 239 239 Total recorded investment $ — $ — $ 8 $ 8 $ 6,115 $ 6,123 % of total commercial mortgage loans — % — % — % — % 100 % 100 % As of September 30, 2015 and December 31, 2014, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest. We also did not have any commercial mortgage loans that were past due for less than 90 days on non-accrual status as of September 30, 2015 and December 31, 2014. We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of September 30, 2015, our commercial mortgage loans greater than 90 days past due included a loan with appraised values in excess of the recorded investment and the current recorded investment of the loan was expected to be recoverable. During the nine months ended September 30, 2015 and the year ended December 31, 2014, we modified or extended 15 and 28 commercial mortgage loans, respectively, with a total carrying value of $93 million and $254 million, respectively. All of these modifications or extensions were based on current market interest rates, did not result in any forgiveness in the outstanding principal amount owed by the borrower and were not considered troubled debt restructurings. The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Allowance for credit losses: Beginning balance $ 18 $ 27 $ 22 $ 33 Charge-offs (1 ) — (4 ) (1 ) Recoveries — — — — Provision — (3 ) (1 ) (8 ) Ending balance $ 17 $ 24 $ 17 $ 24 Ending allowance for individually impaired loans $ — $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 17 $ 24 $ 17 $ 24 Recorded investment: Ending balance $ 6,151 $ 6,101 $ 6,151 $ 6,101 Ending balance of individually impaired loans $ 19 $ 17 $ 19 $ 17 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,1 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments | (5) Derivative Instruments Our business activities routinely deal with fluctuations in interest rates, equity prices, currency exchange rates and other asset and liability prices. We use derivative instruments to mitigate or reduce certain of these risks. We have established policies for managing each of these risks, including prohibitions on derivatives market-making and other speculative derivatives activities. These policies require the use of derivative instruments in concert with other techniques to reduce or mitigate these risks. While we use derivatives to mitigate or reduce risks, certain derivatives do not meet the accounting requirements to be designated as hedging instruments and are denoted as “derivatives not designated as hedges” in the following disclosures. For derivatives that meet the accounting requirements to be designated as hedges, the following disclosures for these derivatives are denoted as “derivatives designated as hedges,” which include both cash flow and fair value hedges. The following table sets forth our positions in derivative instruments as of the dates indicated: Derivative assets Derivative liabilities Fair value Fair value (Amounts in millions) Balance sheet classification September 30, December 31, Balance sheet classification September 30, December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $ 766 $ 639 Other liabilities $ 41 $ 27 Inflation indexed swaps Other invested assets 2 — Other liabilities 14 42 Foreign currency swaps Other invested assets 8 6 Other liabilities — — Total cash flow hedges 776 645 55 69 Total derivatives designated as hedges 776 645 55 69 Derivatives not designated as hedges Interest rate swaps Other invested assets 480 452 Other liabilities 249 177 Interest rate swaps related to securitization entities Restricted other invested assets — — Other liabilities 30 26 Foreign currency swaps Other invested assets — — Other liabilities 22 7 Credit default swaps Other invested assets 1 4 Other liabilities — — Credit default swaps related to securitization entities Restricted other invested assets — — Other liabilities 10 17 Equity index options Other invested assets 15 17 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets 15 — Other liabilities — 1 Forward bond purchase commitments Other invested assets 13 — Other liabilities — — Other foreign currency contracts Other invested assets 25 14 Other liabilities 34 13 GMWB embedded derivatives Reinsurance recoverable (1) 19 13 Policyholder account balances (2) 390 291 Fixed index annuity embedded derivatives Other assets — — Policyholder account balances (3) 304 276 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (4) 10 7 Total derivatives not designated as hedges 568 500 1,049 815 Total derivatives $ 1,344 $ 1,145 $ 1,104 $ 884 (1) Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities. (2) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (3) Represents the embedded derivatives associated with our fixed index annuity liabilities. (4) Represents the embedded derivatives associated with our indexed universal life liabilities. The fair value of derivative positions presented above was not offset by the respective collateral amounts retained or provided under these agreements. The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for GMWB, fixed index annuity embedded derivatives and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies. The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ September 30, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,961 $ — $ (43 ) $ 11,918 Inflation indexed swaps Notional 571 13 (11 ) 573 Foreign currency swaps Notional 35 — — 35 Total cash flow hedges 12,567 13 (54 ) 12,526 Total derivatives designated as hedges 12,567 13 (54 ) 12,526 Derivatives not designated as hedges Interest rate swaps Notional 5,074 1,850 (893 ) 6,031 Interest rate swaps related to securitization entities Notional 77 — (8 ) 69 Credit default swaps Notional 394 — (250 ) 144 Credit default swaps related to securitization entities Notional 312 — — 312 Equity index options Notional 994 483 (517 ) 960 Financial futures Notional 1,331 4,251 (4,280 ) 1,302 Equity return swaps Notional 108 286 (263 ) 131 Foreign currency swaps Notional 104 37 — 141 Forward bond purchase commitments Notional — 1,140 — 1,140 Other foreign currency contracts Notional 425 1,136 (810 ) 751 Total derivatives not designated as hedges 8,819 9,183 (7,021 ) 10,981 Total derivatives $ 21,386 $ 9,196 $ (7,075 ) $ 23,507 (Number of policies) Measurement December 31, Additions Maturities/ September 30, Derivatives not designated as hedges GMWB embedded derivatives Policies 39,015 — (2,202 ) 36,813 Fixed index annuity embedded derivatives Policies 13,901 2,950 (275 ) 16,576 Indexed universal life embedded derivatives Policies 421 395 (25 ) 791 Cash Flow Hedges Certain derivative instruments are designated as cash flow hedges. The changes in fair value of these instruments are recorded as a component of OCI. We designate and account for the following as cash flow hedges when they have met the effectiveness requirements: (i) various types of interest rate swaps to convert floating rate investments to fixed rate investments; (ii) various types of interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (iii) receive U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments; (iv) forward starting interest rate swaps to hedge against changes in interest rates associated with future fixed rate bond purchases and/or interest income; (v) forward bond purchase commitments to hedge against the variability in the anticipated cash flows required to purchase future fixed rate bonds; and (vi) other instruments to hedge the cash flows of various forecasted transactions. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2015: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain (loss) Interest rate swaps hedging assets $ 344 $ 22 Net investment income $ 4 Net investment gains (losses) Interest rate swaps hedging liabilities (23 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps 32 (5 ) Net investment income 1 Net investment gains (losses) Forward bond purchase commitments — 1 Net investment income — Net investment gains (losses) Total $ 353 $ 18 $ 5 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2014: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain (loss) Interest rate swaps hedging assets $ 151 $ 17 Net investment income $ 2 Net investment gains (losses) Interest rate swaps hedging liabilities (8 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps 20 (3 ) Net investment income — Net investment gains (losses) Foreign currency swaps 2 — Net investment income — Net investment gains (losses) Forward bond purchase commitments 4 — Net investment income — Net investment gains (losses) Total $ 169 $ 14 $ 2 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2015: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain (loss) Interest rate swaps hedging assets $ 135 $ 61 Net investment income $ 1 Net investment gains (losses) Interest rate swaps hedging liabilities (14 ) — Interest expense — Net investment gains (losses) Inflation indexed 29 (2 ) Net investment income 1 Net investment gains (losses) Foreign currency 2 — Net investment income — Net investment gains (losses) Forward bond purchase commitments — 1 Net investment income — Net investment gains (losses) Total $ 152 $ 60 $ 2 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2014: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain (loss) Interest rate swaps hedging assets $ 723 $ 45 Net investment income $ 9 Net investment gains (losses) Interest rate swaps hedging liabilities (42 ) 1 Interest expense — Net investment gains (losses) Inflation indexed (10 ) (11 ) Net investment income — Net investment gains (losses) Foreign currency 2 — Net investment income — Net investment gains (losses) Forward bond purchase commitments 32 — Net investment income — Net investment gains (losses) Total $ 705 $ 35 $ 9 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following tables provide a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated: Three months ended (Amounts in millions) 2015 2014 Derivatives qualifying as effective accounting hedges as of July 1 $ 1,913 $ 1,652 Current period increases (decreases) in fair value, net of deferred taxes of $(124) and $(59) 229 110 Reclassification to net (income) loss, net of deferred taxes of $6 and $5 (12 ) (9 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,130 $ 1,753 Nine months ended (Amounts in millions) 2015 2014 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,070 $ 1,319 Current period increases (decreases) in fair value, net of deferred taxes of $(53) and $(248) 99 457 Reclassification to net (income) loss, net of deferred taxes of $21 and $12 (39 ) (23 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,130 $ 1,753 The total of derivatives designated as cash flow hedges of $2,130 million, net of taxes, recorded in stockholders’ equity as of September 30, 2015 is expected to be reclassified to net income (loss) in the future, concurrently with and primarily offsetting changes in interest expense and interest income on floating rate instruments and interest income on future fixed rate bond purchases. Of this amount, $68 million, net of taxes, is expected to be reclassified to net income (loss) in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2047. There were immaterial amounts reclassified to net income (loss) during the nine months ended September 30, 2015 in connection with forecasted transactions that were no longer considered probable of occurring. Fair Value Hedges Certain derivative instruments are designated as fair value hedges. The changes in fair value of these instruments are recorded in net income (loss). In addition, changes in the fair value attributable to the hedged portion of the underlying instrument are reported in net income (loss). We designate and account for the following as fair value hedges when they have met the effectiveness requirements: (i) interest rate swaps to convert fixed rate liabilities into floating rate liabilities; (ii) cross currency swaps to convert non-U.S. dollar fixed rate liabilities to floating rate U.S. dollar liabilities; and (iii) other instruments to hedge various fair value exposures of investments. There were no pre-tax income (loss) effects of fair value hedges and related hedged items for the three and nine months ended September 30, 2015 and 2014. Derivatives Not Designated As Hedges We also enter into certain non-qualifying derivative instruments such as: (i) interest rate swaps and financial futures to mitigate interest rate risk as part of managing regulatory capital positions; (ii) credit default swaps to enhance yield and reproduce characteristics of investments with similar terms and credit risk; (iii) equity index options, equity return swaps, interest rate swaps and financial futures to mitigate the risks associated with liabilities that have guaranteed minimum benefits, fixed index annuities and indexed universal life; (iv) interest rate swaps where the hedging relationship does not qualify for hedge accounting; (v) credit default swaps to mitigate loss exposure to certain credit risk; (vi) foreign currency swaps, options and forward contracts to mitigate currency risk associated with non-functional currency investments held by certain foreign subsidiaries and future dividends or other cash flows from certain foreign subsidiaries to our holding company; and (vii) equity index options to mitigate certain macroeconomic risks associated with certain foreign subsidiaries. Additionally, we provide GMWBs on certain variable annuities that are required to be bifurcated as embedded derivatives. We also offer fixed index annuity and indexed universal life products and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives. We also have derivatives related to securitization entities where we were required to consolidate the related securitization entity as a result of our involvement in the structure. The counterparties for these derivatives typically only have recourse to the securitization entity. The interest rate swaps used for these entities are typically used to effectively convert the interest payments on the assets of the securitization entity to the same basis as the interest rate on the borrowings issued by the securitization entity. Credit default swaps are utilized in certain securitization entities to enhance the yield payable on the borrowings issued by the securitization entity and also include a settlement feature that allows the securitization entity to provide the par value of assets in the securitization entity for the amount of any losses incurred under the credit default swap. The following tables provide the pre-tax gain (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the periods indicated: Three months ended September 30, Classification of gain (loss) recognized in net income (loss) (Amounts in millions) 2015 2014 Interest rate swaps $ (12 ) $ (3 ) Net investment gains (losses) Interest rate swaps related to securitization entities (5 ) 1 Net investment gains (losses) Credit default swaps related to securitization entities (1 ) (2 ) Net investment gains (losses) Equity index options 6 (1 ) Net investment gains (losses) Financial futures 13 22 Net investment gains (losses) Equity return swaps 11 6 Net investment gains (losses) Other foreign currency contracts 4 5 Net investment gains (losses) Foreign currency swaps (9 ) (4 ) Net investment gains (losses) Forward bond purchase commitments 13 — Net investment gains (losses) GMWB embedded derivatives (117 ) (58 ) Net investment gains (losses) Fixed index annuity embedded derivatives 31 (7 ) Net investment gains (losses) Indexed universal life embedded derivatives 2 — Net investment gains (losses) Total derivatives not designated as hedges $ (64 ) $ (41 ) Nine months ended September 30, Classification of gain (loss) recognized in net income (loss) (Amounts in millions) 2015 2014 Interest rate swaps $ (13 ) $ (8 ) Net investment gains (losses) Interest rate swaps related to securitization entities (5 ) (5 ) Net investment gains (losses) Credit default swaps 1 — Net investment gains (losses) Credit default swaps related to securitization entities 10 16 Net investment gains (losses) Equity index options (11 ) (19 ) Net investment gains (losses) Financial futures (18 ) 66 Net investment gains (losses) Equity return swaps 3 1 Net investment gains (losses) Other foreign currency contracts 10 (6 ) Net investment gains (losses) Foreign currency swaps (17 ) (3 ) Net investment gains (losses) Forward bond purchase commitments 13 — Net investment gains (losses) GMWB embedded derivatives (68 ) (87 ) Net investment gains (losses) Fixed index annuity embedded derivatives 14 (19 ) Net investment gains (losses) Indexed universal life embedded derivatives 5 — Net investment gains (losses) Total derivatives not designated as hedges $ (76 ) $ (64 ) Derivative Counterparty Credit Risk Most of our derivative arrangements with counterparties require the posting of collateral upon meeting certain net exposure thresholds. For derivatives related to securitization entities, there are no arrangements that require either party to provide collateral and the recourse of the derivative counterparty is typically limited to the assets held by the securitization entity and there is no recourse to any entity other than the securitization entity. The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated: September 30, 2015 December 31, 2014 (Amounts in millions) Derivatives (1) Derivatives (2) Net Derivatives (1) Derivatives (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 1,367 $ 385 $ 982 $ 1,157 $ 273 $ 884 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 1,367 385 982 1,157 273 884 Gross amounts not offset in the balance sheet: Financial instruments (3) (300 ) (300 ) — (227 ) (227 ) — Collateral received (827 ) — (827 ) (884 ) — (884 ) Collateral pledged — (252 ) 252 — (49 ) 49 Over collateralization 5 167 (162 ) 1 5 (4 ) Net amount $ 245 $ — $ 245 $ 47 $ 2 $ 45 (1) Included $42 million and $25 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2015 and December 31, 2014, respectively. (2) Included $25 million and $6 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2015 and December 31, 2014, respectively. (3) Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. Except for derivatives related to securitization entities, almost all of our master swap agreements contain credit downgrade provisions that allow either party to assign or terminate derivative transactions if the other party’s long-term unsecured debt rating or financial strength rating is below the limit defined in the applicable agreement. If the downgrade provisions had been triggered as of September 30, 2015 and December 31, 2014, we could have been allowed to claim $245 million and $47 million, respectively, or required to disburse up to $2 million as of December 31, 2014. The chart above excludes embedded derivatives and derivatives related to securitization entities as those derivatives are not subject to master netting arrangements. Credit Derivatives We sell protection under single name credit default swaps and credit default swap index tranches in combination with purchasing securities to replicate characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for both indexed reference entities and single name reference entities follow the Credit Derivatives Physical Settlement Matrix published by the International Swaps and Derivatives Association. Under these terms, credit default triggers are defined as bankruptcy, failure to pay or restructuring, if applicable. Our maximum exposure to credit loss equals the notional value for credit default swaps. In the event of default for credit default swaps, we are typically required to pay the protection holder the full notional value less a recovery rate determined at auction. In addition to the credit derivatives discussed above, we also have credit derivative instruments related to securitization entities that we consolidate. These derivatives represent a customized index of reference entities with specified attachment points for certain derivatives. The credit default triggers are similar to those described above. In the event of default, the securitization entity will provide the counterparty with the par value of assets held in the securitization entity for the amount of incurred loss on the credit default swap. The maximum exposure to loss for the securitization entity is the notional value of the derivatives. Certain losses on these credit default swaps would be absorbed by the third-party noteholders of the securitization entity and the remaining losses on the credit default swaps would be absorbed by our portion of the notes issued by the securitization entity. The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated: September 30, 2015 December 31, 2014 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Investment grade Matures in less than one year $ — $ — $ — $ — $ — $ — Matures after one year through five years 39 — — 39 1 — Total credit default swaps on single name reference entities $ 39 $ — $ — $ 39 $ 1 $ — The following table sets forth our credit default swaps where we sell protection on credit default swap index tranches and the fair values as of the dates indicated: September 30, 2015 December 31, 2014 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Original index tranche attachment/detachment point and maturity: 7% - 15% matures after one year through five years (1) $ 100 $ 1 $ — $ 100 $ 1 $ — 9% - 12% matures in less than one year (2) — — — 250 2 — Total credit default swap index tranches 100 1 — 350 3 — Customized credit default swap index tranches related to securitization entities: Portion backing third-party borrowings maturing 2017 (3) 12 — 1 12 — — Portion backing our interest maturing 2017 (4) 300 — 9 300 — 17 Total customized credit default swap index tranches related to securitization entities 312 — 10 312 — 17 Total credit default swaps on index tranches $ 412 $ 1 $ 10 $ 662 $ 3 $ 17 (1) The current attachment/detachment as of September 30, 2015 and December 31, 2014 was 7% – 15%. (2) The current attachment/detachment as of December 31, 2014 was 9% – 12%. (3) Original notional value was $39 million. (4) Original notional value was $300 million. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value of Financial Instruments | (6) Fair Value of Financial Instruments Assets and liabilities that are reflected in the accompanying condensed consolidated financial statements at fair value are not included in the following disclosure of fair value. Such items include cash and cash equivalents, investment securities, separate accounts, securities held as collateral and derivative instruments. Other financial assets and liabilities—those not carried at fair value—are discussed below. Apart from certain of our borrowings and certain marketable securities, few of the instruments discussed below are actively traded and their fair values must often be determined using models. The fair value estimates are made at a specific point in time, based upon available market information and judgments about the financial instruments, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets. The basis on which we estimate fair value is as follows: Commercial mortgage loans. Restricted commercial mortgage loans. Other invested assets. Long-term borrowings. Non-recourse funding obligations. Borrowings related to securitization entities. Investment contracts. The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated: September 30, 2015 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,133 $ 6,481 $ — $ — $ 6,481 Restricted commercial mortgage loans (1) 175 196 — — 196 Other invested assets (1) 453 459 — 376 83 Liabilities: Long-term borrowings (1) 4,601 4,121 — 3,886 235 Non-recourse funding obligations (1) 1,951 1,417 — — 1,417 Borrowings related to securitization entities (1) 108 116 — 116 — Investment contracts (1) 17,260 18,067 — 5 18,062 Other firm commitments: Commitments to fund limited partnerships 87 — — — — — Ordinary course of business lending commitments 167 — — — — — December 31, 2014 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,100 $ 6,573 $ — $ — $ 6,573 Restricted commercial mortgage loans (1) 201 228 — — 228 Other invested assets (1) 348 359 — 274 85 Liabilities: Long-term borrowings (1) 4,639 4,300 — 4,181 119 Non-recourse funding obligations (1) 1,996 1,438 — — 1,438 Borrowings related to securitization entities (1) 134 146 — 146 — Investment contracts (1) 17,486 18,012 — 7 18,005 Other firm commitments: Commitments to fund limited partnerships 53 — — — — — Ordinary course of business lending commitments 155 — — — — — (1) These financial instruments do not have notional amounts. Recurring Fair Value Measurements We have fixed maturity, equity and trading securities, derivatives, embedded derivatives, securities held as collateral, separate account assets and certain other financial instruments, which are carried at fair value. Below is a description of the valuation techniques and inputs used to determine fair value by class of instrument. Fixed maturity, equity and trading securities The fair value of fixed maturity, equity and trading securities are estimated primarily based on information derived from third-party pricing services (“pricing services”), internal models and/or third-party broker provided prices (“broker quotes”), which use a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information. In general, a market approach is utilized if there is readily available and relevant market activity for an individual security. In certain cases where market information is not available for a specific security but is available for similar securities, a security is valued using that market information for similar securities, which is also a market approach. When market information is not available for a specific security or is available but such information is less relevant or reliable, an income approach or a combination of a market and income approach is utilized. For securities with optionality, such as call or prepayment features (including mortgage-backed or asset-backed securities), an income approach may be used. In addition, a combination of the results from market and income approaches may be used to estimate fair value. These valuation techniques may change from period to period, based on the relevance and availability of market data. We utilize certain third-party data providers when determining fair value. We consider information obtained from pricing services as well as broker quotes in our determination of fair value. Additionally, we utilize internal models to determine the valuation of securities using an income approach where the inputs are based on third-party provided market inputs. While we consider the valuations provided by pricing services and broker quotes to be of high quality, management determines the fair value of our investment securities after considering all relevant and available information. We also use various methods to obtain an understanding of the valuation methodologies and procedures used by third-party data providers to ensure sufficient understanding to evaluate the valuation data received, including an understanding of the assumptions and inputs utilized to determine the appropriate fair value. For pricing services, we analyze the prices provided by our primary pricing services to other readily available pricing services and perform a detailed review of the assumptions and inputs from each pricing service to determine the appropriate fair value when pricing differences exceed certain thresholds. In September 2015, we began evaluating changes in fair value that are greater than 8% each month to further aid in our review of the accuracy of fair value measurements and our understanding of changes in fair value, with more detailed reviews performed by the asset managers responsible for the related asset class associated with the security being reviewed. Prior to September 2015, the percentage change in fair value we used in this evaluation was greater than 10% each month. A pricing committee provides additional oversight and guidance in the evaluation and review of the pricing methodologies used to value our investment portfolio. In general, we first obtain valuations from pricing services. If a price is not supplied by a pricing service, we will typically seek a broker quote for public or private fixed maturity securities. In certain instances, we utilize price caps for broker quoted securities where the estimated market yield results in a valuation that may exceed the amount that we believe would be received in a market transaction. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for identical securities are not readily observable and these securities are not typically valued by pricing services. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For pricing services, we obtain an understanding of the pricing methodologies and procedures for each type of instrument. Additionally, on a monthly basis we review a sample of securities, examining the pricing service’s assumptions to determine if we agree with the service’s derived price. In general, a pricing service does not provide a price for a security if sufficient information is not readily available to determine fair value or if such security is not in the specific sector or class covered by a particular pricing service. Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3. For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction and value all private fixed maturity securities at par that have less than 12 months to maturity. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. To evaluate the reasonableness of the internal model, we review a sample of private fixed maturity securities each month. In that review we compare the modeled prices to the prices of similar public securities in conjunction with analysis on current market indicators. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating and public bond spread as Level 3. In general, increases (decreases) in credit spreads will decrease (increase) the fair value for our fixed maturity securities. For broker quotes, we consider the valuation methodology utilized by the third party and analyze a sample each month to assess reasonableness given then-current market conditions. Additionally, for broker quotes on certain structured securities, we validate prices received against other publicly available pricing sources. Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements. For remaining securities priced using internal models, we determine fair value using an income approach. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3. A summary of the inputs used for our fixed maturity, equity and trading securities based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar. Level 1 measurements Equity securities. Level 2 measurements Fixed maturity securities • U.S. government, agencies and government-sponsored enterprises, state and political subdivisions, non-U.S. government, and all sectors of U.S. corporate and non-U.S. corporate. • Residential mortgage-backed, commercial mortgage-backed and other asset-backed. Equity securities. Level 3 measurements Fixed maturity securities • U.S. government, agencies and government-sponsored enterprises, state and political subdivisions, non-U.S. government, and all sectors of U.S. corporate and non-U.S. corporate. • Residential mortgage-backed, commercial mortgage-backed and other asset-backed. Equity securities. Restricted other invested assets related to securitization entities We have trading securities related to securitization entities that are classified as restricted other invested assets and are carried at fair value. The trading securities represent asset-backed securities. The valuation for trading securities is determined using a market approach and/or an income approach depending on the availability of information. For certain highly rated asset-backed securities, there is observable market information for transactions of the same or similar instruments, which is provided to us by a third-party pricing service and is classified as Level 2. For certain securities that are not actively traded, we determine fair value after considering third-party broker provided prices or discounted expected cash flows using current yields for similar securities and classify these valuations as Level 3. Securities lending collateral The fair value of securities held as collateral is primarily based on Level 2 inputs from market information for the collateral that is held on our behalf by the custodian. We determine fair value after considering prices obtained by third-party pricing services. Separate account assets The fair value of separate account assets is based on the quoted prices of the underlying fund investments and, therefore, represents Level 1 pricing. Derivatives We consider counterparty collateral arrangements and rights of set-off when evaluating our net credit risk exposure to our derivative counterparties. Accordingly, we are permitted to include consideration of these arrangements when determining whether any incremental adjustment should be made for both the counterparty’s and our non-performance risk in measuring fair value for our derivative instruments. As a result of these counterparty arrangements, we determined that any adjustment for credit risk would not be material and we do not record any incremental adjustment for our non-performance risk or the non-performance risk of the derivative counterparty for our derivative assets or liabilities. We determine fair value for our derivatives using an income approach with internal models based on relevant market inputs for each derivative instrument. We also compare the fair value determined using our internal model to the valuations provided by our derivative counterparties with any significant differences or changes in valuation being evaluated further by our derivatives professionals that are familiar with the instrument and market inputs used in the valuation. Interest rate swaps. Interest rate swaps related to securitization entities. Inflation indexed swaps. Foreign currency swaps. Credit default swaps. Credit default swaps related to securitization entities. Equity index options. Financial futures. Equity return swaps. Forward bond purchase commitments. Other foreign currency contracts. GMWB embedded derivatives We are required to bifurcate an embedded derivative for certain features associated with annuity products and related reinsurance agreements where we provide a GMWB to the policyholder and are required to record the GMWB embedded derivative at fair value. The valuation of our GMWB embedded derivative is based on an income approach that incorporates inputs such as forward interest rates, equity index volatility, equity index and fund correlation, and policyholder assumptions such as utilization, lapse and mortality. In addition to these inputs, we also consider risk and expense margins when determining the projected cash flows that would be determined by another market participant. While the risk and expense margins are considered in determining fair value, these inputs do not have a significant impact on the valuation. We determine fair value using an internal model based on the various inputs noted above. The resulting fair value measurement from the model is reviewed by the product actuarial, risk and finance professionals each reporting period with changes in fair value also being compared to changes in derivatives and other instruments used to mitigate changes in fair value from certain market risks, such as equity index volatility and interest rates. For GMWB liabilities, non-performance risk is integrated into the discount rate. Our discount rate used to determine fair value of our GMWB liabilities includes market credit spreads above U.S. Treasury rates to reflect an adjustment for the non-performance risk of the GMWB liabilities. As of September 30, 2015 and December 31, 2014, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $82 million and $74 million, respectively. To determine the appropriate discount rate to reflect the non-performance risk of the GMWB liabilities, we evaluate the non-performance risk in our liabilities based on a hypothetical exit market transaction as there is no exit market for these types of liabilities. A hypothetical exit market can be viewed as a hypothetical transfer of the liability to another similarly rated insurance company which would closely resemble a reinsurance transaction. Another hypothetical exit market transaction can be viewed as a hypothetical transaction from the perspective of the GMWB policyholder. In determining the appropriate discount rate to incorporate non-performance risk of the GMWB liabilities, we also considered the impacts of state guarantees embedded in the related insurance product as a form of inseparable third-party guarantee. We believe that a hypothetical exit market participant would use a similar discount rate as described above to value the liabilities. For equity index volatility, we determine the projected equity market volatility using both historical volatility and projected equity market volatility with more significance being placed on projected near-term volatility and recent historical data. Given the different attributes and market characteristics of GMWB liabilities compared to equity index options in the derivative market, the equity index volatility assumption for GMWB liabilities may be different from the volatility assumption for equity index options, especially for the longer dated points on the curve. Equity index and fund correlations are determined based on historical price observations for the fund and equity index. For policyholder assumptions, we use our expected lapse, mortality and utilization assumptions and update these assumptions for our actual experience, as necessary. For our lapse assumption, we adjust our base lapse assumption by policy based on a combination of the policyholder’s current account value and GMWB benefit. We classify the GMWB valuation as Level 3 based on having significant unobservable inputs, with equity index volatility and non-performance risk being considered the more significant unobservable inputs. As equity index volatility increases, the fair value of the GMWB liabilities will increase. Any increase in non-performance risk would increase the discount rate and would decrease the fair value of the GMWB liability. Additionally, we consider lapse and utilization assumptions to be significant unobservable inputs. An increase in our lapse assumption would decrease the fair value of the GMWB liability, whereas an increase in our utilization rate would increase the fair value. Fixed index annuity embedded derivatives We offer fixed indexed annuity products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. As a result of our assumptions for policyholder behavior and expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As lapses and withdrawals increase, the value of our embedded derivative liability will decrease. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. Indexed universal life embedded derivatives We offer indexed universal life products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. As a result of our assumptions for policyholder behavior and expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As lapses and withdrawals increase, the value of our embedded derivative liability will decrease. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. Borrowings related to securitization entities We record certain borrowings related to securitization entities at fair value. The fair value of these borrowings is determined using either a market approach or income approach, depending on the instrument and availability of market information. Given the unique characteristics of the securitization entities that issued these borrowings as well as the lack of comparable instruments, we determine fair value considering the valuation of the underlying assets held by the securitization entities and any derivatives, as well as any unique characteristics of the borrowings that may impact the valuation. After considering all relevant inputs, we determine fair value of the borrowings using the net valuation of the underlying assets and derivatives that are backing the borrowings. Accordingly, these instruments are classified as Level 3. Increases in the valuation of the underlying assets or decreases in the derivative liabilities will result in an increase in the fair value of these borrowings. The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: September 30, 2015 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,913 $ — $ 5,910 $ 3 State and political subdivisions 2,448 — 2,413 35 Non-U.S. government 1,952 — 1,952 — U.S. corporate: Utilities 3,800 — 3,337 463 Energy 2,771 — 2,506 265 Finance and insurance 5,849 — 5,187 662 Consumer—non-cyclical 4,142 — 4,047 95 Technology and communications 2,408 — 2,374 34 Industrial 1,301 — 1,236 65 Capital goods 2,077 — 1,887 190 Consumer—cyclical 1,833 — 1,526 307 Transportation 1,091 — 981 110 Other 423 — 237 186 Total U.S. corporate 25,695 — 23,318 2,377 Non-U.S. corporate: Utilities 897 — 553 344 Energy 1,891 — 1,612 279 Finance and insurance 2,877 — 2,643 234 Consumer—non-cyclical 755 — 598 157 Technology and communications 996 — 954 42 Industrial 1,096 — 1,008 88 Capital goods 610 — 380 230 Consumer—cyclical 566 — 479 87 Transportation 611 — 465 146 Other 2,900 — 2,827 73 Total non-U.S. corporate 13,199 — 11,519 1,680 Residential mortgage-backed 5,118 — 5,048 70 Commercial mortgage-backed 2,587 — 2,576 11 Other asset-backed 3,939 — 2,633 1,306 Total fixed maturity securities 60,851 — 55,369 5,482 Equity securities 273 233 2 38 Other invested assets: Trading securities 458 — 458 — Derivative assets: Interest rate swaps 1,246 — 1,246 — Inflation indexed swaps 2 — 2 — Foreign currency swaps 8 — 8 — Credit default swaps 1 — — 1 Equity index options 15 — — 15 Equity return swaps 15 — 15 — Forward bond purchase commitments 13 — 13 — Other foreign currency contracts 25 — 25 — Total derivative assets 1,325 — 1,309 16 Securities lending collateral 367 — 367 — Total other invested assets 2,150 — 2,134 16 Restricted other invested assets related to securitization entities 412 — 181 231 Reinsurance recoverable (1) 19 — — 19 Separate account assets 7,893 7,893 — — Total assets $ 71,598 $ 8,126 $ 57,686 $ 5,786 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. December 31, 2014 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 6,000 $ — $ 5,996 $ 4 State and political subdivisions 2,222 — 2,192 30 Non-U.S. government 1,920 — 1,913 7 U.S. corporate: Utilities 3,864 — 3,420 444 Energy 2,742 — 2,457 285 Finance and insurance 5,653 — 5,037 616 Consumer—non-cyclical 4,019 — 3,879 140 Technology and communications 2,325 — 2,280 45 Industrial 1,287 — 1,251 36 Capital goods 2,006 — 1,840 166 Consumer—cyclical 1,900 — 1,537 363 Transportation 1,039 — 886 153 Other 401 — 230 171 Total U.S. corporate 25,236 — 22,817 2,419 Non-U.S. corporate: Utilities 913 — 585 328 Energy 2,050 — 1,726 324 Finance and insurance 3,012 — 2,791 221 Consumer—non-cyclical 812 — 615 197 Technology and communications 1,066 — 1,024 42 Industrial 1,225 — 1,094 131 Capital goods 631 — 394 237 Consumer—cyclical 549 — 460 89 Transportation 594 — 440 154 Other 3,411 — 3,330 81 Total non-U.S. corporate 14,263 — 12,459 1,804 Residential mortgage-backed 5,228 — 5,163 65 Commercial mortgage-backed 2,702 — 2,697 5 Other asset-backed 3,705 — 2,285 1,420 Total fixed maturity securities 61,276 — 55,522 5,754 Equity securities 275 237 4 34 Other invested assets: Trading securities 241 — 241 — Derivative assets: Interest rate swaps 1,091 — 1,091 — Foreign currency swaps 6 — 6 — Credit default swaps 4 — 1 3 Equity index options 17 — — 17 Other foreign currency contracts 14 — 14 — Total derivative assets 1,132 — 1,112 20 Securities lending collateral 289 — 289 — Total other invested assets 1,662 — 1,642 20 Restricted other invested assets related to securitization entities 411 — 181 230 Reinsurance recoverable (1) 13 — — 13 Separate account assets 9,208 9,208 — — Total assets $ 72,845 $ 9,445 $ 57,349 $ 6,051 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the types of assets classified as Level 1, which primarily represents mutual fund investments, we typically do not have any transfers between Level 1 and Level 2 measurement categories and did not have any such transfers during any period presented. Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from third-party pricing sources to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3. The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning balance as of July 1, 2015 Total realized and unrealized gains (losses) Ending balance as of September 30, 2015 Total gains (losses) included in net income (loss) attributable to assets still held (Amounts in millions) Included in net income (loss) Included in OCI Purchases Sales Issuances Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 3 $ — $ — $ — $ — $ — $ — $ — $ — $ 3 $ — State and political subdivisions 40 1 (1 ) — — — — — (5 ) 35 1 Non-U.S. government 5 — — — — — — — (5 ) — — U.S. corporate: Utilities 448 — 1 23 — — — 8 (17 ) 463 — Energy 269 — (3 ) — — — (1 ) — — 265 — Finance and insurance 629 4 (3 ) 55 — — (3 ) — (20 ) 662 3 Consumer—non-cyclical 108 — (1 ) — — — (2 ) — (10 ) 95 — Technology and communications 33 1 1 — — — — — (1 ) 34 1 Industrial 36 — 1 28 — — — — — 65 — Capital goods 165 — (2 ) 27 — — — — — 190 — Consumer—cyclical 296 1 (2 ) 30 — — (28 ) 10 — 307 — Transportation 121 — (1 ) — — — (1 ) — (9 ) 110 — Other 166 — 2 — — — (1 ) 19 — 186 — Total U.S. corporate 2,271 6 (7 ) 163 — — (36 ) 37 (57 ) 2,377 4 Non-U.S. corporate: Utilities 326 — — 18 — — — — — 344 — Energy 305 — (3 ) — — — (23 ) — — 279 — Finance and insurance 218 — 1 15 — — — — — 234 — Consumer—non-cyclical 169 — — — — — (11 ) — (1 ) 157 — Technology and communications 42 — — — — — — — — 42 — Industrial 125 — — — — — (4 ) — (33 ) 88 — Capital goods 237 — (2 ) — — — (5 ) — — 230 — Consumer—cyclical 73 — (2 ) — — — — 16 — 87 — Transportation 154 — — — — — (8 ) — — 146 — Other 75 — (2 ) — — — — — — 73 — Total non-U.S. corporate 1,724 — (8 ) 33 — — (51 ) 16 (34 ) 1,680 — Residential mortgage-backed 132 — (3 ) 6 — — (2 ) 9 (72 ) 70 — Commercial mortgage-backed 25 — (1 ) — — — — — (13 ) 11 — Other asset-backed 1,360 — (7 ) 34 (14 ) — (50 ) 77 (94 ) 1,306 2 Total fixed maturity securities 5,560 7 (27 ) 236 (14 ) — (139 ) 139 (280 ) 5,482 7 Equity securities 41 — — — (4 ) — — 1 — 38 — Other invested assets: Derivative assets: Credit default swaps 1 — — — — — — — — 1 — Equity index options 12 6 — — — — (3 ) — — 15 5 Total derivative assets 13 6 — — — — (3 ) — — 16 5 Total other invested assets 13 6 — — — — (3 ) — — 16 5 Restricted other invested assets related to securitization entities 230 1 — — — — — — — 231 1 Reinsurance recoverable (2) 10 9 — — — — — — — 19 9 Total Level 3 assets $ 5,854 $ 23 $ (27 ) $ 236 $ (18 ) $ — $ (142 ) $ 140 $ (280 ) $ 5,786 $ 22 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning Total realized and Ending as of Total gains attributable (Amounts in millions) Included in (loss) Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4 $ — $ — $ — $ — $ — $ — $ — $ — $ 4 $ — State and political subdivisions 33 1 — — — — — — — 34 1 Non-U.S. government 25 — — — — — (1 ) — (17 ) 7 — U.S. corporate: Utilities 391 — — 6 — — — 97 — 494 — Energy 252 — (4 ) 25 — — (1 ) — (57 ) 215 — Finance and insurance 513 3 (7 ) 6 — — (2 ) 70 — 583 3 Consumer—non-cyclical 174 4 (3 ) — — — (31 ) — — 144 — Technology and communications 65 — — — — — (1 ) — — 64 1 Industrial 36 — — — — — — — — 36 — Capital goods 157 — — 8 — — — 17 — 182 — Consumer—cyclical 416 1 (1 ) — — — (29 ) — — 387 1 Transportation 163 — (1 ) 10 — — (2 ) — — 170 — Other 223 — 1 — — — (41 ) — — 183 — Total U.S. corporate 2,390 8 (15 ) 55 — — (107 ) 184 (57 ) 2,458 5 Non-U.S. corporate: Utilities 297 — — 24 — — — 26 — 347 — Energy 294 — (2 ) 17 — — (22 ) — (3 ) 284 — Finance and insurance 264 1 2 — — — (1 ) 6 (30 ) 242 1 Consumer—non-cyclical 226 — — — — — (1 |
Deferred Acquisition Costs
Deferred Acquisition Costs | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Acquisition Costs | (7) Deferred Acquisition Costs The following table presents the activity impacting deferred acquisition costs (“DAC”) for the dates indicated: As of or for the nine months (Amounts in millions) 2015 2014 Unamortized beginning balance $ 5,197 $ 5,211 Impact of foreign currency translation (20 ) (6 ) Costs deferred 226 282 Amortization, net of interest accretion (265 ) (281 ) Impairment (455 ) — Unamortized ending balance 4,683 5,206 Accumulated effect of net unrealized investment (gains) losses (246 ) (336 ) Ending balance $ 4,437 $ 4,870 On September 30, 2015, Genworth Life and Annuity Insurance Company (“GLAIC”), our indirect wholly-owned subsidiary, entered into a Master Agreement (the “Master Agreement”) with Protective Life Insurance Company (“Protective Life”). Pursuant to the Master Agreement, GLAIC and Protective Life agreed to enter into a reinsurance agreement (the “Reinsurance Agreement”), under the terms of which Protective Life will coinsure certain term life insurance business of GLAIC, net of third-party reinsurance. The Reinsurance Agreement will be executed at closing which is expected during the first quarter of 2016, subject to approvals from certain regulatory authorities and satisfaction of other customary closing conditions. In connection with entering into the Master Agreement, we recorded a DAC impairment of $455 million as a result of loss recognition testing of certain term life insurance policies as part of this life block transaction. As of September 30, 2015, we believe all of our other businesses had sufficient future income and therefore the related DAC was recoverable. |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 9 Months Ended |
Sep. 30, 2015 | |
Liability for Policy and Contract Claims | (8) Liability for Policy and Contract Claims The following table sets forth our recorded liability for policy and contract claims by business as of the dates indicated: (Amounts in millions) September 30, December 31, Long-term care insurance $ 6,583 $ 6,216 U.S. mortgage insurance 953 1,180 International mortgage insurance 303 308 Life insurance 189 197 Fixed annuities 19 21 Runoff 18 15 Total liability for policy and contract claims $ 8,065 $ 7,937 The liability for policy and contract claims represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could possibly be significant, and result in increases in reserves by an amount that could be material to our results of operations and financial condition and liquidity. Long-term care insurance The following table sets forth changes in the liability for policy and contract claims for our long-term care insurance business for the dates indicated: As of or for the nine (Amounts in millions) 2015 2014 Beginning balance $ 6,216 $ 4,999 Less reinsurance recoverables (1,926 ) (1,707 ) Net beginning balance 4,290 3,292 Incurred related to insured events of: Current year 1,241 1,085 Prior years 6 653 Total incurred 1,247 1,738 Paid related to insured events of: Current year (75 ) (64 ) Prior years (1,050 ) (968 ) Total paid (1,125 ) (1,032 ) Interest on liability for policy and contract claims 172 140 Net ending balance 4,584 4,138 Add reinsurance recoverables 1,999 1,873 Ending balance $ 6,583 $ 6,011 For the nine months ended September 30, 2014, the incurred amount of $653 million related to insured events of prior years increased largely as a result of the completion of a comprehensive review of our long-term care insurance claim reserves conducted during the third quarter of 2014 which resulted in recording higher reserves of $604 million and an increase in reinsurance recoverables of $73 million. This review was commenced as a result of adverse claims experience during the second quarter of 2014 and in connection with our regular review of our claim reserves assumptions during the third quarter of each year. As a result of this review, we made changes to our assumptions and methodologies relating to our long-term care insurance claim reserves primarily impacting claim termination rates, most significantly in later-duration claims, and benefit utilization rates, reflecting that claims are not terminating as quickly and claimants are utilizing more of their available benefits in aggregate than had previously been assumed in our reserve calculations. In conducting the review, we increased the population of claims reviewed, utilizing more of our recent data. During the third quarter of 2014, we also recorded a $61 million unfavorable correction to claim reserves related to a calculation of benefit utilization for policies with a benefit inflation option. This error arose prior to 2011 and was not material to earnings in any interim or annual period. The remaining increase was attributable to aging and growth of the in-force block. U.S. mortgage insurance The following table sets forth changes in the liability for policy and contract claims for our U.S. mortgage insurance business for the dates indicated: As of or for the nine (Amounts in millions) 2015 2014 Beginning balance $ 1,180 $ 1,482 Less reinsurance recoverables (24 ) (44 ) Net beginning balance 1,156 1,438 Incurred related to insured events of: Current year 180 243 Prior years (18 ) 23 Total incurred 162 266 Paid related to insured events of: Current year (6 ) (8 ) Prior years (365 ) (482 ) Total paid (371 ) (490 ) Net ending balance 947 1,214 Add reinsurance recoverables 6 25 Ending balance $ 953 $ 1,239 For the nine months ended September 30, 2015, the incurred amount of $18 million related to insured events of prior years decreased primarily from improvements in net cures and the favorable aging on existing delinquencies. For the nine months ended September 30, 2014, the incurred amount of $23 million related to insured events of prior years increased primarily related to an aggregate increase in our claim reserves of $53 million in connection with the settlement agreement with Bank of America, N.A. and discussions with another servicer in an effort to resolve pending disputes over loss mitigation activities in the third quarter of 2014. This increase was partially offset by favorable aging on existing delinquencies. |
Borrowings and Other Financings
Borrowings and Other Financings | 9 Months Ended |
Sep. 30, 2015 | |
