Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 02, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
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 | 499,143,133 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Assets | |||
Fixed maturity securities available-for-sale, at fair value | $ 61,944 | $ 60,572 | |
Equity securities available-for-sale, at fair value | 855 | 632 | |
Commercial mortgage loans | 6,237 | 6,111 | |
Restricted commercial mortgage loans related to securitization entities | 118 | 129 | |
Policy loans | 1,824 | 1,742 | |
Other invested assets | 2,177 | 2,071 | |
Restricted other invested assets related to securitization entities, at fair value | 81 | 312 | |
Total investments | 73,236 | 71,569 | |
Cash and cash equivalents | 2,853 | 2,784 | |
Accrued investment income | 599 | 659 | |
Deferred acquisition costs | 2,378 | 3,571 | |
Intangible assets and goodwill | 334 | 348 | |
Reinsurance recoverable | 17,609 | 17,755 | |
Other assets | 715 | 673 | |
Deferred tax asset | 23 | 0 | |
Separate account assets | 7,269 | 7,299 | |
Total assets | 105,016 | 104,658 | |
Liabilities and equity | |||
Future policy benefits | 37,772 | 37,063 | |
Policyholder account balances | 24,971 | 25,662 | |
Liability for policy and contract claims | 9,239 | 9,256 | |
Unearned premiums | 3,400 | 3,378 | |
Other liabilities ($4 and $1 of other liabilities are related to securitization entities) | 2,629 | 2,916 | |
Borrowings related to securitization entities ($12 are carried at fair value in each period) | 63 | 74 | |
Non-recourse funding obligations | 310 | 310 | |
Long-term borrowings | 4,205 | 4,180 | |
Deferred tax liability | 162 | 53 | |
Separate account liabilities | 7,269 | 7,299 | |
Total liabilities | 90,020 | 90,191 | |
Commitments and contingencies | |||
Equity: | |||
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 588 million and 587 million shares issued as of June 30, 2017 and December 31, 2016, respectively; 499 million and 498 million shares outstanding as of June 30, 2017 and December 31, 2016, respectively | 1 | 1 | |
Additional paid-in capital | 11,969 | 11,962 | |
Net unrealized investment gains (losses): | |||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,170 | 1,253 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 10 | 9 | |
Net unrealized investment gains (losses) | [1] | 1,180 | 1,262 |
Derivatives qualifying as hedges | [2] | 2,064 | 2,085 |
Foreign currency translation and other adjustments | (149) | (253) | |
Total accumulated other comprehensive income (loss) | 3,095 | 3,094 | |
Retained earnings | 653 | 287 | |
Treasury stock, at cost (88 million shares as of June 30, 2017 and December 31, 2016) | (2,700) | (2,700) | |
Total Genworth Financial, Inc.'s stockholders' equity | 13,018 | 12,644 | |
Noncontrolling interests | 1,978 | 1,823 | |
Total equity | 14,996 | 14,467 | |
Total liabilities and equity | $ 105,016 | $ 104,658 | |
[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 | Jun. 30, 2017 | Dec. 31, 2016 |
Other liabilities, securitization entities | $ 4 | $ 1 |
Borrowings related to securitization entities, fair value | $ 12 | $ 12 |
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 | 588,000,000 | 587,000,000 |
Class A common stock, shares outstanding | 499,000,000 | 498,000,000 |
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Premiums | $ 1,111 | $ 1,127 | $ 2,247 | $ 1,921 |
Net investment income | 801 | 779 | 1,591 | 1,568 |
Net investment gains (losses) | 101 | 30 | 135 | 11 |
Policy fees and other income | 210 | 300 | 421 | 521 |
Total revenues | 2,223 | 2,236 | 4,394 | 4,021 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,206 | 1,193 | 2,452 | 2,053 |
Interest credited | 163 | 173 | 330 | 350 |
Acquisition and operating expenses, net of deferrals | 240 | 327 | 510 | 721 |
Amortization of deferred acquisition costs and intangibles | 139 | 112 | 233 | 211 |
Interest expense | 74 | 80 | 136 | 185 |
Total benefits and expenses | 1,822 | 1,885 | 3,661 | 3,520 |
Income from continuing operations before income taxes | 401 | 351 | 733 | 501 |
Provision for income taxes | 130 | 110 | 246 | 133 |
Income from continuing operations | 271 | 241 | 487 | 368 |
Loss from discontinued operations, net of taxes | 0 | (21) | 0 | (40) |
Net income | 271 | 220 | 487 | 328 |
Less: net income attributable to noncontrolling interests | 69 | 48 | 130 | 103 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ 202 | $ 172 | $ 357 | $ 225 |
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | ||||
Basic | $ 0.40 | $ 0.39 | $ 0.72 | $ 0.53 |
Diluted | 0.40 | 0.39 | 0.71 | 0.53 |
Net income available to Genworth Financial, Inc.'s common stockholders per share: | ||||
Basic | 0.40 | 0.35 | 0.72 | 0.45 |
Diluted | $ 0.40 | $ 0.34 | $ 0.71 | $ 0.45 |
Weighted-average common shares outstanding: | ||||
Basic | 499 | 498.5 | 498.8 | 498.3 |
Diluted | 501.2 | 500.4 | 501.1 | 499.9 |
Supplemental disclosures: | ||||
Total other-than-temporary impairments | $ (2) | $ (22) | $ (3) | $ (33) |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Net other-than-temporary impairments | (2) | (22) | (3) | (33) |
Other investments gains (losses) | 103 | 52 | 138 | 44 |
Net investment gains (losses) | $ 101 | $ 30 | $ 135 | $ 11 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Net income | $ 271 | $ 220 | $ 487 | $ 328 | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (72) | 745 | (84) | 1,552 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 5 | 1 | 1 | |
Derivatives qualifying as hedges | [1] | 28 | 137 | (21) | 394 |
Foreign currency translation and other adjustments | 61 | 8 | 180 | 224 | |
Total other comprehensive income (loss) | 17 | 895 | 76 | 2,171 | |
Total comprehensive income | 288 | 1,115 | 563 | 2,499 | |
Less: comprehensive income attributable to noncontrolling interests | 87 | 40 | 205 | 196 | |
Total comprehensive income available to Genworth Financial, Inc.'s common stockholders | $ 201 | $ 1,075 | $ 358 | $ 2,303 | |
[1] | See note 5 for additional information. |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in 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, 2015 | $ 14,637 | $ 1 | $ 11,949 | $ 3,010 | $ 564 | $ (2,700) | $ 12,824 | $ 1,813 |
Return of capital to noncontrolling interests | (70) | (70) | ||||||
Comprehensive income: | ||||||||
Net income | 328 | 225 | 225 | 103 | ||||
Other comprehensive income, net of taxes | 2,171 | 2,078 | 2,078 | 93 | ||||
Total comprehensive income | 2,499 | 2,303 | 196 | |||||
Dividends to noncontrolling interests | (64) | (64) | ||||||
Stock-based compensation expense and exercises and other | 7 | 6 | 6 | 1 | ||||
Balances at Jun. 30, 2016 | 17,009 | 1 | 11,955 | 5,088 | 789 | (2,700) | 15,133 | 1,876 |
Balances at Dec. 31, 2016 | 14,467 | 1 | 11,962 | 3,094 | 287 | (2,700) | 12,644 | 1,823 |
Cumulative effect of change in accounting, net of taxes | 9 | 9 | 9 | |||||
Comprehensive income: | ||||||||
Net income | 487 | 357 | 357 | 130 | ||||
Other comprehensive income, net of taxes | 76 | 1 | 1 | 75 | ||||
Total comprehensive income | 563 | 358 | 205 | |||||
Dividends to noncontrolling interests | (52) | (52) | ||||||
Stock-based compensation expense and exercises and other | 9 | 7 | 7 | 2 | ||||
Balances at Jun. 30, 2017 | $ 14,996 | $ 1 | $ 11,969 | $ 3,095 | $ 653 | $ (2,700) | $ 13,018 | $ 1,978 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 487 | $ 328 |
Less loss from discontinued operations, net of taxes | 0 | 40 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Gain on sale of business | 0 | (26) |
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (76) | (67) |
Net investment gains | (135) | (11) |
Charges assessed to policyholders | (365) | (384) |
Acquisition costs deferred | (44) | (91) |
Amortization of deferred acquisition costs and intangibles | 233 | 211 |
Deferred income taxes | 166 | 4 |
Trading securities, held-for-sale investments and derivative instruments | 431 | 743 |
Stock-based compensation expense | 18 | 16 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (23) | (186) |
Insurance reserves | 806 | 332 |
Current tax liabilities | (32) | 56 |
Other liabilities, policy and contract claims and other policy-related balances | (158) | 101 |
Net cash from operating activities | 1,308 | 1,066 |
Cash flows used by investing activities: | ||
Fixed maturity securities | 2,358 | 1,680 |
Commercial mortgage loans | 307 | 364 |
Restricted commercial mortgage loans related to securitization entities | 11 | 20 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 2,587 | 2,772 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | (4,733) | (5,685) |
Commercial mortgage loans | (431) | (317) |
Other invested assets, net | (638) | (67) |
Policy loans, net | 21 | (90) |
Proceeds from sale of businesses, net of cash transferred | 0 | 39 |
Payments for business purchased, net of cash acquired | (5) | 0 |
Net cash used by investing activities | (523) | (1,284) |
Cash flows used by financing activities: | ||
Deposits to universal life and investment contracts | 429 | 810 |
Withdrawals from universal life and investment contracts | (1,091) | (1,021) |
Redemption of non-recourse funding obligations | 0 | (1,620) |
Repayment and repurchase of long-term debt | 0 | (362) |
Repayment of borrowings related to securitization entities | (12) | (30) |
Return of capital to noncontrolling interests | 0 | (70) |
Dividends paid to noncontrolling interests | (52) | (64) |
Other, net | (29) | 9 |
Net cash used by financing activities | (755) | (2,348) |
Effect of exchange rate changes on cash and cash equivalents | 39 | 30 |
Net change in cash and cash equivalents | 69 | (2,536) |
Cash and cash equivalents at beginning of period | 2,784 | 5,993 |
Cash and cash equivalents at end of period | $ 2,853 | $ 3,457 |
Formation of Genworth and Basis
Formation of Genworth and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
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 (“IPO”) of Genworth’s 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, and was renamed Genworth Financial, Inc. (“Genworth Financial”) upon the completion of the reorganization. On October 21, 2016, Genworth Financial entered into an agreement and plan of merger (the “Merger Agreement”) with Asia Pacific Global Capital Co., Ltd. (“the Parent”), a limited liability company incorporated in the People’s Republic of China, and Asia Pacific Global Capital USA Corporation (“Merger Sub”), a Delaware corporation and an indirect, wholly-owned subsidiary of the Parent. Subject to the terms and conditions of the Merger Agreement, including the satisfaction or waiver of certain conditions, Merger Sub would merge with and into Genworth Financial with Genworth Financial surviving the merger as an indirect, wholly-owned subsidiary of the Parent. The Parent is a newly formed subsidiary of China Oceanwide Holdings Group Co., Ltd. (together with its affiliates, “China Oceanwide”). China Oceanwide has agreed to acquire all of our outstanding common stock for a total transaction value of approximately $2.7 billion, or $5.43 per share in cash. At a special meeting held on March 7, 2017, Genworth’s stockholders voted on and approved a proposal to adopt the Merger Agreement. The transaction remains subject to closing conditions, including the receipt of required regulatory approvals in the U.S., China, and other international jurisdictions. Both parties are engaging with the relevant regulators regarding the applications and the pending transaction. 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 unaudited condensed consolidated financial statements and these notes thereto are, unless the context otherwise requires, to Genworth Financial on a consolidated basis. We operate our business through the following five operating segments: • U.S. Mortgage Insurance. • Canada Mortgage Insurance. • Australia Mortgage Insurance. • U.S. Life Insurance. • Runoff. In addition to our five operating business segments, 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 certain smaller international mortgage insurance businesses and discontinued operations. 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 2016 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation. |
Accounting Changes
Accounting Changes | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes | (2) Accounting Changes Accounting Pronouncements Recently Adopted On January 1, 2017, we adopted new accounting guidance related to the accounting for stock compensation. The guidance primarily simplifies the accounting for employee share-based payment transactions, including a new requirement to record all of the income tax effects at settlement or expiration through the income statement, classifications of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted this new accounting guidance on a modified retrospective basis and recorded a previously disallowed deferred tax asset of $9 million with a corresponding increase to cumulative effect of change in accounting within retained earnings at adoption. On January 1, 2017, we adopted new accounting guidance related to transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. We did not have any significant impact from this guidance on our consolidated financial statements. On January 1, 2017, we adopted new accounting guidance related to the assessment of contingent put and call options in debt instruments. The guidance clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This guidance is consistent with our previous accounting practices and, accordingly, did not have any impact on our consolidated financial statements. On January 1, 2017, we adopted new accounting guidance related to the effect of derivative contract novations on existing hedge accounting relationships. The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This guidance is consistent with our previous accounting for derivative contract novations and, accordingly, did not have any impact on our consolidated financial statements. Accounting Pronouncements Not Yet Adopted In May 2017, the Financial Accounting Standards Board (“the FASB”) issued new guidance to clarify when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification, as a liability or equity, of the share-based compensation. The guidance is effective, prospectively, for us on January 1, 2018, accordingly, the guidance will not have any impact at adoption. In March 2017, the FASB issued new guidance shortening the amortization period for the premium component of callable debt securities purchased at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating the impact the guidance may have on our consolidated financial statements. In February 2017, the FASB issued new guidance to clarify the accounting for gains and losses from the derecognition of nonfinancial assets and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control, and clarifies the accounting for partial sales. The new guidance is currently effective for us on January 1, 2018. We do not expect any significant impacts from this guidance on our consolidated financial statements. In January 2017, the FASB issued new guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. The new guidance is currently effective for us on January 1, 2020, with early adoption permitted for testing dates after January 1, 2017. We do not expect any significant impacts from this new guidance on our consolidated financial statements. In October 2016, the FASB issued new guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is currently effective for us on January 1, 2018. We are still in process of evaluating the impact the guidance may have on our consolidated financial statements, including any cumulative effect adjustment that will be recorded directly to retained earnings as of the beginning of the period of adoption. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | (3) Earnings Per Share Basic and diluted earnings 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 Six months ended (Amounts in millions, except per share amounts) 2017 2016 2017 2016 Weighted-average shares used in basic earnings per share calculations 499.0 498.5 498.8 498.3 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 2.2 1.9 2.3 1.6 Weighted-average shares used in diluted earnings per share calculations 501.2 500.4 501.1 499.9 Income from continuing operations: Income from continuing operations $ 271 $ 241 $ 487 $ 368 Less: income from continuing operations attributable to noncontrolling interests 69 48 130 103 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 202 $ 193 $ 357 $ 265 Basic per share $ 0.40 $ 0.39 $ 0.72 $ 0.53 Diluted per share $ 0.40 $ 0.39 $ 0.71 $ 0.53 Loss from discontinued operations: Loss from discontinued operations, net of taxes $ — $ (21 ) $ — $ (40 ) Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — — — Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ — $ (21 ) $ — $ (40 ) Basic per share $ — $ (0.04 ) $ — $ (0.08 ) Diluted per share $ — $ (0.04 ) $ — $ (0.08 ) Net income: Income from continuing operations $ 271 $ 241 $ 487 $ 368 Loss from discontinued operations, net of taxes — (21 ) — (40 ) Net income 271 220 487 328 Less: net income attributable to noncontrolling interests 69 48 130 103 Net income available to Genworth Financial, Inc.’s common stockholders $ 202 $ 172 $ 357 $ 225 Basic per share $ 0.40 $ 0.35 $ 0.72 $ 0.45 Diluted per share $ 0.40 $ 0.34 $ 0.71 $ 0.45 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2017 | |
Investments | (4) Investments (a) Net Investment Income Sources of net investment income were as follows for the periods indicated: Three months ended Six months ended (Amounts in millions) 2017 2016 2017 2016 Fixed maturity securities—taxable $ 649 $ 634 $ 1,290 1,275 Fixed maturity securities—non-taxable 3 3 6 6 Commercial mortgage loans 76 77 153 158 Restricted commercial mortgage loans related to securitization entities 2 3 4 5 Equity securities 9 7 17 12 Other invested assets 35 33 67 71 Restricted other invested assets related to securitization entities 1 1 1 3 Policy loans 39 34 81 69 Cash, cash equivalents and short-term investments 10 6 16 11 Gross investment income before expenses and fees 824 798 1,635 1,610 Expenses and fees (23 ) (19 ) (44 ) (42 ) Net investment income $ 801 $ 779 $ 1,591 $ 1,568 (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Six months ended (Amounts in millions) 2017 2016 2017 2016 Available-for-sale securities: Realized gains $ 74 $ 150 $ 137 $ 166 Realized losses (11 ) (28 ) (45 ) (51 ) Net realized gains (losses) on available-for-sale securities 63 122 92 115 Impairments: Total other-than-temporary impairments (2 ) (22 ) (3 ) (33 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — — Net other-than-temporary impairments (2 ) (22 ) (3 ) (33 ) Trading securities 1 16 1 44 Commercial mortgage loans 1 1 2 2 Net gains (losses) related to securitization entities 2 (61 ) 4 (53 ) Derivative instruments (1) 36 (24 ) 39 (62 ) Other — (2 ) — (2 ) Net investment gains (losses) $ 101 $ 30 $ 135 $ 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 June 30, 2017 and 2016 was $228 million and $300 million, respectively, which was approximately 95% and 92%, respectively, of book value. The aggregate fair value of securities sold at a loss during the six months ended June 30, 2017 and 2016 was $1,104 million and $540 million, respectively, which was approximately 96% and 92%, respectively, of book value. The following represents the activity for credit losses recognized in net income 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 June 30, As of or for the six months ended June 30, (Amounts in millions) 2017 2016 2017 2016 Beginning balance $ 41 $ 63 $ 42 $ 64 Additions: Other-than-temporary impairments not previously recognized — 1 — 1 Reductions: Securities sold, paid down or disposed (3 ) (2 ) (4 ) (3 ) Ending balance $ 38 $ 62 $ 38 $ 62 (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 were as follows as of the dates indicated: (Amounts in millions) June 30, December 31, Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 4,797 $ 3,656 Equity securities 169 12 Subtotal (1) 4,966 3,668 Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (3,038 ) (1,611 ) Income taxes, net (665 ) (711 ) Net unrealized investment gains (losses) 1,263 1,346 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 83 84 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,180 $ 1,262 (1) Excludes foreign exchange. 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) 2017 2016 Beginning balance $ 1,243 $ 2,057 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 995 1,760 Adjustment to deferred acquisition costs (741 ) (132 ) Adjustment to present value of future profits (28 ) 5 Adjustment to sales inducements (6 ) (21 ) Adjustment to benefit reserves (269 ) (357 ) Provision for income taxes 17 (440 ) Change in unrealized gains (losses) on investment securities (32 ) 815 Reclassification adjustments to net investment (gains) losses, net of taxes of $21 and $35 (40 ) (65 ) Change in net unrealized investment gains (losses) (72 ) 750 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) 18 Ending balance $ 1,180 $ 2,789 As of or for the six months ended (Amounts in millions) 2017 2016 Beginning balance $ 1,262 $ 1,254 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 1,387 3,356 Adjustment to deferred acquisition costs (1,046 ) (274 ) Adjustment to present value of future profits (33 ) (29 ) Adjustment to sales inducements (11 ) (40 ) Adjustment to benefit reserves (337 ) (531 ) Provision for income taxes 15 (876 ) Change in unrealized gains (losses) on investment securities (25 ) 1,606 Reclassification adjustments to net investment (gains) losses, net of taxes of $31 and $29 (58 ) (53 ) Change in net unrealized investment gains (losses) (83 ) 1,553 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) 18 Ending balance $ 1,180 $ 2,789 (d) Fixed Maturity and Equity Securities As of June 30, 2017, 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 $ 4,861 $ 775 $ — $ (7 ) $ — $ 5,629 State and political subdivisions 2,604 233 — (31 ) — 2,806 Non-U.S. government 1,997 108 — (14 ) — 2,091 U.S. corporate: Utilities 4,331 534 — (17 ) — 4,848 Energy 2,200 184 — (14 ) — 2,370 Finance and insurance 6,026 578 — (14 ) — 6,590 Consumer—non-cyclical 4,296 497 — (11 ) — 4,782 Technology and communications 2,502 187 — (14 ) — 2,675 Industrial 1,250 99 — (5 ) — 1,344 Capital goods 2,021 272 — (6 ) — 2,287 Consumer—cyclical 1,497 110 — (8 ) — 1,599 Transportation 1,082 103 — (6 ) — 1,179 Other 375 23 — (1 ) — 397 Total U.S. corporate 25,580 2,587 — (96 ) — 28,071 Non-U.S. corporate: Utilities 1,009 48 — (4 ) — 1,053 Energy 1,313 131 — (10 ) — 1,434 Finance and insurance 2,418 176 — (4 ) — 2,590 Consumer—non-cyclical 722 28 — (4 ) — 746 Technology and communications 979 67 — (3 ) — 1,043 Industrial 948 70 — (3 ) — 1,015 Capital goods 545 31 — (2 ) — 574 Consumer—cyclical 484 11 — (1 ) — 494 Transportation 638 70 — (4 ) — 704 Other 2,587 195 — (5 ) — 2,777 Total non-U.S. corporate 11,643 827 — (40 ) — 12,430 Residential mortgage-backed 4,045 269 13 (8 ) — 4,319 Commercial mortgage-backed 3,330 111 2 (37 ) — 3,406 Other asset-backed 3,180 18 1 (7 ) — 3,192 Total fixed maturity securities 57,240 4,928 16 (240 ) — 61,944 Equity securities 692 176 — (13 ) — 855 Total available-for-sale securities $ 57,932 $ 5,104 $ 16 $ (253 ) $ — $ 62,799 As of December 31, 2016, 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 $ 5,439 $ 647 $ — $ (50 ) $ — $ 6,036 State and political subdivisions 2,515 182 — (50 ) — 2,647 Non-U.S. government 2,024 101 — (18 ) — 2,107 U.S. corporate: Utilities 4,137 454 — (41 ) — 4,550 Energy 2,167 157 — (24 ) — 2,300 Finance and insurance 5,719 424 — (46 ) — 6,097 Consumer—non-cyclical 4,335 433 — (34 ) — 4,734 Technology and communications 2,473 157 — (32 ) — 2,598 Industrial 1,161 76 — (14 ) — 1,223 Capital goods 2,043 228 — (13 ) — 2,258 Consumer—cyclical 1,455 92 — (17 ) — 1,530 Transportation 1,121 86 — (17 ) — 1,190 Other 332 17 — (1 ) — 348 Total U.S. corporate 24,943 2,124 — (239 ) — 26,828 Non-U.S. corporate: Utilities 940 40 — (11 ) — 969 Energy 1,234 109 — (12 ) — 1,331 Finance and insurance 2,413 134 — (9 ) — 2,538 Consumer—non-cyclical 711 17 — (14 ) — 714 Technology and communications 953 44 — (10 ) — 987 Industrial 928 39 — (9 ) — 958 Capital goods 518 21 — (4 ) — 535 Consumer—cyclical 434 10 — (2 ) — 442 Transportation 619 65 — (7 ) — 677 Other 2,967 190 — (13 ) — 3,144 Total non-U.S. corporate 11,717 669 — (91 ) — 12,295 Residential mortgage-backed 4,122 259 10 (12 ) — 4,379 Commercial mortgage-backed 3,084 98 3 (56 ) — 3,129 Other asset-backed 3,170 15 1 (35 ) — 3,151 Total fixed maturity securities 57,014 4,095 14 (551 ) — 60,572 Equity securities 628 31 — (27 ) — 632 Total available-for-sale securities $ 57,642 $ 4,126 $ 14 $ (578 ) $ — $ 61,204 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 June 30, 2017: 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 $ 313 $ (7 ) 23 $ — $ — — $ 313 $ (7 ) 23 State and political subdivisions 364 (15 ) 70 149 (16 ) 13 513 (31 ) 83 Non-U.S. government 695 (13 ) 42 16 (1 ) 8 711 (14 ) 50 U.S. corporate 2,954 (70 ) 434 443 (26 ) 57 3,397 (96 ) 491 Non-U.S. corporate 1,297 (23 ) 208 281 (17 ) 37 1,578 (40 ) 245 Residential mortgage-backed 567 (7 ) 77 51 (1 ) 31 618 (8 ) 108 Commercial mortgage-backed 956 (36 ) 136 25 (1 ) 5 981 (37 ) 141 Other asset-backed 761 (4 ) 137 250 (3 ) 52 1,011 (7 ) 189 Subtotal, fixed maturity securities 7,907 (175 ) 1,127 1,215 (65 ) 203 9,122 (240 ) 1,330 Equity securities 74 (4 ) 152 107 (9 ) 51 181 (13 ) 203 Total for securities in an unrealized loss position $ 7,981 $ (179 ) 1,279 $ 1,322 $ (74 ) 254 $ 9,303 $ (253 ) 1,533 % Below cost—fixed maturity securities: <20% Below cost $ 7,907 $ (175 ) 1,127 $ 1,199 $ (61 ) 200 $ 9,106 $ (236 ) 1,327 20%-50% Below cost — — — 16 (4 ) 3 16 (4 ) 3 Total fixed maturity securities 7,907 (175 ) 1,127 1,215 (65 ) 203 9,122 (240 ) 1,330 % Below cost—equity securities: <20% Below cost 72 (3 ) 151 107 (9 ) 51 179 (12 ) 202 20%-50% Below cost 2 (1 ) 1 — — — 2 (1 ) 1 Total equity securities 74 (4 ) 152 107 (9 ) 51 181 (13 ) 203 Total for securities in an unrealized loss position $ 7,981 $ (179 ) 1,279 $ 1,322 $ (74 ) 254 $ 9,303 $ (253 ) 1,533 Investment grade $ 7,676 $ (168 ) 1,098 $ 1,075 $ (58 ) 194 $ 8,751 $ (226 ) 1,292 Below investment grade 305 (11 ) 181 247 (16 ) 60 552 (27 ) 241 Total for securities in an unrealized loss position $ 7,981 $ (179 ) 1,279 $ 1,322 $ (74 ) 254 $ 9,303 $ (253 ) 1,533 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 June 30, 2017: 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 $ 505 $ (16 ) 79 $ 32 $ (1 ) 5 $ 537 $ (17 ) 84 Energy 203 (3 ) 32 153 (11 ) 18 356 (14 ) 50 Finance and insurance 757 (13 ) 109 76 (1 ) 9 833 (14 ) 118 Consumer—non-cyclical 496 (11 ) 72 — — — 496 (11 ) 72 Technology and communications 257 (7 ) 39 79 (7 ) 11 336 (14 ) 50 Industrial 105 (2 ) 15 47 (3 ) 7 152 (5 ) 22 Capital goods 207 (6 ) 32 — — — 207 (6 ) 32 Consumer—cyclical 190 (6 ) 26 48 (2 ) 6 238 (8 ) 32 Transportation 202 (5 ) 27 8 (1 ) 1 210 (6 ) 28 Other 32 (1 ) 3 — — — 32 (1 ) 3 Subtotal, U.S. corporate securities 2,954 (70 ) 434 443 (26 ) 57 3,397 (96 ) 491 Non-U.S. corporate: Utilities 165 (3 ) 18 14 (1 ) 1 179 (4 ) 19 Energy 122 (2 ) 22 70 (8 ) 13 192 (10 ) 35 Finance and insurance 224 (3 ) 38 31 (1 ) 6 255 (4 ) 44 Consumer—non-cyclical 147 (3 ) 19 10 (1 ) — 157 (4 ) 19 Technology and communications 107 (2 ) 20 12 (1 ) 2 119 (3 ) 22 Industrial 62 (2 ) 9 32 (1 ) 4 94 (3 ) 13 Capital goods 48 (1 ) 7 29 (1 ) 2 77 (2 ) 9 Consumer—cyclical 78 (1 ) 15 — — — 78 (1 ) 15 Transportation 93 (3 ) 17 25 (1 ) 2 118 (4 ) 19 Other 251 (3 ) 43 58 (2 ) 7 309 (5 ) 50 Subtotal, non-U.S. corporate securities 1,297 (23 ) 208 281 (17 ) 37 1,578 (40 ) 245 Total for corporate securities in an unrealized loss position $ 4,251 $ (93 ) 642 $ 724 $ (43 ) 94 $ 4,975 $ (136 ) 736 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 increased market volatility, 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 2% as of June 30, 2017. Fixed Maturity Securities In A Continuous Unrealized Loss Position For 12 Months Or More Of the $61 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 78% of the unrealized losses were related to investment grade securities as of June 30, 2017. These unrealized losses were predominantly attributable to corporate securities including variable rate securities purchased in a higher rate and lower spread environment. The average fair value percentage below cost for these securities was approximately 5% as of June 30, 2017. 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 June 30, 2017: 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 $ 10 $ (2 ) 1 % 1 $ — $ — — % — Total $ 10 $ (2 ) 1 % 1 $ — $ — — % — 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: Non-U.S. corporate: Energy 3 (1 ) — 1 — — — — Other 3 (1 ) — 1 — — — — Total non-U.S. corporate 6 (2 ) — 2 — — — — Total $ 6 $ (2 ) — % 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. State and political subdivisions As indicated above, $2 million of gross unrealized losses were related to a state and political subdivision fixed maturity security that has been in a continuous loss position for more than 12 months and was more than 20% below cost. The unrealized loss for this security was 21% below cost, primarily related to widening of credit spreads since acquisition as a result of higher risk premiums being attributed to this security from uncertainty related to special revenues supporting this type of obligation as well as certain securities having longer duration that may be viewed as less desirable in the current market place. Additionally, the fair value of this security class has been negatively impacted as a result of having certain bond insurers associated with the security. In our analysis of impairment for this security, we expect to recover our amortized cost from the cash flows of the underlying security before any guarantee support. However, the existence of these guarantees may negatively impact the value of the debt security in certain instances. We performed an analysis of this security and the underlying activities that are expected to support the cash flows and determined we expect to recover our amortized cost. Non-U.S. corporate As indicated above, $2 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, all were below investment grade and not concentrated in any one sector. 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. 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, 2016: 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 $ 1,074 $ (50 ) 37 $ — $ — — $ 1,074 $ (50 ) 37 State and political subdivisions 644 (32 ) 109 142 (18 ) 12 786 (50 ) 121 Non-U.S. government 497 (18 ) 51 — — — 497 (18 ) 51 U.S. corporate 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. corporate 2,257 (66 ) 330 408 (25 ) 57 2,665 (91 ) 387 Residential mortgage-backed 725 (11 ) 100 58 (1 ) 35 783 (12 ) 135 Commercial mortgage-backed 1,091 (55 ) 168 25 (1 ) 9 1,116 (56 ) 177 Other asset-backed 1,069 (13 ) 184 328 (22 ) 68 1,397 (35 ) 252 Subtotal, fixed maturity securities 12,578 (435 ) 1,690 1,623 (116 ) 275 14,201 (551 ) 1,965 Equity securities 119 (9 ) 182 114 (18 ) 47 233 (27 ) 229 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 % Below cost—fixed maturity securities: <20% Below cost $ 12,578 $ (435 ) 1,690 $ 1,543 $ (90 ) 267 $ 14,121 $ (525 ) 1,957 20%-50% Below cost — — — 80 (26 ) 8 80 (26 ) 8 >50% Below cost — — — — — — — — — Total fixed maturity securities 12,578 (435 ) 1,690 1,623 (116 ) 275 14,201 (551 ) 1,965 % Below cost—equity securities: <20% Below cost 118 (8 ) 167 101 (14 ) 38 219 (22 ) 205 20%-50% Below cost 1 (1 ) 15 13 (4 ) 9 14 (5 ) 24 Total equity securities 119 (9 ) 182 114 (18 ) 47 233 (27 ) 229 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 Investment grade $ 12,339 $ (432 ) 1,657 $ 1,354 $ (108 ) 250 $ 13,693 $ (540 ) 1,907 Below investment grade 358 (12 ) 215 383 (26 ) 72 741 (38 ) 287 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 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, 2016: 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 $ 855 $ (39 ) 130 $ 21 $ (2 ) 5 $ 876 $ (41 ) 135 Energy 190 (5 ) 30 276 (19 ) 38 466 (24 ) 68 Finance and insurance 1,438 (38 ) 177 113 (8 ) 15 1,551 (46 ) 192 Consumer—non-cyclical 921 (34 ) 117 — — — 921 (34 ) 117 Technology and communications 507 (22 ) 70 126 (10 ) 17 633 (32 ) 87 Industrial 226 (7 ) 38 77 (7 ) 10 303 (14 ) 48 Capital goods 322 (12 ) 50 6 (1 ) 1 328 (13 ) 51 Consumer—cyclical 431 (16 ) 56 26 (1 ) 6 457 (17 ) 62 Transportation 302 (16 ) 41 17 (1 ) 2 319 (17 ) 43 Other 29 (1 ) 2 — — — 29 (1 ) 2 Subtotal, U.S. corporate securities 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. corporate: Utilities 240 (10 ) 32 14 (1 ) 1 254 (11 ) 33 Energy 105 (3 ) 18 91 (9 ) 16 196 (12 ) 34 Finance and insurance 474 (8 ) 79 71 (1 ) 16 545 (9 ) 95 Consumer—non-cyclical 308 (14 ) 30 — — — 308 (14 ) 30 Technology and communications 232 (9 ) 34 28 (1 ) 2 260 (10 ) 36 Industrial 165 (5 ) 21 91 (4 ) 10 256 (9 ) 31 Capital goods 104 (2 ) 14 28 (2 ) 2 132 (4 ) 16 Consumer—cyclical 90 (2 ) 17 — — — 90 (2 ) 17 Transportation 106 (5 ) 16 25 (2 ) 2 131 (7 ) 18 Other 433 (8 ) 69 60 (5 ) 8 493 (13 ) 77 Subtotal, non-U.S. corporate securities 2,257 (66 ) 330 408 (25 ) 57 2,665 (91 ) 387 Total for corporate securities in an unrealized loss position $ 7,478 $ (256 ) 1,041 $ 1,070 $ (74 ) 151 $ 8,548 $ (330 ) 1,192 The scheduled maturity distribution of fixed maturity securities as of June 30, 2017 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 $ 1,883 $ 1,906 Due after one year through five years 10,533 10,967 Due after five years through ten years 12,183 12,722 Due after ten years 22,086 25,432 Subtotal 46,685 51,027 Residential mortgage-backed 4,045 4,319 Commercial mortgage-backed 3,330 3,406 Other asset-backed 3,180 3,192 Total $ 57,240 $ 61,944 As of June 30, 2017, $11,818 million of our investments (excluding mortgage-backed and asset-backed securities) were subject to certain call provisions. As of June 30, 2017, securities issued by finance and insurance, utilities and consumer—non-cyclical industry groups represented approximately 23%, 14% and 14%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio. As of June 30, 2017, 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: June 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,199 35 % $ 2,178 36 % Industrial 1,590 25 1,533 25 Office 1,480 24 1,430 23 Apartments 470 8 455 7 Mixed use 234 4 245 4 Other 277 4 284 5 Subtotal 6,250 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,237 $ 6,111 June 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,608 26 % $ 1,546 25 % Pacific 1,603 26 1,567 27 Middle Atlantic 908 14 915 15 Mountain 547 9 554 9 West North Central 442 7 435 7 East North Central 383 6 388 6 West South Central 318 5 311 5 New England 233 4 206 3 East South Central 208 3 203 3 Subtotal 6,250 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,237 $ 6,111 The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: June 30, 2017 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than past due Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,199 $ 2,199 Industrial — — — — 1,590 1,590 Office — — — — 1,480 1,480 Apartments — — — — 470 470 Mixed use — — — — 234 234 Other — — — — 277 277 Total recorded investment $ — $ — $ — $ — $ 6,250 $ 6,250 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2016 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than 90 days past due Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,178 $ 2,178 Industrial 1 — 12 13 1,520 1,533 Office — — — — 1,430 1,430 Apartments — — — — 455 455 Mixed use — — — — 245 245 Other — — — — 284 284 Total recorded investment $ 1 $ — $ 12 $ 13 $ 6,112 $ 6,125 % of total commercial mortgage loans — % — % — % — % 100 % 100 % As of June 30, 2017 and December 31, 2016, 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 June 30, 2017 and December 31, 2016. We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of June 30, 2017, none of our commercial mortgage loans were greater than 90 days past due. During the six months ended June 30, 2017 and the year ended December 31, 2016, we modified or extended 5 and 16 commercial mortgage loans, respectively, with a total carrying value of $8 million and $85 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, except during the year ended December 31, 2016, one loan with a carrying value $1 million at the time of modification was considered a troubled debt restructuring. This loan was sold in the fourth quarter of 2016. 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 Six months ended (Amounts in millions) 2017 2016 2017 2016 Allowance for credit losses: Beginning balance $ 11 $ 15 $ 12 $ 15 Charge-offs — (4 ) — (4 ) Recoveries — — — — Provision (1 ) 2 (2 ) 2 Ending balance $ 10 $ 13 $ 10 $ 13 Ending allowance for individually impaired loans $ — $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 10 $ 13 $ 10 $ 13 Recorded investment: Ending balance $ 6,250 $ 6,136 $ 6,250 $ 6,136 Ending balance of individually impaired loans $ — $ 23 $ — $ 23 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,250 $ 6,113 $ 6,250 $ 6,113 As of June 30, 2017, we had no individually impaired commercial mortgage loans. As of June 30, 2016, we had an individually impaired commercial mortgage loan included within the office property type with a recorded investment of $5 million, an unpaid principal balance of $6 million and charge-offs of $1 million, an individually impaired commercial mortgage loan included within the retail property type with a recorded investment of $5 million, an unpaid principal balance of $6 million and charge-offs of $1 million, and an individually impaired loan within the industrial property type had a recorded investment of $13 million, an unpaid principal balance of $16 million and total charge-offs of $3 million. As of December 31, 2016, we had one individually impaired loan within the industrial property type with a recorded investment of $12 million, an unpaid principal balance of $15 million and charge-offs of $3 million. In evaluating the credit quality of commercial mortgage loans, we assess the performance of the underlying loans using both quantitative and qualitative criteria. Certain risks associated with commercial mortgage loans can be evaluated by reviewing both the loan-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average loan-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was sold. The debt service coverage ratio is based on “normalized” annual income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio should not be used without considering other factors associated with the borrower, such as the borrower’s liquidity or access to other resources that may result in our expectation that the borrower will continue to make the future scheduled payments. The following tables set forth the loan-to-value of commercial mortgage loans by property type as of the dates indicated: June 30, 2017 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 762 $ 487 $ 939 $ 11 $ — $ 2,199 Industrial 600 418 570 2 — 1,590 Office 421 325 706 28 — 1,480 Apartments 187 90 188 5 — 470 Mixed use 62 88 84 — — 234 Other 52 33 192 — — 277 Total recorded investment $ 2,084 $ 1,441 $ 2,679 $ 46 $ — $ 6,250 % of total 33 % 23 % 43 % 1 % — % 100 % Weighted-average debt service coverage ratio 2.19 1.89 1.62 0.89 — 1.87 December 31, 2016 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 743 $ 511 $ 913 $ 11 $ — $ 2,178 Industrial 605 430 484 14 — 1,533 Office 431 310 656 26 7 1,430 Apartments 188 89 173 5 — 455 Mixed use 67 87 91 — — 245 Other 60 30 194 — — 284 Total recorded investment $ 2,094 $ 1,457 $ 2,511 $ 56 $ 7 $ 6,125 % of total 34 % 24 % 41 % 1 % — % 100 % Weighted-average debt service coverage ratio 2.20 1.88 1.61 0.80 (0.07 ) 1.87 (1) Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated: June 30, 2017 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 63 $ 197 $ 450 $ 922 $ 567 $ 2,199 Industrial 50 106 236 708 490 1,590 Office 82 111 173 646 468 1,480 Apartments |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2017 | |
