Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 26, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | GNW | |
Entity Registrant Name | GENWORTH FINANCIAL INC | |
Entity Central Index Key | 1,276,520 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 499,158,848 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturity securities available-for-sale, at fair value | $ 62,552 | $ 60,572 |
Equity securities available-for-sale, at fair value | 765 | 632 |
Commercial mortgage loans | 6,268 | 6,111 |
Restricted commercial mortgage loans related to securitization entities | 111 | 129 |
Policy loans | 1,818 | 1,742 |
Other invested assets | 1,590 | 2,071 |
Restricted other invested assets related to securitization entities, at fair value | 0 | 312 |
Total investments | 73,104 | 71,569 |
Cash and cash equivalents | 2,836 | 2,784 |
Accrued investment income | 639 | 659 |
Deferred acquisition costs | 2,342 | 3,571 |
Intangible assets and goodwill | 315 | 348 |
Reinsurance recoverable | 17,553 | 17,755 |
Other assets | 552 | 673 |
Deferred tax asset | 24 | 0 |
Separate account assets | 7,264 | 7,299 |
Total assets | 104,629 | 104,658 |
Liabilities and equity | ||
Future policy benefits | 38,022 | 37,063 |
Policyholder account balances | 24,531 | 25,662 |
Liability for policy and contract claims | 9,384 | 9,256 |
Unearned premiums | 3,512 | 3,378 |
Other liabilities ($1 of other liabilities are related to securitization entities in each period) | 2,002 | 2,916 |
Borrowings related to securitization entities ($12 are carried at fair value in each period) | 59 | 74 |
Non-recourse funding obligations | 310 | 310 |
Long-term borrowings | 4,224 | 4,180 |
Deferred tax liability | 234 | 53 |
Separate account liabilities | 7,264 | 7,299 |
Total liabilities | 89,542 | 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 September 30, 2017 and December 31, 2016, respectively; 499 million and 498 million shares outstanding as of September 30, 2017 and December 31, 2016, respectively | 1 | 1 |
Additional paid-in capital | 11,973 | 11,962 |
Net unrealized investment gains (losses): | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,098 | 1,253 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 10 | 9 |
Net unrealized investment gains (losses) | 1,108 | 1,262 |
Derivatives qualifying as hedges | 2,052 | 2,085 |
Foreign currency translation and other adjustments | (125) | (253) |
Total accumulated other comprehensive income (loss) | 3,035 | 3,094 |
Retained earnings | 760 | 287 |
Treasury stock, at cost (88 million shares as of September 30, 2017 and December 31, 2016) | (2,700) | (2,700) |
Total Genworth Financial, Inc.'s stockholders' equity | 13,069 | 12,644 |
Noncontrolling interests | 2,018 | 1,823 |
Total equity | 15,087 | 14,467 |
Total liabilities and equity | $ 104,629 | $ 104,658 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Other liabilities, securitization entities | $ 1 | $ 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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Revenues: | |||||
Premiums | $ 1,135 | $ 1,108 | $ 3,382 | $ 3,029 | |
Net investment income | 797 | 805 | 2,388 | 2,373 | |
Net investment gains (losses) | 85 | 20 | 220 | 31 | |
Policy fees and other income | 198 | 217 | 619 | 738 | |
Total revenues | 2,215 | 2,150 | 6,609 | 6,171 | |
Benefits and expenses: | |||||
Benefits and other changes in policy reserves | 1,344 | 1,662 | 3,796 | 3,715 | |
Interest credited | 164 | 173 | 494 | 523 | |
Acquisition and operating expenses, net of deferrals | 265 | 269 | 775 | 990 | |
Amortization of deferred acquisition costs and intangibles | 83 | 94 | 316 | 305 | |
Interest expense | 73 | 77 | 209 | 262 | |
Total benefits and expenses | 1,929 | 2,275 | 5,590 | 5,795 | |
Income (loss) from continuing operations before income taxes | 286 | (125) | 1,019 | 376 | |
Provision for income taxes | 102 | 222 | 348 | 355 | |
Income (loss) from continuing operations | 184 | (347) | 671 | 21 | |
Income (loss) from discontinued operations, net of taxes | (9) | 15 | (9) | (25) | |
Net income (loss) | 175 | (332) | 662 | (4) | |
Less: net income attributable to noncontrolling interests | 68 | 48 | 198 | 151 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 107 | $ (380) | $ 464 | $ (155) | |
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | |||||
Basic | $ 0.23 | $ (0.79) | $ 0.95 | $ (0.26) | |
Diluted | 0.23 | (0.79) | 0.94 | (0.26) | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: | |||||
Basic | 0.21 | (0.76) | 0.93 | (0.31) | |
Diluted | $ 0.21 | $ (0.76) | $ 0.93 | $ (0.31) | |
Weighted-average common shares outstanding: | |||||
Basic | 499.1 | 498.3 | 498.9 | 498.3 | |
Diluted | [1] | 501.6 | 498.3 | 501.2 | 498.3 |
Supplemental disclosures: | |||||
Total other-than-temporary impairments | $ (1) | $ (2) | $ (4) | $ (35) | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Net other-than-temporary impairments | (1) | (2) | (4) | (35) | |
Other investments gains (losses) | 86 | 22 | 224 | 66 | |
Net investment gains (losses) | $ 85 | $ 20 | $ 220 | $ 31 | |
[1] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income (loss) | $ 175 | $ (332) | $ 662 | $ (4) |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (89) | 72 | (173) | 1,624 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 5 | 1 | 6 |
Derivatives qualifying as hedges | (12) | 54 | (33) | 448 |
Foreign currency translation and other adjustments | 81 | (1) | 261 | 223 |
Total other comprehensive income (loss) | (20) | 130 | 56 | 2,301 |
Total comprehensive income (loss) | 155 | (202) | 718 | 2,297 |
Less: comprehensive income attributable to noncontrolling interests | 108 | 64 | 313 | 260 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 47 | $ (266) | $ 405 | $ 2,037 |
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 (loss): | ||||||||
Net income | (4) | (155) | (155) | 151 | ||||
Other comprehensive income (loss) net of taxes | 2,301 | 2,192 | 2,192 | 109 | ||||
Total comprehensive income (loss) | 2,297 | 2,037 | 260 | |||||
Dividends to noncontrolling interests | (126) | (126) | ||||||
Stock-based compensation expense and exercises and other | 11 | 10 | 10 | 1 | ||||
Balances at Sep. 30, 2016 | 16,749 | 1 | 11,959 | 5,202 | 409 | (2,700) | 14,871 | 1,878 |
Balances at Jun. 30, 2016 | 5,088 | |||||||
Comprehensive income (loss): | ||||||||
Net income | (332) | |||||||
Other comprehensive income (loss) net of taxes | 130 | |||||||
Total comprehensive income (loss) | (202) | |||||||
Balances at Sep. 30, 2016 | 16,749 | 1 | 11,959 | 5,202 | 409 | (2,700) | 14,871 | 1,878 |
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 | |||||
Repurchase of subsidiary shares | (31) | (31) | ||||||
Comprehensive income (loss): | ||||||||
Net income | 662 | 464 | 464 | 198 | ||||
Other comprehensive income (loss) net of taxes | 56 | (59) | (59) | 115 | ||||
Total comprehensive income (loss) | 718 | 405 | 313 | |||||
Dividends to noncontrolling interests | (92) | (92) | ||||||
Stock-based compensation expense and exercises and other | 16 | 11 | 11 | 5 | ||||
Balances at Sep. 30, 2017 | 15,087 | 1 | 11,973 | 3,035 | 760 | (2,700) | 13,069 | 2,018 |
Balances at Jun. 30, 2017 | 3,095 | |||||||
Comprehensive income (loss): | ||||||||
Net income | 175 | |||||||
Other comprehensive income (loss) net of taxes | (20) | |||||||