Borrowings and Other Financings | (9) Borrowings and Other Financings (a) Long-Term Borrowings The following table sets forth total long-term borrowings as of the dates indicated: (Amounts in millions) September 30, December 31, Genworth Holdings (1) 8.625% Senior Notes, due 2016 $ 298 $ 300 6.52% Senior Notes, due 2018 598 600 7.70% Senior Notes, due 2020 397 400 7.20% Senior Notes, due 2021 389 399 7.625% Senior Notes, due 2021 724 758 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 6.15% Fixed-to-Floating Rate Junior Subordinated Notes, due 2066 598 598 Total Genworth Holdings 4,100 4,151 Canada (2) 5.68% Senior Notes, due 2020 206 236 4.24% Senior Notes, due 2024 120 138 Total Canada 326 374 Australia (3) Floating Rate Junior Notes, due 2021 35 114 Floating Rate Junior Notes, due 2025 140 — Total Australia 175 114 Total $ 4,601 $ 4,639 (1) We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. (2) Senior notes issued by our majority-owned subsidiary, Genworth MI Canada Inc. (“Genworth Canada”). (3) Subordinated floating rate notes issued by our indirect wholly-owned subsidiary, Genworth Financial Mortgage Insurance Pty Limited. During the three months ended September 30, 2015, Genworth Holdings repurchased $50 million aggregate principal amount of its senior notes for a pre-tax loss of $1 million and paid accrued and unpaid interest thereon. In July 2015, our indirect majority-owned subsidiary, Genworth Financial Mortgage Insurance Pty Limited, issued AUD$200 million of subordinated floating rate notes due 2025 with an interest rate of three-month Bank Bill Swap reference rate plus a margin of 3.50%. Genworth Financial Mortgage Insurance Pty Limited used the proceeds it received from this transaction to redeem AUD$90 million of its outstanding debt and for general corporate purposes and incurred a $2 million pre-tax early redemption payment. (b) Repurchase agreements and securities lending activity Repurchase agreements We have a repurchase program in which we sell an investment security at a specified price and agree to repurchase that security at another specified price at a later date. Repurchase agreements are treated as collateralized financing transactions and are carried at the amounts at which the securities will be subsequently reacquired, including accrued interest, as specified in the respective agreement. The market value of securities to be repurchased is monitored and collateral levels are adjusted where appropriate to protect the parties against credit exposure. Cash received is invested in fixed maturity securities. As of September 30, 2015 and December 31, 2014, the fair value of securities pledged under the repurchase program was $340 million and $592 million, respectively, and the repurchase obligation of $330 million and $553 million, respectively, was included in other liabilities in the consolidated balance sheets. Securities lending activity In the United States and Canada, we engage in certain securities lending transactions for the purpose of enhancing the yield on our investment securities portfolio. We maintain effective control over all loaned securities and, therefore, continue to report such securities as fixed maturity securities on the consolidated balance sheets. We are currently indemnified against counterparty credit risk by the intermediary. Under the securities lending program in the United States, the borrower is required to provide collateral, which can consist of cash or government securities, on a daily basis in amounts equal to or exceeding 102% of the value of the loaned securities. Currently, we only accept cash collateral from borrowers under the program. Cash collateral received by us on securities lending transactions is reflected in other invested assets with an offsetting liability recognized in other liabilities for the obligation to return the collateral. Any cash collateral received is reinvested by our custodian based upon the investment guidelines provided within our agreement. In the United States, the reinvested cash collateral is primarily invested in a money market fund approved by the National Association of Insurance Commissioners (“NAIC”), U.S. and foreign government securities, U.S. government agency securities, asset-backed securities and corporate debt securities. As of September 30, 2015 and December 31, 2014, the fair value of securities loaned under our securities lending program in the United States was $353 million and $288 million, respectively. As of September 30, 2015 and December 31, 2014, the fair value of collateral held under our securities lending program in the United States was $366 million and $289 million, respectively, and the offsetting obligation to return collateral of $366 million and $299 million, respectively, was included in other liabilities in the consolidated balance sheets. We did not have any non-cash collateral provided by the borrowers in our securities lending program in the United States as of September 30, 2015 and December 31, 2014. Under our securities lending program in Canada, the borrower is required to provide collateral consisting of government securities on a daily basis in amounts equal to or exceeding 105% of the fair value of the applicable securities loaned. Securities received from counterparties as collateral are not recorded on our consolidated balance sheet given that the risk and rewards of ownership is not transferred from the counterparties to us in the course of such transactions. Additionally, there was no cash collateral because it is not permitted as an acceptable form of collateral under the program. In Canada, the lending institution must be included on the approved Securities Lending Borrowers List with the Canadian regulator and the intermediary must be rated at least “AA-” by Standard & Poor’s Financial Services LLC. As of September 30, 2015 and December 31, 2014, the fair value of securities loaned under our securities lending program in Canada was $335 million and $371 million, respectively. Risks associated with repurchase agreements and securities lending programs Our repurchase agreement and securities lending programs expose us to liquidity risk if we did not have enough cash or collateral readily available to return to the counterparty when required to do so under the agreements. We manage this risk by regularly monitoring our available sources of cash and collateral to ensure we can meet short-term liquidity demands under normal and stressed scenarios. We are also exposed to credit risk in the event of default of our counterparties or changes in collateral values. This risk is significantly reduced because our programs require over collateralization and collateral exposures are trued up on a daily basis. We manage this risk by using multiple counterparties and ensuring that changes in required collateral are monitored and adjusted daily. We also monitor the creditworthiness, including credit ratings, of our counterparties on a regular basis. Contractual maturity The following tables present the remaining contractual maturity of the agreements as of the dates indicated: September 30, 2015 (Amounts in millions) Overnight and Up to 30 days 31 - 90 days Greater than Total Repurchase agreements: U.S. government, agencies and government-sponsored enterprises $ — $ 103 $ 70 $ 157 $ 330 Securities lending: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises 28 — — — 28 Non-U.S. government 47 — — — 47 U.S. corporate 90 — — — 90 Non-U.S. corporate 196 — — — 196 Subtotal, fixed maturity securities 361 — — — 361 Equity securities 5 — — — 5 Total securities lending 366 — — — 366 Total repurchase agreements and securities lending $ 366 $ 103 $ 70 $ 157 $ 696 December 31, 2014 (Amounts in millions) Overnight and Up to 30 days 31 - 90 days Greater than Total Repurchase agreements: U.S. government, agencies and government-sponsored enterprises $ — $ 129 $ 123 $ 301 $ 553 Securities lending: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises 36 — — — 36 Non-U.S. government 32 — — — 32 U.S. corporate 66 — — — 66 Non-U.S. corporate 163 — — — 163 Subtotal, fixed maturity securities 297 — — — 297 Equity securities 2 — — — 2 Total securities lending 299 — — — 299 Total repurchase agreements and securities lending $ 299 $ 129 $ 123 $ 301 $ 852 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | (10) Income Taxes The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Pre-tax income (loss) $ (351 ) $ (980 ) $ 188 $ (375 ) Statutory U.S. federal income tax rate $ (123 ) 35.0 % $ (343 ) 35.0 % $ 66 35.0 % $ (131 ) 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect (1 ) 0.4 (3 ) 0.3 3 1.4 3 (0.8 ) Benefit on tax favored investments (9 ) 2.5 (1 ) 0.1 (14 ) (7.2 ) (3 ) 0.8 Effect of foreign operations (3 ) 0.8 (5 ) 0.5 (33 ) (17.5 ) (46 ) 12.3 Non-deductible expenses — — — — 1 0.6 1 (0.3 ) Interest on uncertain tax positions — (0.2 ) — — 1 0.3 — — Valuation allowance — — — — — — (7 ) 1.8 Non-deductible goodwill — 0.1 163 (16.6 ) — — 163 (43.4 ) Stock-based compensation 2 (0.5 ) — — 4 2.0 8 (2.1 ) Other, net — — 2 (0.2 ) (1 ) (0.3 ) (4 ) 1.0 Effective rate $ (134 ) 38.1 % $ (187 ) 19.1 % $ 27 14.3 % $ (16 ) 4.3 % For the three months ended September 30, 2015, the increase in the effective tax rate was primarily attributable to non-deductible goodwill impairments in the prior year and decreased benefits from lower taxed foreign income in the current year, partially offset by increased benefits from tax favored investments and true ups related to lower taxed foreign income. For the nine months ended September 30, 2015, the increase in the effective tax rate was primarily attributable to non-deductible goodwill impairments in the prior year and decreased benefits from lower taxed foreign income, partially offset by prior year true ups related to lower taxed foreign income and increased benefits from tax favored investments. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Information | (11) Segment Information We operate through three divisions: Global Mortgage Insurance, U.S. Life Insurance and Corporate and Other. Under these divisions, there are four operating business segments. The Global Mortgage Insurance Division includes the International Mortgage Insurance and U.S. Mortgage Insurance segments. The U.S. Life Insurance Division includes the U.S. Life Insurance segment. The Corporate and Other Division includes the Runoff segment and Corporate and Other activities. Our operating business segments are as follows: (1) International Mortgage Insurance, which includes mortgage insurance-related products and services; (2) U.S. Mortgage Insurance, which includes mortgage insurance-related products and services; (3) U.S. Life Insurance, which includes our long-term care insurance, life insurance and fixed annuities businesses; and (4) Runoff, which includes the results of non-strategic products which are no longer actively sold. Our non-strategic products primarily include our variable annuity, variable life insurance, institutional, corporate-owned life insurance and other accident and health insurance products. Institutional products consist of: funding agreements, FABNs and GICs. We also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including discontinued operations. In the first quarter of 2015, we revised how we allocate our consolidated provision for income taxes to our operating segments to simplify our process and reflect how our chief operating decision maker is evaluating segment performance. Our revised methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. Previously, we calculated a unique income tax provision for each segment based on quarterly changes to tax attributes and implications of transactions specific to each product within the segment. The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year. Prior year amounts have not been re-presented to reflect this revised presentation and are, therefore, not comparable to the current year provision for income taxes by segment. However, we do not believe that the previous methodology would have resulted in a materially different segment-level provision for income taxes. We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “net operating income (loss).” We define net operating income (loss) as income (loss) from continuing operations excluding the after-tax effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from net operating income (loss) because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from net operating income (loss) if, in our opinion, they are not indicative of overall operating trends. While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that net operating income (loss), and measures that are derived from or incorporate net operating income (loss), are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses net operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. However, the items excluded from net operating income (loss) have occurred in the past and could, and in some cases will, recur in the future. Net operating income (loss) is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of net operating income (loss) may differ from the definitions used by other companies. In the first quarter of 2015, we modified our definition to explicitly state that restructuring costs, which were previously included in the infrequent and unusual category, are excluded from net operating income (loss). In the second quarter of 2015, we recorded a $2 million after-tax expense related to restructuring costs as part of an expense reduction plan as we evaluate and appropriately size our organizational needs and expenses. In the third quarter of 2014, we recorded goodwill impairments of $167 million, net of taxes, in our long-term care insurance business and $350 million, net of taxes, in our life insurance business. In the third quarter of 2015, we paid an early redemption payment of approximately $1 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth Financial Mortgage Insurance Pty Limited’s notes that were scheduled to mature in 2021. In the third quarter of 2015, we also repurchased approximately $50 million principal amount of Genworth Holdings, Inc.’s notes with various maturity dates for a loss of $1 million, net of taxes. In the second quarter of 2014, we paid an early redemption payment of approximately $2 million, net of taxes and portion attributable to noncontrolling interests, related to the early redemption of Genworth Canada’s notes that were scheduled to mature in 2015. These transactions were excluded from net operating income (loss) for the periods presented as they related to the loss on the early extinguishment of debt. In the third quarter of 2015, we recorded a DAC impairment of $296 million, net of taxes, on certain term life insurance policies in connection with entering into an agreement to complete a life block transaction. There were no infrequent or unusual items excluded from net operating income (loss) during the periods presented other than the following item. We recognized a tax charge of $7 million in the third quarter of 2015 from potential business portfolio changes related to our mortgage insurance business in Europe. Adjustments to reconcile net income (loss) attributable to Genworth Financial, Inc.’s common stockholders and net operating income (loss) assume a 35% tax rate and are net of the portion attributable to noncontrolling interests. Net investment gains (losses) are also adjusted for DAC and other intangible amortization and certain benefit reserves. The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Revenues: International Mortgage Insurance segment: Canada $ 124 $ 163 $ 429 $ 511 Australia 122 136 360 401 Other Countries 7 10 20 25 International Mortgage Insurance segment’s revenues 253 309 809 937 U.S. Mortgage Insurance segment’s revenues 161 165 497 476 U.S. Life Insurance segment: Long-term care insurance 949 879 2,769 2,607 Life insurance 455 510 1,419 1,494 Fixed annuities 221 277 683 791 U.S. Life Insurance segment’s revenues 1,625 1,666 4,871 4,892 Runoff segment’s revenues 53 53 209 215 Corporate and Other’s revenues 8 (3 ) 6 (20 ) Total revenues $ 2,100 $ 2,190 $ 6,392 $ 6,500 The following is a summary of net operating income (loss) for our segments and Corporate and Other activities and a reconciliation of net operating income (loss) for our segments and Corporate and Other activities to net loss available to Genworth Financial, Inc.’s common stockholders for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 International Mortgage Insurance segment: Canada $ 38 $ 46 $ 115 $ 134 Australia 21 48 80 167 Other Countries (5 ) (7 ) (16 ) (18 ) International Mortgage Insurance segment’s net operating income 54 87 179 283 U.S. Mortgage Insurance segment’s net operating income (loss) 37 (2 ) 138 70 U.S. Life Insurance segment: Long-term care insurance (10 ) (361 ) 10 (309 ) Life insurance 31 13 93 73 Fixed annuities 19 26 75 77 U.S. Life Insurance segment’s net operating income (loss) 40 (322 ) 178 (159 ) Runoff segment’s net operating income (loss) (4 ) 5 16 32 Corporate and Other’s net operating loss (63 ) (91 ) (174 ) (209 ) Net operating income (loss) 64 (323 ) 337 17 Net investment gains (losses), net (22 ) (10 ) (19 ) (1 ) Goodwill impairment, net — (517 ) — (517 ) Gains (losses) on early extinguishment of debt, net (2 ) — (2 ) (2 ) Gains (losses) from life block transactions, net (296 ) — (296 ) — Expenses related to restructuring, net — — (2 ) — Tax impact from potential business portfolio changes (7 ) — (7 ) — Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders (263 ) (850 ) 11 (503 ) Net income attributable to noncontrolling interests 46 57 150 144 Income (loss) from continuing operations (217 ) (793 ) 161 (359 ) Income (loss) from discontinued operations, net of taxes (21 ) 6 (334 ) 19 Net loss (238 ) (787 ) (173 ) (340 ) Less: net income attributable to noncontrolling interests 46 57 150 144 Net loss available to Genworth Financial, Inc.’s common stockholders $ (284 ) $ (844 ) $ (323 ) $ (484 ) The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) September 30, December 31, Assets: International Mortgage Insurance $ 7,773 $ 8,815 U.S. Mortgage Insurance 2,282 2,324 U.S. Life Insurance 82,345 82,906 Runoff 11,762 12,971 Corporate and Other 2,854 2,533 Segment assets from continuing operations 107,016 109,549 Assets held for sale related to discontinued operations 1,206 1,809 Total assets $ 108,222 $ 111,358 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | (12) Commitments and Contingencies (a) Litigation and Regulatory Matters We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses, including the risk of class action lawsuits. Our pending legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the industries in which we operate. In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force long-term care insurance premiums, payment of contingent or other sales commissions, claims payments and procedures, product design, product disclosure, administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, recommending unsuitable products to customers, our pricing structures and business practices in our mortgage insurance businesses, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of the Real Estate Settlement and Procedures Act of 1974 (“RESPA”) or related state anti-inducement laws, and mortgage insurance policy rescissions and curtailments, and breaching fiduciary or other duties to customers, including but not limited to breach of customer information. Plaintiffs in class action and other lawsuits against us may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties. We are also subject to litigation arising out of our general business activities such as our contractual and employment relationships. In addition, we are also subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and international regulators and other authorities. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer significant reputational harm, which could have an adverse effect on our business, financial condition or results of operations. In August 2014, Genworth Financial, Inc., its current chief executive officer and its then current chief financial officer were named in a putative class action lawsuit captioned Manuel Esguerra v. Genworth Financial, Inc. et al City of Pontiac General Employees’ Retirement System v. Genworth Financial, Inc. et al. Esguerra City of Pontiac Esguerra City of Pontiac City of Pontiac In re Genworth Financial, Inc. Securities Litigation. In April 2014, Genworth Financial, Inc., its former chief executive officer and its then current chief financial officer were named in a putative class action lawsuit captioned City of Hialeah Employees’ Retirement System v. Genworth Financial, Inc. et al. In re Genworth Financial, Inc. Securities Litigation. In August 2015, Genworth Financial, Inc., its former chief executive officer, its current chief executive officer, its then current chief financial officer and the current members of its board of directors were named in two separate shareholder derivative suits, each of which was filed in the United States District Court for the Eastern District of Virginia, alleging breaches of fiduciary duties concerning Genworth’s long-term care insurance reserves and concerning Genworth’s Australian mortgage insurance business, including our plans for an initial public offering of the business. The cases are captioned, Pinkoski v. McInerney, et al. Salberg v. McInerney, et al. In August 2015, Genworth Financial, Inc., its current chief executive officer, its then current chief financial officer and the current members of its board of directors were named in a shareholder derivative suit filed in the United States District Court for the Eastern District of Virginia, alleging breaches of fiduciary duties relating to Genworth’s long-term care insurance reserves. The case is captioned Cohen v. McInerney, et al. In September 2015, Genworth Financial, Inc., its former chief executive officer, its current chief executive officer, its then current chief financial officer and the current members of its board of directors were named in a shareholder derivative suit filed in the United States District Court for the Eastern District of Virginia, alleging breaches of fiduciary duties relating to Genworth’s long-term care insurance reserves. The case is captioned Int’l Union of Operating Engineers Local No. 478 Pension Fund v. McInerney, et al. Pinkoski v. McInerney, et al. In Re Genworth Financial Securities Litigation Beginning in December 2011 and continuing through January 2013, one of our U.S. mortgage insurance subsidiaries was named along with several other mortgage insurance participants and mortgage lenders as a defendant in twelve putative class action lawsuits alleging that certain “captive reinsurance arrangements” were in violation of RESPA. Those cases are captioned as follows: Samp, et al. v. JPMorgan Chase Bank, N.A., et al., White, et al., v. The PNC Financial Services Group, Inc., et al., Menichino, et al. v. Citibank NA, et al., McCarn, et al. v. HSBC USA, Inc., et al. Manners, et al., v. Fifth Third Bank, et al. Riddle, et al. v. Bank of America Corporation, et al. Rulison et al. v. ABN AMRO Mortgage Group, Inc. et al. Barlee, et al. v. First Horizon National Corporation, et al Cunningham, et al. v. M&T Bank Corp., et al Orange, et al. v. Wachovia Bank, N.A., et al Hill et al. v. Flagstar Bank, FSB, et al., Moriba Ba, et al. v. HSBC USA, Inc., et al., McCarn Rulison Barlee Manners Samp Orange White Menichino Riddle Hill Ba Cunningham Riddle Hill Cunningham Hill Hill Riddle Riddle In December 2009, one of our former non-insurance subsidiaries, one of the former subsidiary’s officers and Genworth Financial, Inc. (now known as Genworth Holdings, Inc.) were named in a putative class action lawsuit captioned Michael J. Goodman and Linda Brown v. Genworth Financial Wealth Management, Inc. et al In April 2012, two of our U.S. mortgage insurance subsidiaries were named as respondents in two arbitrations, one brought by Bank of America, N.A. and one brought by Countrywide Home Loans, Inc. and Bank of America, N.A. as claimants. Claimants alleged breach of contract and breach of the covenant of good faith and fair dealing and sought a declaratory judgment relating to our denial, curtailment and rescission of mortgage insurance coverage. In June 2012, our U.S. mortgage insurance subsidiaries responded to the arbitration demands and asserted numerous counterclaims against the claimants. On December 31, 2013, the parties reached an agreement to resolve that portion of both arbitrations involving rescission practices, which settlement took effect in the second quarter of 2014. As a result, the arbitration demands and counterclaims related to that portion of both arbitrations involving rescission practices were dismissed in the third quarter of 2014. In October 2014, the parties executed a definitive settlement agreement to settle all remaining claims in the arbitrations. Implementation of the settlement to resolve the remaining claims was subject to the consent of the government-sponsored enterprises (the “GSEs”). The settlement provides that our U.S. mortgage insurance subsidiaries will remit a portion of the previously curtailed claim amounts to Bank of America, N.A. and will agree to certain limits on future curtailment activity for loans that are part of the settlement. The consents of the GSEs were obtained in January 2015, and therefore, the parties have moved to dismiss all remaining matters in the arbitration. We expect such dismissals to occur in the fourth quarter of 2015. In addition to the negotiated settlement with Bank of America, N.A. discussed above, we have resolved a matter involving a second servicer’s dispute with us on loss mitigation. This second dispute did not involve any formal legal proceeding, as is the case with other discussions we have had from time to time with other lenders and servicers over disputed loss mitigation activities. During the third quarter of 2014, we recorded an aggregate increase in our claim reserves for our U.S. mortgage insurance business of $53 million principally to provide for the anticipated financial impact in connection with the settlement of the Bank of America, N.A. arbitration, as well as the second dispute, both of which were settled for amounts which in the aggregate were included within the claim reserve increase mentioned above. In early 2006 as part of an industry-wide review, one of our U.S. mortgage insurance subsidiaries received an administrative subpoena from the Minnesota Department of Commerce, which has jurisdiction over insurance matters, with respect to our reinsurance arrangements, including captive reinsurance transactions with lender-affiliated reinsurers. Since 2006, the Minnesota Department of Commerce has periodically requested additional information. In June 2015, we entered into a Consent Order with the Minnesota Department of Commerce pursuant to the terms and conditions of which we agreed to pay a civil penalty of $90,000 and agreed not to enter into any new captive reinsurance transactions from a lender-affiliated reinsurer or to obtain reinsurance under an existing captive reinsurance transaction from a lender-affiliated reinsurer on any new mortgage transactions after the date of the Consent Order for a period of 10 years. Pursuant to the Consent Order, we were discharged from all potential liability that has or might have been asserted by the Minnesota Department of Commerce based on our captive mortgage reinsurance policies or practices, to the extent such practices occurred prior to the date of the Consent Order. Inquiries from other regulatory bodies with respect to the same subject matter have been resolved or dormant for a number of years. At this time, other than as noted above, we cannot determine or predict the ultimate outcome of any of the pending legal and regulatory matters specifically identified above or the likelihood of potential future legal and regulatory matters against us. Except as disclosed above, we also are not able to provide an estimate or range of reasonably possible losses related to these matters. Therefore, we cannot ensure that the current investigations and proceedings will not have a material adverse effect on our business, financial condition or results of operations. In addition, it is possible that related investigations and proceedings may be commenced in the future, and we could become subject to additional unrelated investigations and lawsuits. Increased regulatory scrutiny and any resulting investigations or proceedings could result in new legal precedents and industry-wide regulations or practices that could adversely affect our business, financial condition and results of operations. (b) Commitments As of September 30, 2015, we were committed to fund $87 million in limited partnership investments, $106 million in U.S. commercial mortgage loan investments and $61 million in private placement investments. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Changes in Accumulated Other Comprehensive Income (Loss) | (13) Changes in Accumulated Other Comprehensive Income (Loss) The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2015 $ 1,628 $ 1,913 $ (232 ) $ 3,309 OCI before reclassifications 79 229 (302 ) 6 Amounts reclassified from (to) OCI 8 (12 ) — (4 ) Current period OCI 87 217 (302 ) 2 Balances as of September 30, 2015 before noncontrolling interests 1,715 2,130 (534 ) 3,311 Less: change in OCI attributable to noncontrolling interests (16 ) — (151 ) (167 ) Balances as of September 30, 2015 $ 1,731 $ 2,130 $ (383 ) $ 3,478 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2014 $ 2,128 $ 1,652 $ 381 $ 4,161 OCI before reclassifications (63 ) 110 (379 ) (332 ) Amounts reclassified from (to) OCI (4 ) (9 ) — (13 ) Current period OCI (67 ) 101 (379 ) (345 ) Balances as of September 30, 2014 before noncontrolling interests 2,061 1,753 2 3,816 Less: change in OCI attributable to noncontrolling interests (6 ) — (112 ) (118 ) Balances as of September 30, 2014 $ 2,067 $ 1,753 $ 114 $ 3,934 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2015 $ 2,453 $ 2,070 $ (77 ) $ 4,446 OCI before reclassifications (727 ) 99 (619 ) (1,247 ) Amounts reclassified from (to) OCI (1 ) (39 ) — (40 ) Current period OCI (728 ) 60 (619 ) (1,287 ) Balances as of September 30, 2015 before noncontrolling interests 1,725 2,130 (696 ) 3,159 Less: change in OCI attributable to noncontrolling interests (6 ) — (313 ) (319 ) Balances as of September 30, 2015 $ 1,731 $ 2,130 $ (383 ) $ 3,478 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2014 $ 926 $ 1,319 $ 297 $ 2,542 OCI before reclassifications 1,186 457 (252 ) 1,391 Amounts reclassified from (to) OCI (7 ) (23 ) — (30 ) Current period OCI 1,179 434 (252 ) 1,361 Balances as of September 30, 2014 before noncontrolling interests 2,105 1,753 45 3,903 Less: change in OCI attributable to noncontrolling interests 38 — (69 ) (31 ) Balances as of September 30, 2014 $ 2,067 $ 1,753 $ 114 $ 3,934 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. The foreign currency translation and other adjustments balance included $31 million and $6 million, respectively, net of taxes of $14 million and $1 million, respectively, related to a net unrecognized postretirement benefit obligation as of September 30, 2015 and 2014. Amount also included taxes of $(93) million and $35 million, respectively, related to foreign currency translation adjustments as of September 30, 2015 and 2014. The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from accumulated Affected line item in the consolidated statements of income Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ 13 $ (6 ) $ (1 ) $ (11 ) Net investment (gains) losses Provision for income taxes (5 ) 2 — 4 Provision for income taxes Total $ 8 $ (4 ) $ (1 ) $ (7 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (22 ) $ (17 ) $ (61 ) $ (45 ) Net investment income Interest rate swaps hedging liabilities — — — (1 ) Interest expense Inflation indexed swaps 5 3 2 11 Net investment income Forward bond purchase commitments (1 ) — (1 ) — Net investment income Provision for income taxes 6 5 21 12 Provision for income taxes Total $ (12 ) $ (9 ) $ (39 ) $ (23 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interests | (14) Noncontrolling Interests Canada In April 2015, Genworth Canada announced acceptance by the Toronto Stock Exchange of its Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”). Pursuant to the NCIB, Genworth Canada may purchase from time to time over the next 12 months, up to an aggregate of 4.7 million of its issued and outstanding common shares. In May 2015, Genworth Canada repurchased 1.4 million of its shares for CAD$50 million through the NCIB. We participated in the NCIB in order to maintain our overall ownership percentage at 57.3% and received $23 million in cash. Australia On May 15, 2014, Genworth Mortgage Insurance Australia Limited (“Genworth Australia”), a holding company for Genworth’s Australian mortgage insurance business, priced its initial public offering of 220,000,000 of its ordinary shares at an initial public offering price of AUD$2.65 per ordinary share. The offering closed on May 21, 2014. Following completion of the offering, Genworth Financial beneficially owned 66.2% of the ordinary shares of Genworth Australia through subsidiaries. The net proceeds of the offering were used by Genworth Australia to repay a portion of certain intercompany funding arrangements with our subsidiaries and those funds were then distributed to Genworth Holdings. The gross proceeds of the offering (before payment of fees and expenses) were approximately $541 million. Fees and expenses in connection with the offering were approximately $27 million, including approximately $3 million paid in 2013. On May 11, 2015, we sold 92,300,000 of our shares in Genworth Australia at AUD$3.08 per ordinary share. The offering closed on May 15, 2015. Following completion of the offering, Genworth Financial beneficially owns 52.0% of the ordinary shares of Genworth Australia through subsidiaries. The majority of the net proceeds of the offering were distributed to Genworth Holdings. The net proceeds of the offering were approximately $226 million. Consistent with applicable accounting guidance, changes in noncontrolling interests that do not result in a change of control are accounted for as equity transactions. When there are changes in noncontrolling interests of a subsidiary that do not result in a change of control, any difference between carrying value and fair value related to the change in ownership is recorded as an adjustment to stockholders’ equity. A summary of these changes in ownership interests and the effect on stockholders’ equity was as follows for the periods presented: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Net loss available to Genworth Financial, Inc.’s common stockholders $ (284 ) $ (844 ) $ (323 ) $ (484 ) Transfers to noncontrolling interests: Decrease in Genworth Financial, Inc.’s additional paid-in capital for initial sale of Genworth Australia to noncontrolling interests — — — (145 ) Decrease in Genworth Financial, Inc.’s additional paid-in capital for additional sale of Genworth Australia to noncontrolling interests — — (65 ) — Net transfers to noncontrolling interests — — (65 ) (145 ) Change from net loss available to Genworth Financial, Inc.’s common stockholders and transfers to noncontrolling interests $ (284 ) $ (844 ) $ (388 ) $ (629 ) |
Sale of Businesses
Sale of Businesses | 9 Months Ended |
Sep. 30, 2015 | |
Sale of Businesses | (15) Sale of Businesses (a) Lifestyle protection insurance business As discussed in note 1, our lifestyle protection insurance business is reported as discontinued operations. The assets and liabilities held for sale related to discontinued operations for this business have been segregated in our consolidated balance sheets. The major assets and liability categories were as follows as of the dates indicated: (Amounts in millions) September 30, December 31, Assets Investments: Fixed maturity securities available-for-sale, at fair value $ 1,117 $ 1,171 Equity securities available-for-sale, at fair value 6 7 Other invested assets 23 52 Total investments 1,146 1,230 Cash and cash equivalents 142 202 Accrued investment income 22 21 Deferred acquisition costs 168 193 Intangible assets 22 22 Reinsurance recoverable 36 32 Other assets 121 109 Assets held for sale related to discontinued operations 1,657 1,809 Fair value less pension settlement costs and closing costs impairment (451 ) — Total assets held for sale related to discontinued operations $ 1,206 $ 1,809 Liabilities Policyholder account balances $ 9 $ 11 Liability for policy and contract claims 108 106 Unearned premiums 412 439 Other liabilities 296 322 Deferred tax liability 29 50 Liabilities held for sale related to discontinued operations $ 854 $ 928 Deferred tax assets and liabilities that result in future taxable or deductible amounts to the remaining consolidated group have been reflected in assets or liabilities of continuing operations and not reflected in assets or liabilities held for sale related to discontinued operations. Summary operating results of discontinued operations were as follows for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Revenues: Premiums $ 169 $ 184 $ 517 $ 557 Net investment income 21 28 63 78 Net investment gains (losses) — 1 — 2 Insurance and investment product fees and other — 1 — 4 Total revenues 190 214 580 641 Benefits and expenses: Benefits and other changes in policy reserves 46 53 150 155 Acquisition and operating expenses, net of deferrals 105 113 323 340 Amortization of deferred acquisition costs and intangibles 21 30 71 90 Interest expense 7 10 22 34 Total benefits and expenses 179 206 566 619 Income (loss) before income taxes and loss on sale 11 8 14 22 Provision for income taxes 20 2 30 3 Income (loss) before loss on sale (9 ) 6 (16 ) 19 Loss on sale, net of taxes (12 ) — (318 ) — Income (loss) from discontinued operations, net of taxes $ (21 ) $ 6 $ (334 ) $ 19 During the three months ended June 30, 2015, in connection with our plan to sell our lifestyle protection insurance business, we recorded an estimated after-tax loss of approximately $306 million, net of taxes of $152 million. In the third quarter, we increased our estimated after-tax loss by $12 million. In accordance with the accounting guidance for groups of assets that are held-for-sale, we recorded an impairment of $451 million to record the carrying value of the business at its fair value, which was based on estimated proceeds less $124 million of pension settlement costs and closing costs. On July 22, 2015, we entered into exclusive negotiations with AXA S.A. after receiving an irrevocable offer to sell our lifestyle protection insurance business. On September 17, 2015, we executed a purchase agreement following the completion of the French works council consultation process on September 15, 2015. The sale price is expected to be €475 million, or approximately $490 million based on foreign exchange rates on September 30, 2015. The sale price and estimated net loss will be adjusted for changes in stockholders’ equity and other items since December 31, 2014 and are subject to change between now and closing. Net proceeds from the transaction, net of pension settlement costs and closing costs, are estimated to be approximately $400 million. The sale is expected to close by the end of 2015 and is subject to other customary conditions, including requisite regulatory approvals. (b) European mortgage insurance business On October 27, 2015, we announced that Genworth Mortgage Insurance Corporation, our wholly-owned indirect subsidiary, has entered into an agreement to sell our European mortgage insurance business to AmTrust Financial Services, Inc. that is expected to result in net proceeds of approximately $55 million. As the held-for-sale criteria were satisfied during the fourth quarter of 2015, we expect to record an after-tax loss of approximately $140 million related to the sale. Our European mortgage insurance business, previously included in Other Countries in our International Mortgage Insurance segment, will be reported as held for sale and its financial position will be separately reported in our 2015 Annual Report on Form 10-K. The transaction is expected to close in the first quarter of 2016 and is subject to customary conditions, including requisite regulatory approvals. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Consolidating Financial Information | (16) Condensed Consolidating Financial Information Genworth Financial provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding senior notes and the holders of the senior notes, on an unsecured unsubordinated basis, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, each outstanding series of senior notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the senior notes indenture in respect of such senior notes. Genworth Financial also provides a full and unconditional guarantee to the trustee of Genworth Holdings’ outstanding subordinated notes and the holders of the subordinated notes, on an unsecured subordinated basis, of the full and punctual payment of the principal of, premium, if any and interest on, and all other amounts payable under, the outstanding subordinated notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the subordinated notes indenture in respect of the subordinated notes. Genworth Holdings is a direct, 100% owned subsidiary of Genworth Financial. The following condensed consolidating financial information of Genworth Financial and its direct and indirect subsidiaries have been prepared pursuant to rules regarding the preparation of consolidating financial information of Regulation S-X. The condensed consolidating financial information has been prepared as if the guarantee had been in place during the periods presented herein. The condensed consolidating financial information presents the condensed consolidating balance sheet information as of September 30, 2015 and December 31, 2014, the condensed consolidating income statement information and the condensed consolidating comprehensive income statement information for the three and nine months ended September 30, 2015 and 2014 and the condensed consolidating cash flow statement information for the nine months ended September 30, 2015 and 2014. The condensed consolidating financial information reflects Genworth Financial (“Parent Guarantor”), Genworth Holdings (“Issuer”) and each of Genworth Financial’s other direct and indirect subsidiaries (the “All Other Subsidiaries”) on a combined basis, none of which guarantee the senior notes or subordinated notes, as well as the eliminations necessary to present Genworth Financial’s financial information on a consolidated basis and total consolidated amounts. The accompanying condensed consolidating financial information is presented based on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries’ cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries and intercompany activity. The following table presents the condensed consolidating balance sheet information as of September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ 150 $ 60,901 $ (200 ) $ 60,851 Equity securities available-for-sale, at fair value — — 273 — 273 Commercial mortgage loans — — 6,133 — 6,133 Restricted commercial mortgage loans related to securitization entities — — 175 — 175 Policy loans — — 1,567 — 1,567 Other invested assets — 124 2,652 (3 ) 2,773 Restricted other invested assets related to securitization entities, at fair value — — 412 — 412 Investments in subsidiaries 13,563 13,610 — (27,173 ) — Total investments 13,563 13,884 72,113 (27,376 ) 72,184 Cash and cash equivalents — 734 2,932 — 3,666 Accrued investment income — — 685 — 685 Deferred acquisition costs — — 4,437 — 4,437 Intangible assets — — 284 — 284 Goodwill — — 14 — 14 Reinsurance recoverable — — 17,276 — 17,276 Other assets 2 216 361 (2 ) 577 Intercompany notes receivable 2 291 399 (692 ) — Separate account assets — — 7,893 — 7,893 Assets held for sale related to discontinued operations — — 1,206 — 1,206 Total assets $ 13,567 $ 15,125 $ 107,600 $ (28,070 ) $ 108,222 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 36,472 $ — $ 36,472 Policyholder account balances — — 26,000 — 26,000 Liability for policy and contract claims — — 8,065 — 8,065 Unearned premiums — — 3,340 — 3,340 Other liabilities 5 260 2,982 (6 ) 3,241 Intercompany notes payable — 602 290 (892 ) — Borrowings related to securitization entities — — 188 — 188 Non-recourse funding obligations — — 1,951 — 1,951 Long-term borrowings — 4,100 501 — 4,601 Deferred tax liability (23 ) (1,077 ) 1,301 — 201 Separate account liabilities — — 7,893 — 7,893 Liabilities held for sale related to discontinued operations 6 — 848 — 854 Total liabilities (12 ) 3,885 89,831 (898 ) 92,806 Stockholders’ equity: Common stock 1 — — — 1 Additional paid-in capital 11,944 9,098 16,956 (26,054 ) 11,944 Accumulated other comprehensive income (loss) 3,478 3,560 3,498 (7,058 ) 3,478 Retained earnings 856 (1,418 ) (4,827 ) 6,245 856 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,579 11,240 15,627 (26,867 ) 13,579 Noncontrolling interests — — 2,142 (305 ) 1,837 Total stockholders’ equity 13,579 11,240 17,769 (27,172 ) 15,416 Total liabilities and stockholders’ equity $ 13,567 $ 15,125 $ 107,600 $ (28,070 ) $ 108,222 The following table presents the condensed consolidating balance sheet information as of December 31, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ 150 $ 61,326 $ (200 ) $ 61,276 Equity securities available-for-sale, at fair value — — 275 — 275 Commercial mortgage loans — — 6,100 — 6,100 Restricted commercial mortgage loans related to securitization entities — — 201 — 201 Policy loans — — 1,501 — 1,501 Other invested assets — 14 2,235 (5 ) 2,244 Restricted other invested assets related to securitization entities, at fair value — — 411 — 411 Investments in subsidiaries 14,895 15,003 — (29,898 ) — Total investments 14,895 15,167 72,049 (30,103 ) 72,008 Cash and cash equivalents — 953 3,763 — 4,716 Accrued investment income — — 668 (4 ) 664 Deferred acquisition costs — — 4,849 — 4,849 Intangible assets — — 250 — 250 Goodwill — — 16 — 16 Reinsurance recoverable — — 17,314 — 17,314 Other assets 2 207 316 (1 ) 524 Intercompany notes receivable 9 267 395 (671 ) — Separate account assets — — 9,208 — 9,208 Assets held for sale related to discontinued operations — — 1,809 — 1,809 Total assets $ 14,906 $ 16,594 $ 110,637 $ (30,779 ) $ 111,358 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 35,915 $ — $ 35,915 Policyholder account balances — — 26,032 — 26,032 Liability for policy and contract claims — — 7,937 — 7,937 Unearned premiums — — 3,547 — 3,547 Other liabilities 3 251 3,039 (11 ) 3,282 Intercompany notes payable — 604 267 (871 ) — Borrowings related to securitization entities — — 219 — 219 Non-recourse funding obligations — — 1,996 — 1,996 Long-term borrowings — 4,151 488 — 4,639 Deferred tax liability (20 ) (970 ) 1,848 — 858 Separate account liabilities — — 9,208 — 9,208 Liabilities held for sale related to discontinued operations — — 928 — 928 Total liabilities (17 ) 4,036 91,424 (882 ) 94,561 Stockholders’ equity: Common stock 1 — — — 1 Additional paid-in capital 11,997 9,162 17,080 (26,242 ) 11,997 Accumulated other comprehensive income (loss) 4,446 4,449 4,459 (8,908 ) 4,446 Retained earnings 1,179 (1,053 ) (4,205 ) 5,258 1,179 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 14,923 12,558 17,334 (29,892 ) 14,923 Noncontrolling interests — — 1,879 (5 ) 1,874 Total stockholders’ equity 14,923 12,558 19,213 (29,897 ) 16,797 Total liabilities and stockholders’ equity $ 14,906 $ 16,594 $ 110,637 $ (30,779 ) $ 111,358 The following table presents the condensed consolidating income statement information for the three months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,145 $ — $ 1,145 Net investment income (1 ) — 788 (4 ) 783 Net investment gains (losses) — 21 (72 ) — (51 ) Insurance and investment product fees and other — (10 ) 233 — 223 Total revenues (1 ) 11 2,094 (4 ) 2,100 Benefits and expenses: Benefits and other changes in policy reserves — — 1,290 — 1,290 Interest credited — — 179 — 179 Acquisition and operating expenses, net of deferrals 9 1 304 — 314 Amortization of deferred acquisition costs and intangibles — — 563 — 563 Interest expense — 77 32 (4 ) 105 Total benefits and expenses 9 78 2,368 (4 ) 2,451 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (10 ) (67 ) (274 ) — (351 ) Provision (benefit) for income taxes (40 ) 21 (115 ) — (134 ) Equity in income (loss) of subsidiaries (314 ) (270 ) — 584 — Income (loss) from continuing operations (284 ) (358 ) (159 ) 584 (217 ) Income (loss) from discontinued operations, net of taxes — — (21 ) — (21 ) Net income (loss) (284 ) (358 ) (180 ) 584 (238 ) Less: net income attributable to noncontrolling interests — — 46 — 46 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (284 ) $ (358 ) $ (226 ) $ 584 $ (284 ) The following table presents the condensed consolidating income statement information for the three months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,210 $ — $ 1,210 Net investment income (1 ) — 783 (4 ) 778 Net investment gains (losses) — 9 (36 ) — (27 ) Insurance and investment product fees and other — — 229 — 229 Total revenues (1 ) 9 2,186 (4 ) 2,190 Benefits and expenses: Benefits and other changes in policy reserves — — 1,934 — 1,934 Interest credited — — 185 — 185 Acquisition and operating expenses, net of deferrals 5 — 279 — 284 Amortization of deferred acquisition costs and intangibles — — 113 — 113 Goodwill impairment — — 550 — 550 Interest expense — 77 31 (4 ) 104 Total benefits and expenses 5 77 3,092 (4 ) 3,170 Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries (6 ) (68 ) (906 ) — (980 ) Provision (benefit) for income taxes 8 (16 ) (179 ) — (187 ) Equity in income (loss) of subsidiaries (830 ) (785 ) — 1,615 — Income (loss) from continuing operations (844 ) (837 ) (727 ) 1,615 (793 ) Income (loss) from discontinued operations, net of taxes — — 6 — 6 Net income (loss) (844 ) (837 ) (721 ) 1,615 (787 ) Less: net income attributable to noncontrolling interests — — 57 — 57 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (844 ) $ (837 ) $ (778 ) $ 1,615 $ (844 ) The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 3,422 $ — $ 3,422 Net investment income (2 ) 1 2,369 (11 ) 2,357 Net investment gains (losses) — 37 (96 ) — (59 ) Insurance and investment product fees and other — (30 ) 703 (1 ) 672 Total revenues (2 ) 8 6,398 (12 ) 6,392 Benefits and expenses: Benefits and other changes in policy reserves — — 3,714 — 3,714 Interest credited — — 540 — 540 Acquisition and operating expenses, net of deferrals 23 2 851 — 876 Amortization of deferred acquisition costs and intangibles — — 759 — 759 Interest expense — 231 96 (12 ) 315 Total benefits and expenses 23 233 5,960 (12 ) 6,204 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (25 ) (225 ) 438 — 188 Provision (benefit) for income taxes (7 ) (81 ) 115 — 27 Equity in income (loss) of subsidiaries (299 ) (319 ) — 618 — Income (loss) from continuing operations (317 ) (463 ) 323 618 161 Income (loss) from discontinued operations, net of taxes (6 ) — (328 ) — (334 ) Net income (loss) (323 ) (463 ) (5 ) 618 (173 ) Less: net income attributable to noncontrolling interests — — 150 — 150 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (323 ) $ (463 ) $ (155 ) $ 618 $ (323 ) The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 3,486 $ — $ 3,486 Net investment income (1 ) — 2,357 (11 ) 2,345 Net investment gains (losses) — — (11 ) — (11 ) Insurance and investment product fees and other — (3 ) 684 (1 ) 680 Total revenues (1 ) (3 ) 6,516 (12 ) 6,500 Benefits and expenses: Benefits and other changes in policy reserves — — 4,282 — 4,282 Interest credited — — 552 — 552 Acquisition and operating expenses, net of deferrals 15 — 824 — 839 Amortization of deferred acquisition costs and intangibles — — 325 — 325 Goodwill impairment — — 550 — 550 Interest expense — 244 95 (12 ) 327 Total benefits and expenses 15 244 6,628 (12 ) 6,875 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (16 ) (247 ) (112 ) — (375 ) Provision (benefit) for income taxes 13 (80 ) 55 (4 ) (16 ) Equity in income (loss) of subsidiaries (455 ) (389 ) — 844 — Income (loss) from continuing operations (484 ) (556 ) (167 ) 848 (359 ) Income (loss) from discontinued operations, net of taxes — — 19 — 19 Net income (loss) (484 ) (556 ) (148 ) 848 (340 ) Less: net income attributable to noncontrolling interests — — 144 — 144 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (484 ) $ (556 ) $ (292 ) $ 848 $ (484 ) The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (284 ) $ (358 ) $ (180 ) $ 584 $ (238 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 103 111 85 (212 ) 87 Net unrealized gains (losses) on other-than-temporarily impaired securities — (1 ) — 1 — Derivatives qualifying as hedges 217 217 231 (448 ) 217 Foreign currency translation and other adjustments (151 ) (127 ) (302 ) 278 (302 ) Total other comprehensive income (loss) 169 200 14 (381 ) 2 Total comprehensive income (loss) (115 ) (158 ) (166 ) 203 (236 ) Less: comprehensive income attributable to noncontrolling interests — — (121 ) — (121 ) Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (115 ) $ (158 ) $ (45 ) $ 203 $ (115 ) The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (844 ) $ (837 ) $ (721 ) $ 1,615 $ (787 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (62 ) (60 ) (67 ) 121 (68 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 2 1 (3 ) 1 Derivatives qualifying as hedges 101 101 105 (206 ) 101 Foreign currency translation and other adjustments (267 ) (229 ) (379 ) 496 (379 ) Total other comprehensive income (loss) (227 ) (186 ) (340 ) 408 (345 ) Total comprehensive income (loss) (1,071 ) (1,023 ) (1,061 ) 2,023 (1,132 ) Less: comprehensive income attributable to noncontrolling interests — — (61 ) — (61 ) Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (1,071 ) $ (1,023 ) $ (1,000 ) $ 2,023 $ (1,071 ) The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (323 ) $ (463 ) $ (5 ) $ 618 $ (173 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (708 ) (696 ) (729 ) 1,405 (728 ) Net unrealized gains (losses) on other-than-temporarily impaired securities — (1 ) — 1 — Derivatives qualifying as hedges 60 60 68 (128 ) 60 Foreign currency translation and other adjustments (344 ) (276 ) (619 ) 620 (619 ) Total other comprehensive income (loss) (992 ) (913 ) (1,280 ) 1,898 (1,287 ) Total comprehensive income (loss) (1,315 ) (1,376 ) (1,285 ) 2,516 (1,460 ) Less: comprehensive income attributable to noncontrolling interests — — (145 ) — (145 ) Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (1,315 ) $ (1,376 ) $ (1,140 ) $ 2,516 $ (1,315 ) The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (484 ) $ (556 ) $ (148 ) $ 848 $ (340 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 1,155 1,129 1,171 (2,284 ) 1,171 Net unrealized gains (losses) on other-than-temporarily impaired securities 8 9 8 (17 ) 8 Derivatives qualifying as hedges 434 434 460 (894 ) 434 Foreign currency translation and other adjustments (148 ) (109 ) (252 ) 257 (252 ) Total other comprehensive income (loss) 1,449 1,463 1,387 (2,938 ) 1,361 Total comprehensive income (loss) 965 907 1,239 (2,090 ) 1,021 Less: comprehensive income attributable to noncontrolling interests — — 56 — 56 Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ 965 $ 907 $ 1,183 $ (2,090 ) $ 965 The following table presents the condensed consolidating cash flow statement information for the nine months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (323 ) $ (463 ) $ (5 ) $ 618 $ (173 ) Less loss from discontinued operations, net of taxes 6 — 328 — 334 Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in (income) loss from subsidiaries 299 319 — (618 ) — Dividends from subsidiaries — 454 (454 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — — (80 ) — (80 ) Net investment losses (gains) — (37 ) 96 — 59 Charges assessed to policyholders — — (586 ) — (586 ) Acquisition costs deferred — — (226 ) — (226 ) Amortization of deferred acquisition costs and intangibles — — 759 — 759 Deferred income taxes (2 ) (102 ) (13 ) — (117 ) Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments — 27 (274 ) — (247 ) Stock-based compensation expense 16 — (2 ) — 14 Change in certain assets and liabilities: Accrued investment income and other assets — 3 (133 ) (3 ) (133 ) Insurance reserves — — 1,270 — 1,270 Current tax liabilities (1 ) 13 (88 ) 5 (71 ) Other liabilities, policy and contract claims and other policy-related balances — (1 ) 353 — 352 Cash from operating activities—discontinued operations — — 3 — 3 Net cash from operating activities (5 ) 213 948 2 1,158 Cash flows from investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 1 3,388 — 3,389 Commercial mortgage loans — — 640 — 640 Restricted commercial mortgage loans related to securitization entities — — 27 — 27 Proceeds from sales of investments: Fixed maturity and equity securities — — 1,333 — 1,333 Purchases and originations of investments: Fixed maturity and equity securities — — (6,836 ) — (6,836 ) Commercial mortgage loans — — (678 ) — (678 ) Other invested assets, net — (100 ) 63 (2 ) (39 ) Policy loans, net — — 23 — 23 Intercompany notes receivable 7 (24 ) (4 ) 21 — Capital contributions to subsidiaries — (25 ) 25 — — Cash transferred for purchase of a subsidiary — (202 ) 202 — — Cash from investing activities—discontinued operations — — (22 ) — (22 ) Net cash from investing activities 7 (350 ) (1,839 ) 19 (2,163 ) Cash flows from financing activities: Deposits to universal life and investment contracts — — 1,693 — 1,693 Withdrawals from universal life and investment contracts — — (1,677 ) — (1,677 ) Redemption of non-recourse funding obligations — — (45 ) — (45 ) Proceeds from the issuance of long-term debt — — 150 — 150 Repayment and repurchase of long-term debt — (50 ) (70 ) — (120 ) Repayment of borrowings related to securitization entities — — (26 ) — (26 ) Proceeds from sale of subsidiary shares to noncontrolling interests — — 226 — 226 Repurchase of subsidiary shares — — (17 ) — (17 ) Dividends paid to noncontrolling interests — — (145 ) — (145 ) Proceeds from intercompany notes payable — (2 ) 23 (21 ) — Other, net (2 ) (30 ) 7 — (25 ) Cash from financing activities—discontinued operations — — (33 ) — (33 ) Net cash from financing activities (2 ) (82 ) 86 (21 ) (19 ) Effect of exchange rate changes on cash and cash equivalents — — (86 ) — (86 ) Net change in cash and cash equivalents — (219 ) (891 ) — (1,110 ) Cash and cash equivalents at beginning of period — 953 3,965 — 4,918 Cash and cash equivalents at end of period — 734 3,074 — 3,808 Less cash and cash equivalents of discontinued operations at end of period — — 142 — 142 Cash and cash equivalents of continuing operations at end of period $ — $ 734 $ 2,932 $ — $ 3,666 The following table presents the condensed consolidating cash flow statement information for the nine months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (484 ) $ (556 ) $ (148 ) $ 848 $ (340 ) Less income from discontinued operations, net of taxes — — (19 ) — (19 ) Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in (income) loss from subsidiaries 455 389 — (844 ) — Dividends from subsidiaries — 563 (563 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — — (97 ) — (97 ) Net investment losses (gains) — — 11 — 11 Charges assessed to policyholders — — (580 ) — (580 ) Acquisition costs deferred — — (282 ) — (282 ) Amortization of deferred acquisition costs and intangibles — — 325 — 325 Goodwill impairment — — 550 — 550 Deferred income taxes 25 (137 ) (70 ) (4 ) (186 ) Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments — — 110 — 110 Stock-based compensation expense 15 — 4 — 19 Change in certain assets and liabilities: Accrued investment income and other assets (2 ) 44 (213 ) (4 ) (175 ) Insurance reserves — — 1,260 — 1,260 Current tax liabilities (16 ) (37 ) (132 ) — (185 ) Other liabilities, policy and contract claims and other policy-related balances 12 51 665 3 731 Cash from operating activities—discontinued operations — — (2 ) — (2 ) Net cash from operating activities 5 317 819 (1 ) 1,140 Cash flows from investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 3,638 — 3,638 Commercial mortgage loans — — 528 — 528 Restricted commercial mortgage loans related to securitization entities — — 24 — 24 Proceeds from sales of investments: Fixed maturity and equity securities — — 1,651 — 1,651 Purchases and originations of investments: Fixed maturity and equity securities — — (7,202 ) — (7,202 ) Commercial mortgage loans — — (709 ) — (709 ) Other invested assets, net — — 103 1 104 Policy loans, net — — 11 — 11 Intercompany notes receivable 8 (15 ) 9 (2 ) — Capital contributions to subsidiaries (12 ) — 12 — — Cash from investing activities—discontinued operations — (48 ) — (48 ) Net cash from investing activities (4 ) (15 ) (1,983 ) (1 ) (2,003 ) Cash flows from financing activities: Deposits to universal life and investment contracts — — 2,201 — 2,201 Withdrawals from universal life and investment contracts — — (1,950 ) — (1,950 ) Redemption of non-recourse funding obligations — — (28 ) — (28 ) Proceeds from the issuance of long-term debt — — 144 — 144 Repayment and repurchase of long-term debt — (485 ) (136 ) — (621 ) Repayment of borrowings related to securitization entities — — (24 ) — (24 ) Proceeds from sale of subsidiary shares to noncontrolling interests — — 517 — 517 Dividends paid to noncontrolling interests — — (46 ) — (46 ) Proceeds from intercompany notes payable 1 (17 ) 14 2 — Other, net (2 ) (31 ) 14 — (19 ) Cash from financing activities—discontinued operations — — (25 ) — (25 ) Net cash from financing activities (1 ) (533 ) 681 2 149 Effect of exchange rate changes on cash and cash equivalents — — (23 ) — (23 ) Net change in cash and cash equivalents — (231 ) (506 ) — (737 ) Cash and cash equivalents at beginning of period — 1,219 2,995 — 4,214 Cash and cash equivalents at end of period — 988 2,489 — 3,477 Less cash and cash equivalents of discontinued operations at end of period — — 193 — 193 Cash and cash equivalents from continuing operations at end of period $ — $ 988 $ 2,296 $ — $ 3,284 Our insurance company subsidiaries are restricted by state and foreign laws and regulations as to the amount of dividends they may pay to their parent without regulatory approval in any year, the purpose of which is to protect affected insurance policyholders and contractholders, not stockholders. Any dividends in excess of limits are deemed “extraordinary” and require approval. Based on estimated statutory results as of December 31, 2014, in accordance with applicable dividend restrictions, our subsidiaries could pay dividends of approximately $0.5 billion to us in 2015 without obtaining regulatory approval, and the remaining net assets are considered restricted. While the $0.5 billion is unrestricted, we do not expect our insurance subsidiaries to pay dividends to us in 2015 at this level as they retain capital for growth and to meet capital requirements and desired thresholds. As of September 30, 2015, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $13.1 billion and $13.2 billion, respectively. |