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. 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 June 30, December 31, Balance sheet classification June 30, December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $ 243 $ 237 Other liabilities $ 182 $ 203 Foreign currency swaps Other invested assets 2 4 Other liabilities — — Total cash flow hedges 245 241 182 203 Total derivatives designated as hedges 245 241 182 203 Derivatives not designated as hedges Interest rate swaps Other invested assets 347 359 Other liabilities 150 146 Foreign currency swaps Other invested assets 3 — Other liabilities 2 5 Credit default swaps related to securitization entities Restricted other invested assets — — Other liabilities — 1 Equity index options Other invested assets 81 72 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets 2 1 Other liabilities 7 1 Other foreign currency contracts Other invested assets 65 35 Other liabilities 26 27 GMWB embedded derivatives Reinsurance recoverable (1) 15 16 Policyholder account balances (2) 281 303 Fixed index annuity embedded derivatives Other assets — — Policyholder account balances (3) 376 344 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (4) 13 11 Total derivatives not designated as hedges 513 483 855 838 Total derivatives $ 758 $ 724 $ 1,037 $ 1,041 (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/ June 30, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,570 $ — $ (215 ) $ 11,355 Foreign currency swaps Notional 22 — — 22 Total cash flow hedges 11,592 — (215 ) 11,377 Total derivatives designated as hedges 11,592 — (215 ) 11,377 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — — 4,679 Foreign currency swaps Notional 201 73 (4 ) 270 Credit default swaps Notional 39 — — 39 Credit default swaps related to securitization entities Notional 312 — (100 ) 212 Equity index options Notional 2,396 951 (837 ) 2,510 Financial futures Notional 1,398 2,908 (2,960 ) 1,346 Equity return swaps Notional 165 108 (153 ) 120 Other foreign currency contracts Notional 3,130 1,760 (453 ) 4,437 Total derivatives not designated as hedges 12,320 5,800 (4,507 ) 13,613 Total derivatives $ 23,912 $ 5,800 $ (4,722 ) $ 24,990 (Number of policies) Measurement December 31, Additions Maturities/ June 30, Derivatives not designated as hedges GMWB embedded derivatives Policies 33,238 — (1,498 ) 31,740 Fixed index annuity embedded derivatives Policies 17,549 — (248 ) 17,301 Indexed universal life embedded derivatives Policies 1,074 1 (40 ) 1,035 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 effects of cash flow hedges for the three months ended June 30, 2017: (Amounts in millions) Gain (loss) in OCI Gain (loss) from OCI Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps $ 82 $ 31 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging assets — 1 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (6 ) — Interest expense — Net investment gains (losses) Foreign currency swaps (1 ) — Net investment income — Net investment gains (losses) Total $ 75 $ 32 $ — (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 effects of cash flow hedges for the three months ended June 30, 2016: (Amounts in millions) Gain (loss) in OCI Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 267 $ 28 Net investment income $ 5 Net investment gains (losses) Interest rate swaps hedging liabilities (19 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps (2 ) — Net investment income — Net investment gains (losses) Inflation indexed swaps — 7 Net investment gains (losses) — Net investment gains (losses) Total $ 246 $ 35 $ 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 six months ended June 30, 2017: (Amounts in millions) Gain (loss) in OCI Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 33 $ 61 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging assets — 2 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (2 ) — Interest expense — Net investment gains (losses) Foreign currency swaps (1 ) — Net investment income — Net investment gains (losses) Total $ 30 $ 63 $ — (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 effects of cash flow hedges for the six months ended June 30, 2016: (Amounts in millions) Gain (loss) in OCI Gain (loss) Classification of gain net income Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 724 $ 53 Net investment income $ 11 Net investment gains (losses) Interest rate swaps hedging assets — 1 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (50 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps (5 ) 2 Net investment income — Net investment gains (losses) Inflation indexed swaps — 7 Net investment gains (losses) — Net investment gains (losses) Foreign currency swaps (1 ) — Net investment income — Net investment gains (losses) Total $ 668 $ 63 $ 11 (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 June 30, (Amounts in millions) 2017 2016 Derivatives qualifying as effective accounting hedges as of April 1 $ 2,036 $ 2,302 Current period increases (decreases) in fair value, net of deferred taxes of $(27) and $(86) 48 160 Reclassification to net (income), net of deferred taxes of $12 and $12 (20 ) (23 ) Derivatives qualifying as effective accounting hedges as of June 30 $ 2,064 $ 2,439 Six months ended (Amounts in millions) 2017 2016 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,085 $ 2,045 Current period increases (decreases) in fair value, net of deferred taxes of $(11) and $(233) 19 435 Reclassification to net (income), net of deferred taxes of $23 and $22 (40 ) (41 ) Derivatives qualifying as effective accounting hedges as of June 30 $ 2,064 $ 2,439 The total of derivatives designated as cash flow hedges of $2,064 million, net of taxes, recorded in stockholders’ equity as of June 30, 2017 is expected to be reclassified to net income 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, $91 million, net of taxes, is expected to be reclassified to net income 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 2057. During the six months ended June 30, 2017, there was approximately $1 million reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring. 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 for the effects of derivatives not designated as hedges for the periods indicated: Three months ended June 30, Classification of gain (loss) recognized in net income (Amounts in millions) 2017 2016 Interest rate swaps $ (1 ) $ (7 ) Net investment gains (losses) Interest rate swaps related to securitization entities — (5 ) Net investment gains (losses) Credit default swaps — 1 Net investment gains (losses) Credit default swaps related to securitization entities 2 5 Net investment gains (losses) Equity index options 13 (1 ) Net investment gains (losses) Financial futures 9 19 Net investment gains (losses) Equity return swaps (6 ) 5 Net investment gains (losses) Other foreign currency contracts 31 (2 ) Net investment gains (losses) Foreign currency swaps 2 (3 ) Net investment gains (losses) GMWB embedded derivatives 1 (40 ) Net investment gains (losses) Fixed index annuity embedded derivatives (16 ) (9 ) Net investment gains (losses) Indexed universal life embedded derivatives 2 1 Net investment gains (losses) Total derivatives not designated as hedges $ 37 $ (36 ) Six months June 30, Classification of gain (loss) recognized in net income (Amounts in millions) 2017 2016 Interest rate swaps $ 1 $ 8 Net investment gains (losses) Interest rate swaps related to securitization entities — (10 ) Net investment gains (losses) Credit default swaps related to securitization entities 4 14 Net investment gains (losses) Equity index options 26 (4 ) Net investment gains (losses) Financial futures (8 ) 26 Net investment gains (losses) Equity return swaps (14 ) 7 Net investment gains (losses) Other foreign currency contracts 26 (4 ) Net investment gains (losses) Foreign currency swaps 5 7 Net investment gains (losses) GMWB embedded derivatives 34 (118 ) Net investment gains (losses) Fixed index annuity embedded derivatives (36 ) (6 ) Net investment gains (losses) Indexed universal life embedded derivatives 3 3 Net investment gains (losses) Total derivatives not designated as hedges $ 41 $ (77 ) Derivative Counterparty Credit Risk Most of our derivative arrangements require the posting of collateral by the counterparty 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: June 30, 2017 December 31, 2016 (Amounts in millions) Derivatives (1) Derivatives (2) Net Derivatives (1) Derivatives (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 757 $ 373 $ 384 $ 724 $ 387 $ 337 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 757 373 384 724 387 337 Gross amounts not offset in the balance sheet: Financial instruments (3) (253 ) (253 ) — (172 ) (172 ) — Collateral received (425 ) — (425 ) (467 ) — (467 ) Collateral pledged — (373 ) 373 — (557 ) 557 Over collateralization 8 255 (247 ) 1 344 (343 ) Net amount $ 87 $ 2 $ 85 $ 86 $ 2 $ 84 (1) Included $14 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2017 and December 31, 2016, respectively. (2) Included $6 million and $5 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 June 30, 2017 and December 31, 2016, 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 downgrade provisions had been triggered as a result of downgrades of our counterparties, we could have claimed up to $87 million and $86 million as of June 30, 2017 and December 31, 2016, respectively, or have been required to disburse up to $2 million as of June 30, 2017 and December 31, 2016. 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: June 30, 2017 December 31, 2016 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Investment grade Matures in less than one year $ 19 $ — $ — $ — $ — $ — Matures after one year through five years 20 — — 39 — — Total credit default swaps on single name reference entities $ 39 $ — $ — $ 39 $ — $ — 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: June 30, 2017 December 31, 2016 (Amounts in millions) Notional value Assets Liabilities Notional Assets Liabilities Customized credit default swap index tranches related to securitization entities: Portion backing third-party borrowings maturing 2017 (1) $ 12 $ — $ — $ 12 $ — $ — Portion backing our interest maturing 2017 (2) 200 — 300 — 1 Total customized credit default swap index tranches related to securitization entities 212 — — 312 — 1 Total credit default swaps on index tranches $ 212 $ — $ — $ 312 $ — $ 1 (1) Original notional value was $39 million. (2) Original notional value was $300 million. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments | (6) Fair Value of Financial Instruments Assets and liabilities that are reflected in the accompanying unaudited 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: June 30, 2017 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,237 $ 6,533 $ — $ — $ 6,533 Restricted commercial mortgage loans (1) 118 130 — — 130 Other invested assets (1) 1,101 1,123 — 946 177 Liabilities: Long-term borrowings (1) 4,205 3,626 — 3,471 155 Non-recourse funding obligations (1) 310 195 — — 195 Borrowings related to securitization entities (1) 51 53 — 53 — Investment contracts (1) 15,667 16,212 — 5 16,207 Other firm commitments: Commitments to fund limited partnerships 268 — — — — — Ordinary course of business lending commitments 59 — — — — — December 31, 2016 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,111 $ 6,247 $ — $ — $ 6,247 Restricted commercial mortgage loans (1) 129 141 — — 141 Other invested assets (1) 459 473 — 352 121 Liabilities: Long-term borrowings (1) 4,180 3,582 — 3,440 142 Non-recourse funding obligations (1) 310 186 — — 186 Borrowings related to securitization entities (1) 62 65 — 65 — Investment contracts (1) 16,437 16,993 — 5 16,988 Other firm commitments: Commitments to fund limited partnerships 201 — — — — — Ordinary course of business lending commitments 73 — — — — — (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 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. We evaluate changes in fair value that are greater than certain pre-defined thresholds 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. 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. When available, we also evaluate the prices sampled as compared to other public prices. If a variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. 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. If a pricing variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. At the end of each month, all internally modeled prices are compared to the prior month prices with an evaluation of all securities with a month-over-month change greater than a pre-defined threshold. 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 analyze a sample each month to assess reasonableness given then-current market conditions. 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. 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. Level 2 measurements Fixed maturity securities • Third-party pricing services: industry-standard The following table presents a summary of the significant inputs used by our third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2017: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 5,628 Price quotes from trading desk, broker feeds Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread State and political subdivisions $ 2,761 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. government $ 2,075 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources U.S. corporate $ 24,722 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. corporate $ 10,569 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources Residential mortgage-backed $ 4,246 OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Commercial mortgage-backed $ 3,354 Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports Other asset-backed $ 3,042 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: Equity securities. 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. Level 3 measurements Fixed maturity securities • Internal models: • Broker quotes: 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. 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 June 30, 2017 and December 31, 2016, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $69 million and $73 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 have 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 have 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. 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 have not recorded 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. 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: June 30, 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,629 $ — $ 5,628 $ 1 State and political subdivisions 2,806 — 2,769 37 Non-U.S. government 2,091 — 2,091 — U.S. corporate: Utilities 4,848 — 4,210 638 Energy 2,370 — 2,210 160 Finance and insurance 6,590 — 5,729 861 Consumer—non-cyclical 4,782 — 4,660 122 Technology and communications 2,675 — 2,617 58 Industrial 1,344 — 1,283 61 Capital goods 2,287 — 2,169 118 Consumer—cyclical 1,599 — 1,333 266 Transportation 1,179 — 1,079 100 Other 397 — 221 176 Total U.S. corporate 28,071 — 25,511 2,560 Non-U.S. corporate: Utilities 1,053 — 694 359 Energy 1,434 — 1,257 177 Finance and insurance 2,590 — 2,418 172 Consumer—non-cyclical 746 — 617 129 Technology and communications 1,043 — 995 48 Industrial 1,015 — 903 112 Capital goods 574 — 425 149 Consumer—cyclical 494 — 427 67 Transportation 704 — 514 190 Other 2,777 — 2,736 41 Total non-U.S. corporate 12,430 — 10,986 1,444 Residential mortgage-backed 4,319 — 4,246 73 Commercial mortgage-backed 3,406 — 3,354 52 Other asset-backed 3,192 — 3,042 150 Total fixed maturity securities 61,944 — 57,627 4,317 Equity securities 855 734 73 48 Other invested assets: Derivative assets: Interest rate swaps 590 — 590 — Foreign currency swaps 5 — 5 — Equity index options 81 — — 81 Equity return swaps 2 — 2 — Other foreign currency contracts 65 — 65 — Total derivative assets 743 — 662 81 Securities lending collateral 226 — 226 — Total other invested assets 969 — 888 81 Restricted other invested assets related to securitization entities 81 — 81 — Reinsurance recoverable (1) 15 — — 15 Separate account assets 7,269 7,269 — — Total assets $ 71,133 $ 8,003 $ 58,669 $ 4,461 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. December 31, 2016 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 6,036 $ — $ 6,034 $ 2 State and political subdivisions 2,647 — 2,610 37 Non-U.S. government 2,107 — 2,107 — U.S. corporate: Utilities 4,550 — 3,974 576 Energy 2,300 — 2,090 210 Finance and insurance 6,097 — 5,311 786 Consumer—non-cyclical 4,734 — 4,613 121 Technology and communications 2,598 — 2,544 54 Industrial 1,223 — 1,175 48 Capital goods 2,258 — 2,106 152 Consumer—cyclical 1,530 — 1,272 258 Transportation 1,190 — 1,051 139 Other 348 — 205 143 Total U.S. corporate 26,828 — 24,341 2,487 Non-U.S. corporate: Utilities 969 — 583 386 Energy 1,331 — 1,125 206 Finance and insurance 2,538 — 2,356 182 Consumer—non-cyclical 714 — 575 139 Technology and communications 987 — 920 67 Industrial 958 — 849 109 Capital goods 535 — 366 169 Consumer—cyclical 442 — 373 69 Transportation 677 — 496 181 Other 3,144 — 3,119 25 Total non-U.S. corporate 12,295 — 10,762 1,533 Residential mortgage-backed 4,379 — 4,336 43 Commercial mortgage-backed 3,129 — 3,075 54 Other asset-backed 3,151 — 3,006 145 Total fixed maturity securities 60,572 — 56,271 4,301 Equity securities 632 551 34 47 Other invested assets: Trading securities 259 — 259 — Derivative assets: Interest rate swaps 596 — 596 — Foreign currency swaps 4 — 4 — Equity index options 72 — — 72 Equity return swaps 1 — 1 — Other foreign currency contracts 35 — 32 3 Total derivative assets 708 — 633 75 Securities lending collateral 534 — 534 — Total other invested assets 1,501 — 1,426 75 Restricted other invested assets related to securitization entities 312 — 181 131 Reinsurance recoverable (1) 16 — — 16 Separate account assets 7,299 7,299 — — Total assets $ 70,332 $ 7,850 $ 57,912 $ 4,570 (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: Total realized and Total gains net income (Amounts in millions) Beginning Included in net income Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 1 $ — $ — $ — $ — $ — $ — $ — $ — $ 1 $ — State and political subdivisions 37 — — — — — — — — 37 — U.S. corporate: Utilities 578 — 13 30 — — — 30 (13 ) 638 — Energy 162 — 4 — — — (7 ) 1 — 160 — Finance and insurance 818 4 39 24 (7 ) — (3 ) — (14 ) 861 4 Consumer—non-cyclical 122 — — — — — — — — 122 — Technology and communications 59 — 5 4 — — — — (10 ) 58 — Industrial 47 — 1 13 — — — — — 61 — Capital goods 153 — 2 — — — — — (37 ) 118 — Consumer—cyclical 263 — 4 — — — (1 ) — — 266 — Transportation 97 — 4 — — — (1 ) — — 100 1 Other 142 — — — — — (3 ) 37 — 176 — Total U.S. corporate 2,441 4 72 71 (7 ) — (15 ) 68 (74 ) 2,560 5 Non-U.S. corporate: Utilities 386 — 3 — — — — — (30 ) 359 — Energy 206 — 3 — — — — — (32 ) 177 — Finance and insurance 168 1 4 4 — — (5 ) — — 172 1 Consumer—non-cyclical 129 — 1 — — — (1 ) — — 129 — Tech |
Deferred Acquisition Costs
Deferred Acquisition Costs | 6 Months Ended |
Jun. 30, 2017 | |
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 six June 30, (Amounts in millions) 2017 2016 Unamortized beginning balance $ 4,241 $ 4,569 Impact of foreign currency translation 6 8 Costs deferred 44 91 Amortization, net of interest accretion (197 ) (177 ) Unamortized ending balance 4,094 4,491 Accumulated effect of net unrealized investment (gains) losses (1,716 ) (445 ) Ending balance $ 2,378 $ 4,046 We regularly review DAC to determine if it is recoverable from future income. In the second quarters of 2017 and 2016, we performed our loss recognition testing and determined that we had a premium deficiency in our fixed immediate annuity products. As of June 30, 2016, we wrote off the entire DAC balance for our fixed immediate annuity products of $14 million through amortization. In addition, as a result of our fixed immediate annuity loss recognition testing as of June 30, 2017 and 2016, we increased our future policy benefit reserves and recognized expenses of $22 million and $18 million, respectively. The premium deficiency test results were primarily driven by the low interest rate environments. As of June 30, 2017, we believe all of our other businesses had sufficient future income and therefore the related DAC was recoverable. In addition, we are required to analyze the impacts from net unrealized investment gains and losses on our available-for-sale investment securities backing insurance liabilities, as if those unrealized investment gains and losses were realized. These “shadow accounting” adjustments allow for the impact of recognizing unrealized gains and losses on related insurance assets and liabilities in a manner consistent with the recognition of the unrealized gains and losses on available-for-sale investment securities within the statements of comprehensive income and changes in equity. Changes to net unrealized investment (gains) losses may increase or decrease the ending DAC balance. Similar to a loss recognition event, when the DAC balance is reduced to zero, additional insurance liabilities are established if necessary. Unlike a loss recognition event, based on changes in net unrealized investment (gains) losses, these shadow adjustments may reverse from period to period. As of June 30, 2017, due primarily to the decline in interest rates increasing unrealized investments gains, we reduced the DAC balance of our long-term care insurance business to zero, a cumulative decrease in the accumulated effect of net unrealized investment gains of approximately $1.3 billion out of the total $1.7 billion in the table above, with an offsetting amount recorded in other comprehensive income. There was no impact to net income. |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 6 Months Ended |
Jun. 30, 2017 | |
Liability for Policy and Contract Claims | (8) Liability for Policy and Contract Claims The following table sets forth changes in our liability for policy and contract claims as of the dates indicated: As of or for the six June 30, (Amounts in millions) 2017 2016 Beginning balance $ 9,256 $ 8,095 Less reinsurance recoverables (2,409 ) (2,122 ) Net beginning balance 6,847 5,973 Incurred related to insured events of: Current year 1,804 1,608 Prior years (244 ) 32 Total incurred 1,560 1,640 Paid related to insured events of: Current year (450 ) (443 ) Prior years (1,224 ) (1,162 ) Total paid (1,674 ) (1,605 ) Interest on liability for policy and contract claims 147 123 Foreign currency translation 18 10 Net ending balance 6,898 6,141 Add reinsurance recoverables 2,341 2,148 Ending balance $ 9,239 $ 8,289 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. As of the six months ended June 30, 2017, the favorable development of $244 million related to insured events of prior years was primarily attributable to favorable claim terminations in our long-term care insurance business. To a lesser degree, our mortgage insurance businesses also experienced favorable prior year claim development from an improvement in net cures and aging of existing claims, as well as improvement in the estimated claim severity or amount. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Taxes | (9) 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 June 30, Six months ended June 30, (Amounts in millions) 2017 2016 2017 2016 Pre-tax income $ 401 $ 351 $ 733 $ 501 Statutory U.S. federal income tax rate $ 140 35.0 % $ 122 35.0 % $ 257 35.0 % $ 175 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect 1 0.2 — — (2 ) (0.3 ) 1 0.2 Tax favored investments (3 ) (0.7 ) (2 ) (0.5 ) (2 ) (0.3 ) (3 ) (0.6 ) Effect of foreign operations (8 ) (2.0 ) (11 ) (3.2 ) (8 ) (1.0 ) (17 ) (3.4 ) Reversal of valuation allowance — — — — — — (25 ) (5.0 ) Stock-based compensation — — — — 1 0.2 3 0.6 Loss on sale of business — — 1 0.2 — — (1 ) (0.2 ) Other, net — — — (0.2 ) — — — (0.1 ) Effective rate $ 130 32.5 % $ 110 31.3 % $ 246 33.6 % $ 133 26.5 % For the three months ended June 30, 2017, the effective tax rate increased primarily attributable to a decrease in tax benefits from lower taxed foreign income. The increase was partially offset by an increase in tax favored investment benefits and tax impacts related to the sale of our mortgage insurance business in Europe in the prior year that did not recur. The effective tax rate for the six months ended June 30, 2017 increased primarily related to the reversal of a deferred tax valuation allowance related to our mortgage insurance business in Europe during the prior year, a decrease in tax benefits from lower taxed foreign income, and prior year true-ups recorded in the current year. These increases were partially offset by a decrease to tax expense related to stock based compensation in the current year. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information | (10) Segment Information We have the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S Life Insurance (which includes our long-term care insurance, life insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic products which have not been actively sold). In addition to our five operating business segments, 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 certain smaller international mortgage insurance businesses and discontinued operations. We allocate our consolidated provision for income taxes to our operating segments. Our allocation 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. 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. We use the same accounting policies and procedures to measure segment income and assets as our consolidated net income and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income available to Genworth Financial, Inc.’s common stockholders as income 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 adjusted operating income available to Genworth Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income available to Genworth Financial, Inc.’s common stockholders if, in our opinion, they are not indicative of overall operating trends. While some of these items may be significant components of net income available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income attributable to the ongoing operations of the business. Management also uses adjusted operating income available to Genworth Financial, Inc.’s common stockholders 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 adjusted operating income available to Genworth Financial, Inc.’s common stockholders have occurred in the past and could, and in some cases will, recur in the future. Adjusted operating income available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies. Adjustments to reconcile net income attributable to Genworth Financial, Inc.’s common stockholders and adjusted operating income available to Genworth Financial, Inc.’s common stockholders assume a 35% tax rate (unless otherwise indicated) 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. In the first quarter of 2017, we recorded a pre-tax expense of $1 million related to restructuring costs as the company continues to evaluate and appropriately size its organizational needs and expenses. In the first quarter of 2016, we recorded a pre-tax loss of $7 million and a tax benefit of $27 million related to the planned sale of our mortgage insurance business in Europe; we paid a pre-tax make-whole expense of $20 million related to the early redemption of Genworth Holdings’ 2016 notes; we also repurchased $28 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax gain of $4 million; we completed a life block transaction resulting in a pre-tax loss of $9 million in connection with the early extinguishment of non-recourse funding obligations; and we recorded a pre-tax expense of $15 million related to restructuring costs as part of an expense reduction plan as the company evaluates and appropriately sizes its organizational needs and expenses. In the second quarter of 2016, we completed the sale of our mortgage insurance business in Europe and recorded an additional pre-tax loss of $2 million; we completed the sale of our term life insurance new business platform and recorded a pre-tax gain of $12 million; we settled restricted borrowings related to a securitization entity and recorded a $64 million pre-tax gain related to the early extinguishment of debt; and we recorded a pre-tax expense of $5 million related to restructuring costs as part of an expense reduction plan as the company evaluates and appropriately sizes its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income during the periods presented other than the following item. We incurred fees during the first quarter of 2016 related to Genworth Holdings’ bond consent solicitation of $18 million for broker, advisor and investment banking fees. The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated: Three months ended June 30, Six months ended (Amounts in millions) 2017 2016 2017 2016 Revenues: U.S. Mortgage Insurance segment $ 189 $ 176 $ 376 $ 351 Canada Mortgage Insurance segment 204 147 373 307 Australia Mortgage Insurance segment 97 113 219 218 U.S. Life Insurance segment: Long-term care insurance 1,036 1,119 2,030 2,071 Life insurance 411 412 828 535 Fixed annuities 210 189 415 395 U.S. Life Insurance segment 1,657 1,720 3,273 3,001 Runoff segment 89 65 176 134 Corporate and Other activities (13 ) 15 (23 ) 10 Total revenues $ 2,223 $ 2,236 $ 4,394 $ 4,021 The increase in total revenues for the six months ended June 30, 2017 was primarily attributable to our U.S. Life Insurance segment driven mostly by a life block transaction in our life insurance business in the first quarter of 2016, under which we initially ceded $326 million of certain term life insurance premiums. The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated: Three months ended June 30, Six months ended June 30, (Amounts in millions) 2017 2016 2017 2016 Net income available to Genworth Financial, Inc.’s common stockholders $ 202 $ 172 $ 357 $ 225 Add: net income attributable to noncontrolling interests 69 48 130 103 Net income 271 220 487 328 Loss from discontinued operations, net of taxes — (21 ) — (40 ) Income from continuing operations 271 241 487 368 Less: income from continuing operations attributable to noncontrolling interests 69 48 130 103 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders 202 193 357 265 Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (79 ) (39 ) (99 ) (20 ) Gains from sale of businesses — (10 ) — (3 ) Gains on early extinguishment of debt, net — (64 ) — (48 ) Losses from life block transactions — — — 9 Expenses related to restructuring — 5 1 20 Fees associated with bond consent solicitation — — — 18 Taxes on adjustments 28 38 35 (15 ) Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 151 $ 123 $ 294 $ 226 (1) For the three months ended June 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(6) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $22 million and $(3) million, respectively. For the six months ended June 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(15) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $36 million and $6 million, respectively. Three months ended Six months ended June 30, (Amounts in millions) 2017 2016 2017 2016 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 91 $ 61 $ 164 $ 122 Canada Mortgage Insurance segment 41 38 77 71 Australia Mortgage Insurance segment 12 15 25 34 U.S. Life Insurance segment: Long-term care insurance 33 37 47 71 Life insurance (1 ) 31 15 62 Fixed annuities 7 (13 ) 30 13 U.S. Life Insurance segment 39 55 92 146 Runoff segment 11 6 25 10 Corporate and Other activities (43 ) (52 ) (89 ) (157 ) Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 151 $ 123 $ 294 $ 226 The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) June 30, December 31, Assets: U.S. Mortgage Insurance segment $ 2,877 $ 2,674 Canada Mortgage Insurance segment 5,141 4,884 Australia Mortgage Insurance segment 2,822 2,619 U.S. Life Insurance segment 82,019 81,933 Runoff segment 11,075 11,352 Corporate and Other activities 1,082 1,196 Total assets $ 105,016 $ 104,658 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies | (11) 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, product 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 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, post-closing obligations associated with previous dispositions and securities lawsuits. 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 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 January 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by International Union of Operating Engineers Local No. 478 Pension Fund, Richard L. Salberg and David Pinkoski in the Court of Chancery of the State of Delaware. The case was captioned Int’l Union of Operating Engineers Local No. 478 Pension Fund, et al v. McInerney, et al. Cohen v. McInerney, et al Genworth Financial, Inc. Consolidated Derivative Litigation In October 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its current chief financial officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by Esther Chopp in the Court of Chancery of the State of Delaware. The case is captioned Chopp v. McInerney, et al. In December 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, two former chief financial officers, and two of its insurance subsidiaries were named as defendants in a putative class action lawsuit captioned Leifer, et al v. Genworth Financial, Inc., et al, In January 2017, two putative stockholder class action lawsuits, captioned Rice v. Genworth Financial Incorporated et al James v. Genworth Financial, Inc. et al, Rosenfeld Family Trust v. Genworth Financial, Inc. et al, Chopp v. Genworth Financial, Inc et al, Ratliff v. Genworth Financial, Inc et al, Rice Rice Rosenfeld Family Trust Rosenfeld Family Trust Chopp Rice, James Ratliff Rosenfeld Family Trust Rosenfeld Family Trust Chopp Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rice James Ratliff Rosenfeld Family Trust Chopp In April 2017, one of our insurance subsidiaries, Genworth Life and Annuity Insurance Company (“GLAIC”) was named as a defendant in a putative class action lawsuit captioned Avazian, et al v. Genworth Life and Annuity Insurance Company Avazian, et al v. Genworth Life and Annuity Insurance Company, et al, 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 June 30, 2017, we were committed to fund $268 million in limited partnership investments, $23 million in U.S. commercial mortgage loan investments and $36 million in private placement investments. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
Changes in Accumulated Other Comprehensive Income | (12) Changes in Accumulated Other Comprehensive Income The following tables show the changes in accumulated other comprehensive income, net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives hedges (2) Foreign Total Balances as of April 1, 2017 $ 1,243 $ 2,036 $ (183 ) $ 3,096 OCI before reclassifications (32 ) 48 61 77 Amounts reclassified from (to) OCI (40 ) (20 ) — (60 ) Current period OCI (72 ) 28 61 17 Balances as of June 30, 2017 before noncontrolling interests 1,171 2,064 (122 ) 3,113 Less: change in OCI attributable to noncontrolling interests (9 ) — 27 18 Balances as of June 30, 2017 $ 1,180 $ 2,064 $ (149 ) $ 3,095 (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 hedges (2) Foreign Total Balances as of April 1, 2016 $ 2,057 $ 2,302 $ (174 ) $ 4,185 OCI before reclassifications 815 160 8 983 Amounts reclassified from (to) OCI (65 ) (23 ) — (88 ) Current period OCI 750 137 8 895 Balances as of June 30, 2016 before noncontrolling interests 2,807 2,439 (166 ) 5,080 Less: change in OCI attributable to noncontrolling interests 18 — (26 ) (8 ) Balances as of June 30, 2016 $ 2,789 $ 2,439 $ (140 ) $ 5,088 (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 hedges (2) Foreign Total Balances as of January 1, 2017 $ 1,262 $ 2,085 $ (253 ) $ 3,094 OCI before reclassifications (25 ) 19 180 174 Amounts reclassified from (to) OCI (58 ) (40 ) — (98 ) Current period OCI (83 ) (21 ) 180 76 Balances as of June 30, 2017 before noncontrolling interests 1,179 2,064 (73 ) 3,170 Less: change in OCI attributable to noncontrolling interests (1 ) — 76 75 Balances as of June 30, 2017 $ 1,180 $ 2,064 $ (149 ) $ 3,095 (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, 2016 $ 1,254 $ 2,045 $ (289 ) $ 3,010 OCI before reclassifications 1,606 435 224 2,265 Amounts reclassified from (to) OCI (53 ) (41 ) — (94 ) Current period OCI 1,553 394 224 2,171 Balances as of June 30, 2016 before noncontrolling interests 2,807 2,439 (65 ) 5,181 Less: change in OCI attributable to noncontrolling interests 18 — 75 93 Balances as of June 30, 2016 $ 2,789 $ 2,439 $ (140 ) $ 5,088 (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 $(5) million and $(6) million, respectively, net of taxes of $1 million and $2 million, respectively, related to a net unrecognized postretirement benefit obligation as of June 30, 2017 and 2016. Amount also included taxes of $23 million and $54 million, respectively, related to foreign currency translation adjustments as of June 30, 2017 and 2016. The following table shows reclassifications in (out) of accumulated other comprehensive income, net of taxes, for the periods presented: Amount reclassified from Affected line item in the consolidated statements of income Three months Six months (Amounts in millions) 2017 2016 2017 2016 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (61 ) $ (100 ) $ (89 ) $ (82 ) Net investment (gains) losses Provision for income taxes 21 35 31 29 Provision for income taxes Total $ (40 ) $ (65 ) $ (58 ) $ (53 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (31 ) $ (28 ) $ (61 ) $ (53 ) Net investment income Interest rate swaps hedging assets (1 ) — (2 ) (1 ) Net investment (gains) losses Inflation indexed swaps — — — (2 ) Net investment income Inflation indexed swaps — (7 ) — (7 ) Net investment (gains) losses Provision for income taxes 12 12 23 22 Provision for income taxes Total $ (20 ) $ (23 ) $ (40 ) $ (41 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Consolidating Financial Information | (13) 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 presents the condensed consolidating balance sheet information as of June 30, 2017 and December 31, 2016, the condensed consolidating income statement information and the condensed consolidating comprehensive income statement information for the three and six months ended June 30, 2017 and 2016 and the condensed consolidating cash flows statement information for the six months ended June 30, 2017 and 2016. 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 June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 62,144 $ (200 ) $ 61,944 Equity securities available-for-sale, at fair value — — 855 — 855 Commercial mortgage loans — — 6,237 — 6,237 Restricted commercial mortgage loans related to securitization entities — — 118 — 118 Policy loans — — 1,824 — 1,824 Other invested assets — 99 2,080 (2 ) 2,177 Restricted other invested assets related to securitization entities, at fair value — — 81 — 81 Investments in subsidiaries 13,128 12,503 — (25,631 ) — Total investments 13,128 12,602 73,339 (25,833 ) 73,236 Cash and cash equivalents — 758 2,095 — 2,853 Accrued investment income — — 603 (4 ) 599 Deferred acquisition costs — — 2,378 — 2,378 Intangible assets and goodwill — — 334 — 334 Reinsurance recoverable — — 17,609 — 17,609 Other assets 11 137 568 (1 ) 715 Intercompany notes receivable — 135 20 (155 ) — Deferred tax assets — — 23 — 23 Separate account assets — — 7,269 — 7,269 Total assets $ 13,139 $ 13,632 $ 104,238 $ (25,993 ) $ 105,016 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 37,772 $ — $ 37,772 Policyholder account balances — — 24,971 — 24,971 Liability for policy and contract claims — — 9,239 — 9,239 Unearned premiums — — 3,400 — 3,400 Other liabilities 28 201 2,408 (8 ) 2,629 Intercompany notes payable 124 220 11 (355 ) — Borrowings related to securitization entities — — 63 — 63 Non-recourse funding obligations — — 310 — 310 Long-term borrowings — 3,720 485 — 4,205 Deferred tax liability (31 ) (831 ) 1,024 — 162 Separate account liabilities — — 7,269 — 7,269 Total liabilities 121 3,310 86,952 (363 ) 90,020 Equity: Common stock 1 — 2 (2 ) 1 Additional paid-in capital 11,969 9,097 18,382 (27,479 ) 11,969 Accumulated other comprehensive income (loss) 3,095 3,111 3,118 (6,229 ) 3,095 Retained earnings 653 (1,886 ) (6,494 ) 8,380 653 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,018 10,322 15,008 (25,330 ) 13,018 Noncontrolling interests — — 2,278 (300 ) 1,978 Total equity 13,018 10,322 17,286 (25,630 ) 14,996 Total liabilities and equity $ 13,139 $ 13,632 $ 104,238 $ (25,993 ) $ 105,016 The following table presents the condensed consolidating balance sheet information as of December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 60,772 $ (200 ) $ 60,572 Equity securities available-for-sale, at fair value — — 632 — 632 Commercial mortgage loans — — 6,111 — 6,111 Restricted commercial mortgage loans related to securitization entities — — 129 — 129 Policy loans — — 1,742 — 1,742 Other invested assets — 105 1,966 — 2,071 Restricted other invested assets related to securitization entities, at fair value — — 312 — 312 Investments in subsidiaries 12,730 12,308 — (25,038 ) — Total investments 12,730 12,413 71,664 (25,238 ) 71,569 Cash and cash equivalents — 998 1,786 — 2,784 Accrued investment income — — 663 (4 ) 659 Deferred acquisition costs — — 3,571 — 3,571 Intangible assets and goodwill — — 348 — 348 Reinsurance recoverable — — 17,755 — 17,755 Other assets 9 134 530 — 673 Intercompany notes receivable — 84 67 (151 ) — Deferred tax assets 28 — (28 ) — — Separate account assets — — 7,299 — 7,299 Total assets $ 12,767 $ 13,629 $ 103,655 $ (25,393 ) $ 104,658 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 37,063 $ — $ 37,063 Policyholder account balances — — 25,662 — 25,662 Liability for policy and contract claims — — 9,256 — 9,256 Unearned premiums — — 3,378 — 3,378 Other liabilities 39 301 2,581 (5 ) 2,916 Intercompany notes payable 84 267 — (351 ) — Borrowings related to securitization entities — — 74 — 74 Non-recourse funding obligations — — 310 — 310 Long-term borrowings — 3,716 464 — 4,180 Deferred tax liability — (816 ) 869 — 53 Separate account liabilities — — 7,299 — 7,299 Total liabilities 123 3,468 86,956 (356 ) 90,191 Equity: Common stock 1 — — — 1 Additional paid-in capital 11,962 9,097 20,252 (29,349 ) 11,962 Accumulated other comprehensive income (loss) 3,094 3,135 3,116 (6,251 ) 3,094 Retained earnings 287 (2,071 ) (8,792 ) 10,863 287 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,644 10,161 14,576 (24,737 ) 12,644 Noncontrolling interests — — 2,123 (300 ) 1,823 Total equity 12,644 10,161 16,699 (25,037 ) 14,467 Total liabilities and equity $ 12,767 $ 13,629 $ 103,655 $ (25,393 ) $ 104,658 The following table presents the condensed consolidating income statement information for the three months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,111 $ — $ 1,111 Net investment income (1 ) 2 803 (3 ) 801 Net investment gains (losses) — (5 ) 106 — 101 Policy fees and other income — (1 ) 211 — 210 Total revenues (1 ) (4 ) 2,231 (3 ) 2,223 Benefits and expenses: Benefits and other changes in policy reserves — — 1,206 — 1,206 Interest credited — — 163 — 163 Acquisition and operating expenses, net of deferrals 15 — 225 — 240 Amortization of deferred acquisition costs and intangibles — — 139 — 139 Interest expense — 66 11 (3 ) 74 Total benefits and expenses 15 66 1,744 (3 ) 1,822 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (16 ) (70 ) 487 — 401 Provision (benefit) for income taxes (7 ) (24 ) 161 — 130 Equity in income of subsidiaries 211 145 — (356 ) — Income from continuing operations 202 99 326 (356 ) 271 Loss from discontinued operations, net of taxes — — — — — Net income 202 99 326 (356 ) 271 Less: net income attributable to noncontrolling interests — — 69 — 69 Net income available to Genworth Financial, Inc.’s common stockholders $ 202 $ 99 $ 257 $ (356 ) $ 202 The following table presents the condensed consolidating income statement information for the three months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,127 $ — $ 1,127 Net investment income — 1 781 (3 ) 779 Net investment gains (losses) — 2 28 — 30 Policy fees and other income — (2 ) 303 (1 ) 300 Total revenues — 1 2,239 (4 ) 2,236 Benefits and expenses: Benefits and other changes in policy reserves — — 1,193 — 1,193 Interest credited — — 173 — 173 Acquisition and operating expenses, net of deferrals 17 3 307 — 327 Amortization of deferred acquisition costs and intangibles — — 112 — 112 Interest expense — 70 14 (4 ) 80 Total benefits and expenses 17 73 1,799 (4 ) 1,885 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (17 ) (72 ) 440 — 351 Provision (benefit) for income taxes (3 ) (24 ) 137 — 110 Equity in income of subsidiaries 188 179 — (367 ) — Income from continuing operations 174 131 303 (367 ) 241 Loss from discontinued operations, net of taxes (2 ) (18 ) (1 ) — (21 ) Net income 172 113 302 (367 ) 220 Less: net income attributable to noncontrolling interests — — 48 — 48 Net income available to Genworth Financial, Inc.’s common stockholders $ 172 $ 113 $ 254 $ (367 ) $ 172 The following table presents the condensed consolidating income statement information for the six months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 2,247 $ — $ 2,247 Net investment income (2 ) 3 1,597 (7 ) 1,591 Net investment gains (losses) — (8 ) 143 — 135 Policy fees and other income — (1 ) 422 — 421 Total revenues (2 ) (6 ) 4,409 (7 ) 4,394 Benefits and expenses: Benefits and other changes in policy reserves — — 2,452 — 2,452 Interest credited — — 330 — 330 Acquisition and operating expenses, net of deferrals 28 — 482 — 510 Amortization of deferred acquisition costs and intangibles — — 233 — 233 Interest expense — 121 22 (7 ) 136 Total benefits and expenses 28 121 3,519 (7 ) 3,661 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (30 ) (127 ) 890 — 733 Provision (benefit) for income taxes (4 ) (44 ) 294 — 246 Equity in income of subsidiaries 383 268 — (651 ) — Income from continuing operations 357 185 596 (651 ) 487 Loss from discontinued operations, net of taxes — — — — — Net income 357 185 596 (651 ) 487 Less: net income attributable to noncontrolling interests — — 130 — 130 Net income available to Genworth Financial, Inc.’s common stockholders $ 357 $ 185 $ 466 $ (651 ) $ 357 The following table presents the condensed consolidating income statement information for the six months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,921 $ — $ 1,921 Net investment income (1 ) — 1,576 (7 ) 1,568 Net investment gains (losses) — (13 ) 24 — 11 Policy fees and other income — (6 ) 528 (1 ) 521 Total revenues (1 ) (19 ) 4,049 (8 ) 4,021 Benefits and expenses: Benefits and other changes in policy reserves — — 2,053 — 2,053 Interest credited — — 350 — 350 Acquisition and operating expenses, net of deferrals 105 38 578 — 721 Amortization of deferred acquisition costs and intangibles — — 211 — 211 Interest expense 1 141 51 (8 ) 185 Total benefits and expenses 106 179 3,243 (8 ) 3,520 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (107 ) (198 ) 806 — 501 Provision (benefit) for income taxes (27 ) (67 ) 227 — 133 Equity in income of subsidiaries 307 285 — (592 ) — Income from continuing operations 227 154 579 (592 ) 368 Loss from discontinued operations, net of taxes (2 ) (18 ) (20 ) — (40 ) Net income 225 136 559 (592 ) 328 Less: net income attributable to noncontrolling interests — — 103 — 103 Net income available to Genworth Financial, Inc.’s common stockholders $ 225 $ 136 $ 456 $ (592 ) $ 225 The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 202 $ 99 $ 326 $ (356 ) $ 271 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (63 ) (70 ) (71 ) 132 (72 ) Net unrealized gains (losses) on other-than-temporarily impaired securities — — — — — Derivatives qualifying as hedges 28 28 32 (60 ) 28 Foreign currency translation and other adjustments 34 29 61 (63 ) 61 Total other comprehensive income (loss) (1 ) (13 ) 22 9 17 Total comprehensive income 201 86 348 (347 ) 288 Less: comprehensive income attributable to noncontrolling interests — — 87 — 87 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 201 $ 86 $ 261 $ (347 ) $ 201 The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 172 $ 113 $ 302 $ (367 ) $ 220 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 727 703 743 (1,428 ) 745 Net unrealized gains (losses) on other-than-temporarily impaired securities 5 6 6 (12 ) 5 Derivatives qualifying as hedges 137 137 149 (286 ) 137 Foreign currency translation and other adjustments 34 (18 ) 7 (15 ) 8 Total other comprehensive income (loss) 903 828 905 (1,741 ) 895 Total comprehensive