Total comprehensive income (loss) | 155 | |||||||
Balances at Sep. 30, 2017 | $ 15,087 | $ 1 | $ 11,973 | $ 3,035 | $ 760 | $ (2,700) | $ 13,069 | $ 2,018 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 662 | $ (4) |
Less loss from discontinued operations, net of taxes | 9 | 25 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||
Gain on sale of business | 0 | (26) |
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (107) | (112) |
Net investment gains | (220) | (31) |
Charges assessed to policyholders | (534) | (574) |
Acquisition costs deferred | (67) | (124) |
Amortization of deferred acquisition costs and intangibles | 316 | 305 |
Deferred income taxes | 234 | 173 |
Trading securities, held-for-sale investments and derivative instruments | 716 | 759 |
Stock-based compensation expense | 29 | 25 |
Change in certain assets and liabilities: | ||
Accrued investment income and other assets | (21) | (258) |
Insurance reserves | 1,202 | 691 |
Current tax liabilities | (27) | 44 |
Other liabilities, policy and contract claims and other policy-related balances | (260) | 905 |
Net cash from operating activities | 1,932 | 1,798 |
Cash flows used by investing activities: | ||
Fixed maturity securities | 3,396 | 2,646 |
Commercial mortgage loans | 454 | 555 |
Restricted commercial mortgage loans related to securitization entities | 18 | 27 |
Proceeds from sales of investments: | ||
Fixed maturity and equity securities | 3,269 | 4,064 |
Purchases and originations of investments: | ||
Fixed maturity and equity securities | (6,709) | (8,758) |
Commercial mortgage loans | (608) | (405) |
Other invested assets, net | (521) | (138) |
Policy loans, net | 28 | (80) |
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 | (678) | (2,050) |
Cash flows used by financing activities: | ||
Deposits to universal life and investment contracts | 902 | 1,028 |
Withdrawals from universal life and investment contracts | (2,003) | (1,463) |
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 | (16) | (37) |
Repurchase of subsidiary shares | (31) | 0 |
Return of capital to noncontrolling interests | 0 | (70) |
Dividends paid to noncontrolling interests | (92) | (126) |
Other, net | (30) | (49) |
Net cash used by financing activities | (1,270) | (2,699) |
Effect of exchange rate changes on cash and cash equivalents | 68 | 36 |
Net change in cash and cash equivalents | 52 | (2,915) |
Cash and cash equivalents at beginning of period | 2,784 | 5,993 |
Cash and cash equivalents at end of period | $ 2,836 | $ 3,078 |
Formation of Genworth and Basis
Formation of Genworth and Basis of Presentation | 9 Months Ended |
Sep. 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. non-strategic non-strategic 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. |
Accounting Changes
Accounting Changes | 9 Months Ended |
Sep. 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 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 August 2017, the Financial Accounting Standards Board (“the FASB”) issued new guidance intended to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating adopting this new guidance early and the impact it may have on our consolidated financial statements. In May 2017, 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. In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to the current financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, will be measured at fair value with changes in fair value recognized in net income (loss). As of September 30, 2017, we have approximately $45 million of cumulative unrealized gains related to equity securities included in accumulated other comprehensive income as well as approximately $25 million of gains related to limited partnership investments currently recorded at cost, that will be reclassed to cumulative effect of change in accounting within retained earnings upon adoption of this new accounting guidance. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings (Loss) Per Share | (3) Earnings (Loss) Per Share Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated: Three months Nine months (Amounts in millions, except per share amounts) 2017 2016 2017 2016 Weighted-average shares used in basic earnings (loss) per share calculations 499.1 498.3 498.9 498.3 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 2.5 — 2.3 — Weighted-average shares used in diluted earnings (loss) per share calculations (1) 501.6 498.3 501.2 498.3 Income (loss) from continuing operations: Income (loss) from continuing operations $ 184 $ (347 ) $ 671 $ 21 Less: income from continuing operations attributable to noncontrolling interests 68 48 198 151 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 116 $ (395 ) $ 473 $ (130 ) Basic per share $ 0.23 $ (0.79 ) $ 0.95 $ (0.26 ) Diluted per share $ 0.23 $ (0.79 ) $ 0.94 $ (0.26 ) Income (loss) from discontinued operations: Income (loss) from discontinued operations, net of taxes $ (9 ) $ 15 $ (9 ) $ (25 ) Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — — — Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ (9 ) $ 15 $ (9 ) $ (25 ) Basic per share $ (0.02 ) $ 0.03 $ (0.02 ) $ (0.05 ) Diluted per share $ (0.02 ) $ 0.03 $ (0.02 ) $ (0.05 ) Net income (loss): Income (loss) from continuing operations $ 184 $ (347 ) $ 671 $ 21 Income (loss) from discontinued operations, net of taxes (9 ) 15 (9 ) (25 ) Net income (loss) 175 (332 ) 662 (4 ) Less: net income attributable to noncontrolling interests 68 48 198 151 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 107 $ (380 ) $ 464 $ (155 ) Basic per share $ 0.21 $ (0.76 ) $ 0.93 $ (0.31 ) Diluted per share $ 0.21 $ (0.76 ) $ 0.93 $ (0.31 ) (1) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Investments | (4) Investments (a) Net Investment Income Sources of net investment income were as follows for the periods indicated: Three months Nine months (Amounts in millions) 2017 2016 2017 2016 Fixed maturity securities—taxable $ 640 $ 655 $ 1,930 1,930 Fixed maturity securities—non-taxable 3 3 9 9 Commercial mortgage loans 78 79 231 237 Restricted commercial mortgage loans related to securitization entities 3 3 7 8 Equity securities 9 8 26 20 Other invested assets 39 34 106 105 Restricted other invested assets related to securitization entities — — 1 3 Policy loans 39 38 120 107 Cash, cash equivalents and short-term investments 10 5 26 16 Gross investment income before expenses and fees 821 825 2,456 2,435 Expenses and fees (24 ) (20 ) (68 ) (62 ) Net investment income $ 797 $ 805 $ 2,388 $ 2,373 (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the periods indicated: Three months Nine months (Amounts in millions) 2017 2016 2017 2016 Available-for-sale Realized gains $ 40 $ 39 $ 177 $ 205 Realized losses (10 ) (24 ) (55 ) (75 ) Net realized gains (losses) on available-for-sale 30 15 122 130 Impairments: Total other-than-temporary impairments (1 ) (2 ) (4 ) (35 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — — Net other-than-temporary impairments (1 ) (2 ) (4 ) (35 ) Trading securities — (4 ) 1 40 Commercial mortgage loans 1 (1 ) 3 1 Net gains (losses) related to securitization entities 1 2 5 (51 ) Derivative instruments (1) 54 10 93 (52 ) Contingent consideration adjustment — — — (2 ) Net investment gains (losses) $ 85 $ 20 $ 220 $ 31 (1) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). We generally intend to hold securities in unrealized loss positions until they recover. However, from time to time, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, we sell securities in the ordinary course of managing our portfolio to meet diversification, credit quality, yield and liquidity requirements. If a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we determined that we have the intent to sell the securities or it is more likely than not that we will be required to sell the securities prior to recovery. The aggregate fair value of securities sold at a loss during the three months ended September 30, 2017 and 2016 was $286 million and $293 million, respectively, which was approximately 97% and 95%, respectively, of book value. The aggregate fair value of securities sold at a loss during the nine months ended September 30, 2017 and 2016 was $1,390 million and $833 million, respectively, which was approximately 96% and 93%, respectively, of book value. The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (loss) (“OCI”) as of and for the periods indicated: As of or for the three months As of or for the (Amounts in millions) 2017 2016 2017 2016 Beginning balance $ 38 $ 62 $ 42 $ 64 Additions: Other-than-temporary impairments not previously recognized — — — 1 Reductions: Securities sold, paid down or disposed (5 ) (8 ) (9 ) (11 ) Ending balance $ 33 $ 54 $ 33 $ 54 (c) Unrealized Investment Gains and Losses Net unrealized gains and losses on available-for-sale (Amounts in millions) September 30, 2017 December 31, 2016 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 4,878 $ 3,656 Equity securities 49 12 Subtotal (1) 4,927 3,668 Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (3,134 ) (1,611 ) Income taxes, net (619 ) (711 ) Net unrealized investment gains (losses) 1,174 1,346 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 66 84 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,108 $ 1,262 (1) Excludes foreign exchange. The change in net unrealized gains (losses) on available-for-sale As of or for the (Amounts in millions) 2017 2016 Beginning balance $ 1,180 $ 2,789 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (10 ) 228 Adjustment to deferred acquisition costs (1 ) (17 ) Adjustment to present value of future profits (3 ) 3 Adjustment to sales inducements — (6 ) Adjustment to benefit reserves (92 ) (81 ) Provision for income taxes 36 (41 ) Change in unrealized gains (losses) on investment securities (70 ) 86 Reclassification adjustments to net investment (gains) losses, net of taxes of $10 and $4 (19 ) (9 ) Change in net unrealized investment gains (losses) (89 ) 77 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (17 ) 6 Ending balance $ 1,108 $ 2,860 As of or for the (Amounts in millions) 2017 2016 Beginning balance $ 1,262 $ 1,254 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 1,377 3,584 Adjustment to deferred acquisition costs (1,047 ) (291 ) Adjustment to present value of future profits (36 ) (26 ) Adjustment to sales inducements (11 ) (46 ) Adjustment to benefit reserves (429 ) (612 ) Provision for income taxes 51 (917 ) Change in unrealized gains (losses) on investment securities (95 ) 1,692 Reclassification adjustments to net investment (gains) losses, net of taxes of $41 and $33 (77 ) (62 ) Change in net unrealized investment gains (losses) (172 ) 1,630 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (18 ) 24 Ending balance $ 1,108 $ 2,860 (d) Fixed Maturity and Equity Securities As of September 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 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 $ 4,893 $ 784 $ — $ (7 ) $ — $ 5,670 State and political subdivisions 2,639 247 — (26 ) — 2,860 Non-U.S. 2,143 107 — (24 ) — 2,226 U.S. corporate: Utilities 4,382 556 — (15 ) — 4,923 Energy 2,243 207 — (10 ) — 2,440 Finance and insurance 6,051 547 — (11 ) — 6,587 Consumer—non-cyclical 4,330 508 — (10 ) — 4,828 Technology and communications 2,558 193 — (11 ) — 2,740 Industrial 1,247 102 — (3 ) — 1,346 Capital goods 2,067 263 — (9 ) — 2,321 Consumer—cyclical 1,506 111 — (6 ) — 1,611 Transportation 1,188 124 — (6 ) — 1,306 Other 358 24 — (2 ) — 380 Total U.S. corporate 25,930 2,635 — (83 ) — 28,482 Non-U.S. Utilities 1,022 45 — (5 ) — 1,062 Energy 1,330 140 — (7 ) — 1,463 Finance and insurance 2,524 177 — (5 ) — 2,696 Consumer—non-cyclical 692 27 — (3 ) — 716 Technology and communications 945 71 — (2 ) — 1,014 Industrial 979 81 — (2 ) — 1,058 Capital goods 556 33 — (2 ) — 587 Consumer—cyclical 518 10 — (1 ) — 527 Transportation 650 71 — (3 ) — 718 Other 2,594 193 — (5 ) — 2,782 Total non-U.S. 11,810 848 — (35 ) — 12,623 Residential mortgage-backed 3,950 255 14 (10 ) — 4,209 Commercial mortgage-backed 3,346 105 2 (39 ) — 3,414 Other asset-backed 3,052 20 1 (5 ) — 3,068 Total fixed maturity securities 57,763 5,001 17 (229 ) — 62,552 Equity securities 720 59 — (14 ) — 765 Total available-for-sale $ 58,483 $ 5,060 $ 17 $ (243 ) $ — $ 63,317 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 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. 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. 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. 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 $ 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 September 30, 2017: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored $ 283 $ (6 ) 22 $ 31 $ (1 ) 4 $ 314 $ (7 ) 26 State and political subdivisions 213 (5 ) 45 230 (21 ) 23 443 (26 ) 68 Non-U.S. 922 (23 ) 36 24 (1 ) 14 946 (24 ) 50 U.S. corporate 2,335 (47 ) 333 766 (36 ) 106 3,101 (83 ) 439 Non-U.S. 1,562 (22 ) 222 261 (13 ) 36 1,823 (35 ) 258 Residential mortgage-backed 656 (9 ) 80 33 (1 ) 28 689 (10 ) 108 Commercial mortgage-backed 837 (25 ) 120 201 (14 ) 30 1,038 (39 ) 150 Other asset-backed 736 (4 ) 131 173 (1 ) 40 909 (5 ) 171 Subtotal, fixed maturity 7,544 (141 ) 989 1,719 (88 ) 281 9,263 (229 ) 1,270 Equity securities 82 (5 ) 142 111 (9 ) 89 193 (14 ) 231 Total for securities in an unrealized $ 7,626 $ (146 ) 1,131 $ 1,830 $ (97 ) 370 $ 9,456 $ (243 ) 1,501 % Below cost—fixed maturity <20% Below cost $ 7,544 $ (141 ) 989 $ 1,719 $ (88 ) 281 $ 9,263 $ (229 ) 1,270 Total fixed maturity securities 7,544 (141 ) 989 1,719 (88 ) 281 9,263 (229 ) 1,270 % Below cost—equity securities: <20% Below cost 79 (4 ) 139 111 (9 ) 89 190 (13 ) 228 20%-50% 3 (1 ) 3 — — — 3 (1 ) 3 Total equity securities 82 (5 ) 142 111 (9 ) 89 193 (14 ) 231 Total for securities in an unrealized $ 7,626 $ (146 ) 1,131 $ 1,830 $ (97 ) 370 $ 9,456 $ (243 ) 1,501 Investment grade $ 7,437 $ (139 ) 984 $ 1,656 $ (90 ) 287 $ 9,093 $ (229 ) 1,271 Below investment grade 189 (7 ) 147 174 (7 ) 83 363 (14 ) 230 Total for securities in an unrealized $ 7,626 $ (146 ) 1,131 $ 1,830 $ (97 ) 370 $ 9,456 $ (243 ) 1,501 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of September 30, 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 $ 468 $ (10 ) 69 $ 104 $ (5 ) 17 $ 572 $ (15 ) 86 Energy 123 (1 ) 22 146 (9 ) 16 269 (10 ) 38 Finance and insurance 542 (7 ) 75 154 (4 ) 21 696 (11 ) 96 Consumer—non-cyclical 325 (7 ) 50 84 (3 ) 12 409 (10 ) 62 Technology and communications 208 (4 ) 30 127 (7 ) 19 335 (11 ) 49 Industrial 55 (1 ) 12 56 (2 ) 8 111 (3 ) 20 Capital goods 274 (8 ) 31 8 (1 ) 2 282 (9 ) 33 Consumer—cyclical 127 (2 ) 18 70 (4 ) 9 197 (6 ) 27 Transportation 190 (5 ) 24 17 (1 ) 2 207 (6 ) 26 Other 23 (2 ) 2 — — — 23 (2 ) 2 Subtotal, U.S. corporate 2,335 (47 ) 333 766 (36 ) 106 3,101 (83 ) 439 Non-U.S. Utilities 227 (4 ) 31 19 (1 ) 2 246 (5 ) 33 Energy 142 (3 ) 21 69 (4 ) 11 211 (7 ) 32 Finance and insurance 324 (3 ) 49 50 (2 ) 9 374 (5 ) 58 Consumer—non-cyclical 131 (2 ) 16 34 (1 ) 4 165 (3 ) 20 Technology and communications 80 (1 ) 17 12 (1 ) 2 92 (2 ) 19 Industrial 67 (1 ) 10 11 (1 ) 2 78 (2 ) 12 Capital goods 34 (1 ) 6 34 (1 ) 3 68 (2 ) 9 Consumer—cyclical 101 (1 ) 15 — — — 101 (1 ) 15 Transportation 61 (1 ) 13 32 (2 ) 3 93 (3 ) 16 Other 395 (5 ) 44 — — — 395 (5 ) 44 Subtotal, non-U.S. 1,562 (22 ) 222 261 (13 ) 36 1,823 (35 ) 258 Total for corporate securities in an unrealized loss position $ 3,897 $ (69 ) 555 $ 1,027 $ (49 ) 142 $ 4,924 $ (118 ) 697 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 increase in interest rates, mostly concentrated in our corporate securities. For securities that have been in a continuous unrealized loss position for less than 12 months, the average fair value percentage below cost was approximately 2% as of September 30, 2017. Fixed Maturity Securities In A Continuous Unrealized Loss Position For 12 Months Or More Of the $88 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 “A” and approximately 92% of the unrealized losses were related to investment grade securities as of September 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 September 30, 2017. As of September 30, 2017, the company did not have any 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 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 securities Fair value Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored $ 1,074 $ (50 ) 37 $ — $ — — $ 1,074 $ (50 ) 37 State and political subdivisions 644 (32 ) 109 142 (18 ) 12 786 (50 ) 121 Non-U.S. 497 (18 ) 51 — — — 497 (18 ) 51 U.S. corporate 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. 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 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 $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 % Below cost—fixed maturity <20% Below cost $ 12,578 $ (435 ) 1,690 $ 1,543 $ (90 ) 267 $ 14,121 $ (525 ) 1,957 20%-50% — — — 80 (26 ) 8 80 (26 ) 8 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% 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 $ 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 $ 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 Fair Gross Number Fair Gross Number 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 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. 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. 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 September 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 $ 1,943 $ 1,966 Due after one year through five years 10,901 11,333 Due after five years through ten years 12,363 12,933 Due after ten years 22,208 25,629 Subtotal 47,415 51,861 Residential mortgage-backed 3,950 4,209 Commercial mortgage-backed 3,346 3,414 Other asset-backed 3,052 3,068 Total $ 57,763 $ 62,552 As of September 30, 2017, $12,426 million of our investments (excluding mortgage-backed and asset-backed securities) were subject to certain call provisions. As of September 30, 2017, securities issued by finance and insurance, utilities and consumer—non-cyclical As of September 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: September 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,220 35 % $ 2,178 36 % Industrial 1,608 26 1,533 25 Office 1,465 23 1,430 23 Apartments 489 8 455 7 Mixed use 222 4 245 4 Other 277 4 284 5 Subtotal 6,281 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,268 $ 6,111 September 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,620 26 % $ 1,546 25 % Pacific 1,600 26 1,567 27 Middle Atlantic 904 14 915 15 Mountain 556 9 554 9 West North Central 441 7 435 7 East North Central 386 6 388 6 West South Central 327 5 311 5 New England 237 4 206 3 East South Central 210 3 203 3 Subtotal 6,281 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,268 $ 6,111 The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: September 30, 2017 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,220 $ 2,220 Industrial — — — — 1,608 1,608 Office 6 — — 6 1,459 1,465 Apartments — — — — 489 489 Mixed use — — — — 222 222 Other — — — — 277 277 Total recorded investment $ 6 $ — $ — $ 6 $ 6,275 $ 6,281 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2016 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than 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 September 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. As of September 30, 2017, we had one commercial mortgage loan past due for less than 90 days on non-accrual non-accrual We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of September 30, 2017, none of our commercial mortgage loans were greater than 90 days past due. During the nine months ended September 30, 2017 and the year ended December 31, 2016, we modified or extended 7 and 16 commercial mortgage loans, respectively, with a total carrying value of $19 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 Nine months ended (Amounts in millions) 2017 2016 2017 2016 Allowance for credit losses: Beginning balance $ 10 $ 13 $ 12 $ 15 Charge-offs — — — (4 ) Recoveries — — — — Provision — — (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 $ 6,281 $ 6,032 $ 6,281 $ 6,032 Ending balance of individually impaired loans $ — $ 17 $ — $ 17 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,281 $ 6,015 $ 6,281 $ 6,015 As of September 30, 2017, we had no individually impaired commercial mortgage loans. As of September 30, 2016, we had individually impaired commercial mortgage loans included within the retail property type with a recorded investment of $5 million, an unpaid principal balance of $7 million, charge-offs of $2 million and an average recorded investment 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 loan-to-value loan-to-value one-time non-recurring The following tables set forth the loan-to-value September 30, 2017 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 933 $ 499 $ 788 $ — $ — $ 2,220 Industrial 747 356 503 2 — 1,608 Office 583 393 473 14 2 1,465 Apartments 236 105 143 5 — 489 Mixed use 101 59 62 — — 222 Other 68 29 180 — — 277 Total recorded investment $ 2,668 $ 1,441 $ 2,149 $ 21 $ 2 $ 6,281 % of total 43 % 23 % 34 % — % — % 100 % Weighted-average debt service coverage ratio 2.65 1.85 1.60 0.63 1.04 2.10 (1) Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value 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 The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated: September 30, 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 $ 43 $ 242 $ 298 $ 999 $ 638 $ 2,220 Industrial 24 63 180 679 662 1,608 Office 72 67 151 521 654 1,465 Apartments — 20 75 193 201 489 Mixed use 2 4 26 86 104 222 Other 1 149 15 72 40 277 Total recorded investment $ 142 $ 545 $ 745 $ 2,550 $ 2,299 $ 6,281 % of total 2 % 9 % 12 % 40 % 37 % 100 % Weighted-average loan-to-value 57 % 60 % 58 % 57 % 41 % 52 % December 31, 2016 (Amounts in millions) Less than 1.00 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 % As of September 30, 2017 and December 31, 2016, we did not have any floating rate commercial mortgage loans. (f) Restricted Commercial Mortgage Loans Related To Securitization Entities We have a consolidated securitization entity that holds commercial mortgage loans that are recorded as restricted commercial mortgage loans related to securitization entities. (g) Restricted Other Invested Assets Related To Securitization Entities We previously had consolidated securitization entities that held certain investments that were recorded as restricted other invested assets related to securitization entities. The consolidated securitization entities held certain investments as trading securities whereby the changes in fair value were recorded in current period income (loss). The trading securities comprised asset-backed securities, including highly rated bonds that were primarily backed by credit card receivables. In 2017, these trading securities were sold as we repositioned these assets in connection with the maturity of the associated liabilities. (h) Limited Partnerships or Similar Entities Investments in partnerships or similar entities are generally considered VIEs when the equity group lacks sufficient financial control. Generally, these investments are limited partner or non-managing |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 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 September 30, (5) December 31, Balance sheet classification September 30, (5) December 31, Derivatives designated as Cash flow hedges: Interest rate swaps Other invested $ 70 $ 237 Other liabilities $ 39 $ 203 Foreign currency swaps Other invested 2 4 Other liabilities — — Total cash flow hedges 72 241 39 203 Total derivatives 72 241 39 203 Derivatives not designated as Interest rate swaps Other invested — 359 Other liabilities — 146 Foreign currency swaps Other invested 10 — Other liabilities — 5 Credit default swaps related to Restricted other invested assets — — Other liabilities — 1 Equity index options Other 81 72 Other liabilities — — Financial futures Other — — Other liabilities — — Equity return swaps Other — 1 Other liabilities 2 1 Other foreign currency Other invested 98 35 Other liabilities 23 27 GMWB embedded derivatives Reinsurance recoverable (1) 14 16 Policyholder account balances (2) 257 303 Fixed index annuity embedded Other assets — — Policyholder account balances (3) 394 344 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (4) 14 11 Total derivatives not 203 483 690 838 Total derivatives $ 275 $ 724 $ 729 $ 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. (5) In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017. The fair value of derivative positions presented above was not offset by the respective collateral amounts retained or provided under these agreements. The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for GMWB, fixed index annuity embedded derivatives and indexed universal life embedded derivatives, the change between periods is best illustrated by the number of policies. The following tables represent activity associated with derivative instruments as of the dates indicated: (Notional in millions) Measurement December 31, Additions Maturities/ September 30, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,570 $ — $ (306 ) $ 11,264 Foreign currency swaps Notional 22 — — 22 Total cash flow hedges 11,592 — (306 ) 11,286 Total derivatives designated as hedges 11,592 — (306 ) 11,286 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — — 4,679 Foreign currency swaps Notional 201 95 (14 ) 282 Credit default swaps Notional 39 — — 39 Credit default swaps related to securitization entities Notional 312 — (200 ) 112 Equity index options Notional 2,396 1,584 (1,484 ) 2,496 Financial futures Notional 1,398 4,300 (4,376 ) 1,322 Equity return swaps Notional 165 186 (258 ) 93 Other foreign currency contracts Notional 3,130 2,163 (691 ) 4,602 Total derivatives not designated as hedges 12,320 8,328 (7,023 ) 13,625 Total derivatives $ 23,912 $ 8,328 $ (7,329 ) $ 24,911 (Number of policies) Measurement December 31, Additions Maturities/ September 30, Derivatives not designated as hedges GMWB embedded derivatives Policies 33,238 — (2,127 ) 31,111 Fixed index annuity embedded derivatives Policies 17,549 — (367 ) 17,182 Indexed universal life embedded derivatives Policies 1,074 1 (66 ) 1,009 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 (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) (1) Classification of Interest rate swaps hedging assets $ 17 $ 34 Net investment $ — Net investment Foreign currency swaps (1 ) — Net investment — Net investment Total $ 16 $ 34 $ — (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 (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) (1) Classification of Interest rate swaps hedging assets $ 115 $ 27 Net investment $ 2 Net investment Interest rate swaps hedging liabilities (2 ) — Interest — Net investment Foreign currency swaps (1 ) — Net investment — Net investment Total $ 112 $ 27 $ 2 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) (1) Classification of Interest rate swaps hedging assets $ 50 $ 95 Net investment $ — Net investment Interest rate swaps hedging assets — 2 Net investment — Net investment Interest rate swaps hedging liabilities (2 ) — Interest expense — Net investment Foreign currency swaps (2 ) — Net investment — Net investment Total $ 46 $ 97 $ — (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 (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) (1) Classification of Interest rate swaps hedging assets $ 839 $ 80 Net investment $ 13 Net investment Interest rate swaps hedging assets — 1 Net investment — Net investment Interest rate swaps hedging liabilities (52 ) — Interest expense — Net investment Inflation indexed swaps (5 ) 2 Net investment — Net investment Inflation indexed swaps — 7 Net investment — Net investment Foreign currency swaps (2 ) — Net investment — Net investment Total $ 780 $ 90 $ 13 (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 (Amounts in millions) 2017 2016 Derivatives qualifying as effective accounting hedges as of July 1 $ 2,064 $ 2,439 Current period increases (decreases) in fair value, net of deferred taxes of $(6) and $(40) 10 72 Reclassification to net (income), net of deferred taxes of $12 and $9 (22 ) (18 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,052 $ 2,493 Nine months (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 $(17) and $(273) 29 507 Reclassification to net (income), net of deferred taxes of $35 and $31 (62 ) (59 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,052 $ 2,493 The total of derivatives designated as cash flow hedges of $2,052 million, net of taxes, recorded in stockholders’ equity as of September 30, 2017 is expected to be reclassified to net income (loss) in the future, concurrently with and primarily offsetting changes in interest expense and interest income on floating rate instruments and interest income on future fixed rate bond purchases. Of this amount, $95 million, net of taxes, is expected to be reclassified to net income (loss) in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2057. During the nine months ended September 30, 2017, there was approximately $2 million reclassified to net income (loss) 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 non-functional 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 Three months Classification of gain (loss) in net income (loss) (Amounts in millions) 2017 2016 Interest rate swaps $ 1 $ (1 ) Net investment gains (losses) Credit default swaps related to securitization entities 2 2 Net investment gains (losses) Equity index options 16 9 Net investment gains (losses) Financial futures (17 ) (35 ) Net investment gains (losses) Equity return swaps (5 ) (9 ) Net investment gains (losses) Other foreign currency contracts 40 (2 ) Net investment gains (losses) Foreign currency swaps 8 (1 ) Net investment gains (losses) GMWB embedded derivatives 30 60 Net investment gains (losses) Fixed index annuity embedded derivatives (21 ) (16 ) Net investment gains (losses) Indexed universal life embedded derivatives 2 3 Net investment gains (losses) Total derivatives not designated as hedges $ 56 $ 10 Nine months Classification of gain (loss) in net income (loss) (Amounts in millions) 2017 2016 Interest rate swaps $ 2 $ 7 Net investment gains (losses) Interest rate swaps related to securitization entities — (10 ) Net investment gains (losses) Credit default swaps related to securitization entities 6 16 Net investment gains (losses) Equity index options 42 5 Net investment gains (losses) Financial futures (25 ) (9 ) Net investment gains (losses) Equity return swaps (19 ) (2 ) Net investment gains (losses) Other foreign currency contracts 66 (6 ) Net investment gains (losses) Foreign currency swaps 13 6 Net investment gains (losses) GMWB embedded derivatives 64 (58 ) Net investment gains (losses) Fixed index annuity embedded derivatives (57 ) (22 ) Net investment gains (losses) Indexed universal life embedded derivatives 5 6 Net investment gains (losses) Total derivatives not designated as hedges $ 97 $ (67 ) 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: September 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 $ 262 $ 66 $ 196 $ 724 $ 387 $ 337 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 262 66 196 724 387 337 Gross amounts not offset in the balance sheet: Financial instruments (3) (24 ) (24 ) — (172 ) (172 ) — Collateral received (164 ) — (164 ) (467 ) — (467 ) Collateral pledged — (301 ) 301 — (557 ) 557 Over collateralization 8 259 (251 ) 1 344 (343 ) Net amount $ 82 $ — $ 82 $ 86 $ 2 $ 84 (1) Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively. (2) Included $2 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 September 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 $82 million and $86 million as of September 30, 2017 and December 31, 2016, respectively, or have been required to disburse up to $2 million as of December 31, 2016. There were no amounts that we would have been required to disburse as of September 30, 2017 . The chart above excludes embedded derivatives and derivatives related to securitization entities as those derivatives are not subject to master netting arrangements. Credit Derivatives We sell protection under single name credit default swaps and credit default swap index tranches in combination with purchasing securities to replicate characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for both indexed reference entities and single name reference entities follow the Credit Derivatives Physical Settlement Matrix published by the International Swaps and Derivatives Association. Under these terms, credit default triggers are defined as bankruptcy, failure to pay or restructuring, if applicable. Our maximum exposure to credit loss equals the notional value for credit default swaps. In the event of default for credit default swaps, we are typically required to pay the protection holder the full notional value less a recovery rate determined at auction. In addition to the credit derivatives discussed above, we also have credit derivative instruments related to securitization entities that we consolidate. These derivatives represent a customized index of reference entities with specified attachment points for certain derivatives. The credit default triggers are similar to those described above. In the event of default, the securitization entity will provide the counterparty with the par value of assets held in the securitization entity for the amount of incurred loss on the credit default swap. The maximum exposure to loss for the securitization entity is the notional value of the derivatives. Certain losses on these credit default swaps would be absorbed by the third-party noteholders of the securitization entity and the remaining losses on the credit default swaps would be absorbed by our portion of the notes issued by the securitization entity. The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated: September 30, 2017 December 31, 2016 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Investment grade Matures in less than one year $ 39 $ — $ — $ — $ — $ — Matures after one year through five years — — — 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: September 30, 2017 December 31, 2016 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Customized credit default swap index tranches related Portion backing third-party borrowings maturing 2017 (1) $ 12 $ — $ — $ 12 $ — $ — Portion backing our interest maturing 2017 (2) 100 — 300 — 1 Total customized credit default swap index tranches related to securitization entities 112 — — 312 — 1 Total credit default swaps on index tranches $ 112 $ — $ — $ 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 | 9 Months Ended |
Sep. 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, short-term investments, 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 Borrowings related to securitization entities. Investment contracts. The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated: September 30, 2017 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,268 $ 6,550 $ — $ — $ 6,550 Restricted commercial mortgage loans (1) 111 122 — — 122 Other invested assets (1) 217 243 — — 243 Liabilities: Long-term borrowings (1) 4,224 3,742 — 3,583 159 Non-recourse (1) 310 195 — — 195 Borrowings related to securitization (1) 47 48 — 48 — Investment contracts (1) 15,163 15,705 — 5 15,700 Other firm commitments: Commitments to fund limited partnerships 319 — — — — — Ordinary course of business lending 61 — — — — — 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 (1) 310 186 — — 186 Borrowings related to securitization (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 73 — — — — — (1) These financial instruments do not have notional amounts. Recurring Fair Value Measurements We have fixed maturity, short-term investments, 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, short-term investments, equity and trading securities The fair value of fixed maturity, short-term investments, 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 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 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 pre-defined 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 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: 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 September 30, 2017: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 5,669 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 $ 2,816 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. $ 2,210 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer U.S. corporate $ 25,290 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based 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. $ 10,711 Multi-dimensional attribute-based modeling systems, OAS-based Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer Residential mortgage-backed $ 4,123 OAS-based 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 $ 3,392 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 $ 2,843 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: non-U.S. non-U.S. 