Accounting Changes (Policies)
Accounting Changes (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Pronouncements Recently Adopted | a) Accounting Pronouncements Recently Adopted On January 1, 2015, we early adopted new accounting guidance related to measuring the financial assets and financial liabilities of a consolidated collateralized financing entity. The guidance addresses the accounting for the measurement difference between the fair value of financial assets and the fair value of financial liabilities of a collateralized financing entity. The new guidance provides an alternative whereby a reporting entity could measure the financial assets and financial liabilities of the collateralized financing entity in its consolidated financial statements using the more observable of the fair values. There was no impact on our consolidated financial statements. On January 1, 2015, we adopted new accounting guidance related to the accounting for repurchase-to-maturity transactions and repurchase financings. The new guidance changed the accounting for repurchase-to-maturity transactions and repurchase financing such that they were consistent with secured borrowing accounting. In addition, the guidance required new disclosures for all repurchase agreements and securities lending transactions which were effective beginning in the second quarter of 2015. We do not have repurchase-to-maturity transactions, but have repurchase agreements and securities lending transactions that are subject to additional disclosures. This new guidance did not have an impact on our consolidated financial statements but did impact our disclosures. On January 1, 2015, we adopted new accounting guidance related to the accounting for investments in affordable housing projects that qualify for the low-income housing tax credit. The new guidance permits reporting entities to make an accounting policy election to account for investments in qualified affordable housing projects by amortizing the initial cost of the investment in proportion to the tax benefits received and recognize the net investment performance as a component of income tax expense (called the proportional amortization method) if certain conditions are met. The new guidance requires use of the equity method or cost method for investments in qualified affordable housing projects not accounted for using the proportional amortization method. The adoption of this new guidance did not have a material impact on our consolidated financial statements. On January 1, 2015, we early adopted new accounting guidance related to the accounting for share-based payment awards when the terms of an award provide that a performance target can be achieved after the requisite service period. The guidance requires that such performance targets should not be reflected in estimating the grant-date fair value of an award, and that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. We have a performance stock unit plan where awards for employees who are retirement eligible can vest on a pro-rata basis upon retirement even if retirement occurs before the performance target is achieved. There was no impact on our consolidated financial statements. |
Accounting Pronouncement Not Yet Adopted | b) Accounting Pronouncement Not Yet Adopted In May 2015, the Financial Accounting Standards Board (the “FASB”) issued new disclosure requirements for short-duration insurance contracts. The new guidance requires additional disclosures on short-duration policy and contract claims liabilities for incurred and paid claims development, unpaid claims and claims frequency. These new disclosures will be effective for us on December 31, 2016 with early adoption permitted and will only impact our mortgage insurance disclosures. In April 2015, the FASB issued new guidance related to the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. In August 2015, the FASB issued new guidance further clarifying that companies can make the election to present debt issuance costs related to revolving credit facilities as either an asset or as a direct deduction from the carrying amount of that debt liability. The new guidance related to debt issuance costs are both effective for us on January 1, 2016 and are required to be applied on a retrospective basis. We plan to early adopt this new guidance as of December 31, 2015 and expect approximately $45 million presented in other assets to be deducted from debt liabilities in our consolidated financial statements upon adoption. In February 2015, the FASB issued new accounting guidance related to consolidation. This guidance primarily impacts limited partnerships and similar legal entities, evaluation of fees paid to a decision maker as a variable interest, the effect of fee arrangements and related parties on the primary beneficiary determination and certain investment funds. This guidance is effective for us on January 1, 2016, with early adoption permitted. While we are in the process of determining the impact of this new guidance, we do not believe the impact will be significant to our consolidated financial statements. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (Loss) per Share | Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated: Three months ended Nine months ended (Amounts in millions, except per share amounts) 2015 2014 2015 2014 Weighted-average common shares used in basic earnings (loss) per common share calculations 497.4 496.6 497.3 496.4 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights — — 1.7 — Weighted-average common shares used in diluted earnings (loss) per common share calculations (1) 497.4 496.6 499.0 496.4 Income (loss) from continuing operations: Income (loss) from continuing operations $ (217 ) $ (793 ) $ 161 $ (359 ) Less: income from continuing operations attributable to noncontrolling interests 46 57 150 144 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ (263 ) $ (850 ) $ 11 $ (503 ) Basic per common share $ (0.53 ) $ (1.71 ) $ 0.02 $ (1.01 ) Diluted per common share $ (0.53 ) $ (1.71 ) $ 0.02 $ (1.01 ) Income (loss) from discontinued operations: Income (loss) from discontinued operations, net of taxes $ (21 ) $ 6 $ (334 ) $ 19 Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — — — Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ (21 ) $ 6 $ (334 ) $ 19 Basic per common share $ (0.04 ) $ 0.01 $ (0.67 ) $ 0.04 Diluted per common share $ (0.04 ) $ 0.01 $ (0.67 ) $ 0.04 Net income (loss): Income (loss) from continuing operations $ (217 ) $ (793 ) $ 161 $ (359 ) Income (loss) from discontinued operations, net of taxes (21 ) 6 (334 ) 19 Net loss (238 ) (787 ) (173 ) (340 ) Less: net income attributable to noncontrolling interests 46 57 150 144 Net loss available to Genworth Financial, Inc.’s common stockholders $ (284 ) $ (844 ) $ (323 ) $ (484 ) Basic per common share $ (0.57 ) $ (1.70 ) $ (0.65 ) $ (0.98 ) Diluted per common share $ (0.57 ) $ (1.70 ) $ (0.65 ) $ (0.98 ) (1) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders and net loss available to Genworth Financial, Inc.’s common stockholders for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.3 million, 5.4 million and 6.4 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders and net loss available to Genworth Financial, Inc.’s common stockholders for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, dilutive potential weighted-average common shares outstanding would have been 498.7 million, 502.0 million and 502.8 million, respectively. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Net Investment Income | Sources of net investment income were as follows for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Fixed maturity securities—taxable $ 647 $ 643 $ 1,924 $ 1,940 Fixed maturity securities—non-taxable 3 3 9 9 Commercial mortgage loans 84 82 252 246 Restricted commercial mortgage loans related to securitization entities 3 3 10 11 Equity securities 3 3 11 11 Other invested assets 26 27 103 81 Restricted other invested assets related to securitization entities 1 1 3 3 Policy loans 33 32 101 95 Cash, cash equivalents and short-term investments 3 7 10 19 Gross investment income before expenses and fees 803 801 2,423 2,415 Expenses and fees (20 ) (23 ) (66 ) (70 ) Net investment income $ 783 $ 778 $ 2,357 $ 2,345 |
Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Available-for-sale securities: Realized gains $ 14 $ 17 $ 49 $ 61 Realized losses (18 ) (5 ) (36 ) (42 ) Net realized gains (losses) on available-for-sale securities (4 ) 12 13 19 Impairments: Total other-than-temporary impairments (10 ) (13 ) (13 ) (16 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) 1 7 1 7 Net other-than-temporary impairments (9 ) (6 ) (12 ) (9 ) Trading securities 12 4 2 24 Commercial mortgage loans 1 3 5 9 Net gains (losses) related to securitization entities (1 ) (1 ) 9 14 Derivative instruments (1) (53 ) (38 ) (79 ) (66 ) Contingent consideration adjustment 2 (1 ) 2 (1 ) Other 1 — 1 (1 ) Net investment gains (losses) $ (51 ) $ (27 ) $ (59 ) $ (11 ) (1) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Credit Losses Recognized in Net Income (Loss) | The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (loss) (“OCI”) as of and for the periods indicated: As of or for the three months ended September 30, As of or for the nine months ended September 30, (Amounts in millions) 2015 2014 2015 2014 Beginning balance $ 75 $ 95 $ 83 $ 101 Additions: Other-than-temporary impairments not previously recognized — 1 — 2 Reductions: Securities sold, paid down or disposed (9 ) (7 ) (17 ) (14 ) Ending balance $ 66 $ 89 $ 66 $ 89 |
Unrealized Investment Gains and Losses | Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of the dates indicated: (Amounts in millions) September 30, 2015 December 31, 2014 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 4,213 $ 5,560 Equity securities (17 ) 32 Other invested assets — (2 ) Subtotal 4,196 5,590 Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (1,386 ) (1,656 ) Income taxes, net (976 ) (1,372 ) Net unrealized investment gains (losses) 1,834 2,562 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 103 109 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,731 $ 2,453 |
Change in Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities Reported in Accumulated Other Comprehensive Income (Loss) | The change in net unrealized gains (losses) on available-for-sale investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the periods indicated: As of or for the (Amounts in millions) 2015 2014 Beginning balance $ 1,628 $ 2,128 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 70 (225 ) Adjustment to deferred acquisition costs 32 35 Adjustment to present value of future profits (5 ) 36 Adjustment to sales inducements 9 9 Adjustment to benefit reserves 23 49 Provision for income taxes (50 ) 33 Change in unrealized gains (losses) on investment securities 79 (63 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $(5) and $2 8 (4 ) Change in net unrealized investment gains (losses) 87 (67 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (16 ) (6 ) Ending balance $ 1,731 $ 2,067 As of or for the nine months ended September 30, (Amounts in millions) 2015 2014 Beginning balance $ 2,453 $ 926 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (1,393 ) 2,399 Adjustment to deferred acquisition costs 102 (160 ) Adjustment to present value of future profits 45 (55 ) Adjustment to sales inducements 12 (19 ) Adjustment to benefit reserves 111 (339 ) Provision for income taxes 396 (640 ) Change in unrealized gains (losses) on investment securities (727 ) 1,186 Reclassification adjustments to net investment (gains) losses, net of taxes of $— and $4 (1 ) (7 ) Change in net unrealized investment gains (losses) (728 ) 1,179 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (6 ) 38 Ending balance $ 1,731 $ 2,067 |
Fixed Maturity and Equity Securities | As of September 30, 2015, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,065 $ 855 $ — $ (7 ) $ — $ 5,913 State and political subdivisions 2,280 195 — (27 ) — 2,448 Non-U.S. government 1,836 120 — (4 ) — 1,952 U.S. corporate: Utilities 3,398 420 — (18 ) — 3,800 Energy 2,664 178 — (71 ) — 2,771 Finance and insurance 5,422 447 17 (37 ) — 5,849 Consumer—non-cyclical 3,742 423 — (23 ) — 4,142 Technology and communications 2,292 144 — (28 ) — 2,408 Industrial 1,254 75 — (28 ) — 1,301 Capital goods 1,873 215 — (11 ) — 2,077 Consumer—cyclical 1,732 114 — (13 ) — 1,833 Transportation 1,012 89 — (10 ) — 1,091 Other 399 27 — (3 ) — 423 Total U.S. corporate 23,788 2,132 17 (242 ) — 25,695 Non-U.S. corporate: Utilities 861 42 — (6 ) — 897 Energy 1,856 105 — (70 ) — 1,891 Finance and insurance 2,709 173 1 (6 ) — 2,877 Consumer—non-cyclical 740 30 — (15 ) — 755 Technology and communications 975 43 — (22 ) — 996 Industrial 1,129 34 — (67 ) — 1,096 Capital goods 600 25 — (15 ) — 610 Consumer—cyclical 561 10 — (5 ) — 566 Transportation 556 59 — (4 ) — 611 Other 2,706 218 — (24 ) — 2,900 Total non-U.S. corporate 12,693 739 1 (234 ) — 13,199 Residential mortgage-backed 4,728 389 11 (10 ) — 5,118 Commercial mortgage-backed 2,464 126 4 (7 ) — 2,587 Other asset-backed 3,953 25 1 (40 ) — 3,939 Total fixed maturity securities 56,807 4,581 34 (571 ) — 60,851 Equity securities 300 5 — (32 ) — 273 Total available-for-sale securities $ 57,107 $ 4,586 $ 34 $ (603 ) $ — $ 61,124 As of December 31, 2014, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,006 $ 995 $ — $ (1 ) $ — $ 6,000 State and political subdivisions 2,013 236 — (27 ) — 2,222 Non-U.S. government 1,778 144 — (2 ) — 1,920 U.S. corporate: Utilities 3,292 577 — (5 ) — 3,864 Energy 2,498 265 — (21 ) — 2,742 Finance and insurance 5,109 537 20 (13 ) — 5,653 Consumer—non-cyclical 3,489 538 — (8 ) — 4,019 Technology and communications 2,112 217 — (4 ) — 2,325 Industrial 1,195 100 — (8 ) — 1,287 Capital goods 1,748 263 — (5 ) — 2,006 Consumer—cyclical 1,750 158 — (8 ) — 1,900 Transportation 929 114 — (4 ) — 1,039 Other 370 31 — — — 401 Total U.S. corporate 22,492 2,800 20 (76 ) — 25,236 Non-U.S. corporate: Utilities 867 48 — (2 ) — 913 Energy 1,925 163 — (38 ) — 2,050 Finance and insurance 2,812 203 — (3 ) — 3,012 Consumer—non-cyclical 780 41 — (9 ) — 812 Technology and communications 999 71 — (4 ) — 1,066 Industrial 1,178 65 — (18 ) — 1,225 Capital goods 605 31 — (5 ) — 631 Consumer—cyclical 535 14 — — — 549 Transportation 525 70 — (1 ) — 594 Other 3,169 257 — (15 ) — 3,411 Total non-U.S. corporate 13,395 963 — (95 ) — 14,263 Residential mortgage-backed 4,871 362 13 (17 ) (1 ) 5,228 Commercial mortgage-backed 2,564 143 4 (9 ) — 2,702 Other asset-backed 3,735 23 1 (54 ) — 3,705 Total fixed maturity securities 55,854 5,666 38 (281 ) (1 ) 61,276 Equity securities 250 32 — (7 ) — 275 Total available-for-sale securities $ 56,104 $ 5,698 $ 38 $ (288 ) $ (1 ) $ 61,551 |
Gross Unrealized Losses and Fair Values of Investment Securities | The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of September 30, 2015: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 406 $ (7 ) 10 $ — $ — — $ 406 $ (7 ) 10 State and political subdivisions 334 (10 ) 54 155 (17 ) 16 489 (27 ) 70 Non-U.S. government 148 (4 ) 33 — — — 148 (4 ) 33 U.S. corporate 4,313 (198 ) 632 429 (44 ) 69 4,742 (242 ) 701 Non-U.S. corporate 2,643 (165 ) 371 376 (69 ) 56 3,019 (234 ) 427 Residential mortgage-backed 396 (5 ) 37 109 (5 ) 38 505 (10 ) 75 Commercial mortgage-backed 320 (6 ) 54 50 (1 ) 14 370 (7 ) 68 Other asset-backed 870 (5 ) 165 330 (35 ) 55 1,200 (40 ) 220 Subtotal, fixed maturity securities 9,430 (400 ) 1,356 1,449 (171 ) 248 10,879 (571 ) 1,604 Equity securities 182 (32 ) 65 — — — 182 (32 ) 65 Total for securities in an unrealized loss position $ 9,612 $ (432 ) 1,421 $ 1,449 $ (171 ) 248 $ 11,061 $ (603 ) 1,669 % Below cost—fixed maturity securities: <20% Below cost $ 9,298 $ (340 ) 1,329 $ 1,238 $ (78 ) 219 $ 10,536 $ (418 ) 1,548 20%-50% Below cost 127 (50 ) 25 206 (86 ) 27 333 (136 ) 52 >50% Below cost 5 (10 ) 2 5 (7 ) 2 10 (17 ) 4 Total fixed maturity securities 9,430 (400 ) 1,356 1,449 (171 ) 248 10,879 (571 ) 1,604 % Below cost—equity securities: <20% Below cost 106 (9 ) 41 — — — 106 (9 ) 41 20%-50% Below cost 76 (23 ) 24 — — — 76 (23 ) 24 Total equity securities 182 (32 ) 65 — — — 182 (32 ) 65 Total for securities in an unrealized loss position $ 9,612 $ (432 ) 1,421 $ 1,449 $ (171 ) 248 $ 11,061 $ (603 ) 1,669 Investment grade $ 8,632 $ (332 ) 1,248 $ 1,194 $ (105 ) 199 $ 9,826 $ (437 ) 1,447 Below investment grade 980 (100 ) 173 255 (66 ) 49 1,235 (166 ) 222 Total for securities in an unrealized loss position $ 9,612 $ (432 ) 1,421 $ 1,449 $ (171 ) 248 $ 11,061 $ (603 ) 1,669 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of September 30, 2015: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 329 $ (17 ) 51 $ 12 $ (1 ) 6 $ 341 $ (18 ) 57 Energy 808 (58 ) 124 106 (13 ) 15 914 (71 ) 139 Finance and insurance 903 (26 ) 125 102 (11 ) 15 1,005 (37 ) 140 Consumer—non-cyclical 522 (19 ) 74 56 (4 ) 11 578 (23 ) 85 Technology and communications 604 (28 ) 89 — — — 604 (28 ) 89 Industrial 355 (19 ) 50 42 (9 ) 8 397 (28 ) 58 Capital goods 256 (8 ) 42 25 (3 ) 4 281 (11 ) 46 Consumer—cyclical 316 (11 ) 48 64 (2 ) 8 380 (13 ) 56 Transportation 166 (9 ) 24 22 (1 ) 2 188 (10 ) 26 Other 54 (3 ) 5 — — — 54 (3 ) 5 Subtotal, U.S. corporate securities 4,313 (198 ) 632 429 (44 ) 69 4,742 (242 ) 701 Non-U.S. corporate: Utilities 111 (4 ) 17 27 (2 ) 3 138 (6 ) 20 Energy 554 (55 ) 68 104 (15 ) 13 658 (70 ) 81 Finance and insurance 441 (6 ) 65 30 — 7 471 (6 ) 72 Consumer—non-cyclical 214 (12 ) 24 32 (3 ) 3 246 (15 ) 27 Technology and communications 255 (10 ) 36 28 (12 ) 6 283 (22 ) 42 Industrial 442 (42 ) 62 104 (25 ) 15 546 (67 ) 77 Capital goods 137 (10 ) 25 7 (5 ) 3 144 (15 ) 28 Consumer—cyclical 170 (5 ) 21 — — — 170 (5 ) 21 Transportation 105 (4 ) 15 — — — 105 (4 ) 15 Other 214 (17 ) 38 44 (7 ) 6 258 (24 ) 44 Subtotal, non-U.S. corporate securities 2,643 (165 ) 371 376 (69 ) 56 3,019 (234 ) 427 Total for corporate securities in an unrealized loss position $ 6,956 $ (363 ) 1,003 $ 805 $ (113 ) 125 $ 7,761 $ (476 ) 1,128 The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2014: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross (1) Number of Fair Gross (1) Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ — $ — — $ 75 $ (1 ) 10 $ 75 $ (1 ) 10 State and political subdivisions 9 — 7 267 (27 ) 45 276 (27 ) 52 Non-U.S. government 64 (1 ) 15 22 (1 ) 4 86 (2 ) 19 U.S. corporate 1,646 (33 ) 233 1,201 (43 ) 174 2,847 (76 ) 407 Non-U.S. corporate 1,529 (67 ) 230 504 (28 ) 67 2,033 (95 ) 297 Residential mortgage-backed 180 (1 ) 24 249 (17 ) 87 429 (18 ) 111 Commercial mortgage-backed 163 — 21 362 (9 ) 49 525 (9 ) 70 Other asset-backed 1,551 (12 ) 215 487 (42 ) 55 2,038 (54 ) 270 Subtotal, fixed maturity securities 5,142 (114 ) 745 3,167 (168 ) 491 8,309 (282 ) 1,236 Equity securities 30 (3 ) 46 48 (4 ) 6 78 (7 ) 52 Total for securities in an unrealized loss position $ 5,172 $ (117 ) 791 $ 3,215 $ (172 ) 497 $ 8,387 $ (289 ) 1,288 % Below cost—fixed maturity securities: <20% Below cost $ 5,105 $ (103 ) 741 $ 3,036 $ (114 ) 470 $ 8,141 $ (217 ) 1,211 20%-50% Below cost 37 (11 ) 4 131 (53 ) 15 168 (64 ) 19 >50% Below cost — — — — (1 ) 6 — (1 ) 6 Total fixed maturity securities 5,142 (114 ) 745 3,167 (168 ) 491 8,309 (282 ) 1,236 % Below cost—equity securities: <20% Below cost 26 (2 ) 40 48 (4 ) 6 74 (6 ) 46 20%-50% Below cost 4 (1 ) 6 — — — 4 (1 ) 6 Total equity securities 30 (3 ) 46 48 (4 ) 6 78 (7 ) 52 Total for securities in an unrealized loss position $ 5,172 $ (117 ) 791 $ 3,215 $ (172 ) 497 $ 8,387 $ (289 ) 1,288 Investment grade $ 4,581 $ (75 ) 664 $ 2,918 $ (145 ) 424 $ 7,499 $ (220 ) 1,088 Below investment grade (2) 591 (42 ) 127 297 (27 ) 73 888 (69 ) 200 Total for securities in an unrealized loss position $ 5,172 $ (117 ) 791 $ 3,215 $ (172 ) 497 $ 8,387 $ (289 ) 1,288 (1) Amounts included $1 million of unrealized losses on other-than-temporarily impaired securities. (2) Amounts that have been in a continuous unrealized loss position for 12 months or more included $1 million of unrealized losses on other-than-temporarily impaired securities. The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2014: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross unrealized losses Number of Fair value Gross unrealized losses Number of securities Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 55 $ — 10 $ 164 $ (5 ) 23 $ 219 $ (5 ) 33 Energy 404 (16 ) 56 96 (5 ) 15 500 (21 ) 71 Finance and insurance 401 (3 ) 57 257 (10 ) 35 658 (13 ) 92 Consumer—non-cyclical 165 (3 ) 21 182 (5 ) 32 347 (8 ) 53 Technology and communications 181 (3 ) 27 97 (1 ) 15 278 (4 ) 42 Industrial 151 (4 ) 21 80 (4 ) 11 231 (8 ) 32 Capital goods 85 — 13 122 (5 ) 18 207 (5 ) 31 Consumer—cyclical 132 (2 ) 17 139 (6 ) 18 271 (8 ) 35 Transportation 52 (2 ) 9 57 (2 ) 6 109 (4 ) 15 Other 20 — 2 7 — 1 27 — 3 Subtotal, U.S. corporate securities 1,646 (33 ) 233 1,201 (43 ) 174 2,847 (76 ) 407 Non-U.S. corporate: Utilities 80 — 14 43 (2 ) 5 123 (2 ) 19 Energy 449 (33 ) 60 58 (5 ) 13 507 (38 ) 73 Finance and insurance 261 (2 ) 41 29 (1 ) 6 290 (3 ) 47 Consumer—non-cyclical 142 (6 ) 13 83 (3 ) 9 225 (9 ) 22 Technology and communications 88 (2 ) 18 81 (2 ) 8 169 (4 ) 26 Industrial 218 (9 ) 31 116 (9 ) 15 334 (18 ) 46 Capital goods 68 (2 ) 10 38 (3 ) 4 106 (5 ) 14 Consumer—cyclical 10 — 3 — — — 10 — 3 Transportation 34 — 7 14 (1 ) 1 48 (1 ) 8 Other 179 (13 ) 33 42 (2 ) 6 221 (15 ) 39 Subtotal, non-U.S. corporate securities 1,529 (67 ) 230 504 (28 ) 67 2,033 (95 ) 297 Total for corporate securities in an unrealized loss position $ 3,175 $ (100 ) 463 $ 1,705 $ (71 ) 241 $ 4,880 $ (171 ) 704 |
Fixed Maturity Securities More Than 20% Below Cost and in Continuous Loss Position for 12 Months or More by Asset Class | The following tables present the concentration of gross unrealized losses and fair values of fixed maturity securities that were more than 20% below cost and in a continuous unrealized loss position for 12 months or more by asset class as of September 30, 2015: Investment Grade 20% to 50% Greater than 50% (Dollar amounts in millions) Fair Gross % of total Number of Fair Gross % of total Number of Fixed maturity securities: State and political subdivisions $ 9 $ (4 ) 1 % 1 $ — $ — — % — U.S. corporate—industrial 18 (5 ) 1 2 — — — — Non-U.S. corporate: Utilities 4 (1 ) — 1 — — — — Energy 22 (6 ) 1 2 — — — — Industrial 24 (7 ) 1 3 — — — — Capital goods 3 (3 ) 1 1 — — — — Total non-U.S. corporate 53 (17 ) 3 7 — — — — Structured securities: Other asset-backed 67 (25 ) 4 4 — — — — Total structured securities 67 (25 ) 4 4 — — — — Total $ 147 $ (51 ) 9 % 14 $ — $ — — % — Below Investment Grade 20% to 50% Greater than 50% (Dollar amounts in millions) Fair value Gross unrealized losses % of total gross unrealized losses Number of securities Fair value Gross unrealized losses % of total gross unrealized losses Number of securities Fixed maturity securities: U.S. corporate: Energy $ 4 $ (1 ) — % 1 $ — $ — — % — Finance and insurance 7 (3 ) 1 1 — — — — Consumer—non-cyclical 4 (1 ) — 1 — — — — Industrial 4 (2 ) — 1 — — — — Total U.S. corporate 19 (7 ) 1 4 — — — — Non-U.S. corporate: Energy 4 (1 ) — 1 1 (2 ) — 1 Technology and communications 7 (7 ) 1 2 4 (5 ) — 1 Industrial 14 (11 ) 2 3 — — — — Capital goods 3 (2 ) 1 1 — — — — Other 4 (1 ) — 1 — — — — Total non-U.S. corporate 32 (22 ) 4 8 5 (7 ) — 2 Structured securities: Other asset-backed 8 (6 ) 1 1 — — — — Total structured securities 8 (6 ) 1 1 — — — — Total $ 59 $ (35 ) 6 % 13 $ 5 $ (7 ) — % 2 |
Maturity Distribution of Fixed Maturity Securities | The scheduled maturity distribution of fixed maturity securities as of September 30, 2015 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. (Amounts in millions) Amortized cost or cost Fair value Due one year or less $ 2,135 $ 2,147 Due after one year through five years 10,474 10,950 Due after five years through ten years 11,824 12,155 Due after ten years 21,229 23,955 Subtotal 45,662 49,207 Residential mortgage-backed 4,728 5,118 Commercial mortgage-backed 2,464 2,587 Other asset-backed 3,953 3,939 Total $ 56,807 $ 60,851 |
Commercial Mortgage Loans by Property Type | The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated: September 30, 2015 December 31, 2014 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,259 37 % $ 2,150 35 % Office 1,594 26 1,643 27 Industrial 1,580 26 1,597 26 Apartments 458 7 494 8 Mixed use/other 260 4 239 4 Subtotal 6,151 100 % 6,123 100 % Unamortized balance of loan origination fees and costs (1 ) (1 ) Allowance for losses (17 ) (22 ) Total $ 6,133 $ 6,100 |
Commercial Mortgage Loans by Geographic Region | September 30, 2015 December 31, 2014 (Amounts in millions) Carrying % of Carrying % of Geographic region: Pacific $ 1,594 26 % $ 1,636 27 % South Atlantic 1,582 26 1,673 27 Middle Atlantic 860 14 826 14 Mountain 588 10 536 9 West North Central 396 6 382 6 East North Central 383 6 397 7 West South Central 295 5 268 4 New England 279 4 264 4 East South Central 174 3 141 2 Subtotal 6,151 100 % 6,123 100 % Unamortized balance of loan origination fees and costs (1 ) (1 ) Allowance for losses (17 ) (22 ) Total $ 6,133 $ 6,100 |
Aging of Past Due Commercial Mortgage Loans by Property Type | The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: September 30, 2015 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,259 $ 2,259 Office — — 5 5 1,589 1,594 Industrial — — — — 1,580 1,580 Apartments — — — — 458 458 Mixed use/other — — — — 260 260 Total recorded investment $ — $ — $ 5 $ 5 $ 6,146 $ 6,151 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2014 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,150 $ 2,150 Office — — 6 6 1,637 1,643 Industrial — — 2 2 1,595 1,597 Apartments — — — — 494 494 Mixed use/other — — — — 239 239 Total recorded investment $ — $ — $ 8 $ 8 $ 6,115 $ 6,123 % of total commercial mortgage loans — % — % — % — % 100 % 100 % |
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans | The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans as of or for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Allowance for credit losses: Beginning balance $ 18 $ 27 $ 22 $ 33 Charge-offs (1 ) — (4 ) (1 ) Recoveries — — — — Provision — (3 ) (1 ) (8 ) Ending balance $ 17 $ 24 $ 17 $ 24 Ending allowance for individually impaired loans $ — $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 17 $ 24 $ 17 $ 24 Recorded investment: Ending balance $ 6,151 $ 6,101 $ 6,151 $ 6,101 Ending balance of individually impaired loans $ 19 $ 17 $ 19 $ 17 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,132 $ 6,084 $ 6,132 $ 6,084 |
Average Loan-to-Value of Commercial Mortgage Loans by Property Type | The following tables set forth the loan-to-value of commercial mortgage loans by property type as of the dates indicated: September 30, 2015 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 702 $ 408 $ 1,069 $ 62 $ 18 $ 2,259 Office 437 291 773 73 20 1,594 Industrial 436 278 802 62 2 1,580 Apartments 180 75 195 8 — 458 Mixed use/other 53 31 170 6 — 260 Total recorded investment $ 1,808 $ 1,083 $ 3,009 $ 211 $ 40 $ 6,151 % of total 29 % 18 % 49 % 3 % 1 % 100 % Weighted-average debt service coverage ratio 2.12 1.78 1.63 0.93 0.76 1.77 (1) Included $5 million of impaired loans and $35 million of loans in good standing, where borrowers continued to make timely payments, with a total weighted-average loan-to-value of 120%. December 31, 2014 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 671 $ 419 $ 967 $ 75 $ 18 $ 2,150 Office 383 278 782 164 36 1,643 Industrial 451 285 778 60 23 1,597 Apartments 211 76 199 8 — 494 Mixed use/other 45 43 145 6 — 239 Total recorded investment $ 1,761 $ 1,101 $ 2,871 $ 313 $ 77 $ 6,123 % of total 29 % 18 % 47 % 5 % 1 % 100 % Weighted-average debt service coverage ratio 2.27 1.75 1.61 1.02 0.72 1.78 (1) Included $15 million of impaired loans, $6 million of loans past due and not individually impaired and $56 million of loans in good standing, where borrowers continued to make timely payments, with a total weighted-average loan-to-value of 120%. |
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type | The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated: September 30, 2015 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 66 $ 236 $ 560 $ 960 $ 437 $ 2,259 Office 96 75 279 790 347 1,587 Industrial 149 130 221 723 357 1,580 Apartments 1 41 80 203 133 458 Mixed use/other 6 1 79 136 38 260 Total recorded investment $ 318 $ 483 $ 1,219 $ 2,812 $ 1,312 $ 6,144 % of total 5 % 8 % 20 % 46 % 21 % 100 % Weighted-average loan-to-value 72 % 62 % 59 % 60 % 46 % 58 % December 31, 2014 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 80 $ 253 $ 524 $ 870 $ 423 $ 2,150 Office 119 101 247 780 389 1,636 Industrial 158 142 246 706 343 1,595 Apartments 1 48 88 186 171 494 Mixed use/other 6 1 61 135 36 239 Total recorded investment $ 364 $ 545 $ 1,166 $ 2,677 $ 1,362 $ 6,114 % of total 6 % 9 % 19 % 44 % 22 % 100 % Weighted-average loan-to-value 77 % 64 % 64 % 59 % 45 % 59 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule Of Positions in Derivative Instruments | The following table sets forth our positions in derivative instruments as of the dates indicated: Derivative assets Derivative liabilities Fair value Fair value (Amounts in millions) Balance sheet classification September 30, December 31, Balance sheet classification September 30, December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $ 766 $ 639 Other liabilities $ 41 $ 27 Inflation indexed swaps Other invested assets 2 — Other liabilities 14 42 Foreign currency swaps Other invested assets 8 6 Other liabilities — — Total cash flow hedges 776 645 55 69 Total derivatives designated as hedges 776 645 55 69 Derivatives not designated as hedges Interest rate swaps Other invested assets 480 452 Other liabilities 249 177 Interest rate swaps related to securitization entities Restricted other invested assets — — Other liabilities 30 26 Foreign currency swaps Other invested assets — — Other liabilities 22 7 Credit default swaps Other invested assets 1 4 Other liabilities — — Credit default swaps related to securitization entities Restricted other invested assets — — Other liabilities 10 17 Equity index options Other invested assets 15 17 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets 15 — Other liabilities — 1 Forward bond purchase commitments Other invested assets 13 — Other liabilities — — Other foreign currency contracts Other invested assets 25 14 Other liabilities 34 13 GMWB embedded derivatives Reinsurance recoverable (1) 19 13 Policyholder account balances (2) 390 291 Fixed index annuity embedded derivatives Other assets — — Policyholder account balances (3) 304 276 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (4) 10 7 Total derivatives not designated as hedges 568 500 1,049 815 Total derivatives $ 1,344 $ 1,145 $ 1,104 $ 884 (1) Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits (“GMWB”) liabilities. (2) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (3) Represents the embedded derivatives associated with our fixed index annuity liabilities. (4) Represents the embedded derivatives associated with our indexed universal life liabilities. |
Activity Associated with Derivative Instruments | The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ September 30, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,961 $ — $ (43 ) $ 11,918 Inflation indexed swaps Notional 571 13 (11 ) 573 Foreign currency swaps Notional 35 — — 35 Total cash flow hedges 12,567 13 (54 ) 12,526 Total derivatives designated as hedges 12,567 13 (54 ) 12,526 Derivatives not designated as hedges Interest rate swaps Notional 5,074 1,850 (893 ) 6,031 Interest rate swaps related to securitization entities Notional 77 — (8 ) 69 Credit default swaps Notional 394 — (250 ) 144 Credit default swaps related to securitization entities Notional 312 — — 312 Equity index options Notional 994 483 (517 ) 960 Financial futures Notional 1,331 4,251 (4,280 ) 1,302 Equity return swaps Notional 108 286 (263 ) 131 Foreign currency swaps Notional 104 37 — 141 Forward bond purchase commitments Notional — 1,140 — 1,140 Other foreign currency contracts Notional 425 1,136 (810 ) 751 Total derivatives not designated as hedges 8,819 9,183 (7,021 ) 10,981 Total derivatives $ 21,386 $ 9,196 $ (7,075 ) $ 23,507 (Number of policies) Measurement December 31, Additions Maturities/ September 30, Derivatives not designated as hedges GMWB embedded derivatives Policies 39,015 — (2,202 ) 36,813 Fixed index annuity embedded derivatives Policies 13,901 2,950 (275 ) 16,576 Indexed universal life embedded derivatives Policies 421 395 (25 ) 791 |
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges | The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2015: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain (loss) Interest rate swaps hedging assets $ 344 $ 22 Net investment income $ 4 Net investment gains (losses) Interest rate swaps hedging liabilities (23 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps 32 (5 ) Net investment income 1 Net investment gains (losses) Forward bond purchase commitments — 1 Net investment income — Net investment gains (losses) Total $ 353 $ 18 $ 5 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended September 30, 2014: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain (loss) Interest rate swaps hedging assets $ 151 $ 17 Net investment income $ 2 Net investment gains (losses) Interest rate swaps hedging liabilities (8 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps 20 (3 ) Net investment income — Net investment gains (losses) Foreign currency swaps 2 — Net investment income — Net investment gains (losses) Forward bond purchase commitments 4 — Net investment income — Net investment gains (losses) Total $ 169 $ 14 $ 2 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2015: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain (loss) Interest rate swaps hedging assets $ 135 $ 61 Net investment income $ 1 Net investment gains (losses) Interest rate swaps hedging liabilities (14 ) — Interest expense — Net investment gains (losses) Inflation indexed 29 (2 ) Net investment income 1 Net investment gains (losses) Foreign currency 2 — Net investment income — Net investment gains (losses) Forward bond purchase commitments — 1 Net investment income — Net investment gains (losses) Total $ 152 $ 60 $ 2 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the nine months ended September 30, 2014: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain (loss) Interest rate swaps hedging assets $ 723 $ 45 Net investment income $ 9 Net investment gains (losses) Interest rate swaps hedging liabilities (42 ) 1 Interest expense — Net investment gains (losses) Inflation indexed (10 ) (11 ) Net investment income — Net investment gains (losses) Foreign currency 2 — Net investment income — Net investment gains (losses) Forward bond purchase commitments 32 — Net investment income — Net investment gains (losses) Total $ 705 $ 35 $ 9 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. |
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges | The following tables provide a reconciliation of current period changes, net of applicable income taxes, for these designated derivatives presented in the separate component of stockholders’ equity labeled “derivatives qualifying as hedges,” for the periods indicated: Three months ended (Amounts in millions) 2015 2014 Derivatives qualifying as effective accounting hedges as of July 1 $ 1,913 $ 1,652 Current period increases (decreases) in fair value, net of deferred taxes of $(124) and $(59) 229 110 Reclassification to net (income) loss, net of deferred taxes of $6 and $5 (12 ) (9 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,130 $ 1,753 Nine months ended (Amounts in millions) 2015 2014 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,070 $ 1,319 Current period increases (decreases) in fair value, net of deferred taxes of $(53) and $(248) 99 457 Reclassification to net (income) loss, net of deferred taxes of $21 and $12 (39 ) (23 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,130 $ 1,753 |
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives Not Designated as Hedges | The following tables provide the pre-tax gain (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the periods indicated: Three months ended September 30, Classification of gain (loss) recognized in net income (loss) (Amounts in millions) 2015 2014 Interest rate swaps $ (12 ) $ (3 ) Net investment gains (losses) Interest rate swaps related to securitization entities (5 ) 1 Net investment gains (losses) Credit default swaps related to securitization entities (1 ) (2 ) Net investment gains (losses) Equity index options 6 (1 ) Net investment gains (losses) Financial futures 13 22 Net investment gains (losses) Equity return swaps 11 6 Net investment gains (losses) Other foreign currency contracts 4 5 Net investment gains (losses) Foreign currency swaps (9 ) (4 ) Net investment gains (losses) Forward bond purchase commitments 13 — Net investment gains (losses) GMWB embedded derivatives (117 ) (58 ) Net investment gains (losses) Fixed index annuity embedded derivatives 31 (7 ) Net investment gains (losses) Indexed universal life embedded derivatives 2 — Net investment gains (losses) Total derivatives not designated as hedges $ (64 ) $ (41 ) Nine months ended September 30, Classification of gain (loss) recognized in net income (loss) (Amounts in millions) 2015 2014 Interest rate swaps $ (13 ) $ (8 ) Net investment gains (losses) Interest rate swaps related to securitization entities (5 ) (5 ) Net investment gains (losses) Credit default swaps 1 — Net investment gains (losses) Credit default swaps related to securitization entities 10 16 Net investment gains (losses) Equity index options (11 ) (19 ) Net investment gains (losses) Financial futures (18 ) 66 Net investment gains (losses) Equity return swaps 3 1 Net investment gains (losses) Other foreign currency contracts 10 (6 ) Net investment gains (losses) Foreign currency swaps (17 ) (3 ) Net investment gains (losses) Forward bond purchase commitments 13 — Net investment gains (losses) GMWB embedded derivatives (68 ) (87 ) Net investment gains (losses) Fixed index annuity embedded derivatives 14 (19 ) Net investment gains (losses) Indexed universal life embedded derivatives 5 — Net investment gains (losses) Total derivatives not designated as hedges $ (76 ) $ (64 ) |
Derivative Assets and Liabilities Subject to Master Netting Arrangement | The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated: September 30, 2015 December 31, 2014 (Amounts in millions) Derivatives (1) Derivatives (2) Net Derivatives (1) Derivatives (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 1,367 $ 385 $ 982 $ 1,157 $ 273 $ 884 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 1,367 385 982 1,157 273 884 Gross amounts not offset in the balance sheet: Financial instruments (3) (300 ) (300 ) — (227 ) (227 ) — Collateral received (827 ) — (827 ) (884 ) — (884 ) Collateral pledged — (252 ) 252 — (49 ) 49 Over collateralization 5 167 (162 ) 1 5 (4 ) Net amount $ 245 $ — $ 245 $ 47 $ 2 $ 45 (1) Included $42 million and $25 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2015 and December 31, 2014, respectively. (2) Included $25 million and $6 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2015 and December 31, 2014, respectively. (3) Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. |
Schedule of Credit Default Swaps Where We Sell Protection on Single Name Reference Entities and Fair Values | The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated: September 30, 2015 December 31, 2014 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Investment grade Matures in less than one year $ — $ — $ — $ — $ — $ — Matures after one year through five years 39 — — 39 1 — Total credit default swaps on single name reference entities $ 39 $ — $ — $ 39 $ 1 $ — |
Schedule of Credit Default Swaps Where We Sell Protection on Credit Default Swap Index Tranches and Fair Values | The following table sets forth our credit default swaps where we sell protection on credit default swap index tranches and the fair values as of the dates indicated: September 30, 2015 December 31, 2014 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Original index tranche attachment/detachment point and maturity: 7% - 15% matures after one year through five years (1) $ 100 $ 1 $ — $ 100 $ 1 $ — 9% - 12% matures in less than one year (2) — — — 250 2 — Total credit default swap index tranches 100 1 — 350 3 — Customized credit default swap index tranches related to securitization entities: Portion backing third-party borrowings maturing 2017 (3) 12 — 1 12 — — Portion backing our interest maturing 2017 (4) 300 — 9 300 — 17 Total customized credit default swap index tranches related to securitization entities 312 — 10 312 — 17 Total credit default swaps on index tranches $ 412 $ 1 $ 10 $ 662 $ 3 $ 17 (1) The current attachment/detachment as of September 30, 2015 and December 31, 2014 was 7% – 15%. (2) The current attachment/detachment as of December 31, 2014 was 9% – 12%. (3) Original notional value was $39 million. (4) Original notional value was $300 million. |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Financial Instruments Not Required to be Carried at Fair Value | The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated: September 30, 2015 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,133 $ 6,481 $ — $ — $ 6,481 Restricted commercial mortgage loans (1) 175 196 — — 196 Other invested assets (1) 453 459 — 376 83 Liabilities: Long-term borrowings (1) 4,601 4,121 — 3,886 235 Non-recourse funding obligations (1) 1,951 1,417 — — 1,417 Borrowings related to securitization entities (1) 108 116 — 116 — Investment contracts (1) 17,260 18,067 — 5 18,062 Other firm commitments: Commitments to fund limited partnerships 87 — — — — — Ordinary course of business lending commitments 167 — — — — — December 31, 2014 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,100 $ 6,573 $ — $ — $ 6,573 Restricted commercial mortgage loans (1) 201 228 — — 228 Other invested assets (1) 348 359 — 274 85 Liabilities: Long-term borrowings (1) 4,639 4,300 — 4,181 119 Non-recourse funding obligations (1) 1,996 1,438 — — 1,438 Borrowings related to securitization entities (1) 134 146 — 146 — Investment contracts (1) 17,486 18,012 — 7 18,005 Other firm commitments: Commitments to fund limited partnerships 53 — — — — — Ordinary course of business lending commitments 155 — — — — — (1) These financial instruments do not have notional amounts. |