income 1,075 941 1,207 (2,108 ) 1,115 Less: comprehensive income attributable to noncontrolling interests — — 40 — 40 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 1,075 $ 941 $ 1,167 $ (2,108 ) $ 1,075 The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 357 $ 185 $ 596 $ (651 ) $ 487 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (83 ) (101 ) (84 ) 184 (84 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 1 (2 ) 1 Derivatives qualifying as hedges (21 ) (21 ) (20 ) 41 (21 ) Foreign currency translation and other adjustments 104 97 180 (201 ) 180 Total other comprehensive income (loss) 1 (24 ) 77 22 76 Total comprehensive income 358 161 673 (629 ) 563 Less: comprehensive income attributable to noncontrolling interests — — 205 — 205 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 358 $ 161 $ 468 $ (629 ) $ 358 The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 225 $ 136 $ 559 $ (592 ) $ 328 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 1,534 1,492 1,552 (3,026 ) 1,552 Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 2 (3 ) 1 Derivatives qualifying as hedges 394 393 424 (817 ) 394 Foreign currency translation and other adjustments 149 68 224 (217 ) 224 Total other comprehensive income (loss) 2,078 1,954 2,202 (4,063 ) 2,171 Total comprehensive income 2,303 2,090 2,761 (4,655 ) 2,499 Less: comprehensive income attributable to noncontrolling interests — — 196 — 196 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 2,303 $ 2,090 $ 2,565 $ (4,655 ) $ 2,303 The following table presents the condensed consolidating cash flows statement information for the six months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income $ 357 $ 185 $ 596 $ (651 ) $ 487 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (383 ) (268 ) — 651 — Dividends from subsidiaries — 64 (64 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 3 (79 ) — (76 ) Net investment (gains) losses — 8 (143 ) — (135 ) Charges assessed to policyholders — — (365 ) — (365 ) Acquisition costs deferred — — (44 ) — (44 ) Amortization of deferred acquisition costs and intangibles — — 233 — 233 Deferred income taxes 6 (14 ) 174 — 166 Trading securities, held-for-sale investments and derivative instruments — 1 430 — 431 Stock-based compensation expense 14 — 4 — 18 Change in certain assets and liabilities: Accrued investment income and other assets (6 ) (30 ) 12 1 (23 ) Insurance reserves — — 806 — 806 Current tax liabilities (4 ) (88 ) 60 — (32 ) Other liabilities, policy and contract claims and other policy-related balances (9 ) 64 (210 ) (3 ) (158 ) Net cash from operating activities (25 ) (75 ) 1,410 (2 ) 1,308 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 2,358 — 2,358 Commercial mortgage loans — — 307 — 307 Restricted commercial mortgage loans related to securitization entities — — 11 — 11 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,587 — 2,587 Purchases and originations of investments: Fixed maturity and equity securities — (46 ) (4,687 ) — (4,733 ) Commercial mortgage loans — — (431 ) — (431 ) Other invested assets, net — — (640 ) 2 (638 ) Policy loans, net — — 21 — 21 Intercompany notes receivable — (51 ) 47 4 — Capital contributions to subsidiaries (7 ) — 7 — — Payments for business purchased, net of cash acquired (7 ) — 2 — (5 ) Net cash used by investing activities (14 ) (97 ) (418 ) 6 (523 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 429 — 429 Withdrawals from universal life and investment contracts — — (1,091 ) — (1,091 ) Repayment of borrowings related to securitization entities — — (12 ) — (12 ) Dividends paid to noncontrolling interests — — (52 ) — (52 ) Proceeds from intercompany notes payable 40 (47 ) 11 (4 ) — Other, net (1 ) (21 ) (7 ) — (29 ) Net cash used by financing activities 39 (68 ) (722 ) (4 ) (755 ) Effect of exchange rate changes on cash and cash equivalents — — 39 — 39 Net change in cash and cash equivalents — (240 ) 309 — 69 Cash and cash equivalents at beginning of period — 998 1,786 — 2,784 Cash and cash equivalents at end of period $ — $ 758 $ 2,095 $ — $ 2,853 The following table presents the condensed consolidating cash flows statement information for the six months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income $ 225 $ 136 $ 559 $ (592 ) $ 328 Less loss from discontinued operations, net of taxes 2 18 20 — 40 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (307 ) (285 ) — 592 — Dividends from subsidiaries — 178 (178 ) — — (Gain) loss on sale of businesses — 1 (27 ) — (26 ) Amortization of fixed maturity securities discounts and premiums and limited partnerships — 2 (69 ) — (67 ) Net investment (gains) losses — 13 (24 ) — (11 ) Charges assessed to policyholders — — (384 ) — (384 ) Acquisition costs deferred — — (91 ) — (91 ) Amortization of deferred acquisition costs and intangibles — — 211 — 211 Deferred income taxes (9 ) 116 (103 ) — 4 Trading securities, held-for-sale investments and derivative instruments — 6 737 — 743 Stock-based compensation expense 12 — 4 — 16 Change in certain assets and liabilities: Accrued investment income and other assets 3 (139 ) (49 ) (1 ) (186 ) Insurance reserves — — 332 — 332 Current tax liabilities — (147 ) 203 — 56 Other liabilities, policy and contract claims and other policy-related balances (2 ) 115 (7 ) (5 ) 101 Net cash from operating activities (76 ) 14 1,134 (6 ) 1,066 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 150 1,530 — 1,680 Commercial mortgage loans — — 364 — 364 Restricted commercial mortgage loans related to securitization entities — — 20 — 20 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,772 — 2,772 Purchases and originations of investments: Fixed maturity and equity securities — — (5,685 ) — (5,685 ) Commercial mortgage loans — — (317 ) — (317 ) Other invested assets, net — — (73 ) 6 (67 ) Policy loans, net — — (90 ) — (90 ) Intercompany notes receivable — (84 ) 21 63 — Proceeds from sale of businesses, net of cash transferred — 1 38 — 39 Net cash used by investing activities — 67 (1,420 ) 69 (1,284 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 810 — 810 Withdrawals from universal life and investment contracts — — (1,021 ) — (1,021 ) Redemption of non-recourse funding obligations — — (1,620 ) — (1,620 ) Repayment and repurchase of long-term debt — (326 ) (36 ) — (362 ) Repayment of borrowings related to securitization entities — — (30 ) — (30 ) Return of capital to noncontrolling interests — — (70 ) — (70 ) Dividends paid to noncontrolling interests — — (64 ) — (64 ) Proceeds from intercompany notes payable 76 (21 ) 8 (63 ) — Other, net — (24 ) 33 — 9 Net cash used by financing activities 76 (371 ) (1,990 ) (63 ) (2,348 ) Effect of exchange rate changes on cash and cash equivalents — — 30 — 30 Net change in cash and cash equivalents — (290 ) (2,246 ) — (2,536 ) Cash and cash equivalents at beginning of period — 1,124 4,869 — 5,993 Cash and cash equivalents at end of period $ — $ 834 $ 2,623 $ — $ 3,457 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 statutory results as of December 31, 2016, in accordance with applicable dividend restrictions, our subsidiaries could pay dividends of approximately $220 million to us in 2017 without obtaining regulatory approval, and the remaining net assets are considered restricted. While the $220 million is unrestricted, we do not expect our insurance subsidiaries to pay dividends to us in 2017 at this level as they need to retain capital for growth and to meet capital requirements and desired thresholds. As of June 30, 2017, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $12.9 billion and $12.3 billion, respectively. |
Accounting Changes (Policies)
Accounting Changes (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Pronouncement Recently Adopted | Accounting Pronouncements Recently Adopted On January 1, 2017, we adopted new accounting guidance related to the accounting for stock compensation. The guidance primarily simplifies the accounting for employee share-based payment transactions, including a new requirement to record all of the income tax effects at settlement or expiration through the income statement, classifications of awards as either equity or liabilities, and classification on the statement of cash flows. We adopted this new accounting guidance on a modified retrospective basis and recorded a previously disallowed deferred tax asset of $9 million with a corresponding increase to cumulative effect of change in accounting within retained earnings at adoption. On January 1, 2017, we adopted new accounting guidance related to transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. We did not have any significant impact from this guidance on our consolidated financial statements. On January 1, 2017, we adopted new accounting guidance related to the assessment of contingent put and call options in debt instruments. The guidance clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. This guidance is consistent with our previous accounting practices and, accordingly, did not have any impact on our consolidated financial statements. On January 1, 2017, we adopted new accounting guidance related to the effect of derivative contract novations on existing hedge accounting relationships. The guidance clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. This guidance is consistent with our previous accounting for derivative contract novations and, accordingly, did not have any impact on our consolidated financial statements. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In May 2017, the Financial Accounting Standards Board (“the FASB”) issued new guidance to clarify when to account for a change to share-based compensation as a modification. The new guidance requires modification accounting only if there are changes to the fair value, vesting conditions or classification, as a liability or equity, of the share-based compensation. The guidance is effective, prospectively, for us on January 1, 2018, accordingly, the guidance will not have any impact at adoption. In March 2017, the FASB issued new guidance shortening the amortization period for the premium component of callable debt securities purchased at a premium. The guidance requires the premium to be amortized to the earliest call date. This change does not apply to securities held at a discount. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating the impact the guidance may have on our consolidated financial statements. In February 2017, the FASB issued new guidance to clarify the accounting for gains and losses from the derecognition of nonfinancial assets and accounting for partial sales of nonfinancial assets. The new guidance clarifies when transferring ownership interests in a consolidated subsidiary holding nonfinancial assets is within scope. It also states that the reporting entity should identify each distinct nonfinancial asset and derecognize when a counterparty obtains control, and clarifies the accounting for partial sales. The new guidance is currently effective for us on January 1, 2018. We do not expect any significant impacts from this guidance on our consolidated financial statements. In January 2017, the FASB issued new guidance simplifying the test for goodwill impairment. The new guidance states goodwill impairment is equal to the difference between the carrying value and fair value of the reporting unit up to the amount of recorded goodwill. The new guidance is currently effective for us on January 1, 2020, with early adoption permitted for testing dates after January 1, 2017. We do not expect any significant impacts from this new guidance on our consolidated financial statements. In October 2016, the FASB issued new guidance related to the income tax effects of intra-entity transfers of assets other than inventory. The new guidance states that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The guidance is currently effective for us on January 1, 2018. We are still in process of evaluating the impact the guidance may have on our consolidated financial statements, including any cumulative effect adjustment that will be recorded directly to retained earnings as of the beginning of the period of adoption. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | Basic and diluted earnings 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 Six months ended (Amounts in millions, except per share amounts) 2017 2016 2017 2016 Weighted-average shares used in basic earnings per share calculations 499.0 498.5 498.8 498.3 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 2.2 1.9 2.3 1.6 Weighted-average shares used in diluted earnings per share calculations 501.2 500.4 501.1 499.9 Income from continuing operations: Income from continuing operations $ 271 $ 241 $ 487 $ 368 Less: income from continuing operations attributable to noncontrolling interests 69 48 130 103 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 202 $ 193 $ 357 $ 265 Basic per share $ 0.40 $ 0.39 $ 0.72 $ 0.53 Diluted per share $ 0.40 $ 0.39 $ 0.71 $ 0.53 Loss from discontinued operations: Loss from discontinued operations, net of taxes $ — $ (21 ) $ — $ (40 ) Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — — — Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ — $ (21 ) $ — $ (40 ) Basic per share $ — $ (0.04 ) $ — $ (0.08 ) Diluted per share $ — $ (0.04 ) $ — $ (0.08 ) Net income: Income from continuing operations $ 271 $ 241 $ 487 $ 368 Loss from discontinued operations, net of taxes — (21 ) — (40 ) Net income 271 220 487 328 Less: net income attributable to noncontrolling interests 69 48 130 103 Net income available to Genworth Financial, Inc.’s common stockholders $ 202 $ 172 $ 357 $ 225 Basic per share $ 0.40 $ 0.35 $ 0.72 $ 0.45 Diluted per share $ 0.40 $ 0.34 $ 0.71 $ 0.45 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Net Investment Income | Sources of net investment income were as follows for the periods indicated: Three months ended Six months ended (Amounts in millions) 2017 2016 2017 2016 Fixed maturity securities—taxable $ 649 $ 634 $ 1,290 1,275 Fixed maturity securities—non-taxable 3 3 6 6 Commercial mortgage loans 76 77 153 158 Restricted commercial mortgage loans related to securitization entities 2 3 4 5 Equity securities 9 7 17 12 Other invested assets 35 33 67 71 Restricted other invested assets related to securitization entities 1 1 1 3 Policy loans 39 34 81 69 Cash, cash equivalents and short-term investments 10 6 16 11 Gross investment income before expenses and fees 824 798 1,635 1,610 Expenses and fees (23 ) (19 ) (44 ) (42 ) Net investment income $ 801 $ 779 $ 1,591 $ 1,568 |
Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the periods indicated: Three months ended Six months ended (Amounts in millions) 2017 2016 2017 2016 Available-for-sale securities: Realized gains $ 74 $ 150 $ 137 $ 166 Realized losses (11 ) (28 ) (45 ) (51 ) Net realized gains (losses) on available-for-sale securities 63 122 92 115 Impairments: Total other-than-temporary impairments (2 ) (22 ) (3 ) (33 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — — Net other-than-temporary impairments (2 ) (22 ) (3 ) (33 ) Trading securities 1 16 1 44 Commercial mortgage loans 1 1 2 2 Net gains (losses) related to securitization entities 2 (61 ) 4 (53 ) Derivative instruments (1) 36 (24 ) 39 (62 ) Other — (2 ) — (2 ) Net investment gains (losses) $ 101 $ 30 $ 135 $ 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 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 June 30, As of or for the six months ended June 30, (Amounts in millions) 2017 2016 2017 2016 Beginning balance $ 41 $ 63 $ 42 $ 64 Additions: Other-than-temporary impairments not previously recognized — 1 — 1 Reductions: Securities sold, paid down or disposed (3 ) (2 ) (4 ) (3 ) Ending balance $ 38 $ 62 $ 38 $ 62 |
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 were as follows as of the dates indicated: (Amounts in millions) June 30, December 31, Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 4,797 $ 3,656 Equity securities 169 12 Subtotal (1) 4,966 3,668 Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (3,038 ) (1,611 ) Income taxes, net (665 ) (711 ) Net unrealized investment gains (losses) 1,263 1,346 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 83 84 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,180 $ 1,262 (1) Excludes foreign exchange. |
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) 2017 2016 Beginning balance $ 1,243 $ 2,057 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 995 1,760 Adjustment to deferred acquisition costs (741 ) (132 ) Adjustment to present value of future profits (28 ) 5 Adjustment to sales inducements (6 ) (21 ) Adjustment to benefit reserves (269 ) (357 ) Provision for income taxes 17 (440 ) Change in unrealized gains (losses) on investment securities (32 ) 815 Reclassification adjustments to net investment (gains) losses, net of taxes of $21 and $35 (40 ) (65 ) Change in net unrealized investment gains (losses) (72 ) 750 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) 18 Ending balance $ 1,180 $ 2,789 As of or for the six months ended (Amounts in millions) 2017 2016 Beginning balance $ 1,262 $ 1,254 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 1,387 3,356 Adjustment to deferred acquisition costs (1,046 ) (274 ) Adjustment to present value of future profits (33 ) (29 ) Adjustment to sales inducements (11 ) (40 ) Adjustment to benefit reserves (337 ) (531 ) Provision for income taxes 15 (876 ) Change in unrealized gains (losses) on investment securities (25 ) 1,606 Reclassification adjustments to net investment (gains) losses, net of taxes of $31 and $29 (58 ) (53 ) Change in net unrealized investment gains (losses) (83 ) 1,553 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (1 ) 18 Ending balance $ 1,180 $ 2,789 |
Fixed Maturity and Equity Securities | As of June 30, 2017, 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 $ 4,861 $ 775 $ — $ (7 ) $ — $ 5,629 State and political subdivisions 2,604 233 — (31 ) — 2,806 Non-U.S. government 1,997 108 — (14 ) — 2,091 U.S. corporate: Utilities 4,331 534 — (17 ) — 4,848 Energy 2,200 184 — (14 ) — 2,370 Finance and insurance 6,026 578 — (14 ) — 6,590 Consumer—non-cyclical 4,296 497 — (11 ) — 4,782 Technology and communications 2,502 187 — (14 ) — 2,675 Industrial 1,250 99 — (5 ) — 1,344 Capital goods 2,021 272 — (6 ) — 2,287 Consumer—cyclical 1,497 110 — (8 ) — 1,599 Transportation 1,082 103 — (6 ) — 1,179 Other 375 23 — (1 ) — 397 Total U.S. corporate 25,580 2,587 — (96 ) — 28,071 Non-U.S. corporate: Utilities 1,009 48 — (4 ) — 1,053 Energy 1,313 131 — (10 ) — 1,434 Finance and insurance 2,418 176 — (4 ) — 2,590 Consumer—non-cyclical 722 28 — (4 ) — 746 Technology and communications 979 67 — (3 ) — 1,043 Industrial 948 70 — (3 ) — 1,015 Capital goods 545 31 — (2 ) — 574 Consumer—cyclical 484 11 — (1 ) — 494 Transportation 638 70 — (4 ) — 704 Other 2,587 195 — (5 ) — 2,777 Total non-U.S. corporate 11,643 827 — (40 ) — 12,430 Residential mortgage-backed 4,045 269 13 (8 ) — 4,319 Commercial mortgage-backed 3,330 111 2 (37 ) — 3,406 Other asset-backed 3,180 18 1 (7 ) — 3,192 Total fixed maturity securities 57,240 4,928 16 (240 ) — 61,944 Equity securities 692 176 — (13 ) — 855 Total available-for-sale securities $ 57,932 $ 5,104 $ 16 $ (253 ) $ — $ 62,799 As of December 31, 2016, 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 $ 5,439 $ 647 $ — $ (50 ) $ — $ 6,036 State and political subdivisions 2,515 182 — (50 ) — 2,647 Non-U.S. government 2,024 101 — (18 ) — 2,107 U.S. corporate: Utilities 4,137 454 — (41 ) — 4,550 Energy 2,167 157 — (24 ) — 2,300 Finance and insurance 5,719 424 — (46 ) — 6,097 Consumer—non-cyclical 4,335 433 — (34 ) — 4,734 Technology and communications 2,473 157 — (32 ) — 2,598 Industrial 1,161 76 — (14 ) — 1,223 Capital goods 2,043 228 — (13 ) — 2,258 Consumer—cyclical 1,455 92 — (17 ) — 1,530 Transportation 1,121 86 — (17 ) — 1,190 Other 332 17 — (1 ) — 348 Total U.S. corporate 24,943 2,124 — (239 ) — 26,828 Non-U.S. corporate: Utilities 940 40 — (11 ) — 969 Energy 1,234 109 — (12 ) — 1,331 Finance and insurance 2,413 134 — (9 ) — 2,538 Consumer—non-cyclical 711 17 — (14 ) — 714 Technology and communications 953 44 — (10 ) — 987 Industrial 928 39 — (9 ) — 958 Capital goods 518 21 — (4 ) — 535 Consumer—cyclical 434 10 — (2 ) — 442 Transportation 619 65 — (7 ) — 677 Other 2,967 190 — (13 ) — 3,144 Total non-U.S. corporate 11,717 669 — (91 ) — 12,295 Residential mortgage-backed 4,122 259 10 (12 ) — 4,379 Commercial mortgage-backed 3,084 98 3 (56 ) — 3,129 Other asset-backed 3,170 15 1 (35 ) — 3,151 Total fixed maturity securities 57,014 4,095 14 (551 ) — 60,572 Equity securities 628 31 — (27 ) — 632 Total available-for-sale securities $ 57,642 $ 4,126 $ 14 $ (578 ) $ — $ 61,204 |
Maturity Distribution of Fixed Maturity Securities | The scheduled maturity distribution of fixed maturity securities as of June 30, 2017 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 $ 1,883 $ 1,906 Due after one year through five years 10,533 10,967 Due after five years through ten years 12,183 12,722 Due after ten years 22,086 25,432 Subtotal 46,685 51,027 Residential mortgage-backed 4,045 4,319 Commercial mortgage-backed 3,330 3,406 Other asset-backed 3,180 3,192 Total $ 57,240 $ 61,944 |
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: June 30, 2017 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than past due Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,199 $ 2,199 Industrial — — — — 1,590 1,590 Office — — — — 1,480 1,480 Apartments — — — — 470 470 Mixed use — — — — 234 234 Other — — — — 277 277 Total recorded investment $ — $ — $ — $ — $ 6,250 $ 6,250 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2016 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than 90 days past due Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,178 $ 2,178 Industrial 1 — 12 13 1,520 1,533 Office — — — — 1,430 1,430 Apartments — — — — 455 455 Mixed use — — — — 245 245 Other — — — — 284 284 Total recorded investment $ 1 $ — $ 12 $ 13 $ 6,112 $ 6,125 % 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 Six months ended (Amounts in millions) 2017 2016 2017 2016 Allowance for credit losses: Beginning balance $ 11 $ 15 $ 12 $ 15 Charge-offs — (4 ) — (4 ) Recoveries — — — — Provision (1 ) 2 (2 ) 2 Ending balance $ 10 $ 13 $ 10 $ 13 Ending allowance for individually impaired loans $ — $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 10 $ 13 $ 10 $ 13 Recorded investment: Ending balance $ 6,250 $ 6,136 $ 6,250 $ 6,136 Ending balance of individually impaired loans $ — $ 23 $ — $ 23 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,250 $ 6,113 $ 6,250 $ 6,113 |
Investment Securities | |
Gross Unrealized Losses and Fair Values of Securities in a Continuous Unrealized Loss Position | 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 June 30, 2017: 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 $ 313 $ (7 ) 23 $ — $ — — $ 313 $ (7 ) 23 State and political subdivisions 364 (15 ) 70 149 (16 ) 13 513 (31 ) 83 Non-U.S. government 695 (13 ) 42 16 (1 ) 8 711 (14 ) 50 U.S. corporate 2,954 (70 ) 434 443 (26 ) 57 3,397 (96 ) 491 Non-U.S. corporate 1,297 (23 ) 208 281 (17 ) 37 1,578 (40 ) 245 Residential mortgage-backed 567 (7 ) 77 51 (1 ) 31 618 (8 ) 108 Commercial mortgage-backed 956 (36 ) 136 25 (1 ) 5 981 (37 ) 141 Other asset-backed 761 (4 ) 137 250 (3 ) 52 1,011 (7 ) 189 Subtotal, fixed maturity securities 7,907 (175 ) 1,127 1,215 (65 ) 203 9,122 (240 ) 1,330 Equity securities 74 (4 ) 152 107 (9 ) 51 181 (13 ) 203 Total for securities in an unrealized loss position $ 7,981 $ (179 ) 1,279 $ 1,322 $ (74 ) 254 $ 9,303 $ (253 ) 1,533 % Below cost—fixed maturity securities: <20% Below cost $ 7,907 $ (175 ) 1,127 $ 1,199 $ (61 ) 200 $ 9,106 $ (236 ) 1,327 20%-50% Below cost — — — 16 (4 ) 3 16 (4 ) 3 Total fixed maturity securities 7,907 (175 ) 1,127 1,215 (65 ) 203 9,122 (240 ) 1,330 % Below cost—equity securities: <20% Below cost 72 (3 ) 151 107 (9 ) 51 179 (12 ) 202 20%-50% Below cost 2 (1 ) 1 — — — 2 (1 ) 1 Total equity securities 74 (4 ) 152 107 (9 ) 51 181 (13 ) 203 Total for securities in an unrealized loss position $ 7,981 $ (179 ) 1,279 $ 1,322 $ (74 ) 254 $ 9,303 $ (253 ) 1,533 Investment grade $ 7,676 $ (168 ) 1,098 $ 1,075 $ (58 ) 194 $ 8,751 $ (226 ) 1,292 Below investment grade 305 (11 ) 181 247 (16 ) 60 552 (27 ) 241 Total for securities in an unrealized loss position $ 7,981 $ (179 ) 1,279 $ 1,322 $ (74 ) 254 $ 9,303 $ (253 ) 1,533 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 June 30, 2017: 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 $ 505 $ (16 ) 79 $ 32 $ (1 ) 5 $ 537 $ (17 ) 84 Energy 203 (3 ) 32 153 (11 ) 18 356 (14 ) 50 Finance and insurance 757 (13 ) 109 76 (1 ) 9 833 (14 ) 118 Consumer—non-cyclical 496 (11 ) 72 — — — 496 (11 ) 72 Technology and communications 257 (7 ) 39 79 (7 ) 11 336 (14 ) 50 Industrial 105 (2 ) 15 47 (3 ) 7 152 (5 ) 22 Capital goods 207 (6 ) 32 — — — 207 (6 ) 32 Consumer—cyclical 190 (6 ) 26 48 (2 ) 6 238 (8 ) 32 Transportation 202 (5 ) 27 8 (1 ) 1 210 (6 ) 28 Other 32 (1 ) 3 — — — 32 (1 ) 3 Subtotal, U.S. corporate securities 2,954 (70 ) 434 443 (26 ) 57 3,397 (96 ) 491 Non-U.S. corporate: Utilities 165 (3 ) 18 14 (1 ) 1 179 (4 ) 19 Energy 122 (2 ) 22 70 (8 ) 13 192 (10 ) 35 Finance and insurance 224 (3 ) 38 31 (1 ) 6 255 (4 ) 44 Consumer—non-cyclical 147 (3 ) 19 10 (1 ) — 157 (4 ) 19 Technology and communications 107 (2 ) 20 12 (1 ) 2 119 (3 ) 22 Industrial 62 (2 ) 9 32 (1 ) 4 94 (3 ) 13 Capital goods 48 (1 ) 7 29 (1 ) 2 77 (2 ) 9 Consumer—cyclical 78 (1 ) 15 — — — 78 (1 ) 15 Transportation 93 (3 ) 17 25 (1 ) 2 118 (4 ) 19 Other 251 (3 ) 43 58 (2 ) 7 309 (5 ) 50 Subtotal, non-U.S. corporate securities 1,297 (23 ) 208 281 (17 ) 37 1,578 (40 ) 245 Total for corporate securities in an unrealized loss position $ 4,251 $ (93 ) 642 $ 724 $ (43 ) 94 $ 4,975 $ (136 ) 736 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, 2016: 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 $ 1,074 $ (50 ) 37 $ — $ — — $ 1,074 $ (50 ) 37 State and political subdivisions 644 (32 ) 109 142 (18 ) 12 786 (50 ) 121 Non-U.S. government 497 (18 ) 51 — — — 497 (18 ) 51 U.S. corporate 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. corporate 2,257 (66 ) 330 408 (25 ) 57 2,665 (91 ) 387 Residential mortgage-backed 725 (11 ) 100 58 (1 ) 35 783 (12 ) 135 Commercial mortgage-backed 1,091 (55 ) 168 25 (1 ) 9 1,116 (56 ) 177 Other asset-backed 1,069 (13 ) 184 328 (22 ) 68 1,397 (35 ) 252 Subtotal, fixed maturity securities 12,578 (435 ) 1,690 1,623 (116 ) 275 14,201 (551 ) 1,965 Equity securities 119 (9 ) 182 114 (18 ) 47 233 (27 ) 229 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 % Below cost—fixed maturity securities: <20% Below cost $ 12,578 $ (435 ) 1,690 $ 1,543 $ (90 ) 267 $ 14,121 $ (525 ) 1,957 20%-50% Below cost — — — 80 (26 ) 8 80 (26 ) 8 >50% Below cost — — — — — — — — — Total fixed maturity securities 12,578 (435 ) 1,690 1,623 (116 ) 275 14,201 (551 ) 1,965 % Below cost—equity securities: <20% Below cost 118 (8 ) 167 101 (14 ) 38 219 (22 ) 205 20%-50% Below cost 1 (1 ) 15 13 (4 ) 9 14 (5 ) 24 Total equity securities 119 (9 ) 182 114 (18 ) 47 233 (27 ) 229 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 Investment grade $ 12,339 $ (432 ) 1,657 $ 1,354 $ (108 ) 250 $ 13,693 $ (540 ) 1,907 Below investment grade 358 (12 ) 215 383 (26 ) 72 741 (38 ) 287 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 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, 2016: 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 $ 855 $ (39 ) 130 $ 21 $ (2 ) 5 $ 876 $ (41 ) 135 Energy 190 (5 ) 30 276 (19 ) 38 466 (24 ) 68 Finance and insurance 1,438 (38 ) 177 113 (8 ) 15 1,551 (46 ) 192 Consumer—non-cyclical 921 (34 ) 117 — — — 921 (34 ) 117 Technology and communications 507 (22 ) 70 126 (10 ) 17 633 (32 ) 87 Industrial 226 (7 ) 38 77 (7 ) 10 303 (14 ) 48 Capital goods 322 (12 ) 50 6 (1 ) 1 328 (13 ) 51 Consumer—cyclical 431 (16 ) 56 26 (1 ) 6 457 (17 ) 62 Transportation 302 (16 ) 41 17 (1 ) 2 319 (17 ) 43 Other 29 (1 ) 2 — — — 29 (1 ) 2 Subtotal, U.S. corporate securities 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. corporate: Utilities 240 (10 ) 32 14 (1 ) 1 254 (11 ) 33 Energy 105 (3 ) 18 91 (9 ) 16 196 (12 ) 34 Finance and insurance 474 (8 ) 79 71 (1 ) 16 545 (9 ) 95 Consumer—non-cyclical 308 (14 ) 30 — — — 308 (14 ) 30 Technology and communications 232 (9 ) 34 28 (1 ) 2 260 (10 ) 36 Industrial 165 (5 ) 21 91 (4 ) 10 256 (9 ) 31 Capital goods 104 (2 ) 14 28 (2 ) 2 132 (4 ) 16 Consumer—cyclical 90 (2 ) 17 — — — 90 (2 ) 17 Transportation 106 (5 ) 16 25 (2 ) 2 131 (7 ) 18 Other 433 (8 ) 69 60 (5 ) 8 493 (13 ) 77 Subtotal, non-U.S. corporate securities 2,257 (66 ) 330 408 (25 ) 57 2,665 (91 ) 387 Total for corporate securities in an unrealized loss position $ 7,478 $ (256 ) 1,041 $ 1,070 $ (74 ) 151 $ 8,548 $ (330 ) 1,192 |
Fixed maturity securities | More Than 20% Below Cost | |
Gross Unrealized Losses and Fair Values of Securities in a Continuous Unrealized Loss Position | 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 June 30, 2017: 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 $ 10 $ (2 ) 1 % 1 $ — $ — — % — Total $ 10 $ (2 ) 1 % 1 $ — $ — — % — 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: Non-U.S. corporate: Energy 3 (1 ) — 1 — — — — Other 3 (1 ) — 1 — — — — Total non-U.S. corporate 6 (2 ) — 2 — — — — Total $ 6 $ (2 ) — % 2 $ — $ — — % — |
Loan To Value Ratio | |
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: June 30, 2017 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater Total Property type: Retail $ 762 $ 487 $ 939 $ 11 $ — $ 2,199 Industrial 600 418 570 2 — 1,590 Office 421 325 706 28 — 1,480 Apartments 187 90 188 5 — 470 Mixed use 62 88 84 — — 234 Other 52 33 192 — — 277 Total recorded investment $ 2,084 $ 1,441 $ 2,679 $ 46 $ — $ 6,250 % of total 33 % 23 % 43 % 1 % — % 100 % Weighted-average debt service coverage ratio 2.19 1.89 1.62 0.89 — 1.87 December 31, 2016 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 743 $ 511 $ 913 $ 11 $ — $ 2,178 Industrial 605 430 484 14 — 1,533 Office 431 310 656 26 7 1,430 Apartments 188 89 173 5 — 455 Mixed use 67 87 91 — — 245 Other 60 30 194 — — 284 Total recorded investment $ 2,094 $ 1,457 $ 2,511 $ 56 $ 7 $ 6,125 % of total 34 % 24 % 41 % 1 % — % 100 % Weighted-average debt service coverage ratio 2.20 1.88 1.61 0.80 (0.07 ) 1.87 (1) Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Debt Service Coverage Ratio | |
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: June 30, 2017 (Amounts in millions) Less than 1.00 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 63 $ 197 $ 450 $ 922 $ 567 $ 2,199 Industrial 50 106 236 708 490 1,590 Office 82 111 173 646 468 1,480 Apartments 18 20 48 233 151 470 Mixed use 2 5 19 125 83 234 Other 1 143 59 60 14 277 Total recorded investment $ 216 $ 582 $ 985 $ 2,694 $ 1,773 $ 6,250 % of total 3 % 9 % 16 % 44 % 28 % 100 % Weighted-average loan-to-value 58 % 59 % 60 % 59 % 46 % 55 % December 31, 2016 (Amounts in millions) Less 1.00 - 1.25 1.26 - 1.50 1.51 - 2.00 Greater Total Property type: Retail $ 67 $ 204 $ 425 $ 899 $ 583 $ 2,178 Industrial 71 113 236 599 514 1,533 Office 91 117 172 609 441 1,430 Apartments 19 22 44 217 153 455 Mixed use 2 9 19 128 87 245 Other 1 148 60 55 20 284 Total recorded investment $ 251 $ 613 $ 956 $ 2,507 $ 1,798 $ 6,125 % of total 4 % 10 % 16 % 41 % 29 % 100 % Weighted-average loan-to-value 61 % 60 % 59 % 58 % 45 % 55 % |
Other Geographic Area | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | June 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,608 26 % $ 1,546 25 % Pacific 1,603 26 1,567 27 Middle Atlantic 908 14 915 15 Mountain 547 9 554 9 West North Central 442 7 435 7 East North Central 383 6 388 6 West South Central 318 5 311 5 New England 233 4 206 3 East South Central 208 3 203 3 Subtotal 6,250 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,237 $ 6,111 |
Real Estate Properties | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated: June 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,199 35 % $ 2,178 36 % Industrial 1,590 25 1,533 25 Office 1,480 24 1,430 23 Apartments 470 8 455 7 Mixed use 234 4 245 4 Other 277 4 284 5 Subtotal 6,250 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,237 $ 6,111 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, December 31, Balance sheet classification June 30, December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $ 243 $ 237 Other liabilities $ 182 $ 203 Foreign currency swaps Other invested assets 2 4 Other liabilities — — Total cash flow hedges 245 241 182 203 Total derivatives designated as hedges 245 241 182 203 Derivatives not designated as hedges Interest rate swaps Other invested assets 347 359 Other liabilities 150 146 Foreign currency swaps Other invested assets 3 — Other liabilities 2 5 Credit default swaps related to securitization entities Restricted other invested assets — — Other liabilities — 1 Equity index options Other invested assets 81 72 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets 2 1 Other liabilities 7 1 Other foreign currency contracts Other invested assets 65 35 Other liabilities 26 27 GMWB embedded derivatives Reinsurance recoverable (1) 15 16 Policyholder account balances (2) 281 303 Fixed index annuity embedded derivatives Other assets — — Policyholder account balances (3) 376 344 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (4) 13 11 Total derivatives not designated as hedges 513 483 855 838 Total derivatives $ 758 $ 724 $ 1,037 $ 1,041 (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. |
Schedule of Notional Amounts Outstanding on Derivative Instruments | The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ June 30, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,570 $ — $ (215 ) $ 11,355 Foreign currency swaps Notional 22 — — 22 Total cash flow hedges 11,592 — (215 ) 11,377 Total derivatives designated as hedges 11,592 — (215 ) 11,377 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — — 4,679 Foreign currency swaps Notional 201 73 (4 ) 270 Credit default swaps Notional 39 — — 39 Credit default swaps related to securitization entities Notional 312 — (100 ) 212 Equity index options Notional 2,396 951 (837 ) 2,510 Financial futures Notional 1,398 2,908 (2,960 ) 1,346 Equity return swaps Notional 165 108 (153 ) 120 Other foreign currency contracts Notional 3,130 1,760 (453 ) 4,437 Total derivatives not designated as hedges 12,320 5,800 (4,507 ) 13,613 Total derivatives $ 23,912 $ 5,800 $ (4,722 ) $ 24,990 (Number of policies) Measurement December 31, Additions Maturities/ June 30, Derivatives not designated as hedges GMWB embedded derivatives Policies 33,238 — (1,498 ) 31,740 Fixed index annuity embedded derivatives Policies 17,549 — (248 ) 17,301 Indexed universal life embedded derivatives Policies 1,074 1 (40 ) 1,035 |
Schedule of Pre-Tax Income Effects of Cash Flow Hedges | The following table provides information about the pre-tax income effects of cash flow hedges for the three months ended June 30, 2017: (Amounts in millions) Gain (loss) in OCI Gain (loss) from OCI Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps $ 82 $ 31 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging assets — 1 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (6 ) — Interest expense — Net investment gains (losses) Foreign currency swaps (1 ) — Net investment income — Net investment gains (losses) Total $ 75 $ 32 $ — (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 effects of cash flow hedges for the three months ended June 30, 2016: (Amounts in millions) Gain (loss) in OCI Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 267 $ 28 Net investment income $ 5 Net investment gains (losses) Interest rate swaps hedging liabilities (19 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps (2 ) — Net investment income — Net investment gains (losses) Inflation indexed swaps — 7 Net investment gains (losses) — Net investment gains (losses) Total $ 246 $ 35 $ 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 six months ended June 30, 2017: (Amounts in millions) Gain (loss) in OCI Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 33 $ 61 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging assets — 2 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (2 ) — Interest expense — Net investment gains (losses) Foreign currency swaps (1 ) — Net investment income — Net investment gains (losses) Total $ 30 $ 63 $ — (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 effects of cash flow hedges for the six months ended June 30, 2016: (Amounts in millions) Gain (loss) in OCI Gain (loss) Classification of gain net income Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 724 $ 53 Net investment income $ 11 Net investment gains (losses) Interest rate swaps hedging assets — 1 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (50 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps (5 ) 2 Net investment income — Net investment gains (losses) Inflation indexed swaps — 7 Net investment gains (losses) — Net investment gains (losses) Foreign currency swaps (1 ) — Net investment income — Net investment gains (losses) Total $ 668 $ 63 $ 11 (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 Hedge | 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 June 30, (Amounts in millions) 2017 2016 Derivatives qualifying as effective accounting hedges as of April 1 $ 2,036 $ 2,302 Current period increases (decreases) in fair value, net of deferred taxes of $(27) and $(86) 48 160 Reclassification to net (income), net of deferred taxes of $12 and $12 (20 ) (23 ) Derivatives qualifying as effective accounting hedges as of June 30 $ 2,064 $ 2,439 Six months ended (Amounts in millions) 2017 2016 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,085 $ 2,045 Current period increases (decreases) in fair value, net of deferred taxes of $(11) and $(233) 19 435 Reclassification to net (income), net of deferred taxes of $23 and $22 (40 ) (41 ) Derivatives qualifying as effective accounting hedges as of June 30 $ 2,064 $ 2,439 |
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income for Effects of Derivatives Not Designated as Hedges | The following tables provide the pre-tax gain (loss) recognized in net income for the effects of derivatives not designated as hedges for the periods indicated: Three months ended June 30, Classification of gain (loss) recognized in net income (Amounts in millions) 2017 2016 Interest rate swaps $ (1 ) $ (7 ) Net investment gains (losses) Interest rate swaps related to securitization entities — (5 ) Net investment gains (losses) Credit default swaps — 1 Net investment gains (losses) Credit default swaps related to securitization entities 2 5 Net investment gains (losses) Equity index options 13 (1 ) Net investment gains (losses) Financial futures 9 19 Net investment gains (losses) Equity return swaps (6 ) 5 Net investment gains (losses) Other foreign currency contracts 31 (2 ) Net investment gains (losses) Foreign currency swaps 2 (3 ) Net investment gains (losses) GMWB embedded derivatives 1 (40 ) Net investment gains (losses) Fixed index annuity embedded derivatives (16 ) (9 ) Net investment gains (losses) Indexed universal life embedded derivatives 2 1 Net investment gains (losses) Total derivatives not designated as hedges $ 37 $ (36 ) Six months June 30, Classification of gain (loss) recognized in net income (Amounts in millions) 2017 2016 Interest rate swaps $ 1 $ 8 Net investment gains (losses) Interest rate swaps related to securitization entities — (10 ) Net investment gains (losses) Credit default swaps related to securitization entities 4 14 Net investment gains (losses) Equity index options 26 (4 ) Net investment gains (losses) Financial futures (8 ) 26 Net investment gains (losses) Equity return swaps (14 ) 7 Net investment gains (losses) Other foreign currency contracts 26 (4 ) Net investment gains (losses) Foreign currency swaps 5 7 Net investment gains (losses) GMWB embedded derivatives 34 (118 ) Net investment gains (losses) Fixed index annuity embedded derivatives (36 ) (6 ) Net investment gains (losses) Indexed universal life embedded derivatives 3 3 Net investment gains (losses) Total derivatives not designated as hedges $ 41 $ (77 ) |
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: June 30, 2017 December 31, 2016 (Amounts in millions) Derivatives (1) Derivatives (2) Net Derivatives (1) Derivatives (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 757 $ 373 $ 384 $ 724 $ 387 $ 337 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 757 373 384 724 387 337 Gross amounts not offset in the balance sheet: Financial instruments (3) (253 ) (253 ) — (172 ) (172 ) — Collateral received (425 ) — (425 ) (467 ) — (467 ) Collateral pledged — (373 ) 373 — (557 ) 557 Over collateralization 8 255 (247 ) 1 344 (343 ) Net amount $ 87 $ 2 $ 85 $ 86 $ 2 $ 84 (1) Included $14 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of June 30, 2017 and December 31, 2016, respectively. (2) Included $6 million and $5 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 June 30, 2017 and December 31, 2016, 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: June 30, 2017 December 31, 2016 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Investment grade Matures in less than one year $ 19 $ — $ — $ — $ — $ — Matures after one year through five years 20 — — 39 — — Total credit default swaps on single name reference entities $ 39 $ — $ — $ 39 $ — $ — |
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: June 30, 2017 December 31, 2016 (Amounts in millions) Notional value Assets Liabilities Notional Assets Liabilities Customized credit default swap index tranches related to securitization entities: Portion backing third-party borrowings maturing 2017 (1) $ 12 $ — $ — $ 12 $ — $ — Portion backing our interest maturing 2017 (2) 200 — 300 — 1 Total customized credit default swap index tranches related to securitization entities 212 — — 312 — 1 Total credit default swaps on index tranches $ 212 $ — $ — $ 312 $ — $ 1 (1) Original notional value was $39 million. (2) Original notional value was $300 million. |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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: June 30, 2017 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,237 $ 6,533 $ — $ — $ 6,533 Restricted commercial mortgage loans (1) 118 130 — — 130 Other invested assets (1) 1,101 1,123 — 946 177 Liabilities: Long-term borrowings (1) 4,205 3,626 — 3,471 155 Non-recourse funding obligations (1) 310 195 — — 195 Borrowings related to securitization entities (1) 51 53 — 53 — Investment contracts (1) 15,667 16,212 — 5 16,207 Other firm commitments: Commitments to fund limited partnerships 268 — — — — — Ordinary course of business lending commitments 59 — — — — — December 31, 2016 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,111 $ 6,247 $ — $ — $ 6,247 Restricted commercial mortgage loans (1) 129 141 — — 141 Other invested assets (1) 459 473 — 352 121 Liabilities: Long-term borrowings (1) 4,180 3,582 — 3,440 142 Non-recourse funding obligations (1) 310 186 — — 186 Borrowings related to securitization entities (1) 62 65 — 65 — Investment contracts (1) 16,437 16,993 — 5 16,988 Other firm commitments: Commitments to fund limited partnerships 201 — — — — — Ordinary course of business lending commitments 73 — — — — — (1) These financial instruments do not have notional amounts. |
Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2 | The following table presents a summary of the significant inputs used by our third-party pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of June 30, 2017: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 5,628 Price quotes from trading desk, broker feeds Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread State and political subdivisions $ 2,761 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. government $ 2,075 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources U.S. corporate $ 24,722 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. corporate $ 10,569 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources Residential mortgage-backed $ 4,246 OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Commercial mortgage-backed $ 3,354 Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports Other asset-backed $ 3,042 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: |