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. Short-term Investments Short-term investments primarily include commercial paper and other highly liquid debt instruments and are classified as Level 2. We determine fair value after considering prices obtained by third-party pricing services. Level 3 measurements Fixed maturity securities • Internal models: non-U.S. • Broker quotes: non-U.S. Equity securities. Restricted other invested assets related to securitization entities We previously held trading securities related to securitization entities that were classified as restricted other invested assets and were carried at fair value. The trading securities represented asset-backed securities. In 2017, these trading securities were sold as we repositioned these assets in connection with the maturity of the associated liabilities. The valuation for trading securities was determined using a market approach and/or an income approach depending on the availability of information. For certain highly rated asset-backed securities, there was observable market information for transactions of the same or similar instruments, which was provided to us by a third-party pricing service and was classified as Level 2. For certain securities that are not actively traded, we determined fair value after considering third-party broker provided prices or discounted expected cash flows using current yields for similar securities and classified 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 non-performance non-performance To determine the appropriate discount rate to reflect the non-performance non-performance non-performance 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 non-performance 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 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 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 non-performance non-performance non-performance 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: September 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 $ 5,670 $ — $ 5,669 $ 1 State and political subdivisions 2,860 — 2,823 37 Non-U.S. 2,226 — 2,226 — U.S. corporate: Utilities 4,923 — 4,261 662 Energy 2,440 — 2,282 158 Finance and insurance 6,587 — 5,917 670 Consumer—non-cyclical 4,828 — 4,701 127 Technology and communications 2,740 — 2,688 52 Industrial 1,346 — 1,299 47 Capital goods 2,321 — 2,203 118 Consumer—cyclical 1,611 — 1,349 262 Transportation 1,306 — 1,245 61 Other 380 — 210 170 Total U.S. corporate 28,482 — 26,155 2,327 Non-U.S. Utilities 1,062 — 703 359 Energy 1,463 — 1,286 177 Finance and insurance 2,696 — 2,527 169 Consumer—non-cyclical 716 — 587 129 Technology and communications 1,014 — 985 29 Industrial 1,058 — 919 139 Capital goods 587 — 437 150 Consumer—cyclical 527 — 458 69 Transportation 718 — 537 181 Other 2,782 — 2,733 49 Total non-U.S. 12,623 — 11,172 1,451 Residential mortgage-backed 4,209 — 4,123 86 Commercial mortgage-backed 3,414 — 3,392 22 Other asset-backed 3,068 — 2,843 225 Total fixed maturity securities 62,552 — 58,403 4,149 Equity securities 765 644 77 44 Other invested assets: Derivative assets: Interest rate swaps 70 — 70 — Foreign currency swaps 12 — 12 — Equity index options 81 — — 81 Other foreign currency contracts 98 — 98 — Total derivative assets 261 — 180 81 Securities lending collateral 237 — 237 — Short-term investments 787 — 787 — Total other invested assets 1,285 — 1,204 81 Reinsurance recoverable (1) 14 — — 14 Separate account assets 7,264 7,264 — — Total assets $ 71,880 $ 7,908 $ 59,684 $ 4,288 (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. 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. 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. 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: (Amounts in millions) Beginning as of Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending as of Total gains in net attributable Included in net Included Fixed maturity securities: U.S. government, agencies $ 1 $ — $ — $ — $ — $ — $ — $ — $ — $ 1 $ — State and political subdivisions 37 1 (1 ) — — — — — — 37 1 U.S. corporate: Utilities 638 — — 26 — — (2 ) — — 662 — Energy 160 — — — — — (2 ) — — 158 — Finance and insurance 861 3 (52 ) 22 (14 ) — (157 ) 8 (1 ) 670 2 Consumer—non-cyclical 122 — 1 4 — — — — — 127 — Technology and 58 1 (3 ) — — — (1 ) — (3 ) 52 1 Industrial 61 — — — — — — — (14 ) 47 — Capital goods 118 1 — — — — (1 ) — — 118 1 Consumer—cyclical 266 — — — — — (2 ) — (2 ) 262 — Transportation 100 16 (10 ) — — — (45 ) — — 61 — Other 176 — — — (4 ) — (2 ) — — 170 — Total U.S. corporate 2,560 21 (64 ) 52 (18 ) — (212 ) 8 (20 ) 2,327 4 Non-U.S. Utilities 359 — — — — — — — — 359 — Energy 177 — 1 — — — (1 ) — — 177 — Finance and insurance 172 1 1 — — — (5 ) — — 169 — Consumer—non-cyclical 129 — — — — — — — — 129 — Technology and 48 1 1 — (21 ) — — — — 29 — Industrial 112 — — 13 — — — 14 — 139 — Capital goods 149 — 1 — — — — — — 150 — Consumer—cyclical 67 — — — — — — 2 — 69 — Transportation 190 — 1 — — — (10 ) — — 181 — Other 41 (2 ) 1 — (2 ) — — 11 — 49 — Total non-U.S. 1,444 — 6 13 (23 ) — (16 ) 27 — 1,451 — Residential mortgage-backed 73 — — 22 — — (1 ) — (8 ) 86 — Commercial mortgage-backed 52 (1 ) (2 ) 14 — — — — (41 ) 22 — Other asset-backed 150 (1 ) 1 52 — — (5 ) 44 (16 ) 225 — Total fixed maturity securities 4,317 20 (60 ) 153 (41 ) — (234 ) 79 (85 ) 4,149 5 Equity securities 48 — — — (1 ) — — — (3 ) 44 — Other invested assets: Derivative assets: Equity index options 81 16 — 15 — — (31 ) — — 81 13 Total derivative assets 81 16 — 15 — — (31 ) — — 81 13 Total other invested assets 81 16 — 15 — — (31 ) — — 81 13 Reinsurance recoverable (2) 15 (1 ) — — — — — — — 14 (1 ) Total Level 3 assets $ 4,461 $ 35 $ (60 ) $ 168 $ (42 ) $ — $ (265 ) $ 79 $ (88 ) $ 4,288 $ 17 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. (Amounts in millions) Beginning as of Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending as of Total gains attributable Included Included Fixed maturity securities: U.S. government, agencies $ 2 $ — $ — $ — $ — $ — $ — $ — $ — $ 2 $ — State and political subdivisions 36 1 — — — — — — (1 ) 36 1 U.S. corporate: Utilities 552 1 4 54 (6 ) — (1 ) 1 (43 ) 562 — Energy 208 — 3 — — — (8 ) — (1 ) 202 — Finance and insurance 775 4 14 27 (5 ) — (32 ) 37 — 820 5 Consumer—non-cyclical 102 — 1 5 (5 ) — — — — 103 — Technology and 40 1 — 12 — — — — — 53 1 Industrial 78 — — — — — — — — 78 — Capital goods 135 — 1 — — — — — — 136 1 Consumer—cyclical 254 — — 19 (5 ) — (1 ) 1 (3 ) 265 — Transportation 129 — 1 — — — (6 ) — — 124 — Other 147 — — — — — (1 ) 16 — 162 — Total U.S. corporate 2,420 6 24 117 (21 ) — (49 ) 55 (47 ) 2,505 7 Non-U.S. Utilities 331 — 