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis | The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: September 30, 2015 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,913 $ — $ 5,910 $ 3 State and political subdivisions 2,448 — 2,413 35 Non-U.S. government 1,952 — 1,952 — U.S. corporate: Utilities 3,800 — 3,337 463 Energy 2,771 — 2,506 265 Finance and insurance 5,849 — 5,187 662 Consumer—non-cyclical 4,142 — 4,047 95 Technology and communications 2,408 — 2,374 34 Industrial 1,301 — 1,236 65 Capital goods 2,077 — 1,887 190 Consumer—cyclical 1,833 — 1,526 307 Transportation 1,091 — 981 110 Other 423 — 237 186 Total U.S. corporate 25,695 — 23,318 2,377 Non-U.S. corporate: Utilities 897 — 553 344 Energy 1,891 — 1,612 279 Finance and insurance 2,877 — 2,643 234 Consumer—non-cyclical 755 — 598 157 Technology and communications 996 — 954 42 Industrial 1,096 — 1,008 88 Capital goods 610 — 380 230 Consumer—cyclical 566 — 479 87 Transportation 611 — 465 146 Other 2,900 — 2,827 73 Total non-U.S. corporate 13,199 — 11,519 1,680 Residential mortgage-backed 5,118 — 5,048 70 Commercial mortgage-backed 2,587 — 2,576 11 Other asset-backed 3,939 — 2,633 1,306 Total fixed maturity securities 60,851 — 55,369 5,482 Equity securities 273 233 2 38 Other invested assets: Trading securities 458 — 458 — Derivative assets: Interest rate swaps 1,246 — 1,246 — Inflation indexed swaps 2 — 2 — Foreign currency swaps 8 — 8 — Credit default swaps 1 — — 1 Equity index options 15 — — 15 Equity return swaps 15 — 15 — Forward bond purchase commitments 13 — 13 — Other foreign currency contracts 25 — 25 — Total derivative assets 1,325 — 1,309 16 Securities lending collateral 367 — 367 — Total other invested assets 2,150 — 2,134 16 Restricted other invested assets related to securitization entities 412 — 181 231 Reinsurance recoverable (1) 19 — — 19 Separate account assets 7,893 7,893 — — Total assets $ 71,598 $ 8,126 $ 57,686 $ 5,786 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. December 31, 2014 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 6,000 $ — $ 5,996 $ 4 State and political subdivisions 2,222 — 2,192 30 Non-U.S. government 1,920 — 1,913 7 U.S. corporate: Utilities 3,864 — 3,420 444 Energy 2,742 — 2,457 285 Finance and insurance 5,653 — 5,037 616 Consumer—non-cyclical 4,019 — 3,879 140 Technology and communications 2,325 — 2,280 45 Industrial 1,287 — 1,251 36 Capital goods 2,006 — 1,840 166 Consumer—cyclical 1,900 — 1,537 363 Transportation 1,039 — 886 153 Other 401 — 230 171 Total U.S. corporate 25,236 — 22,817 2,419 Non-U.S. corporate: Utilities 913 — 585 328 Energy 2,050 — 1,726 324 Finance and insurance 3,012 — 2,791 221 Consumer—non-cyclical 812 — 615 197 Technology and communications 1,066 — 1,024 42 Industrial 1,225 — 1,094 131 Capital goods 631 — 394 237 Consumer—cyclical 549 — 460 89 Transportation 594 — 440 154 Other 3,411 — 3,330 81 Total non-U.S. corporate 14,263 — 12,459 1,804 Residential mortgage-backed 5,228 — 5,163 65 Commercial mortgage-backed 2,702 — 2,697 5 Other asset-backed 3,705 — 2,285 1,420 Total fixed maturity securities 61,276 — 55,522 5,754 Equity securities 275 237 4 34 Other invested assets: Trading securities 241 — 241 — Derivative assets: Interest rate swaps 1,091 — 1,091 — Foreign currency swaps 6 — 6 — Credit default swaps 4 — 1 3 Equity index options 17 — — 17 Other foreign currency contracts 14 — 14 — Total derivative assets 1,132 — 1,112 20 Securities lending collateral 289 — 289 — Total other invested assets 1,662 — 1,642 20 Restricted other invested assets related to securitization entities 411 — 181 230 Reinsurance recoverable (1) 13 — — 13 Separate account assets 9,208 9,208 — — Total assets $ 72,845 $ 9,445 $ 57,349 $ 6,051 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value | The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning balance as of July 1, 2015 Total realized and unrealized gains (losses) Ending balance as of September 30, 2015 Total gains (losses) included in net income (loss) attributable to assets still held (Amounts in millions) Included in net income (loss) Included in OCI Purchases Sales Issuances Settlements Transfer into Level 3 (1) Transfer out of Level 3 (1) Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 3 $ — $ — $ — $ — $ — $ — $ — $ — $ 3 $ — State and political subdivisions 40 1 (1 ) — — — — — (5 ) 35 1 Non-U.S. government 5 — — — — — — — (5 ) — — U.S. corporate: Utilities 448 — 1 23 — — — 8 (17 ) 463 — Energy 269 — (3 ) — — — (1 ) — — 265 — Finance and insurance 629 4 (3 ) 55 — — (3 ) — (20 ) 662 3 Consumer—non-cyclical 108 — (1 ) — — — (2 ) — (10 ) 95 — Technology and communications 33 1 1 — — — — — (1 ) 34 1 Industrial 36 — 1 28 — — — — — 65 — Capital goods 165 — (2 ) 27 — — — — — 190 — Consumer—cyclical 296 1 (2 ) 30 — — (28 ) 10 — 307 — Transportation 121 — (1 ) — — — (1 ) — (9 ) 110 — Other 166 — 2 — — — (1 ) 19 — 186 — Total U.S. corporate 2,271 6 (7 ) 163 — — (36 ) 37 (57 ) 2,377 4 Non-U.S. corporate: Utilities 326 — — 18 — — — — — 344 — Energy 305 — (3 ) — — — (23 ) — — 279 — Finance and insurance 218 — 1 15 — — — — — 234 — Consumer—non-cyclical 169 — — — — — (11 ) — (1 ) 157 — Technology and communications 42 — — — — — — — — 42 — Industrial 125 — — — — — (4 ) — (33 ) 88 — Capital goods 237 — (2 ) — — — (5 ) — — 230 — Consumer—cyclical 73 — (2 ) — — — — 16 — 87 — Transportation 154 — — — — — (8 ) — — 146 — Other 75 — (2 ) — — — — — — 73 — Total non-U.S. corporate 1,724 — (8 ) 33 — — (51 ) 16 (34 ) 1,680 — Residential mortgage-backed 132 — (3 ) 6 — — (2 ) 9 (72 ) 70 — Commercial mortgage-backed 25 — (1 ) — — — — — (13 ) 11 — Other asset-backed 1,360 — (7 ) 34 (14 ) — (50 ) 77 (94 ) 1,306 2 Total fixed maturity securities 5,560 7 (27 ) 236 (14 ) — (139 ) 139 (280 ) 5,482 7 Equity securities 41 — — — (4 ) — — 1 — 38 — Other invested assets: Derivative assets: Credit default swaps 1 — — — — — — — — 1 — Equity index options 12 6 — — — — (3 ) — — 15 5 Total derivative assets 13 6 — — — — (3 ) — — 16 5 Total other invested assets 13 6 — — — — (3 ) — — 16 5 Restricted other invested assets related to securitization entities 230 1 — — — — — — — 231 1 Reinsurance recoverable (2) 10 9 — — — — — — — 19 9 Total Level 3 assets $ 5,854 $ 23 $ (27 ) $ 236 $ (18 ) $ — $ (142 ) $ 140 $ (280 ) $ 5,786 $ 22 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning Total realized and Ending as of Total gains attributable (Amounts in millions) Included in (loss) Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4 $ — $ — $ — $ — $ — $ — $ — $ — $ 4 $ — State and political subdivisions 33 1 — — — — — — — 34 1 Non-U.S. government 25 — — — — — (1 ) — (17 ) 7 — U.S. corporate: Utilities 391 — — 6 — — — 97 — 494 — Energy 252 — (4 ) 25 — — (1 ) — (57 ) 215 — Finance and insurance 513 3 (7 ) 6 — — (2 ) 70 — 583 3 Consumer—non-cyclical 174 4 (3 ) — — — (31 ) — — 144 — Technology and communications 65 — — — — — (1 ) — — 64 1 Industrial 36 — — — — — — — — 36 — Capital goods 157 — — 8 — — — 17 — 182 — Consumer—cyclical 416 1 (1 ) — — — (29 ) — — 387 1 Transportation 163 — (1 ) 10 — — (2 ) — — 170 — Other 223 — 1 — — — (41 ) — — 183 — Total U.S. corporate 2,390 8 (15 ) 55 — — (107 ) 184 (57 ) 2,458 5 Non-U.S. corporate: Utilities 297 — — 24 — — — 26 — 347 — Energy 294 — (2 ) 17 — — (22 ) — (3 ) 284 — Finance and insurance 264 1 2 — — — (1 ) 6 (30 ) 242 1 Consumer—non-cyclical 226 — — — — — (1 ) — — 225 — Technology and communications 58 — — 20 — — — — — 78 — Industrial 144 — (1 ) — — — — — — 143 — Capital goods 242 1 (1 ) — — — (30 ) — — 212 — Consumer—cyclical 90 — (1 ) — — — — — — 89 — Transportation 165 — — — — — — 14 — 179 — Other 73 — (4 ) — — — — — — 69 — Total non-U.S. corporate 1,853 2 (7 ) 61 — — (54 ) 46 (33 ) 1,868 1 Residential mortgage-backed 61 — (3 ) 15 — — (2 ) — — 71 — Commercial mortgage-backed 5 — — — — — — — — 5 — Other asset-backed 1,268 2 — 65 (9 ) — (49 ) 127 — 1,404 1 Total fixed maturity securities 5,639 13 (25 ) 196 (9 ) — (213 ) 357 (107 ) 5,851 8 Equity securities 67 — — — (1 ) — — — — 66 — Other invested assets: Trading securities 31 — — — — — — — (31 ) — — Derivative assets: Credit default swaps 6 — — — — — (2 ) — — 4 — Equity index options 4 (1 ) — 8 — — — — — 11 — Total derivative assets 10 (1 ) — 8 — — (2 ) — — 15 — Total other invested assets 41 (1 ) — 8 — — (2 ) — (31 ) 15 — Restricted other invested assets related to securitization entities 224 (1 ) — 1 — — — — — 224 (1 ) Reinsurance recoverable (2) 3 5 — — — — — — — 8 5 Total Level 3 assets $ 5,974 $ 16 $ (25 ) $ 205 $ (10 ) $ — $ (215 ) $ 357 $ (138 ) $ 6,164 $ 12 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning Total realized and Ending as of Total gains (Amounts in millions) Included in (loss) Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 3 $ — State and political subdivisions 30 2 8 5 — — — — (10 ) 35 2 Non-U.S. government 7 — (1 ) — — — (1 ) — (5 ) — — U.S. corporate: Utilities 444 — (9 ) 38 — — (2 ) 10 (18 ) 463 — Energy 285 — (7 ) 4 (4 ) — (5 ) — (8 ) 265 — Finance and insurance 616 12 (25 ) 83 — — (28 ) 47 (43 ) 662 10 Consumer—non-cyclical 140 2 — — — — (37 ) — (10 ) 95 — Technology and communications 45 2 (2 ) — — — — — (11 ) 34 2 Industrial 36 — 1 28 — — — — — 65 — Capital goods 166 — (3 ) 28 (1 ) — — — — 190 — Consumer—cyclical 363 1 (3 ) 39 — — (36 ) 10 (67 ) 307 — Transportation 153 1 (3 ) 7 — — (30 ) — (18 ) 110 1 Other 171 1 — — — — (5 ) 19 — 186 1 Total U.S. corporate 2,419 19 (51 ) 227 (5 ) — (143 ) 86 (175 ) 2,377 14 Non-U.S. corporate: Utilities 328 — (2 ) 18 — — — — — 344 — Energy 324 (1 ) (5 ) — (9 ) — (30 ) — — 279 (1 ) Finance and insurance 221 2 (3 ) 21 — — (3 ) — (4 ) 234 2 Consumer—non-cyclical 197 — 2 — — — (41 ) — (1 ) 157 — Technology and communications 42 — — — — — — 1 (1 ) 42 — Industrial 131 — — 7 — — (18 ) 1 (33 ) 88 — Capital goods 237 — (2 ) — — — (5 ) — — 230 — Consumer—cyclical 89 — (1 ) — — — — 16 (17 ) 87 — Transportation 154 — — — — — (8 ) — — 146 — Other 81 — 3 — — — (11 ) 1 (1 ) 73 — Total non-U.S. corporate 1,804 1 (8 ) 46 (9 ) — (116 ) 19 (57 ) 1,680 1 Residential mortgage-backed 65 — (3 ) 37 — — (7 ) 50 (72 ) 70 — Commercial mortgage-backed 5 — (1 ) 9 — — (1 ) 13 (14 ) 11 — Other asset-backed 1,420 3 10 129 (22 ) — (234 ) 141 (141 ) 1,306 2 Total fixed maturity securities 5,754 25 (46 ) 453 (36 ) — (503 ) 309 (474 ) 5,482 19 Equity securities 34 — — 1 (5 ) — — 8 — 38 — Other invested assets: Derivative assets: Credit default swaps 3 — — — — — (2 ) — — 1 — Equity index options 17 (11 ) — 12 — — (3 ) — — 15 (8 ) Total derivative assets 20 (11 ) — 12 — — (5 ) — — 16 (8 ) Total other invested assets 20 (11 ) — 12 — — (5 ) — — 16 (8 ) Restricted other invested assets related to securitization entities 230 1 — — — — — — — 231 1 Reinsurance recoverable (2) 13 5 — — — 1 — — — 19 5 Total Level 3 assets $ 6,051 $ 20 $ (46 ) $ 466 $ (41 ) $ 1 $ (508 ) $ 317 $ (474 ) $ 5,786 $ 17 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning as of Total realized and Ending as of Total gains attributable (Amounts in millions) Included in (loss) Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 4 $ — State and political subdivisions 27 2 — 5 — — — — — 34 2 Non-U.S. government 23 — — 3 — — (2 ) — (17 ) 7 — U.S. corporate: Utilities 420 — 6 18 — — (5 ) 102 (47 ) 494 — Energy 281 — (1 ) 25 — — (2 ) 14 (102 ) 215 — Finance and insurance 433 10 19 37 — — (7 ) 128 (37 ) 583 10 Consumer—non-cyclical 224 2 4 — (38 ) — (58 ) 10 — 144 (2 ) Technology and communications 60 2 3 — — — (1 ) — — 64 3 Industrial 24 2 2 27 — — (16 ) — (3 ) 36 2 Capital goods 139 — 4 8 — — — 31 — 182 — Consumer—cyclical 386 1 3 62 (1 ) — (64 ) — — 387 1 Transportation 196 1 4 10 — — (9 ) — (32 ) 170 1 Other 210 — 10 8 — — (45 ) — — 183 1 Total U.S. corporate 2,373 18 54 195 (39 ) — (207 ) 285 (221 ) 2,458 16 Non-U.S. corporate: Utilities 260 — 7 54 — — — 26 — 347 — Energy 320 — 4 17 — — (44 ) — (13 ) 284 — Finance and insurance 181 3 29 86 (42 ) — (6 ) 21 (30 ) 242 3 Consumer—non-cyclical 212 — 1 35 — — (23 ) — — 225 — Technology and communications 58 — — 20 — — — — — 78 — Industrial 151 — 2 — — — — — (10 ) 143 — Capital goods 299 1 (1 ) — (35 ) — (40 ) — (12 ) 212 — Consumer—cyclical 96 — 1 5 — — (13 ) — — 89 — Transportation 153 — 1 11 — — — 14 — 179 — Other 89 — (3 ) — — — (17 ) — — 69 — Total non-U.S. corporate 1,819 4 41 228 (77 ) — (143 ) 61 (65 ) 1,868 3 Residential mortgage-backed 104 — (1 ) 15 (23 ) — (6 ) 13 (31 ) 71 — Commercial mortgage-backed 6 — 3 — — — (2 ) 6 (8 ) 5 — Other asset-backed 1,166 5 7 276 (14 ) — (127 ) 185 (94 ) 1,404 2 Total fixed maturity securities 5,523 29 104 722 (153 ) — (488 ) 550 (436 ) 5,851 23 Equity securities 78 — — — (12 ) — — — — 66 — Other invested assets: Trading securities 34 — — — — — (3 ) — (31 ) — — Derivative assets: Credit default swaps 10 — — — — — (6 ) — — 4 — Equity index options 12 (19 ) — 18 — — — — — 11 (18 ) Other foreign currency contracts 3 (2 ) — — (1 ) — — — — — — Total derivative assets 25 (21 ) — 18 (1 ) — (6 ) — — 15 (18 ) Total other invested assets 59 (21 ) — 18 (1 ) — (9 ) — (31 ) 15 (18 ) Restricted other invested assets related to securitization entities 211 12 — 1 — — — — — 224 12 Reinsurance recoverable (2) (1 ) 7 — — — 2 — — — 8 7 Total Level 3 assets $ 5,870 $ 27 $ 104 $ 741 $ (166 ) $ 2 $ (497 ) $ 550 $ (467 ) $ 6,164 $ 24 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Gains and Losses Included in Net Income (Loss) from Assets and Liabilities Recorded at Fair Value | The following table presents the gains and losses included in net income (loss) from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Total realized and unrealized gains (losses) included in net income (loss): Net investment income $ 9 $ 14 $ 30 $ 34 Net investment gains (losses) 14 2 (10 ) (7 ) Total $ 23 $ 16 $ 20 $ 27 Total gains (losses) included in net income (loss) attributable to assets still held: Net investment income $ 8 $ 9 $ 23 $ 26 Net investment gains (losses) 14 3 (6 ) (2 ) Total $ 22 $ 12 $ 17 $ 24 Beginning Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending Total (gains) as of Included in Included as of attributable Policyholder account balances: GMWB embeddedderivatives (1) $ 291 $ 73 $ — $ — $ — $ 26 $ — $ — $ — $ 390 $ 75 Fixed index annuity embedded derivatives 276 (14 ) — — — 47 (5 ) — — 304 (14 ) Indexed universal life embedded derivatives 7 (5 ) — — — 8 — — — 10 (5 ) Total policyholder account balances 574 54 — — — 81 (5 ) — — 704 56 Derivative liabilities: Credit default swaps related to securitization entities 17 (10 ) — 3 — — — — — 10 (10 ) Total derivative liabilities 17 (10 ) — 3 — — — — — 10 (10 ) Borrowings related to securitization entities 85 (6 ) — — — 1 — — — 80 (6 ) Total Level 3 liabilities $ 676 $ 38 $ — $ 3 $ — $ 82 $ (5 ) $ — $ — $ 794 $ 40 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (Amounts in millions) Beginning Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending Total (gains) as of Included in Included as of attributable Policyholder account balances: GMWB embeddedderivatives (1) $ 96 $ 94 $ — $ — $ — $ 28 $ — $ — $ — $ 218 $ 96 Fixed index annuity embedded derivatives 143 19 — — — 86 (2 ) — — 246 19 Indexed universal life embedded derivatives — — — — — 3 — — — 3 — Total policyholder account balances 239 113 — — — 117 (2 ) — — 467 115 Derivative liabilities: Credit default swaps related to securitization entities 32 (16 ) — 3 — — — — — 19 (16 ) Other foreign currency contracts 1 1 — — (2 ) — — — — — — Total derivative liabilities 33 (15 ) — 3 (2 ) — — — — 19 (16 ) Borrowings related to securitization entities 75 8 — — — — — — — 83 8 Total Level 3 liabilities $ 347 $ 106 $ — $ 3 $ (2 ) $ 117 $ (2 ) $ — $ — $ 569 $ 107 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The following table presents the gains and losses included in net (income) loss from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated: Three months ended September 30, Nine months ended September 30, (Amounts in millions) 2015 2014 2015 2014 Total realized and unrealized (gains) losses included in net (income) loss: Net investment income $ — $ — $ — $ — Net investment (gains) losses 90 72 38 106 Total $ 90 $ 72 $ 38 $ 106 Total (gains) losses included in net (income) loss attributable to liabilities still held: Net investment income $ — $ — $ — $ — Net investment (gains) losses 88 72 40 107 Total $ 88 $ 72 $ 40 $ 107 |
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis | The following tables set forth our liabilities by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: September 30, 2015 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 390 $ — $ — $ 390 Fixed index annuity embedded derivatives 304 — — 304 Indexed universal life embedded derivatives 10 — — 10 Total policyholder account balances 704 — — 704 Derivative liabilities: Interest rate swaps 290 — 290 — Interest rate swaps related to securitization entities 30 — 30 — Inflation indexed swaps 14 — 14 — Foreign currency swaps 22 — 22 — Credit default swaps related to securitization entities 10 — — 10 Other foreign currency contracts 34 — 34 — Total derivative liabilities 400 — 390 10 Borrowings related to securitization entities 80 — — 80 Total liabilities $ 1,184 $ — $ 390 $ 794 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. December 31, 2014 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 291 $ — $ — $ 291 Fixed index annuity embedded derivatives 276 — — 276 Indexed universal life embedded derivatives 7 — — 7 Total policyholder account balances 574 — — 574 Derivative liabilities: Interest rate swaps 204 — 204 — Interest rate swaps related to securitization entities 26 — 26 — Inflation indexed swaps 42 — 42 — Foreign currency swaps 7 — 7 — Credit default swaps related to securitization entities 17 — — 17 Equity return swaps 1 — 1 — Other foreign currency contracts 13 — 13 — Total derivative liabilities 310 — 293 17 Borrowings related to securitization entities 85 — — 85 Total liabilities $ 969 $ — $ 293 $ 676 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value | The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning as of July 1, Total realized and Ending as of Total (gains) attributable (Amounts in millions) Included in Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: GMWB embedded derivatives (1) $ 255 $ 126 $ — $ — $ — $ 9 $ — $ — $ — $ 390 $ 124 Fixed index annuity embedded derivatives 322 (31 ) — — — 14 (1 ) — — 304 (31 ) Indexed universal life embedded derivatives 9 (2 ) — — — 3 — — — 10 (2 ) Total policyholder account balances 586 93 — — — 26 (1 ) — — 704 91 Derivative liabilities: Credit default swaps related to securitization entities 8 1 — 1 — — — — — 10 1 Total derivative liabilities 8 1 — 1 — — — — — 10 1 Borrowings related to securitization entities 84 (4 ) — — — — — — — 80 (4 ) Total Level 3 liabilities $ 678 $ 90 $ — $ 1 $ — $ 26 $ (1 ) $ — $ — $ 794 $ 88 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of July 1, Total realized and Ending as of Total (gains) attributable (Amounts in millions) Included in Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: GMWB embedded derivatives (1) $ 146 $ 63 $ — $ — $ — $ 9 $ — $ — $ — $ 218 $ 63 Fixed index annuity embedded derivatives 219 7 — — — 21 (1 ) — — 246 7 Indexed universal life embedded derivatives 2 — — — — 1 — — — 3 — Total policyholder account balances 367 70 — — — 31 (1 ) — — 467 70 Derivative liabilities: Credit default swaps related to securitization entities 16 2 — 1 — — — — — 19 2 Total derivative liabilities 16 2 — 1 — — — — — 19 2 Borrowings related to securitization entities 83 — — — — — — — — 83 — Total Level 3 liabilities $ 466 $ 72 $ — $ 1 $ — $ 31 $ (1 ) $ — $ — $ 569 $ 72 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning as of Total realized and Ending as of Total (gains) attributable (Amounts in millions) Included in Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: GMWB embedded derivatives (1) $ 291 $ 73 $ — $ — $ — $ 26 $ — $ — $ — $ 390 $ 75 Fixed index annuity embedded derivatives 276 (14 ) — — — 47 (5 ) — — 304 (14 ) Indexed universal life embedded derivatives 7 (5 ) — — — 8 — — — 10 (5 ) Total policyholder account balances 574 54 — — — 81 (5 ) — — 704 56 Derivative liabilities: Credit default swaps related to securitization entities 17 (10 ) — 3 — — — — — 10 (10 ) Total derivative liabilities 17 (10 ) — 3 — — — — — 10 (10 ) Borrowings related to securitization entities 85 (6 ) — — — 1 — — — 80 (6 ) Total Level 3 liabilities $ 676 $ 38 $ — $ 3 $ — $ 82 $ (5 ) $ — $ — $ 794 $ 40 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (Amounts in millions) Beginning as of Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending as of Total (gains) Included in Included Policyholder account balances: GMWB embedded derivatives (1) $ 96 $ 94 $ — $ — $ — $ 28 $ — $ — $ — $ 218 $ 96 Fixed index annuity embedded derivatives 143 19 — — — 86 (2 ) — — 246 19 Indexed universal life embedded derivatives — — — — — 3 — — — 3 — Total policyholder account balances 239 113 — — — 117 (2 ) — — 467 115 Derivative liabilities: Credit default swaps related to securitization entities 32 (16 ) — 3 — — — — — 19 (16 ) Other foreign currency contracts 1 1 — — (2 ) — — — — — — Total derivative liabilities 33 (15 ) — 3 (2 ) — — — — 19 (16 ) Borrowings related to securitization entities 75 8 — — — — — — — 83 8 Total Level 3 liabilities $ 347 $ 106 $ — $ 3 $ (2 ) $ 117 $ (2 ) $ — $ — $ 569 $ 107 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Fair Value Inputs, Assets and Liabilities, Quantitative Information | The following table presents a summary of the significant unobservable inputs used for certain fair value measurements that are based on internal models and classified as Level 3 as of September 30, 2015: (Amounts in millions) Valuation technique Fair value Unobservable input Range Weighted-average Fixed maturity securities: U.S. corporate: Utilities Internal models $ 435 Credit spreads 100bps - 239bps 172bps Energy Internal models 168 Credit spreads 132bps - 319bps 199bps Finance and insurance Internal models 593 Credit spreads 105bps - 626bps 262bps Consumer—non-cyclical Internal models 95 Credit spreads 155bps - 401bps 235bps Technology and communications Internal models 34 Credit spreads 426bps Not applicable Industrial Internal models 65 Credit spreads 210bps - 253bps 231bps Capital goods Internal models 170 Credit spreads 85bps - 427bps 197bps Consumer—cyclical Internal models 307 Credit spreads 85bps - 311bps 201bps Transportation Internal models 98 Credit spreads 79bps - 334bps 210bps Other Internal models 186 Credit spreads 88bps - 314bps 170bps Total U.S. corporate Internal models $ 2,151 Credit spreads 79bps - 626bps 215bps Non-U.S. corporate: Utilities Internal models $ 344 Credit spreads 100bps - 230bps 151bps Energy Internal models 182 Credit spreads 145bps - 411bps 235bps Finance and insurance Internal models 224 Credit spreads 99bps - 260bps 161bps Consumer—non-cyclical Internal models 144 Credit spreads 85bps - 280bps 182bps Technology and communications Internal models 42 Credit spreads 155bps - 293bps 227bps Industrial Internal models 88 Credit spreads 163bps - 261bps 224bps Capital goods Internal models 197 Credit spreads 155bps - 353bps 224bps Consumer—cyclical Internal models 87 Credit spreads 143bps - 293bps 216bps Transportation Internal models 146 Credit spreads 126bps - 293bps 192bps Other Internal models 57 Credit spreads 293bps - 690bps 413bps Total non-U.S. corporate Internal models $ 1,511 Credit spreads 85bps - 690bps 199bps Derivative assets: Credit default swaps Discounted cash $ 1 Credit spreads 6bps Not applicable Equity index options Discounted cash $ 15 Equity index 17% - 26% 23% Policyholder account balances: Withdrawal — % - 98% Not applicable Lapse rate — % - 15% Not applicable Non-performance risk 50bps - 85bps 75bps GMWB embedded derivatives (1) Stochastic cash flow $ 390 Equity index 20% - 25% 21% Fixed index annuity embedded derivatives Option budget $ 304 Expected future — % - 3% 2% Indexed universal life embedded derivatives Option budget $ 10 Expected future 3% - 9% 5% (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Activity Impacting Deferred Acquisition Costs | The following table presents the activity impacting deferred acquisition costs (“DAC”) for the dates indicated: As of or for the nine months (Amounts in millions) 2015 2014 Unamortized beginning balance $ 5,197 $ 5,211 Impact of foreign currency translation (20 ) (6 ) Costs deferred 226 282 Amortization, net of interest accretion (265 ) (281 ) Impairment (455 ) — Unamortized ending balance 4,683 5,206 Accumulated effect of net unrealized investment (gains) losses (246 ) (336 ) Ending balance $ 4,437 $ 4,870 |
Liability for Policy and Cont31
Liability for Policy and Contract Claims (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Liability for Policy and Contract Claims | The following table sets forth our recorded liability for policy and contract claims by business as of the dates indicated: (Amounts in millions) September 30, December 31, Long-term care insurance $ 6,583 $ 6,216 U.S. mortgage insurance 953 1,180 International mortgage insurance 303 308 Life insurance 189 197 Fixed annuities 19 21 Runoff 18 15 Total liability for policy and contract claims $ 8,065 $ 7,937 |
U.S. Mortgage Insurance | |
Changes in Liability for Policy and Contract Claims | The following table sets forth changes in the liability for policy and contract claims for our long-term care insurance business for the dates indicated: As of or for the nine (Amounts in millions) 2015 2014 Beginning balance $ 6,216 $ 4,999 Less reinsurance recoverables (1,926 ) (1,707 ) Net beginning balance 4,290 3,292 Incurred related to insured events of: Current year 1,241 1,085 Prior years 6 653 Total incurred 1,247 1,738 Paid related to insured events of: Current year (75 ) (64 ) Prior years (1,050 ) (968 ) Total paid (1,125 ) (1,032 ) Interest on liability for policy and contract claims 172 140 Net ending balance 4,584 4,138 Add reinsurance recoverables 1,999 1,873 Ending balance $ 6,583 $ 6,011 |
Long-term Care Insurance | |
Changes in Liability for Policy and Contract Claims | The following table sets forth changes in the liability for policy and contract claims for our U.S. mortgage insurance business for the dates indicated: As of or for the nine (Amounts in millions) 2015 2014 Beginning balance $ 1,180 $ 1,482 Less reinsurance recoverables (24 ) (44 ) Net beginning balance 1,156 1,438 Incurred related to insured events of: Current year 180 243 Prior years (18 ) 23 Total incurred 162 266 Paid related to insured events of: Current year (6 ) (8 ) Prior years (365 ) (482 ) Total paid (371 ) (490 ) Net ending balance 947 1,214 Add reinsurance recoverables 6 25 Ending balance $ 953 $ 1,239 |
Borrowings and Other Financin32
Borrowings and Other Financings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Long Term Borrowings | The following table sets forth total long-term borrowings as of the dates indicated: (Amounts in millions) September 30, December 31, Genworth Holdings (1) 8.625% Senior Notes, due 2016 $ 298 $ 300 6.52% Senior Notes, due 2018 598 600 7.70% Senior Notes, due 2020 397 400 7.20% Senior Notes, due 2021 389 399 7.625% Senior Notes, due 2021 724 758 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 6.15% Fixed-to-Floating Rate Junior Subordinated Notes, due 2066 598 598 Total Genworth Holdings 4,100 4,151 Canada (2) 5.68% Senior Notes, due 2020 206 236 4.24% Senior Notes, due 2024 120 138 Total Canada 326 374 Australia (3) Floating Rate Junior Notes, due 2021 35 114 Floating Rate Junior Notes, due 2025 140 — Total Australia 175 114 Total $ 4,601 $ 4,639 (1) We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. (2) Senior notes issued by our majority-owned subsidiary, Genworth MI Canada Inc. (“Genworth Canada”). (3) Subordinated floating rate notes issued by our indirect wholly-owned subsidiary, Genworth Financial Mortgage Insurance Pty Limited. |
Remaining Contractual Maturity of Agreements | The following tables present the remaining contractual maturity of the agreements as of the dates indicated: September 30, 2015 (Amounts in millions) Overnight and continuous Up to 30 days 31 - 90 days Greater than 90 days Total Repurchase agreements: U.S. government, agencies and government-sponsored enterprises $ — $ 103 $ 70 $ 157 $ 330 Securities lending: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises 28 — — — 28 Non-U.S. government 47 — — — 47 U.S. corporate 90 — — — 90 Non-U.S. corporate 196 — — — 196 Subtotal, fixed maturity securities 361 — — — 361 Equity securities 5 — — — 5 Total securities lending 366 — — — 366 Total repurchase agreements and securities lending $ 366 $ 103 $ 70 $ 157 $ 696 December 31, 2014 (Amounts in millions) Overnight and Up to 30 days 31 - 90 days Greater than Total Repurchase agreements: U.S. government, agencies and government-sponsored enterprises $ — $ 129 $ 123 $ 301 $ 553 Securities lending: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises 36 — — — 36 Non-U.S. government 32 — — — 32 U.S. corporate 66 — — — 66 Non-U.S. corporate 163 — — — 163 Subtotal, fixed maturity securities 297 — — — 297 Equity securities 2 — — — 2 Total securities lending 299 — — — 299 Total repurchase agreements and securities lending $ 299 $ 129 $ 123 $ 301 $ 852 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate | The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Pre-tax income (loss) $ (351 ) $ (980 ) $ 188 $ (375 ) Statutory U.S. federal income tax rate $ (123 ) 35.0 % $ (343 ) 35.0 % $ 66 35.0 % $ (131 ) 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect (1 ) 0.4 (3 ) 0.3 3 1.4 3 (0.8 ) Benefit on tax favored investments (9 ) 2.5 (1 ) 0.1 (14 ) (7.2 ) (3 ) 0.8 Effect of foreign operations (3 ) 0.8 (5 ) 0.5 (33 ) (17.5 ) (46 ) 12.3 Non-deductible expenses — — — — 1 0.6 1 (0.3 ) Interest on uncertain tax positions — (0.2 ) — — 1 0.3 — — Valuation allowance — — — — — — (7 ) 1.8 Non-deductible goodwill — 0.1 163 (16.6 ) — — 163 (43.4 ) Stock-based compensation 2 (0.5 ) — — 4 2.0 8 (2.1 ) Other, net — — 2 (0.2 ) (1 ) (0.3 ) (4 ) 1.0 Effective rate $ (134 ) 38.1 % $ (187 ) 19.1 % $ 27 14.3 % $ (16 ) 4.3 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Revenues for Segments and Corporate and Other Activities | The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Revenues: International Mortgage Insurance segment: Canada $ 124 $ 163 $ 429 $ 511 Australia 122 136 360 401 Other Countries 7 10 20 25 International Mortgage Insurance segment’s revenues 253 309 809 937 U.S. Mortgage Insurance segment’s revenues 161 165 497 476 U.S. Life Insurance segment: Long-term care insurance 949 879 2,769 2,607 Life insurance 455 510 1,419 1,494 Fixed annuities 221 277 683 791 U.S. Life Insurance segment’s revenues 1,625 1,666 4,871 4,892 Runoff segment’s revenues 53 53 209 215 Corporate and Other’s revenues 8 (3 ) 6 (20 ) Total revenues $ 2,100 $ 2,190 $ 6,392 $ 6,500 |
Summary of Net Operating Income for Segments and Corporate and Other Activities | The following is a summary of net operating income (loss) for our segments and Corporate and Other activities and a reconciliation of net operating income (loss) for our segments and Corporate and Other activities to net loss available to Genworth Financial, Inc.’s common stockholders for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 International Mortgage Insurance segment: Canada $ 38 $ 46 $ 115 $ 134 Australia 21 48 80 167 Other Countries (5 ) (7 ) (16 ) (18 ) International Mortgage Insurance segment’s net operating income 54 87 179 283 U.S. Mortgage Insurance segment’s net operating income (loss) 37 (2 ) 138 70 U.S. Life Insurance segment: Long-term care insurance (10 ) (361 ) 10 (309 ) Life insurance 31 13 93 73 Fixed annuities 19 26 75 77 U.S. Life Insurance segment’s net operating income (loss) 40 (322 ) 178 (159 ) Runoff segment’s net operating income (loss) (4 ) 5 16 32 Corporate and Other’s net operating loss (63 ) (91 ) (174 ) (209 ) Net operating income (loss) 64 (323 ) 337 17 Net investment gains (losses), net (22 ) (10 ) (19 ) (1 ) Goodwill impairment, net — (517 ) — (517 ) Gains (losses) on early extinguishment of debt, net (2 ) — (2 ) (2 ) Gains (losses) from life block transactions, net (296 ) — (296 ) — Expenses related to restructuring, net — — (2 ) — Tax impact from potential business portfolio changes (7 ) — (7 ) — Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders (263 ) (850 ) 11 (503 ) Net income attributable to noncontrolling interests 46 57 150 144 Income (loss) from continuing operations (217 ) (793 ) 161 (359 ) Income (loss) from discontinued operations, net of taxes (21 ) 6 (334 ) 19 Net loss (238 ) (787 ) (173 ) (340 ) Less: net income attributable to noncontrolling interests 46 57 150 144 Net loss available to Genworth Financial, Inc.’s common stockholders $ (284 ) $ (844 ) $ (323 ) $ (484 ) |
Summary of Total Assets for Segments and Corporate and Other Activities | The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) September 30, December 31, Assets: International Mortgage Insurance $ 7,773 $ 8,815 U.S. Mortgage Insurance 2,282 2,324 U.S. Life Insurance 82,345 82,906 Runoff 11,762 12,971 Corporate and Other 2,854 2,533 Segment assets from continuing operations 107,016 109,549 Assets held for sale related to discontinued operations 1,206 1,809 Total assets $ 108,222 $ 111,358 |
Changes in Accumulated Other 35
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Component of Changes in Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2015 $ 1,628 $ 1,913 $ (232 ) $ 3,309 OCI before reclassifications 79 229 (302 ) 6 Amounts reclassified from (to) OCI 8 (12 ) — (4 ) Current period OCI 87 217 (302 ) 2 Balances as of September 30, 2015 before noncontrolling interests 1,715 2,130 (534 ) 3,311 Less: change in OCI attributable to noncontrolling interests (16 ) — (151 ) (167 ) Balances as of September 30, 2015 $ 1,731 $ 2,130 $ (383 ) $ 3,478 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2014 $ 2,128 $ 1,652 $ 381 $ 4,161 OCI before reclassifications (63 ) 110 (379 ) (332 ) Amounts reclassified from (to) OCI (4 ) (9 ) — (13 ) Current period OCI (67 ) 101 (379 ) (345 ) Balances as of September 30, 2014 before noncontrolling interests 2,061 1,753 2 3,816 Less: change in OCI attributable to noncontrolling interests (6 ) — (112 ) (118 ) Balances as of September 30, 2014 $ 2,067 $ 1,753 $ 114 $ 3,934 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2015 $ 2,453 $ 2,070 $ (77 ) $ 4,446 OCI before reclassifications (727 ) 99 (619 ) (1,247 ) Amounts reclassified from (to) OCI (1 ) (39 ) — (40 ) Current period OCI (728 ) 60 (619 ) (1,287 ) Balances as of September 30, 2015 before noncontrolling interests 1,725 2,130 (696 ) 3,159 Less: change in OCI attributable to noncontrolling interests (6 ) — (313 ) (319 ) Balances as of September 30, 2015 $ 1,731 $ 2,130 $ (383 ) $ 3,478 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2014 $ 926 $ 1,319 $ 297 $ 2,542 OCI before reclassifications 1,186 457 (252 ) 1,391 Amounts reclassified from (to) OCI (7 ) (23 ) — (30 ) Current period OCI 1,179 434 (252 ) 1,361 Balances as of September 30, 2014 before noncontrolling interests 2,105 1,753 45 3,903 Less: change in OCI attributable to noncontrolling interests 38 — (69 ) (31 ) Balances as of September 30, 2014 $ 2,067 $ 1,753 $ 114 $ 3,934 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. |
Reclassifications in (out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from accumulated Affected line item in the consolidated statements of income Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ 13 $ (6 ) $ (1 ) $ (11 ) Net investment (gains) losses Provision for income taxes (5 ) 2 — 4 Provision for income taxes Total $ 8 $ (4 ) $ (1 ) $ (7 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (22 ) $ (17 ) $ (61 ) $ (45 ) Net investment income Interest rate swaps hedging liabilities — — — (1 ) Interest expense Inflation indexed swaps 5 3 2 11 Net investment income Forward bond purchase commitments (1 ) — (1 ) — Net investment income Provision for income taxes 6 5 21 12 Provision for income taxes Total $ (12 ) $ (9 ) $ (39 ) $ (23 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Changes in Ownership Interests and the Effect on Stockholders' Equity | A summary of these changes in ownership interests and the effect on stockholders’ equity was as follows for the periods presented: Three months ended September 30, Nine months ended September 30, (Amounts in millions) 2015 2014 2015 2014 Net loss available to Genworth Financial, Inc.’s common stockholders $ (284 ) $ (844 ) $ (323 ) $ (484 ) Transfers to noncontrolling interests: Decrease in Genworth Financial, Inc.’s additional paid-in capital for initial sale of Genworth Australia to noncontrolling interests — — — (145 ) Decrease in Genworth Financial, Inc.’s additional paid-in capital for additional sale of Genworth Australia to noncontrolling interests — — (65 ) — Net transfers to noncontrolling interests — — (65 ) (145 ) Change from net loss available to Genworth Financial, Inc.’s common stockholders and transfers to noncontrolling interests $ (284 ) $ (844 ) $ (388 ) $ (629 ) |
Sale of Businesses (Tables)
Sale of Businesses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Operating Results of Discontinued Operations | The major assets and liability categories were as follows as of the dates indicated: (Amounts in millions) September 30, 2015 December 31, 2014 Assets Investments: Fixed maturity securities available-for-sale, at fair value $ 1,117 $ 1,171 Equity securities available-for-sale, at fair value 6 7 Other invested assets 23 52 Total investments 1,146 1,230 Cash and cash equivalents 142 202 Accrued investment income 22 21 Deferred acquisition costs 168 193 Intangible assets 22 22 Reinsurance recoverable 36 32 Other assets 121 109 Assets held for sale related to discontinued operations 1,657 1,809 Fair value less pension settlement costs and closing costs impairment (451 ) — Total assets held for sale related to discontinued operations $ 1,206 $ 1,809 Liabilities Policyholder account balances $ 9 $ 11 Liability for policy and contract claims 108 106 Unearned premiums 412 439 Other liabilities 296 322 Deferred tax liability 29 50 Liabilities held for sale related to discontinued operations $ 854 $ 928 Summary operating results of discontinued operations were as follows for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2015 2014 2015 2014 Revenues: Premiums $ 169 $ 184 $ 517 $ 557 Net investment income 21 28 63 78 Net investment gains (losses) — 1 — 2 Insurance and investment product fees and other — 1 — 4 Total revenues 190 214 580 641 Benefits and expenses: Benefits and other changes in policy reserves 46 53 150 155 Acquisition and operating expenses, net of deferrals 105 113 323 340 Amortization of deferred acquisition costs and intangibles 21 30 71 90 Interest expense 7 10 22 34 Total benefits and expenses 179 206 566 619 Income (loss) before income taxes and loss on sale 11 8 14 22 Provision for income taxes 20 2 30 3 Income (loss) before loss on sale (9 ) 6 (16 ) 19 Loss on sale, net of taxes (12 ) — (318 ) — Income (loss) from discontinued operations, net of taxes $ (21 ) $ 6 $ (334 ) $ 19 |
Condensed Consolidating Finan38
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Consolidating Balance Sheet | The following table presents the condensed consolidating balance sheet information as of September 30, 2015: (Amounts in millions) Parent Guarantor Issuer All Other Subsidiaries Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ 150 $ 60,901 $ (200 ) $ 60,851 Equity securities available-for-sale, at fair value — — 273 — 273 Commercial mortgage loans — — 6,133 — 6,133 Restricted commercial mortgage loans related to securitization entities — — 175 — 175 Policy loans — — 1,567 — 1,567 Other invested assets — 124 2,652 (3 ) 2,773 Restricted other invested assets related to securitization entities, at fair value — — 412 — 412 Investments in subsidiaries 13,563 13,610 — (27,173 ) — Total investments 13,563 13,884 72,113 (27,376 ) 72,184 Cash and cash equivalents — 734 2,932 — 3,666 Accrued investment income — — 685 — 685 Deferred acquisition costs — — 4,437 — 4,437 Intangible assets — — 284 — 284 Goodwill — — 14 — 14 Reinsurance recoverable — — 17,276 — 17,276 Other assets 2 216 361 (2 ) 577 Intercompany notes receivable 2 291 399 (692 ) — Separate account assets — — 7,893 — 7,893 Assets held for sale related to discontinued operations — — 1,206 — 1,206 Total assets $ 13,567 $ 15,125 $ 107,600 $ (28,070 ) $ 108,222 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 36,472 $ — $ 36,472 Policyholder account balances — — 26,000 — 26,000 Liability for policy and contract claims — — 8,065 — 8,065 Unearned premiums — — 3,340 — 3,340 Other liabilities 5 260 2,982 (6 ) 3,241 Intercompany notes payable — 602 290 (892 ) — Borrowings related to securitization entities — — 188 — 188 Non-recourse funding obligations — — 1,951 — 1,951 Long-term borrowings — 4,100 501 — 4,601 Deferred tax liability (23 ) (1,077 ) 1,301 — 201 Separate account liabilities — — 7,893 — 7,893 Liabilities held for sale related to discontinued operations 6 — 848 — 854 Total liabilities (12 ) 3,885 89,831 (898 ) 92,806 Stockholders’ equity: Common stock 1 — — — 1 Additional paid-in capital 11,944 9,098 16,956 (26,054 ) 11,944 Accumulated other comprehensive income (loss) 3,478 3,560 3,498 (7,058 ) 3,478 Retained earnings 856 (1,418 ) (4,827 ) 6,245 856 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,579 11,240 15,627 (26,867 ) 13,579 Noncontrolling interests — — 2,142 (305 ) 1,837 Total stockholders’ equity 13,579 11,240 17,769 (27,172 ) 15,416 Total liabilities and stockholders’ equity $ 13,567 $ 15,125 $ 107,600 $ (28,070 ) $ 108,222 The following table presents the condensed consolidating balance sheet information as of December 31, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ 150 $ 61,326 $ (200 ) $ 61,276 Equity securities available-for-sale, at fair value — — 275 — 275 Commercial mortgage loans — — 6,100 — 6,100 Restricted commercial mortgage loans related to securitization entities — — 201 — 201 Policy loans — — 1,501 — 1,501 Other invested assets — 14 2,235 (5 ) 2,244 Restricted other invested assets related to securitization entities, at fair value — — 411 — 411 Investments in subsidiaries 14,895 15,003 — (29,898 ) — Total investments 14,895 15,167 72,049 (30,103 ) 72,008 Cash and cash equivalents — 953 3,763 — 4,716 Accrued investment income — — 668 (4 ) 664 Deferred acquisition costs — — 4,849 — 4,849 Intangible assets — — 250 — 250 Goodwill — — 16 — 16 Reinsurance recoverable — — 17,314 — 17,314 Other assets 2 207 316 (1 ) 524 Intercompany notes receivable 9 267 395 (671 ) — Separate account assets — — 9,208 — 9,208 Assets held for sale related to discontinued operations — — 1,809 — 1,809 Total assets $ 14,906 $ 16,594 $ 110,637 $ (30,779 ) $ 111,358 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 35,915 $ — $ 35,915 Policyholder account balances — — 26,032 — 26,032 Liability for policy and contract claims — — 7,937 — 7,937 Unearned premiums — — 3,547 — 3,547 Other liabilities 3 251 3,039 (11 ) 3,282 Intercompany notes payable — 604 267 (871 ) — Borrowings related to securitization entities — — 219 — 219 Non-recourse funding obligations — — 1,996 — 1,996 Long-term borrowings — 4,151 488 — 4,639 Deferred tax liability (20 ) (970 ) 1,848 — 858 Separate account liabilities — — 9,208 — 9,208 Liabilities held for sale related to discontinued operations — — 928 — 928 Total liabilities (17 ) 4,036 91,424 (882 ) 94,561 Stockholders’ equity: Common stock 1 — — — 1 Additional paid-in capital 11,997 9,162 17,080 (26,242 ) 11,997 Accumulated other comprehensive income (loss) 4,446 4,449 4,459 (8,908 ) 4,446 Retained earnings 1,179 (1,053 ) (4,205 ) 5,258 1,179 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 14,923 12,558 17,334 (29,892 ) 14,923 Noncontrolling interests — — 1,879 (5 ) 1,874 Total stockholders’ equity 14,923 12,558 19,213 (29,897 ) 16,797 Total liabilities and stockholders’ equity $ 14,906 $ 16,594 $ 110,637 $ (30,779 ) $ 111,358 |
Condensed Consolidating Income Statement | The following table presents the condensed consolidating income statement information for the three months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,145 $ — $ 1,145 Net investment income (1 ) — 788 (4 ) 783 Net investment gains (losses) — 21 (72 ) — (51 ) Insurance and investment product fees and other — (10 ) 233 — 223 Total revenues (1 ) 11 2,094 (4 ) 2,100 Benefits and expenses: Benefits and other changes in policy reserves — — 1,290 — 1,290 Interest credited — — 179 — 179 Acquisition and operating expenses, net of deferrals 9 1 304 — 314 Amortization of deferred acquisition costs and intangibles — — 563 — 563 Interest expense — 77 32 (4 ) 105 Total benefits and expenses 9 78 2,368 (4 ) 2,451 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (10 ) (67 ) (274 ) — (351 ) Provision (benefit) for income taxes (40 ) 21 (115 ) — (134 ) Equity in income (loss) of subsidiaries (314 ) (270 ) — 584 — Income (loss) from continuing operations (284 ) (358 ) (159 ) 584 (217 ) Income (loss) from discontinued operations, net of taxes — — (21 ) — (21 ) Net income (loss) (284 ) (358 ) (180 ) 584 (238 ) Less: net income attributable to noncontrolling interests — — 46 — 46 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (284 ) $ (358 ) $ (226 ) $ 584 $ (284 ) The following table presents the condensed consolidating income statement information for the three months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,210 $ — $ 1,210 Net investment income (1 ) — 783 (4 ) 778 Net investment gains (losses) — 9 (36 ) — (27 ) Insurance and investment product fees and other — — 229 — 229 Total revenues (1 ) 9 2,186 (4 ) 2,190 Benefits and expenses: Benefits and other changes in policy reserves — — 1,934 — 1,934 Interest credited — — 185 — 185 Acquisition and operating expenses, net of deferrals 5 — 279 — 284 Amortization of deferred acquisition costs and intangibles — — 113 — 113 Goodwill impairment — — 550 — 550 Interest expense — 77 31 (4 ) 104 Total benefits and expenses 5 77 3,092 (4 ) 3,170 Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries (6 ) (68 ) (906 ) — (980 ) Provision (benefit) for income taxes 8 (16 ) (179 ) — (187 ) Equity in income (loss) of subsidiaries (830 ) (785 ) — 1,615 — Income (loss) from continuing operations (844 ) (837 ) (727 ) 1,615 (793 ) Income (loss) from discontinued operations, net of taxes — — 6 — 6 Net income (loss) (844 ) (837 ) (721 ) 1,615 (787 ) Less: net income attributable to noncontrolling interests — — 57 — 57 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (844 ) $ (837 ) $ (778 ) $ 1,615 $ (844 ) The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 3,422 $ — $ 3,422 Net investment income (2 ) 1 2,369 (11 ) 2,357 Net investment gains (losses) — 37 (96 ) — (59 ) Insurance and investment product fees and other — (30 ) 703 (1 ) 672 Total revenues (2 ) 8 6,398 (12 ) 6,392 Benefits and expenses: Benefits and other changes in policy reserves — — 3,714 — 3,714 Interest credited — — 540 — 540 Acquisition and operating expenses, net of deferrals 23 2 851 — 876 Amortization of deferred acquisition costs and intangibles — — 759 — 759 Interest expense — 231 96 (12 ) 315 Total benefits and expenses 23 233 5,960 (12 ) 6,204 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (25 ) (225 ) 438 — 188 Provision (benefit) for income taxes (7 ) (81 ) 115 — 27 Equity in income (loss) of subsidiaries (299 ) (319 ) — 618 — Income (loss) from continuing operations (317 ) (463 ) 323 618 161 Income (loss) from discontinued operations, net of taxes (6 ) — (328 ) — (334 ) Net income (loss) (323 ) (463 ) (5 ) 618 (173 ) Less: net income attributable to noncontrolling interests — — 150 — 150 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (323 ) $ (463 ) $ (155 ) $ 618 $ (323 ) The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 3,486 $ — $ 3,486 Net investment income (1 ) — 2,357 (11 ) 2,345 Net investment gains (losses) — — (11 ) — (11 ) Insurance and investment product fees and other — (3 ) 684 (1 ) 680 Total revenues (1 ) (3 ) 6,516 (12 ) 6,500 Benefits and expenses: Benefits and other changes in policy reserves — — 4,282 — 4,282 Interest credited — — 552 — 552 Acquisition and operating expenses, net of deferrals 15 — 824 — 839 Amortization of deferred acquisition costs and intangibles — — 325 — 325 Goodwill impairment — — 550 — 550 Interest expense — 244 95 (12 ) 327 Total benefits and expenses 15 244 6,628 (12 ) 6,875 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (16 ) (247 ) (112 ) — (375 ) Provision (benefit) for income taxes 13 (80 ) 55 (4 ) (16 ) Equity in income (loss) of subsidiaries (455 ) (389 ) — 844 — Income (loss) from continuing operations (484 ) (556 ) (167 ) 848 (359 ) Income (loss) from discontinued operations, net of taxes — — 19 — 19 Net income (loss) (484 ) (556 ) (148 ) 848 (340 ) Less: net income attributable to noncontrolling interests — — 144 — 144 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (484 ) $ (556 ) $ (292 ) $ 848 $ (484 ) |
Condensed Consolidating Statement of Comprehensive Income | The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (284 ) $ (358 ) $ (180 ) $ 584 $ (238 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 103 111 85 (212 ) 87 Net unrealized gains (losses) on other-than-temporarily impaired securities — (1 ) — 1 — Derivatives qualifying as hedges 217 217 231 (448 ) 217 Foreign currency translation and other adjustments (151 ) (127 ) (302 ) 278 (302 ) Total other comprehensive income (loss) 169 200 14 (381 ) 2 Total comprehensive income (loss) (115 ) (158 ) (166 ) 203 (236 ) Less: comprehensive income attributable to noncontrolling interests — — (121 ) — (121 ) Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (115 ) $ (158 ) $ (45 ) $ 203 $ (115 ) The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (844 ) $ (837 ) $ (721 ) $ 1,615 $ (787 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (62 ) (60 ) (67 ) 121 (68 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 2 1 (3 ) 1 Derivatives qualifying as hedges 101 101 105 (206 ) 101 Foreign currency translation and other adjustments (267 ) (229 ) (379 ) 496 (379 ) Total other comprehensive income (loss) (227 ) (186 ) (340 ) 408 (345 ) Total comprehensive income (loss) (1,071 ) (1,023 ) (1,061 ) 2,023 (1,132 ) Less: comprehensive income attributable to noncontrolling interests — — (61 ) — (61 ) Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (1,071 ) $ (1,023 ) $ (1,000 ) $ 2,023 $ (1,071 ) The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (323 ) $ (463 ) $ (5 ) $ 618 $ (173 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (708 ) (696 ) (729 ) 1,405 (728 ) Net unrealized gains (losses) on other-than-temporarily impaired securities — (1 ) — 1 — Derivatives qualifying as hedges 60 60 68 (128 ) 60 Foreign currency translation and other adjustments (344 ) (276 ) (619 ) 620 (619 ) Total other comprehensive income (loss) (992 ) (913 ) (1,280 ) 1,898 (1,287 ) Total comprehensive income (loss) (1,315 ) (1,376 ) (1,285 ) 2,516 (1,460 ) Less: comprehensive income attributable to noncontrolling interests — — (145 ) — (145 ) Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (1,315 ) $ (1,376 ) $ (1,140 ) $ 2,516 $ (1,315 ) The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (484 ) $ (556 ) $ (148 ) $ 848 $ (340 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 1,155 1,129 1,171 (2,284 ) 1,171 Net unrealized gains (losses) on other-than-temporarily impaired securities 8 9 8 (17 ) 8 Derivatives qualifying as hedges 434 434 460 (894 ) 434 Foreign currency translation and other adjustments (148 ) (109 ) (252 ) 257 (252 ) Total other comprehensive income (loss) 1,449 1,463 1,387 (2,938 ) 1,361 Total comprehensive income (loss) 965 907 1,239 (2,090 ) 1,021 Less: comprehensive income attributable to noncontrolling interests — — 56 — 56 Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ 965 $ 907 $ 1,183 $ (2,090 ) $ 965 |
Condensed Consolidating Statement of Cash Flows | The following table presents the condensed consolidating cash flow statement information for the nine months ended September 30, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (323 ) $ (463 ) $ (5 ) $ 618 $ (173 ) Less loss from discontinued operations, net of taxes 6 — 328 — 334 Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in (income) loss from subsidiaries 299 319 — (618 ) — Dividends from subsidiaries — 454 (454 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — — (80 ) — (80 ) Net investment losses (gains) — (37 ) 96 — 59 Charges assessed to policyholders — — (586 ) — (586 ) Acquisition costs deferred — — (226 ) — (226 ) Amortization of deferred acquisition costs and intangibles — — 759 — 759 Deferred income taxes (2 ) (102 ) (13 ) — (117 ) Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments — 27 (274 ) — (247 ) Stock-based compensation expense 16 — (2 ) — 14 Change in certain assets and liabilities: Accrued investment income and other assets — 3 (133 ) (3 ) (133 ) Insurance reserves — — 1,270 — 1,270 Current tax liabilities (1 ) 13 (88 ) 5 (71 ) Other liabilities, policy and contract claims and other policy-related balances — (1 ) 353 — 352 Cash from operating activities—discontinued operations — — 3 — 3 Net cash from operating activities (5 ) 213 948 2 1,158 Cash flows from investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 1 3,388 — 3,389 Commercial mortgage loans — — 640 — 640 Restricted commercial mortgage loans related to securitization entities — — 27 — 27 Proceeds from sales of investments: Fixed maturity and equity securities — — 1,333 — 1,333 Purchases and originations of investments: Fixed maturity and equity securities — — (6,836 ) — (6,836 ) Commercial mortgage loans — — (678 ) — (678 ) Other invested assets, net — (100 ) 63 (2 ) (39 ) Policy loans, net — — 23 — 23 Intercompany notes receivable 7 (24 ) (4 ) 21 — Capital contributions to subsidiaries — (25 ) 25 — — Cash transferred for purchase of a subsidiary — (202 ) 202 — — Cash from investing activities—discontinued operations — — (22 ) — (22 ) Net cash from investing activities 7 (350 ) (1,839 ) 19 (2,163 ) Cash flows from financing activities: Deposits to universal life and investment contracts — — 1,693 — 1,693 Withdrawals from universal life and investment contracts — — (1,677 ) — (1,677 ) Redemption of non-recourse funding obligations — — (45 ) — (45 ) Proceeds from the issuance of long-term debt — — 150 — 150 Repayment and repurchase of long-term debt — (50 ) (70 ) — (120 ) Repayment of borrowings related to securitization entities — — (26 ) — (26 ) Proceeds from sale of subsidiary shares to noncontrolling interests — — 226 — 226 Repurchase of subsidiary shares — — (17 ) — (17 ) Dividends paid to noncontrolling interests — — (145 ) — (145 ) Proceeds from intercompany notes payable — (2 ) 23 (21 ) — Other, net (2 ) (30 ) 7 — (25 ) Cash from financing activities—discontinued operations — — (33 ) — (33 ) Net cash from financing activities (2 ) (82 ) 86 (21 ) (19 ) Effect of exchange rate changes on cash and cash equivalents — — (86 ) — (86 ) Net change in cash and cash equivalents — (219 ) (891 ) — (1,110 ) Cash and cash equivalents at beginning of period — 953 3,965 — 4,918 Cash and cash equivalents at end of period — 734 3,074 — 3,808 Less cash and cash equivalents of discontinued operations at end of period — — 142 — 142 Cash and cash equivalents of continuing operations at end of period $ — $ 734 $ 2,932 $ — $ 3,666 The following table presents the condensed consolidating cash flow statement information for the nine months ended September 30, 2014: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (484 ) $ (556 ) $ (148 ) $ 848 $ (340 ) Less income from discontinued operations, net of taxes — — (19 ) — (19 ) Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in (income) loss from subsidiaries 455 389 — (844 ) — Dividends from subsidiaries — 563 (563 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — — (97 ) — (97 ) Net investment losses (gains) — — 11 — 11 Charges assessed to policyholders — — (580 ) — (580 ) Acquisition costs deferred — — (282 ) — (282 ) Amortization of deferred acquisition costs and intangibles — — 325 — 325 Goodwill impairment — — 550 — 550 Deferred income taxes 25 (137 ) (70 ) (4 ) (186 ) Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments — — 110 — 110 Stock-based compensation expense 15 — 4 — 19 Change in certain assets and liabilities: Accrued investment income and other assets (2 ) 44 (213 ) (4 ) (175 ) Insurance reserves — — 1,260 — 1,260 Current tax liabilities (16 ) (37 ) (132 ) — (185 ) Other liabilities, policy and contract claims and other policy-related balances 12 51 665 3 731 Cash from operating activities—discontinued operations — — (2 ) — (2 ) Net cash from operating activities 5 317 819 (1 ) 1,140 Cash flows from investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 3,638 — 3,638 Commercial mortgage loans — — 528 — 528 Restricted commercial mortgage loans related to securitization entities — — 24 — 24 Proceeds from sales of investments: Fixed maturity and equity securities — — 1,651 — 1,651 Purchases and originations of investments: Fixed maturity and equity securities — — (7,202 ) — (7,202 ) Commercial mortgage loans — — (709 ) — (709 ) Other invested assets, net — — 103 1 104 Policy loans, net — — 11 — 11 Intercompany notes receivable 8 (15 ) 9 (2 ) — Capital contributions to subsidiaries (12 ) — 12 — — Cash from investing activities—discontinued operations — (48 ) — (48 ) Net cash from investing activities (4 ) (15 ) (1,983 ) (1 ) (2,003 ) Cash flows from financing activities: Deposits to universal life and investment contracts — — 2,201 — 2,201 Withdrawals from universal life and investment contracts — — (1,950 ) — (1,950 ) Redemption of non-recourse funding obligations — — (28 ) — (28 ) Proceeds from the issuance of long-term debt — — 144 — 144 Repayment and repurchase of long-term debt — (485 ) (136 ) — (621 ) Repayment of borrowings related to securitization entities — — (24 ) — (24 ) Proceeds from sale of subsidiary shares to noncontrolling interests — — 517 — 517 Dividends paid to noncontrolling interests — — (46 ) — (46 ) Proceeds from intercompany notes payable 1 (17 ) 14 2 — Other, net (2 ) (31 ) 14 — (19 ) Cash from financing activities—discontinued operations — — (25 ) — (25 ) Net cash from financing activities (1 ) (533 ) 681 2 149 Effect of exchange rate changes on cash and cash equivalents — — (23 ) — (23 ) Net change in cash and cash equivalents — (231 ) (506 ) — (737 ) Cash and cash equivalents at beginning of period — 1,219 2,995 — 4,214 Cash and cash equivalents at end of period — 988 2,489 — 3,477 Less cash and cash equivalents of discontinued operations at end of period — — 193 — 193 Cash and cash equivalents from continuing operations at end of period $ — $ 988 $ 2,296 $ — $ 3,284 |
Formation of Genworth and Bas39
Formation of Genworth and Basis of Presentation - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Apr. 01, 2013 | |
Prior year restatement | |||
Insurance reserves | $ 1,270 | $ 1,260 | |
Other liabilities, policy and contract claims and other policy-related balances | $ 352 | 731 | |
Cash Flows Statement, Operating Cash Flows Restatement | |||
Prior year restatement | |||
Insurance reserves | (514) | ||
Other liabilities, policy and contract claims and other policy-related balances | $ 514 | ||
Genworth Holdings | |||
Prior year restatement | |||
Percentage of subsidiary equity ownership | 100.00% | 100.00% |
Accounting Changes - Additional
Accounting Changes - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Scenario, Forecast | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Amount presented in other assets to be deducted from debt liabilities due to early adoption of new guidance | $ 45 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings (Loss) Per Share [Abstract] | |||||
Weighted-average common shares used in basic earnings (loss) per common share calculations | 497.4 | 496.6 | 497.3 | 496.4 | |
Stock options, restricted stock units and stock appreciation rights | 0 | 0 | 1.7 | 0 | |
Weighted-average common shares used in diluted earnings (loss) per common share calculations | [1] | 497.4 | 496.6 | 499 | 496.4 |
Income (loss) from continuing operations: | |||||
Income (loss) from continuing operations | $ (217) | $ (793) | $ 161 | $ (359) | |
Less: income from continuing operations attributable to noncontrolling interests | 46 | 57 | 150 | 144 | |
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ (263) | $ (850) | $ 11 | $ (503) | |
Basic per common share | $ (0.53) | $ (1.71) | $ 0.02 | $ (1.01) | |
Diluted per common share | $ (0.53) | $ (1.71) | $ 0.02 | $ (1.01) | |
Income (loss) from discontinued operations: | |||||
Income (loss) from discontinued operations, net of taxes | $ (21) | $ 6 | $ (334) | $ 19 | |
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.'s common stockholders | $ (21) | $ 6 | $ (334) | $ 19 | |
Basic per common share | $ (0.04) | $ 0.01 | $ (0.67) | $ 0.04 | |
Diluted per common share | $ (0.04) | $ 0.01 | $ (0.67) | $ 0.04 | |
Net income (loss): | |||||
Income (loss) from continuing operations | $ (217) | $ (793) | $ 161 | $ (359) | |
Income (loss) from discontinued operations, net of taxes | (21) | 6 | (334) | 19 | |
Net loss | (238) | (787) | (173) | (340) | |
Less: net income attributable to noncontrolling interests | 46 | 57 | 150 | 144 | |
Net loss available to Genworth Financial, Inc.'s common stockholders | $ (284) | $ (844) | $ (323) | $ (484) | |
Basic per common share | $ (0.57) | $ (1.70) | $ (0.65) | $ (0.98) | |
Diluted per common share | $ (0.57) | $ (1.70) | $ (0.65) | $ (0.98) | |
[1] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.'s common stockholders and net loss available to Genworth Financial, Inc.'s common stockholders for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 1.3 million, 5.4 million and 6.4 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.'s common stockholders and net loss available to Genworth Financial, Inc.'s common stockholders for the three months ended September 30, 2015 and the three and nine months ended September 30, 2014, dilutive potential weighted-average common shares outstanding would have been 498.7 million, 502.0 million and 502.8 million, respectively. |
Earnings (Loss) Per Share (Pare
Earnings (Loss) Per Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | |
Earnings Per Share Disclosure [Line Items] | |||
Weighted-average diluted common shares outstanding, antidilutive securities (stock options, RSUs and SARs) | 1.3 | 5.4 | 6.4 |
Weighted-average number of diluted shares if not in a loss position | 498.7 | 502 | 502.8 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 803 | $ 801 | $ 2,423 | $ 2,415 |
Expenses and fees | (20) | (23) | (66) | (70) |
Net investment income | 783 | 778 | 2,357 | 2,345 |
Fixed maturity securities - taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 647 | 643 | 1,924 | 1,940 |
Fixed maturity securities - non-taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 3 | 3 | 9 | 9 |
Commercial mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 84 | 82 | 252 | 246 |
Restricted commercial mortgage loans related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 3 | 3 | 10 | 11 |
Equity Securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 3 | 3 | 11 | 11 |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 26 | 27 | 103 | 81 |
Restricted other invested assets related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 1 | 1 | 3 | 3 |
Policy Loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 33 | 32 | 101 | 95 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 3 | $ 7 | $ 10 | $ 19 |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Investments [Abstract] | |||||
Realized gains | $ 14 | $ 17 | $ 49 | $ 61 | |
Realized losses | (18) | (5) | (36) | (42) | |
Net realized gains (losses) on available-for-sale securities | (4) | 12 | 13 | 19 | |
Total other-than-temporary impairments | (10) | (13) | (13) | (16) | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 1 | 7 | 1 | 7 | |
Net other-than-temporary impairments | (9) | (6) | (12) | (9) | |