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: June 30, 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,629 $ — $ 5,628 $ 1 State and political subdivisions 2,806 — 2,769 37 Non-U.S. government 2,091 — 2,091 — U.S. corporate: Utilities 4,848 — 4,210 638 Energy 2,370 — 2,210 160 Finance and insurance 6,590 — 5,729 861 Consumer—non-cyclical 4,782 — 4,660 122 Technology and communications 2,675 — 2,617 58 Industrial 1,344 — 1,283 61 Capital goods 2,287 — 2,169 118 Consumer—cyclical 1,599 — 1,333 266 Transportation 1,179 — 1,079 100 Other 397 — 221 176 Total U.S. corporate 28,071 — 25,511 2,560 Non-U.S. corporate: Utilities 1,053 — 694 359 Energy 1,434 — 1,257 177 Finance and insurance 2,590 — 2,418 172 Consumer—non-cyclical 746 — 617 129 Technology and communications 1,043 — 995 48 Industrial 1,015 — 903 112 Capital goods 574 — 425 149 Consumer—cyclical 494 — 427 67 Transportation 704 — 514 190 Other 2,777 — 2,736 41 Total non-U.S. corporate 12,430 — 10,986 1,444 Residential mortgage-backed 4,319 — 4,246 73 Commercial mortgage-backed 3,406 — 3,354 52 Other asset-backed 3,192 — 3,042 150 Total fixed maturity securities 61,944 — 57,627 4,317 Equity securities 855 734 73 48 Other invested assets: Derivative assets: Interest rate swaps 590 — 590 — Foreign currency swaps 5 — 5 — Equity index options 81 — — 81 Equity return swaps 2 — 2 — Other foreign currency contracts 65 — 65 — Total derivative assets 743 — 662 81 Securities lending collateral 226 — 226 — Total other invested assets 969 — 888 81 Restricted other invested assets related to securitization entities 81 — 81 — Reinsurance recoverable (1) 15 — — 15 Separate account assets 7,269 7,269 — — Total assets $ 71,133 $ 8,003 $ 58,669 $ 4,461 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. December 31, 2016 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 6,036 $ — $ 6,034 $ 2 State and political subdivisions 2,647 — 2,610 37 Non-U.S. government 2,107 — 2,107 — U.S. corporate: Utilities 4,550 — 3,974 576 Energy 2,300 — 2,090 210 Finance and insurance 6,097 — 5,311 786 Consumer—non-cyclical 4,734 — 4,613 121 Technology and communications 2,598 — 2,544 54 Industrial 1,223 — 1,175 48 Capital goods 2,258 — 2,106 152 Consumer—cyclical 1,530 — 1,272 258 Transportation 1,190 — 1,051 139 Other 348 — 205 143 Total U.S. corporate 26,828 — 24,341 2,487 Non-U.S. corporate: Utilities 969 — 583 386 Energy 1,331 — 1,125 206 Finance and insurance 2,538 — 2,356 182 Consumer—non-cyclical 714 — 575 139 Technology and communications 987 — 920 67 Industrial 958 — 849 109 Capital goods 535 — 366 169 Consumer—cyclical 442 — 373 69 Transportation 677 — 496 181 Other 3,144 — 3,119 25 Total non-U.S. corporate 12,295 — 10,762 1,533 Residential mortgage-backed 4,379 — 4,336 43 Commercial mortgage-backed 3,129 — 3,075 54 Other asset-backed 3,151 — 3,006 145 Total fixed maturity securities 60,572 — 56,271 4,301 Equity securities 632 551 34 47 Other invested assets: Trading securities 259 — 259 — Derivative assets: Interest rate swaps 596 — 596 — Foreign currency swaps 4 — 4 — Equity index options 72 — — 72 Equity return swaps 1 — 1 — Other foreign currency contracts 35 — 32 3 Total derivative assets 708 — 633 75 Securities lending collateral 534 — 534 — Total other invested assets 1,501 — 1,426 75 Restricted other invested assets related to securitization entities 312 — 181 131 Reinsurance recoverable (1) 16 — — 16 Separate account assets 7,299 7,299 — — Total assets $ 70,332 $ 7,850 $ 57,912 $ 4,570 (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: Total realized and Total gains net income (Amounts in millions) Beginning Included in net income Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 1 $ — $ — $ — $ — $ — $ — $ — $ — $ 1 $ — State and political subdivisions 37 — — — — — — — — 37 — U.S. corporate: Utilities 578 — 13 30 — — — 30 (13 ) 638 — Energy 162 — 4 — — — (7 ) 1 — 160 — Finance and insurance 818 4 39 24 (7 ) — (3 ) — (14 ) 861 4 Consumer—non-cyclical 122 — — — — — — — — 122 — Technology and communications 59 — 5 4 — — — — (10 ) 58 — Industrial 47 — 1 13 — — — — — 61 — Capital goods 153 — 2 — — — — — (37 ) 118 — Consumer—cyclical 263 — 4 — — — (1 ) — — 266 — Transportation 97 — 4 — — — (1 ) — — 100 1 Other 142 — — — — — (3 ) 37 — 176 — Total U.S. corporate 2,441 4 72 71 (7 ) — (15 ) 68 (74 ) 2,560 5 Non-U.S. corporate: Utilities 386 — 3 — — — — — (30 ) 359 — Energy 206 — 3 — — — — — (32 ) 177 — Finance and insurance 168 1 4 4 — — (5 ) — — 172 1 Consumer—non-cyclical 129 — 1 — — — (1 ) — — 129 — Technology and communications 48 — — — — — — — — 48 — Industrial 110 — 2 — — — — — — 112 — Capital goods 170 — 1 — — — (15 ) — (7 ) 149 — Consumer—cyclical 67 — — — — — — — — 67 — Transportation 193 — 1 6 — — — 1 (11 ) 190 — Other 24 — 2 15 — — — — — 41 — Total non-U.S. corporate 1,501 1 17 25 — — (20 ) 1 (81 ) 1,444 1 Residential mortgage-backed 46 — 1 — — — — 26 — 73 — Commercial mortgage-backed 59 (1 ) 2 8 (9 ) — — — (7 ) 52 — Other asset-backed 175 (7 ) 10 10 (35 ) — (5 ) 9 (7 ) 150 — Total fixed maturity securities 4,260 (3 ) 102 114 (51 ) — (40 ) 104 (169 ) 4,317 6 Equity securities 47 — — 1 — — — — — 48 — Other invested assets: Derivative assets: Equity index options 77 13 — 9 — — (18 ) — — 81 — Other foreign currency contracts 1 (1 ) — — — — — — — — — Total derivative assets 78 12 — 9 — — (18 ) — — 81 — Total other invested assets 78 12 — 9 — — (18 ) — — 81 — Reinsurance recoverable (2) 15 — — — — — — — — 15 — Total Level 3 assets $ 4,400 $ 9 $ 102 $ 124 $ (51 ) $ — $ (58 ) $ 104 $ (169 ) $ 4,461 $ 6 (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 Total gains net income (Amounts in millions) Included in net income Included Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 2 $ — $ — $ — $ — $ — $ — $ — $ — $ 2 $ — State and political subdivisions 42 — — — — — — — (6 ) 36 — U.S. corporate: Utilities 482 (1 ) 19 34 — — — 18 — 552 — Energy 230 — (3 ) — — — (1 ) — (18 ) 208 — Finance and insurance 697 (2 ) 37 27 (9 ) — (10 ) 35 — 775 (4 ) Consumer—non-cyclical 112 — 3 — (13 ) — — — — 102 — Technology and communications 37 — 3 — — — — — — 40 — Industrial 64 — 2 — — — — 12 — 78 — Capital goods 154 1 2 — (10 ) — — — (12 ) 135 — Consumer—cyclical 210 — 5 22 — — (1 ) 18 — 254 — Transportation 123 1 4 — — — (4 ) 5 — 129 1 Other 180 1 — — — — (3 ) — (31 ) 147 1 Total U.S. corporate 2,289 — 72 83 (32 ) — (19 ) 88 (61 ) 2,420 (2 ) Non-U.S. corporate: Utilities 316 — 5 10 — — — — — 331 — Energy 226 — 11 — (2 ) — (1 ) — — 234 — Finance and insurance 191 1 9 — — — — — — 201 1 Consumer—non-cyclical 163 — 5 — — — — — — 168 — Technology and communications 64 — 3 16 (3 ) — — — — 80 — Industrial 96 — 2 — (3 ) — — — — 95 — Capital goods 214 — 2 — — — (4 ) — — 212 — Consumer—cyclical 70 — 1 — — — — — — 71 — Transportation 144 — 4 — — — — 38 — 186 — Other 67 — — — — — — — (38 ) 29 — Total non-U.S. corporate 1,551 1 42 26 (8 ) — (5 ) 38 (38 ) 1,607 1 Residential mortgage-backed 121 — — 13 — — (3 ) 8 (43 ) 96 — Commercial mortgage-backed 8 — 4 23 — — (2 ) — — 33 — Other asset-backed 1,168 (11 ) 12 — (20 ) — (8 ) 6 (949 ) 198 (11 ) Total fixed maturity securities 5,181 (10 ) 130 145 (60 ) — (37 ) 140 (1,097 ) 4,392 (12 ) Equity securities 44 — — — — — — — — 44 — Other invested assets: Derivative assets: Credit default swaps 1 — — — — — (1 ) — — — — Equity index options 36 (2 ) — 23 — — — — — 57 3 Other foreign currency contracts 1 — — 1 — — (1 ) — — 1 — Total derivative assets 38 (2 ) — 24 — — (2 ) — — 58 3 Total other invested assets 38 (2 ) — 24 — — (2 ) — — 58 3 Restricted other invested assets related to securitization entities 241 (64 ) — — — — (46 ) — — 131 — Reinsurance recoverable (2) 23 3 — — — — — — — 26 3 Total Level 3 assets $ 5,527 $ (73 ) $ 130 $ 169 $ (60 ) $ — $ (85 ) $ 140 $ (1,097 ) $ 4,651 $ (6 ) (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. 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 January 1, 2017 Total realized and Ending as of Total gains income attributable to assets still held (Amounts in millions) Included in income 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 $ 2 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 1 $ — State and political subdivisions 37 1 (1 ) — — — — — — 37 1 U.S. corporate Utilities 576 — 20 44 — — (2 ) 30 (30 ) 638 — Energy 210 (1 ) 6 — (10 ) — (30 ) 1 (16 ) 160 (1 ) Finance and insurance 786 8 51 53 (17 ) — (6 ) — (14 ) 861 8 Consumer—non-cyclical 121 — 1 — — — — — — 122 — Technology and communications 54 1 6 14 — — — — (17 ) 58 1 Industrial 48 — — 13 — — — — — 61 — Capital goods 152 — 3 — — — — — (37 ) 118 — Consumer—cyclical 258 — 9 2 — — (3 ) — — 266 — Transportation 139 1 5 — — — (3 ) — (42 ) 100 1 Other 143 — 1 — — — (5 ) 37 — 176 — Total U.S. corporate 2,487 9 102 126 (27 ) — (49 ) 68 (156 ) 2,560 9 Non-U.S. corporate: Utilities 386 — 5 30 — — — — (62 ) 359 — Energy 206 — 5 — (1 ) — (1 ) — (32 ) 177 — Finance and insurance 182 3 8 4 — — (25 ) — — 172 2 Consumer—non-cyclical 139 — 2 — — — (12 ) — — 129 — Technology and communications 67 — — — — — (19 ) — — 48 — Industrial 109 — 3 — — — — — — 112 — Capital goods 169 — 2 — — — (15 ) — (7 ) 149 — Consumer—cyclical 69 — — — — — (2 ) — — 67 — Transportation 181 — 3 6 — — — 11 (11 ) 190 — Other 25 — 1 15 — — — — — 41 — Total non-U.S. corporate 1,533 3 29 55 (1 ) — (73 ) 11 (113 ) 1,444 2 Residential mortgage-backed 43 — 1 4 — — (1 ) 26 — 73 — Commercial mortgage-backed 54 (1 ) 6 9 (9 ) — — — (7 ) 52 — Other asset-backed 145 (7 ) 10 64 (35 ) — (7 ) 14 (34 ) 150 — Total fixed maturity securities 4,301 5 147 258 (72 ) — (131 ) 119 (310 ) 4,317 12 Equity securities 47 — — 1 — — — — — 48 — Other invested assets: Derivative assets: Equity index options 72 26 — 21 — — (38 ) — — 81 — Other foreign currency contracts 3 (3 ) — — — — — — — — (3 ) Total derivative assets 75 23 — 21 — — (38 ) — — 81 (3 ) Total other invested assets 75 23 — 21 — — (38 ) — — 81 (3 ) Restricted other invested assets related to securitization entities 131 — — — (131 ) — — — — — — Reinsurance recoverable (2) 16 (2 ) — — — 1 — — — 15 (2 ) Total Level 3 assets $ 4,570 $ 26 $ 147 $ 280 $ (203 ) $ 1 $ (169 ) $ 119 $ (310 ) $ 4,461 $ 7 (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 January 1, Total realized and Transfer (1) Transfer (1) Ending Total gains income to assets (Amounts in millions) Included in income Included Purchases Sales Issuances Settlements Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 3 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 2 $ — State and political subdivisions 35 1 (1 ) 7 — — — — (6 ) 36 1 U.S.corporate: Utilities 449 — 24 47 — — (8 ) 67 (27 ) 552 — Energy 253 — (4 ) — — — (2 ) 7 (46 ) 208 — Finance and insurance 715 8 44 27 (9 ) — (27 ) 35 (18 ) 775 6 Consumer—non-cyclical 109 — 6 — (13 ) — — — — 102 — Technology and communications 35 1 4 — — — — — — 40 1 Industrial 61 — 5 — — — — 12 — 78 — Capital goods 180 1 5 — (10 ) — — — (41 ) 135 — Consumer—cyclical 239 4 9 25 — — (41 ) 18 — 254 — Transportation 106 1 8 17 — — (8 ) 5 — 129 1 Other 182 1 1 — — — (4 ) — (33 ) 147 1 Total U.S. corporate 2,329 16 102 116 (32 ) — (90 ) 144 (165 ) 2,420 9 Non-U.S. corporate: Utilities 287 — 8 10 — — — 26 — 331 — Energy 252 — 24 — (2 ) — (14 ) — (26 ) 234 — Finance and insurance 191 2 8 — — — — — — 201 2 Consumer—non-cyclical 169 — 10 — — — (11 ) — — 168 — Technology and communications 62 — 5 16 (3 ) — — — — 80 — Industrial 84 — 5 — (3 ) — — 9 — 95 — Capital goods 213 — 9 — — — (10 ) — — 212 — Consumer—cyclical 71 — 2 — — — (2 ) — — 71 — Transportation 144 — 4 — — — — 38 — 186 — Other 72 — 2 — — — (7 ) — (38 ) 29 — Total non-U.S. corporate 1,545 2 77 26 (8 ) — (44 ) 73 (64 ) 1,607 2 Residential mortgage-backed 116 — 2 51 — — (5 ) 8 (76 ) 96 — Commercial mortgage-backed 10 — 4 23 — — (4 ) — — 33 — Other asset-backed 1,142 (10 ) (4 ) 12 (20 ) — (14 ) 41 (949 ) 198 (10 ) Total fixed maturity securities 5,180 9 180 235 (60 ) — (158 ) 266 (1,260 ) 4,392 2 Equity securities 38 — — 6 — — — — — 44 — Other invested assets: Derivative assets: Credit default swaps 1 — — — — — (1 ) — — — — Equity index options 30 (4 ) — 36 — — (5 ) — — 57 (4 ) Other foreign currency contracts 3 (2 ) — 1 — — (1 ) — — 1 (2 ) Total derivative assets 34 (6 ) — 37 — — (7 ) — — 58 (6 ) Total other invested assets 34 (6 ) — 37 — — (7 ) — — 58 (6 ) Restricted other invested assets related to securitization entities 232 (55 ) — — — — (46 ) — — 131 9 Reinsurance recoverable (2) 17 8 — — — 1 — — — 26 8 Total Level 3 assets $ 5,501 $ (44 ) $ 180 $ 278 $ (60 ) $ 1 $ (211 ) $ 266 $ (1,260 ) $ 4,651 $ 13 (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. |
Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value | The following table presents the gains and losses included in net income 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 Six months ended (Amounts in millions) 2017 2016 2017 2016 Total realized and unrealized gains (losses) included in net income: Net investment income $ 5 $ — $ 14 $ 19 Net investment gains (losses) 4 (73 ) 12 (63 ) Total $ 9 $ (73 ) $ 26 $ (44 ) Total gains (losses) included in net income attributable to assets still held: Net investment income $ 6 $ (1 ) $ 13 $ 14 Net investment gains (losses) — (5 ) (6 ) (1 ) Total $ 6 $ (6 ) $ 7 $ 13 |
Summary of Significant Unobservable Inputs Used for Certain Asset Fair Value Measurements | The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2017: (Amounts in millions) Valuation technique Fair value Unobservable input Range Weighted-average Fixed maturity securities: U.S. corporate: Utilities Internal models $ 622 Credit spreads 75bps - 417bps 147bps Energy Internal models 87 Credit spreads 84bps - 209bps 152bps Finance and insurance Internal models 805 Credit spreads 79bps - 379bps 203bps Consumer—non-cyclical Internal models 122 Credit spreads 93bps - 268bps 163bps Technology and communications Internal models 58 Credit spreads 62bps - 330bps 271bps Industrial Internal models 34 Credit spreads 98bps - 221bps 171bps Capital goods Internal models 118 Credit spreads 98bps - 268bps 146bps Consumer-cyclical Internal models 240 Credit spreads 60bps - 215bps 135bps Transportation Internal models 93 Credit spreads 60bps - 265bps 163bps Other Internal models 162 Credit spreads 71bps - 138bps 82bps Total U.S. corporate Internal models $ 2,341 Credit spreads 60bps - 417bps 165bps Non-U.S. corporate: Utilities Internal models $ 359 Credit spreads 83bps - 157bps 122bps Energy Internal models 146 Credit spreads 98bps - 166bps 126bps Finance and insurance Internal models 162 Credit spreads 75bps - 197bps 122bps Consumer—non-cyclical Internal models 118 Credit spreads 60bps - 184bps 124bps Technology and communications Internal models 29 Credit spreads 130bps - 181bps Industrial Internal models 103 Credit spreads 110bps - 190bps 140bps Capital goods Internal models 107 Credit spreads 93bps - 166bps 120bps Consumer—cyclical Internal models 67 Credit spreads 91bps - 141bps 113bps Transportation Internal models 172 Credit spreads 79bps - 215bps 122bps Other Internal models 28 Credit spreads 102bps - 1,159bps 248bps Total non-U.S. corporate Internal models $ 1,291 Credit spreads 60bps - 1,159bps 128bps Derivative assets: Equity index options Discounted cash $ 81 Equity index 6% - 27% 18 % |
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: June 30, 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 281 $ — $ — $ 281 Fixed index annuity embedded derivatives 376 — — 376 Indexed universal life embedded derivatives 13 — — 13 Total policyholder account balances 670 — — 670 Derivative liabilities: Interest rate swaps 332 — 332 — Foreign currency swaps 2 — 2 — Equity return swaps 7 — 7 — Other foreign currency contracts 26 — 26 — Total derivative liabilities 367 — 367 — Borrowings related to securitization entities 12 — — 12 Total liabilities $ 1,049 $ — $ 367 $ 682 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. December 31, 2016 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 303 $ — $ — $ 303 Fixed index annuity embedded derivatives 344 — — 344 Indexed universal life embedded derivatives 11 — — 11 Total policyholder account balances 658 — — 658 Derivative liabilities: Interest rate swaps 349 — 349 — Foreign currency swaps 5 — 5 — Credit default swaps related to securitization entities 1 — 1 — Equity return swaps 1 — 1 — Other foreign currency contracts 27 — 27 — Total derivative liabilities 383 — 383 — Borrowings related to securitization entities 12 — — 12 Total liabilities $ 1,053 $ — $ 383 $ 670 (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 Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending Total (gains) (income) (Amounts in millions) Included in Included Policyholder account balances: GMWB embedded derivatives (1) $ 275 $ (1 ) $ — $ — $ — $ 7 $ — $ — $ — $ 281 $ (2 ) Fixed index annuity embedded derivatives 361 16 — — — — (1 ) — — 376 16 Indexed universal life embedded derivatives 12 (2 ) — — — 3 — — — 13 (2 ) Total policyholder account balances 648 13 — — — 10 (1 ) — — 670 12 Borrowings related to securitization entities 13 — — — — — (1 ) — — 12 — Total Level 3 liabilities $ 661 $ 13 $ — $ — $ — $ 10 $ (2 ) $ — $ — $ 682 $ 12 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning Total realized and losses Purchases Sales Issuances Settlements Transfer Transfer Ending Total (gains) (income) (Amounts in millions) Included in Included in OCI Policyholder account balances: GMWB embedded derivatives (1) $ 443 $ 43 $ — $ — $ — $ 8 $ — $ — $ — $ 494 $ 44 Fixed index annuity embedded derivatives 345 9 — — — — (3 ) — — 351 9 Indexed universal life embedded derivatives 12 (2 ) — — — 3 — — — 13 (2 ) Total policyholder account balances 800 50 — — — 11 (3 ) — — 858 51 Derivative liabilities: Credit default swaps related to securitization entities 6 (4 ) — — — — 1 — (3 ) — (4 ) Total derivative liabilities 6 (4 ) — — — — 1 — (3 ) — (4 ) Borrowings related to securitization entities 85 (69 ) — — — — (5 ) — — 11 (4 ) Total Level 3 liabilities $ 891 $ (23 ) $ — $ — $ — $ 11 $ (7 ) $ — $ (3 ) $ 869 $ 43 (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) (income) attributable (Amounts in millions) Included in net Included Purchases Sales Issuances Settlements Transfer Transfer Policyholder account balances: GMWB embedded derivatives (1) $ 303 $ (36 ) $ — $ — $ — $ 14 $ — $ — $ — $ 281 $ (33 ) Fixed index annuity embedded derivatives 344 36 — — — — (4 ) — — 376 36 Indexed universal life embedded derivatives 11 (3 ) — — — 5 — — — 13 (3 ) Total policyholder account balances 658 (3 ) — — — 19 (4 ) — — 670 — Borrowings related to securitization entities 12 1 — — — — (1 ) — — 12 1 Total Level 3 liabilities $ 670 $ (2 ) $ — $ — $ — $ 19 $ (5 ) $ — $ — $ 682 $ 1 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning as of January 1, 2016 Total realized and Ending as of June 30, 2016 Total attributable to liabilities still held (Amounts in millions) Included Included in OCI Purchases Sales Issuances Settlements Transfer into Level 3 Transfer out of Level 3 Policyholder account balances: GMWB embedded derivatives (1) $ 352 $ 126 $ — $ — $ — $ 16 $ — $ — $ — $ 494 $ 131 Fixed index annuity embedded derivatives 342 6 — — — 10 (7 ) — — 351 6 Indexed universal life embedded derivatives 10 (3 ) — — — 6 — — — 13 (3 ) Total policyholder account balances 704 129 — — — 32 (7 ) — — 858 134 Derivative liabilities: Credit default swaps related to securitization entities 14 (13 ) — — — — 2 — (3 ) — (13 ) Total derivative liabilities 14 (13 ) — — — — 2 — (3 ) — (13 ) Borrowings related to securitization entities 81 (65 ) — — — — (5 ) — — 11 — Total Level 3 liabilities $ 799 $ 51 $ — $ — $ — $ 32 $ (10 ) $ — $ (3 ) $ 869 $ 121 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Gains and Losses Included in Net (Income) Loss from Liabilities Measured at Fair Value | The following table presents the gains and losses included in net (income) 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 Six months (Amounts in millions) 2017 2016 2017 2016 Total realized and unrealized (gains) losses included in net (income): Net investment income $ — $ — $ — $ — Net investment (gains) losses 13 (23 ) (2 ) 51 Total $ 13 $ (23 ) $ (2 ) $ 51 Total (gains) losses included in net (income) attributable to liabilities still held: Net investment income $ — $ — $ — $ — Net investment (gains) losses 12 43 1 121 Total $ 12 $ 43 $ 1 $ 121 |
Summary of Significant Unobservable Inputs Used for Certain Liability Fair Value Measurements | The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of June 30, 2017: (Amounts in millions) Valuation technique Fair value Unobservable input Range Weighted-average Policyholder account balances: GMWB embedded derivatives (1) Stochastic cash flow model $ 281 Withdrawal utilization rate Lapse rate Non-performance risk (credit spreads) Equity index volatility 40% - 84% — % - 7% 26bps - 83bps 14% - 24% 64% 4% 66bps 20% Fixed index annuity embedded derivatives Option budget method $ 376 Expected future interest credited —% - 2% 2% Indexed universal life embedded derivatives Option budget method $ 13 Expected future interest credited 3% - 8% 5% (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 six June 30, (Amounts in millions) 2017 2016 Unamortized beginning balance $ 4,241 $ 4,569 Impact of foreign currency translation 6 8 Costs deferred 44 91 Amortization, net of interest accretion (197 ) (177 ) Unamortized ending balance 4,094 4,491 Accumulated effect of net unrealized investment (gains) losses (1,716 ) (445 ) Ending balance $ 2,378 $ 4,046 |
Liability for Policy and Cont27
Liability for Policy and Contract Claims (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Schedule of Liability for Policy and Contract Claims | The following table sets forth changes in our liability for policy and contract claims as of the dates indicated: As of or for the six June 30, (Amounts in millions) 2017 2016 Beginning balance $ 9,256 $ 8,095 Less reinsurance recoverables (2,409 ) (2,122 ) Net beginning balance 6,847 5,973 Incurred related to insured events of: Current year 1,804 1,608 Prior years (244 ) 32 Total incurred 1,560 1,640 Paid related to insured events of: Current year (450 ) (443 ) Prior years (1,224 ) (1,162 ) Total paid (1,674 ) (1,605 ) Interest on liability for policy and contract claims 147 123 Foreign currency translation 18 10 Net ending balance 6,898 6,141 Add reinsurance recoverables 2,341 2,148 Ending balance $ 9,239 $ 8,289 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six months ended June 30, (Amounts in millions) 2017 2016 2017 2016 Pre-tax income $ 401 $ 351 $ 733 $ 501 Statutory U.S. federal income tax rate $ 140 35.0 % $ 122 35.0 % $ 257 35.0 % $ 175 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect 1 0.2 — — (2 ) (0.3 ) 1 0.2 Tax favored investments (3 ) (0.7 ) (2 ) (0.5 ) (2 ) (0.3 ) (3 ) (0.6 ) Effect of foreign operations (8 ) (2.0 ) (11 ) (3.2 ) (8 ) (1.0 ) (17 ) (3.4 ) Reversal of valuation allowance — — — — — — (25 ) (5.0 ) Stock-based compensation — — — — 1 0.2 3 0.6 Loss on sale of business — — 1 0.2 — — (1 ) (0.2 ) Other, net — — — (0.2 ) — — — (0.1 ) Effective rate $ 130 32.5 % $ 110 31.3 % $ 246 33.6 % $ 133 26.5 % |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Revenues of Major Product Groups 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 June 30, Six months ended (Amounts in millions) 2017 2016 2017 2016 Revenues: U.S. Mortgage Insurance segment $ 189 $ 176 $ 376 $ 351 Canada Mortgage Insurance segment 204 147 373 307 Australia Mortgage Insurance segment 97 113 219 218 U.S. Life Insurance segment: Long-term care insurance 1,036 1,119 2,030 2,071 Life insurance 411 412 828 535 Fixed annuities 210 189 415 395 U.S. Life Insurance segment 1,657 1,720 3,273 3,001 Runoff segment 89 65 176 134 Corporate and Other activities (13 ) 15 (23 ) 10 Total revenues $ 2,223 $ 2,236 $ 4,394 $ 4,021 |
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities | The following tables present the reconciliation of net income available to Genworth Financial, Inc.’s common stockholders to adjusted operating income available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated: Three months ended June 30, Six months ended June 30, (Amounts in millions) 2017 2016 2017 2016 Net income available to Genworth Financial, Inc.’s common stockholders $ 202 $ 172 $ 357 $ 225 Add: net income attributable to noncontrolling interests 69 48 130 103 Net income 271 220 487 328 Loss from discontinued operations, net of taxes — (21 ) — (40 ) Income from continuing operations 271 241 487 368 Less: income from continuing operations attributable to noncontrolling interests 69 48 130 103 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders 202 193 357 265 Adjustments to income from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (79 ) (39 ) (99 ) (20 ) Gains from sale of businesses — (10 ) — (3 ) Gains on early extinguishment of debt, net — (64 ) — (48 ) Losses from life block transactions — — — 9 Expenses related to restructuring — 5 1 20 Fees associated with bond consent solicitation — — — 18 Taxes on adjustments 28 38 35 (15 ) Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 151 $ 123 $ 294 $ 226 (1) For the three months ended June 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(6) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $22 million and $(3) million, respectively. For the six months ended June 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(15) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $36 million and $6 million, respectively. Three months ended Six months ended June 30, (Amounts in millions) 2017 2016 2017 2016 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 91 $ 61 $ 164 $ 122 Canada Mortgage Insurance segment 41 38 77 71 Australia Mortgage Insurance segment 12 15 25 34 U.S. Life Insurance segment: Long-term care insurance 33 37 47 71 Life insurance (1 ) 31 15 62 Fixed annuities 7 (13 ) 30 13 U.S. Life Insurance segment 39 55 92 146 Runoff segment 11 6 25 10 Corporate and Other activities (43 ) (52 ) (89 ) (157 ) Adjusted operating income available to Genworth Financial, Inc.’s common stockholders $ 151 $ 123 $ 294 $ 226 |
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) June 30, December 31, Assets: U.S. Mortgage Insurance segment $ 2,877 $ 2,674 Canada Mortgage Insurance segment 5,141 4,884 Australia Mortgage Insurance segment 2,822 2,619 U.S. Life Insurance segment 82,019 81,933 Runoff segment 11,075 11,352 Corporate and Other activities 1,082 1,196 Total assets $ 105,016 $ 104,658 |
Changes in Accumulated Other 30
Changes in Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Component of Changes in Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following tables show the changes in accumulated other comprehensive income, net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives hedges (2) Foreign Total Balances as of April 1, 2017 $ 1,243 $ 2,036 $ (183 ) $ 3,096 OCI before reclassifications (32 ) 48 61 77 Amounts reclassified from (to) OCI (40 ) (20 ) — (60 ) Current period OCI (72 ) 28 61 17 Balances as of June 30, 2017 before noncontrolling interests 1,171 2,064 (122 ) 3,113 Less: change in OCI attributable to noncontrolling interests (9 ) — 27 18 Balances as of June 30, 2017 $ 1,180 $ 2,064 $ (149 ) $ 3,095 (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 hedges (2) Foreign Total Balances as of April 1, 2016 $ 2,057 $ 2,302 $ (174 ) $ 4,185 OCI before reclassifications 815 160 8 983 Amounts reclassified from (to) OCI (65 ) (23 ) — (88 ) Current period OCI 750 137 8 895 Balances as of June 30, 2016 before noncontrolling interests 2,807 2,439 (166 ) 5,080 Less: change in OCI attributable to noncontrolling interests 18 — (26 ) (8 ) Balances as of June 30, 2016 $ 2,789 $ 2,439 $ (140 ) $ 5,088 (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 hedges (2) Foreign Total Balances as of January 1, 2017 $ 1,262 $ 2,085 $ (253 ) $ 3,094 OCI before reclassifications (25 ) 19 180 174 Amounts reclassified from (to) OCI (58 ) (40 ) — (98 ) Current period OCI (83 ) (21 ) 180 76 Balances as of June 30, 2017 before noncontrolling interests 1,179 2,064 (73 ) 3,170 Less: change in OCI attributable to noncontrolling interests (1 ) — 76 75 Balances as of June 30, 2017 $ 1,180 $ 2,064 $ (149 ) $ 3,095 (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, 2016 $ 1,254 $ 2,045 $ (289 ) $ 3,010 OCI before reclassifications 1,606 435 224 2,265 Amounts reclassified from (to) OCI (53 ) (41 ) — (94 ) Current period OCI 1,553 394 224 2,171 Balances as of June 30, 2016 before noncontrolling interests 2,807 2,439 (65 ) 5,181 Less: change in OCI attributable to noncontrolling interests 18 — 75 93 Balances as of June 30, 2016 $ 2,789 $ 2,439 $ (140 ) $ 5,088 (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, net of taxes, for the periods presented: Amount reclassified from Affected line item in the consolidated statements of income Three months Six months (Amounts in millions) 2017 2016 2017 2016 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (61 ) $ (100 ) $ (89 ) $ (82 ) Net investment (gains) losses Provision for income taxes 21 35 31 29 Provision for income taxes Total $ (40 ) $ (65 ) $ (58 ) $ (53 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (31 ) $ (28 ) $ (61 ) $ (53 ) Net investment income Interest rate swaps hedging assets (1 ) — (2 ) (1 ) Net investment (gains) losses Inflation indexed swaps — — — (2 ) Net investment income Inflation indexed swaps — (7 ) — (7 ) Net investment (gains) losses Provision for income taxes 12 12 23 22 Provision for income taxes Total $ (20 ) $ (23 ) $ (40 ) $ (41 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Finan31
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Consolidating Balance Sheet | The following table presents the condensed consolidating balance sheet information as of June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 62,144 $ (200 ) $ 61,944 Equity securities available-for-sale, at fair value — — 855 — 855 Commercial mortgage loans — — 6,237 — 6,237 Restricted commercial mortgage loans related to securitization entities — — 118 — 118 Policy loans — — 1,824 — 1,824 Other invested assets — 99 2,080 (2 ) 2,177 Restricted other invested assets related to securitization entities, at fair value — — 81 — 81 Investments in subsidiaries 13,128 12,503 — (25,631 ) — Total investments 13,128 12,602 73,339 (25,833 ) 73,236 Cash and cash equivalents — 758 2,095 — 2,853 Accrued investment income — — 603 (4 ) 599 Deferred acquisition costs — — 2,378 — 2,378 Intangible assets and goodwill — — 334 — 334 Reinsurance recoverable — — 17,609 — 17,609 Other assets 11 137 568 (1 ) 715 Intercompany notes receivable — 135 20 (155 ) — Deferred tax assets — — 23 — 23 Separate account assets — — 7,269 — 7,269 Total assets $ 13,139 $ 13,632 $ 104,238 $ (25,993 ) $ 105,016 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 37,772 $ — $ 37,772 Policyholder account balances — — 24,971 — 24,971 Liability for policy and contract claims — — 9,239 — 9,239 Unearned premiums — — 3,400 — 3,400 Other liabilities 28 201 2,408 (8 ) 2,629 Intercompany notes payable 124 220 11 (355 ) — Borrowings related to securitization entities — — 63 — 63 Non-recourse funding obligations — — 310 — 310 Long-term borrowings — 3,720 485 — 4,205 Deferred tax liability (31 ) (831 ) 1,024 — 162 Separate account liabilities — — 7,269 — 7,269 Total liabilities 121 3,310 86,952 (363 ) 90,020 Equity: Common stock 1 — 2 (2 ) 1 Additional paid-in capital 11,969 9,097 18,382 (27,479 ) 11,969 Accumulated other comprehensive income (loss) 3,095 3,111 3,118 (6,229 ) 3,095 Retained earnings 653 (1,886 ) (6,494 ) 8,380 653 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,018 10,322 15,008 (25,330 ) 13,018 Noncontrolling interests — — 2,278 (300 ) 1,978 Total equity 13,018 10,322 17,286 (25,630 ) 14,996 Total liabilities and equity $ 13,139 $ 13,632 $ 104,238 $ (25,993 ) $ 105,016 The following table presents the condensed consolidating balance sheet information as of December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 60,772 $ (200 ) $ 60,572 Equity securities available-for-sale, at fair value — — 632 — 632 Commercial mortgage loans — — 6,111 — 6,111 Restricted commercial mortgage loans related to securitization entities — — 129 — 129 Policy loans — — 1,742 — 1,742 Other invested assets — 105 1,966 — 2,071 Restricted other invested assets related to securitization entities, at fair value — — 312 — 312 Investments in subsidiaries 12,730 12,308 — (25,038 ) — Total investments 12,730 12,413 71,664 (25,238 ) 71,569 Cash and cash equivalents — 998 1,786 — 2,784 Accrued investment income — — 663 (4 ) 659 Deferred acquisition costs — — 3,571 — 3,571 Intangible assets and goodwill — — 348 — 348 Reinsurance recoverable — — 17,755 — 17,755 Other assets 9 134 530 — 673 Intercompany notes receivable — 84 67 (151 ) — Deferred tax assets 28 — (28 ) — — Separate account assets — — 7,299 — 7,299 Total assets $ 12,767 $ 13,629 $ 103,655 $ (25,393 ) $ 104,658 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 37,063 $ — $ 37,063 Policyholder account balances — — 25,662 — 25,662 Liability for policy and contract claims — — 9,256 — 9,256 Unearned premiums — — 3,378 — 3,378 Other liabilities 39 301 2,581 (5 ) 2,916 Intercompany notes payable 84 267 — (351 ) — Borrowings related to securitization entities — — 74 — 74 Non-recourse funding obligations — — 310 — 310 Long-term borrowings — 3,716 464 — 4,180 Deferred tax liability — (816 ) 869 — 53 Separate account liabilities — — 7,299 — 7,299 Total liabilities 123 3,468 86,956 (356 ) 90,191 Equity: Common stock 1 — — — 1 Additional paid-in capital 11,962 9,097 20,252 (29,349 ) 11,962 Accumulated other comprehensive income (loss) 3,094 3,135 3,116 (6,251 ) 3,094 Retained earnings 287 (2,071 ) (8,792 ) 10,863 287 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,644 10,161 14,576 (24,737 ) 12,644 Noncontrolling interests — — 2,123 (300 ) 1,823 Total equity 12,644 10,161 16,699 (25,037 ) 14,467 Total liabilities and equity $ 12,767 $ 13,629 $ 103,655 $ (25,393 ) $ 104,658 |
Condensed Consolidating Income Statement | The following table presents the condensed consolidating income statement information for the three months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,111 $ — $ 1,111 Net investment income (1 ) 2 803 (3 ) 801 Net investment gains (losses) — (5 ) 106 — 101 Policy fees and other income — (1 ) 211 — 210 Total revenues (1 ) (4 ) 2,231 (3 ) 2,223 Benefits and expenses: Benefits and other changes in policy reserves — — 1,206 — 1,206 Interest credited — — 163 — 163 Acquisition and operating expenses, net of deferrals 15 — 225 — 240 Amortization of deferred acquisition costs and intangibles — — 139 — 139 Interest expense — 66 11 (3 ) 74 Total benefits and expenses 15 66 1,744 (3 ) 1,822 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (16 ) (70 ) 487 — 401 Provision (benefit) for income taxes (7 ) (24 ) 161 — 130 Equity in income of subsidiaries 211 145 — (356 ) — Income from continuing operations 202 99 326 (356 ) 271 Loss from discontinued operations, net of taxes — — — — — Net income 202 99 326 (356 ) 271 Less: net income attributable to noncontrolling interests — — 69 — 69 Net income available to Genworth Financial, Inc.’s common stockholders $ 202 $ 99 $ 257 $ (356 ) $ 202 The following table presents the condensed consolidating income statement information for the three months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,127 $ — $ 1,127 Net investment income — 1 781 (3 ) 779 Net investment gains (losses) — 2 28 — 30 Policy fees and other income — (2 ) 303 (1 ) 300 Total revenues — 1 2,239 (4 ) 2,236 Benefits and expenses: Benefits and other changes in policy reserves — — 1,193 — 1,193 Interest credited — — 173 — 173 Acquisition and operating expenses, net of deferrals 17 3 307 — 327 Amortization of deferred acquisition costs and intangibles — — 112 — 112 Interest expense — 70 14 (4 ) 80 Total benefits and expenses 17 73 1,799 (4 ) 1,885 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (17 ) (72 ) 440 — 351 Provision (benefit) for income taxes (3 ) (24 ) 137 — 110 Equity in income of subsidiaries 188 179 — (367 ) — Income from continuing operations 174 131 303 (367 ) 241 Loss from discontinued operations, net of taxes (2 ) (18 ) (1 ) — (21 ) Net income 172 113 302 (367 ) 220 Less: net income attributable to noncontrolling interests — — 48 — 48 Net income available to Genworth Financial, Inc.’s common stockholders $ 172 $ 113 $ 254 $ (367 ) $ 172 The following table presents the condensed consolidating income statement information for the six months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 2,247 $ — $ 2,247 Net investment income (2 ) 3 1,597 (7 ) 1,591 Net investment gains (losses) — (8 ) 143 — 135 Policy fees and other income — (1 ) 422 — 421 Total revenues (2 ) (6 ) 4,409 (7 ) 4,394 Benefits and expenses: Benefits and other changes in policy reserves — — 2,452 — 2,452 Interest credited — — 330 — 330 Acquisition and operating expenses, net of deferrals 28 — 482 — 510 Amortization of deferred acquisition costs and intangibles — — 233 — 233 Interest expense — 121 22 (7 ) 136 Total benefits and expenses 28 121 3,519 (7 ) 3,661 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (30 ) (127 ) 890 — 733 Provision (benefit) for income taxes (4 ) (44 ) 294 — 246 Equity in income of subsidiaries 383 268 — (651 ) — Income from continuing operations 357 185 596 (651 ) 487 Loss from discontinued operations, net of taxes — — — — — Net income 357 185 596 (651 ) 487 Less: net income attributable to noncontrolling interests — — 130 — 130 Net income available to Genworth Financial, Inc.’s common stockholders $ 357 $ 185 $ 466 $ (651 ) $ 357 The following table presents the condensed consolidating income statement information for the six months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,921 $ — $ 1,921 Net investment income (1 ) — 1,576 (7 ) 1,568 Net investment gains (losses) — (13 ) 24 — 11 Policy fees and other income — (6 ) 528 (1 ) 521 Total revenues (1 ) (19 ) 4,049 (8 ) 4,021 Benefits and expenses: Benefits and other changes in policy reserves — — 2,053 — 2,053 Interest credited — — 350 — 350 Acquisition and operating expenses, net of deferrals 105 38 578 — 721 Amortization of deferred acquisition costs and intangibles — — 211 — 211 Interest expense 1 141 51 (8 ) 185 Total benefits and expenses 106 179 3,243 (8 ) 3,520 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (107 ) (198 ) 806 — 501 Provision (benefit) for income taxes (27 ) (67 ) 227 — 133 Equity in income of subsidiaries 307 285 — (592 ) — Income from continuing operations 227 154 579 (592 ) 368 Loss from discontinued operations, net of taxes (2 ) (18 ) (20 ) — (40 ) Net income 225 136 559 (592 ) 328 Less: net income attributable to noncontrolling interests — — 103 — 103 Net income available to Genworth Financial, Inc.’s common stockholders $ 225 $ 136 $ 456 $ (592 ) $ 225 |
Condensed Consolidating Statement of Comprehensive Income | The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 202 $ 99 $ 326 $ (356 ) $ 271 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (63 ) (70 ) (71 ) 132 (72 ) Net unrealized gains (losses) on other-than-temporarily impaired securities — — — — — Derivatives qualifying as hedges 28 28 32 (60 ) 28 Foreign currency translation and other adjustments 34 29 61 (63 ) 61 Total other comprehensive income (loss) (1 ) (13 ) 22 9 17 Total comprehensive income 201 86 348 (347 ) 288 Less: comprehensive income attributable to noncontrolling interests — — 87 — 87 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 201 $ 86 $ 261 $ (347 ) $ 201 The following table presents the condensed consolidating comprehensive income statement information for the three months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 172 $ 113 $ 302 $ (367 ) $ 220 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 727 703 743 (1,428 ) 745 Net unrealized gains (losses) on other-than-temporarily impaired securities 5 6 6 (12 ) 5 Derivatives qualifying as hedges 137 137 149 (286 ) 137 Foreign currency translation and other adjustments 34 (18 ) 7 (15 ) 8 Total other comprehensive income (loss) 903 828 905 (1,741 ) 895 Total comprehensive income 1,075 941 1,207 (2,108 ) 1,115 Less: comprehensive income attributable to noncontrolling interests — — 40 — 40 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 1,075 $ 941 $ 1,167 $ (2,108 ) $ 1,075 The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 357 $ 185 $ 596 $ (651 ) $ 487 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (83 ) (101 ) (84 ) 184 (84 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 1 (2 ) 1 Derivatives qualifying as hedges (21 ) (21 ) (20 ) 41 (21 ) Foreign currency translation and other adjustments 104 97 180 (201 ) 180 Total other comprehensive income (loss) 1 (24 ) 77 22 76 Total comprehensive income 358 161 673 (629 ) 563 Less: comprehensive income attributable to noncontrolling interests — — 205 — 205 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 358 $ 161 $ 468 $ (629 ) $ 358 The following table presents the condensed consolidating comprehensive income statement information for the six months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 225 $ 136 $ 559 $ (592 ) $ 328 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 1,534 1,492 1,552 (3,026 ) 1,552 Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 2 (3 ) 1 Derivatives qualifying as hedges 394 393 424 (817 ) 394 Foreign currency translation and other adjustments 149 68 224 (217 ) 224 Total other comprehensive income (loss) 2,078 1,954 2,202 (4,063 ) 2,171 Total comprehensive income 2,303 2,090 2,761 (4,655 ) 2,499 Less: comprehensive income attributable to noncontrolling interests — — 196 — 196 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 2,303 $ 2,090 $ 2,565 $ (4,655 ) $ 2,303 |
Condensed Consolidating Statement of Cash Flows | The following table presents the condensed consolidating cash flows statement information for the six months ended June 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income $ 357 $ 185 $ 596 $ (651 ) $ 487 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (383 ) (268 ) — 651 — Dividends from subsidiaries — 64 (64 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 3 (79 ) — (76 ) Net investment (gains) losses — 8 (143 ) — (135 ) Charges assessed to policyholders — — (365 ) — (365 ) Acquisition costs deferred — — (44 ) — (44 ) Amortization of deferred acquisition costs and intangibles — — 233 — 233 Deferred income taxes 6 (14 ) 174 — 166 Trading securities, held-for-sale investments and derivative instruments — 1 430 — 431 Stock-based compensation expense 14 — 4 — 18 Change in certain assets and liabilities: Accrued investment income and other assets (6 ) (30 ) 12 1 (23 ) Insurance reserves — — 806 — 806 Current tax liabilities (4 ) (88 ) 60 — (32 ) Other liabilities, policy and contract claims and other policy-related balances (9 ) 64 (210 ) (3 ) (158 ) Net cash from operating activities (25 ) (75 ) 1,410 (2 ) 1,308 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 2,358 — 2,358 Commercial mortgage loans — — 307 — 307 Restricted commercial mortgage loans related to securitization entities — — 11 — 11 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,587 — 2,587 Purchases and originations of investments: Fixed maturity and equity securities — (46 ) (4,687 ) — (4,733 ) Commercial mortgage loans — — (431 ) — (431 ) Other invested assets, net — — (640 ) 2 (638 ) Policy loans, net — — 21 — 21 Intercompany notes receivable — (51 ) 47 4 — Capital contributions to subsidiaries (7 ) — 7 — — Payments for business purchased, net of cash acquired (7 ) — 2 — (5 ) Net cash used by investing activities (14 ) (97 ) (418 ) 6 (523 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 429 — 429 Withdrawals from universal life and investment contracts — — (1,091 ) — (1,091 ) Repayment of borrowings related to securitization entities — — (12 ) — (12 ) Dividends paid to noncontrolling interests — — (52 ) — (52 ) Proceeds from intercompany notes payable 40 (47 ) 11 (4 ) — Other, net (1 ) (21 ) (7 ) — (29 ) Net cash used by financing activities 39 (68 ) (722 ) (4 ) (755 ) Effect of exchange rate changes on cash and cash equivalents — — 39 — 39 Net change in cash and cash equivalents — (240 ) 309 — 69 Cash and cash equivalents at beginning of period — 998 1,786 — 2,784 Cash and cash equivalents at end of period $ — $ 758 $ 2,095 $ — $ 2,853 The following table presents the condensed consolidating cash flows statement information for the six months ended June 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income $ 225 $ 136 $ 559 $ (592 ) $ 328 Less loss from discontinued operations, net of taxes 2 18 20 — 40 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (307 ) (285 ) — 592 — Dividends from subsidiaries — 178 (178 ) — — (Gain) loss on sale of businesses — 1 (27 ) — (26 ) Amortization of fixed maturity securities discounts and premiums and limited partnerships — 2 (69 ) — (67 ) Net investment (gains) losses — 13 (24 ) — (11 ) Charges assessed to policyholders — — (384 ) — (384 ) Acquisition costs deferred — — (91 ) — (91 ) Amortization of deferred acquisition costs and intangibles — — 211 — 211 Deferred income taxes (9 ) 116 (103 ) — 4 Trading securities, held-for-sale investments and derivative instruments — 6 737 — 743 Stock-based compensation expense 12 — 4 — 16 Change in certain assets and liabilities: Accrued investment income and other assets 3 (139 ) (49 ) (1 ) (186 ) Insurance reserves — — 332 — 332 Current tax liabilities — (147 ) 203 — 56 Other liabilities, policy and contract claims and other policy-related balances (2 ) 115 (7 ) (5 ) 101 Net cash from operating activities (76 ) 14 1,134 (6 ) 1,066 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 150 1,530 — 1,680 Commercial mortgage loans — — 364 — 364 Restricted commercial mortgage loans related to securitization entities — — 20 — 20 Proceeds from sales of investments: Fixed maturity and equity securities — — 2,772 — 2,772 Purchases and originations of investments: Fixed maturity and equity securities — — (5,685 ) — (5,685 ) Commercial mortgage loans — — (317 ) — (317 ) Other invested assets, net — — (73 ) 6 (67 ) Policy loans, net — — (90 ) — (90 ) Intercompany notes receivable — (84 ) 21 63 — Proceeds from sale of businesses, net of cash transferred — 1 38 — 39 Net cash used by investing activities — 67 (1,420 ) 69 (1,284 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 810 — 810 Withdrawals from universal life and investment contracts — — (1,021 ) — (1,021 ) Redemption of non-recourse funding obligations — — (1,620 ) — (1,620 ) Repayment and repurchase of long-term debt — (326 ) (36 ) — (362 ) Repayment of borrowings related to securitization entities — — (30 ) — (30 ) Return of capital to noncontrolling interests — — (70 ) — (70 ) Dividends paid to noncontrolling interests — — (64 ) — (64 ) Proceeds from intercompany notes payable 76 (21 ) 8 (63 ) — Other, net — (24 ) 33 — 9 Net cash used by financing activities 76 (371 ) (1,990 ) (63 ) (2,348 ) Effect of exchange rate changes on cash and cash equivalents — — 30 — 30 Net change in cash and cash equivalents — (290 ) (2,246 ) — (2,536 ) Cash and cash equivalents at beginning of period — 1,124 4,869 — 5,993 Cash and cash equivalents at end of period $ — $ 834 $ 2,623 $ — $ 3,457 |