Trading securities | 12 | 4 | 2 | 24 | |
Commercial mortgage loans | 1 | 3 | 5 | 9 | |
Net gains (losses) related to securitization entities | (1) | (1) | 9 | 14 | |
Derivative instruments | [1] | (53) | (38) | (79) | (66) |
Contingent consideration adjustment | 2 | (1) | 2 | (1) | |
Other | 1 | 0 | 1 | (1) | |
Net investment gains (losses) | $ (51) | $ (27) | $ (59) | $ (11) | |
[1] | See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($)Loan | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Loan | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)Loan | ||
Schedule of Investments [Line Items] | ||||||
Aggregate fair value of securities sold | $ 186 | $ 215 | $ 470 | $ 721 | ||
Aggregate fair value of securities sold, percentage of book value | 93.00% | 98.00% | 94.00% | 95.00% | ||
12 months or more, Gross unrealized losses | $ 171 | $ 171 | $ 172 | [1] | ||
Gross unrealized losses | 603 | 603 | 289 | [1] | ||
Investments subject to call provisions | 7,703 | $ 7,703 | ||||
Percentage of investment portfolio by which no other industry group exceeded | 10.00% | |||||
Percentage of stockholders' equity by which no single issuer of fixed maturity securities exceeded | 10 | |||||
Commercial mortgage loans outstanding more than 90 days, interest accruing | 0 | $ 0 | 0 | |||
Commercial mortgage loans on nonaccrual status, past due less than 90 days | $ 0 | $ 0 | $ 0 | |||
Commercial mortgage loans modified or extended, number of loans | Loan | 15 | 15 | 28 | |||
Commercial mortgage loans modified or extended, carrying value | $ 93 | $ 93 | $ 254 | |||
Commercial mortgage loans, recorded investment | 6,151 | 6,151 | 6,123 | |||
Floating rate commercial mortgage loans | ||||||
Schedule of Investments [Line Items] | ||||||
Commercial mortgage loans, recorded investment | 7 | 7 | 9 | |||
Investment grade | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | 105 | 105 | 145 | [1] | ||
Gross unrealized losses | 437 | 437 | 220 | [1] | ||
Office | ||||||
Schedule of Investments [Line Items] | ||||||
Individually impaired commercial mortgage loans | 5 | 5 | ||||
Impaired loans, unpaid principal balance | 6 | 6 | ||||
Individually impaired loans, charge-offs | 1 | 1 | ||||
Commercial mortgage loans, recorded investment | 1,594 | 1,594 | 1,643 | |||
Industrial | ||||||
Schedule of Investments [Line Items] | ||||||
Individually impaired commercial mortgage loans | 14 | 14 | 15 | |||
Impaired loans, unpaid principal balance | 15 | 15 | 16 | |||
Individually impaired loans, charge-offs | 1 | |||||
Individually impaired loans, interest income | 1 | |||||
Commercial mortgage loans, recorded investment | $ 1,580 | $ 1,580 | 1,597 | |||
Less Than Twelve Months | ||||||
Schedule of Investments [Line Items] | ||||||
Average fair value percentage below cost for securities in a continuous loss position | 5.00% | 5.00% | ||||
Less Than Twelve Months | Less Than 20 Percent Below Cost | Investment grade | ||||||
Schedule of Investments [Line Items] | ||||||
Stated percentage below cost of securities in unrealized loss position | 20.00% | 20.00% | ||||
Fixed maturity securities | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | $ 171 | $ 171 | 168 | [1] | ||
Gross unrealized losses | 571 | 571 | 282 | [1] | ||
Fixed maturity securities | Non-U.S. corporate | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | 69 | 69 | 28 | [1] | ||
Gross unrealized losses | 234 | $ 234 | 95 | [1] | ||
Fixed maturity securities | Finance and insurance | ||||||
Schedule of Investments [Line Items] | ||||||
Percent of investment portfolio, greater than 10% | 22.00% | |||||
Fixed maturity securities | Finance and insurance | Non-U.S. corporate | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | 0 | $ 0 | 1 | |||
Gross unrealized losses | 6 | $ 6 | 3 | |||
Fixed maturity securities | Energy | ||||||
Schedule of Investments [Line Items] | ||||||
Percent of investment portfolio, greater than 10% | 12.00% | |||||
Fixed maturity securities | Energy | Non-U.S. corporate | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | 15 | $ 15 | 5 | |||
Gross unrealized losses | 70 | $ 70 | 38 | |||
Fixed maturity securities | Utilities | ||||||
Schedule of Investments [Line Items] | ||||||
Percent of investment portfolio, greater than 10% | 12.00% | |||||
Fixed maturity securities | Utilities | Non-U.S. corporate | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | 2 | $ 2 | 2 | |||
Gross unrealized losses | 6 | $ 6 | 2 | |||
Fixed maturity securities | Consumer-non-cyclical | ||||||
Schedule of Investments [Line Items] | ||||||
Percent of investment portfolio, greater than 10% | 13.00% | |||||
Fixed maturity securities | Consumer-non-cyclical | Non-U.S. corporate | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | 3 | $ 3 | 3 | |||
Gross unrealized losses | 15 | 15 | 9 | |||
Fixed maturity securities | Industrial | Non-U.S. corporate | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | 25 | 25 | 9 | |||
Gross unrealized losses | $ 67 | $ 67 | 18 | |||
Fixed maturity securities | More Than 20% Below Cost | Non-U.S. corporate | ||||||
Schedule of Investments [Line Items] | ||||||
Stated percentage below cost of securities in unrealized loss position | 20.00% | 20.00% | ||||
12 months or more, Gross unrealized losses | $ 46 | $ 46 | ||||
Fixed maturity securities | More Than 20% Below Cost | Industrial | Non-U.S. corporate | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 39.00% | 39.00% | ||||
Gross unrealized losses | $ 18 | $ 18 | ||||
Fixed maturity securities | Less Than 20 Percent Below Cost | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | 78 | 78 | 114 | [1] | ||
Gross unrealized losses | $ 418 | $ 418 | $ 217 | [1] | ||
Fixed maturity securities | Less Than 20 Percent Below Cost | Investment grade | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 70.00% | 70.00% | ||||
Fixed maturity securities | 12 Months Or More | More Than 20% Below Cost | ||||||
Schedule of Investments [Line Items] | ||||||
Stated percentage below cost of securities in unrealized loss position | 20.00% | 20.00% | ||||
Fixed maturity securities | 12 Months Or More | Less Than 20 Percent Below Cost | ||||||
Schedule of Investments [Line Items] | ||||||
Stated percentage below cost of securities in unrealized loss position | 20.00% | 20.00% | ||||
Average fair value percentage below cost for securities in a continuous loss position | 6.00% | 6.00% | ||||
Structured Securities | More Than 20% Below Cost | ||||||
Schedule of Investments [Line Items] | ||||||
12 months or more, Gross unrealized losses | $ 31 | $ 31 | ||||
Structured Securities | 12 Months Or More | More Than 20% Below Cost | ||||||
Schedule of Investments [Line Items] | ||||||
Stated percentage below cost of securities in unrealized loss position | 20.00% | 20.00% | ||||
Unrealized losses on other than temporarily impaired securities, portion recognized in OCI, securities in a loss position | $ 0 | $ 0 | ||||
[1] | Amounts included $1 million of unrealized losses on other-than-temporarily impaired securities. |
Credit Losses Recognized in Net
Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Cumulative credit losses, beginning balance | $ 75 | $ 95 | $ 83 | $ 101 |
Other-than-temporary impairments not previously recognized | 0 | 1 | 0 | 2 |
Securities sold, paid down or disposed | (9) | (7) | (17) | (14) |
Cumulative credit losses, ending balance | $ 66 | $ 89 | $ 66 | $ 89 |
Net Unrealized Gains and Losses
Net Unrealized Gains and Losses on Available-for-Sale Investment Securities Reflected as Separate Component of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves | $ (1,386) | $ (1,656) | |||||
Income taxes, net | (976) | (1,372) | |||||
Net unrealized investment gains (losses) including noncontrolling interests | 1,834 | 2,562 | |||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 103 | 109 | |||||
Net unrealized investment gains (losses) | [1] | 1,731 | $ 1,628 | 2,453 | $ 2,067 | $ 2,128 | $ 926 |
Net Unrealized Gains (Losses) On Investment Securities | |||||||
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Fixed maturity securities | 4,213 | 5,560 | |||||
Equity securities | (17) | 32 | |||||
Other invested assets | 0 | (2) | |||||
Subtotal | $ 4,196 | $ 5,590 | |||||
[1] | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. |
Change in Net Unrealized Gains
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Investments [Abstract] | |||||
Net unrealized investment gains (losses), beginning of period | [1] | $ 1,628 | $ 2,128 | $ 2,453 | $ 926 |
Unrealized gains (losses) on investment securities | 70 | (225) | (1,393) | 2,399 | |
Adjustment to deferred acquisition costs | 32 | 35 | 102 | (160) | |
Adjustment to present value of future profits | (5) | 36 | 45 | (55) | |
Adjustment to sales inducements | 9 | 9 | 12 | (19) | |
Adjustment to benefit reserves | 23 | 49 | 111 | (339) | |
Provision for income taxes | (50) | 33 | 396 | (640) | |
Change in unrealized gains (losses) on investment securities | [1] | 79 | (63) | (727) | 1,186 |
Reclassification adjustments to net investment (gains) losses, net of taxes | [1] | 8 | (4) | (1) | (7) |
Change in net unrealized investment gains (losses) | [1] | 87 | (67) | (728) | 1,179 |
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | [1] | (16) | (6) | (6) | 38 |
Net unrealized investment gains (losses), end of period | [1] | $ 1,731 | $ 2,067 | $ 1,731 | $ 2,067 |
[1] | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. |
Change in Net Unrealized Gain49
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification adjustments to net investment (gains) losses, taxes | $ (5) | $ 2 | $ 0 | $ 4 |
Amortized Cost or Cost, Gross U
Amortized Cost or Cost, Gross Unrealized Gains (Losses) and Fair Value of Fixed Maturity and Equity Securities Classified as Available-for-Sale (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | $ 56,807 | $ 55,854 |
Fair value, fixed maturity securities | 60,851 | 61,276 |
Amortized cost or cost, equity securities | 300 | 250 |
Fair value, equity securities | 273 | 275 |
Amortized cost or cost, total | 57,107 | 56,104 |
Fair value, total | 61,124 | 61,551 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 5,065 | 5,006 |
Fair value, fixed maturity securities | 5,913 | 6,000 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,280 | 2,013 |
Fair value, fixed maturity securities | 2,448 | 2,222 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,836 | 1,778 |
Fair value, fixed maturity securities | 1,952 | 1,920 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 23,788 | 22,492 |
Fair value, fixed maturity securities | 25,695 | 25,236 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,398 | 3,292 |
Fair value, fixed maturity securities | 3,800 | 3,864 |
Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,664 | 2,498 |
Fair value, fixed maturity securities | 2,771 | 2,742 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 5,422 | 5,109 |
Fair value, fixed maturity securities | 5,849 | 5,653 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,742 | 3,489 |
Fair value, fixed maturity securities | 4,142 | 4,019 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,292 | 2,112 |
Fair value, fixed maturity securities | 2,408 | 2,325 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,254 | 1,195 |
Fair value, fixed maturity securities | 1,301 | 1,287 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,873 | 1,748 |
Fair value, fixed maturity securities | 2,077 | 2,006 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,732 | 1,750 |
Fair value, fixed maturity securities | 1,833 | 1,900 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,012 | 929 |
Fair value, fixed maturity securities | 1,091 | 1,039 |
Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 399 | 370 |
Fair value, fixed maturity securities | 423 | 401 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 12,693 | 13,395 |
Fair value, fixed maturity securities | 13,199 | 14,263 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 861 | 867 |
Fair value, fixed maturity securities | 897 | 913 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,856 | 1,925 |
Fair value, fixed maturity securities | 1,891 | 2,050 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,709 | 2,812 |
Fair value, fixed maturity securities | 2,877 | 3,012 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 740 | 780 |
Fair value, fixed maturity securities | 755 | 812 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 975 | 999 |
Fair value, fixed maturity securities | 996 | 1,066 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,129 | 1,178 |
Fair value, fixed maturity securities | 1,096 | 1,225 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 600 | 605 |
Fair value, fixed maturity securities | 610 | 631 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 561 | 535 |
Fair value, fixed maturity securities | 566 | 549 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 556 | 525 |
Fair value, fixed maturity securities | 611 | 594 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,706 | 3,169 |
Fair value, fixed maturity securities | 2,900 | 3,411 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,728 | 4,871 |
Fair value, fixed maturity securities | 5,118 | 5,228 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,464 | 2,564 |
Fair value, fixed maturity securities | 2,587 | 2,702 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,953 | 3,735 |
Fair value, fixed maturity securities | 3,939 | 3,705 |
Not other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 4,581 | 5,666 |
Gross unrealized losses, fixed maturity securities | (571) | (281) |
Gross unrealized gains, equity securities | 5 | 32 |
Gross unrealized losses, equity securities | (32) | (7) |
Gross unrealized gains | 4,586 | 5,698 |
Gross unrealized losses | (603) | (288) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 855 | 995 |
Gross unrealized losses, fixed maturity securities | (7) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 195 | 236 |
Gross unrealized losses, fixed maturity securities | (27) | (27) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 120 | 144 |
Gross unrealized losses, fixed maturity securities | (4) | (2) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 2,132 | 2,800 |
Gross unrealized losses, fixed maturity securities | (242) | (76) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 420 | 577 |
Gross unrealized losses, fixed maturity securities | (18) | (5) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 178 | 265 |
Gross unrealized losses, fixed maturity securities | (71) | (21) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 447 | 537 |
Gross unrealized losses, fixed maturity securities | (37) | (13) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 423 | 538 |
Gross unrealized losses, fixed maturity securities | (23) | (8) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 144 | 217 |
Gross unrealized losses, fixed maturity securities | (28) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 75 | 100 |
Gross unrealized losses, fixed maturity securities | (28) | (8) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 215 | 263 |
Gross unrealized losses, fixed maturity securities | (11) | (5) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 114 | 158 |
Gross unrealized losses, fixed maturity securities | (13) | (8) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 89 | 114 |
Gross unrealized losses, fixed maturity securities | (10) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 27 | 31 |
Gross unrealized losses, fixed maturity securities | (3) | 0 |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 739 | 963 |
Gross unrealized losses, fixed maturity securities | (234) | (95) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 42 | 48 |
Gross unrealized losses, fixed maturity securities | (6) | (2) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 105 | 163 |
Gross unrealized losses, fixed maturity securities | (70) | (38) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 173 | 203 |
Gross unrealized losses, fixed maturity securities | (6) | (3) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 30 | 41 |
Gross unrealized losses, fixed maturity securities | (15) | (9) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 43 | 71 |
Gross unrealized losses, fixed maturity securities | (22) | (4) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 34 | 65 |
Gross unrealized losses, fixed maturity securities | (67) | (18) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 25 | 31 |
Gross unrealized losses, fixed maturity securities | (15) | (5) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 10 | 14 |
Gross unrealized losses, fixed maturity securities | (5) | 0 |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 59 | 70 |
Gross unrealized losses, fixed maturity securities | (4) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 218 | 257 |
Gross unrealized losses, fixed maturity securities | (24) | (15) |
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 389 | 362 |
Gross unrealized losses, fixed maturity securities | (10) | (17) |
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 126 | 143 |
Gross unrealized losses, fixed maturity securities | (7) | (9) |
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 25 | 23 |
Gross unrealized losses, fixed maturity securities | (40) | (54) |
Other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 34 | 38 |
Gross unrealized losses, fixed maturity securities | 0 | (1) |
Gross unrealized gains, equity securities | 0 | 0 |
Gross unrealized losses, equity securities | 0 | 0 |
Gross unrealized gains | 34 | 38 |
Gross unrealized losses | 0 | (1) |
Other-than-temporary impairments | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 17 | 20 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 17 | 20 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 1 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 1 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 0 | 0 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 11 | 13 |
Gross unrealized losses, fixed maturity securities | 0 | (1) |
Other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 4 | 4 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 1 | 1 |
Gross unrealized losses, fixed maturity securities | $ 0 | $ 0 |
Gross Unrealized Losses and Fai
Gross Unrealized Losses and Fair Value of Investment Securities (Detail) $ in Millions | Sep. 30, 2015USD ($)Securities | Dec. 31, 2014USD ($)Securities | |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 9,612 | $ 5,172 | |
Less than 12 months, Gross unrealized losses | $ (432) | $ (117) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,421 | 791 | |
12 months or more, Fair value | $ 1,449 | $ 3,215 | |
12 months or more, Gross unrealized losses | $ (171) | $ (172) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 248 | 497 | |
Fair value | $ 11,061 | $ 8,387 | |
Gross unrealized losses | $ (603) | $ (289) | [1] |
Number of securities in a continuous loss position | Securities | 1,669 | 1,288 | |
Below investment grade | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 980 | $ 591 | [2] |
Less than 12 months, Gross unrealized losses | $ (100) | $ (42) | [2] |
Less than 12 months, Number of securities in a continuous loss position | Securities | 173 | 127 | [2] |
12 months or more, Fair value | $ 255 | $ 297 | [2] |
12 months or more, Gross unrealized losses | $ (66) | $ (27) | [1],[2] |
12 months or more, Number of securities in a continuous loss position | Securities | 49 | 73 | [2] |
Fair value | $ 1,235 | $ 888 | [2] |
Gross unrealized losses | $ (166) | $ (69) | [1],[2] |
Number of securities in a continuous loss position | Securities | 222 | 200 | [2] |
Investment grade | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 8,632 | $ 4,581 | |
Less than 12 months, Gross unrealized losses | $ (332) | $ (75) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,248 | 664 | |
12 months or more, Fair value | $ 1,194 | $ 2,918 | |
12 months or more, Gross unrealized losses | $ (105) | $ (145) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 199 | 424 | |
Fair value | $ 9,826 | $ 7,499 | |
Gross unrealized losses | $ (437) | $ (220) | [1] |
Number of securities in a continuous loss position | Securities | 1,447 | 1,088 | |
Fixed maturity securities | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 9,430 | $ 5,142 | |
Less than 12 months, Gross unrealized losses | $ (400) | $ (114) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,356 | 745 | |
12 months or more, Fair value | $ 1,449 | $ 3,167 | |
12 months or more, Gross unrealized losses | $ (171) | $ (168) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 248 | 491 | |
Fair value | $ 10,879 | $ 8,309 | |
Gross unrealized losses | $ (571) | $ (282) | [1] |
Number of securities in a continuous loss position | Securities | 1,604 | 1,236 | |
Fixed maturity securities | Less Than 20 Percent Below Cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 9,298 | $ 5,105 | |
Less than 12 months, Gross unrealized losses | $ (340) | $ (103) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,329 | 741 | |
12 months or more, Fair value | $ 1,238 | $ 3,036 | |
12 months or more, Gross unrealized losses | $ (78) | $ (114) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 219 | 470 | |
Fair value | $ 10,536 | $ 8,141 | |
Gross unrealized losses | $ (418) | $ (217) | [1] |
Number of securities in a continuous loss position | Securities | 1,548 | 1,211 | |
Fixed maturity securities | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 127 | $ 37 | |
Less than 12 months, Gross unrealized losses | $ (50) | $ (11) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 25 | 4 | |
12 months or more, Fair value | $ 206 | $ 131 | |
12 months or more, Gross unrealized losses | $ (86) | $ (53) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 27 | 15 | |
Fair value | $ 333 | $ 168 | |
Gross unrealized losses | $ (136) | $ (64) | [1] |
Number of securities in a continuous loss position | Securities | 52 | 19 | |
Fixed maturity securities | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 5 | $ 0 | |
Less than 12 months, Gross unrealized losses | $ (10) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2 | 0 | |
12 months or more, Fair value | $ 5 | $ 0 | |
12 months or more, Gross unrealized losses | $ (7) | $ (1) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 6 | |
Fair value | $ 10 | $ 0 | |
Gross unrealized losses | $ (17) | $ (1) | [1] |
Number of securities in a continuous loss position | Securities | 4 | 6 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 406 | $ 0 | |
Less than 12 months, Gross unrealized losses | $ (7) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 10 | 0 | |
12 months or more, Fair value | $ 0 | $ 75 | |
12 months or more, Gross unrealized losses | $ 0 | $ (1) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 10 | |
Fair value | $ 406 | $ 75 | |
Gross unrealized losses | $ (7) | $ (1) | [1] |
Number of securities in a continuous loss position | Securities | 10 | 10 | |
Fixed maturity securities | State and Political Subdivisions | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 334 | $ 9 | |
Less than 12 months, Gross unrealized losses | $ (10) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 54 | 7 | |
12 months or more, Fair value | $ 155 | $ 267 | |
12 months or more, Gross unrealized losses | $ (17) | $ (27) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 16 | 45 | |
Fair value | $ 489 | $ 276 | |
Gross unrealized losses | $ (27) | $ (27) | [1] |
Number of securities in a continuous loss position | Securities | 70 | 52 | |
Fixed maturity securities | Non-U.S. government | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 148 | $ 64 | |
Less than 12 months, Gross unrealized losses | $ (4) | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 33 | 15 | |
12 months or more, Fair value | $ 0 | $ 22 | |
12 months or more, Gross unrealized losses | $ 0 | $ (1) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 4 | |
Fair value | $ 148 | $ 86 | |
Gross unrealized losses | $ (4) | $ (2) | [1] |
Number of securities in a continuous loss position | Securities | 33 | 19 | |
Fixed maturity securities | U.S. corporate | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 4,313 | $ 1,646 | |
Less than 12 months, Gross unrealized losses | $ (198) | $ (33) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 632 | 233 | |
12 months or more, Fair value | $ 429 | $ 1,201 | |
12 months or more, Gross unrealized losses | $ (44) | $ (43) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 69 | 174 | |
Fair value | $ 4,742 | $ 2,847 | |
Gross unrealized losses | $ (242) | $ (76) | [1] |
Number of securities in a continuous loss position | Securities | 701 | 407 | |
Fixed maturity securities | U.S. corporate | Utilities | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 329 | $ 55 | |
Less than 12 months, Gross unrealized losses | $ (17) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 51 | 10 | |
12 months or more, Fair value | $ 12 | $ 164 | |
12 months or more, Gross unrealized losses | $ (1) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 23 | |
Fair value | $ 341 | $ 219 | |
Gross unrealized losses | $ (18) | $ (5) | |
Number of securities in a continuous loss position | Securities | 57 | 33 | |
Fixed maturity securities | U.S. corporate | Energy | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 808 | $ 404 | |
Less than 12 months, Gross unrealized losses | $ (58) | $ (16) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 124 | 56 | |
12 months or more, Fair value | $ 106 | $ 96 | |
12 months or more, Gross unrealized losses | $ (13) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 15 | 15 | |
Fair value | $ 914 | $ 500 | |
Gross unrealized losses | $ (71) | $ (21) | |
Number of securities in a continuous loss position | Securities | 139 | 71 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 903 | $ 401 | |
Less than 12 months, Gross unrealized losses | $ (26) | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 125 | 57 | |
12 months or more, Fair value | $ 102 | $ 257 | |
12 months or more, Gross unrealized losses | $ (11) | $ (10) | |
12 months or more, Number of securities in a continuous loss position | Securities | 15 | 35 | |
Fair value | $ 1,005 | $ 658 | |
Gross unrealized losses | $ (37) | $ (13) | |
Number of securities in a continuous loss position | Securities | 140 | 92 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 522 | $ 165 | |
Less than 12 months, Gross unrealized losses | $ (19) | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 74 | 21 | |
12 months or more, Fair value | $ 56 | $ 182 | |
12 months or more, Gross unrealized losses | $ (4) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 11 | 32 | |
Fair value | $ 578 | $ 347 | |
Gross unrealized losses | $ (23) | $ (8) | |
Number of securities in a continuous loss position | Securities | 85 | 53 | |
Fixed maturity securities | U.S. corporate | Technology and communications | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 604 | $ 181 | |
Less than 12 months, Gross unrealized losses | $ (28) | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 89 | 27 | |
12 months or more, Fair value | $ 0 | $ 97 | |
12 months or more, Gross unrealized losses | $ 0 | $ (1) | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 15 | |
Fair value | $ 604 | $ 278 | |
Gross unrealized losses | $ (28) | $ (4) | |
Number of securities in a continuous loss position | Securities | 89 | 42 | |
Fixed maturity securities | U.S. corporate | Industrial | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 355 | $ 151 | |
Less than 12 months, Gross unrealized losses | $ (19) | $ (4) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 50 | 21 | |
12 months or more, Fair value | $ 42 | $ 80 | |
12 months or more, Gross unrealized losses | $ (9) | $ (4) | |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 11 | |
Fair value | $ 397 | $ 231 | |
Gross unrealized losses | $ (28) | $ (8) | |
Number of securities in a continuous loss position | Securities | 58 | 32 | |
Fixed maturity securities | U.S. corporate | Capital goods | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 256 | $ 85 | |
Less than 12 months, Gross unrealized losses | $ (8) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 42 | 13 | |
12 months or more, Fair value | $ 25 | $ 122 | |
12 months or more, Gross unrealized losses | $ (3) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 18 | |
Fair value | $ 281 | $ 207 | |
Gross unrealized losses | $ (11) | $ (5) | |
Number of securities in a continuous loss position | Securities | 46 | 31 | |
Fixed maturity securities | U.S. corporate | Other | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 54 | $ 20 | |
Less than 12 months, Gross unrealized losses | $ (3) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 5 | 2 | |
12 months or more, Fair value | $ 0 | $ 7 | |
12 months or more, Gross unrealized losses | $ 0 | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 1 | |
Fair value | $ 54 | $ 27 | |
Gross unrealized losses | $ (3) | $ 0 | |
Number of securities in a continuous loss position | Securities | 5 | 3 | |
Fixed maturity securities | Non-U.S. corporate | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 2,643 | $ 1,529 | |
Less than 12 months, Gross unrealized losses | $ (165) | $ (67) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 371 | 230 | |
12 months or more, Fair value | $ 376 | $ 504 | |
12 months or more, Gross unrealized losses | $ (69) | $ (28) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 56 | 67 | |
Fair value | $ 3,019 | $ 2,033 | |
Gross unrealized losses | $ (234) | $ (95) | [1] |
Number of securities in a continuous loss position | Securities | 427 | 297 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 111 | $ 80 | |
Less than 12 months, Gross unrealized losses | $ (4) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 17 | 14 | |
12 months or more, Fair value | $ 27 | $ 43 | |
12 months or more, Gross unrealized losses | $ (2) | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 5 | |
Fair value | $ 138 | $ 123 | |
Gross unrealized losses | $ (6) | $ (2) | |
Number of securities in a continuous loss position | Securities | 20 | 19 | |
Fixed maturity securities | Non-U.S. corporate | Energy | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 554 | $ 449 | |
Less than 12 months, Gross unrealized losses | $ (55) | $ (33) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 68 | 60 | |
12 months or more, Fair value | $ 104 | $ 58 | |
12 months or more, Gross unrealized losses | $ (15) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 13 | |
Fair value | $ 658 | $ 507 | |
Gross unrealized losses | $ (70) | $ (38) | |
Number of securities in a continuous loss position | Securities | 81 | 73 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 441 | $ 261 | |
Less than 12 months, Gross unrealized losses | $ (6) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 65 | 41 | |
12 months or more, Fair value | $ 30 | $ 29 | |
12 months or more, Gross unrealized losses | $ 0 | $ (1) | |
12 months or more, Number of securities in a continuous loss position | Securities | 7 | 6 | |
Fair value | $ 471 | $ 290 | |
Gross unrealized losses | $ (6) | $ (3) | |
Number of securities in a continuous loss position | Securities | 72 | 47 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 214 | $ 142 | |
Less than 12 months, Gross unrealized losses | $ (12) | $ (6) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 24 | 13 | |
12 months or more, Fair value | $ 32 | $ 83 | |
12 months or more, Gross unrealized losses | $ (3) | $ (3) | |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 9 | |
Fair value | $ 246 | $ 225 | |
Gross unrealized losses | $ (15) | $ (9) | |
Number of securities in a continuous loss position | Securities | 27 | 22 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 255 | $ 88 | |
Less than 12 months, Gross unrealized losses | $ (10) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 36 | 18 | |
12 months or more, Fair value | $ 28 | $ 81 | |
12 months or more, Gross unrealized losses | $ (12) | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 8 | |
Fair value | $ 283 | $ 169 | |
Gross unrealized losses | $ (22) | $ (4) | |
Number of securities in a continuous loss position | Securities | 42 | 26 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 442 | $ 218 | |
Less than 12 months, Gross unrealized losses | $ (42) | $ (9) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 62 | 31 | |
12 months or more, Fair value | $ 104 | $ 116 | |
12 months or more, Gross unrealized losses | $ (25) | $ (9) | |
12 months or more, Number of securities in a continuous loss position | Securities | 15 | 15 | |
Fair value | $ 546 | $ 334 | |
Gross unrealized losses | $ (67) | $ (18) | |
Number of securities in a continuous loss position | Securities | 77 | 46 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 137 | $ 68 | |
Less than 12 months, Gross unrealized losses | $ (10) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 25 | 10 | |
12 months or more, Fair value | $ 7 | $ 38 | |
12 months or more, Gross unrealized losses | $ (5) | $ (3) | |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 4 | |
Fair value | $ 144 | $ 106 | |
Gross unrealized losses | $ (15) | $ (5) | |
Number of securities in a continuous loss position | Securities | 28 | 14 | |
Fixed maturity securities | Non-U.S. corporate | Other | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 214 | $ 179 | |
Less than 12 months, Gross unrealized losses | $ (17) | $ (13) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 38 | 33 | |
12 months or more, Fair value | $ 44 | $ 42 | |
12 months or more, Gross unrealized losses | $ (7) | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 6 | |
Fair value | $ 258 | $ 221 | |
Gross unrealized losses | $ (24) | $ (15) | |
Number of securities in a continuous loss position | Securities | 44 | 39 | |
Fixed maturity securities | Residential mortgage-backed | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 396 | $ 180 | |
Less than 12 months, Gross unrealized losses | $ (5) | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 37 | 24 | |
12 months or more, Fair value | $ 109 | $ 249 | |
12 months or more, Gross unrealized losses | $ (5) | $ (17) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 38 | 87 | |
Fair value | $ 505 | $ 429 | |
Gross unrealized losses | $ (10) | $ (18) | [1] |
Number of securities in a continuous loss position | Securities | 75 | 111 | |
Fixed maturity securities | Commercial mortgage-backed | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 320 | $ 163 | |
Less than 12 months, Gross unrealized losses | $ (6) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 54 | 21 | |
12 months or more, Fair value | $ 50 | $ 362 | |
12 months or more, Gross unrealized losses | $ (1) | $ (9) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 14 | 49 | |
Fair value | $ 370 | $ 525 | |
Gross unrealized losses | $ (7) | $ (9) | [1] |
Number of securities in a continuous loss position | Securities | 68 | 70 | |
Fixed maturity securities | Other asset-backed | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 870 | $ 1,551 | |
Less than 12 months, Gross unrealized losses | $ (5) | $ (12) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 165 | 215 | |
12 months or more, Fair value | $ 330 | $ 487 | |
12 months or more, Gross unrealized losses | $ (35) | $ (42) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 55 | 55 | |
Fair value | $ 1,200 | $ 2,038 | |
Gross unrealized losses | $ (40) | $ (54) | [1] |
Number of securities in a continuous loss position | Securities | 220 | 270 | |
Fixed maturity securities | Below investment grade | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 59 | ||
12 months or more, Gross unrealized losses | $ (35) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 13 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 6.00% | ||
Fixed maturity securities | Below investment grade | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 5 | ||
12 months or more, Gross unrealized losses | $ (7) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 2 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 19 | ||
12 months or more, Gross unrealized losses | $ (7) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 4 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Energy | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 4 | ||
12 months or more, Gross unrealized losses | $ (1) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Energy | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Finance and insurance | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 7 | ||
12 months or more, Gross unrealized losses | $ (3) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Finance and insurance | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Consumer-non-cyclical | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 4 | ||
12 months or more, Gross unrealized losses | $ (1) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Consumer-non-cyclical | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Industrial | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 4 | ||
12 months or more, Gross unrealized losses | $ (2) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | U.S. corporate | Industrial | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 32 | ||
12 months or more, Gross unrealized losses | $ (22) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 8 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 4.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 5 | ||
12 months or more, Gross unrealized losses | $ (7) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 2 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Energy | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 4 | ||
12 months or more, Gross unrealized losses | $ (1) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Energy | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 1 | ||
12 months or more, Gross unrealized losses | $ (2) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Technology and communications | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 7 | ||
12 months or more, Gross unrealized losses | $ (7) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 2 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Technology and communications | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 4 | ||
12 months or more, Gross unrealized losses | $ (5) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Industrial | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 14 | ||
12 months or more, Gross unrealized losses | $ (11) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 3 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 2.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Industrial | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Capital goods | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 3 | ||
12 months or more, Gross unrealized losses | $ (2) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Capital goods | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Other | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 4 | ||
12 months or more, Gross unrealized losses | $ (1) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Other | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | Less Than 20 Percent Below Cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 70.00% | ||
Fixed maturity securities | Investment grade | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 147 | ||
12 months or more, Gross unrealized losses | $ (51) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 14 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 9.00% | ||
Fixed maturity securities | Investment grade | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | State and Political Subdivisions | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 9 | ||
12 months or more, Gross unrealized losses | $ (4) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Investment grade | State and Political Subdivisions | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | U.S. corporate | Industrial | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 18 | ||
12 months or more, Gross unrealized losses | $ (5) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 2 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Investment grade | U.S. corporate | Industrial | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 53 | ||
12 months or more, Gross unrealized losses | $ (17) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 7 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 3.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Utilities | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 4 | ||
12 months or more, Gross unrealized losses | $ (1) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Utilities | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Energy | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 22 | ||
12 months or more, Gross unrealized losses | $ (6) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 2 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Energy | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Industrial | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 24 | ||
12 months or more, Gross unrealized losses | $ (7) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 3 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Industrial | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Capital goods | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 3 | ||
12 months or more, Gross unrealized losses | $ (3) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Fixed maturity securities | Investment grade | Non-U.S. corporate | Capital goods | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Equity Securities | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 182 | $ 30 | |
Less than 12 months, Gross unrealized losses | $ (32) | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 65 | 46 | |
12 months or more, Fair value | $ 0 | $ 48 | |
12 months or more, Gross unrealized losses | $ 0 | $ (4) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 6 | |
Fair value | $ 182 | $ 78 | |
Gross unrealized losses | $ (32) | $ (7) | [1] |
Number of securities in a continuous loss position | Securities | 65 | 52 | |
Equity Securities | Less Than 20 Percent Below Cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 106 | $ 26 | |
Less than 12 months, Gross unrealized losses | $ (9) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 41 | 40 | |
12 months or more, Fair value | $ 0 | $ 48 | |
12 months or more, Gross unrealized losses | $ 0 | $ (4) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 6 | |
Fair value | $ 106 | $ 74 | |
Gross unrealized losses | $ (9) | $ (6) | [1] |
Number of securities in a continuous loss position | Securities | 41 | 46 | |
Equity Securities | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 76 | $ 4 | |
Less than 12 months, Gross unrealized losses | $ (23) | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 24 | 6 | |
12 months or more, Fair value | $ 0 | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | $ 0 | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 0 | |
Fair value | $ 76 | $ 4 | |
Gross unrealized losses | $ (23) | $ (1) | [1] |
Number of securities in a continuous loss position | Securities | 24 | 6 | |
Structured Securities | Below investment grade | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 8 | ||
12 months or more, Gross unrealized losses | $ (6) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Structured Securities | Below investment grade | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Structured Securities | Below investment grade | Other asset-backed | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 8 | ||
12 months or more, Gross unrealized losses | $ (6) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 1 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | ||
Structured Securities | Below investment grade | Other asset-backed | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Structured Securities | Investment grade | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 67 | ||
12 months or more, Gross unrealized losses | $ (25) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 4 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 4.00% | ||
Structured Securities | Investment grade | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
Structured Securities | Investment grade | Other asset-backed | 20 To 50 percent below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 67 | ||
12 months or more, Gross unrealized losses | $ (25) | ||
12 months or more, Number of securities in a continuous loss position | Securities | 4 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 4.00% | ||
Structured Securities | Investment grade | Other asset-backed | Greater than 50% below cost | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Fair value | $ 0 | ||
12 months or more, Gross unrealized losses | $ 0 | ||
12 months or more, Number of securities in a continuous loss position | Securities | 0 | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | ||
[1] | Amounts included $1 million of unrealized losses on other-than-temporarily impaired securities. | ||
[2] | Amounts that have been in a continuous unrealized loss position for 12 months or more included $1 million of unrealized losses on other-than-temporarily impaired securities. |
Gross Unrealized Losses and F52
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Sep. 30, 2015USD ($)Securities | Dec. 31, 2014USD ($)Securities | |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 9,612 | $ 5,172 | |
Less than 12 months, Gross unrealized losses | $ (432) | $ (117) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,421 | 791 | |
12 months or more, Fair value | $ 1,449 | $ 3,215 | |
12 months or more, Gross unrealized losses | $ (171) | $ (172) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 248 | 497 | |
Fair value | $ 11,061 | $ 8,387 | |
Gross unrealized losses | $ (603) | $ (289) | [1] |
Number of securities in a continuous loss position | Securities | 1,669 | 1,288 | |
Fixed maturity securities | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 9,430 | $ 5,142 | |
Less than 12 months, Gross unrealized losses | $ (400) | $ (114) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,356 | 745 | |
12 months or more, Fair value | $ 1,449 | $ 3,167 | |
12 months or more, Gross unrealized losses | $ (171) | $ (168) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 248 | 491 | |
Fair value | $ 10,879 | $ 8,309 | |
Gross unrealized losses | $ (571) | $ (282) | [1] |
Number of securities in a continuous loss position | Securities | 1,604 | 1,236 | |
Fixed maturity securities | U.S. corporate | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 4,313 | $ 1,646 | |
Less than 12 months, Gross unrealized losses | $ (198) | $ (33) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 632 | 233 | |
12 months or more, Fair value | $ 429 | $ 1,201 | |
12 months or more, Gross unrealized losses | $ (44) | $ (43) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 69 | 174 | |
Fair value | $ 4,742 | $ 2,847 | |
Gross unrealized losses | $ (242) | $ (76) | [1] |
Number of securities in a continuous loss position | Securities | 701 | 407 | |
Fixed maturity securities | U.S. corporate | Utilities | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 329 | $ 55 | |
Less than 12 months, Gross unrealized losses | $ (17) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 51 | 10 | |
12 months or more, Fair value | $ 12 | $ 164 | |
12 months or more, Gross unrealized losses | $ (1) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 23 | |
Fair value | $ 341 | $ 219 | |
Gross unrealized losses | $ (18) | $ (5) | |
Number of securities in a continuous loss position | Securities | 57 | 33 | |
Fixed maturity securities | U.S. corporate | Energy | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 808 | $ 404 | |
Less than 12 months, Gross unrealized losses | $ (58) | $ (16) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 124 | 56 | |
12 months or more, Fair value | $ 106 | $ 96 | |
12 months or more, Gross unrealized losses | $ (13) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 15 | 15 | |
Fair value | $ 914 | $ 500 | |
Gross unrealized losses | $ (71) | $ (21) | |
Number of securities in a continuous loss position | Securities | 139 | 71 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 903 | $ 401 | |
Less than 12 months, Gross unrealized losses | $ (26) | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 125 | 57 | |
12 months or more, Fair value | $ 102 | $ 257 | |
12 months or more, Gross unrealized losses | $ (11) | $ (10) | |
12 months or more, Number of securities in a continuous loss position | Securities | 15 | 35 | |
Fair value | $ 1,005 | $ 658 | |
Gross unrealized losses | $ (37) | $ (13) | |
Number of securities in a continuous loss position | Securities | 140 | 92 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 522 | $ 165 | |
Less than 12 months, Gross unrealized losses | $ (19) | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 74 | 21 | |
12 months or more, Fair value | $ 56 | $ 182 | |
12 months or more, Gross unrealized losses | $ (4) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 11 | 32 | |
Fair value | $ 578 | $ 347 | |
Gross unrealized losses | $ (23) | $ (8) | |
Number of securities in a continuous loss position | Securities | 85 | 53 | |
Fixed maturity securities | U.S. corporate | Technology and communications | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 604 | $ 181 | |
Less than 12 months, Gross unrealized losses | $ (28) | $ (3) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 89 | 27 | |
12 months or more, Fair value | $ 0 | $ 97 | |
12 months or more, Gross unrealized losses | $ 0 | $ (1) | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 15 | |
Fair value | $ 604 | $ 278 | |
Gross unrealized losses | $ (28) | $ (4) | |
Number of securities in a continuous loss position | Securities | 89 | 42 | |
Fixed maturity securities | U.S. corporate | Industrial | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 355 | $ 151 | |
Less than 12 months, Gross unrealized losses | $ (19) | $ (4) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 50 | 21 | |
12 months or more, Fair value | $ 42 | $ 80 | |
12 months or more, Gross unrealized losses | $ (9) | $ (4) | |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 11 | |
Fair value | $ 397 | $ 231 | |
Gross unrealized losses | $ (28) | $ (8) | |
Number of securities in a continuous loss position | Securities | 58 | 32 | |
Fixed maturity securities | U.S. corporate | Capital goods | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 256 | $ 85 | |
Less than 12 months, Gross unrealized losses | $ (8) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 42 | 13 | |
12 months or more, Fair value | $ 25 | $ 122 | |
12 months or more, Gross unrealized losses | $ (3) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 18 | |
Fair value | $ 281 | $ 207 | |
Gross unrealized losses | $ (11) | $ (5) | |
Number of securities in a continuous loss position | Securities | 46 | 31 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 316 | $ 132 | |
Less than 12 months, Gross unrealized losses | $ (11) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 48 | 17 | |
12 months or more, Fair value | $ 64 | $ 139 | |
12 months or more, Gross unrealized losses | $ (2) | $ (6) | |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 18 | |
Fair value | $ 380 | $ 271 | |
Gross unrealized losses | $ (13) | $ (8) | |
Number of securities in a continuous loss position | Securities | 56 | 35 | |
Fixed maturity securities | U.S. corporate | Transportation | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 166 | $ 52 | |
Less than 12 months, Gross unrealized losses | $ (9) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 24 | 9 | |
12 months or more, Fair value | $ 22 | $ 57 | |
12 months or more, Gross unrealized losses | $ (1) | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 6 | |
Fair value | $ 188 | $ 109 | |
Gross unrealized losses | $ (10) | $ (4) | |
Number of securities in a continuous loss position | Securities | 26 | 15 | |
Fixed maturity securities | U.S. corporate | Other | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 54 | $ 20 | |
Less than 12 months, Gross unrealized losses | $ (3) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 5 | 2 | |
12 months or more, Fair value | $ 0 | $ 7 | |
12 months or more, Gross unrealized losses | $ 0 | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 1 | |
Fair value | $ 54 | $ 27 | |
Gross unrealized losses | $ (3) | $ 0 | |
Number of securities in a continuous loss position | Securities | 5 | 3 | |
Fixed maturity securities | Non-U.S. corporate | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 2,643 | $ 1,529 | |
Less than 12 months, Gross unrealized losses | $ (165) | $ (67) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 371 | 230 | |
12 months or more, Fair value | $ 376 | $ 504 | |
12 months or more, Gross unrealized losses | $ (69) | $ (28) | [1] |
12 months or more, Number of securities in a continuous loss position | Securities | 56 | 67 | |
Fair value | $ 3,019 | $ 2,033 | |
Gross unrealized losses | $ (234) | $ (95) | [1] |
Number of securities in a continuous loss position | Securities | 427 | 297 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 111 | $ 80 | |
Less than 12 months, Gross unrealized losses | $ (4) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 17 | 14 | |
12 months or more, Fair value | $ 27 | $ 43 | |
12 months or more, Gross unrealized losses | $ (2) | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 5 | |
Fair value | $ 138 | $ 123 | |
Gross unrealized losses | $ (6) | $ (2) | |
Number of securities in a continuous loss position | Securities | 20 | 19 | |
Fixed maturity securities | Non-U.S. corporate | Energy | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 554 | $ 449 | |
Less than 12 months, Gross unrealized losses | $ (55) | $ (33) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 68 | 60 | |
12 months or more, Fair value | $ 104 | $ 58 | |
12 months or more, Gross unrealized losses | $ (15) | $ (5) | |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 13 | |
Fair value | $ 658 | $ 507 | |
Gross unrealized losses | $ (70) | $ (38) | |
Number of securities in a continuous loss position | Securities | 81 | 73 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 441 | $ 261 | |
Less than 12 months, Gross unrealized losses | $ (6) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 65 | 41 | |
12 months or more, Fair value | $ 30 | $ 29 | |
12 months or more, Gross unrealized losses | $ 0 | $ (1) | |
12 months or more, Number of securities in a continuous loss position | Securities | 7 | 6 | |
Fair value | $ 471 | $ 290 | |
Gross unrealized losses | $ (6) | $ (3) | |
Number of securities in a continuous loss position | Securities | 72 | 47 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 214 | $ 142 | |
Less than 12 months, Gross unrealized losses | $ (12) | $ (6) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 24 | 13 | |
12 months or more, Fair value | $ 32 | $ 83 | |
12 months or more, Gross unrealized losses | $ (3) | $ (3) | |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 9 | |
Fair value | $ 246 | $ 225 | |
Gross unrealized losses | $ (15) | $ (9) | |
Number of securities in a continuous loss position | Securities | 27 | 22 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 255 | $ 88 | |
Less than 12 months, Gross unrealized losses | $ (10) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 36 | 18 | |
12 months or more, Fair value | $ 28 | $ 81 | |
12 months or more, Gross unrealized losses | $ (12) | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 8 | |
Fair value | $ 283 | $ 169 | |
Gross unrealized losses | $ (22) | $ (4) | |
Number of securities in a continuous loss position | Securities | 42 | 26 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 442 | $ 218 | |
Less than 12 months, Gross unrealized losses | $ (42) | $ (9) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 62 | 31 | |
12 months or more, Fair value | $ 104 | $ 116 | |
12 months or more, Gross unrealized losses | $ (25) | $ (9) | |
12 months or more, Number of securities in a continuous loss position | Securities | 15 | 15 | |
Fair value | $ 546 | $ 334 | |
Gross unrealized losses | $ (67) | $ (18) | |
Number of securities in a continuous loss position | Securities | 77 | 46 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 137 | $ 68 | |
Less than 12 months, Gross unrealized losses | $ (10) | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 25 | 10 | |
12 months or more, Fair value | $ 7 | $ 38 | |
12 months or more, Gross unrealized losses | $ (5) | $ (3) | |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 4 | |
Fair value | $ 144 | $ 106 | |
Gross unrealized losses | $ (15) | $ (5) | |
Number of securities in a continuous loss position | Securities | 28 | 14 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 170 | $ 10 | |
Less than 12 months, Gross unrealized losses | $ (5) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 21 | 3 | |
12 months or more, Fair value | $ 0 | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 0 | |
Fair value | $ 170 | $ 10 | |
Gross unrealized losses | $ (5) | $ 0 | |
Number of securities in a continuous loss position | Securities | 21 | 3 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 105 | $ 34 | |
Less than 12 months, Gross unrealized losses | $ (4) | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 15 | 7 | |
12 months or more, Fair value | $ 0 | $ 14 | |
12 months or more, Gross unrealized losses | $ 0 | $ (1) | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 1 | |
Fair value | $ 105 | $ 48 | |
Gross unrealized losses | $ (4) | $ (1) | |
Number of securities in a continuous loss position | Securities | 15 | 8 | |
Fixed maturity securities | Non-U.S. corporate | Other | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 214 | $ 179 | |
Less than 12 months, Gross unrealized losses | $ (17) | $ (13) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 38 | 33 | |
12 months or more, Fair value | $ 44 | $ 42 | |
12 months or more, Gross unrealized losses | $ (7) | $ (2) | |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 6 | |
Fair value | $ 258 | $ 221 | |
Gross unrealized losses | $ (24) | $ (15) | |
Number of securities in a continuous loss position | Securities | 44 | 39 | |
Fixed maturity securities | Corporate Debt Securities | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
Less than 12 months, Fair value | $ 6,956 | $ 3,175 | |
Less than 12 months, Gross unrealized losses | $ (363) | $ (100) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,003 | 463 | |
12 months or more, Fair value | $ 805 | $ 1,705 | |
12 months or more, Gross unrealized losses | $ (113) | $ (71) | |
12 months or more, Number of securities in a continuous loss position | Securities | 125 | 241 | |
Fair value | $ 7,761 | $ 4,880 | |
Gross unrealized losses | $ (476) | $ (171) | |
Number of securities in a continuous loss position | Securities | 1,128 | 704 | |
[1] | Amounts included $1 million of unrealized losses on other-than-temporarily impaired securities. |
Gross Unrealized Losses and F53
Gross Unrealized Losses and Fair Value of Investment Securities (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Gross unrealized losses | $ 171 | $ 172 | [1] |
Gross unrealized losses | 603 | 289 | [1] |
Other-than-temporary impairments | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Gross unrealized losses | 1 | ||
Gross unrealized losses | 1 | ||
Below investment grade | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Gross unrealized losses | 66 | 27 | [1],[2] |
Gross unrealized losses | $ 166 | 69 | [1],[2] |
Below investment grade | Other-than-temporary impairments | |||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | |||
12 months or more, Gross unrealized losses | $ 1 | ||
[1] | Amounts included $1 million of unrealized losses on other-than-temporarily impaired securities. | ||
[2] | Amounts that have been in a continuous unrealized loss position for 12 months or more included $1 million of unrealized losses on other-than-temporarily impaired securities. |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized cost or cost | ||
Due one year or less | $ 2,135 | |
Due after one year through five years | 10,474 | |
Due after five years through ten years | 11,824 | |
Due after ten years | 21,229 | |
Subtotal | 45,662 | |
Amortized cost or cost, fixed maturity securities | 56,807 | $ 55,854 |
Fair value | ||
Due one year or less | 2,147 | |
Due after one year through five years | 10,950 | |
Due after five years through ten years | 12,155 | |
Due after ten years | 23,955 | |
Subtotal | 49,207 | |
Fair value, fixed maturity securities | 60,851 | $ 61,276 |
Residential mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 4,728 | |
Fair value | ||
Fixed maturity securities | 5,118 | |
Commercial mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 2,464 | |
Fair value | ||
Fixed maturity securities | 2,587 | |
Other asset-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,953 | |
Fair value | ||
Fixed maturity securities | $ 3,939 |
Distribution Across Property Ty
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,151 | $ 6,123 |
Unamortized balance of loan origination fees and costs | $ (1) | $ (1) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (17) | $ (22) |
Total | 6,133 | 6,100 |
Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 6,151 | 6,123 |
Unamortized balance of loan origination fees and costs | $ (1) | $ (1) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (17) | $ (22) |
Total | 6,133 | 6,100 |
South Atlantic | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,582 | $ 1,673 |
% of total | 26.00% | 27.00% |
Pacific | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,594 | $ 1,636 |
% of total | 26.00% | 27.00% |
Middle Atlantic | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 860 | $ 826 |
% of total | 14.00% | 14.00% |
Mountain | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 588 | $ 536 |
% of total | 10.00% | 9.00% |
West North Central | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 396 | $ 382 |
% of total | 6.00% | 6.00% |
East North Central | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 383 | $ 397 |
% of total | 6.00% | 7.00% |
West South Central | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 295 | $ 268 |
% of total | 5.00% | 4.00% |
New England | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 279 | $ 264 |
% of total | 4.00% | 4.00% |
East South Central | Commercial Mortgage Loan | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 174 | $ 141 |
% of total | 3.00% | 2.00% |
Retail | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,259 | $ 2,150 |
% of total | 37.00% | 35.00% |
Office | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,594 | $ 1,643 |
% of total | 26.00% | 27.00% |
Industrial | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,580 | $ 1,597 |
% of total | 26.00% | 26.00% |
Apartments | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 458 | $ 494 |
% of total | 7.00% | 8.00% |
Mixed use/other | ||
Distribution of Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 260 | $ 239 |
% of total | 4.00% | 4.00% |
Aging of Past Due Commercial Mo
Aging of Past Due Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,151 | $ 6,123 |
% of total | 100.00% | 100.00% |
Retail | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,259 | $ 2,150 |
% of total | 37.00% | 35.00% |
Office | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,594 | $ 1,643 |
% of total | 26.00% | 27.00% |
Industrial | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,580 | $ 1,597 |
% of total | 26.00% | 26.00% |
Apartments | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 458 | $ 494 |
% of total | 7.00% | 8.00% |
Mixed use/other | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 260 | $ 239 |
% of total | 4.00% | 4.00% |
31-60 days past due | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
% of total | 0.00% | 0.00% |
31-60 days past due | Retail | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
31-60 days past due | Office | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Industrial | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Apartments | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Mixed use/other | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
% of total | 0.00% | 0.00% |
61-90 days past due | Retail | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
61-90 days past due | Office | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Industrial | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Apartments | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Mixed use/other | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 5 | $ 8 |
% of total | 0.00% | 0.00% |
Greater than 90 days past due | Retail | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
Greater than 90 days past due | Office | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 5 | 6 |
Greater than 90 days past due | Industrial | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 2 |
Greater than 90 days past due | Apartments | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | Mixed use/other | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 5 | $ 8 |
% of total | 0.00% | 0.00% |
Total past due | Retail | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
Total past due | Office | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 5 | 6 |
Total past due | Industrial | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 2 |
Total past due | Apartments | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | Mixed use/other | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Current | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,146 | $ 6,115 |
% of total | 100.00% | 100.00% |
Current | Retail | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,259 | $ 2,150 |
Current | Office | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,589 | 1,637 |
Current | Industrial | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,580 | 1,595 |
Current | Apartments | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | 458 | 494 |
Current | Mixed use/other | ||
Aging of Past Due Commercial Mortgage Loans [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 260 | $ 239 |
Allowance for Credit Losses and
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | $ 22 | ||||
Ending balance | $ 17 | 17 | |||
Ending balance | 6,151 | 6,151 | $ 6,123 | ||
Allowance for Credit Losses | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 18 | $ 27 | 22 | $ 33 | |
Charge-offs | (1) | 0 | (4) | (1) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 0 | (3) | (1) | (8) | |
Ending balance | 17 | 24 | 17 | 24 | |
Ending allowance for individually impaired loans | 0 | 0 | 0 | 0 | |
Ending allowance for loans not individually impaired that were evaluated collectively for impairment | 17 | 24 | 17 | 24 | |
Commercial Mortgage Loans Recorded Investment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending balance | 6,151 | 6,101 | 6,151 | 6,101 | |
Ending balance of individually impaired loans | 19 | 17 | 19 | 17 | |
Ending balance of loans not individually impaired that were evaluated collectively for impairment | $ 6,132 | $ 6,084 | $ 6,132 | $ 6,084 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,151 | $ 6,123 | ||
% of total | 100.00% | 100.00% | ||
Weighted-average debt service coverage ratio | 1.77 | 1.78 | ||
Retail | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,259 | $ 2,150 | ||
% of total | 37.00% | 35.00% | ||
Office | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,594 | $ 1,643 | ||
% of total | 26.00% | 27.00% | ||
Industrial | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,580 | $ 1,597 | ||
% of total | 26.00% | 26.00% | ||
Apartments | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 458 | $ 494 | ||
% of total | 7.00% | 8.00% | ||
Mixed use/other | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 260 | $ 239 | ||
% of total | 4.00% | 4.00% | ||
Greater than 100% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 40 | [1] | $ 77 | [2] |
% of total | 1.00% | [1] | 1.00% | [2] |
Weighted-average debt service coverage ratio | 0.76 | [1] | 0.72 | [2] |
Greater than 100% | Retail | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 18 | [1] | $ 18 | [2] |
Greater than 100% | Office | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 20 | [1] | 36 | [2] |
Greater than 100% | Industrial | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 2 | [1] | 23 | [2] |
Greater than 100% | Apartments | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1] | 0 | [2] |
Greater than 100% | Mixed use/other | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1] | 0 | [2] |
0% - 50% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,808 | $ 1,761 | ||
% of total | 29.00% | 29.00% | ||
Weighted-average debt service coverage ratio | 2.12 | 2.27 | ||
0% - 50% | Retail | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 702 | $ 671 | ||
0% - 50% | Office | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 437 | 383 | ||
0% - 50% | Industrial | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 436 | 451 | ||
0% - 50% | Apartments | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 180 | 211 | ||
0% - 50% | Mixed use/other | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 53 | 45 | ||
51% - 60% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,083 | $ 1,101 | ||
% of total | 18.00% | 18.00% | ||
Weighted-average debt service coverage ratio | 1.78 | 1.75 | ||
51% - 60% | Retail | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 408 | $ 419 | ||
51% - 60% | Office | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 291 | 278 | ||
51% - 60% | Industrial | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 278 | 285 | ||
51% - 60% | Apartments | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 75 | 76 | ||
51% - 60% | Mixed use/other | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 31 | 43 | ||
61% - 75% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 3,009 | $ 2,871 | ||
% of total | 49.00% | 47.00% | ||
Weighted-average debt service coverage ratio | 1.63 | 1.61 | ||
61% - 75% | Retail | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,069 | $ 967 | ||
61% - 75% | Office | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 773 | 782 | ||
61% - 75% | Industrial | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 802 | 778 | ||
61% - 75% | Apartments | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 195 | 199 | ||
61% - 75% | Mixed use/other | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 170 | 145 | ||
76% - 100% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 211 | $ 313 | ||
% of total | 3.00% | 5.00% | ||
Weighted-average debt service coverage ratio | 0.93 | 1.02 | ||
76% - 100% | Retail | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 62 | $ 75 | ||
76% - 100% | Office | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 73 | 164 | ||
76% - 100% | Industrial | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 62 | 60 | ||
76% - 100% | Apartments | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 8 | 8 | ||
76% - 100% | Mixed use/other | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6 | $ 6 | ||
[1] | Included $5 million of impaired loans and $35 million of loans in good standing, where borrowers continued to make timely payments, with a total weighted-average loan-to-value of 120% | |||
[2] | Included $15 million of impaired loans, $6 million of loans past due and not individually impaired and $56 million of loans in good standing, where borrowers continued to make timely payments, with a total weighted-average loan-to-value of 120%. |
Loan-to-Value of Commercial M59
Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | |||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,151 | $ 6,123 | ||
Greater than 100% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 40 | [1] | $ 77 | [2] |
Greater than 100% | Weighted Average Loan-To-Value | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Weighted-average loan-to-value | 120.00% | 120.00% | ||
Impaired Loans | Greater than 100% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 5 | $ 15 | ||
Loans Past Due and Not Individually Impaired | Greater than 100% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | 6 | |||
Loans in Good Standing | Greater than 100% | ||||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 35 | $ 56 | ||
[1] | Included $5 million of impaired loans and $35 million of loans in good standing, where borrowers continued to make timely payments, with a total weighted-average loan-to-value of 120% | |||
[2] | Included $15 million of impaired loans, $6 million of loans past due and not individually impaired and $56 million of loans in good standing, where borrowers continued to make timely payments, with a total weighted-average loan-to-value of 120%. |
Debt Service Coverage Ratio for
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,151 | $ 6,123 |
% of total | 100.00% | 100.00% |
Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,144 | $ 6,114 |
% of total | 100.00% | 100.00% |
Weighted-average loan-to-value | 58.00% | 59.00% |
Retail | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,259 | $ 2,150 |
% of total | 37.00% | 35.00% |
Retail | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,259 | $ 2,150 |
Office | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,594 | $ 1,643 |
% of total | 26.00% | 27.00% |
Office | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,587 | $ 1,636 |
Industrial | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,580 | $ 1,597 |
% of total | 26.00% | 26.00% |
Industrial | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,580 | $ 1,595 |
Apartments | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 458 | $ 494 |
% of total | 7.00% | 8.00% |
Apartments | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 458 | $ 494 |
Mixed use/other | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 260 | $ 239 |
% of total | 4.00% | 4.00% |
Mixed use/other | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 260 | $ 239 |
Less than 1.00 | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 318 | $ 364 |
% of total | 5.00% | 6.00% |
Weighted-average loan-to-value | 72.00% | 77.00% |
Less than 1.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 66 | $ 80 |
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 96 | 119 |
Less than 1.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 149 | 158 |
Less than 1.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 1 | 1 |
Less than 1.00 | Mixed use/other | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 6 | 6 |
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 483 | $ 545 |
% of total | 8.00% | 9.00% |
Weighted-average loan-to-value | 62.00% | 64.00% |
1.00 - 1.25 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 236 | $ 253 |
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 75 | 101 |
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 130 | 142 |
1.00 - 1.25 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 41 | 48 |
1.00 - 1.25 | Mixed use/other | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 1 | 1 |
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,219 | $ 1,166 |
% of total | 20.00% | 19.00% |
Weighted-average loan-to-value | 59.00% | 64.00% |
1.26 - 1.50 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 560 | $ 524 |
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 279 | 247 |
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 221 | 246 |
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 80 | 88 |
1.26 - 1.50 | Mixed use/other | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 79 | 61 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,812 | $ 2,677 |
% of total | 46.00% | 44.00% |
Weighted-average loan-to-value | 60.00% | 59.00% |
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 960 | $ 870 |
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 790 | 780 |
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 723 | 706 |
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 203 | 186 |
1.51 - 2.00 | Mixed use/other | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 136 | 135 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,312 | $ 1,362 |
% of total | 21.00% | 22.00% |
Weighted-average loan-to-value | 46.00% | 45.00% |
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 437 | $ 423 |
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 347 | 389 |
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 357 | 343 |
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | 133 | 171 |
Greater than 2.00 | Mixed use/other | Fixed Rate Commercial Mortgage Loans | ||
Commercial Mortgage Loans by Credit Quality Indicator [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 38 | $ 36 |
Schedule of Positions in Deriva
Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Derivative assets, fair value | $ 1,344 | $ 1,145 | |
Derivative liabilities, fair value | 1,104 | 884 | |
Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 400 | 310 | |
Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 1,325 | 1,132 | |
GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [1] | 19 | 13 |
Designated As Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 776 | 645 | |
Derivative liabilities, fair value | 55 | 69 | |
Designated As Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 776 | 645 | |
Derivative liabilities, fair value | 55 | 69 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 41 | 27 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 766 | 639 | |
Designated As Hedging Instrument | Cash Flow Hedges | Inflation indexed swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 14 | 42 | |
Designated As Hedging Instrument | Cash Flow Hedges | Inflation indexed swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 2 | 0 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 8 | 6 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 568 | 500 | |
Derivative liabilities, fair value | 1,049 | 815 | |
Derivatives not designated as hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 249 | 177 | |
Derivatives not designated as hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 480 | 452 | |
Derivatives not designated as hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 22 | 7 | |
Derivatives not designated as hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Forward bond purchase commitments | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Forward bond purchase commitments | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 13 | 0 | |
Derivatives not designated as hedges | Interest rate swaps related to securitization entities | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 30 | 26 | |
Derivatives not designated as hedges | Interest rate swaps related to securitization entities | Restricted other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Credit default swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Credit default swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 1 | 4 | |
Derivatives not designated as hedges | Credit default swaps related to securitization entities | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 10 | 17 | |
Derivatives not designated as hedges | Credit default swaps related to securitization entities | Restricted other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Equity index options | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 15 | 17 | |
Derivatives not designated as hedges | Financial futures | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Derivatives not designated as hedges | Financial futures | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Equity return swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 1 | |
Derivatives not designated as hedges | Equity return swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 15 | 0 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 34 | 13 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 25 | 14 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [2] | 390 | 291 |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [3] | 19 | 13 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [4] | 304 | 276 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Other assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [5] | 10 | 7 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | $ 0 | $ 0 | |
[1] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. | ||
[2] | Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | ||
[3] | Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits ("GMWB") liabilities. | ||
[4] | Represents the embedded derivatives associated with our fixed index annuity liabilities. | ||
[5] | Represents the embedded derivatives associated with our indexed universal life liabilities. |
Activity Associated with Deriva
Activity Associated with Derivative Instruments (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($)Policies | |
Derivative [Line Items] | |
Notional amount, beginning balance | $ 21,386 |
Additions | 9,196 |
Maturities/ terminations | (7,075) |
Notional amount, ending balance | 23,507 |
Derivatives Designated As Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 12,567 |
Additions | 13 |
Maturities/ terminations | (54) |
Notional amount, ending balance | 12,526 |
Derivatives Designated As Hedges | Cash Flow Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 12,567 |
Additions | 13 |
Maturities/ terminations | (54) |
Notional amount, ending balance | 12,526 |
Derivatives Designated As Hedges | Cash Flow Hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,961 |
Additions | 0 |
Maturities/ terminations | (43) |
Notional amount, ending balance | 11,918 |
Derivatives Designated As Hedges | Cash Flow Hedges | Inflation indexed swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 571 |
Additions | 13 |
Maturities/ terminations | (11) |
Notional amount, ending balance | 573 |
Derivatives Designated As Hedges | Cash Flow Hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 35 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 35 |
Derivatives not designated as hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 8,819 |
Additions | 9,183 |
Maturities/ terminations | (7,021) |
Notional amount, ending balance | 10,981 |
Derivatives not designated as hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 5,074 |
Additions | 1,850 |
Maturities/ terminations | (893) |
Notional amount, ending balance | 6,031 |
Derivatives not designated as hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 104 |
Additions | 37 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 141 |
Derivatives not designated as hedges | Interest rate swaps related to securitization entities | |
Derivative [Line Items] | |
Notional amount, beginning balance | 77 |
Additions | 0 |
Maturities/ terminations | (8) |
Notional amount, ending balance | 69 |
Derivatives not designated as hedges | Credit default swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 394 |
Additions | 0 |
Maturities/ terminations | (250) |
Notional amount, ending balance | 144 |
Derivatives not designated as hedges | Credit default swaps related to securitization entities | |
Derivative [Line Items] | |
Notional amount, beginning balance | 312 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 312 |
Derivatives not designated as hedges | Equity index options | |
Derivative [Line Items] | |
Notional amount, beginning balance | 994 |
Additions | 483 |
Maturities/ terminations | (517) |
Notional amount, ending balance | 960 |
Derivatives not designated as hedges | Financial futures | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,331 |
Additions | 4,251 |
Maturities/ terminations | (4,280) |
Notional amount, ending balance | 1,302 |
Derivatives not designated as hedges | Equity return swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 108 |
Additions | 286 |
Maturities/ terminations | (263) |
Notional amount, ending balance | 131 |
Derivatives not designated as hedges | Other foreign currency contracts | |
Derivative [Line Items] | |
Notional amount, beginning balance | 425 |
Additions | 1,136 |
Maturities/ terminations | (810) |
Notional amount, ending balance | 751 |
Derivatives not designated as hedges | Forward bond purchase commitments | |
Derivative [Line Items] | |
Notional amount, beginning balance | 0 |
Additions | 1,140 |
Maturities/ terminations | 0 |
Notional amount, ending balance | $ 1,140 |
Derivatives not designated as hedges | GMWB embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 39,015 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (2,202) |
Notional amount, ending balance | Policies | 36,813 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 13,901 |
Additions | Policies | 2,950 |
Maturities/ terminations | Policies | (275) |
Notional amount, ending balance | Policies | 16,576 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 421 |
Additions | Policies | 395 |
Maturities/ terminations | Policies | (25) |
Notional amount, ending balance | Policies | 791 |
Schedule of Pre-Tax Income (Los
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | $ 353 | $ 169 | $ 152 | $ 705 | |
Gain (loss) reclassified into net income (loss) from OCI | 18 | 14 | 60 | 35 | |
Gain (loss) recognized in net income (loss) | [1] | 5 | 2 | 2 | 9 |
Interest Rate Swaps Hedging Assets | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 344 | 151 | 135 | 723 | |
Gain (loss) reclassified into net income (loss) from OCI | 22 | 17 | 61 | 45 | |
Interest Rate Swaps Hedging Assets | Net Investment Gains (Losses) | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income (loss) | [1] | 4 | 2 | 1 | 9 |
Interest Rate Swaps Hedging Liabilities | Net Investment Gains (Losses) | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income (loss) | [1] | 0 | 0 | 0 | 0 |
Interest Rate Swaps Hedging Liabilities | Interest Expense | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | (23) | (8) | (14) | (42) | |
Gain (loss) reclassified into net income (loss) from OCI | 0 | 0 | 0 | 1 | |
Inflation indexed swaps | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 32 | 20 | 29 | (10) | |
Gain (loss) reclassified into net income (loss) from OCI | (5) | (3) | (2) | (11) | |
Inflation indexed swaps | Net Investment Gains (Losses) | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income (loss) | [1] | 1 | 0 | 1 | 0 |
Foreign currency swaps | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 2 | 2 | 2 | ||
Gain (loss) reclassified into net income (loss) from OCI | 0 | 0 | 0 | ||
Foreign currency swaps | Net Investment Gains (Losses) | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income (loss) | [1] | 0 | 0 | 0 | |
Forward bond purchase commitments | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 0 | 4 | 0 | 32 | |
Gain (loss) reclassified into net income (loss) from OCI | 1 | 0 | 1 | 0 | |
Forward bond purchase commitments | Net Investment Gains (Losses) | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income (loss) | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. |
Reconciliation of Current Perio
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Derivative Instruments [Abstract] | |||||
Derivatives qualifying as effective accounting hedges, beginning of period | [1] | $ 1,913 | $ 1,652 | $ 2,070 | $ 1,319 |
Current period increases (decreases) in fair value, net of deferred taxes | [1] | 229 | 110 | 99 | 457 |
Reclassification to net (income) loss, net of deferred taxes | [1] | (12) | (9) | (39) | (23) |
Derivatives qualifying as effective accounting hedges, end of period | [1] | $ 2,130 | $ 1,753 | $ 2,130 | $ 1,753 |
[1] | See note 5 for additional information. |
Reconciliation of Current Per65
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Current period increases (decreases) in fair value, deferred taxes | $ (124) | $ (59) | $ (53) | $ (248) |
Reclassification to net (income), net of deferred taxes | $ 6 | $ 5 | $ 21 | $ 12 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||||||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | ||
Derivative [Line Items] | |||||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax | [1] | $ 2,130 | $ 1,913 | $ 2,070 | $ 1,753 | $ 1,652 | $ 1,319 |
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur | 2,047 | ||||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to net income (loss) in the next 12 months, net of tax | $ 68 | ||||||
Derivative liabilities | Subject to enforceable master netting arrangement | |||||||
Derivative [Line Items] | |||||||
Amount required for disbursement to counterparties if the downgrade provisions had been triggered | [2] | 0 | 2 | ||||
Derivative assets | Subject to enforceable master netting arrangement | |||||||
Derivative [Line Items] | |||||||
Amount to claim from counterparties if the downgrade provisions had been triggered | [3] | $ 245 | $ 47 | ||||
[1] | See note 5 for additional information. | ||||||
[2] | Included $25 million and $6 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2015 and December 31, 2014, respectively. | ||||||
[3] | Included $42 million and $25 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2015 and December 31, 2014, respectively. |
Schedule of Pre-Tax Gain (Loss)
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives not Designated as Hedges (Detail) - Derivatives not designated as hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | $ (64) | $ (41) | $ (76) | $ (64) |
Interest rate swaps | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | (12) | (3) | (13) | (8) |
Interest rate swaps related to securitization entities | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | (5) | 1 | (5) | (5) |
Credit default swaps | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | 1 | 0 | ||
Credit default swaps related to securitization entities | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | (1) | (2) | 10 | 16 |
Equity index options | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | 6 | (1) | (11) | (19) |
Financial futures | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | 13 | 22 | (18) | 66 |
Equity return swaps | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | 11 | 6 | 3 | 1 |
Other foreign currency contracts | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | 4 | 5 | 10 | (6) |
Foreign currency swaps | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | (9) | (4) | (17) | (3) |
Forward bond purchase commitments | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | 13 | 0 | 13 | 0 |
GMWB embedded derivatives | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | (117) | (58) | (68) | (87) |
Fixed index annuity embedded derivatives | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | 31 | (7) | 14 | (19) |
Indexed universal life embedded derivatives | Net Investment Gains (Losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net income (loss) | $ 2 | $ 0 | $ 5 | $ 0 |
Additional Information about De
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | $ 1,344 | $ 1,145 | |
Gross amounts recognized, derivatives liabilities | 1,104 | 884 | |
Subject to enforceable master netting arrangement | |||
Derivative [Line Items] | |||
Collateral received | (827) | (884) | |
Over collateralization, derivatives assets | (162) | (4) | |
Gross amounts recognized, net derivatives | 982 | 884 | |
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | |
Net amounts presented in the balance sheet, net derivatives | 982 | 884 | |
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [1] | 0 | 0 |
Collateral pledged | 252 | 49 | |
Net amount | 245 | 45 | |
Subject to enforceable master netting arrangement | Derivative assets | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives assets | [2] | 1,367 | 1,157 |
Gross amounts offset in the balance sheet, derivatives assets | [2] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives assets | [2] | 1,367 | 1,157 |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [1],[2] | (300) | (227) |
Collateral received | [2] | (827) | (884) |
Over collateralization, derivatives assets | [2] | 5 | 1 |
Net amount, derivatives assets | [2] | 245 | 47 |
Subject to enforceable master netting arrangement | Derivative liabilities | |||
Derivative [Line Items] | |||
Gross amounts recognized, derivatives liabilities | [3] | 385 | 273 |
Gross amounts offset in the balance sheet, derivatives liabilities | [3] | 0 | 0 |
Net amounts presented in the balance sheet, derivatives liabilities | [3] | 385 | 273 |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [1],[3] | (300) | (227) |
Collateral pledged | [3] | (252) | (49) |
Over collateralization, derivatives liabilities | [3] | 167 | 5 |
Net amount, derivatives liabilities | [3] | $ 0 | $ 2 |
[1] | Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. | ||
[2] | Included $42 million and $25 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2015 and December 31, 2014, respectively. | ||
[3] | Included $25 million and $6 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2015 and December 31, 2014, respectively. |
Additional Information about 69
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Subject to enforceable master netting arrangement - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | [1] | $ 385 | $ 273 |
Derivative liabilities | Other liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | 25 | 6 | |
Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | [2] | 1,367 | 1,157 |
Derivative assets | Other assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | $ 42 | $ 25 | |
[1] | Included $25 million and $6 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2015 and December 31, 2014, respectively. | ||
[2] | Included $42 million and $25 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2015 and December 31, 2014, respectively. |
Derivative Instruments Schedule
Derivative Instruments Schedule of Credit Default Swaps where we Sell Protection on Single Name Reference Entities and Fair Values (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional value | $ 23,507 | $ 21,386 |
Credit default swaps | Single Name Reference Entities | ||
Derivative [Line Items] | ||
Notional value | 39 | 39 |
Assets | 0 | 1 |
Liabilities | 0 | 0 |
Credit default swaps | Single Name Reference Entities | Investment grade | Matures Less Than One Year | ||
Derivative [Line Items] | ||
Notional value | 0 | 0 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Credit default swaps | Single Name Reference Entities | Investment grade | Matures After One Year Through Five Years | ||
Derivative [Line Items] | ||
Notional value | 39 | 39 |
Assets | 0 | 1 |
Liabilities | $ 0 | $ 0 |
Schedule of Credit Default Swap
Schedule of Credit Default Swaps where we Sell Protection on Credit Default Swap Index Tranches and Fair Values (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Notional value | $ 23,507 | $ 21,386 | |
Credit default swaps | Original Index Tranche Attachment/Detachment Point And Maturity | Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 100 | 350 | |
Assets | 1 | 3 | |
Liabilities | 0 | 0 | |
Credit default swaps | Original Index Tranche Attachment/Detachment Point And Maturity | Index Tranches | Matures Less Than One Year | 9% - 12% | |||
Derivative [Line Items] | |||
Notional value | [1] | 0 | 250 |
Assets | [1] | 0 | 2 |
Liabilities | [1] | 0 | 0 |
Credit default swaps | Original Index Tranche Attachment/Detachment Point And Maturity | Index Tranches | Matures After One Year Through Five Years | 7% - 15% | |||
Derivative [Line Items] | |||
Notional value | [2] | 100 | 100 |
Assets | [2] | 1 | 1 |
Liabilities | [2] | 0 | 0 |
Credit default swaps | Securitization Entities | Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 312 | 312 | |
Assets | 0 | 0 | |
Liabilities | 10 | 17 | |
Credit default swaps | Securitization Entities | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [3] | 12 | 12 |
Assets | [3] | 0 | 0 |
Liabilities | [3] | 1 | 0 |
Credit default swaps | Securitization Entities | Index Tranches | Portion Backing Interest Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [4] | 300 | 300 |
Assets | [4] | 0 | 0 |
Liabilities | [4] | 9 | 17 |
Total Credit Default Swaps on Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 412 | 662 | |
Assets | 1 | 3 | |
Liabilities | $ 10 | $ 17 | |
[1] | The current attachment/detachment as of December 31, 2014 was 9% - 12%. | ||
[2] | The current attachment/detachment as of September 30, 2015 and December 31, 2014 was 7% - 15%. | ||
[3] | Original notional value was $39 million. | ||
[4] | Original notional value was $300 million. |
Schedule of Credit Default Sw72
Schedule of Credit Default Swaps where we Sell Protection on Credit Default Swap Index Tranches and Fair Values (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Notional value | $ 23,507 | $ 21,386 | |
Index Tranches | Original Index Tranche Attachment/Detachment Point And Maturity | Credit default swaps | |||
Derivative [Line Items] | |||
Notional value | 100 | $ 350 | |
Index Tranches | Original Index Tranche Attachment/Detachment Point And Maturity | Matures Less Than One Year | Credit default swaps | 9% - 12% | |||
Derivative [Line Items] | |||
Current attachment percentage | 9.00% | ||
Current detachment percentage | 12.00% | ||
Notional value | [1] | $ 0 | $ 250 |
Index Tranches | Original Index Tranche Attachment/Detachment Point And Maturity | Matures After One Year Through Five Years | Credit default swaps | 7% - 15% | |||
Derivative [Line Items] | |||
Current attachment percentage | 7.00% | 7.00% | |
Current detachment percentage | 15.00% | 15.00% | |
Notional value | [2] | $ 100 | $ 100 |
Index Tranches | Securitization Entities | Credit default swaps | |||
Derivative [Line Items] | |||
Notional value | 312 | 312 | |
Index Tranches | Securitization Entities | Portion Backing Third-Party Borrowings Maturing 2017 | Credit default swaps | |||
Derivative [Line Items] | |||
Notional value | [3] | 12 | 12 |
Index Tranches | Securitization Entities | Portion Backing Third-Party Borrowings Maturing 2017 | Credit default swaps | Original Amount | |||
Derivative [Line Items] | |||
Notional value | 39 | ||
Index Tranches | Securitization Entities | Portion Backing Interest Maturing 2017 | Credit default swaps | |||
Derivative [Line Items] | |||
Notional value | [4] | 300 | $ 300 |
Index Tranches | Securitization Entities | Portion Backing Interest Maturing 2017 | Credit default swaps | Original Amount | |||
Derivative [Line Items] | |||
Notional value | $ 300 | ||
[1] | The current attachment/detachment as of December 31, 2014 was 9% - 12%. | ||
[2] | The current attachment/detachment as of September 30, 2015 and December 31, 2014 was 7% - 15%. | ||
[3] | Original notional value was $39 million. | ||
[4] | Original notional value was $300 million. |
Fair Value Financial Instrument
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 6,133 | $ 6,100 | |
Restricted commercial mortgage loans | 175 | 201 | |
Other invested assets | 2,773 | 2,244 | |
Long-term borrowings | 4,601 | 4,639 | |
Non-recourse funding obligations | 1,951 | 1,996 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 0 | 0 | |
Restricted commercial mortgage loans | 0 | 0 | |
Other invested assets | 0 | 0 | |
Long-term borrowings | 0 | 0 | |
Non-recourse funding obligations | 0 | 0 | |
Borrowings related to securitization entities | 0 | 0 | |
Investment contracts | 0 | 0 | |
Commitments to fund limited partnerships | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 0 | 0 | |
Restricted commercial mortgage loans | 0 | 0 | |
Other invested assets | 376 | 274 | |
Long-term borrowings | 3,886 | 4,181 | |
Non-recourse funding obligations | 0 | 0 | |
Borrowings related to securitization entities | 116 | 146 | |
Investment contracts | 5 | 7 | |
Commitments to fund limited partnerships | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,481 | 6,573 | |
Restricted commercial mortgage loans | 196 | 228 | |
Other invested assets | 83 | 85 | |
Long-term borrowings | 235 | 119 | |
Non-recourse funding obligations | 1,417 | 1,438 | |
Borrowings related to securitization entities | 0 | 0 | |
Investment contracts | 18,062 | 18,005 | |
Commitments to fund limited partnerships | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Notional amount | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | [1] | 0 | 0 |
Restricted commercial mortgage loans | [1] | 0 | 0 |
Other invested assets | [1] | 0 | 0 |
Long-term borrowings | [1] | 0 | 0 |
Non-recourse funding obligations | [1] | 0 | 0 |
Borrowings related to securitization entities | [1] | 0 | 0 |
Investment contracts | [1] | 0 | 0 |
Commitments to fund limited partnerships | 87 | 53 | |
Ordinary course of business lending commitments | 167 | 155 | |
Carrying value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,133 | 6,100 | |
Restricted commercial mortgage loans | 175 | 201 | |
Other invested assets | 453 | 348 | |
Long-term borrowings | 4,601 | 4,639 | |
Non-recourse funding obligations | 1,951 | 1,996 | |
Borrowings related to securitization entities | 108 | 134 | |
Investment contracts | 17,260 | 17,486 | |
Commitments to fund limited partnerships | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,481 | 6,573 | |
Restricted commercial mortgage loans | 196 | 228 | |
Other invested assets | 459 | 359 | |
Long-term borrowings | 4,121 | 4,300 | |
Non-recourse funding obligations | 1,417 | 1,438 | |
Borrowings related to securitization entities | 116 | 146 | |
Investment contracts | 18,067 | 18,012 | |
Commitments to fund limited partnerships | 0 | 0 | |
Ordinary course of business lending commitments | $ 0 | $ 0 | |
[1] | These financial instruments do not have notional amounts. |
Fair Value of Financial Instr74
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 1 Months Ended | 8 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($) | Aug. 31, 2015 | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||||
Period end valuation | 0 | |||
GMWB non-performance risk impact | $ 82 | $ 82 | $ 74 | |
Minimum | ||||
Fair Value of Financial Instruments [Line Items] | ||||
Percentage of changes in fair value of fixed maturity, equity and trading securities each month | 8.00% | 10.00% |
Assets by Class of Instrument t
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 60,851 | $ 61,276 | |
Available-for-sale equity securities | 273 | 275 | |
Derivative assets, fair value | 1,344 | 1,145 | |
Total other invested assets | 2,773 | 2,244 | |
Restricted other invested assets related to securitization entities | 412 | 411 | |
Separate account assets | 7,893 | 9,208 | |
Total assets | 71,598 | 72,845 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 1,325 | 1,132 | |
Securities lending collateral | 367 | 289 | |
Reinsurance recoverable | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 19 | 13 |
Trading Securities | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 458 | 241 | |
Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 1,246 | 1,091 | |
Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 8 | 6 | |
Credit default swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 1 | 4 | |
Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 15 | 17 | |
Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 25 | 14 | |
Inflation indexed swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 2 | ||
Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 15 | ||
Forward bond purchase commitments | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 13 | ||
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 459 | 359 | |
Fair value | Other Invested Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 2,150 | 1,662 | |
Fixed maturity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 60,851 | 61,276 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,913 | 6,000 | |
Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,448 | 2,222 | |
Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,952 | 1,920 | |
Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 25,695 | 25,236 | |
Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,800 | 3,864 | |
Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,771 | 2,742 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,849 | 5,653 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,142 | 4,019 | |
Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,408 | 2,325 | |
Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,301 | 1,287 | |
Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,077 | 2,006 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,833 | 1,900 | |
Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,091 | 1,039 | |
Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 423 | 401 | |
Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 13,199 | 14,263 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 897 | 913 | |
Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,891 | 2,050 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,877 | 3,012 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 755 | 812 | |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 996 | 1,066 | |
Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,096 | 1,225 | |
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 610 | 631 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 566 | 549 | |
Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 611 | 594 | |
Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,900 | 3,411 | |
Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,118 | 5,228 | |
Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,587 | 2,702 | |
Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,939 | 3,705 | |
Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale equity securities | 273 | 275 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 0 | 0 | |
Restricted other invested assets related to securitization entities | 0 | 0 | |
Separate account assets | 7,893 | 9,208 | |
Total assets | 8,126 | 9,445 | |
Level 1 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Securities lending collateral | 0 | 0 | |
Level 1 | Reinsurance recoverable | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 0 |
Level 1 | Trading Securities | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Level 1 | Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Credit default swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 1 | Inflation indexed swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
Level 1 | Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
Level 1 | Forward bond purchase commitments | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
Level 1 | Fair value | Other Invested Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 0 | 0 | |
Level 1 | Fixed maturity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Level 1 | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale equity securities | 233 | 237 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 376 | 274 | |
Restricted other invested assets related to securitization entities | 181 | 181 | |
Separate account assets | 0 | 0 | |
Total assets | 57,686 | 57,349 | |
Level 2 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 1,309 | 1,112 | |
Securities lending collateral | 367 | 289 | |
Level 2 | Reinsurance recoverable | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 0 |
Level 2 | Trading Securities | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 458 | 241 | |
Level 2 | Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 1,246 | 1,091 | |
Level 2 | Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 8 | 6 | |
Level 2 | Credit default swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 1 | |
Level 2 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 2 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 25 | 14 | |
Level 2 | Inflation indexed swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 2 | ||
Level 2 | Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 15 | ||
Level 2 | Forward bond purchase commitments | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 13 | ||
Level 2 | Fair value | Other Invested Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 2,134 | 1,642 | |
Level 2 | Fixed maturity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 55,369 | 55,522 | |
Level 2 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,910 | 5,996 | |
Level 2 | Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,413 | 2,192 | |
Level 2 | Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,952 | 1,913 | |
Level 2 | Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 23,318 | 22,817 | |
Level 2 | Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,337 | 3,420 | |
Level 2 | Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,506 | 2,457 | |
Level 2 | Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,187 | 5,037 | |
Level 2 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,047 | 3,879 | |
Level 2 | Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,374 | 2,280 | |
Level 2 | Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,236 | 1,251 | |
Level 2 | Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,887 | 1,840 | |
Level 2 | Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,526 | 1,537 | |
Level 2 | Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 981 | 886 | |
Level 2 | Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 237 | 230 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 11,519 | 12,459 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 553 | 585 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,612 | 1,726 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,643 | 2,791 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 598 | 615 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 954 | 1,024 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,008 | 1,094 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 380 | 394 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 479 | 460 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 465 | 440 | |
Level 2 | Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,827 | 3,330 | |
Level 2 | Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,048 | 5,163 | |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,576 | 2,697 | |
Level 2 | Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,633 | 2,285 | |
Level 2 | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale equity securities | 2 | 4 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 83 | 85 | |
Restricted other invested assets related to securitization entities | 231 | 230 | |
Separate account assets | 0 | 0 | |
Total assets | 5,786 | 6,051 | |
Level 3 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 16 | 20 | |
Securities lending collateral | 0 | 0 | |
Level 3 | Reinsurance recoverable | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 19 | 13 |
Level 3 | Trading Securities | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | 0 | |
Level 3 | Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | Credit default swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 1 | 3 | |
Level 3 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 15 | 17 | |
Level 3 | Other foreign currency contracts | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | 0 | |
Level 3 | Inflation indexed swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
Level 3 | Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
Level 3 | Forward bond purchase commitments | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 0 | ||
Level 3 | Fair value | Other Invested Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 16 | 20 | |
Level 3 | Fixed maturity securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 5,482 | 5,754 | |
Level 3 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3 | 4 | |