Formation of Genworth and Bas32
Formation of Genworth and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Billions | Oct. 21, 2016USD ($)$ / shares | Jun. 30, 2017Segment | Apr. 01, 2013 |
Entity Information [Line Items] | |||
Number of operating segments | Segment | 5 | ||
Genworth Holdings | |||
Entity Information [Line Items] | |||
Percentage of subsidiary equity ownership | 100.00% | ||
China Oceanwide Holdings Group Co., Ltd. | Definitive Acquisition Agreement | |||
Entity Information [Line Items] | |||
Total transaction value to acquire all of our outstanding common stock | $ | $ 2.7 | ||
Per share amount to acquire all of our outstanding common stock | $ / shares | $ 5.43 |
Accounting Changes - Additional
Accounting Changes - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2017 | Jun. 30, 2017 |
Accounting Policies [Abstract] | ||
Effect of deferred tax asset increase retained earnings | $ 9 | |
Adoption of Stock Compensation Guidance | ||
Accounting Policies [Abstract] | ||
Effect of deferred tax asset increase retained earnings | $ 9 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings (Loss) Per Share [Abstract] | ||||
Weighted-average shares used in basic earnings per share calculations | 499 | 498.5 | 498.8 | 498.3 |
Stock options, restricted stock units and stock appreciation rights | 2.2 | 1.9 | 2.3 | 1.6 |
Weighted-average shares used in diluted earnings per share calculations | 501.2 | 500.4 | 501.1 | 499.9 |
Income (loss) from continuing operations: | ||||
Income (loss) from continuing operations | $ 271 | $ 241 | $ 487 | $ 368 |
Less: income from continuing operations attributable to noncontrolling interests | 69 | 48 | 130 | 103 |
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ 202 | $ 193 | $ 357 | $ 265 |
Basic per share | $ 0.40 | $ 0.39 | $ 0.72 | $ 0.53 |
Diluted per share | $ 0.40 | $ 0.39 | $ 0.71 | $ 0.53 |
Income (loss) from discontinued operations: | ||||
Income (loss) from discontinued operations, net of taxes | $ 0 | $ (21) | $ 0 | $ (40) |
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.'s common stockholders | $ 0 | $ (21) | $ 0 | $ (40) |
Basic per share | $ 0 | $ (0.04) | $ 0 | $ (0.08) |
Diluted per share | $ 0 | $ (0.04) | $ 0 | $ (0.08) |
Net income (loss): | ||||
Income (loss) from continuing operations | $ 271 | $ 241 | $ 487 | $ 368 |
Income (loss) from discontinued operations, net of taxes | 0 | (21) | 0 | (40) |
Net income (loss) | 271 | 220 | 487 | 328 |
Less: net income attributable to noncontrolling interests | 69 | 48 | 130 | 103 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 202 | $ 172 | $ 357 | $ 225 |
Basic per share | $ 0.40 | $ 0.35 | $ 0.72 | $ 0.45 |
Diluted per share | $ 0.40 | $ 0.34 | $ 0.71 | $ 0.45 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 824 | $ 798 | $ 1,635 | $ 1,610 |
Expenses and fees | (23) | (19) | (44) | (42) |
Net investment income | 801 | 779 | 1,591 | 1,568 |
Fixed maturity securities - taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 649 | 634 | 1,290 | 1,275 |
Fixed maturity securities - non-taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 3 | 3 | 6 | 6 |
Commercial mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 76 | 77 | 153 | 158 |
Restricted commercial mortgage loans related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 2 | 3 | 4 | 5 |
Equity Securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 9 | 7 | 17 | 12 |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 35 | 33 | 67 | 71 |
Restricted other invested assets related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 1 | 1 | 1 | 3 |
Policy Loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 39 | 34 | 81 | 69 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 10 | $ 6 | $ 16 | $ 11 |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Investments [Abstract] | |||||
Realized gains | $ 74 | $ 150 | $ 137 | $ 166 | |
Realized losses | (11) | (28) | (45) | (51) | |
Net realized gains (losses) on available-for-sale securities | 63 | 122 | 92 | 115 | |
Total other-than-temporary impairments | (2) | (22) | (3) | (33) | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Net other-than-temporary impairments | (2) | (22) | (3) | (33) | |
Trading securities | 1 | 16 | 1 | 44 | |
Commercial mortgage loans | 1 | 1 | 2 | 2 | |
Net gains (losses) related to securitization entities | 2 | (61) | 4 | (53) | |
Derivative instruments | [1] | 36 | (24) | 39 | (62) |
Other | 0 | (2) | 0 | (2) | |
Net investment gains (losses) | $ 101 | $ 30 | $ 135 | $ 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 | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017USD ($)Loan | Jun. 30, 2016USD ($)Loan | Jun. 30, 2017USD ($)Loan | Jun. 30, 2016USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Schedule of Investments [Line Items] | |||||
Aggregate fair value of securities sold | $ 228 | $ 300 | $ 1,104 | $ 540 | |
Aggregate fair value of securities sold, percentage of book value | 95.00% | 92.00% | 96.00% | 92.00% | |
Less than 12 months, average fair value percentage below cost for securities in a continuous loss position | 2.00% | 2.00% | |||
12 months or more, Gross unrealized losses | $ 74 | $ 74 | $ 134 | ||
Investments subject to call provisions | 11,818 | $ 11,818 | |||
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 | 5 | 5 | 16 | ||
Commercial mortgage loans modified or extended, carrying value | $ 8 | $ 8 | $ 85 | ||
Number of loans modified to troubled debt restructuring | Loan | 1 | ||||
Troubled debt restructuring, loan | $ 1 | ||||
Number of loans | Loan | 0 | 0 | |||
Commercial mortgage loans, recorded investment | $ 6,250 | $ 6,250 | 6,125 | ||
Investments in partnerships or similar entities generally considered VIEs | 203 | 203 | 178 | ||
Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | 65 | 65 | 116 | ||
Fixed maturity securities | Non-U.S. corporate | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | 17 | 17 | 25 | ||
Fixed maturity securities | State and Political Subdivisions | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | $ 16 | $ 16 | 18 | ||
Fixed maturity securities | More Than 20% Below Cost | |||||
Schedule of Investments [Line Items] | |||||
Stated percentage below cost of available-for-sale securities in a continuous loss position for twelve months or longer | 20.00% | 20.00% | |||
Fixed maturity securities | More Than 20% Below Cost | Non-U.S. corporate | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | $ 2 | $ 2 | |||
Stated percentage below cost of securities in unrealized loss position | 20.00% | 20.00% | |||
Fixed maturity securities | More Than 20% Below Cost | State and Political Subdivisions | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | $ 2 | $ 2 | |||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 20.00% | 20.00% | |||
Stated percentage below cost of securities in unrealized loss position | 21.00% | 21.00% | |||
Fixed maturity securities | Less Than 20 Percent Below Cost | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | $ 61 | $ 61 | 90 | ||
12 months or more, average fair value percentage below cost for securities in a continuous loss position | 78.00% | 78.00% | |||
Stated percentage below cost of available-for-sale securities in a continuous loss position for twelve months or longer | 20.00% | 20.00% | |||
Floating rate commercial mortgage loans | |||||
Schedule of Investments [Line Items] | |||||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 | 0 | ||
Investment grade | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | $ 58 | $ 58 | $ 108 | ||
Investment grade | Less Than 20 Percent Below Cost | |||||
Schedule of Investments [Line Items] | |||||
Less than 12 months, stated percentage below cost of securities in unrealized loss position | 20.00% | 20.00% | |||
Investment grade | Fixed maturity securities | Less Than 20 Percent Below Cost | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 5.00% | 5.00% | |||
Industrial | |||||
Schedule of Investments [Line Items] | |||||
Number of loans | Loan | 1 | 1 | 1 | ||
Individually impaired commercial mortgage loans | $ 13 | $ 13 | $ 12 | ||
Impaired loans, unpaid principal balance | $ 16 | 16 | 15 | ||
Individually impaired loans, charge-offs | $ 3 | 3 | |||
Commercial mortgage loans, recorded investment | $ 1,590 | $ 1,590 | 1,533 | ||
Office | |||||
Schedule of Investments [Line Items] | |||||
Number of loans | Loan | 1 | 1 | |||
Individually impaired commercial mortgage loans | $ 5 | $ 5 | |||
Impaired loans, unpaid principal balance | $ 6 | 6 | |||
Individually impaired loans, charge-offs | $ 1 | ||||
Commercial mortgage loans, recorded investment | 1,480 | 1,480 | 1,430 | ||
Retail | |||||
Schedule of Investments [Line Items] | |||||
Number of loans | Loan | 1 | 1 | |||
Individually impaired commercial mortgage loans | $ 5 | $ 5 | |||
Impaired loans, unpaid principal balance | $ 6 | 6 | |||
Individually impaired loans, charge-offs | $ 1 | ||||
Commercial mortgage loans, recorded investment | 2,199 | $ 2,199 | 2,178 | ||
Finance and insurance | Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
Percent of investment portfolio, greater than 10% | 23.00% | ||||
Finance and insurance | Fixed maturity securities | Non-U.S. corporate | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | 1 | $ 1 | 1 | ||
Utilities | Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
Percent of investment portfolio, greater than 10% | 14.00% | ||||
Utilities | Fixed maturity securities | Non-U.S. corporate | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | 1 | $ 1 | 1 | ||
Consumer-non-cyclical | Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
Percent of investment portfolio, greater than 10% | 14.00% | ||||
Consumer-non-cyclical | Fixed maturity securities | Non-U.S. corporate | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | $ 1 | $ 1 | $ 0 |
Credit Losses Recognized in Net
Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Cumulative credit losses, beginning balance | $ 41 | $ 63 | $ 42 | $ 64 |
Other-than-temporary impairments not previously recognized | 0 | 1 | 0 | 1 |
Securities sold, paid down or disposed | (3) | (2) | (4) | (3) |
Cumulative credit losses, ending balance | $ 38 | $ 62 | $ 38 | $ 62 |
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 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
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 | $ (3,038) | $ (1,611) | |||||
Income taxes, net | (665) | (711) | |||||
Net unrealized investment gains (losses) including noncontrolling interests | 1,263 | 1,346 | |||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 83 | 84 | |||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | [1] | 1,180 | $ 1,243 | 1,262 | $ 2,789 | $ 2,057 | $ 1,254 |
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 | 4,797 | 3,656 | |||||
Equity securities | 169 | 12 | |||||
Subtotal | [2] | $ 4,966 | $ 3,668 | ||||
[1] | Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. | ||||||
[2] | Excludes foreign exchange. |
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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Investments [Abstract] | |||||
Net unrealized investment gains (losses), beginning of period | [1] | $ 1,243 | $ 2,057 | $ 1,262 | $ 1,254 |
Unrealized gains (losses) on investment securities | 995 | 1,760 | 1,387 | 3,356 | |
Adjustment to deferred acquisition costs | (741) | (132) | (1,046) | (274) | |
Adjustment to present value of future profits | (28) | 5 | (33) | (29) | |
Adjustment to sales inducements | (6) | (21) | (11) | (40) | |
Adjustment to benefit reserves | (269) | (357) | (337) | (531) | |
Provision for income taxes | 17 | (440) | 15 | (876) | |
Change in unrealized gains (losses) on investment securities | [1] | (32) | 815 | (25) | 1,606 |
Reclassification adjustments to net investment (gains) losses, net of taxes | [1] | (40) | (65) | (58) | (53) |
Change in net unrealized investment gains (losses) | [1] | (72) | 750 | (83) | 1,553 |
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | [1] | (9) | 18 | (1) | 18 |
Net unrealized investment gains (losses), end of period | [1] | $ 1,180 | $ 2,789 | $ 1,180 | $ 2,789 |
[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 Gain41
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 | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification adjustments to net investment (gains) losses, taxes | $ 21 | $ 35 | $ 31 | $ 29 |
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 | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | $ 57,240 | $ 57,014 |
Fair value, fixed maturity securities | 61,944 | 60,572 |
Amortized cost or cost, equity securities | 692 | 628 |
Fair value, equity securities | 855 | 632 |
Amortized cost or cost, total | 57,932 | 57,642 |
Fair value, total | 62,799 | 61,204 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,861 | 5,439 |
Fair value, fixed maturity securities | 5,629 | 6,036 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,604 | 2,515 |
Fair value, fixed maturity securities | 2,806 | 2,647 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,997 | 2,024 |
Fair value, fixed maturity securities | 2,091 | 2,107 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 25,580 | 24,943 |
Fair value, fixed maturity securities | 28,071 | 26,828 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,331 | 4,137 |
Fair value, fixed maturity securities | 4,848 | 4,550 |
Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,200 | 2,167 |
Fair value, fixed maturity securities | 2,370 | 2,300 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 6,026 | 5,719 |
Fair value, fixed maturity securities | 6,590 | 6,097 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,296 | 4,335 |
Fair value, fixed maturity securities | 4,782 | 4,734 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,502 | 2,473 |
Fair value, fixed maturity securities | 2,675 | 2,598 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,250 | 1,161 |
Fair value, fixed maturity securities | 1,344 | 1,223 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,021 | 2,043 |
Fair value, fixed maturity securities | 2,287 | 2,258 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,497 | 1,455 |
Fair value, fixed maturity securities | 1,599 | 1,530 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,082 | 1,121 |
Fair value, fixed maturity securities | 1,179 | 1,190 |
Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 375 | 332 |
Fair value, fixed maturity securities | 397 | 348 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 11,643 | 11,717 |
Fair value, fixed maturity securities | 12,430 | 12,295 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,009 | 940 |
Fair value, fixed maturity securities | 1,053 | 969 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,313 | 1,234 |
Fair value, fixed maturity securities | 1,434 | 1,331 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,418 | 2,413 |
Fair value, fixed maturity securities | 2,590 | 2,538 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 722 | 711 |
Fair value, fixed maturity securities | 746 | 714 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 979 | 953 |
Fair value, fixed maturity securities | 1,043 | 987 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 948 | 928 |
Fair value, fixed maturity securities | 1,015 | 958 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 545 | 518 |
Fair value, fixed maturity securities | 574 | 535 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 484 | 434 |
Fair value, fixed maturity securities | 494 | 442 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 638 | 619 |
Fair value, fixed maturity securities | 704 | 677 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,587 | 2,967 |
Fair value, fixed maturity securities | 2,777 | 3,144 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,045 | 4,122 |
Fair value, fixed maturity securities | 4,319 | 4,379 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,330 | 3,084 |
Fair value, fixed maturity securities | 3,406 | 3,129 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,180 | 3,170 |
Fair value, fixed maturity securities | 3,192 | 3,151 |
Not other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 4,928 | 4,095 |
Gross unrealized losses, fixed maturity securities | (240) | (551) |
Gross unrealized gains, equity securities | 176 | 31 |
Gross unrealized losses, equity securities | (13) | (27) |
Gross unrealized gains | 5,104 | 4,126 |
Gross unrealized losses | (253) | (578) |
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 | 775 | 647 |
Gross unrealized losses, fixed maturity securities | (7) | (50) |
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 233 | 182 |
Gross unrealized losses, fixed maturity securities | (31) | (50) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 108 | 101 |
Gross unrealized losses, fixed maturity securities | (14) | (18) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 2,587 | 2,124 |
Gross unrealized losses, fixed maturity securities | (96) | (239) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 534 | 454 |
Gross unrealized losses, fixed maturity securities | (17) | (41) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 184 | 157 |
Gross unrealized losses, fixed maturity securities | (14) | (24) |
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 | 578 | 424 |
Gross unrealized losses, fixed maturity securities | (14) | (46) |
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 | 497 | 433 |
Gross unrealized losses, fixed maturity securities | (11) | (34) |
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 | 187 | 157 |
Gross unrealized losses, fixed maturity securities | (14) | (32) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 99 | 76 |
Gross unrealized losses, fixed maturity securities | (5) | (14) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 272 | 228 |
Gross unrealized losses, fixed maturity securities | (6) | (13) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 110 | 92 |
Gross unrealized losses, fixed maturity securities | (8) | (17) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 103 | 86 |
Gross unrealized losses, fixed maturity securities | (6) | (17) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 23 | 17 |
Gross unrealized losses, fixed maturity securities | (1) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 827 | 669 |
Gross unrealized losses, fixed maturity securities | (40) | (91) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 48 | 40 |
Gross unrealized losses, fixed maturity securities | (4) | (11) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 131 | 109 |
Gross unrealized losses, fixed maturity securities | (10) | (12) |
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 | 176 | 134 |
Gross unrealized losses, fixed maturity securities | (4) | (9) |
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 | 28 | 17 |
Gross unrealized losses, fixed maturity securities | (4) | (14) |
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 | 67 | 44 |
Gross unrealized losses, fixed maturity securities | (3) | (10) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 70 | 39 |
Gross unrealized losses, fixed maturity securities | (3) | (9) |
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 | 31 | 21 |
Gross unrealized losses, fixed maturity securities | (2) | (4) |
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 | 11 | 10 |
Gross unrealized losses, fixed maturity securities | (1) | (2) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 70 | 65 |
Gross unrealized losses, fixed maturity securities | (4) | (7) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 195 | 190 |
Gross unrealized losses, fixed maturity securities | (5) | (13) |
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 269 | 259 |
Gross unrealized losses, fixed maturity securities | (8) | (12) |
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 111 | 98 |
Gross unrealized losses, fixed maturity securities | (37) | (56) |
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 18 | 15 |
Gross unrealized losses, fixed maturity securities | (7) | (35) |
Other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 16 | 14 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Gross unrealized gains, equity securities | 0 | 0 |
Gross unrealized losses, equity securities | 0 | 0 |
Gross unrealized gains | 16 | 14 |
Gross unrealized losses | 0 | 0 |
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 | 0 | 0 |
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 | 0 | 0 |
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 | 0 | 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 | 0 | 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 | 13 | 10 |
Gross unrealized losses, fixed maturity securities | 0 | 0 |
Other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 2 | 3 |
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 | Jun. 30, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 7,981 | $ 12,697 |
Less than 12 months, Gross unrealized losses | $ (179) | $ (444) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,279 | 1,872 |
12 months or more, Fair value | $ 1,322 | $ 1,737 |
12 months or more, Gross unrealized losses | $ (74) | $ (134) |
12 months or more, Number of securities in a continuous loss position | Securities | 254 | 322 |
Fair value | $ 9,303 | $ 14,434 |
Gross unrealized losses | $ (253) | $ (578) |
Number of securities in a continuous loss position | Securities | 1,533 | 2,194 |
Investment grade | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 7,676 | $ 12,339 |
Less than 12 months, Gross unrealized losses | $ (168) | $ (432) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,098 | 1,657 |
12 months or more, Fair value | $ 1,075 | $ 1,354 |
12 months or more, Gross unrealized losses | $ (58) | $ (108) |
12 months or more, Number of securities in a continuous loss position | Securities | 194 | 250 |
Fair value | $ 8,751 | $ 13,693 |
Gross unrealized losses | $ (226) | $ (540) |
Number of securities in a continuous loss position | Securities | 1,292 | 1,907 |
Below investment grade | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 305 | $ 358 |
Less than 12 months, Gross unrealized losses | $ (11) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 181 | 215 |
12 months or more, Fair value | $ 247 | $ 383 |
12 months or more, Gross unrealized losses | $ (16) | $ (26) |
12 months or more, Number of securities in a continuous loss position | Securities | 60 | 72 |
Fair value | $ 552 | $ 741 |
Gross unrealized losses | $ (27) | $ (38) |
Number of securities in a continuous loss position | Securities | 241 | 287 |
Fixed maturity securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 7,907 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (175) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,127 | 1,690 |
12 months or more, Fair value | $ 1,215 | $ 1,623 |
12 months or more, Gross unrealized losses | $ (65) | $ (116) |
12 months or more, Number of securities in a continuous loss position | Securities | 203 | 275 |
Fair value | $ 9,122 | $ 14,201 |
Gross unrealized losses | $ (240) | $ (551) |
Number of securities in a continuous loss position | Securities | 1,330 | 1,965 |
Fixed maturity securities | Less Than 20 Percent Below Cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 7,907 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (175) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,127 | 1,690 |
12 months or more, Fair value | $ 1,199 | $ 1,543 |
12 months or more, Gross unrealized losses | $ (61) | $ (90) |
12 months or more, Number of securities in a continuous loss position | Securities | 200 | 267 |
Fair value | $ 9,106 | $ 14,121 |
Gross unrealized losses | $ (236) | $ (525) |
Number of securities in a continuous loss position | Securities | 1,327 | 1,957 |
Fixed maturity securities | 20 To 50 percent below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 0 | $ 0 |
Less than 12 months, Gross unrealized losses | $ 0 | $ 0 |
Less than 12 months, Number of securities in a continuous loss position | Securities | 0 | 0 |
12 months or more, Fair value | $ 16 | $ 80 |
12 months or more, Gross unrealized losses | $ (4) | $ (26) |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 8 |
Fair value | $ 16 | $ 80 |
Gross unrealized losses | $ (4) | $ (26) |
Number of securities in a continuous loss position | Securities | 3 | 8 |
Fixed maturity securities | Greater than 50% below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 0 | |
Less than 12 months, Gross unrealized losses | $ 0 | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 0 | |
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 | |
Fair value | $ 0 | |
Gross unrealized losses | $ 0 | |
Number of securities in a continuous loss position | Securities | 0 | |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 313 | $ 1,074 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (50) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 23 | 37 |
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 | $ 313 | $ 1,074 |
Gross unrealized losses | $ (7) | $ (50) |
Number of securities in a continuous loss position | Securities | 23 | 37 |
Fixed maturity securities | State and Political Subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 364 | $ 644 |
Less than 12 months, Gross unrealized losses | $ (15) | $ (32) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 70 | 109 |
12 months or more, Fair value | $ 149 | $ 142 |
12 months or more, Gross unrealized losses | $ (16) | $ (18) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 12 |
Fair value | $ 513 | $ 786 |
Gross unrealized losses | $ (31) | $ (50) |
Number of securities in a continuous loss position | Securities | 83 | 121 |
Fixed maturity securities | Non-U.S. government | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 695 | $ 497 |
Less than 12 months, Gross unrealized losses | $ (13) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 42 | 51 |
12 months or more, Fair value | $ 16 | $ 0 |
12 months or more, Gross unrealized losses | $ (1) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 0 |
Fair value | $ 711 | $ 497 |
Gross unrealized losses | $ (14) | $ (18) |
Number of securities in a continuous loss position | Securities | 50 | 51 |
Fixed maturity securities | U.S. corporate | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 2,954 | $ 5,221 |
Less than 12 months, Gross unrealized losses | $ (70) | $ (190) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 434 | 711 |
12 months or more, Fair value | $ 443 | $ 662 |
12 months or more, Gross unrealized losses | $ (26) | $ (49) |
12 months or more, Number of securities in a continuous loss position | Securities | 57 | 94 |
Fair value | $ 3,397 | $ 5,883 |
Gross unrealized losses | $ (96) | $ (239) |
Number of securities in a continuous loss position | Securities | 491 | 805 |
Fixed maturity securities | Non-U.S. corporate | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 1,297 | $ 2,257 |
Less than 12 months, Gross unrealized losses | $ (23) | $ (66) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 208 | 330 |
12 months or more, Fair value | $ 281 | $ 408 |
12 months or more, Gross unrealized losses | $ (17) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 37 | 57 |
Fair value | $ 1,578 | $ 2,665 |
Gross unrealized losses | $ (40) | $ (91) |
Number of securities in a continuous loss position | Securities | 245 | 387 |
Fixed maturity securities | Residential mortgage-backed | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 567 | $ 725 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (11) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 77 | 100 |
12 months or more, Fair value | $ 51 | $ 58 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 31 | 35 |
Fair value | $ 618 | $ 783 |
Gross unrealized losses | $ (8) | $ (12) |
Number of securities in a continuous loss position | Securities | 108 | 135 |
Fixed maturity securities | Commercial mortgage-backed | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 956 | $ 1,091 |
Less than 12 months, Gross unrealized losses | $ (36) | $ (55) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 136 | 168 |
12 months or more, Fair value | $ 25 | $ 25 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 5 | 9 |
Fair value | $ 981 | $ 1,116 |
Gross unrealized losses | $ (37) | $ (56) |
Number of securities in a continuous loss position | Securities | 141 | 177 |
Fixed maturity securities | Other asset-backed | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 761 | $ 1,069 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (13) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 137 | 184 |
12 months or more, Fair value | $ 250 | $ 328 |
12 months or more, Gross unrealized losses | $ (3) | $ (22) |
12 months or more, Number of securities in a continuous loss position | Securities | 52 | 68 |
Fair value | $ 1,011 | $ 1,397 |
Gross unrealized losses | $ (7) | $ (35) |
Number of securities in a continuous loss position | Securities | 189 | 252 |
Fixed maturity securities | Investment grade | Less Than 20 Percent Below Cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 5.00% | |
Fixed maturity securities | Investment grade | 20 To 50 percent below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 10 | |
12 months or more, Gross unrealized losses | $ (2) | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | |
Fixed maturity securities | Investment grade | Greater than 50% below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fixed maturity securities | Investment grade | State and Political Subdivisions | 20 To 50 percent below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 10 | |
12 months or more, Gross unrealized losses | $ (2) | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 1.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | |
Fixed maturity securities | Investment grade | State and Political Subdivisions | Greater than 50% below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fixed maturity securities | Below investment grade | 20 To 50 percent below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 6 | |
12 months or more, Gross unrealized losses | $ (2) | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | |
Fixed maturity securities | Below investment grade | Greater than 50% below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fixed maturity securities | Below investment grade | Non-U.S. corporate | 20 To 50 percent below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 6 | |
12 months or more, Gross unrealized losses | $ (2) | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | |
Fixed maturity securities | Below investment grade | Non-U.S. corporate | Greater than 50% below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Equity Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 74 | $ 119 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (9) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 152 | 182 |
12 months or more, Fair value | $ 107 | $ 114 |
12 months or more, Gross unrealized losses | $ (9) | $ (18) |
12 months or more, Number of securities in a continuous loss position | Securities | 51 | 47 |
Fair value | $ 181 | $ 233 |
Gross unrealized losses | $ (13) | $ (27) |
Number of securities in a continuous loss position | Securities | 203 | 229 |
Equity Securities | Less Than 20 Percent Below Cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 72 | $ 118 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 151 | 167 |
12 months or more, Fair value | $ 107 | $ 101 |
12 months or more, Gross unrealized losses | $ (9) | $ (14) |
12 months or more, Number of securities in a continuous loss position | Securities | 51 | 38 |
Fair value | $ 179 | $ 219 |
Gross unrealized losses | $ (12) | $ (22) |
Number of securities in a continuous loss position | Securities | 202 | 205 |
Equity Securities | 20 To 50 percent below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 2 | $ 1 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1 | 15 |
12 months or more, Fair value | $ 0 | $ 13 |
12 months or more, Gross unrealized losses | $ 0 | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 9 |
Fair value | $ 2 | $ 14 |
Gross unrealized losses | $ (1) | $ (5) |
Number of securities in a continuous loss position | Securities | 1 | 24 |
Energy | Fixed maturity securities | U.S. corporate | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 203 | $ 190 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 32 | 30 |
12 months or more, Fair value | $ 153 | $ 276 |
12 months or more, Gross unrealized losses | $ (11) | $ (19) |
12 months or more, Number of securities in a continuous loss position | Securities | 18 | 38 |
Fair value | $ 356 | $ 466 |
Gross unrealized losses | $ (14) | $ (24) |
Number of securities in a continuous loss position | Securities | 50 | 68 |
Energy | Fixed maturity securities | Non-U.S. corporate | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 122 | $ 105 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (3) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 22 | 18 |
12 months or more, Fair value | $ 70 | $ 91 |
12 months or more, Gross unrealized losses | $ (8) | $ (9) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 16 |
Fair value | $ 192 | $ 196 |
Gross unrealized losses | $ (10) | $ (12) |
Number of securities in a continuous loss position | Securities | 35 | 34 |
Energy | Fixed maturity securities | Below investment grade | Non-U.S. corporate | 20 To 50 percent below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 3 | |
12 months or more, Gross unrealized losses | $ (1) | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | |
Energy | Fixed maturity securities | Below investment grade | Non-U.S. corporate | Greater than 50% below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Other | Fixed maturity securities | U.S. corporate | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 32 | $ 29 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 3 | 2 |
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 | $ 32 | $ 29 |
Gross unrealized losses | $ (1) | $ (1) |
Number of securities in a continuous loss position | Securities | 3 | 2 |
Other | Fixed maturity securities | Non-U.S. corporate | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 251 | $ 433 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 43 | 69 |
12 months or more, Fair value | $ 58 | $ 60 |
12 months or more, Gross unrealized losses | $ (2) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 7 | 8 |
Fair value | $ 309 | $ 493 |
Gross unrealized losses | $ (5) | $ (13) |
Number of securities in a continuous loss position | Securities | 50 | 77 |
Other | Fixed maturity securities | Below investment grade | Non-U.S. corporate | 20 To 50 percent below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 3 | |
12 months or more, Gross unrealized losses | $ (1) | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | |
Other | Fixed maturity securities | Below investment grade | Non-U.S. corporate | Greater than 50% below cost | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Percentage of total gross unrealized losses for securities in a continuous loss position | 0.00% | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 |
Gross Unrealized Losses and F44
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Jun. 30, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 7,981 | $ 12,697 |
Less than 12 months, Gross unrealized losses | $ (179) | $ (444) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,279 | 1,872 |
12 months or more, Fair value | $ 1,322 | $ 1,737 |
12 months or more, Gross unrealized losses | $ (74) | $ (134) |
12 months or more, Number of securities in a continuous loss position | Securities | 254 | 322 |
Fair value | $ 9,303 | $ 14,434 |
Gross unrealized losses | $ (253) | $ (578) |
Number of securities in a continuous loss position | Securities | 1,533 | 2,194 |
Fixed maturity securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 7,907 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (175) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,127 | 1,690 |
12 months or more, Fair value | $ 1,215 | $ 1,623 |
12 months or more, Gross unrealized losses | $ (65) | $ (116) |
12 months or more, Number of securities in a continuous loss position | Securities | 203 | 275 |
Fair value | $ 9,122 | $ 14,201 |
Gross unrealized losses | $ (240) | $ (551) |
Number of securities in a continuous loss position | Securities | 1,330 | 1,965 |
Fixed maturity securities | U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 2,954 | $ 5,221 |
Less than 12 months, Gross unrealized losses | $ (70) | $ (190) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 434 | 711 |
12 months or more, Fair value | $ 443 | $ 662 |
12 months or more, Gross unrealized losses | $ (26) | $ (49) |
12 months or more, Number of securities in a continuous loss position | Securities | 57 | 94 |
Fair value | $ 3,397 | $ 5,883 |
Gross unrealized losses | $ (96) | $ (239) |
Number of securities in a continuous loss position | Securities | 491 | 805 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 505 | $ 855 |
Less than 12 months, Gross unrealized losses | $ (16) | $ (39) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 79 | 130 |
12 months or more, Fair value | $ 32 | $ 21 |
12 months or more, Gross unrealized losses | $ (1) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 5 | 5 |
Fair value | $ 537 | $ 876 |
Gross unrealized losses | $ (17) | $ (41) |
Number of securities in a continuous loss position | Securities | 84 | 135 |
Fixed maturity securities | U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 203 | $ 190 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 32 | 30 |
12 months or more, Fair value | $ 153 | $ 276 |
12 months or more, Gross unrealized losses | $ (11) | $ (19) |
12 months or more, Number of securities in a continuous loss position | Securities | 18 | 38 |
Fair value | $ 356 | $ 466 |
Gross unrealized losses | $ (14) | $ (24) |
Number of securities in a continuous loss position | Securities | 50 | 68 |
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 | $ 757 | $ 1,438 |
Less than 12 months, Gross unrealized losses | $ (13) | $ (38) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 109 | 177 |
12 months or more, Fair value | $ 76 | $ 113 |
12 months or more, Gross unrealized losses | $ (1) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 9 | 15 |
Fair value | $ 833 | $ 1,551 |
Gross unrealized losses | $ (14) | $ (46) |
Number of securities in a continuous loss position | Securities | 118 | 192 |
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 | $ 496 | $ 921 |
Less than 12 months, Gross unrealized losses | $ (11) | $ (34) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 72 | 117 |
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 | $ 496 | $ 921 |
Gross unrealized losses | $ (11) | $ (34) |
Number of securities in a continuous loss position | Securities | 72 | 117 |
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 | $ 257 | $ 507 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (22) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 39 | 70 |
12 months or more, Fair value | $ 79 | $ 126 |
12 months or more, Gross unrealized losses | $ (7) | $ (10) |
12 months or more, Number of securities in a continuous loss position | Securities | 11 | 17 |
Fair value | $ 336 | $ 633 |
Gross unrealized losses | $ (14) | $ (32) |
Number of securities in a continuous loss position | Securities | 50 | 87 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 105 | $ 226 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (7) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 15 | 38 |
12 months or more, Fair value | $ 47 | $ 77 |
12 months or more, Gross unrealized losses | $ (3) | $ (7) |
12 months or more, Number of securities in a continuous loss position | Securities | 7 | 10 |
Fair value | $ 152 | $ 303 |
Gross unrealized losses | $ (5) | $ (14) |
Number of securities in a continuous loss position | Securities | 22 | 48 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 207 | $ 322 |
Less than 12 months, Gross unrealized losses | $ (6) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 32 | 50 |
12 months or more, Fair value | $ 0 | $ 6 |
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 | $ 207 | $ 328 |
Gross unrealized losses | $ (6) | $ (13) |
Number of securities in a continuous loss position | Securities | 32 | 51 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 190 | $ 431 |
Less than 12 months, Gross unrealized losses | $ (6) | $ (16) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 26 | 56 |
12 months or more, Fair value | $ 48 | $ 26 |
12 months or more, Gross unrealized losses | $ (2) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 6 |
Fair value | $ 238 | $ 457 |
Gross unrealized losses | $ (8) | $ (17) |
Number of securities in a continuous loss position | Securities | 32 | 62 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 202 | $ 302 |
Less than 12 months, Gross unrealized losses | $ (5) | $ (16) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 27 | 41 |
12 months or more, Fair value | $ 8 | $ 17 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 2 |
Fair value | $ 210 | $ 319 |
Gross unrealized losses | $ (6) | $ (17) |
Number of securities in a continuous loss position | Securities | 28 | 43 |
Fixed maturity securities | U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 32 | $ 29 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 3 | 2 |
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 | $ 32 | $ 29 |
Gross unrealized losses | $ (1) | $ (1) |
Number of securities in a continuous loss position | Securities | 3 | 2 |
Fixed maturity securities | Non-U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,297 | $ 2,257 |
Less than 12 months, Gross unrealized losses | $ (23) | $ (66) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 208 | 330 |
12 months or more, Fair value | $ 281 | $ 408 |
12 months or more, Gross unrealized losses | $ (17) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 37 | 57 |
Fair value | $ 1,578 | $ 2,665 |
Gross unrealized losses | $ (40) | $ (91) |
Number of securities in a continuous loss position | Securities | 245 | 387 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 165 | $ 240 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (10) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 18 | 32 |
12 months or more, Fair value | $ 14 | $ 14 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 1 | 1 |
Fair value | $ 179 | $ 254 |
Gross unrealized losses | $ (4) | $ (11) |
Number of securities in a continuous loss position | Securities | 19 | 33 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 122 | $ 105 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (3) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 22 | 18 |
12 months or more, Fair value | $ 70 | $ 91 |
12 months or more, Gross unrealized losses | $ (8) | $ (9) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 16 |
Fair value | $ 192 | $ 196 |
Gross unrealized losses | $ (10) | $ (12) |
Number of securities in a continuous loss position | Securities | 35 | 34 |
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 | $ 224 | $ 474 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 38 | 79 |
12 months or more, Fair value | $ 31 | $ 71 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 16 |
Fair value | $ 255 | $ 545 |
Gross unrealized losses | $ (4) | $ (9) |
Number of securities in a continuous loss position | Securities | 44 | 95 |
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 | $ 147 | $ 308 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (14) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 19 | 30 |
12 months or more, Fair value | $ 10 | $ 0 |
12 months or more, Gross unrealized losses | $ (1) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 0 |
Fair value | $ 157 | $ 308 |
Gross unrealized losses | $ (4) | $ (14) |
Number of securities in a continuous loss position | Securities | 19 | 30 |
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 | $ 107 | $ 232 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (9) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 20 | 34 |
12 months or more, Fair value | $ 12 | $ 28 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 2 |
Fair value | $ 119 | $ 260 |
Gross unrealized losses | $ (3) | $ (10) |
Number of securities in a continuous loss position | Securities | 22 | 36 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 62 | $ 165 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 9 | 21 |
12 months or more, Fair value | $ 32 | $ 91 |
12 months or more, Gross unrealized losses | $ (1) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 10 |
Fair value | $ 94 | $ 256 |
Gross unrealized losses | $ (3) | $ (9) |
Number of securities in a continuous loss position | Securities | 13 | 31 |
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 | $ 48 | $ 104 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 7 | 14 |
12 months or more, Fair value | $ 29 | $ 28 |
12 months or more, Gross unrealized losses | $ (1) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 2 |
Fair value | $ 77 | $ 132 |
Gross unrealized losses | $ (2) | $ (4) |
Number of securities in a continuous loss position | Securities | 9 | 16 |
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 | $ 78 | $ 90 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 15 | 17 |
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 | $ 78 | $ 90 |
Gross unrealized losses | $ (1) | $ (2) |
Number of securities in a continuous loss position | Securities | 15 | 17 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 93 | $ 106 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 17 | 16 |
12 months or more, Fair value | $ 25 | $ 25 |
12 months or more, Gross unrealized losses | $ (1) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 2 |
Fair value | $ 118 | $ 131 |
Gross unrealized losses | $ (4) | $ (7) |
Number of securities in a continuous loss position | Securities | 19 | 18 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 251 | $ 433 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 43 | 69 |
12 months or more, Fair value | $ 58 | $ 60 |
12 months or more, Gross unrealized losses | $ (2) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 7 | 8 |
Fair value | $ 309 | $ 493 |
Gross unrealized losses | $ (5) | $ (13) |
Number of securities in a continuous loss position | Securities | 50 | 77 |
Fixed maturity securities | Corporate Debt Securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 4,251 | $ 7,478 |
Less than 12 months, Gross unrealized losses | $ (93) | $ (256) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 642 | 1,041 |
12 months or more, Fair value | $ 724 | $ 1,070 |
12 months or more, Gross unrealized losses | $ (43) | $ (74) |
12 months or more, Number of securities in a continuous loss position | Securities | 94 | 151 |
Fair value | $ 4,975 | $ 8,548 |
Gross unrealized losses | $ (136) | $ (330) |
Number of securities in a continuous loss position | Securities | 736 | 1,192 |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized cost or cost | ||
Due one year or less | $ 1,883 | |
Due after one year through five years | 10,533 | |
Due after five years through ten years | 12,183 | |
Due after ten years | 22,086 | |
Subtotal | 46,685 | |
Amortized cost or cost, fixed maturity securities | 57,240 | $ 57,014 |
Fair value | ||
Due one year or less | 1,906 | |
Due after one year through five years | 10,967 | |
Due after five years through ten years | 12,722 | |
Due after ten years | 25,432 | |
Subtotal | 51,027 | |
Fair value, fixed maturity securities | 61,944 | $ 60,572 |
Residential mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 4,045 | |
Fair value | ||
Fixed maturity securities | 4,319 | |
Commercial mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,330 | |
Fair value | ||
Fixed maturity securities | 3,406 | |
Other asset-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,180 | |
Fair value | ||
Fixed maturity securities | $ 3,192 |
Distribution Across Property Ty
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,250 | $ 6,125 |
Unamortized balance of loan origination fees and costs | $ (3) | $ (2) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (10) | $ (12) |
Total | 6,237 | 6,111 |
Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 6,250 | 6,125 |
Unamortized balance of loan origination fees and costs | $ (3) | $ (2) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (10) | $ (12) |
Total | 6,237 | 6,111 |
Pacific | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,603 | $ 1,567 |
% of total | 26.00% | 27.00% |
South Atlantic | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,608 | $ 1,546 |
% of total | 26.00% | 25.00% |
Middle Atlantic | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 908 | $ 915 |
% of total | 14.00% | 15.00% |
Mountain | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 547 | $ 554 |
% of total | 9.00% | 9.00% |
West North Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 442 | $ 435 |
% of total | 7.00% | 7.00% |
East North Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 383 | $ 388 |
% of total | 6.00% | 6.00% |
West South Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 318 | $ 311 |
% of total | 5.00% | 5.00% |
New England | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 233 | $ 206 |
% of total | 4.00% | 3.00% |
East South Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 208 | $ 203 |
% of total | 3.00% | 3.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,199 | $ 2,178 |
% of total | 35.00% | 36.00% |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,590 | $ 1,533 |
% of total | 25.00% | 25.00% |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,430 |
% of total | 24.00% | 23.00% |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 470 | $ 455 |
% of total | 8.00% | 7.00% |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 234 | $ 245 |
% of total | 4.00% | 4.00% |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 277 | $ 284 |
% of total | 4.00% | 5.00% |
Aging of Past Due Commercial Mo
Aging of Past Due Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,250 | $ 6,125 |
% of total | 100.00% | 100.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,199 | $ 2,178 |
% of total | 35.00% | 36.00% |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,590 | $ 1,533 |
% of total | 25.00% | 25.00% |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,430 |
% of total | 24.00% | 23.00% |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 470 | $ 455 |
% of total | 8.00% | 7.00% |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 234 | $ 245 |
% of total | 4.00% | 4.00% |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 277 | $ 284 |
% of total | 4.00% | 5.00% |
31-60 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 1 |
% of total | 0.00% | 0.00% |
31-60 days past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
31-60 days past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 1 |
31-60 days past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
% of total | 0.00% | 0.00% |
61-90 days past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
61-90 days past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 12 |
% of total | 0.00% | 0.00% |
Greater than 90 days past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
Greater than 90 days past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 12 |
Greater than 90 days past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 13 |
% of total | 0.00% | 0.00% |
Total past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
Total past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 13 |
Total past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Total past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Current | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,250 | $ 6,112 |
% of total | 100.00% | 100.00% |
Current | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,199 | $ 2,178 |
Current | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,590 | 1,520 |
Current | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,480 | 1,430 |
Current | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 470 | 455 |
Current | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 234 | 245 |
Current | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 277 | $ 284 |
Allowance for Credit Losses and
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | $ 12 | ||||
Ending balance | $ 10 | 10 | |||
Ending balance | 6,250 | 6,250 | $ 6,125 | ||
Allowance for Credit Losses | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 11 | $ 15 | 12 | $ 15 | |
Charge-offs | 0 | (4) | 0 | (4) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (1) | 2 | (2) | 2 | |
Ending balance | 10 | 13 | 10 | 13 | |
Ending allowance for individually impaired loans | 0 | 0 | 0 | 0 | |
Ending allowance for loans not individually impaired that were evaluated collectively for impairment | 10 | 13 | 10 | 13 | |
Commercial Mortgage Loans Recorded Investment | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending balance | 6,250 | 6,136 | 6,250 | 6,136 | |
Ending balance of individually impaired loans | 0 | 23 | 0 | 23 | |
Ending balance of loans not individually impaired that were evaluated collectively for impairment | $ 6,250 | $ 6,113 | $ 6,250 | $ 6,113 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 6,250 | $ 6,125 | |
% of total | 100.00% | 100.00% | |
Weighted-average debt service coverage ratio | 1.87 | 1.87 | |
Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 2,199 | $ 2,178 | |
% of total | 35.00% | 36.00% | |
Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 1,590 | $ 1,533 | |
% of total | 25.00% | 25.00% | |
Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,430 | |
% of total | 24.00% | 23.00% | |
Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 470 | $ 455 | |
% of total | 8.00% | 7.00% | |
Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 234 | $ 245 | |
% of total | 4.00% | 4.00% | |
Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 277 | $ 284 | |
% of total | 4.00% | 5.00% | |
Greater than 100% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 0 | $ 7 | [1] |
% of total | 0.00% | 0.00% | [1] |
Weighted-average debt service coverage ratio | 0 | (0.07) | [1] |
Greater than 100% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 | [1] |
Greater than 100% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 0 | [1] |
Greater than 100% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 7 | [1] |
Greater than 100% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 0 | [1] |
Greater than 100% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 0 | [1] |
Greater than 100% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 0 | [1] |
0% - 50% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 2,084 | $ 2,094 | |
% of total | 33.00% | 34.00% | |
Weighted-average debt service coverage ratio | 2.19 | 2.20 | |
0% - 50% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 762 | $ 743 | |
0% - 50% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 600 | 605 | |
0% - 50% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 421 | 431 | |
0% - 50% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 187 | 188 | |
0% - 50% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 62 | 67 | |
0% - 50% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 52 | 60 | |
51% - 60% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 1,441 | $ 1,457 | |
% of total | 23.00% | 24.00% | |
Weighted-average debt service coverage ratio | 1.89 | 1.88 | |
51% - 60% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 487 | $ 511 | |
51% - 60% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 418 | 430 | |
51% - 60% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 325 | 310 | |
51% - 60% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 90 | 89 | |
51% - 60% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 88 | 87 | |
51% - 60% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 33 | 30 | |
61% - 75% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 2,679 | $ 2,511 | |
% of total | 43.00% | 41.00% | |
Weighted-average debt service coverage ratio | 1.62 | 1.61 | |
61% - 75% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 939 | $ 913 | |
61% - 75% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 570 | 484 | |
61% - 75% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 706 | 656 | |
61% - 75% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 188 | 173 | |
61% - 75% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 84 | 91 | |
61% - 75% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 192 | 194 | |
76% - 100% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 46 | $ 56 | |
% of total | 1.00% | 1.00% | |
Weighted-average debt service coverage ratio | 0.89 | 0.80 | |
76% - 100% | Retail | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 11 | $ 11 | |
76% - 100% | Industrial | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 2 | 14 | |
76% - 100% | Office | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 28 | 26 | |
76% - 100% | Apartments | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 5 | 5 | |
76% - 100% | Mixed Use | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 0 | |
76% - 100% | Other | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 | |
[1] | Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Loan-to-Value of Commercial M50
Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2017 | ||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 6,125 | $ 6,250 | |
Greater than 100% | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | 7 | [1] | $ 0 |
Greater than 100% | Loans in Good Standing | |||
Mortgage Loans on Real Estate [Line Items] | |||
Commercial mortgage loans, recorded investment | $ 7 | ||
Weighted-average loan-to-value | 105.00% | ||
[1] | Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Debt Service Coverage Ratio for
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,250 | $ 6,125 |
% of total | 100.00% | 100.00% |
Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,250 | $ 6,125 |
% of total | 100.00% | 100.00% |
Weighted-average loan-to-value | 55.00% | 55.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,199 | $ 2,178 |
% of total | 35.00% | 36.00% |
Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,199 | $ 2,178 |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,590 | $ 1,533 |
% of total | 25.00% | 25.00% |
Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,590 | $ 1,533 |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,430 |
% of total | 24.00% | 23.00% |
Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,480 | $ 1,430 |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 470 | $ 455 |
% of total | 8.00% | 7.00% |
Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 470 | $ 455 |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 234 | $ 245 |
% of total | 4.00% | 4.00% |
Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 234 | $ 245 |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 277 | $ 284 |
% of total | 4.00% | 5.00% |
Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 277 | $ 284 |
Less than 1.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 216 | $ 251 |
% of total | 3.00% | 4.00% |
Weighted-average loan-to-value | 58.00% | 61.00% |
Less than 1.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 63 | $ 67 |
Less than 1.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 50 | 71 |
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 82 | 91 |
Less than 1.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 18 | 19 |
Less than 1.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 2 | 2 |
Less than 1.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1 | 1 |
1.00 - 1.25 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 582 | $ 613 |
% of total | 9.00% | 10.00% |
Weighted-average loan-to-value | 59.00% | 60.00% |
1.00 - 1.25 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 197 | $ 204 |
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 106 | 113 |
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 111 | 117 |
1.00 - 1.25 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 20 | 22 |
1.00 - 1.25 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 5 | 9 |
1.00 - 1.25 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 143 | 148 |
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 985 | $ 956 |
% of total | 16.00% | 16.00% |
Weighted-average loan-to-value | 60.00% | 59.00% |
1.26 - 1.50 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 450 | $ 425 |
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 236 | 236 |
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 173 | 172 |
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 48 | 44 |
1.26 - 1.50 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 19 | 19 |
1.26 - 1.50 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 59 | 60 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,694 | $ 2,507 |
% of total | 44.00% | 41.00% |
Weighted-average loan-to-value | 59.00% | 58.00% |
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 922 | $ 899 |
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 708 | 599 |
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 646 | 609 |
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 233 | 217 |
1.51 - 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 125 | 128 |
1.51 - 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 60 | 55 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,773 | $ 1,798 |
% of total | 28.00% | 29.00% |
Weighted-average loan-to-value | 46.00% | 45.00% |
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 567 | $ 583 |
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 490 | 514 |
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 468 | 441 |
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 151 | 153 |
Greater than 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 83 | 87 |
Greater than 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 14 | $ 20 |
Schedule of Positions in Deriva
Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Derivative assets, fair value | $ 758 | $ 724 | |
Derivative liabilities, fair value | 1,037 | 1,041 | |
Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 367 | 383 | |
Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 670 | 658 | |
Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 743 | 708 | |
Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 332 | 349 | |
Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 590 | 596 | |
Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 2 | 5 | |
Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 5 | 4 | |
Credit default swaps related to securitization entities | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 1 | ||
Equity index options | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 81 | 72 | |
Equity return swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 7 | 1 | |
Equity return swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 2 | 1 | |
Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 26 | 27 | |
Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 65 | 35 | |
GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [1] | 281 | 303 |
GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [2] | 15 | 16 |
Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 376 | 344 | |
Indexed universal life embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 13 | 11 | |
Designated As Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 245 | 241 | |
Derivative liabilities, fair value | 182 | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 245 | 241 | |
Derivative liabilities, fair value | 182 | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 182 | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 243 | 237 | |
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 | 2 | 4 | |
Derivatives not designated as hedges | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 513 | 483 | |
Derivative liabilities, fair value | 855 | 838 | |
Derivatives not designated as hedges | Interest rate swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 150 | 146 | |
Derivatives not designated as hedges | Interest rate swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 347 | 359 | |
Derivatives not designated as hedges | Foreign currency swaps | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 2 | 5 | |
Derivatives not designated as hedges | Foreign currency swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 3 | 0 | |
Derivatives not designated as hedges | Credit default swaps related to securitization entities | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 0 | 1 | |
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 | 81 | 72 | |
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 | 7 | 1 | |
Derivatives not designated as hedges | Equity return swaps | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 2 | 1 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | 26 | 27 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | |||
Derivative [Line Items] | |||
Derivative assets, fair value | 65 | 35 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [3] | 281 | 303 |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | |||
Derivative [Line Items] | |||
Derivative assets, fair value | [4] | 15 | 16 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | |||
Derivative [Line Items] | |||
Derivative liabilities, fair value | [5] | 376 | 344 |
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 | [6] | 13 | 11 |
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 our GMWB liabilities, excluding the impact of reinsurance. | ||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. | ||
[3] | Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | ||
[4] | Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits ("GMWB") liabilities. | ||
[5] | Represents the embedded derivatives associated with our fixed index annuity liabilities. | ||
[6] | Represents the embedded derivatives associated with our indexed universal life liabilities. |
Activity Associated with Deriva
Activity Associated with Derivative Instruments (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($)Policies | |
Derivative [Line Items] | |
Notional amount, beginning balance | $ 23,912 |
Additions | 5,800 |
Maturities/ terminations | (4,722) |
Notional amount, ending balance | 24,990 |
Designated As Hedging Instrument | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,592 |
Additions | 0 |
Maturities/ terminations | (215) |
Notional amount, ending balance | 11,377 |
Designated As Hedging Instrument | Cash Flow Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,592 |
Additions | 0 |
Maturities/ terminations | (215) |
Notional amount, ending balance | 11,377 |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,570 |
Additions | 0 |
Maturities/ terminations | (215) |
Notional amount, ending balance | 11,355 |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 22 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 22 |
Derivatives not designated as hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 12,320 |
Additions | 5,800 |
Maturities/ terminations | (4,507) |
Notional amount, ending balance | 13,613 |
Derivatives not designated as hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 4,679 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 4,679 |
Derivatives not designated as hedges | Foreign currency swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 201 |
Additions | 73 |
Maturities/ terminations | (4) |
Notional amount, ending balance | 270 |
Derivatives not designated as hedges | Credit default swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 39 |
Additions | 0 |
Maturities/ terminations | 0 |
Notional amount, ending balance | 39 |
Derivatives not designated as hedges | Credit default swaps related to securitization entities | |
Derivative [Line Items] | |
Notional amount, beginning balance | 312 |
Additions | 0 |
Maturities/ terminations | (100) |
Notional amount, ending balance | 212 |
Derivatives not designated as hedges | Equity index options | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,396 |
Additions | 951 |
Maturities/ terminations | (837) |
Notional amount, ending balance | 2,510 |
Derivatives not designated as hedges | Financial futures | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,398 |
Additions | 2,908 |
Maturities/ terminations | (2,960) |
Notional amount, ending balance | 1,346 |
Derivatives not designated as hedges | Equity return swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 165 |
Additions | 108 |
Maturities/ terminations | (153) |
Notional amount, ending balance | 120 |
Derivatives not designated as hedges | Other foreign currency contracts | |
Derivative [Line Items] | |
Notional amount, beginning balance | 3,130 |
Additions | 1,760 |
Maturities/ terminations | (453) |
Notional amount, ending balance | $ 4,437 |
Derivatives not designated as hedges | GMWB embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 33,238 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (1,498) |
Notional amount, ending balance | Policies | 31,740 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 17,549 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (248) |
Notional amount, ending balance | Policies | 17,301 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 1,074 |
Additions | Policies | 1 |
Maturities/ terminations | Policies | (40) |
Notional amount, ending balance | Policies | 1,035 |
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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | $ 75 | $ 246 | $ 30 | $ 668 | |
Gain (loss) reclassified into net income from OCI | 32 | 35 | 63 | 63 | |
Gain (loss) recognized in net income | [1] | 0 | 5 | 0 | 11 |
Interest Rate Swaps Hedging Assets | Net Investment (Gains) Losses | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 0 | 0 | 0 | ||
Gain (loss) reclassified into net income from OCI | 1 | 2 | 1 | ||
Gain (loss) recognized in net income | [1] | 0 | 5 | 0 | 11 |
Interest Rate Swaps Hedging Assets | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 82 | 267 | 33 | 724 | |
Gain (loss) reclassified into net income from OCI | 31 | 28 | 61 | 53 | |
Interest Rate Swaps Hedging Liabilities | Net Investment (Gains) Losses | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income | [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 | (6) | (19) | (2) | (50) | |
Gain (loss) reclassified into net income from OCI | 0 | 0 | 0 | 0 | |
Foreign currency swaps | Net Investment (Gains) Losses | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income | [1] | 0 | 0 | 0 | |
Foreign currency swaps | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | (1) | (1) | (1) | ||
Gain (loss) reclassified into net income from OCI | $ 0 | $ 0 | 0 | ||
Inflation indexed swaps | Net Investment (Gains) Losses | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 0 | 0 | |||
Gain (loss) reclassified into net income from OCI | 7 | 7 | |||
Gain (loss) recognized in net income | [1] | 0 | 0 | ||
Inflation indexed swaps | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | (2) | (5) | |||
Gain (loss) reclassified into net income from OCI | $ 0 | $ 2 | |||
[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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Derivative Instruments [Abstract] | |||||
Derivatives qualifying as effective accounting hedges, beginning of period | [1] | $ 2,036 | $ 2,302 | $ 2,085 | $ 2,045 |
Current period increases (decreases) in fair value, net of deferred taxes | [1] | 48 | 160 | 19 | 435 |
Reclassification to net (income), net of deferred taxes | [1] | (20) | (23) | (40) | (41) |
Derivatives qualifying as effective accounting hedges, end of period | [1] | $ 2,064 | $ 2,439 | $ 2,064 | $ 2,439 |
[1] | See note 5 for additional information. |
Reconciliation of Current Per56
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Current period increases (decreases) in fair value, deferred taxes | $ (27) | $ (86) | $ (11) | $ (233) |
Reclassification to net (income), deferred taxes | $ 12 | $ 12 | $ 23 | $ 22 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |||
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] | $ 2,064 | $ 2,036 | $ 2,085 | $ 2,439 | $ 2,302 | $ 2,045 | |
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur | 2,057 | |||||||
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 | $ 91 | |||||||
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring | 1 | |||||||
Derivative assets | Subject to enforceable master netting arrangement | ||||||||
Derivative [Line Items] | ||||||||
Amount to claim from counterparties if the downgrade provisions had been triggered | 87 | [2] | 86 | |||||
Derivative liabilities | Subject to enforceable master netting arrangement | ||||||||
Derivative [Line Items] | ||||||||
Amounts required for disbursement to counterparties if the downgrade provisions had been triggered | $ 2 | [3] | $ 2 | |||||
[1] | See note 5 for additional information. | |||||||
[2] | Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. | |||||||
[3] | Included $6 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of June 30, 2017 and December 31, 2016, respectively. |
Schedule of Pre-Tax Gain (Loss)
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives not Designated as Hedges (Detail) - Derivatives not designated as hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 37 | $ (36) | $ 41 | $ (77) |
Interest rate swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (1) | (7) | 1 | 8 |
Interest rate swaps related to securitization entities | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 0 | (5) | 0 | (10) |
Credit default swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 0 | 1 | ||
Credit default swaps related to securitization entities | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 2 | 5 | 4 | 14 |
Equity index options | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 13 | (1) | 26 | (4) |
Financial futures | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 9 | 19 | (8) | 26 |
Equity return swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (6) | 5 | (14) | 7 |
Other foreign currency contracts | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 31 | (2) | 26 | (4) |
Foreign currency swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 2 | (3) | 5 | 7 |
GMWB embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 1 | (40) | 34 | (118) |
Fixed index annuity embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (16) | (9) | (36) | (6) |
Indexed universal life embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 2 | $ 1 | $ 3 | $ 3 |
Additional Information about De
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | ||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives assets | $ 758 | $ 724 | ||
Gross amounts recognized, derivatives liabilities | 1,037 | 1,041 | ||
Subject to enforceable master netting arrangement | ||||
Derivative [Line Items] | ||||
Collateral received | (425) | (467) | ||
Over collateralization, derivatives assets | (247) | (343) | ||
Gross amounts recognized, net derivatives | 384 | 337 | ||
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | ||
Net amounts presented in the balance sheet, net derivatives | 384 | 337 | ||
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [1] | 0 | 0 | |
Collateral pledged | 373 | 557 | ||
Net amount | 85 | 84 | ||
Subject to enforceable master netting arrangement | Derivative assets | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives assets | 757 | [2] | 724 | |
Gross amounts offset in the balance sheet, derivatives assets | 0 | [2] | 0 | |
Net amounts presented in the balance sheet, derivatives assets | 757 | [2] | 724 | |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [1] | (253) | [2] | (172) |
Collateral received | (425) | [2] | (467) | |
Over collateralization, derivatives assets | 8 | [2] | 1 | |
Net amount, derivatives assets | 87 | [2] | 86 | |
Subject to enforceable master netting arrangement | Derivative liabilities | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives liabilities | 373 | [3] | 387 | |
Gross amounts offset in the balance sheet, derivatives liabilities | 0 | [3] | 0 | |
Net amounts presented in the balance sheet, derivatives liabilities | 373 | [3] | 387 | |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [1] | (253) | [3] | (172) |
Collateral pledged | (373) | [3] | (557) | |
Over collateralization, derivatives liabilities | 255 | [3] | 344 | |
Net amount, derivatives liabilities | $ 2 | [3] | $ 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] | Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. | |||
[3] | Included $6 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of June 30, 2017 and December 31, 2016, respectively. |
Additional Information about 60
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Subject to enforceable master netting arrangement - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | $ 373 | [1] | $ 387 |
Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | 757 | [2] | 724 |
Other assets | Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | 14 | 16 | |
Other liabilities | Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | $ 6 | $ 5 | |
[1] | Included $6 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of June 30, 2017 and December 31, 2016, respectively. | ||
[2] | Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. |
Derivative Instruments Schedule
Derivative Instruments Schedule of Credit Default Swaps where we Sell Protection on Single Name Reference Entities and Fair Values (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional value | $ 24,990 | $ 23,912 |
Credit default swaps | Single Name Reference Entities | ||
Derivative [Line Items] | ||
Notional value | 39 | 39 |
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Credit default swaps | Single Name Reference Entities | Investment grade | Matures in less than one year | ||
Derivative [Line Items] | ||
Notional value | 19 | 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 | 20 | 39 |
Assets | 0 | 0 |
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 | Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Notional value | $ 24,990 | $ 23,912 | |
Credit default swaps | Securitization Entities | Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 212 | 312 | |
Assets | 0 | 0 | |
Liabilities | 0 | 1 | |
Credit default swaps | Securitization Entities | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [1] | 12 | 12 |
Assets | [1] | 0 | 0 |
Liabilities | [1] | 0 | 0 |
Credit default swaps | Securitization Entities | Index Tranches | Portion Backing Interest Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [2] | 200 | 300 |
Assets | [2] | 0 | 0 |
Liabilities | [2] | 1 | |
Total Credit Default Swaps on Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 212 | 312 | |
Assets | 0 | 0 | |
Liabilities | $ 0 | $ 1 | |
[1] | Original notional value was $39 million. | ||
[2] | Original notional value was $300 million. |
Schedule of Credit Default Sw63
Schedule of Credit Default Swaps where we Sell Protection on Credit Default Swap Index Tranches and Fair Values (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Notional value | $ 24,990 | $ 23,912 | |
Securitization Entities | Credit default swaps | Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 212 | 312 | |
Securitization Entities | Credit default swaps | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [1] | 12 | 12 |
Securitization Entities | Credit default swaps | Index Tranches | Portion Backing Interest Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [2] | 200 | $ 300 |
Securitization Entities | Credit default swaps | Original Amount | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | 39 | ||
Securitization Entities | Credit default swaps | Original Amount | Index Tranches | Portion Backing Interest Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | $ 300 | ||
[1] | Original notional value was $39 million. | ||
[2] | 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 | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 6,237 | $ 6,111 | |
Restricted commercial mortgage loans | 118 | 129 | |
Other invested assets | 2,177 | 2,071 | |
Long-term borrowings | 4,205 | 4,180 | |
Non-recourse funding obligations | 310 | 310 | |
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 | 946 | 352 | |
Long-term borrowings | 3,471 | 3,440 | |
Non-recourse funding obligations | 0 | 0 | |
Borrowings related to securitization entities | 53 | 65 | |
Investment contracts | 5 | 5 | |
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 | 6,533 | 6,247 | |
Restricted commercial mortgage loans | 130 | 141 | |
Other invested assets | 177 | 121 | |
Long-term borrowings | 155 | 142 | |
Non-recourse funding obligations | 195 | 186 | |
Borrowings related to securitization entities | 0 | 0 | |
Investment contracts | 16,207 | 16,988 | |
Commitments to fund limited partnerships | 0 | 0 | |
Ordinary course of business lending commitments | 0 | 0 | |
Carrying value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | 6,237 | 6,111 | |
Restricted commercial mortgage loans | 118 | 129 | |
Other invested assets | 1,101 | 459 | |
Long-term borrowings | 4,205 | 4,180 | |
Non-recourse funding obligations | 310 | 310 | |
Borrowings related to securitization entities | 51 | 62 | |
Investment contracts | 15,667 | 16,437 | |
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 | 6,533 | 6,247 | |
Restricted commercial mortgage loans | 130 | 141 | |
Other invested assets | 1,123 | 473 | |
Long-term borrowings | 3,626 | 3,582 | |
Non-recourse funding obligations | 195 | 186 | |
Borrowings related to securitization entities | 53 | 65 | |
Investment contracts | 16,212 | 16,993 | |
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 | 268 | 201 | |
Ordinary course of business lending commitments | $ 59 | $ 73 | |
[1] | These financial instruments do not have notional amounts. |
Fair Value of Financial Instr65
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 61,944 | $ 60,572 |
GMWB non-performance risk impact | $ 69 | $ 73 |
Period end valuation | 0 | 0 |
Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,091 | $ 2,107 |
Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 28,071 | 26,828 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,806 | 2,647 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 12,430 | 12,295 |
Level 2 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 57,627 | 56,271 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,091 | 2,107 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 25,511 | 24,341 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,769 | 2,610 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 10,986 | 10,762 |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 16 | |
Level 2 | Fixed maturity securities | Internal models | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 789 | |
Level 2 | Fixed maturity securities | Internal models | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 8 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 417 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | ||
Fair Value of Financial Instruments [Line Items] | ||
Percentage of available for sale debt securities | 91.00% | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,075 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 24,722 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,761 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 10,569 | |
Level 3 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 4,317 | 4,301 |
Level 3 | Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 0 | 0 |
Level 3 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,560 | 2,487 |
Level 3 | Fixed maturity securities | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 37 | 37 |
Level 3 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,444 | $ 1,533 |
Level 3 | Fixed maturity securities | Internal models | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,671 | |
Level 3 | Fixed maturity securities | Broker Quotes | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 646 |
Summary of Significant Inputs U
Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2 (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 61,944 | $ 60,572 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 5,629 | 6,036 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,806 | 2,647 |
Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,091 | 2,107 |
Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 28,071 | 26,828 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 12,430 | 12,295 |
Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,319 | 4,379 |
Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,406 | 3,129 |
Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,192 | 3,151 |
Level 2 | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 57,627 | 56,271 |
Level 2 | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 5,628 | 6,034 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,769 | 2,610 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,091 | 2,107 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 25,511 | 24,341 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 10,986 | 10,762 |
Level 2 | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,246 | 4,336 |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,354 | 3,075 |
Level 2 | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,042 | $ 3,006 |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 5,628 | |
Primary methodologies | Price quotes from trading desk, broker feeds | |
Significant inputs | Bid side prices, trade prices, Option Adjusted Spread ("OAS") to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 2,761 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, third-party pricing vendors | |
Significant inputs | Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 2,075 | |
Primary methodologies | Matrix pricing, spread priced to benchmark curves, price quotes from market makers | |
Significant inputs | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 24,722 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models | |
Significant inputs | Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine ("TRACE") reports | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 10,569 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers | |
Significant inputs | Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 4,246 | |
Primary methodologies | OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced | |
Significant inputs | Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 3,354 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model | |
Significant inputs | Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 3,042 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models | |
Significant inputs | Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports |
Assets by Class of Instrument t
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | $ 61,944 | $ 60,572 | |
Available-for-sale equity securities | 855 | 632 | |
Derivative assets, fair value | 758 | 724 | |
Total other invested assets | 2,177 | 2,071 | |
Restricted other invested assets related to securitization entities | 81 | 312 | |
Separate account assets | 7,269 | 7,299 | |
Total assets | 71,133 | 70,332 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 259 | ||
Derivative assets, fair value | 743 | 708 | |
Securities lending collateral | 226 | 534 | |
Interest rate swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 590 | 596 | |
Foreign currency swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 5 | 4 | |
Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 81 | 72 | |
Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 2 | 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 | 65 | 35 | |
GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 15 | 16 |
Fair value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 1,123 | 473 | |
Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 969 | 1,501 | |
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 | 5,629 | 6,036 | |
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 | 2,806 | 2,647 | |
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 | 2,091 | 2,107 | |
Fixed maturity securities | U.S. corporate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 28,071 | 26,828 | |
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 | 4,848 | 4,550 | |
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 | 2,370 | 2,300 | |
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 | 6,590 | 6,097 | |
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 | 4,782 | 4,734 | |
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 | 2,675 | 2,598 | |
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 | 1,344 | 1,223 | |
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 | 2,287 | 2,258 | |
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 | 1,599 | 1,530 | |
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 | 1,179 | 1,190 | |
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 | 397 | 348 | |
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 | 12,430 | 12,295 | |
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 | 1,053 | 969 | |
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 | 1,434 | 1,331 | |
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 | 2,590 | 2,538 | |
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 | 746 | 714 | |
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 | 1,043 | 987 | |
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 | 1,015 | 958 | |
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 | 574 | 535 | |
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 | 494 | 442 | |
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 | 704 | 677 | |
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 | 2,777 | 3,144 | |
Fixed maturity securities | Residential mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,319 | 4,379 | |
Fixed maturity securities | Commercial mortgage-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,406 | 3,129 | |
Fixed maturity securities | Other asset-backed | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 3,192 | 3,151 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 0 | 0 | |
Available-for-sale equity securities | 734 | 551 | |
Total other invested assets | 0 | 0 | |
Restricted other invested assets related to securitization entities | 0 | 0 | |
Separate account assets | 7,269 | 7,299 | |
Total assets | 8,003 | 7,850 | |
Level 1 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | ||
Derivative assets, fair value | 0 | 0 | |
Securities lending collateral | 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 | 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 | Equity return 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 | 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 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 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 | 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 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 57,627 | 56,271 | |
Available-for-sale equity securities | 73 | 34 | |
Total other invested assets | 946 | 352 | |
Restricted other invested assets related to securitization entities | 81 | 181 | |
Separate account assets | 0 | 0 | |
Total assets | 58,669 | 57,912 | |
Level 2 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 259 | ||
Derivative assets, fair value | 662 | 633 | |
Securities lending collateral | 226 | 534 | |
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 | 590 | 596 | |
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 | 5 | 4 | |
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 | Equity return swaps | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 2 | 1 | |
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 | 65 | 32 | |
Level 2 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 0 | 0 |
Level 2 | Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 888 | 1,426 | |
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 | 5,628 | 6,034 | |
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 | 2,769 | 2,610 | |
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 | 2,091 | 2,107 | |
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 | 25,511 | 24,341 | |
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 | 4,210 | 3,974 | |
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 | 2,210 | 2,090 | |
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 | 5,729 | 5,311 | |
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 | 4,660 | 4,613 | |
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 | 2,617 | 2,544 | |
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 | 1,283 | 1,175 | |
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 | 2,169 | 2,106 | |
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 | 1,333 | 1,272 | |
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 | 1,079 | 1,051 | |
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 | 221 | 205 | |
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 | 10,986 | 10,762 | |
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 | 694 | 583 | |
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 | 1,257 | 1,125 | |
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 | 2,418 | 2,356 | |
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 | 617 | 575 | |
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 | 995 | 920 | |
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 | 903 | 849 | |
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 | 425 | 366 | |
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 | 427 | 373 | |
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 | 514 | 496 | |
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 | 2,736 | 3,119 | |
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 | 4,246 | 4,336 | |
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 | 3,354 | 3,075 | |
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 | 3,042 | 3,006 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale debt securities | 4,317 | 4,301 | |
Available-for-sale equity securities | 48 | 47 | |
Total other invested assets | 177 | 121 | |
Restricted other invested assets related to securitization entities | 0 | 131 | |
Separate account assets | 0 | 0 | |
Total assets | 4,461 | 4,570 | |
Level 3 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities | 0 | ||
Derivative assets, fair value | 81 | 75 | |
Securities lending collateral | 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 | Equity index options | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | 81 | 72 | |
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 | 0 | |
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 | 3 | |
Level 3 | GMWB embedded derivatives | Reinsurance recoverable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets, fair value | [1] | 15 | 16 |
Level 3 | Fair value | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other invested assets | 81 | 75 | |
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 | 1 | 2 | |
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 | 37 | 37 | |
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 | 0 | |
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 | 2,560 | 2,487 | |
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 | 638 | 576 | |
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 | 160 | 210 | |
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 | 861 | 786 | |
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 | 122 | 121 | |
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 | 58 | 54 | |
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 | 61 | 48 | |
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 | 118 | 152 | |
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 | 266 | 258 | |
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 | 100 | 139 | |
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 | 176 | 143 | |
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 | 1,444 | 1,533 | |
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 | 359 | 386 | |
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 | 177 | 206 | |
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 | 172 | 182 | |
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 | 129 | 139 | |
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 | 48 | 67 | |
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 | 112 | 109 | |
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 | 149 | 169 | |
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 | 67 | 69 | |
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 | 190 | 181 | |
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 | 41 | 25 | |
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 | 73 | 43 | |
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 | 52 | 54 | |
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 | $ 150 | $ 145 | |
[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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 4,400 | $ 5,527 | $ 4,570 | $ 5,501 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 9 | (73) | 26 | (44) | |
Total realized and unrealized gains (losses), Included in OCI | 102 | 130 | 147 | 180 | |
Purchases | 124 | 169 | 280 | 278 | |
Sales | (51) | (60) | (203) | (60) | |
Issuances | 0 | 0 | 1 | 1 | |
Settlements | (58) | (85) | (169) | (211) | |
Transfer into Level 3 | [1] | 104 | 140 | 119 | 266 |
Transfer out of Level 3 | [1] | (169) | (1,097) | (310) | (1,260) |
Ending balance | 4,461 | 4,651 | 4,461 | 4,651 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 6 | (6) | 7 | 13 | |
Other invested assets | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 78 | 38 | 75 | 34 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 12 | (2) | 23 | (6) | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 9 | 24 | 21 | 37 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (18) | (2) | (38) | (7) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 81 | 58 | 81 | 58 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 3 | (3) | (6) | |
Other invested assets | Derivative assets | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 78 | 38 | 75 | 34 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 12 | (2) | 23 | (6) | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 9 | 24 | 21 | 37 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (18) | (2) | (38) | (7) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 81 | 58 | 81 | 58 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 3 | (3) | (6) | |
Other invested assets | Derivative assets | Credit default swaps | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 1 | 1 | |||
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 | (1) | (1) | |||
Transfer into Level 3 | [1] | 0 | 0 | ||
Transfer out of Level 3 | [1] | 0 | 0 | ||
Ending balance | 0 | 0 | |||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | |||
Other invested assets | Derivative assets | Equity index options | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 77 | 36 | 72 | 30 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 13 | (2) | 26 | (4) | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 9 | 23 | 21 | 36 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (18) | 0 | (38) | (5) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 81 | 57 | 81 | 57 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 3 | 0 | (4) | |
Other invested assets | Derivative assets | Other foreign currency contracts | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 1 | 1 | 3 | 3 | |
Total realized and unrealized gains (losses), Included in net income (loss) | (1) | 0 | (3) | (2) | |
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 | (1) | 0 | (1) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 0 | 1 | 0 | 1 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | (3) | (2) | |
Restricted other invested assets related to securitization entities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 241 | 131 | 232 | ||
Total realized and unrealized gains (losses), Included in net income (loss) | (64) | 0 | (55) | ||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||
Purchases | 0 | 0 | 0 | ||
Sales | 0 | (131) | 0 | ||
Issuances | 0 | 0 | 0 | ||
Settlements | (46) | 0 | (46) | ||
Transfer into Level 3 | [1] | 0 | 0 | 0 | |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | |
Ending balance | 0 | 131 | 0 | 131 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 9 | ||
Reinsurance recoverable | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | [2] | 15 | 23 | 16 | 17 |
Total realized and unrealized gains (losses), Included in net income (loss) | [2] | 0 | 3 | (2) | 8 |
Total realized and unrealized gains (losses), Included in OCI | [2] | 0 | 0 | 0 | 0 |
Purchases | [2] | 0 | 0 | 0 | 0 |
Sales | [2] | 0 | 0 | 0 | 0 |
Issuances | [2] | 0 | 0 | 1 | 1 |
Settlements | [2] | 0 | 0 | 0 | 0 |
Transfer into Level 3 | [1],[2] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1],[2] | 0 | 0 | 0 | 0 |
Ending balance | [2] | 15 | 26 | 15 | 26 |
Total gains (losses) included in net income (loss) attributable to assets still held | [2] | 0 | 3 | (2) | 8 |
Fixed maturity securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 4,260 | 5,181 | 4,301 | 5,180 | |
Total realized and unrealized gains (losses), Included in net income (loss) | (3) | (10) | 5 | 9 | |
Total realized and unrealized gains (losses), Included in OCI | 102 | 130 | 147 | 180 | |
Purchases | 114 | 145 | 258 | 235 | |
Sales | (51) | (60) | (72) | (60) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (40) | (37) | (131) | (158) | |
Transfer into Level 3 | [1] | 104 | 140 | 119 | 266 |
Transfer out of Level 3 | [1] | (169) | (1,097) | (310) | (1,260) |
Ending balance | 4,317 | 4,392 | 4,317 | 4,392 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 6 | (12) | 12 | 2 | |
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 | 1 | 2 | 2 | 3 | |
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 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 1 | 2 | 1 | 2 | |
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 | 37 | 42 | 37 | 35 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 1 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | (1) | (1) | |
Purchases | 0 | 0 | 0 | 7 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | (6) | 0 | (6) |
Ending balance | 37 | 36 | 37 | 36 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 1 | 1 | |
Fixed maturity securities | U.S. corporate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 2,441 | 2,289 | 2,487 | 2,329 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 4 | 0 | 9 | 16 | |
Total realized and unrealized gains (losses), Included in OCI | 72 | 72 | 102 | 102 | |
Purchases | 71 | 83 | 126 | 116 | |
Sales | (7) | (32) | (27) | (32) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (15) | (19) | (49) | (90) | |
Transfer into Level 3 | [1] | 68 | 88 | 68 | 144 |
Transfer out of Level 3 | [1] | (74) | (61) | (156) | (165) |
Ending balance | 2,560 | 2,420 | 2,560 | 2,420 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 5 | (2) | 9 | 9 | |
Fixed maturity securities | U.S. corporate | Utilities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 578 | 482 | 576 | 449 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | (1) | 0 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 13 | 19 | 20 | 24 | |
Purchases | 30 | 34 | 44 | 47 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (2) | (8) | |
Transfer into Level 3 | [1] | 30 | 18 | 30 | 67 |
Transfer out of Level 3 | [1] | (13) | 0 | (30) | (27) |
Ending balance | 638 | 552 | 638 | 552 | |
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 | 162 | 230 | 210 | 253 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | (1) | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 4 | (3) | 6 | (4) | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | (10) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (7) | (1) | (30) | (2) | |
Transfer into Level 3 | [1] | 1 | 0 | 1 | 7 |
Transfer out of Level 3 | [1] | 0 | (18) | (16) | (46) |
Ending balance | 160 | 208 | 160 | 208 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | (1) | 0 | |
Fixed maturity securities | U.S. corporate | Finance and insurance | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 818 | 697 | 786 | 715 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 4 | (2) | 8 | 8 | |
Total realized and unrealized gains (losses), Included in OCI | 39 | 37 | 51 | 44 | |
Purchases | 24 | 27 | 53 | 27 | |
Sales | (7) | (9) | (17) | (9) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (3) | (10) | (6) | (27) | |
Transfer into Level 3 | [1] | 0 | 35 | 0 | 35 |
Transfer out of Level 3 | [1] | (14) | 0 | (14) | (18) |
Ending balance | 861 | 775 | 861 | 775 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 4 | (4) | 8 | 6 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 122 | 112 | 121 | 109 | |
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 | 3 | 1 | 6 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | (13) | 0 | (13) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 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 | 122 | 102 | 122 | 102 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Technology and communications | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 59 | 37 | 54 | 35 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 1 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 5 | 3 | 6 | 4 | |
Purchases | 4 | 0 | 14 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | (10) | 0 | (17) | 0 |
Ending balance | 58 | 40 | 58 | 40 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 1 | 1 | |
Fixed maturity securities | U.S. corporate | Industrial | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 47 | 64 | 48 | 61 | |
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 | 2 | 0 | 5 | |
Purchases | 13 | 0 | 13 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 12 | 0 | 12 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 61 | 78 | 61 | 78 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Capital goods | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 153 | 154 | 152 | 180 | |
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 | 2 | 3 | 5 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | (10) | 0 | (10) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | (37) | (12) | (37) | (41) |
Ending balance | 118 | 135 | 118 | 135 | |
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 | 263 | 210 | 258 | 239 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 4 | |
Total realized and unrealized gains (losses), Included in OCI | 4 | 5 | 9 | 9 | |
Purchases | 0 | 22 | 2 | 25 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | (1) | (3) | (41) | |
Transfer into Level 3 | [1] | 0 | 18 | 0 | 18 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 266 | 254 | 266 | 254 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |
Fixed maturity securities | U.S. corporate | Transportation | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 97 | 123 | 139 | 106 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 1 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 4 | 4 | 5 | 8 | |
Purchases | 0 | 0 | 0 | 17 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | (4) | (3) | (8) | |
Transfer into Level 3 | [1] | 0 | 5 | 0 | 5 |
Transfer out of Level 3 | [1] | 0 | 0 | (42) | 0 |
Ending balance | 100 | 129 | 100 | 129 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 1 | 1 | |
Fixed maturity securities | U.S. corporate | Other | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 142 | 180 | 143 | 182 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 0 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 1 | 1 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (3) | (3) | (5) | (4) | |
Transfer into Level 3 | [1] | 37 | 0 | 37 | 0 |
Transfer out of Level 3 | [1] | 0 | (31) | 0 | (33) |
Ending balance | 176 | 147 | 176 | 147 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 1 | 0 | 1 | |
Fixed maturity securities | Non-U.S. corporate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 1,501 | 1,551 | 1,533 | 1,545 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 1 | 3 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | 17 | 42 | 29 | 77 | |
Purchases | 25 | 26 | 55 | 26 | |
Sales | 0 | (8) | (1) | (8) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (20) | (5) | (73) | (44) | |
Transfer into Level 3 | [1] | 1 | 38 | 11 | 73 |
Transfer out of Level 3 | [1] | (81) | (38) | (113) | (64) |
Ending balance | 1,444 | 1,607 | 1,444 | 1,607 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 2 | 2 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 386 | 316 | 386 | 287 | |
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 | 5 | 5 | 8 | |
Purchases | 0 | 10 | 30 | 10 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 26 |
Transfer out of Level 3 | [1] | (30) | 0 | (62) | 0 |
Ending balance | 359 | 331 | 359 | 331 | |
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 | 206 | 226 | 206 | 252 | |
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 | 11 | 5 | 24 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | (2) | (1) | (2) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (1) | (1) | (14) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | (32) | 0 | (32) | (26) |
Ending balance | 177 | 234 | 177 | 234 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 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 | 168 | 191 | 182 | 191 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 1 | 3 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | 4 | 9 | 8 | 8 | |
Purchases | 4 | 0 | 4 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (5) | 0 | (25) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 172 | 201 | 172 | 201 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 2 | 2 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 129 | 163 | 139 | 169 | |
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 | 5 | 2 | 10 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | 0 | (12) | (11) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 129 | 168 | 129 | 168 | |
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 | 48 | 64 | 67 | 62 | |
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 | 3 | 0 | 5 | |
Purchases | 0 | 16 | 0 | 16 | |
Sales | 0 | (3) | 0 | (3) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (19) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 48 | 80 | 48 | 80 | |
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 | 110 | 96 | 109 | 84 | |
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 | 2 | 3 | 5 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | (3) | 0 | (3) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 9 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 112 | 95 | 112 | 95 | |
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 | 170 | 214 | 169 | 213 | |
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 | 2 | 2 | 9 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (15) | (4) | (15) | (10) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | (7) | 0 | (7) | 0 |
Ending balance | 149 | 212 | 149 | 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 | 67 | 70 | 69 | 71 | |
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 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (2) | (2) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 67 | 71 | 67 | 71 | |
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 | 193 | 144 | 181 | 144 | |
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 | 4 | 3 | 4 | |
Purchases | 6 | 0 | 6 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 1 | 38 | 11 | 38 |
Transfer out of Level 3 | [1] | (11) | 0 | (11) | 0 |
Ending balance | 190 | 186 | 190 | 186 | |
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 | 24 | 67 | 25 | 72 | |
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 | 1 | 2 | |
Purchases | 15 | 0 | 15 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | (7) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | (38) | 0 | (38) |
Ending balance | 41 | 29 | 41 | 29 | |
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 | 46 | 121 | 43 | 116 | |
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 | 2 | |
Purchases | 0 | 13 | 4 | 51 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (3) | (1) | (5) | |
Transfer into Level 3 | [1] | 26 | 8 | 26 | 8 |
Transfer out of Level 3 | [1] | 0 | (43) | 0 | (76) |
Ending balance | 73 | 96 | 73 | 96 | |
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 | 59 | 8 | 54 | 10 | |
Total realized and unrealized gains (losses), Included in net income (loss) | (1) | 0 | (1) | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 2 | 4 | 6 | 4 | |
Purchases | 8 | 23 | 9 | 23 | |
Sales | (9) | 0 | (9) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (2) | 0 | (4) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | (7) | 0 | (7) | 0 |
Ending balance | 52 | 33 | 52 | 33 | |
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 | 175 | 1,168 | 145 | 1,142 | |
Total realized and unrealized gains (losses), Included in net income (loss) | (7) | (11) | (7) | (10) | |
Total realized and unrealized gains (losses), Included in OCI | 10 | 12 | 10 | (4) | |
Purchases | 10 | 0 | 64 | 12 | |
Sales | (35) | (20) | (35) | (20) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (5) | (8) | (7) | (14) | |
Transfer into Level 3 | [1] | 9 | 6 | 14 | 41 |
Transfer out of Level 3 | [1] | (7) | (949) | (34) | (949) |
Ending balance | 150 | 198 | 150 | 198 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | (11) | 0 | (10) | |
Equity Securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 47 | 44 | 47 | 38 | |
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 | 1 | 0 | 1 | 6 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 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 | 48 | 44 | 48 | 44 | |
Total gains (losses) included in net income (loss) attributable to assets still held | $ 0 | $ 0 | $ 0 | $ 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] | 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 Measured at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income, assets | $ 9 | $ (73) | $ 26 | $ (44) |
Total gains (losses) included in net loss attributable to assets still held, assets | 6 | (6) | 7 | 13 |
Net Investment Income | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income, assets | 5 | 14 | 19 | |
Total gains (losses) included in net loss attributable to assets still held, assets | 6 | (1) | 13 | 14 |
Net Investment (Gains) Losses | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income, assets | $ 4 | (73) | 12 | (63) |
Total gains (losses) included in net loss attributable to assets still held, assets | $ (5) | $ (6) | $ (1) |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 1,037 | $ 1,041 | |
Fixed maturity securities available-for-sale, at fair value | 61,944 | 60,572 | |
Derivative assets, fair value | 758 | 724 | |
Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative assets, fair value | 743 | 708 | |
Other invested assets | Equity index options | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative assets, fair value | 81 | 72 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 670 | 658 | |
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] | 281 | 303 |
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 | 376 | 344 | |
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 | 13 | 11 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fixed maturity securities available-for-sale, at fair value | 4,317 | 4,301 | |
Level 3 | Other invested assets | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative assets, fair value | $ 81 | 75 | |
Level 3 | Other invested assets | Equity index options | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Valuation technique | Discounted cash flows | ||
Fair value input, equity index volatility, lower limit | 6.00% | ||
Fair value input, equity index volatility, upper limit | 27.00% | ||
Fair value input, equity index volatility, weighted-average | 18.00% | ||
Derivative assets, fair value | $ 81 | 72 | |
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | 670 | 658 | |
Level 3 | 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] | $ 281 | 303 |
Valuation technique | [1] | Stochastic cash flow model | |
Fair value, withdrawal utilization rate, lower limit | [1] | 40.00% | |
Fair value, withdrawal utilization rate, upper limit | [1] | 84.00% | |
Fair value, lapse rate, lower limit | [1] | 0.00% | |
Fair value, lapse rate, upper limit | [1] | 7.00% | |
Fair value input, credit spreads, lower limit | [1] | 0.26% | |
Fair value input, credit spreads, upper limit | [1] | 0.83% | |
Fair value input, equity index volatility, lower limit | [1] | 14.00% | |
Fair value input, equity index volatility, upper limit | [1] | 24.00% | |
Fair value, withdrawal utilization rate, weighted-average | [1] | 64.00% | |
Fair value, lapse rate, weighted-average | [1] | 4.00% | |
Fair value input, credit spreads, weighted-average | [1] | 0.66% | |
Fair value input, equity index volatility, weighted-average | [1] | 20.00% | |
Level 3 | Policyholder account balances | Fixed index annuity embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Derivative liabilities, fair value | $ 376 | 344 | |
Valuation technique | Option budget method | ||
Fair value, expected future interest credited, lower limit | 0.00% | ||
Fair value, expected future interest credited, upper limit | 2.00% | ||
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] | |||
Derivative liabilities, fair value | $ 13 | $ 11 | |
Valuation technique | Option budget method | ||
Fair value, expected future interest credited, lower limit | 3.00% | ||
Fair value, expected future interest credited, upper limit | 8.00% | ||
Fair value, expected future interest credited, weighted-average | 5.00% | ||
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 | $ 2,341 | ||
Fair value input, credit spreads, lower limit | 0.60% | ||
Fair value input, credit spreads, upper limit | 4.17% | ||
Fair value input, credit spreads, weighted-average | 1.65% | ||
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 | $ 622 | ||
Fair value input, credit spreads, lower limit | 0.75% | ||
Fair value input, credit spreads, upper limit | 4.17% | ||
Fair value input, credit spreads, weighted-average | 1.47% | ||
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 | $ 87 | ||
Fair value input, credit spreads, lower limit | 0.84% | ||
Fair value input, credit spreads, upper limit | 2.09% | ||
Fair value input, credit spreads, weighted-average | 1.52% | ||
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 | $ 805 | ||
Fair value input, credit spreads, lower limit | 0.79% | ||
Fair value input, credit spreads, upper limit | 3.79% | ||
Fair value input, credit spreads, weighted-average | 2.03% | ||
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 | $ 122 | ||
Fair value input, credit spreads, lower limit | 0.93% | ||
Fair value input, credit spreads, upper limit | 2.68% | ||
Fair value input, credit spreads, weighted-average | 1.63% | ||
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 | $ 58 | ||
Fair value input, credit spreads, lower limit | 0.62% | ||
Fair value input, credit spreads, upper limit | 3.30% | ||
Fair value input, credit spreads, weighted-average | 2.71% | ||
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 | $ 34 | ||
Fair value input, credit spreads, lower limit | 0.98% | ||
Fair value input, credit spreads, upper limit | 2.21% | ||
Fair value input, credit spreads, weighted-average | 1.71% | ||
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 | $ 118 | ||
Fair value input, credit spreads, lower limit | 0.98% | ||
Fair value input, credit spreads, upper limit | 2.68% | ||
Fair value input, credit spreads, weighted-average | 1.46% | ||
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 | $ 240 | ||
Fair value input, credit spreads, lower limit | 0.60% | ||
Fair value input, credit spreads, upper limit | 2.15% | ||
Fair value input, credit spreads, weighted-average | 1.35% | ||
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 | $ 93 | ||
Fair value input, credit spreads, lower limit | 0.60% | ||
Fair value input, credit spreads, upper limit | 2.65% | ||
Fair value input, credit spreads, weighted-average | 1.63% | ||
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 | $ 162 | ||
Fair value input, credit spreads, lower limit | 0.71% | ||
Fair value input, credit spreads, upper limit | 1.38% | ||
Fair value input, credit spreads, weighted-average | 0.82% | ||
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 | $ 1,291 | ||
Fair value input, credit spreads, lower limit | 0.60% | ||
Fair value input, credit spreads, upper limit | 11.59% | ||
Fair value input, credit spreads, weighted-average | 1.28% | ||
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 | $ 359 | ||
Fair value input, credit spreads, lower limit | 0.83% | ||
Fair value input, credit spreads, upper limit | 1.57% | ||
Fair value input, credit spreads, weighted-average | 1.22% | ||
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 | $ 146 | ||
Fair value input, credit spreads, lower limit | 0.98% | ||
Fair value input, credit spreads, upper limit | 1.66% | ||
Fair value input, credit spreads, weighted-average | 1.26% | ||
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 | $ 162 | ||
Fair value input, credit spreads, lower limit | 0.75% | ||
Fair value input, credit spreads, upper limit | 1.97% | ||
Fair value input, credit spreads, weighted-average | 1.22% | ||
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 | $ 118 | ||
Fair value input, credit spreads, lower limit | 0.60% | ||
Fair value input, credit spreads, upper limit | 1.84% | ||
Fair value input, credit spreads, weighted-average | 1.24% | ||
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 | $ 29 | ||
Fair value input, credit spreads, lower limit | 1.30% | ||
Fair value input, credit spreads, upper limit | 2.33% | ||
Fair value input, credit spreads, weighted-average | 1.81% | ||
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 | $ 103 | ||
Fair value input, credit spreads, lower limit | 1.10% | ||
Fair value input, credit spreads, upper limit | 1.90% | ||
Fair value input, credit spreads, weighted-average | 1.40% | ||
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 | $ 107 | ||
Fair value input, credit spreads, lower limit | 0.93% | ||
Fair value input, credit spreads, upper limit | 1.66% | ||
Fair value input, credit spreads, weighted-average | 1.20% | ||
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 | $ 67 | ||
Fair value input, credit spreads, lower limit | 0.91% | ||
Fair value input, credit spreads, upper limit | 1.41% | ||
Fair value input, credit spreads, weighted-average | 1.13% | ||
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 | $ 172 | ||
Fair value input, credit spreads, lower limit | 0.79% | ||
Fair value input, credit spreads, upper limit | 2.15% | ||
Fair value input, credit spreads, weighted-average | 1.22% | ||
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 | $ 28 | ||
Fair value input, credit spreads, lower limit | 1.02% | ||
Fair value input, credit spreads, upper limit | 11.59% | ||
Fair value input, credit spreads, weighted-average | 2.48% | ||
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities by Class of Instrum
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | $ 1,037 | $ 1,041 | |
Borrowings related to securitization entities | 12 | 12 | |
Total liabilities | 1,049 | 1,053 | |
Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 670 | 658 | |
Policyholder account balances | GMWB embedded derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | [1] | 281 | 303 |
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 | 376 | 344 | |
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 | 13 | 11 | |
Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 367 | 383 | |
Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 332 | 349 | |
Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 2 | 5 | |
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 | 1 | ||
Other liabilities | Other foreign currency contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 26 | 27 | |
Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 7 | 1 | |
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 | 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 | ||
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 1 | Other liabilities | Equity return swaps | |||
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 | 367 | 383 | |
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 | 367 | 383 | |
Level 2 | Other liabilities | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 332 | 349 | |
Level 2 | Other liabilities | Foreign currency swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 2 | 5 | |
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 | 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 | 26 | 27 | |
Level 2 | Other liabilities | Equity return swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 7 | 1 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings related to securitization entities | 12 | 12 | |
Total liabilities | 682 | 670 | |
Level 3 | Policyholder account balances | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liabilities, fair value | 670 | 658 | |
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] | 281 | 303 |
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 | 376 | 344 | |
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 | 13 | 11 | |
Level 3 | Other liabilities | |||
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 | |||
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 | 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 | |
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 | $ 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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 661 | $ 891 | $ 670 | $ 799 | |
Total realized and unrealized (gains) losses included in net (income) loss | 13 | (23) | (2) | 51 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 10 | 11 | 19 | 32 | |
Settlements | (2) | (7) | (5) | (10) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | (3) | 0 | (3) | |
Ending balance | 682 | 869 | 682 | 869 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 12 | 43 | 1 | 121 | |
Derivative liabilities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 6 | 14 | |||
Total realized and unrealized (gains) losses included in net (income) loss | (4) | (13) | |||
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | |||
Purchases | 0 | 0 | |||
Sales | 0 | 0 | |||
Issuances | 0 | 0 | |||
Settlements | 1 | 2 | |||
Transfer into Level 3 | 0 | 0 | |||
Transfer out of Level 3 | (3) | (3) | |||
Ending balance | 0 | 0 | |||
Total (gains) losses included in net (income) loss attributable to liabilities still held | (4) | (13) | |||
Credit default swaps related to securitization entities | Derivative liabilities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 6 | 14 | |||
Total realized and unrealized (gains) losses included in net (income) loss | (4) | (13) | |||
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | |||
Purchases | 0 | 0 | |||
Sales | 0 | 0 | |||
Issuances | 0 | 0 | |||
Settlements | 1 | 2 | |||
Transfer into Level 3 | 0 | 0 | |||
Transfer out of Level 3 | (3) | (3) | |||
Ending balance | 0 | 0 | |||
Total (gains) losses included in net (income) loss attributable to liabilities still held | (4) | (13) | |||
Policyholder account balances | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 648 | 800 | 658 | 704 | |
Total realized and unrealized (gains) losses included in net (income) loss | 13 | 50 | (3) | 129 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 10 | 11 | 19 | 32 | |
Settlements | (1) | (3) | (4) | (7) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 670 | 858 | 670 | 858 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 12 | 51 | 0 | 134 | |
Policyholder account balances | GMWB embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | [1] | 275 | 443 | 303 | 352 |
Total realized and unrealized (gains) losses included in net (income) loss | [1] | (1) | 43 | (36) | 126 |
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] | 7 | 8 | 14 | 16 |
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] | 281 | 494 | 281 | 494 |
Total (gains) losses included in net (income) loss attributable to liabilities still held | [1] | (2) | 44 | (33) | 131 |
Policyholder account balances | Fixed index annuity embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 361 | 345 | 344 | 342 | |
Total realized and unrealized (gains) losses included in net (income) loss | 16 | 9 | 36 | 6 | |
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 | 10 | |
Settlements | (1) | (3) | (4) | (7) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 376 | 351 | 376 | 351 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 16 | 9 | 36 | 6 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 12 | 12 | 11 | 10 | |
Total realized and unrealized (gains) losses included in net (income) loss | (2) | (2) | (3) | (3) | |
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 | 3 | 5 | 6 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 13 | 13 | 13 | 13 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (2) | (2) | (3) | (3) | |
Borrowings related to securitization entities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 13 | 85 | 12 | 81 | |
Total realized and unrealized (gains) losses included in net (income) loss | 0 | (69) | 1 | (65) | |
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 | (1) | (5) | (1) | (5) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 12 | 11 | 12 | 11 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | $ 0 | $ (4) | $ 1 | $ 0 | |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Gains and Losses Included in 73
Gains and Losses Included in Net (Income) Loss from Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Total realized and unrealized (gains) losses included in net (income), liabilities | $ 13 | $ (23) | $ (2) | $ 51 |
Total (gains) losses included in net loss attributable to liabilities still held, liabilities | 12 | 43 | 1 | 121 |
Net Investment Income | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Total realized and unrealized (gains) losses included in net (income), liabilities | 0 | 0 | 0 | 0 |
Total (gains) losses included in net loss attributable to liabilities still held, liabilities | 0 | 0 | 0 | 0 |
Net Investment (Gains) Losses | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Total realized and unrealized (gains) losses included in net (income), liabilities | 13 | (23) | (2) | 51 |
Total (gains) losses included in net loss attributable to liabilities still held, liabilities | $ 12 | $ 43 | $ 1 | $ 121 |