Level 3 | Fixed maturity securities | State and Political Subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 35 | 30 | |
Level 3 | Fixed maturity securities | Non-U.S. government | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 7 | |
Level 3 | Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 2,377 | 2,419 | |
Level 3 | Fixed maturity securities | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 463 | 444 | |
Level 3 | Fixed maturity securities | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 265 | 285 | |
Level 3 | Fixed maturity securities | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 662 | 616 | |
Level 3 | Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 95 | 140 | |
Level 3 | Fixed maturity securities | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 34 | 45 | |
Level 3 | Fixed maturity securities | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 65 | 36 | |
Level 3 | Fixed maturity securities | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 190 | 166 | |
Level 3 | Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 307 | 363 | |
Level 3 | Fixed maturity securities | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 110 | 153 | |
Level 3 | Fixed maturity securities | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 186 | 171 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,680 | 1,804 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 344 | 328 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 279 | 324 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 234 | 221 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 157 | 197 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 42 | 42 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 88 | 131 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 230 | 237 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 87 | 89 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 146 | 154 | |
Level 3 | Fixed maturity securities | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 73 | 81 | |
Level 3 | Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 70 | 65 | |
Level 3 | Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 11 | 5 | |
Level 3 | Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 1,306 | 1,420 | |
Level 3 | Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale equity securities | $ 38 | $ 34 | |
[1] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Assets Measured at Fair Value o
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | $ 5,854 | $ 5,974 | $ 6,051 | $ 5,870 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 23 | 16 | 20 | 27 | |||||
Total realized and unrealized gains (losses), Included in OCI | (27) | (25) | (46) | 104 | |||||
Purchases | 236 | 205 | 466 | 741 | |||||
Sales | (18) | (10) | (41) | (166) | |||||
Issuances | 0 | 0 | 1 | 2 | |||||
Settlements | (142) | (215) | (508) | (497) | |||||
Transfer into Level 3 | 140 | [1] | 357 | [2] | 317 | [1] | 550 | [2] | |
Transfer out of Level 3 | (280) | [1] | (138) | [2] | (474) | [1] | (467) | [2] | |
Ending balance | 5,786 | 6,164 | 5,786 | 6,164 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 22 | 12 | 17 | 24 | |||||
Restricted other invested assets related to securitization entities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 230 | 224 | 230 | 211 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | (1) | 1 | 12 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 0 | 1 | 0 | 1 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 231 | 224 | 231 | 224 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | (1) | 1 | 12 | |||||
Reinsurance recoverable | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | [3] | 10 | 3 | 13 | (1) | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | [3] | 9 | 5 | 5 | 7 | ||||
Total realized and unrealized gains (losses), Included in OCI | [3] | 0 | 0 | 0 | 0 | ||||
Purchases | [3] | 0 | 0 | 0 | 0 | ||||
Sales | [3] | 0 | 0 | 0 | 0 | ||||
Issuances | [3] | 0 | 0 | 1 | 2 | ||||
Settlements | [3] | 0 | 0 | 0 | 0 | ||||
Transfer into Level 3 | [3] | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] |
Transfer out of Level 3 | [3] | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] |
Ending balance | [3] | 19 | 8 | 19 | 8 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | [3] | 9 | 5 | 5 | 7 | ||||
Fixed maturity securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 5,560 | 5,639 | 5,754 | 5,523 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 7 | 13 | 25 | 29 | |||||
Total realized and unrealized gains (losses), Included in OCI | (27) | (25) | (46) | 104 | |||||
Purchases | 236 | 196 | 453 | 722 | |||||
Sales | (14) | (9) | (36) | (153) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (139) | (213) | (503) | (488) | |||||
Transfer into Level 3 | 139 | [1] | 357 | [2] | 309 | [1] | 550 | [2] | |
Transfer out of Level 3 | (280) | [1] | (107) | [2] | (474) | [1] | (436) | [2] | |
Ending balance | 5,482 | 5,851 | 5,482 | 5,851 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 7 | 8 | 19 | 23 | |||||
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 3 | 4 | 4 | 5 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | (1) | (1) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 3 | 4 | 3 | 4 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | State and Political Subdivisions | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 40 | 33 | 30 | 27 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 1 | 2 | 2 | |||||
Total realized and unrealized gains (losses), Included in OCI | (1) | 0 | 8 | 0 | |||||
Purchases | 0 | 0 | 5 | 5 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (5) | [1] | 0 | [2] | (10) | [1] | 0 | [2] | |
Ending balance | 35 | 34 | 35 | 34 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 2 | 2 | |||||
Fixed maturity securities | Non-U.S. government | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 5 | 25 | 7 | 23 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | (1) | 0 | |||||
Purchases | 0 | 0 | 0 | 3 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (1) | (1) | (2) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (5) | [1] | (17) | [2] | (5) | [1] | (17) | [2] | |
Ending balance | 0 | 7 | 0 | 7 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 2,271 | 2,390 | 2,419 | 2,373 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 6 | 8 | 19 | 18 | |||||
Total realized and unrealized gains (losses), Included in OCI | (7) | (15) | (51) | 54 | |||||
Purchases | 163 | 55 | 227 | 195 | |||||
Sales | 0 | 0 | (5) | (39) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (36) | (107) | (143) | (207) | |||||
Transfer into Level 3 | 37 | [1] | 184 | [2] | 86 | [1] | 285 | [2] | |
Transfer out of Level 3 | (57) | [1] | (57) | [2] | (175) | [1] | (221) | [2] | |
Ending balance | 2,377 | 2,458 | 2,377 | 2,458 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 4 | 5 | 14 | 16 | |||||
Fixed maturity securities | U.S. corporate | Utilities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 448 | 391 | 444 | 420 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 1 | 0 | (9) | 6 | |||||
Purchases | 23 | 6 | 38 | 18 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | (2) | (5) | |||||
Transfer into Level 3 | 8 | [1] | 97 | [2] | 10 | [1] | 102 | [2] | |
Transfer out of Level 3 | (17) | [1] | 0 | [2] | (18) | [1] | (47) | [2] | |
Ending balance | 463 | 494 | 463 | 494 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Energy | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 269 | 252 | 285 | 281 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | (3) | (4) | (7) | (1) | |||||
Purchases | 0 | 25 | 4 | 25 | |||||
Sales | 0 | 0 | (4) | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (1) | (1) | (5) | (2) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 14 | [2] | |
Transfer out of Level 3 | 0 | [1] | (57) | [2] | (8) | [1] | (102) | [2] | |
Ending balance | 265 | 215 | 265 | 215 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Finance and insurance | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 629 | 513 | 616 | 433 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 4 | 3 | 12 | 10 | |||||
Total realized and unrealized gains (losses), Included in OCI | (3) | (7) | (25) | 19 | |||||
Purchases | 55 | 6 | 83 | 37 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (3) | (2) | (28) | (7) | |||||
Transfer into Level 3 | 0 | [1] | 70 | [2] | 47 | [1] | 128 | [2] | |
Transfer out of Level 3 | (20) | [1] | 0 | [2] | (43) | [1] | (37) | [2] | |
Ending balance | 662 | 583 | 662 | 583 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 3 | 3 | 10 | 10 | |||||
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 108 | 174 | 140 | 224 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 4 | 2 | 2 | |||||
Total realized and unrealized gains (losses), Included in OCI | (1) | (3) | 0 | 4 | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | (38) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (2) | (31) | (37) | (58) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 10 | [2] | |
Transfer out of Level 3 | (10) | [1] | 0 | [2] | (10) | [1] | 0 | [2] | |
Ending balance | 95 | 144 | 95 | 144 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | (2) | |||||
Fixed maturity securities | U.S. corporate | Technology and communications | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 33 | 65 | 45 | 60 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 0 | 2 | 2 | |||||
Total realized and unrealized gains (losses), Included in OCI | 1 | 0 | (2) | 3 | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (1) | 0 | (1) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (1) | [1] | 0 | [2] | (11) | [1] | 0 | [2] | |
Ending balance | 34 | 64 | 34 | 64 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 2 | 3 | |||||
Fixed maturity securities | U.S. corporate | Industrial | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 36 | 36 | 36 | 24 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 2 | |||||
Total realized and unrealized gains (losses), Included in OCI | 1 | 0 | 1 | 2 | |||||
Purchases | 28 | 0 | 28 | 27 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | (16) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | (3) | [2] | |
Ending balance | 65 | 36 | 65 | 36 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 2 | |||||
Fixed maturity securities | U.S. corporate | Capital goods | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 165 | 157 | 166 | 139 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | (2) | 0 | (3) | 4 | |||||
Purchases | 27 | 8 | 28 | 8 | |||||
Sales | 0 | 0 | (1) | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | ||||||
Transfer into Level 3 | 0 | [1] | 17 | [2] | 0 | [1] | 31 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 190 | 182 | 190 | 182 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 296 | 416 | 363 | 386 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 1 | 1 | 1 | |||||
Total realized and unrealized gains (losses), Included in OCI | (2) | (1) | (3) | 3 | |||||
Purchases | 30 | 0 | 39 | 62 | |||||
Sales | 0 | 0 | 0 | (1) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (28) | (29) | (36) | (64) | |||||
Transfer into Level 3 | 10 | [1] | 0 | [2] | 10 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | (67) | [1] | 0 | [2] | |
Ending balance | 307 | 387 | 307 | 387 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 1 | 0 | 1 | |||||
Fixed maturity securities | U.S. corporate | Transportation | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 121 | 163 | 153 | 196 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 1 | 1 | |||||
Total realized and unrealized gains (losses), Included in OCI | (1) | (1) | (3) | 4 | |||||
Purchases | 0 | 10 | 7 | 10 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (1) | (2) | (30) | (9) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (9) | [1] | 0 | [2] | (18) | [1] | (32) | [2] | |
Ending balance | 110 | 170 | 110 | 170 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 1 | 1 | |||||
Fixed maturity securities | U.S. corporate | Other | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 166 | 223 | 171 | 210 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 1 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 2 | 1 | 0 | 10 | |||||
Purchases | 0 | 0 | 0 | 8 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (1) | (41) | (5) | (45) | |||||
Transfer into Level 3 | 19 | [1] | 0 | [2] | 19 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 186 | 183 | 186 | 183 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 1 | 1 | |||||
Fixed maturity securities | Non-U.S. corporate | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 1,724 | 1,853 | 1,804 | 1,819 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 2 | 1 | 4 | |||||
Total realized and unrealized gains (losses), Included in OCI | (8) | (7) | (8) | 41 | |||||
Purchases | 33 | 61 | 46 | 228 | |||||
Sales | 0 | 0 | (9) | (77) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (51) | (54) | (116) | (143) | |||||
Transfer into Level 3 | 16 | [1] | 46 | [2] | 19 | [1] | 61 | [2] | |
Transfer out of Level 3 | (34) | [1] | (33) | [2] | (57) | [1] | (65) | [2] | |
Ending balance | 1,680 | 1,868 | 1,680 | 1,868 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 1 | 1 | 3 | |||||
Fixed maturity securities | Non-U.S. corporate | Utilities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 326 | 297 | 328 | 260 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | (2) | 7 | |||||
Purchases | 18 | 24 | 18 | 54 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | 0 | [1] | 26 | [2] | 0 | [1] | 26 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 344 | 347 | 344 | 347 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Energy | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 305 | 294 | 324 | 320 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | (1) | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | (3) | (2) | (5) | 4 | |||||
Purchases | 0 | 17 | 0 | 17 | |||||
Sales | 0 | 0 | (9) | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (23) | (22) | (30) | (44) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | (3) | [2] | 0 | [1] | (13) | [2] | |
Ending balance | 279 | 284 | 279 | 284 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | (1) | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 218 | 264 | 221 | 181 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 2 | 3 | |||||
Total realized and unrealized gains (losses), Included in OCI | 1 | 2 | (3) | 29 | |||||
Purchases | 15 | 0 | 21 | 86 | |||||
Sales | 0 | 0 | 0 | (42) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (1) | (3) | (6) | |||||
Transfer into Level 3 | 0 | [1] | 6 | [2] | 0 | [1] | 21 | [2] | |
Transfer out of Level 3 | 0 | [1] | (30) | [2] | (4) | [1] | (30) | [2] | |
Ending balance | 234 | 242 | 234 | 242 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 1 | 2 | 3 | |||||
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 169 | 226 | 197 | 212 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 2 | 1 | |||||
Purchases | 0 | 0 | 0 | 35 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (11) | (1) | (41) | (23) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | (1) | [1] | 0 | [2] | (1) | [1] | 0 | [2] | |
Ending balance | 157 | 225 | 157 | 225 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Technology and communications | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 42 | 58 | 42 | 58 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 0 | 20 | 0 | 20 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 1 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | (1) | [1] | 0 | [2] | |
Ending balance | 42 | 78 | 42 | 78 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Industrial | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 125 | 144 | 131 | 151 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | (1) | 0 | 2 | |||||
Purchases | 0 | 0 | 7 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (4) | 0 | (18) | 0 | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 1 | [1] | 0 | [2] | |
Transfer out of Level 3 | (33) | [1] | 0 | [2] | (33) | [1] | (10) | [2] | |
Ending balance | 88 | 143 | 88 | 143 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Capital goods | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 237 | 242 | 237 | 299 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 0 | 1 | |||||
Total realized and unrealized gains (losses), Included in OCI | (2) | (1) | (2) | (1) | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | (35) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (5) | (30) | (5) | (40) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | (12) | [2] | |
Ending balance | 230 | 212 | 230 | 212 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 73 | 90 | 89 | 96 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | (2) | (1) | (1) | 1 | |||||
Purchases | 0 | 0 | 0 | 5 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | (13) | |||||
Transfer into Level 3 | 16 | [1] | 0 | [2] | 16 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | (17) | [1] | 0 | [2] | |
Ending balance | 87 | 89 | 87 | 89 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Transportation | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 154 | 165 | 154 | 153 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 1 | |||||
Purchases | 0 | 0 | 0 | 11 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (8) | 0 | (8) | 0 | |||||
Transfer into Level 3 | 0 | [1] | 14 | [2] | 0 | [1] | 14 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 146 | 179 | 146 | 179 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Non-U.S. corporate | Other | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 75 | 73 | 81 | 89 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | (2) | (4) | 3 | (3) | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | (11) | (17) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 1 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | (1) | [1] | 0 | [2] | |
Ending balance | 73 | 69 | 73 | 69 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Residential mortgage-backed | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 132 | 61 | 65 | 104 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | (3) | (3) | (3) | (1) | |||||
Purchases | 6 | 15 | 37 | 15 | |||||
Sales | 0 | 0 | 0 | (23) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (2) | (2) | (7) | (6) | |||||
Transfer into Level 3 | 9 | [1] | 0 | [2] | 50 | [1] | 13 | [2] | |
Transfer out of Level 3 | (72) | [1] | 0 | [2] | (72) | [1] | (31) | [2] | |
Ending balance | 70 | 71 | 70 | 71 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Commercial mortgage-backed | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 25 | 5 | 5 | 6 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | (1) | 0 | (1) | 3 | |||||
Purchases | 0 | 0 | 9 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | (1) | (2) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 13 | [1] | 6 | [2] | |
Transfer out of Level 3 | (13) | [1] | 0 | [2] | (14) | [1] | (8) | [2] | |
Ending balance | 11 | 5 | 11 | 5 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Fixed maturity securities | Other asset-backed | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 1,360 | 1,268 | 1,420 | 1,166 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 2 | 3 | 5 | |||||
Total realized and unrealized gains (losses), Included in OCI | (7) | 0 | 10 | 7 | |||||
Purchases | 34 | 65 | 129 | 276 | |||||
Sales | (14) | (9) | (22) | (14) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (50) | (49) | (234) | (127) | |||||
Transfer into Level 3 | 77 | [1] | 127 | [2] | 141 | [1] | 185 | [2] | |
Transfer out of Level 3 | (94) | [1] | 0 | [2] | (141) | [1] | (94) | [2] | |
Ending balance | 1,306 | 1,404 | 1,306 | 1,404 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 2 | 1 | 2 | 2 | |||||
Equity Securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 41 | 67 | 34 | 78 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 0 | 0 | 1 | 0 | |||||
Sales | (4) | (1) | (5) | (12) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | 0 | 0 | 0 | |||||
Transfer into Level 3 | 1 | [1] | 0 | [2] | 8 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 38 | 66 | 38 | 66 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Other invested assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 13 | 41 | 20 | 59 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 6 | (1) | (11) | (21) | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 0 | 8 | 12 | 18 | |||||
Sales | 0 | 0 | 0 | (1) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (3) | (2) | (5) | (9) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | (31) | [2] | 0 | [1] | (31) | [2] | |
Ending balance | 16 | 15 | 16 | 15 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 5 | 0 | (8) | (18) | |||||
Other invested assets | Derivative assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 13 | 10 | 20 | 25 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 6 | (1) | (11) | (21) | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 0 | 8 | 12 | 18 | |||||
Sales | 0 | 0 | 0 | (1) | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (3) | (2) | (5) | (6) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 16 | 15 | 16 | 15 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 5 | 0 | (8) | (18) | |||||
Other invested assets | Trading Securities | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 31 | 34 | |||||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | |||||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | |||||||
Purchases | 0 | 0 | |||||||
Sales | 0 | 0 | |||||||
Issuances | 0 | 0 | |||||||
Settlements | 0 | (3) | |||||||
Transfer into Level 3 | [2] | 0 | 0 | ||||||
Transfer out of Level 3 | [2] | (31) | (31) | ||||||
Ending balance | 0 | 0 | |||||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | |||||||
Other invested assets | Credit default swaps | Derivative assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 1 | 6 | 3 | 10 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 0 | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 0 | 0 | 0 | 0 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | 0 | (2) | (2) | (6) | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 1 | 4 | 1 | 4 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |||||
Other invested assets | Equity index options | Derivative assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 12 | 4 | 17 | 12 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 6 | (1) | (11) | (19) | |||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |||||
Purchases | 0 | 8 | 12 | 18 | |||||
Sales | 0 | 0 | 0 | 0 | |||||
Issuances | 0 | 0 | 0 | 0 | |||||
Settlements | (3) | 0 | (3) | 0 | |||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [1] | 0 | [2] | |
Ending balance | 15 | 11 | 15 | 11 | |||||
Total gains (losses) included in net income (loss) attributable to assets still held | $ 5 | 0 | $ (8) | (18) | |||||
Other invested assets | Other foreign currency contracts | Derivative assets | |||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||||
Beginning balance | 3 | ||||||||
Total realized and unrealized gains (losses), Included in net income (loss) | (2) | ||||||||
Total realized and unrealized gains (losses), Included in OCI | 0 | ||||||||
Purchases | 0 | ||||||||
Sales | (1) | ||||||||
Issuances | 0 | ||||||||
Settlements | 0 | ||||||||
Transfer into Level 3 | [2] | 0 | |||||||
Transfer out of Level 3 | [2] | 0 | |||||||
Ending balance | $ 0 | 0 | |||||||
Total gains (losses) included in net income (loss) attributable to assets still held | $ 0 | ||||||||
[1] | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. | ||||||||
[2] | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads. | ||||||||
[3] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Gains and Losses Included in Ne
Gains and Losses Included in Net Income (Loss) from Assets and Liabilities Recorded at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | $ 23 | $ 16 | $ 20 | $ 27 |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | 22 | 12 | 17 | 24 |
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | 90 | 72 | 38 | 106 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 88 | 72 | 40 | 107 |
Net Investment Income | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | 9 | 14 | 30 | 34 |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | 8 | 9 | 23 | 26 |
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | 0 | 0 | 0 | 0 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 0 | 0 | 0 | 0 |
Net Investment Gains (Losses) | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | 14 | 2 | (10) | (7) |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | 14 | 3 | (6) | (2) |
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | 90 | 72 | 38 | 106 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | $ 88 | $ 72 | $ 40 | $ 107 |
Liabilities by Class of Instrum
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | $ 1,104 | $ 884 | |
Borrowings related to securitization entities | 80 | 85 | |
Total liabilities | 1,184 | 969 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 704 | 574 | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 390 | 291 |
Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 304 | 276 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 10 | 7 | |
Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 400 | 310 | |
Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 290 | 204 | |
Other liabilities | Interest rate swaps related to securitization entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 30 | 26 | |
Other liabilities | Inflation indexed swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 14 | 42 | |
Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 22 | 7 | |
Other liabilities | Credit default swaps related to securitization entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 10 | 17 | |
Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 1 | ||
Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 34 | 13 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings related to securitization entities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 1 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 0 | 0 |
Level 1 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Interest rate swaps related to securitization entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Inflation indexed swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Credit default swaps related to securitization entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 1 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Level 1 | Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings related to securitization entities | 0 | 0 | |
Total liabilities | 390 | 293 | |
Level 2 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 0 | 0 |
Level 2 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 390 | 293 | |
Level 2 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 290 | 204 | |
Level 2 | Other liabilities | Interest rate swaps related to securitization entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 30 | 26 | |
Level 2 | Other liabilities | Inflation indexed swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 14 | 42 | |
Level 2 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 22 | 7 | |
Level 2 | Other liabilities | Credit default swaps related to securitization entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 2 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 1 | ||
Level 2 | Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 34 | 13 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings related to securitization entities | 80 | 85 | |
Total liabilities | 794 | 676 | |
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 704 | 574 | |
Level 3 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 390 | 291 |
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 304 | 276 | |
Level 3 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 10 | 7 | |
Level 3 | Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 10 | 17 | |
Level 3 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Other liabilities | Interest rate swaps related to securitization entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Other liabilities | Inflation indexed swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | 0 | |
Level 3 | Other liabilities | Credit default swaps related to securitization entities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 10 | 17 | |
Level 3 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 0 | ||
Level 3 | Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | $ 0 | $ 0 | |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities Measured at Fair Va
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 678 | $ 466 | $ 676 | $ 347 | |
Total realized and unrealized (gains) losses included in net (income) loss | 90 | 72 | 38 | 106 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 1 | 1 | 3 | 3 | |
Sales | 0 | 0 | 0 | (2) | |
Issuances | 26 | 31 | 82 | 117 | |
Settlements | (1) | (1) | (5) | (2) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 794 | 569 | 794 | 569 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 88 | 72 | 40 | 107 | |
Derivative liabilities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 8 | 16 | 17 | 33 | |
Total realized and unrealized (gains) losses included in net (income) loss | 1 | 2 | (10) | (15) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 1 | 1 | 3 | 3 | |
Sales | 0 | 0 | 0 | (2) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 10 | 19 | 10 | 19 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 1 | 2 | (10) | (16) | |
Policyholder account balances | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 586 | 367 | 574 | 239 | |
Total realized and unrealized (gains) losses included in net (income) loss | 93 | 70 | 54 | 113 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 26 | 31 | 81 | 117 | |
Settlements | (1) | (1) | (5) | (2) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 704 | 467 | 704 | 467 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 91 | 70 | 56 | 115 | |
Policyholder account balances | GMWB embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | [1] | 255 | 146 | 291 | 96 |
Total realized and unrealized (gains) losses included in net (income) loss | [1] | 126 | 63 | 73 | 94 |
Total realized and unrealized (gains) losses included in OCI | [1] | 0 | 0 | 0 | 0 |
Purchases | [1] | 0 | 0 | 0 | 0 |
Sales | [1] | 0 | 0 | 0 | 0 |
Issuances | [1] | 9 | 9 | 26 | 28 |
Settlements | [1] | 0 | 0 | 0 | 0 |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | [1] | 390 | 218 | 390 | 218 |
Total (gains) losses included in net (income) loss attributable to liabilities still held | [1] | 124 | 63 | 75 | 96 |
Policyholder account balances | Fixed index annuity embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 322 | 219 | 276 | 143 | |
Total realized and unrealized (gains) losses included in net (income) loss | (31) | 7 | (14) | 19 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 14 | 21 | 47 | 86 | |
Settlements | (1) | (1) | (5) | (2) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 304 | 246 | 304 | 246 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (31) | 7 | (14) | 19 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 9 | 2 | 7 | 0 | |
Total realized and unrealized (gains) losses included in net (income) loss | (2) | 0 | (5) | 0 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 3 | 1 | 8 | 3 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 10 | 3 | 10 | 3 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (2) | 0 | (5) | 0 | |
Credit default swaps related to securitization entities | Derivative liabilities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 8 | 16 | 17 | 32 | |
Total realized and unrealized (gains) losses included in net (income) loss | 1 | 2 | (10) | (16) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 1 | 1 | 3 | 3 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 10 | 19 | 10 | 19 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 1 | 2 | (10) | (16) | |
Borrowings related to securitization entities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 84 | 83 | 85 | 75 | |
Total realized and unrealized (gains) losses included in net (income) loss | (4) | 0 | (6) | 8 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 1 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 80 | 83 | 80 | 83 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | $ (4) | 0 | $ (6) | 8 | |
Other foreign currency contracts | Derivative liabilities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 1 | ||||
Total realized and unrealized (gains) losses included in net (income) loss | 1 | ||||
Total realized and unrealized (gains) losses included in OCI | 0 | ||||
Purchases | 0 | ||||
Sales | (2) | ||||
Issuances | 0 | ||||
Settlements | 0 | ||||
Transfer into Level 3 | 0 | ||||
Transfer out of Level 3 | 0 | ||||
Ending balance | $ 0 | 0 | |||
Total (gains) losses included in net (income) loss attributable to liabilities still held | $ 0 | ||||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fixed maturity securities available-for-sale, at fair value | $ 60,851 | $ 61,276 | |
Derivative liabilities, fair value | 1,104 | 884 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 704 | 574 | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | [1] | 390 | 291 |
Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 304 | 276 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 10 | 7 | |
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 704 | 574 | |
Level 3 | Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair value, withdrawal utilization rate, lower limit | [1] | 0.00% | |
Valuation technique | [1] | Stochastic cash flow model | |
Fair value, withdrawal utilization rate, upper limit | [1] | 98.00% | |
Derivative liabilities, fair value | [1] | $ 390 | 291 |
Fair value, lapse rate, lower limit | [1] | 0.00% | |
Fair value, lapse rate, upper limit | [1] | 15.00% | |
Fair value input, credit spreads, lower limit | [1] | 0.50% | |
Fair value input, credit spreads, upper limit | [1] | 0.85% | |
Fair value input, equity index volatility, lower limit | [1] | 20.00% | |
Fair value input, equity index volatility, upper limit | [1] | 25.00% | |
Fair value input, credit spreads, weighted-average | 0.75% | ||
Fair value input, equity index volatility, weighted-average | [1] | 21.00% | |
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Option budget method | ||
Derivative liabilities, fair value | $ 304 | 276 | |
Fair value, expected future interest credited, lower limit | 0.00% | ||
Fair value, expected future interest credited, upper limit | 3.00% | ||
Fair value, expected future interest credited, weighted-average | 2.00% | ||
Level 3 | Policyholder account balances | Indexed universal life embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Option budget method | ||
Derivative liabilities, fair value | $ 10 | $ 7 | |
Fair value, expected future interest credited, lower limit | 3.00% | ||
Fair value, expected future interest credited, upper limit | 9.00% | ||
Fair value, expected future interest credited, weighted-average | 5.00% | ||
Other invested assets | Level 3 | Credit default swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Discounted cash flows | ||
Derivative assets, fair value | $ 1 | ||
Fair value input, credit spreads | 0.06% | ||
Other invested assets | Level 3 | Equity index options | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Discounted cash flows | ||
Derivative assets, fair value | $ 15 | ||
Fair value input, equity index volatility, lower limit | 17.00% | ||
Fair value input, equity index volatility, upper limit | 26.00% | ||
Fair value input, equity index volatility, weighted-average | 23.00% | ||
Internal Models | Level 3 | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 2,151 | ||
Fair value input, credit spreads, lower limit | 0.79% | ||
Fair value input, credit spreads, upper limit | 6.26% | ||
Fair value input, credit spreads, weighted-average | 2.15% | ||
Internal Models | Level 3 | U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 435 | ||
Fair value input, credit spreads, lower limit | 1.00% | ||
Fair value input, credit spreads, upper limit | 2.39% | ||
Fair value input, credit spreads, weighted-average | 1.72% | ||
Internal Models | Level 3 | U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 168 | ||
Fair value input, credit spreads, lower limit | 1.32% | ||
Fair value input, credit spreads, upper limit | 3.19% | ||
Fair value input, credit spreads, weighted-average | 1.99% | ||
Internal Models | Level 3 | U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 593 | ||
Fair value input, credit spreads, lower limit | 1.05% | ||
Fair value input, credit spreads, upper limit | 6.26% | ||
Fair value input, credit spreads, weighted-average | 2.62% | ||
Internal Models | Level 3 | U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 95 | ||
Fair value input, credit spreads, lower limit | 1.55% | ||
Fair value input, credit spreads, upper limit | 4.01% | ||
Fair value input, credit spreads, weighted-average | 2.35% | ||
Internal Models | Level 3 | U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 34 | ||
Fair value input, credit spreads | 4.26% | ||
Internal Models | Level 3 | U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 65 | ||
Fair value input, credit spreads, lower limit | 2.10% | ||
Fair value input, credit spreads, upper limit | 2.53% | ||
Fair value input, credit spreads, weighted-average | 2.31% | ||
Internal Models | Level 3 | U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 170 | ||
Fair value input, credit spreads, lower limit | 0.85% | ||
Fair value input, credit spreads, upper limit | 4.27% | ||
Fair value input, credit spreads, weighted-average | 1.97% | ||
Internal Models | Level 3 | U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 307 | ||
Fair value input, credit spreads, lower limit | 0.85% | ||
Fair value input, credit spreads, upper limit | 3.11% | ||
Fair value input, credit spreads, weighted-average | 2.01% | ||
Internal Models | Level 3 | U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 98 | ||
Fair value input, credit spreads, lower limit | 0.79% | ||
Fair value input, credit spreads, upper limit | 3.34% | ||
Fair value input, credit spreads, weighted-average | 2.10% | ||
Internal Models | Level 3 | U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 186 | ||
Fair value input, credit spreads, lower limit | 0.88% | ||
Fair value input, credit spreads, upper limit | 3.14% | ||
Fair value input, credit spreads, weighted-average | 1.70% | ||
Internal Models | Level 3 | Non-U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 1,511 | ||
Fair value input, credit spreads, lower limit | 0.85% | ||
Fair value input, credit spreads, upper limit | 6.90% | ||
Fair value input, credit spreads, weighted-average | 1.99% | ||
Internal Models | Level 3 | Non-U.S. corporate | Utilities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 344 | ||
Fair value input, credit spreads, lower limit | 1.00% | ||
Fair value input, credit spreads, upper limit | 2.30% | ||
Fair value input, credit spreads, weighted-average | 1.51% | ||
Internal Models | Level 3 | Non-U.S. corporate | Energy | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 182 | ||
Fair value input, credit spreads, lower limit | 1.45% | ||
Fair value input, credit spreads, upper limit | 4.11% | ||
Fair value input, credit spreads, weighted-average | 2.35% | ||
Internal Models | Level 3 | Non-U.S. corporate | Finance and insurance | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 224 | ||
Fair value input, credit spreads, lower limit | 0.99% | ||
Fair value input, credit spreads, upper limit | 2.60% | ||
Fair value input, credit spreads, weighted-average | 1.61% | ||
Internal Models | Level 3 | Non-U.S. corporate | Consumer-non-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 144 | ||
Fair value input, credit spreads, lower limit | 0.85% | ||
Fair value input, credit spreads, upper limit | 2.80% | ||
Fair value input, credit spreads, weighted-average | 1.82% | ||
Internal Models | Level 3 | Non-U.S. corporate | Technology and communications | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 42 | ||
Fair value input, credit spreads, lower limit | 1.55% | ||
Fair value input, credit spreads, upper limit | 2.93% | ||
Fair value input, credit spreads, weighted-average | 2.27% | ||
Internal Models | Level 3 | Non-U.S. corporate | Industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 88 | ||
Fair value input, credit spreads, lower limit | 1.63% | ||
Fair value input, credit spreads, upper limit | 2.61% | ||
Fair value input, credit spreads, weighted-average | 2.24% | ||
Internal Models | Level 3 | Non-U.S. corporate | Capital goods | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 197 | ||
Fair value input, credit spreads, lower limit | 1.55% | ||
Fair value input, credit spreads, upper limit | 3.53% | ||
Fair value input, credit spreads, weighted-average | 2.24% | ||
Internal Models | Level 3 | Non-U.S. corporate | Consumer-cyclical | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 87 | ||
Fair value input, credit spreads, lower limit | 1.43% | ||
Fair value input, credit spreads, upper limit | 2.93% | ||
Fair value input, credit spreads, weighted-average | 2.16% | ||
Internal Models | Level 3 | Non-U.S. corporate | Transportation | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 146 | ||
Fair value input, credit spreads, lower limit | 1.26% | ||
Fair value input, credit spreads, upper limit | 2.93% | ||
Fair value input, credit spreads, weighted-average | 1.92% | ||
Internal Models | Level 3 | Non-U.S. corporate | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Internal models | ||
Fixed maturity securities available-for-sale, at fair value | $ 57 | ||
Fair value input, credit spreads, lower limit | 2.93% | ||
Fair value input, credit spreads, upper limit | 6.90% | ||
Fair value input, credit spreads, weighted-average | 4.13% | ||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Activity Impacting Deferred Acq
Activity Impacting Deferred Acquisition Costs (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Deferred Policy Acquisition Costs [Line Items] | |||
Unamortized beginning balance | $ 5,197 | $ 5,211 | |
Impact of foreign currency translation | (20) | (6) | |
Costs deferred | 226 | 282 | |
Amortization, net of interest accretion | (265) | (281) | |
Impairment | (455) | 0 | |
Unamortized ending balance | 4,683 | 5,206 | |
Accumulated effect of net unrealized investment (gains) losses | (246) | (336) | |
Ending balance | $ 4,437 | $ 4,870 | $ 4,849 |
Deferred Acquisition Costs - Ad
Deferred Acquisition Costs - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Deferred Policy Acquisition Costs [Line Items] | ||
DAC impairment related to life block transaction | $ 455 | $ 0 |
Life Block Transaction | Loss Recognition Testing | Term Life Insurance | ||
Deferred Policy Acquisition Costs [Line Items] | ||
DAC impairment related to life block transaction | $ 455 |
Liability for Policy and Cont83
Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | $ 8,065 | $ 7,937 | ||
Long-term Care Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 6,583 | 6,216 | $ 6,011 | $ 4,999 |
U.S. Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 953 | 1,180 | $ 1,239 | $ 1,482 |
International Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 303 | 308 | ||
Life Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 189 | 197 | ||
Fixed Annuities | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 19 | 21 | ||
Runoff | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | $ 18 | $ 15 |
Changes in Liability for Policy
Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 7,937 | |
Ending balance | 8,065 | |
Long-term Care Insurance | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 6,216 | $ 4,999 |
Less reinsurance recoverables | (1,926) | (1,707) |
Net beginning balance | 4,290 | 3,292 |
Current year | 1,241 | 1,085 |
Prior years | 6 | 653 |
Total incurred | 1,247 | 1,738 |
Current year | (75) | (64) |
Prior years | (1,050) | (968) |
Total paid | (1,125) | (1,032) |
Interest on liability for policy and contract claims | 172 | 140 |
Net ending balance | 4,584 | 4,138 |
Add reinsurance recoverables | 1,999 | 1,873 |
Ending balance | 6,583 | 6,011 |
U.S. Mortgage Insurance | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 1,180 | 1,482 |
Less reinsurance recoverables | (24) | (44) |
Net beginning balance | 1,156 | 1,438 |
Current year | 180 | 243 |
Prior years | (18) | 23 |
Total incurred | 162 | 266 |
Current year | (6) | (8) |
Prior years | (365) | (482) |
Total paid | (371) | (490) |
Net ending balance | 947 | 1,214 |
Add reinsurance recoverables | 6 | 25 |
Ending balance | $ 953 | $ 1,239 |
Liability for Policy and Cont85
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Settlement agreement | $ 16 | ||||
Long-term Care Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Prior year claim reserves | 6 | $ 653 | |||
Increase in reinsurance recoverable | $ 1,873 | 1,999 | 1,873 | $ 1,926 | $ 1,707 |
Long-term Care Insurance | Reserve Correction | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Increase (Decrease) in claim reserves | (61) | ||||
Long-term Care Insurance | Changes in Assumptions and Methodologies | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Increase (Decrease) in claim reserves | 604 | ||||
Increase in reinsurance recoverable | 73 | 73 | |||
U.S. Mortgage Insurance | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Prior year claim reserves | (18) | 23 | |||
Increase in reinsurance recoverable | 25 | $ 6 | 25 | $ 24 | $ 44 |
Settlement agreement | $ 53 | $ 53 |
Borrowings and Other Financin86
Borrowings and Other Financings - Long Term Borrowings (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Long-term borrowings | $ 4,601 | $ 4,639 | |
Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 4,100 | 4,151 |
Genworth Holdings | 8.625% Senior Notes, Due 2016 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 298 | 300 |
Genworth Holdings | 6.52% Senior Notes, Due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 598 | 600 |
Genworth Holdings | 7.70% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 397 | 400 |
Genworth Holdings | 7.20% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 389 | 399 |
Genworth Holdings | 7.625% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 724 | 758 |
Genworth Holdings | 4.90% Senior Notes, Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 399 | 399 |
Genworth Holdings | 4.80% Senior Notes, Due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 400 | 400 |
Genworth Holdings | 6.50% Senior Notes, Due 2034 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 297 | 297 |
Genworth Holdings | 6.15% Fixed-to-Floating Rate Junior Subordinated Notes, Due 2066 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 598 | 598 |
Genworth MI Canada Inc. | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 326 | 374 |
Genworth MI Canada Inc. | 5.68% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 206 | 236 |
Genworth MI Canada Inc. | 4.24% Senior Notes, Due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [2] | 120 | 138 |
Genworth Financial Mortgage Insurance Pty Limited | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [3] | 175 | 114 |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [3] | 35 | 114 |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [3] | $ 140 | $ 0 |
[1] | We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. | ||
[2] | Senior notes issued by our majority-owned subsidiary, Genworth MI Canada Inc. ("Genworth Canada"). | ||
[3] | Subordinated floating rate notes issued by our indirect wholly-owned subsidiary, Genworth Financial Mortgage Insurance Pty Limited. |
Borrowings and Other Financin87
Borrowings and Other Financings - Long Term Borrowings (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | ||||
8.625% Senior Notes, Due 2016 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 8.625% | 8.625% | 8.625% | ||
Debt instrument, maturity year | [1] | 2,016 | 2,016 | |||
6.52% Senior Notes, Due 2018 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 6.52% | 6.52% | 6.52% | ||
Debt instrument, maturity year | [1] | 2,018 | 2,018 | |||
7.70% Senior Notes, Due 2020 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 7.70% | 7.70% | 7.70% | ||
Debt instrument, maturity year | [1] | 2,020 | 2,020 | |||
7.20% Senior Notes, Due 2021 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 7.20% | 7.20% | 7.20% | ||
Debt instrument, maturity year | [1] | 2,021 | 2,021 | |||
7.625% Senior Notes, Due 2021 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 7.625% | 7.625% | 7.625% | ||
Debt instrument, maturity year | [1] | 2,021 | 2,021 | |||
4.90% Senior Notes, Due 2023 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 4.90% | 4.90% | 4.90% | ||
Debt instrument, maturity year | [1] | 2,023 | 2,023 | |||
4.80% Senior Notes, Due 2024 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 4.80% | 4.80% | 4.80% | ||
Debt instrument, maturity year | [1] | 2,024 | 2,024 | |||
6.50% Senior Notes, Due 2034 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 6.50% | 6.50% | 6.50% | ||
Debt instrument, maturity year | [1] | 2,034 | 2,034 | |||
6.15% Fixed-to-Floating Rate Junior Subordinated Notes, Due 2066 | Genworth Holdings | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [1] | 6.15% | 6.15% | 6.15% | ||
Debt instrument, maturity year | [1] | 2,066 | 2,066 | |||
5.68% Senior Notes, Due 2020 | Genworth MI Canada Inc. | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [2] | 5.68% | 5.68% | 5.68% | ||
Debt instrument, maturity year | [2] | 2,020 | 2,020 | |||
4.24% Senior Notes, Due 2024 | Genworth MI Canada Inc. | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | [2] | 4.24% | 4.24% | 4.24% | ||
Debt instrument, maturity year | [2] | 2,024 | 2,024 | |||
Floating Rate Junior Notes, Due 2021 | Genworth Financial Mortgage Insurance Pty Limited | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity year | 2,021 | 2,021 | [3] | 2,021 | [3] | |
Floating Rate Junior Notes, Due 2025 | Genworth Financial Mortgage Insurance Pty Limited | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity year | [3] | 2,025 | 2,025 | |||
Options Held [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Option to redeem | 100.00% | |||||
[1] | We have the option to redeem all or a portion of the senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. | |||||
[2] | Senior notes issued by our majority-owned subsidiary, Genworth MI Canada Inc. ("Genworth Canada"). | |||||
[3] | Subordinated floating rate notes issued by our indirect wholly-owned subsidiary, Genworth Financial Mortgage Insurance Pty Limited. |
Borrowings and Other Financin88
Borrowings and Other Financings - Additional Information (Detail) AUD in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 31, 2015AUD | Jul. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |||
Debt Instrument [Line Items] | |||||||
Repurchase agreements, fair value of securities pledged | $ 340 | $ 340 | $ 592 | ||||
Repurchase agreements, fair value of repurchase obligation | 330 | 330 | 553 | ||||
Securities lending activity, obligation to return collateral | $ 366 | $ 366 | $ 299 | ||||
Risks associated with repurchase agreements and securities lending programs | Our repurchase agreement and securities lending programs expose us to liquidity risk if we did not have enough cash or collateral readily available to return to the counterparty when required to do so under the agreements. We manage this risk by regularly monitoring our available sources of cash and collateral to ensure we can meet short-term liquidity demands under normal and stressed scenarios. We are also exposed to credit risk in the event of default of our counterparties or changes in collateral values. This risk is significantly reduced because our programs require over collateralization and collateral exposures are trued up on a daily basis. We manage this risk by using multiple counterparties and ensuring that changes in required collateral are monitored and adjusted daily.We also monitor the creditworthiness, including credit ratings, of our counterparties on a regular basis. | ||||||
Genworth Financial Mortgage Insurance Pty Limited | |||||||
Debt Instrument [Line Items] | |||||||
Early redemption fee | $ 2 | ||||||
Genworth Financial Mortgage Insurance Pty Limited | Subordinated Floating Rate Notes Due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, amount issued | AUD | AUD 200 | ||||||
Subordinated floating rate notes, margin | 3.50% | 3.50% | |||||
Debt instrument, maturity year | 2,025 | 2,025 | |||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding debt redeemed | AUD | AUD 90 | ||||||
Debt instrument, maturity year | 2,021 | 2,021 | [1] | 2,021 | [1] | ||
Genworth Holdings | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount of notes repurchased | $ 50 | $ 50 | |||||
Pre-tax gain (loss) on repurchase of senior notes | $ (1) | ||||||
United States | |||||||
Debt Instrument [Line Items] | |||||||
Cash and government securities collateral, minimum amount of the fair value of the applicable securities loaned | 102.00% | 102.00% | |||||
Securities lending activity, fair value of securities loaned | $ 353 | $ 353 | $ 288 | ||||
Securities lending activity, fair value of collateral held | 366 | 366 | 289 | ||||
Securities lending activity, obligation to return collateral | $ 366 | $ 366 | 299 | ||||
Canada | |||||||
Debt Instrument [Line Items] | |||||||
Cash and government securities collateral, minimum amount of the fair value of the applicable securities loaned | 105.00% | 105.00% | |||||
Securities lending activity, fair value of securities loaned | $ 335 | $ 335 | $ 371 | ||||
[1] | Subordinated floating rate notes issued by our indirect wholly-owned subsidiary, Genworth Financial Mortgage Insurance Pty Limited. |
Remaining Contractual Maturity
Remaining Contractual Maturity of Agreements (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 330 | $ 553 |
Securities lending | 366 | 299 |
Total repurchase agreements and securities lending | 696 | 852 |
U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 330 | 553 |
Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 5 | 2 |
Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 361 | 297 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 28 | 36 |
Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 47 | 32 |
Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 90 | 66 |
Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 196 | 163 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 366 | 299 |
Total repurchase agreements and securities lending | 366 | 299 |
Overnight and continuous | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Overnight and continuous | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 5 | 2 |
Overnight and continuous | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 361 | 297 |
Overnight and continuous | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 28 | 36 |
Overnight and continuous | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 47 | 32 |
Overnight and continuous | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 90 | 66 |
Overnight and continuous | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 196 | 163 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Total repurchase agreements and securities lending | 103 | 129 |
Up to 30 days | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 103 | 129 |
Up to 30 days | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Total repurchase agreements and securities lending | 70 | 123 |
31 - 90 days | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 70 | 123 |
31 - 90 days | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Total repurchase agreements and securities lending | 157 | 301 |
Greater than 90 days | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 157 | 301 |
Greater than 90 days | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | $ 0 | $ 0 |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Examination [Line Items] | ||||
Pre-tax income (loss) | $ (351) | $ (980) | $ 188 | $ (375) |
Statutory U.S. federal income tax rate | (123) | (343) | 66 | (131) |
State income tax, net of federal income tax effect | (1) | (3) | 3 | 3 |
Benefit on tax favored investments | (9) | (1) | (14) | (3) |
Effect of foreign operations | (3) | (5) | (33) | (46) |
Non-deductible expenses | 0 | 0 | 1 | 1 |
Interest on uncertain tax positions | 0 | 0 | 1 | 0 |
Valuation allowance | 0 | 0 | 0 | (7) |
Non-deductible goodwill | 0 | 163 | 0 | 163 |
Stock-based compensation | 2 | 0 | 4 | 8 |
Other, net | 0 | 2 | (1) | (4) |
Total provision (benefit) for income taxes | $ (134) | $ (187) | $ 27 | $ (16) |
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income tax, net of federal income tax effect | 0.40% | 0.30% | 1.40% | (0.80%) |
Benefit on tax favored investments | 2.50% | 0.10% | (7.20%) | 0.80% |
Effect of foreign operations | 0.80% | 0.50% | (17.50%) | 12.30% |
Non-deductible expenses | 0.00% | 0.00% | 0.60% | (0.30%) |
Interest on uncertain tax positions | (0.20%) | 0.00% | 0.30% | 0.00% |
Valuation allowance | 0.00% | 0.00% | 0.00% | 1.80% |
Non-deductible goodwill | 0.10% | (16.60%) | 0.00% | (43.40%) |
Stock-based compensation | (0.50%) | 0.00% | 2.00% | (2.10%) |
Other, net | 0.00% | (0.20%) | (0.30%) | 1.00% |
Effective rate | 38.10% | 19.10% | 14.30% | 4.30% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | Dec. 31, 2014 | [1] | ||
Segment Reporting Information [Line Items] | |||||||||
Number of operating segments | Segment | 4 | ||||||||
Expenses related to restructuring, net | $ 0 | $ (2) | $ 0 | $ (2) | $ 0 | ||||
Goodwill impairment, net | 0 | 517 | 0 | 517 | |||||
Gains (losses) on early extinguishment of debt, net | (2) | 0 | (2) | (2) | |||||
Gains (losses) from life block transactions, net | (296) | 0 | (296) | 0 | |||||
Tax Impact From Potential Business Portfolio Changes | 7 | 0 | $ 7 | $ 0 | |||||
Assumed tax rate on adjustments to net operating income | 35.00% | ||||||||
Life Block Transaction | Term Life Insurance | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gains (losses) from life block transactions, net | (296) | ||||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2021 | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gains (losses) on early extinguishment of debt, net | $ (1) | ||||||||
Debt instrument, maturity year | 2,021 | 2,021 | [1] | 2,021 | |||||
Genworth Holdings | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gains (losses) on early extinguishment of debt, net | $ (1) | ||||||||
Aggregate principal amount of notes repurchased | $ 50 | $ 50 | |||||||
Genworth Canada | 4.59% senior notes due December 2015 | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Gains (losses) on early extinguishment of debt, net | $ (2) | ||||||||
Long-term Care Insurance | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill impairment, net | 167 | ||||||||
Life Insurance | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Goodwill impairment, net | $ 350 | ||||||||
[1] | Subordinated floating rate notes issued by our indirect wholly-owned subsidiary, Genworth Financial Mortgage Insurance Pty Limited. |
Summary of Revenues for Segment
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,100 | $ 2,190 | $ 6,392 | $ 6,500 |
Segment, Continuing Operations | Canada Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 124 | 163 | 429 | 511 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 122 | 136 | 360 | 401 |
Segment, Continuing Operations | Other Countries Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7 | 10 | 20 | 25 |
Segment, Continuing Operations | International Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 253 | 309 | 809 | 937 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 161 | 165 | 497 | 476 |
Segment, Continuing Operations | Long-term Care Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 949 | 879 | 2,769 | 2,607 |
Segment, Continuing Operations | Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 455 | 510 | 1,419 | 1,494 |
Segment, Continuing Operations | Fixed Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 221 | 277 | 683 | 791 |
Segment, Continuing Operations | U.S. Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,625 | 1,666 | 4,871 | 4,892 |
Segment, Continuing Operations | Runoff | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 53 | 53 | 209 | 215 |
Segment, Continuing Operations | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 8 | $ (3) | $ 6 | $ (20) |
Summary of Net Operating Income
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | $ 64 | $ (323) | $ 337 | $ 17 | |
Net investment gains (losses), net | (22) | (10) | (19) | (1) | |
Goodwill impairment, net | 0 | (517) | 0 | (517) | |
Gains (losses) on early extinguishment of debt, net | (2) | 0 | (2) | (2) | |
Gains (losses) from life block transactions, net | (296) | 0 | (296) | 0 | |
Expenses related to restructuring, net | 0 | $ (2) | 0 | (2) | 0 |
Tax impact from potential business portfolio changes | (7) | 0 | (7) | 0 | |
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | (263) | (850) | 11 | (503) | |
Net income attributable to noncontrolling interests | 46 | 57 | 150 | 144 | |
Income (loss) from continuing operations | (217) | (793) | 161 | (359) | |
Income (loss) from discontinued operations, net of taxes | (21) | 6 | (334) | 19 | |
Net loss | (238) | (787) | (173) | (340) | |
Less: net income attributable to noncontrolling interests | 46 | 57 | 150 | 144 | |
Net loss available to Genworth Financial, Inc.'s common stockholders | (284) | (844) | (323) | (484) | |
Long-term Care Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill impairment, net | (167) | ||||
Life Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill impairment, net | (350) | ||||
Segment, Continuing Operations | Canada Mortgage Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | 38 | 46 | 115 | 134 | |
Segment, Continuing Operations | Australia Mortgage Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | 21 | 48 | 80 | 167 | |
Segment, Continuing Operations | Other Countries Mortgage Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | (5) | (7) | (16) | (18) | |
Segment, Continuing Operations | International Mortgage Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | 54 | 87 | 179 | 283 | |
Segment, Continuing Operations | U.S. Mortgage Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | 37 | (2) | 138 | 70 | |
Segment, Continuing Operations | Long-term Care Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | (10) | (361) | 10 | (309) | |
Segment, Continuing Operations | Life Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | 31 | 13 | 93 | 73 | |
Segment, Continuing Operations | Fixed Annuities | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | 19 | 26 | 75 | 77 | |
Segment, Continuing Operations | U.S. Life Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | 40 | (322) | 178 | (159) | |
Segment, Continuing Operations | Runoff | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | (4) | 5 | 16 | 32 | |
Segment, Continuing Operations | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Net operating income (loss) | $ (63) | $ (91) | $ (174) | $ (209) |
Summary of Total Assets for Seg
Summary of Total Assets for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Assets held for sale related to discontinued operations | $ 1,206 | $ 1,809 |
Total assets | 108,222 | 111,358 |
Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 107,016 | 109,549 |
Segment, Continuing Operations | International Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 7,773 | 8,815 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,282 | 2,324 |
Segment, Continuing Operations | U.S. Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 82,345 | 82,906 |
Segment, Continuing Operations | Runoff | ||
Segment Reporting Information [Line Items] | ||
Total assets | 11,762 | 12,971 |
Segment, Continuing Operations | Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,854 | $ 2,533 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 1 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Legal accrual | $ 16,000,000 | ||
Commitment to fund limited partnership investments | 87,000,000 | ||
Commitment to fund U.S. commercial mortgage loan investments | 106,000,000 | ||
Commitment to fund private placement investments | $ 61,000,000 | ||
Minnesota Department of Commerce | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Civil penalty payable | $ (90,000) | ||
Agreement period to not enter into any new and existing captive reinsurance transactions after the date of the consent order | 10 years | ||
U.S. Mortgage Insurance | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Legal accrual | $ 53,000,000 |
Component of Changes In Accumul
Component of Changes In Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Net unrealized investment gains (losses), beginning of period | [1] | $ 1,628 | $ 2,128 | $ 2,453 | $ 926 |
Net unrealized investment gains (losses), OCI before reclassifications | [1] | 79 | (63) | (727) | 1,186 |
Net unrealized investment gains (losses), amounts reclassified from (to) OCI | [1] | 8 | (4) | (1) | (7) |
Net unrealized investment gains (losses), current period OCI | [1] | 87 | (67) | (728) | 1,179 |
Net unrealized investment gains (losses), before noncontrolling interest | [1] | 1,715 | 2,061 | 1,725 | 2,105 |
Less: Net unrealized investment gains (losses), change in OCI attributable to noncontrolling interests | [1] | (16) | (6) | (6) | 38 |
Net unrealized investment gains (losses), end of period | [1] | 1,731 | 2,067 | 1,731 | 2,067 |
Derivatives qualifying as effective accounting hedges, beginning of period | [2] | 1,913 | 1,652 | 2,070 | 1,319 |
Derivatives qualifying as hedges, OCI before reclassifications | [2] | 229 | 110 | 99 | 457 |
Derivatives qualifying as hedges, amounts reclassified from (to) OCI | [2] | (12) | (9) | (39) | (23) |
Derivatives qualifying as hedges, current period OCI | [2] | 217 | 101 | 60 | 434 |
Derivatives qualifying as hedges, before noncontrolling interests | [2] | 2,130 | 1,753 | 2,130 | 1,753 |
Less: Derivatives qualifying as hedges, change in OCI attributable to noncontrolling interests | [2] | 0 | 0 | 0 | 0 |
Derivatives qualifying as effective accounting hedges, end of period | [2] | 2,130 | 1,753 | 2,130 | 1,753 |
Foreign currency translation and other adjustments, beginning balances | (232) | 381 | (77) | 297 | |
Foreign currency translation and other adjustments, OCI before reclassifications | (302) | (379) | (619) | (252) | |
Foreign currency translation and other adjustments, amounts reclassified from (to) OCI | 0 | 0 | 0 | 0 | |
Foreign currency translation and other adjustments, current period OCI | (302) | (379) | (619) | (252) | |
Foreign currency translation and other adjustments, before noncontrolling interests | (534) | 2 | (696) | 45 | |
Less: Foreign currency translation and other adjustments, change in OCI attributable to noncontrolling interests | (151) | (112) | (313) | (69) | |
Foreign currency translation and other adjustments, ending balances | (383) | 114 | (383) | 114 | |
Accumulated other comprehensive income (loss), beginning balances | 3,309 | 4,161 | 4,446 | 2,542 | |
OCI before reclassifications | 6 | (332) | (1,247) | 1,391 | |
Amounts reclassified from (to) OCI | (4) | (13) | (40) | (30) | |
Total other comprehensive income (loss) | 2 | (345) | (1,287) | 1,361 | |
Accumulated other comprehensive income (loss), before noncontrolling interests | 3,311 | 3,816 | 3,159 | 3,903 | |
Less: change in OCI attributable to noncontrolling interests | (167) | (118) | (319) | (31) | |
Accumulated other comprehensive income (loss), ending balances | $ 3,478 | $ 3,934 | $ 3,478 | $ 3,934 | |
[1] | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. | ||||
[2] | See note 5 for additional information. |
Changes In Accumulated Other 97
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | ||
Unrecognized postretirement benefit obligation, current period OCI | $ 31 | $ 6 |
Unrecognized postretirement benefit obligation, current period OCI, tax | 14 | 1 |
Foreign currency translation and other adjustments, current period OCI, tax | $ (93) | $ 35 |
Reclassifications In (Out) of A
Reclassifications In (Out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Net unrealized investment gains (losses), amounts reclassified from (to) OCI, provision for income taxes | $ (5) | $ 2 | $ 0 | $ 4 | |
Net unrealized investment gains (losses), amounts reclassified from (to) OCI | [1] | 8 | (4) | (1) | (7) |
Derivatives qualifying as hedges, amounts reclassified from (to) OCI | [2] | (12) | (9) | (39) | (23) |
Provision for income taxes | |||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Net unrealized investment gains (losses), amounts reclassified from (to) OCI, provision for income taxes | (5) | 2 | 0 | 4 | |
Derivatives qualifying as hedges, amounts reclassified from (to) OCI | 6 | 5 | 21 | 12 | |
Interest Rate Swaps Hedging Assets | Net Investment Income | |||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Derivatives qualifying as hedges, amounts reclassified from (to) OCI | (22) | (17) | (61) | (45) | |
Interest Rate Swaps Hedging Liabilities | Interest Expense | |||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Derivatives qualifying as hedges, amounts reclassified from (to) OCI | 0 | 0 | 0 | (1) | |
Inflation indexed swaps | Net Investment Income | |||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Derivatives qualifying as hedges, amounts reclassified from (to) OCI | 5 | 3 | 2 | 11 | |
Forward bond purchase commitments | Net Investment Income | |||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Derivatives qualifying as hedges, amounts reclassified from (to) OCI | (1) | 0 | (1) | 0 | |
Unrealized gains (losses) on investment | Net Investment Gains (Losses) | |||||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Net unrealized investment gains (losses), amounts reclassified from (to) OCI, before tax | [3] | $ 13 | $ (6) | $ (1) | $ (11) |
[1] | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. | ||||
[2] | See note 5 for additional information. | ||||
[3] | Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) CAD in Millions, $ in Millions | May. 15, 2015USD ($) | May. 11, 2015AUD / sharesshares | May. 15, 2014AUD / sharesshares | May. 31, 2015USD ($)shares | May. 31, 2015CADshares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 21, 2014 |
Noncontrolling Interest [Line Items] | ||||||||||
Proceeds from sale of subsidiary shares to noncontrolling interests | $ 226 | $ 517 | ||||||||
Genworth Canada | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Repurchase of subsidiary shares through issuer bid, number of shares | shares | 1,400,000 | 1,400,000 | ||||||||
Common shares repurchased, value | CAD | CAD 50 | |||||||||
Shares authorized to be repurchased over the next 12 months | shares | 4,700,000 | 4,700,000 | ||||||||
Beneficial ownership percentage of ordinary shares | 57.30% | 57.30% | ||||||||
Amount received as a result of participation in Issuer Bid | $ 23 | |||||||||
Genworth Australia | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Beneficial ownership percentage of ordinary shares | 52.00% | 66.20% | 66.20% | |||||||
Shares sold | shares | 92,300,000 | 220,000,000 | ||||||||
Price per ordinary share | AUD / shares | AUD 3.08 | AUD 2.65 | ||||||||
Gross proceeds of the Offer | $ 541 | |||||||||
Fees and expenses in connection with the Offer | $ 27 | $ 3 | ||||||||
Proceeds from sale of subsidiary shares to noncontrolling interests | $ 226 |
Changes in Ownership Interests
Changes in Ownership Interests and Effect on Stockholders' Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Net loss available to Genworth Financial, Inc.'s common stockholders | $ (284) | $ (844) | $ (323) | $ (484) |
Transfers to noncontrolling interests: | ||||
Decrease in Genworth Financial, Inc.'s additional paid-in capital for initial sale of Genworth Australia to noncontrolling interests | 0 | 0 | 0 | (145) |
Decrease in Genworth Financial, Inc.'s additional paid-in capital for additional sale of Genworth Australia to noncontrolling interests | 0 | 0 | (65) | 0 |
Net transfers to noncontrolling interests | 0 | 0 | (65) | (145) |
Change from net loss available to Genworth Financial, Inc.'s common stockholders and transfers to noncontrolling interests | $ (284) | $ (844) | $ (388) | $ (629) |
Assets and Liabilities Associat
Assets and Liabilities Associated with Discontinued Operations (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Assets | |||
Fixed maturity securities available-for-sale, at fair value | $ 60,851 | $ 61,276 | |
Equity securities available-for-sale, at fair value | 273 | 275 | |
Other invested assets | 2,773 | 2,244 | |
Total investments | 72,184 | 72,008 | |
Cash and cash equivalents | 142 | $ 193 | |
Accrued investment income | 685 | 664 | |
Deferred acquisition costs | 4,437 | 4,849 | $ 4,870 |
Reinsurance recoverable | 17,276 | 17,314 | |
Total assets held for sale related to discontinued operations | 1,206 | 1,809 | |
Liabilities | |||
Policyholder account balances | 26,000 | 26,032 | |
Liability for policy and contract claims | 8,065 | 7,937 | |
Unearned premiums | 3,340 | 3,547 | |
Liabilities held for sale related to discontinued operations | 854 | 928 | |
Assets Held For Sale Related To Discontinued Operations | Lifestyle Protection Insurance | |||
Assets | |||
Fixed maturity securities available-for-sale, at fair value | 1,117 | 1,171 | |
Equity securities available-for-sale, at fair value | 6 | 7 | |
Other invested assets | 23 | 52 | |
Total investments | 1,146 | 1,230 | |
Cash and cash equivalents | 142 | 202 | |
Accrued investment income | 22 | 21 | |
Deferred acquisition costs | 168 | 193 | |
Intangible assets | 22 | 22 | |
Reinsurance recoverable | 36 | 32 | |
Other assets | 121 | 109 | |
Assets held for sale related to discontinued operations | 1,657 | 1,809 | |
Fair value less pension settlement costs and closing costs impairment | (451) | 0 | |
Total assets held for sale related to discontinued operations | 1,206 | 1,809 | |
Liabilities | |||
Policyholder account balances | 9 | 11 | |
Liability for policy and contract claims | 108 | 106 | |
Unearned premiums | 412 | 439 | |
Other liabilities | 296 | 322 | |
Deferred tax liability | 29 | 50 | |
Liabilities held for sale related to discontinued operations | $ 854 | $ 928 |
Summary of Operating Results of
Summary of Operating Results of Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | |||||
Premiums | $ 1,145 | $ 1,210 | $ 3,422 | $ 3,486 | |
Net investment income | 783 | 778 | 2,357 | 2,345 | |
Net investment gains (losses) | (51) | (27) | (59) | (11) | |
Insurance and investment product fees and other | 223 | 229 | 672 | 680 | |
Benefits and expenses: | |||||
Benefits and other changes in policy reserves | 1,290 | 1,934 | 3,714 | 4,282 | |
Total benefits and expenses | 2,451 | 3,170 | 6,204 | 6,875 | |
Income (loss) from discontinued operations, net of taxes | (21) | 6 | (334) | 19 | |
Assets Held For Sale Related To Discontinued Operations | Lifestyle Protection Insurance | |||||
Revenues: | |||||
Premiums | 169 | 184 | 517 | 557 | |
Net investment income | 21 | 28 | 63 | 78 | |
Net investment gains (losses) | 0 | 1 | 0 | 2 | |
Insurance and investment product fees and other | 0 | 1 | 0 | 4 | |
Total revenues | 190 | 214 | 580 | 641 | |
Benefits and expenses: | |||||
Benefits and other changes in policy reserves | 46 | 53 | 150 | 155 | |
Acquisition and operating expenses, net of deferrals | 105 | 113 | 323 | 340 | |
Amortization of deferred acquisition costs and intangibles | 21 | 30 | 71 | 90 | |
Interest expense | 7 | 10 | 22 | 34 | |
Total benefits and expenses | 179 | 206 | 566 | 619 | |
Income (loss) before income taxes and loss on sale | 11 | 8 | 14 | 22 | |
Provision for income taxes | 20 | 2 | 30 | 3 | |
Income (loss) before loss on sale | (9) | 6 | (16) | 19 | |
Loss on sale, net of taxes | (12) | $ (306) | 0 | (318) | 0 |
Income (loss) from discontinued operations, net of taxes | $ (21) | $ 6 | $ (334) | $ 19 |
Sale of Businesses - Additional
Sale of Businesses - Additional Information (Detail) - Assets Held For Sale Related To Discontinued Operations € in Millions, $ in Millions | Oct. 27, 2015USD ($) | Jul. 22, 2015USD ($) | Jul. 22, 2015EUR (€) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Lifestyle Protection Insurance | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||||
(Loss) on Disposal of Discontinued Operation, Net of Tax | $ (12) | $ (306) | $ 0 | $ (318) | $ 0 | |||
Tax Benefit from Provision for Loss on Disposal | 152 | |||||||
Increase in estimated loss on sale of discontinued operations | (12) | |||||||
Fair value less pension settlement costs and closing costs impairment | 451 | |||||||
Pension settlement costs and closing costs | $ 124 | |||||||
Expected sale price | $ 490 | € 475 | ||||||
Expected net proceeds from sale of business, discontinued operations | $ 400 | |||||||
European Mortgage Insurance Business | Subsequent Event | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||||
Expected net proceeds from sale of business, discontinued operations | $ 55 | |||||||
Loss on disposal not discontinued operations, net of tax | $ (140) |
Condensed Consolidating Fina104
Condensed Consolidating Financial Information - Additional Information (Detail) - USD ($) $ in Billions | Sep. 30, 2015 | Apr. 01, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||
Amount of dividend our subsidiaries could pay in 2015 without obtaining regulatory approval | $ 0.5 | |
Genworth Holdings | ||
Condensed Financial Statements, Captions [Line Items] | ||
Percentage of subsidiary equity ownership | 100.00% | 100.00% |
Genworth Financial's Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Restricted net assets | $ 13.1 | |
Genworth Holdings' Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Restricted net assets | $ 13.2 |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | $ 60,851 | $ 61,276 | ||||
Equity securities available-for-sale, at fair value | 273 | 275 | ||||
Commercial mortgage loans | 6,133 | 6,100 | ||||
Restricted commercial mortgage loans related to securitization entities | 175 | 201 | ||||
Policy loans | 1,567 | 1,501 | ||||
Other invested assets | 2,773 | 2,244 | ||||
Restricted other invested assets related to securitization entities, at fair value | 412 | 411 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Total investments | 72,184 | 72,008 | ||||
Cash and cash equivalents | 3,666 | 4,716 | $ 3,284 | |||
Accrued investment income | 685 | 664 | ||||
Deferred acquisition costs | 4,437 | 4,849 | 4,870 | |||
Intangible assets | 284 | 250 | ||||
Goodwill | 14 | 16 | ||||
Reinsurance recoverable | 17,276 | 17,314 | ||||
Other assets | 577 | 524 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Separate account assets | 7,893 | 9,208 | ||||
Assets held for sale related to discontinued operations | 1,206 | 1,809 | ||||
Total assets | 108,222 | 111,358 | ||||
Liabilities and stockholders' equity | ||||||
Future policy benefits | 36,472 | 35,915 | ||||
Policyholder account balances | 26,000 | 26,032 | ||||
Liability for policy and contract claims | 8,065 | 7,937 | ||||
Unearned premiums | 3,340 | 3,547 | ||||
Other liabilities | 3,241 | 3,282 | ||||
Intercompany notes payable | 0 | 0 | ||||
Borrowings related to securitization entities | 188 | 219 | ||||
Non-recourse funding obligations | 1,951 | 1,996 | ||||
Long-term borrowings | 4,601 | 4,639 | ||||
Deferred tax liability | 201 | 858 | ||||
Separate account liabilities | 7,893 | 9,208 | ||||
Liabilities held for sale related to discontinued operations | 854 | 928 | ||||
Total liabilities | 92,806 | 94,561 | ||||
Stockholders' equity: | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 11,944 | 11,997 | ||||
Accumulated other comprehensive income (loss) | 3,478 | $ 3,309 | 4,446 | 3,934 | $ 4,161 | $ 2,542 |
Retained earnings | 856 | 1,179 | ||||
Treasury stock, at cost | (2,700) | (2,700) | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 13,579 | 14,923 | ||||
Noncontrolling interests | 1,837 | 1,874 | ||||
Total stockholders' equity | 15,416 | 16,797 | 17,121 | $ 15,620 | ||
Total liabilities and stockholders' equity | 108,222 | 111,358 | ||||
Parent Guarantor | ||||||
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | 0 | 0 | ||||
Equity securities available-for-sale, at fair value | 0 | 0 | ||||
Commercial mortgage loans | 0 | 0 | ||||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 0 | 0 | ||||
Restricted other invested assets related to securitization entities, at fair value | 0 | 0 | ||||
Investments in subsidiaries | 13,563 | 14,895 | ||||
Total investments | 13,563 | 14,895 | ||||
Cash and cash equivalents | 0 | 0 | 0 | |||
Accrued investment income | 0 | 0 | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | 2 | 2 | ||||
Intercompany notes receivable | 2 | 9 | ||||
Separate account assets | 0 | 0 | ||||
Assets held for sale related to discontinued operations | 0 | 0 | ||||
Total assets | 13,567 | 14,906 | ||||
Liabilities and stockholders' equity | ||||||
Future policy benefits | 0 | 0 | ||||
Policyholder account balances | 0 | 0 | ||||
Liability for policy and contract claims | 0 | 0 | ||||
Unearned premiums | 0 | 0 | ||||
Other liabilities | 5 | 3 | ||||
Intercompany notes payable | 0 | 0 | ||||
Borrowings related to securitization entities | 0 | 0 | ||||
Non-recourse funding obligations | 0 | 0 | ||||
Long-term borrowings | 0 | 0 | ||||
Deferred tax liability | (23) | (20) | ||||
Separate account liabilities | 0 | 0 | ||||
Liabilities held for sale related to discontinued operations | 6 | 0 | ||||
Total liabilities | (12) | (17) | ||||
Stockholders' equity: | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 11,944 | 11,997 | ||||
Accumulated other comprehensive income (loss) | 3,478 | 4,446 | ||||
Retained earnings | 856 | 1,179 | ||||
Treasury stock, at cost | (2,700) | (2,700) | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 13,579 | 14,923 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total stockholders' equity | 13,579 | 14,923 | ||||
Total liabilities and stockholders' equity | 13,567 | 14,906 | ||||
Issuer | ||||||
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | 150 | 150 | ||||
Equity securities available-for-sale, at fair value | 0 | 0 | ||||
Commercial mortgage loans | 0 | 0 | ||||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | 124 | 14 | ||||
Restricted other invested assets related to securitization entities, at fair value | 0 | 0 | ||||
Investments in subsidiaries | 13,610 | 15,003 | ||||
Total investments | 13,884 | 15,167 | ||||
Cash and cash equivalents | 734 | 953 | 988 | |||
Accrued investment income | 0 | 0 | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | 216 | 207 | ||||
Intercompany notes receivable | 291 | 267 | ||||
Separate account assets | 0 | 0 | ||||
Assets held for sale related to discontinued operations | 0 | 0 | ||||
Total assets | 15,125 | 16,594 | ||||
Liabilities and stockholders' equity | ||||||
Future policy benefits | 0 | 0 | ||||
Policyholder account balances | 0 | 0 | ||||
Liability for policy and contract claims | 0 | 0 | ||||
Unearned premiums | 0 | 0 | ||||
Other liabilities | 260 | 251 | ||||
Intercompany notes payable | 602 | 604 | ||||
Borrowings related to securitization entities | 0 | 0 | ||||
Non-recourse funding obligations | 0 | 0 | ||||
Long-term borrowings | 4,100 | 4,151 | ||||
Deferred tax liability | (1,077) | (970) | ||||
Separate account liabilities | 0 | 0 | ||||
Liabilities held for sale related to discontinued operations | 0 | 0 | ||||
Total liabilities | 3,885 | 4,036 | ||||
Stockholders' equity: | ||||||
Common stock | 0 | 0 | ||||
Additional paid-in capital | 9,098 | 9,162 | ||||
Accumulated other comprehensive income (loss) | 3,560 | 4,449 | ||||
Retained earnings | (1,418) | (1,053) | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 11,240 | 12,558 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total stockholders' equity | 11,240 | 12,558 | ||||
Total liabilities and stockholders' equity | 15,125 | 16,594 | ||||
All Other Subsidiaries | ||||||
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | 60,901 | 61,326 | ||||
Equity securities available-for-sale, at fair value | 273 | 275 | ||||
Commercial mortgage loans | 6,133 | 6,100 | ||||
Restricted commercial mortgage loans related to securitization entities | 175 | 201 | ||||
Policy loans | 1,567 | 1,501 | ||||
Other invested assets | 2,652 | 2,235 | ||||
Restricted other invested assets related to securitization entities, at fair value | 412 | 411 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Total investments | 72,113 | 72,049 | ||||
Cash and cash equivalents | 2,932 | 3,763 | 2,296 | |||
Accrued investment income | 685 | 668 | ||||
Deferred acquisition costs | 4,437 | 4,849 | ||||
Intangible assets | 284 | 250 | ||||
Goodwill | 14 | 16 | ||||
Reinsurance recoverable | 17,276 | 17,314 | ||||
Other assets | 361 | 316 | ||||
Intercompany notes receivable | 399 | 395 | ||||
Separate account assets | 7,893 | 9,208 | ||||
Assets held for sale related to discontinued operations | 1,206 | 1,809 | ||||
Total assets | 107,600 | 110,637 | ||||
Liabilities and stockholders' equity | ||||||
Future policy benefits | 36,472 | 35,915 | ||||
Policyholder account balances | 26,000 | 26,032 | ||||
Liability for policy and contract claims | 8,065 | 7,937 | ||||
Unearned premiums | 3,340 | 3,547 | ||||
Other liabilities | 2,982 | 3,039 | ||||
Intercompany notes payable | 290 | 267 | ||||
Borrowings related to securitization entities | 188 | 219 | ||||
Non-recourse funding obligations | 1,951 | 1,996 | ||||
Long-term borrowings | 501 | 488 | ||||
Deferred tax liability | 1,301 | 1,848 | ||||
Separate account liabilities | 7,893 | 9,208 | ||||
Liabilities held for sale related to discontinued operations | 848 | 928 | ||||
Total liabilities | 89,831 | 91,424 | ||||
Stockholders' equity: | ||||||
Common stock | 0 | 0 | ||||
Additional paid-in capital | 16,956 | 17,080 | ||||
Accumulated other comprehensive income (loss) | 3,498 | 4,459 | ||||
Retained earnings | (4,827) | (4,205) | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 15,627 | 17,334 | ||||
Noncontrolling interests | 2,142 | 1,879 | ||||
Total stockholders' equity | 17,769 | 19,213 | ||||
Total liabilities and stockholders' equity | 107,600 | 110,637 | ||||
Eliminations | ||||||
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | (200) | (200) | ||||
Equity securities available-for-sale, at fair value | 0 | 0 | ||||
Commercial mortgage loans | 0 | 0 | ||||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||||
Policy loans | 0 | 0 | ||||
Other invested assets | (3) | (5) | ||||
Restricted other invested assets related to securitization entities, at fair value | 0 | 0 | ||||
Investments in subsidiaries | (27,173) | (29,898) | ||||
Total investments | (27,376) | (30,103) | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | |||
Accrued investment income | 0 | (4) | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | (2) | (1) | ||||
Intercompany notes receivable | (692) | (671) | ||||
Separate account assets | 0 | 0 | ||||
Assets held for sale related to discontinued operations | 0 | 0 | ||||
Total assets | (28,070) | (30,779) | ||||
Liabilities and stockholders' equity | ||||||
Future policy benefits | 0 | 0 | ||||
Policyholder account balances | 0 | 0 | ||||
Liability for policy and contract claims | 0 | 0 | ||||
Unearned premiums | 0 | 0 | ||||
Other liabilities | (6) | (11) | ||||
Intercompany notes payable | (892) | (871) | ||||
Borrowings related to securitization entities | 0 | 0 | ||||
Non-recourse funding obligations | 0 | 0 | ||||
Long-term borrowings | 0 | 0 | ||||
Deferred tax liability | 0 | 0 | ||||
Separate account liabilities | 0 | 0 | ||||
Liabilities held for sale related to discontinued operations | 0 | 0 | ||||
Total liabilities | (898) | (882) | ||||
Stockholders' equity: | ||||||
Common stock | 0 | 0 | ||||
Additional paid-in capital | (26,054) | (26,242) | ||||
Accumulated other comprehensive income (loss) | (7,058) | (8,908) | ||||
Retained earnings | 6,245 | 5,258 | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | (26,867) | (29,892) | ||||
Noncontrolling interests | (305) | (5) | ||||
Total stockholders' equity | (27,172) | (29,897) | ||||
Total liabilities and stockholders' equity | $ (28,070) | $ (30,779) |
Condensed Consolidating Income
Condensed Consolidating Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Premiums | $ 1,145 | $ 1,210 | $ 3,422 | $ 3,486 |
Net investment income | 783 | 778 | 2,357 | 2,345 |
Net investment gains (losses) | (51) | (27) | (59) | (11) |
Insurance and investment product fees and other | 223 | 229 | 672 | 680 |
Total revenues | 2,100 | 2,190 | 6,392 | 6,500 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,290 | 1,934 | 3,714 | 4,282 |
Interest credited | 179 | 185 | 540 | 552 |
Acquisition and operating expenses, net of deferrals | 314 | 284 | 876 | 839 |
Amortization of deferred acquisition costs and intangibles | 563 | 113 | 759 | 325 |
Goodwill impairment | 0 | 550 | 0 | 550 |
Interest expense | 105 | 104 | 315 | 327 |
Total benefits and expenses | 2,451 | 3,170 | 6,204 | 6,875 |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | (351) | (980) | 188 | (375) |
Provision (benefit) for income taxes | (134) | (187) | 27 | (16) |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | (217) | (793) | 161 | (359) |
Income (loss) from discontinued operations, net of taxes | (21) | 6 | (334) | 19 |
Net income (loss) | (238) | (787) | (173) | (340) |
Less: net income attributable to noncontrolling interests | 46 | 57 | 150 | 144 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (284) | (844) | (323) | (484) |
Parent Guarantor | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | (1) | (1) | (2) | (1) |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Insurance and investment product fees and other | 0 | 0 | 0 | 0 |
Total revenues | (1) | (1) | (2) | (1) |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | 0 |
Interest credited | 0 | 0 | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 9 | 5 | 23 | 15 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Goodwill impairment | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 |
Total benefits and expenses | 9 | 5 | 23 | 15 |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | (10) | (6) | (25) | (16) |
Provision (benefit) for income taxes | (40) | 8 | (7) | 13 |
Equity in income (loss) of subsidiaries | (314) | (830) | (299) | (455) |
Income (loss) from continuing operations | (284) | (844) | (317) | (484) |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | (6) | 0 |
Net income (loss) | (284) | (844) | (323) | (484) |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (284) | (844) | (323) | (484) |
Issuer | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 1 | 0 |
Net investment gains (losses) | 21 | 9 | 37 | 0 |
Insurance and investment product fees and other | (10) | 0 | (30) | (3) |
Total revenues | 11 | 9 | 8 | (3) |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | 0 |
Interest credited | 0 | 0 | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 1 | 0 | 2 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Goodwill impairment | 0 | 0 | ||
Interest expense | 77 | 77 | 231 | 244 |
Total benefits and expenses | 78 | 77 | 233 | 244 |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | (67) | (68) | (225) | (247) |
Provision (benefit) for income taxes | 21 | (16) | (81) | (80) |
Equity in income (loss) of subsidiaries | (270) | (785) | (319) | (389) |
Income (loss) from continuing operations | (358) | (837) | (463) | (556) |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (358) | (837) | (463) | (556) |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (358) | (837) | (463) | (556) |
All Other Subsidiaries | ||||
Revenues: | ||||
Premiums | 1,145 | 1,210 | 3,422 | 3,486 |
Net investment income | 788 | 783 | 2,369 | 2,357 |
Net investment gains (losses) | (72) | (36) | (96) | (11) |
Insurance and investment product fees and other | 233 | 229 | 703 | 684 |
Total revenues | 2,094 | 2,186 | 6,398 | 6,516 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,290 | 1,934 | 3,714 | 4,282 |
Interest credited | 179 | 185 | 540 | 552 |
Acquisition and operating expenses, net of deferrals | 304 | 279 | 851 | 824 |
Amortization of deferred acquisition costs and intangibles | 563 | 113 | 759 | 325 |
Goodwill impairment | 550 | 550 | ||
Interest expense | 32 | 31 | 96 | 95 |
Total benefits and expenses | 2,368 | 3,092 | 5,960 | 6,628 |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | (274) | (906) | 438 | (112) |
Provision (benefit) for income taxes | (115) | (179) | 115 | 55 |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | (159) | (727) | 323 | (167) |
Income (loss) from discontinued operations, net of taxes | (21) | 6 | (328) | 19 |
Net income (loss) | (180) | (721) | (5) | (148) |
Less: net income attributable to noncontrolling interests | 46 | 57 | 150 | 144 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (226) | (778) | (155) | (292) |
Eliminations | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | (4) | (4) | (11) | (11) |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Insurance and investment product fees and other | 0 | 0 | (1) | (1) |
Total revenues | (4) | (4) | (12) | (12) |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | 0 |
Interest credited | 0 | 0 | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Goodwill impairment | 0 | 0 | ||
Interest expense | (4) | (4) | (12) | (12) |
Total benefits and expenses | (4) | (4) | (12) | (12) |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Provision (benefit) for income taxes | 0 | 0 | 0 | (4) |
Equity in income (loss) of subsidiaries | 584 | 1,615 | 618 | 844 |
Income (loss) from continuing operations | 584 | 1,615 | 618 | 848 |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net income (loss) | 584 | 1,615 | 618 | 848 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 584 | $ 1,615 | $ 618 | $ 848 |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income (loss) | $ (238) | $ (787) | $ (173) | $ (340) | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 87 | (68) | (728) | 1,171 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 1 | 0 | 8 | |
Derivatives qualifying as hedges | [1] | 217 | 101 | 60 | 434 |
Foreign currency translation and other adjustments | (302) | (379) | (619) | (252) | |
Total other comprehensive income (loss) | 2 | (345) | (1,287) | 1,361 | |
Total comprehensive income (loss) | (236) | (1,132) | (1,460) | 1,021 | |
Less: comprehensive income attributable to noncontrolling interests | (121) | (61) | (145) | 56 | |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (115) | (1,071) | (1,315) | 965 | |
Parent Guarantor | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income (loss) | (284) | (844) | (323) | (484) | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 103 | (62) | (708) | 1,155 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 1 | 0 | 8 | |
Derivatives qualifying as hedges | 217 | 101 | 60 | 434 | |
Foreign currency translation and other adjustments | (151) | (267) | (344) | (148) | |
Total other comprehensive income (loss) | 169 | (227) | (992) | 1,449 | |
Total comprehensive income (loss) | (115) | (1,071) | (1,315) | 965 | |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (115) | (1,071) | (1,315) | 965 | |
Issuer | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income (loss) | (358) | (837) | (463) | (556) | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 111 | (60) | (696) | 1,129 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (1) | 2 | (1) | 9 | |
Derivatives qualifying as hedges | 217 | 101 | 60 | 434 | |
Foreign currency translation and other adjustments | (127) | (229) | (276) | (109) | |
Total other comprehensive income (loss) | 200 | (186) | (913) | 1,463 | |
Total comprehensive income (loss) | (158) | (1,023) | (1,376) | 907 | |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (158) | (1,023) | (1,376) | 907 | |
All Other Subsidiaries | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income (loss) | (180) | (721) | (5) | (148) | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 85 | (67) | (729) | 1,171 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 1 | 0 | 8 | |
Derivatives qualifying as hedges | 231 | 105 | 68 | 460 | |
Foreign currency translation and other adjustments | (302) | (379) | (619) | (252) | |
Total other comprehensive income (loss) | 14 | (340) | (1,280) | 1,387 | |
Total comprehensive income (loss) | (166) | (1,061) | (1,285) | 1,239 | |
Less: comprehensive income attributable to noncontrolling interests | (121) | (61) | (145) | 56 | |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (45) | (1,000) | (1,140) | 1,183 | |
Eliminations | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income (loss) | 584 | 1,615 | 618 | 848 | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (212) | 121 | 1,405 | (2,284) | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | (3) | 1 | (17) | |
Derivatives qualifying as hedges | (448) | (206) | (128) | (894) | |
Foreign currency translation and other adjustments | 278 | 496 | 620 | 257 | |
Total other comprehensive income (loss) | (381) | 408 | 1,898 | (2,938) | |
Total comprehensive income (loss) | 203 | 2,023 | 2,516 | (2,090) | |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 203 | $ 2,023 | $ 2,516 | $ (2,090) | |
[1] | See note 5 for additional information. |
Condensed Consolidating Stat108
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (238) | $ (787) | $ (173) | $ (340) |
Less (income) loss from discontinued operations, net of taxes | 21 | (6) | 334 | (19) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | 0 |
Dividends from subsidiaries | 0 | 0 | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (80) | (97) | ||
Net investment losses (gains) | 51 | 27 | 59 | 11 |
Charges assessed to policyholders | (586) | (580) | ||
Acquisition costs deferred | (226) | (282) | ||
Amortization of deferred acquisition costs and intangibles | 563 | 113 | 759 | 325 |
Goodwill impairment | 0 | 550 | 0 | 550 |
Deferred income taxes | (117) | (186) | ||
Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments | (247) | 110 | ||
Stock-based compensation expense | 14 | 19 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (133) | (175) | ||
Insurance reserves | 1,270 | 1,260 | ||
Current tax liabilities | (71) | (185) | ||
Other liabilities, policy and contract claims and other policy-related balances | 352 | 731 | ||
Cash from operating activities-discontinued operations | 3 | (2) | ||
Net cash from operating activities | 1,158 | 1,140 | ||
Cash flows from investing activities: | ||||
Fixed maturity securities | 3,389 | 3,638 | ||
Commercial mortgage loans | 640 | 528 | ||
Restricted commercial mortgage loans related to securitization entities | 27 | 24 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 1,333 | 1,651 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | (6,836) | (7,202) | ||
Commercial mortgage loans | (678) | (709) | ||
Other invested assets, net | (39) | 104 | ||
Policy loans, net | 23 | 11 | ||
Intercompany notes receivable | 0 | 0 | ||
Capital contributions to subsidiaries | 0 | 0 | ||
Cash transferred for purchase of a subsidiary | 0 | |||
Cash from investing activities-discontinued operations | (22) | (48) | ||
Net cash from investing activities | (2,163) | (2,003) | ||
Cash flows from financing activities: | ||||
Deposits to universal life and investment contracts | 1,693 | 2,201 | ||
Withdrawals from universal life and investment contracts | (1,677) | (1,950) | ||
Redemption of non-recourse funding obligations | (45) | (28) | ||
Proceeds from the issuance of long-term debt | 150 | 144 | ||
Repayment and repurchase of long-term debt | (120) | (621) | ||
Repayment of borrowings related to securitization entities | (26) | (24) | ||
Proceeds from sale of subsidiary shares to noncontrolling interests | 226 | 517 | ||
Repurchase of subsidiary shares | (17) | 0 | ||
Dividends paid to noncontrolling interests | (145) | (46) | ||
Proceeds from intercompany notes payable | 0 | 0 | ||
Other, net | (25) | (19) | ||
Cash from financing activities-discontinued operations | (33) | (25) | ||
Net cash from financing activities | (19) | 149 | ||
Effect of exchange rate changes on cash and cash equivalents | (86) | (23) | ||
Net change in cash and cash equivalents | (1,110) | (737) | ||
Cash and cash equivalents at beginning of period | 4,918 | 4,214 | ||
Cash and cash equivalents at end of period | 3,808 | 3,477 | 3,808 | 3,477 |
Less cash and cash equivalents of discontinued operations at end of period | 142 | 193 | 142 | 193 |
Cash and cash equivalents from continuing operations at end of period | 3,666 | 3,284 | 3,666 | 3,284 |
Parent Guarantor | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (284) | (844) | (323) | (484) |
Less (income) loss from discontinued operations, net of taxes | 0 | 0 | 6 | 0 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | 314 | 830 | 299 | 455 |
Dividends from subsidiaries | 0 | 0 | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 | ||
Net investment losses (gains) | 0 | 0 | 0 | 0 |
Charges assessed to policyholders | 0 | 0 | ||
Acquisition costs deferred | 0 | 0 | ||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Goodwill impairment | 0 | 0 | ||
Deferred income taxes | (2) | 25 | ||
Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments | 0 | 0 | ||
Stock-based compensation expense | 16 | 15 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | 0 | (2) | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | (1) | (16) | ||
Other liabilities, policy and contract claims and other policy-related balances | 0 | 12 | ||
Cash from operating activities-discontinued operations | 0 | 0 | ||
Net cash from operating activities | (5) | 5 | ||
Cash flows from investing activities: | ||||
Fixed maturity securities | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 0 | 0 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Other invested assets, net | 0 | 0 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | 7 | 8 | ||
Capital contributions to subsidiaries | 0 | (12) | ||
Cash transferred for purchase of a subsidiary | 0 | |||
Cash from investing activities-discontinued operations | 0 | 0 | ||
Net cash from investing activities | 7 | (4) | ||
Cash flows from financing activities: | ||||
Deposits to universal life and investment contracts | 0 | 0 | ||
Withdrawals from universal life and investment contracts | 0 | 0 | ||
Redemption of non-recourse funding obligations | 0 | 0 | ||
Proceeds from the issuance of long-term debt | 0 | 0 | ||
Repayment and repurchase of long-term debt | 0 | 0 | ||
Repayment of borrowings related to securitization entities | 0 | 0 | ||
Proceeds from sale of subsidiary shares to noncontrolling interests | 0 | 0 | ||
Repurchase of subsidiary shares | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Proceeds from intercompany notes payable | 0 | 1 | ||
Other, net | (2) | (2) | ||
Cash from financing activities-discontinued operations | 0 | 0 | ||
Net cash from financing activities | (2) | (1) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 |
Less cash and cash equivalents of discontinued operations at end of period | 0 | 0 | 0 | 0 |
Cash and cash equivalents from continuing operations at end of period | 0 | 0 | 0 | 0 |
Issuer | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (358) | (837) | (463) | (556) |
Less (income) loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | 270 | 785 | 319 | 389 |
Dividends from subsidiaries | 454 | 563 | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 | ||
Net investment losses (gains) | (21) | (9) | (37) | 0 |
Charges assessed to policyholders | 0 | 0 | ||
Acquisition costs deferred | 0 | 0 | ||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Goodwill impairment | 0 | 0 | ||
Deferred income taxes | (102) | (137) | ||
Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments | 27 | 0 | ||
Stock-based compensation expense | 0 | 0 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | 3 | 44 | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | 13 | (37) | ||
Other liabilities, policy and contract claims and other policy-related balances | (1) | 51 | ||
Cash from operating activities-discontinued operations | 0 | 0 | ||
Net cash from operating activities | 213 | 317 | ||
Cash flows from investing activities: | ||||
Fixed maturity securities | 1 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 0 | 0 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Other invested assets, net | (100) | 0 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | (24) | (15) | ||
Capital contributions to subsidiaries | (25) | 0 | ||
Cash transferred for purchase of a subsidiary | (202) | |||
Cash from investing activities-discontinued operations | 0 | |||
Net cash from investing activities | (350) | (15) | ||
Cash flows from financing activities: | ||||
Deposits to universal life and investment contracts | 0 | 0 | ||
Withdrawals from universal life and investment contracts | 0 | 0 | ||
Redemption of non-recourse funding obligations | 0 | 0 | ||
Proceeds from the issuance of long-term debt | 0 | 0 | ||
Repayment and repurchase of long-term debt | (50) | (485) | ||
Repayment of borrowings related to securitization entities | 0 | 0 | ||
Proceeds from sale of subsidiary shares to noncontrolling interests | 0 | 0 | ||
Repurchase of subsidiary shares | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Proceeds from intercompany notes payable | (2) | (17) | ||
Other, net | (30) | (31) | ||
Cash from financing activities-discontinued operations | 0 | 0 | ||
Net cash from financing activities | (82) | (533) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | (219) | (231) | ||
Cash and cash equivalents at beginning of period | 953 | 1,219 | ||
Cash and cash equivalents at end of period | 734 | 988 | 734 | 988 |
Less cash and cash equivalents of discontinued operations at end of period | 0 | 0 | 0 | 0 |
Cash and cash equivalents from continuing operations at end of period | 734 | 988 | 734 | 988 |
All Other Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (180) | (721) | (5) | (148) |
Less (income) loss from discontinued operations, net of taxes | 21 | (6) | 328 | (19) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | 0 |
Dividends from subsidiaries | (454) | (563) | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (80) | (97) | ||
Net investment losses (gains) | 72 | 36 | 96 | 11 |
Charges assessed to policyholders | (586) | (580) | ||
Acquisition costs deferred | (226) | (282) | ||
Amortization of deferred acquisition costs and intangibles | 563 | 113 | 759 | 325 |
Goodwill impairment | 550 | 550 | ||
Deferred income taxes | (13) | (70) | ||
Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments | (274) | 110 | ||
Stock-based compensation expense | (2) | 4 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (133) | (213) | ||
Insurance reserves | 1,270 | 1,260 | ||
Current tax liabilities | (88) | (132) | ||
Other liabilities, policy and contract claims and other policy-related balances | 353 | 665 | ||
Cash from operating activities-discontinued operations | 3 | (2) | ||
Net cash from operating activities | 948 | 819 | ||
Cash flows from investing activities: | ||||
Fixed maturity securities | 3,388 | 3,638 | ||
Commercial mortgage loans | 640 | 528 | ||
Restricted commercial mortgage loans related to securitization entities | 27 | 24 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 1,333 | 1,651 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | (6,836) | (7,202) | ||
Commercial mortgage loans | (678) | (709) | ||
Other invested assets, net | 63 | 103 | ||
Policy loans, net | 23 | 11 | ||
Intercompany notes receivable | (4) | 9 | ||
Capital contributions to subsidiaries | 25 | 12 | ||
Cash transferred for purchase of a subsidiary | 202 | |||
Cash from investing activities-discontinued operations | (22) | (48) | ||
Net cash from investing activities | (1,839) | (1,983) | ||
Cash flows from financing activities: | ||||
Deposits to universal life and investment contracts | 1,693 | 2,201 | ||
Withdrawals from universal life and investment contracts | (1,677) | (1,950) | ||
Redemption of non-recourse funding obligations | (45) | (28) | ||
Proceeds from the issuance of long-term debt | 150 | 144 | ||
Repayment and repurchase of long-term debt | (70) | (136) | ||
Repayment of borrowings related to securitization entities | (26) | (24) | ||
Proceeds from sale of subsidiary shares to noncontrolling interests | 226 | 517 | ||
Repurchase of subsidiary shares | (17) | |||
Dividends paid to noncontrolling interests | (145) | (46) | ||
Proceeds from intercompany notes payable | 23 | 14 | ||
Other, net | 7 | 14 | ||
Cash from financing activities-discontinued operations | (33) | (25) | ||
Net cash from financing activities | 86 | 681 | ||
Effect of exchange rate changes on cash and cash equivalents | (86) | (23) | ||
Net change in cash and cash equivalents | (891) | (506) | ||
Cash and cash equivalents at beginning of period | 3,965 | 2,995 | ||
Cash and cash equivalents at end of period | 3,074 | 2,489 | 3,074 | 2,489 |
Less cash and cash equivalents of discontinued operations at end of period | 142 | 193 | 142 | 193 |
Cash and cash equivalents from continuing operations at end of period | 2,932 | 2,296 | 2,932 | 2,296 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 584 | 1,615 | 618 | 848 |
Less (income) loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | (584) | (1,615) | (618) | (844) |
Dividends from subsidiaries | 0 | 0 | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 | ||
Net investment losses (gains) | 0 | 0 | 0 | 0 |
Charges assessed to policyholders | 0 | 0 | ||
Acquisition costs deferred | 0 | 0 | ||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Goodwill impairment | 0 | 0 | ||
Deferred income taxes | 0 | (4) | ||
Net increase (decrease) in trading securities, held-for-sale investments and derivative instruments | 0 | 0 | ||
Stock-based compensation expense | 0 | 0 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (3) | (4) | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | 5 | 0 | ||
Other liabilities, policy and contract claims and other policy-related balances | 0 | 3 | ||
Cash from operating activities-discontinued operations | 0 | 0 | ||
Net cash from operating activities | 2 | (1) | ||
Cash flows from investing activities: | ||||
Fixed maturity securities | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 0 | 0 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Other invested assets, net | (2) | 1 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | 21 | (2) | ||
Capital contributions to subsidiaries | 0 | 0 | ||
Cash transferred for purchase of a subsidiary | 0 | |||
Cash from investing activities-discontinued operations | 0 | 0 | ||
Net cash from investing activities | 19 | (1) | ||
Cash flows from financing activities: | ||||
Deposits to universal life and investment contracts | 0 | 0 | ||
Withdrawals from universal life and investment contracts | 0 | 0 | ||
Redemption of non-recourse funding obligations | 0 | 0 | ||
Proceeds from the issuance of long-term debt | 0 | 0 | ||
Repayment and repurchase of long-term debt | 0 | 0 | ||
Repayment of borrowings related to securitization entities | 0 | 0 | ||
Proceeds from sale of subsidiary shares to noncontrolling interests | 0 | 0 | ||
Repurchase of subsidiary shares | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Proceeds from intercompany notes payable | (21) | 2 | ||
Other, net | 0 | 0 | ||
Cash from financing activities-discontinued operations | 0 | 0 | ||
Net cash from financing activities | (21) | 2 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 |
Less cash and cash equivalents of discontinued operations at end of period | 0 | 0 | 0 | 0 |
Cash and cash equivalents from continuing operations at end of period | $ 0 | $ 0 | $ 0 | $ 0 |