Activity Impacting Deferred Acq
Activity Impacting Deferred Acquisition Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs [Line Items] | ||||
Unamortized beginning balance | $ 4,241 | $ 4,569 | ||
Impact of foreign currency translation | 6 | 8 | ||
Costs deferred | 44 | 91 | ||
Amortization, net of interest accretion | (197) | (177) | ||
Unamortized ending balance | $ 4,094 | 4,094 | 4,491 | |
Accumulated effect of net unrealized investment (gains) losses | (1,716) | (1,716) | (445) | |
Ending balance | $ 2,378 | $ 2,378 | $ 4,046 | $ 3,571 |
Deferred Acquisition Costs - Ad
Deferred Acquisition Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs [Line Items] | |||||
Deferred Policy acquisition costs amortization | $ 197,000,000 | $ 177,000,000 | |||
Accumulated effect of net unrealized investment (gains) losses | $ 1,716,000,000 | 1,716,000,000 | 445,000,000 | ||
Deferred acquisition costs | 2,378,000,000 | $ 4,046,000,000 | 2,378,000,000 | $ 4,046,000,000 | $ 3,571,000,000 |
Loss Recognition Testing | Immediate Fixed Annuity | |||||
Deferred Policy Acquisition Costs [Line Items] | |||||
Deferred Policy acquisition costs amortization | 14,000,000 | ||||
Increase in future policy benefit reserves | 22,000,000 | $ 18,000,000 | |||
Long-term Care Insurance | |||||
Deferred Policy Acquisition Costs [Line Items] | |||||
Accumulated effect of net unrealized investment (gains) losses | 1,300,000,000 | ||||
Deferred acquisition costs | $ 0 | $ 0 |
Changes in Liability for Policy
Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 9,256 | $ 8,095 |
Less reinsurance recoverables | (2,409) | (2,122) |
Net beginning balance | 6,847 | 5,973 |
Current year | 1,804 | 1,608 |
Prior years | (244) | 32 |
Total incurred | 1,560 | 1,640 |
Current year | (450) | (443) |
Prior years | (1,224) | (1,162) |
Total paid | (1,674) | (1,605) |
Interest on liability for policy and contract claims | 147 | 123 |
Foreign currency translation | 18 | 10 |
Net ending balance | 6,898 | 6,141 |
Add reinsurance recoverables | 2,341 | 2,148 |
Ending balance | $ 9,239 | $ 8,289 |
Liability for Policy and Cont77
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred related to insured events of prior year | $ (244) | $ 32 |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Examination [Line Items] | ||||
Pre-tax income | $ 401 | $ 351 | $ 733 | $ 501 |
Statutory U.S. federal income tax rate | 140 | 122 | 257 | 175 |
State income tax, net of federal income tax effect | 1 | 0 | (2) | 1 |
Tax favored investments | (3) | (2) | (2) | (3) |
Effect of foreign operations | (8) | (11) | (8) | (17) |
Reversal of valuation allowance | 0 | 0 | 0 | (25) |
Stock-based compensation | 0 | 0 | 1 | 3 |
Loss on sale of business | 0 | 1 | 0 | (1) |
Other, net | 0 | 0 | 0 | 0 |
Total provision (benefit) for income taxes | $ 130 | $ 110 | $ 246 | $ 133 |
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income tax, net of federal income tax effect | 0.20% | 0.00% | (0.30%) | 0.20% |
Tax favored investments | (0.70%) | (0.50%) | (0.30%) | (0.60%) |
Effect of foreign operations | (2.00%) | (3.20%) | (1.00%) | (3.40%) |
Reversal of valuation allowance | 0.00% | 0.00% | 0.00% | (5.00%) |
Stock-based compensation | 0.00% | 0.00% | 0.20% | 0.60% |
Loss on sale of business | 0.00% | 0.20% | 0.00% | (0.20%) |
Other, net | 0.00% | (0.20%) | 0.00% | (0.10%) |
Effective rate | 32.50% | 31.30% | 33.60% | 26.50% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2017USD ($)Segment | Jun. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of operating segments | Segment | 5 | ||||
Assumed tax rate on adjustments to net operating income | 35.00% | ||||
Expenses related to restructuring | $ 0 | $ 5 | $ 1 | $ 20 | |
Gain (loss) on sale of business, before taxes | 0 | 10 | 0 | 3 | |
Gains (losses) related to early extinguishment of debt | 0 | 64 | 0 | 48 | |
Gains (losses) from life block transactions, pre-tax | 0 | 0 | $ (9) | 0 | (9) |
Restructuring charges | 5 | 15 | |||
Fees associated with bond consent solicitation | $ 0 | 0 | $ 0 | $ 18 | |
Borrowings related to securitization entities | |||||
Segment Reporting Information [Line Items] | |||||
Gains (losses) related to early extinguishment of debt | 64 | ||||
U.S. Life Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Life insurance premiums ceded | 326 | ||||
European Mortgage Insurance Business | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale of business, before taxes | (2) | (7) | |||
Gain (loss) on sale of business, tax expense (benefit) | (27) | ||||
Term Life Insurance New Business Platform | |||||
Segment Reporting Information [Line Items] | |||||
Gain (loss) on sale of business, before taxes | $ 12 | ||||
Genworth Holdings | |||||
Segment Reporting Information [Line Items] | |||||
Pre-tax make-whole expense | 20 | ||||
Principal amount of notes repurchased | 28 | ||||
Gains (losses) related to early extinguishment of debt | 4 | ||||
Fees associated with bond consent solicitation | $ 18 |
Summary of Revenues for Segment
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,223 | $ 2,236 | $ 4,394 | $ 4,021 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 189 | 176 | 376 | 351 |
Segment, Continuing Operations | Canada Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 204 | 147 | 373 | 307 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 97 | 113 | 219 | 218 |
Segment, Continuing Operations | Long-term Care Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,036 | 1,119 | 2,030 | 2,071 |
Segment, Continuing Operations | Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 411 | 412 | 828 | 535 |
Segment, Continuing Operations | Fixed Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 210 | 189 | 415 | 395 |
Segment, Continuing Operations | U.S. Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,657 | 1,720 | 3,273 | 3,001 |
Segment, Continuing Operations | Runoff | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 89 | 65 | 176 | 134 |
Segment, Continuing Operations | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ (13) | $ 15 | $ (23) | $ 10 |
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 | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Segment Reporting Information [Line Items] | ||||||
Net income available to Genworth Financial, Inc.'s common stockholders | $ 202 | $ 172 | $ 357 | $ 225 | ||
Add: net income attributable to noncontrolling interests | 69 | 48 | 130 | 103 | ||
Net income | 271 | 220 | 487 | 328 | ||
Loss from discontinued operations, net of taxes | 0 | (21) | 0 | (40) | ||
Income from continuing operations | 271 | 241 | 487 | 368 | ||
Less: income from continuing operations attributable to noncontrolling interests | 69 | 48 | 130 | 103 | ||
Income from continuing operations available to Genworth Financial, Inc.'s common stockholders | 202 | 193 | 357 | 265 | ||
Net investment (gains) losses, net | [1] | (79) | (39) | (99) | (20) | |
Gains from sale of businesses | 0 | (10) | 0 | (3) | ||
Gains on early extinguishment of debt, net | 0 | (64) | 0 | (48) | ||
Losses from life block transactions | 0 | 0 | $ 9 | 0 | 9 | |
Expenses related to restructuring | 0 | 5 | 1 | 20 | ||
Fees associated with bond consent solicitation | 0 | 0 | 0 | 18 | ||
Taxes on adjustments | 28 | 38 | 35 | (15) | ||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 151 | 123 | 294 | 226 | ||
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 91 | 61 | 164 | 122 | ||
Segment, Continuing Operations | Canada Mortgage Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 41 | 38 | 77 | 71 | ||
Segment, Continuing Operations | Australia Mortgage Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 12 | 15 | 25 | 34 | ||
Segment, Continuing Operations | Long-term Care Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 33 | 37 | 47 | 71 | ||
Segment, Continuing Operations | Life Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (1) | 31 | 15 | 62 | ||
Segment, Continuing Operations | Fixed Annuities | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 7 | (13) | 30 | 13 | ||
Segment, Continuing Operations | U.S. Life Insurance | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 39 | 55 | 92 | 146 | ||
Segment, Continuing Operations | Runoff | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 11 | 6 | 25 | 10 | ||
Segment, Continuing Operations | Corporate and Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (43) | $ (52) | $ (89) | $ (157) | ||
[1] | For the three months ended June 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(6) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $22 million and $(3) million, respectively. For the six months ended June 30, 2017 and 2016, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of zero and $(15) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $36 million and $6 million, respectively. |
Summary of Net Operating Inco82
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - Net Investment (Gains) Losses - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Adjustment for DAC and other intangibles and certain benefit reserves | $ 0 | $ (6) | $ 0 | $ (15) |
Adjustment for portion attributable to noncontrolling interests | $ 22 | $ (3) | $ 36 | $ 6 |
Summary of Total Assets for Seg
Summary of Total Assets for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 105,016 | $ 104,658 |
Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 105,016 | 104,658 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,877 | 2,674 |
Segment, Continuing Operations | Canada Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,141 | 4,884 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,822 | 2,619 |
Segment, Continuing Operations | U.S. Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 82,019 | 81,933 |
Segment, Continuing Operations | Runoff | ||
Segment Reporting Information [Line Items] | ||
Total assets | 11,075 | 11,352 |
Segment, Continuing Operations | Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,082 | $ 1,196 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | |
Commitment to fund limited partnership investments | $ 268 |
Commitment to fund U.S. commercial mortgage loan investments | 23 |
Commitment to fund private placement investments | 36 |
Long-term Care Insurance Class Action Lawsuit | |
Commitments and Contingencies Disclosure [Line Items] | |
Settlement payment | $ 20 |
Component of Changes in Accumul
Component of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||||
Net unrealized investment gains (losses), beginning of period | [1] | $ 1,243 | $ 2,057 | $ 1,262 | $ 1,254 |
Net unrealized investment gains (losses), OCI before reclassifications | [1] | (32) | 815 | (25) | 1,606 |
Net unrealized investment gains (losses), amounts reclassified from (to) OCI | [1] | (40) | (65) | (58) | (53) |
Net unrealized investment gains (losses), current period OCI | [1] | (72) | 750 | (83) | 1,553 |
Net unrealized investment gains (losses), before noncontrolling interest | [1] | 1,171 | 2,807 | 1,179 | 2,807 |
Less: Net unrealized investment gains (losses), change in OCI attributable to noncontrolling interests | [1] | (9) | 18 | (1) | 18 |
Net unrealized investment gains (losses), end of period | [1] | 1,180 | 2,789 | 1,180 | 2,789 |
Derivatives qualifying as effective accounting hedges, beginning of period | [2] | 2,036 | 2,302 | 2,085 | 2,045 |
Derivatives qualifying as hedges, OCI before reclassifications | [2] | 48 | 160 | 19 | 435 |
Derivatives qualifying as hedges, amounts reclassified from (to) OCI | [2] | (20) | (23) | (40) | (41) |
Derivatives qualifying as hedges, current period OCI | [2] | 28 | 137 | (21) | 394 |
Derivatives qualifying as hedges, before noncontrolling interests | [2] | 2,064 | 2,439 | 2,064 | 2,439 |
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] | 2,064 | 2,439 | 2,064 | 2,439 |
Foreign currency translation and other adjustments, beginning balances | (183) | (174) | (253) | (289) | |
Foreign currency translation and other adjustments, OCI before reclassifications | 61 | 8 | 180 | 224 | |
Foreign currency translation and other adjustments, amounts reclassified from (to) OCI | 0 | 0 | 0 | 0 | |
Foreign currency translation and other adjustments, current period OCI | 61 | 8 | 180 | 224 | |
Foreign currency translation and other adjustments, before noncontrolling interests | (122) | (166) | (73) | (65) | |
Less: Foreign currency translation and other adjustments, change in OCI attributable to noncontrolling interests | 27 | (26) | 76 | 75 | |
Foreign currency translation and other adjustments, ending balances | (149) | (140) | (149) | (140) | |
Accumulated other comprehensive income (loss), beginning balances | 3,096 | 4,185 | 3,094 | 3,010 | |
OCI before reclassifications | 77 | 983 | 174 | 2,265 | |
Amounts reclassified from (to) OCI | (60) | (88) | (98) | (94) | |
Total other comprehensive income (loss) | 17 | 895 | 76 | 2,171 | |
Accumulated other comprehensive income (loss), before noncontrolling interests | 3,113 | 5,080 | 3,170 | 5,181 | |
Less: change in OCI attributable to noncontrolling interests | 18 | (8) | 75 | 93 | |
Accumulated other comprehensive income (loss), ending balances | $ 3,095 | $ 5,088 | $ 3,095 | $ 5,088 | |
[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 86
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | ||
Unrecognized postretirement benefit obligation, current period OCI | $ (5) | $ (6) |
Unrecognized postretirement benefit obligation, current period OCI, tax | 1 | 2 |
Foreign currency translation and other adjustments, current period OCI, tax | $ 23 | $ 54 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net investment income | $ (801) | $ (779) | $ (1,591) | $ (1,568) | |
Net investment (gains) losses | (101) | (30) | (135) | (11) | |
Provision for income taxes | (130) | (110) | (246) | (133) | |
(Income) loss from continuing operations | (271) | (241) | (487) | (368) | |
Amount reclassified from accumulated other comprehensive income (loss) | Net unrealized investment (gains) losses | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net investment (gains) losses | [1] | (61) | (100) | (89) | (82) |
Provision for income taxes | 21 | 35 | 31 | 29 | |
(Income) loss from continuing operations | (40) | (65) | (58) | (53) | |
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Provision for income taxes | 12 | 12 | 23 | 22 | |
(Income) loss from continuing operations | (20) | (23) | (40) | (41) | |
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Interest rate swaps | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net investment income | (31) | (28) | (61) | (53) | |
Net investment (gains) losses | $ (1) | $ (2) | (1) | ||
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Inflation indexed swaps | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net investment income | (2) | ||||
Net investment (gains) losses | $ (7) | $ (7) | |||
[1] | Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | $ 61,944 | $ 60,572 | ||||
Equity securities available-for-sale, at fair value | 855 | 632 | ||||
Commercial mortgage loans | 6,237 | 6,111 | ||||
Restricted commercial mortgage loans related to securitization entities | 118 | 129 | ||||
Policy loans | 1,824 | 1,742 | ||||
Other invested assets | 2,177 | 2,071 | ||||
Restricted other invested assets related to securitization entities, at fair value | 81 | 312 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Total investments | 73,236 | 71,569 | ||||
Cash and cash equivalents | 2,853 | 2,784 | $ 3,457 | $ 5,993 | ||
Accrued investment income | 599 | 659 | ||||
Deferred acquisition costs | 2,378 | 3,571 | 4,046 | |||
Intangible assets and goodwill | 334 | 348 | ||||
Reinsurance recoverable | 17,609 | 17,755 | ||||
Other assets | 715 | 673 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Deferred tax assets | 23 | 0 | ||||
Separate account assets | 7,269 | 7,299 | ||||
Total assets | 105,016 | 104,658 | ||||
Liabilities and equity | ||||||
Future policy benefits | 37,772 | 37,063 | ||||
Policyholder account balances | 24,971 | 25,662 | ||||
Liability for policy and contract claims | 9,239 | 9,256 | 8,289 | 8,095 | ||
Unearned premiums | 3,400 | 3,378 | ||||
Other liabilities | 2,629 | 2,916 | ||||
Intercompany notes payable | 0 | 0 | ||||
Borrowings related to securitization entities | 63 | 74 | ||||
Non-recourse funding obligations | 310 | 310 | ||||
Long-term borrowings | 4,205 | 4,180 | ||||
Deferred tax liability | 162 | 53 | ||||
Separate account liabilities | 7,269 | 7,299 | ||||
Total liabilities | 90,020 | 90,191 | ||||
Equity: | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 11,969 | 11,962 | ||||
Accumulated other comprehensive income (loss) | 3,095 | $ 3,096 | 3,094 | 5,088 | $ 4,185 | 3,010 |
Retained earnings | 653 | 287 | ||||
Treasury stock, at cost | (2,700) | (2,700) | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 13,018 | 12,644 | ||||
Noncontrolling interests | 1,978 | 1,823 | ||||
Total equity | 14,996 | 14,467 | 17,009 | 14,637 | ||
Total liabilities and equity | 105,016 | 104,658 | ||||
Reportable Legal Entities | 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 | 13,128 | 12,730 | ||||
Total investments | 13,128 | 12,730 | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Accrued investment income | 0 | 0 | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets and goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | 11 | 9 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Deferred tax assets | 0 | 28 | ||||
Separate account assets | 0 | 0 | ||||
Total assets | 13,139 | 12,767 | ||||
Liabilities and 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 | 28 | 39 | ||||
Intercompany notes payable | 124 | 84 | ||||
Borrowings related to securitization entities | 0 | 0 | ||||
Non-recourse funding obligations | 0 | 0 | ||||
Long-term borrowings | 0 | 0 | ||||
Deferred tax liability | (31) | 0 | ||||
Separate account liabilities | 0 | 0 | ||||
Total liabilities | 121 | 123 | ||||
Equity: | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 11,969 | 11,962 | ||||
Accumulated other comprehensive income (loss) | 3,095 | 3,094 | ||||
Retained earnings | 653 | 287 | ||||
Treasury stock, at cost | (2,700) | (2,700) | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 13,018 | 12,644 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 13,018 | 12,644 | ||||
Total liabilities and equity | 13,139 | 12,767 | ||||
Reportable Legal Entities | Issuer | ||||||
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 | 99 | 105 | ||||
Restricted other invested assets related to securitization entities, at fair value | 0 | 0 | ||||
Investments in subsidiaries | 12,503 | 12,308 | ||||
Total investments | 12,602 | 12,413 | ||||
Cash and cash equivalents | 758 | 998 | 834 | 1,124 | ||
Accrued investment income | 0 | 0 | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets and goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | 137 | 134 | ||||
Intercompany notes receivable | 135 | 84 | ||||
Deferred tax assets | 0 | 0 | ||||
Separate account assets | 0 | 0 | ||||
Total assets | 13,632 | 13,629 | ||||
Liabilities and 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 | 201 | 301 | ||||
Intercompany notes payable | 220 | 267 | ||||
Borrowings related to securitization entities | 0 | 0 | ||||
Non-recourse funding obligations | 0 | 0 | ||||
Long-term borrowings | 3,720 | 3,716 | ||||
Deferred tax liability | (831) | (816) | ||||
Separate account liabilities | 0 | 0 | ||||
Total liabilities | 3,310 | 3,468 | ||||
Equity: | ||||||
Common stock | 0 | 0 | ||||
Additional paid-in capital | 9,097 | 9,097 | ||||
Accumulated other comprehensive income (loss) | 3,111 | 3,135 | ||||
Retained earnings | (1,886) | (2,071) | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 10,322 | 10,161 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 10,322 | 10,161 | ||||
Total liabilities and equity | 13,632 | 13,629 | ||||
Reportable Legal Entities | All Other Subsidiaries | ||||||
Assets | ||||||
Fixed maturity securities available-for-sale, at fair value | 62,144 | 60,772 | ||||
Equity securities available-for-sale, at fair value | 855 | 632 | ||||
Commercial mortgage loans | 6,237 | 6,111 | ||||
Restricted commercial mortgage loans related to securitization entities | 118 | 129 | ||||
Policy loans | 1,824 | 1,742 | ||||
Other invested assets | 2,080 | 1,966 | ||||
Restricted other invested assets related to securitization entities, at fair value | 81 | 312 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Total investments | 73,339 | 71,664 | ||||
Cash and cash equivalents | 2,095 | 1,786 | 2,623 | 4,869 | ||
Accrued investment income | 603 | 663 | ||||
Deferred acquisition costs | 2,378 | 3,571 | ||||
Intangible assets and goodwill | 334 | 348 | ||||
Reinsurance recoverable | 17,609 | 17,755 | ||||
Other assets | 568 | 530 | ||||
Intercompany notes receivable | 20 | 67 | ||||
Deferred tax assets | 23 | (28) | ||||
Separate account assets | 7,269 | 7,299 | ||||
Total assets | 104,238 | 103,655 | ||||
Liabilities and equity | ||||||
Future policy benefits | 37,772 | 37,063 | ||||
Policyholder account balances | 24,971 | 25,662 | ||||
Liability for policy and contract claims | 9,239 | 9,256 | ||||
Unearned premiums | 3,400 | 3,378 | ||||
Other liabilities | 2,408 | 2,581 | ||||
Intercompany notes payable | 11 | 0 | ||||
Borrowings related to securitization entities | 63 | 74 | ||||
Non-recourse funding obligations | 310 | 310 | ||||
Long-term borrowings | 485 | 464 | ||||
Deferred tax liability | 1,024 | 869 | ||||
Separate account liabilities | 7,269 | 7,299 | ||||
Total liabilities | 86,952 | 86,956 | ||||
Equity: | ||||||
Common stock | 2 | 0 | ||||
Additional paid-in capital | 18,382 | 20,252 | ||||
Accumulated other comprehensive income (loss) | 3,118 | 3,116 | ||||
Retained earnings | (6,494) | (8,792) | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | 15,008 | 14,576 | ||||
Noncontrolling interests | 2,278 | 2,123 | ||||
Total equity | 17,286 | 16,699 | ||||
Total liabilities and equity | 104,238 | 103,655 | ||||
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 | (2) | 0 | ||||
Restricted other invested assets related to securitization entities, at fair value | 0 | 0 | ||||
Investments in subsidiaries | (25,631) | (25,038) | ||||
Total investments | (25,833) | (25,238) | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | ||
Accrued investment income | (4) | (4) | ||||
Deferred acquisition costs | 0 | 0 | ||||
Intangible assets and goodwill | 0 | 0 | ||||
Reinsurance recoverable | 0 | 0 | ||||
Other assets | (1) | 0 | ||||
Intercompany notes receivable | (155) | (151) | ||||
Deferred tax assets | 0 | 0 | ||||
Separate account assets | 0 | 0 | ||||
Total assets | (25,993) | (25,393) | ||||
Liabilities and 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 | (8) | (5) | ||||
Intercompany notes payable | (355) | (351) | ||||
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 | ||||
Total liabilities | (363) | (356) | ||||
Equity: | ||||||
Common stock | (2) | 0 | ||||
Additional paid-in capital | (27,479) | (29,349) | ||||
Accumulated other comprehensive income (loss) | (6,229) | (6,251) | ||||
Retained earnings | 8,380 | 10,863 | ||||
Treasury stock, at cost | 0 | 0 | ||||
Total Genworth Financial, Inc.'s stockholders' equity | (25,330) | (24,737) | ||||
Noncontrolling interests | (300) | (300) | ||||
Total equity | (25,630) | (25,037) | ||||
Total liabilities and equity | $ (25,993) | $ (25,393) |
Condensed Consolidating Income
Condensed Consolidating Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Premiums | $ 1,111 | $ 1,127 | $ 2,247 | $ 1,921 |
Net investment income | 801 | 779 | 1,591 | 1,568 |
Net investment gains (losses) | 101 | 30 | 135 | 11 |
Policy fees and other income | 210 | 300 | 421 | 521 |
Total revenues | 2,223 | 2,236 | 4,394 | 4,021 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,206 | 1,193 | 2,452 | 2,053 |
Interest credited | 163 | 173 | 330 | 350 |
Acquisition and operating expenses, net of deferrals | 240 | 327 | 510 | 721 |
Amortization of deferred acquisition costs and intangibles | 139 | 112 | 233 | 211 |
Interest expense | 74 | 80 | 136 | 185 |
Total benefits and expenses | 1,822 | 1,885 | 3,661 | 3,520 |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | 401 | 351 | 733 | 501 |
Provision (benefit) for income taxes | 130 | 110 | 246 | 133 |
Equity in income of subsidiaries | 0 | 0 | 0 | 0 |
Income from continuing operations | 271 | 241 | 487 | 368 |
Loss from discontinued operations, net of taxes | 0 | (21) | 0 | (40) |
Net income | 271 | 220 | 487 | 328 |
Less: net income attributable to noncontrolling interests | 69 | 48 | 130 | 103 |
Net income available to Genworth Financial, Inc.'s common stockholders | 202 | 172 | 357 | 225 |
Reportable Legal Entities | Parent Guarantor | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | (1) | 0 | (2) | (1) |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Policy fees and other income | 0 | 0 | 0 | 0 |
Total revenues | (1) | 0 | (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 | 15 | 17 | 28 | 105 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 1 |
Total benefits and expenses | 15 | 17 | 28 | 106 |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | (16) | (17) | (30) | (107) |
Provision (benefit) for income taxes | (7) | (3) | (4) | (27) |
Equity in income of subsidiaries | 211 | 188 | 383 | 307 |
Income from continuing operations | 202 | 174 | 357 | 227 |
Loss from discontinued operations, net of taxes | 0 | (2) | 0 | (2) |
Net income | 202 | 172 | 357 | 225 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | 202 | 172 | 357 | 225 |
Reportable Legal Entities | Issuer | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | 2 | 1 | 3 | 0 |
Net investment gains (losses) | (5) | 2 | (8) | (13) |
Policy fees and other income | (1) | (2) | (1) | (6) |
Total revenues | (4) | 1 | (6) | (19) |
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 | 3 | 0 | 38 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Interest expense | 66 | 70 | 121 | 141 |
Total benefits and expenses | 66 | 73 | 121 | 179 |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | (70) | (72) | (127) | (198) |
Provision (benefit) for income taxes | (24) | (24) | (44) | (67) |
Equity in income of subsidiaries | 145 | 179 | 268 | 285 |
Income from continuing operations | 99 | 131 | 185 | 154 |
Loss from discontinued operations, net of taxes | 0 | (18) | 0 | (18) |
Net income | 99 | 113 | 185 | 136 |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | 99 | 113 | 185 | 136 |
Reportable Legal Entities | All Other Subsidiaries | ||||
Revenues: | ||||
Premiums | 1,111 | 1,127 | 2,247 | 1,921 |
Net investment income | 803 | 781 | 1,597 | 1,576 |
Net investment gains (losses) | 106 | 28 | 143 | 24 |
Policy fees and other income | 211 | 303 | 422 | 528 |
Total revenues | 2,231 | 2,239 | 4,409 | 4,049 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,206 | 1,193 | 2,452 | 2,053 |
Interest credited | 163 | 173 | 330 | 350 |
Acquisition and operating expenses, net of deferrals | 225 | 307 | 482 | 578 |
Amortization of deferred acquisition costs and intangibles | 139 | 112 | 233 | 211 |
Interest expense | 11 | 14 | 22 | 51 |
Total benefits and expenses | 1,744 | 1,799 | 3,519 | 3,243 |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | 487 | 440 | 890 | 806 |
Provision (benefit) for income taxes | 161 | 137 | 294 | 227 |
Equity in income of subsidiaries | 0 | 0 | 0 | 0 |
Income from continuing operations | 326 | 303 | 596 | 579 |
Loss from discontinued operations, net of taxes | 0 | (1) | 0 | (20) |
Net income | 326 | 302 | 596 | 559 |
Less: net income attributable to noncontrolling interests | 69 | 48 | 130 | 103 |
Net income available to Genworth Financial, Inc.'s common stockholders | 257 | 254 | 466 | 456 |
Eliminations | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | (3) | (3) | (7) | (7) |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Policy fees and other income | 0 | (1) | 0 | (1) |
Total revenues | (3) | (4) | (7) | (8) |
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 |
Interest expense | (3) | (4) | (7) | (8) |
Total benefits and expenses | (3) | (4) | (7) | (8) |
Income (loss) from continuing operations before income taxes and equity in income of subsidiaries | 0 | 0 | 0 | 0 |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Equity in income of subsidiaries | (356) | (367) | (651) | (592) |
Income from continuing operations | (356) | (367) | (651) | (592) |
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net income | (356) | (367) | (651) | (592) |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income available to Genworth Financial, Inc.'s common stockholders | $ (356) | $ (367) | $ (651) | $ (592) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income | $ 271 | $ 220 | $ 487 | $ 328 | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (72) | 745 | (84) | 1,552 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 5 | 1 | 1 | |
Derivatives qualifying as hedges | [1] | 28 | 137 | (21) | 394 |
Foreign currency translation and other adjustments | 61 | 8 | 180 | 224 | |
Total other comprehensive income (loss) | 17 | 895 | 76 | 2,171 | |
Total comprehensive income | 288 | 1,115 | 563 | 2,499 | |
Less: comprehensive income attributable to noncontrolling interests | 87 | 40 | 205 | 196 | |
Total comprehensive income available to Genworth Financial, Inc.'s common stockholders | 201 | 1,075 | 358 | 2,303 | |
Reportable Legal Entities | Parent Guarantor | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income | 202 | 172 | 357 | 225 | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (63) | 727 | (83) | 1,534 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 5 | 1 | 1 | |
Derivatives qualifying as hedges | 28 | 137 | (21) | 394 | |
Foreign currency translation and other adjustments | 34 | 34 | 104 | 149 | |
Total other comprehensive income (loss) | (1) | 903 | 1 | 2,078 | |
Total comprehensive income | 201 | 1,075 | 358 | 2,303 | |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Total comprehensive income available to Genworth Financial, Inc.'s common stockholders | 201 | 1,075 | 358 | 2,303 | |
Reportable Legal Entities | Issuer | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income | 99 | 113 | 185 | 136 | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (70) | 703 | (101) | 1,492 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 6 | 1 | 1 | |
Derivatives qualifying as hedges | 28 | 137 | (21) | 393 | |
Foreign currency translation and other adjustments | 29 | (18) | 97 | 68 | |
Total other comprehensive income (loss) | (13) | 828 | (24) | 1,954 | |
Total comprehensive income | 86 | 941 | 161 | 2,090 | |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Total comprehensive income available to Genworth Financial, Inc.'s common stockholders | 86 | 941 | 161 | 2,090 | |
Reportable Legal Entities | All Other Subsidiaries | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income | 326 | 302 | 596 | 559 | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (71) | 743 | (84) | 1,552 | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 6 | 1 | 2 | |
Derivatives qualifying as hedges | 32 | 149 | (20) | 424 | |
Foreign currency translation and other adjustments | 61 | 7 | 180 | 224 | |
Total other comprehensive income (loss) | 22 | 905 | 77 | 2,202 | |
Total comprehensive income | 348 | 1,207 | 673 | 2,761 | |
Less: comprehensive income attributable to noncontrolling interests | 87 | 40 | 205 | 196 | |
Total comprehensive income available to Genworth Financial, Inc.'s common stockholders | 261 | 1,167 | 468 | 2,565 | |
Eliminations | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Net income | (356) | (367) | (651) | (592) | |
Other comprehensive income (loss), net of taxes: | |||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 132 | (1,428) | 184 | (3,026) | |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | (12) | (2) | (3) | |
Derivatives qualifying as hedges | (60) | (286) | 41 | (817) | |
Foreign currency translation and other adjustments | (63) | (15) | (201) | (217) | |
Total other comprehensive income (loss) | 9 | (1,741) | 22 | (4,063) | |
Total comprehensive income | (347) | (2,108) | (629) | (4,655) | |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Total comprehensive income available to Genworth Financial, Inc.'s common stockholders | $ (347) | $ (2,108) | $ (629) | $ (4,655) | |
[1] | See note 5 for additional information. |
Condensed Consolidating State91
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||||
Net income | $ 271 | $ 220 | $ 487 | $ 328 |
Less loss from discontinued operations, net of taxes | 0 | 21 | 0 | 40 |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Equity in income from subsidiaries | 0 | 0 | 0 | 0 |
Dividends from subsidiaries | 0 | 0 | ||
(Gain) loss on sale of businesses | 0 | (26) | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (76) | (67) | ||
Net investment (gains) losses | (101) | (30) | (135) | (11) |
Charges assessed to policyholders | (365) | (384) | ||
Acquisition costs deferred | (44) | (91) | ||
Amortization of deferred acquisition costs and intangibles | 233 | 211 | ||
Deferred income taxes | 166 | 4 | ||
Trading securities, held-for-sale investments and derivative instruments | 431 | 743 | ||
Stock-based compensation expense | 18 | 16 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (23) | (186) | ||
Insurance reserves | 806 | 332 | ||
Current tax liabilities | (32) | 56 | ||
Other liabilities, policy and contract claims and other policy-related balances | (158) | 101 | ||
Net cash from operating activities | 1,308 | 1,066 | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 2,358 | 1,680 | ||
Commercial mortgage loans | 307 | 364 | ||
Restricted commercial mortgage loans related to securitization entities | 11 | 20 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 2,587 | 2,772 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | (4,733) | (5,685) | ||
Commercial mortgage loans | (431) | (317) | ||
Other invested assets, net | (638) | (67) | ||
Policy loans, net | 21 | (90) | ||
Intercompany notes receivable | 0 | 0 | ||
Proceeds from sale of businesses, net of cash transferred | 0 | 39 | ||
Capital contributions to subsidiaries | 0 | |||
Payments for business purchased, net of cash acquired | (5) | 0 | ||
Net cash used by investing activities | (523) | (1,284) | ||
Cash flows used by financing activities: | ||||
Deposits to universal life and investment contracts | 429 | 810 | ||
Withdrawals from universal life and investment contracts | (1,091) | (1,021) | ||
Redemption of non-recourse funding obligations | 0 | (1,620) | ||
Repayment and repurchase of long-term debt | 0 | (362) | ||
Repayment of borrowings related to securitization entities | (12) | (30) | ||
Return of capital to noncontrolling interests | 0 | (70) | ||
Dividends paid to noncontrolling interests | (52) | (64) | ||
Proceeds from intercompany notes payable | 0 | 0 | ||
Other, net | (29) | 9 | ||
Net cash used by financing activities | (755) | (2,348) | ||
Effect of exchange rate changes on cash and cash equivalents | 39 | 30 | ||
Net change in cash and cash equivalents | 69 | (2,536) | ||
Cash and cash equivalents at beginning of period | 2,784 | 5,993 | ||
Cash and cash equivalents at end of period | 2,853 | 3,457 | 2,853 | 3,457 |
Reportable Legal Entities | Parent Guarantor | ||||
Cash flows from operating activities: | ||||
Net income | 202 | 172 | 357 | 225 |
Less loss from discontinued operations, net of taxes | 0 | 2 | 0 | 2 |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Equity in income from subsidiaries | (211) | (188) | (383) | (307) |
Dividends from subsidiaries | 0 | 0 | ||
(Gain) loss on sale of businesses | 0 | |||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 | ||
Net investment (gains) losses | 0 | 0 | 0 | 0 |
Charges assessed to policyholders | 0 | 0 | ||
Acquisition costs deferred | 0 | 0 | ||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | ||
Deferred income taxes | 6 | (9) | ||
Trading securities, held-for-sale investments and derivative instruments | 0 | 0 | ||
Stock-based compensation expense | 14 | 12 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (6) | 3 | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | (4) | 0 | ||
Other liabilities, policy and contract claims and other policy-related balances | (9) | (2) | ||
Net cash from operating activities | (25) | (76) | ||
Cash flows used by 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 | 0 | 0 | ||
Proceeds from sale of businesses, net of cash transferred | 0 | |||
Capital contributions to subsidiaries | (7) | |||
Payments for business purchased, net of cash acquired | (7) | |||
Net cash used by investing activities | (14) | 0 | ||
Cash flows used by 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 | |||
Repayment and repurchase of long-term debt | 0 | |||
Repayment of borrowings related to securitization entities | 0 | 0 | ||
Return of capital to noncontrolling interests | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Proceeds from intercompany notes payable | 40 | 76 | ||
Other, net | (1) | 0 | ||
Net cash used by financing activities | 39 | 76 | ||
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 |
Reportable Legal Entities | Issuer | ||||
Cash flows from operating activities: | ||||
Net income | 99 | 113 | 185 | 136 |
Less loss from discontinued operations, net of taxes | 0 | 18 | 0 | 18 |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Equity in income from subsidiaries | (145) | (179) | (268) | (285) |
Dividends from subsidiaries | 64 | 178 | ||
(Gain) loss on sale of businesses | 1 | |||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 3 | 2 | ||
Net investment (gains) losses | 5 | (2) | 8 | 13 |
Charges assessed to policyholders | 0 | 0 | ||
Acquisition costs deferred | 0 | 0 | ||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | ||
Deferred income taxes | (14) | 116 | ||
Trading securities, held-for-sale investments and derivative instruments | 1 | 6 | ||
Stock-based compensation expense | 0 | 0 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (30) | (139) | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | (88) | (147) | ||
Other liabilities, policy and contract claims and other policy-related balances | 64 | 115 | ||
Net cash from operating activities | (75) | 14 | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 0 | 150 | ||
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 | (46) | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Other invested assets, net | 0 | 0 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | (51) | (84) | ||
Proceeds from sale of businesses, net of cash transferred | 1 | |||
Capital contributions to subsidiaries | 0 | |||
Payments for business purchased, net of cash acquired | 0 | |||
Net cash used by investing activities | (97) | 67 | ||
Cash flows used by 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 | |||
Repayment and repurchase of long-term debt | (326) | |||
Repayment of borrowings related to securitization entities | 0 | 0 | ||
Return of capital to noncontrolling interests | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Proceeds from intercompany notes payable | (47) | (21) | ||
Other, net | (21) | (24) | ||
Net cash used by financing activities | (68) | (371) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | (240) | (290) | ||
Cash and cash equivalents at beginning of period | 998 | 1,124 | ||
Cash and cash equivalents at end of period | 758 | 834 | 758 | 834 |
Reportable Legal Entities | All Other Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net income | 326 | 302 | 596 | 559 |
Less loss from discontinued operations, net of taxes | 0 | 1 | 0 | 20 |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Equity in income from subsidiaries | 0 | 0 | 0 | 0 |
Dividends from subsidiaries | (64) | (178) | ||
(Gain) loss on sale of businesses | (27) | |||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (79) | (69) | ||
Net investment (gains) losses | (106) | (28) | (143) | (24) |
Charges assessed to policyholders | (365) | (384) | ||
Acquisition costs deferred | (44) | (91) | ||
Amortization of deferred acquisition costs and intangibles | 233 | 211 | ||
Deferred income taxes | 174 | (103) | ||
Trading securities, held-for-sale investments and derivative instruments | 430 | 737 | ||
Stock-based compensation expense | 4 | 4 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | 12 | (49) | ||
Insurance reserves | 806 | 332 | ||
Current tax liabilities | 60 | 203 | ||
Other liabilities, policy and contract claims and other policy-related balances | (210) | (7) | ||
Net cash from operating activities | 1,410 | 1,134 | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 2,358 | 1,530 | ||
Commercial mortgage loans | 307 | 364 | ||
Restricted commercial mortgage loans related to securitization entities | 11 | 20 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 2,587 | 2,772 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | (4,687) | (5,685) | ||
Commercial mortgage loans | (431) | (317) | ||
Other invested assets, net | (640) | (73) | ||
Policy loans, net | 21 | (90) | ||
Intercompany notes receivable | 47 | 21 | ||
Proceeds from sale of businesses, net of cash transferred | 38 | |||
Capital contributions to subsidiaries | 7 | |||
Payments for business purchased, net of cash acquired | 2 | |||
Net cash used by investing activities | (418) | (1,420) | ||
Cash flows used by financing activities: | ||||
Deposits to universal life and investment contracts | 429 | 810 | ||
Withdrawals from universal life and investment contracts | (1,091) | (1,021) | ||
Redemption of non-recourse funding obligations | (1,620) | |||
Repayment and repurchase of long-term debt | (36) | |||
Repayment of borrowings related to securitization entities | (12) | (30) | ||
Return of capital to noncontrolling interests | (70) | |||
Dividends paid to noncontrolling interests | (52) | (64) | ||
Proceeds from intercompany notes payable | 11 | 8 | ||
Other, net | (7) | 33 | ||
Net cash used by financing activities | (722) | (1,990) | ||
Effect of exchange rate changes on cash and cash equivalents | 39 | 30 | ||
Net change in cash and cash equivalents | 309 | (2,246) | ||
Cash and cash equivalents at beginning of period | 1,786 | 4,869 | ||
Cash and cash equivalents at end of period | 2,095 | 2,623 | 2,095 | 2,623 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net income | (356) | (367) | (651) | (592) |
Less loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Adjustments to reconcile net income to net cash from operating activities: | ||||
Equity in income from subsidiaries | 356 | 367 | 651 | 592 |
Dividends from subsidiaries | 0 | 0 | ||
(Gain) loss on sale of businesses | 0 | |||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 | ||
Net investment (gains) losses | 0 | 0 | 0 | 0 |
Charges assessed to policyholders | 0 | 0 | ||
Acquisition costs deferred | 0 | 0 | ||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
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 | 1 | (1) | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | 0 | 0 | ||
Other liabilities, policy and contract claims and other policy-related balances | (3) | (5) | ||
Net cash from operating activities | (2) | (6) | ||
Cash flows used by 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 | 6 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | 4 | 63 | ||
Proceeds from sale of businesses, net of cash transferred | 0 | |||
Capital contributions to subsidiaries | 0 | |||
Payments for business purchased, net of cash acquired | 0 | |||
Net cash used by investing activities | 6 | 69 | ||
Cash flows used by 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 | |||
Repayment and repurchase of long-term debt | 0 | |||
Repayment of borrowings related to securitization entities | 0 | 0 | ||
Return of capital to noncontrolling interests | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | ||
Proceeds from intercompany notes payable | (4) | (63) | ||
Other, net | 0 | 0 | ||
Net cash used by financing activities | (4) | (63) | ||
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 |
Condensed Consolidating Finan92
Condensed Consolidating Financial Information - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||
Amount of dividend our subsidiaries could pay in 2017 without obtaining regulatory approval | $ 220 | |
Genworth Financial's Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Restricted net assets | $ 12,900 | |
Genworth Holdings' Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Restricted net assets | $ 12,300 |