1 52 (5 ) — — — (10 ) 369 — Energy 234 — 9 8 (9 ) — (17 ) — — 225 — Finance and insurance 201 — 3 11 (1 ) — — — — 214 — Consumer—non-cyclical 168 2 (1 ) 3 (3 ) — (37 ) 12 — 144 — Technology and 80 — 1 2 (2 ) — — — — 81 — Industrial 95 — 2 17 (17 ) — — 15 — 112 — Capital goods 212 1 (2 ) — — — (5 ) — (33 ) 173 1 Consumer—cyclical 71 — — — — — — — — 71 — Transportation 186 1 (1 ) — — — (14 ) 1 — 173 — Other 29 (2 ) 2 — (12 ) — — 10 — 27 (2 ) Total non-U.S. 1,607 2 14 93 (49 ) — (73 ) 38 (43 ) 1,589 (1 ) Residential mortgage-backed 96 — — — (45 ) — (8 ) 5 (11 ) 37 — Commercial mortgage-backed 33 — (3 ) — — — — — (2 ) 28 — Other asset-backed 198 (6 ) 7 — (5 ) — (5 ) 25 (64 ) 150 (6 ) Total fixed maturity securities 4,392 3 42 210 (120 ) — (135 ) 123 (168 ) 4,347 1 Equity securities 44 — — 2 — — — — — 46 — Other invested assets: Derivative assets: Equity index options 57 9 — 15 — — (20 ) — — 61 — Other foreign currency 1 — — — — — — — — 1 — Total derivative assets 58 9 — 15 — — (20 ) — — 62 — Total other invested assets 58 9 — 15 — — (20 ) — — 62 — Restricted other invested assets 131 — — — — — — — — 131 — Reinsurance recoverable (2) 26 (3 ) — — — 1 — — — 24 (3 ) Total Level 3 assets $ 4,651 $ 9 $ 42 $ 227 $ (120 ) $ 1 $ (155 ) $ 123 $ (168 ) $ 4,610 $ (2 ) (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: (Amounts in millions) Beginning January 1, Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending September 30, Total gains to assets Included Included Fixed maturity securities: U.S. government, agencies $ 2 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 1 $ — State and political subdivisions 37 2 (2 ) — — — — — — 37 2 U.S. corporate: Utilities 576 — 20 70 — — (4 ) 30 (30 ) 662 — Energy 210 (1 ) 6 — (10 ) — (32 ) 1 (16 ) 158 (1 ) Finance and insurance 786 11 (1 ) 75 (31 ) — (163 ) 8 (15 ) 670 10 Consumer—non-cyclical 121 — 2 4 — — — — — 127 — Technology and communications 54 2 3 14 — — (1 ) — (20 ) 52 2 Industrial 48 — — 13 — — — — (14 ) 47 — Capital goods 152 1 3 — — — (1 ) — (37 ) 118 1 Consumer—cyclical 258 — 9 2 — — (5 ) — (2 ) 262 — Transportation 139 17 (5 ) — — — (48 ) — (42 ) 61 1 Other 143 — 1 — (4 ) — (7 ) 37 — 170 — Total U.S. corporate 2,487 30 38 178 (45 ) — (261 ) 76 (176 ) 2,327 13 Non-U.S. Utilities 386 — 5 30 — — — — (62 ) 359 — Energy 206 — 6 — (1 ) — (1 ) — (33 ) 177 — Finance and insurance 182 4 9 4 — — (30 ) — — 169 2 Consumer—non-cyclical 139 — 2 — — — (12 ) — — 129 — Technology and communications 67 1 1 — (21 ) — (19 ) — — 29 — Industrial 109 — 3 13 — — — 14 — 139 — Capital goods 169 — 3 — — — (15 ) — (7 ) 150 — Consumer—cyclical 69 — — — — — (2 ) 2 — 69 — Transportation 181 — 4 6 — — (10 ) 11 (11 ) 181 — Other 25 (2 ) 2 15 (2 ) — — 11 — 49 — Total non-U.S. 1,533 3 35 68 (24 ) — (89 ) 38 (113 ) 1,451 2 Residential mortgage-backed 43 — 1 26 — — (2 ) 26 (8 ) |
Deferred Acquisition Costs
Deferred Acquisition Costs | 9 Months Ended |
Sep. 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 nine months (Amounts in millions) 2017 2016 Unamortized beginning balance $ 4,241 $ 4,569 Impact of foreign currency translation 12 8 Costs deferred 67 124 Amortization, net of interest accretion (261 ) (257 ) Unamortized ending balance 4,059 4,444 Accumulated effect of net unrealized investment (gains) losses (1,717 ) (462 ) Ending balance $ 2,342 $ 3,982 We regularly review DAC to determine if it is recoverable from future income. In 2017 and 2016, we performed loss recognition testing and determined that we had premium deficiencies 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 September 30, 2017 and 2016, we increased our future policy benefit reserves and recognized expenses of $31 million and $24 million, respectively. The premium deficiency test results were primarily driven by the low interest rate environment. As of September 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 available-for-sale |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 9 Months Ended |
Sep. 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 nine (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 2,748 2,569 Prior years (306 ) 320 Total incurred 2,442 2,889 Paid related to insured events of: Current year (755 ) (727 ) Prior years (1,746 ) (1,646 ) Total paid (2,501 ) (2,373 ) Interest on liability for policy and contract claims 223 188 Foreign currency translation 27 14 Net ending balance 7,038 6,691 Add reinsurance recoverables 2,346 2,178 Ending balance $ 9,384 $ 8,869 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 nine months ended September 30, 2017, the favorable development of $306 million related to insured events of prior years was primarily attributable to favorable claim terminations in our long-term care insurance business. Our mortgage insurance businesses also experienced favorable prior year claim development mostly from an improvement in net cures and aging of existing claims, as well as lower delinquencies and an improvement in the estimated claim severity or amount. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 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 Nine months ended September 30, (Amounts in millions) 2017 2016 2017 2016 Pre-tax $ 286 $ (125 ) $ 1,019 $ 376 Statutory U.S. federal income tax rate $ 100 35.0 % $ (44 ) 35.0 % $ 357 35.0 % $ 132 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect 1 0.1 — — (2 ) (0.2 ) 1 0.2 Tax favored investments 6 1.9 1 (0.7 ) 3 0.3 (2 ) (0.5 ) Effect of foreign operations (6 ) (2.0 ) 5 (3.9 ) (14 ) (1.3 ) (12 ) (3.3 ) Non-deductible — — (1 ) 0.5 1 0.1 (1 ) (0.1 ) Valuation allowance — — 265 (212.9 ) — — 240 63.8 Stock-based compensation 1 0.5 2 (1.8 ) 3 0.2 5 1.4 Loss on sale of business — — — — — — (1 ) (0.2 ) Other, net — — (6 ) 4.8 — — (7 ) (1.8 ) Effective rate $ 102 35.5 % $ 222 (179.0 )% $ 348 34.1 % $ 355 94.5 % The effective tax rate for the three and nine months ended September 30, 2017 was impacted by higher tax benefits from lower taxed foreign income. The effective tax rate for the three and nine months ended September 30, 2016 was impacted by a valuation allowance of $265 million recorded on deferred tax assets related to foreign tax credits that we no longer expect to realize. The effective tax rate for the nine months ended September 30, 2016 was also impacted by the reversal of a deferred tax valuation allowance related to our mortgage insurance business in Europe due to taxable gains supporting the recognition of these deferred tax assets in the prior year. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 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 We allocate our consolidated provision for income taxes to our operating segments. Our allocation methodology applies a specific tax rate to the pre-tax We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income (loss) and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of “adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders.” We define adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders as income (loss) from continuing operations excluding the after-tax non-operating non-recourse non-operating non-operating While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.’s common stockholders in accordance with U.S. GAAP, we believe that adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, and measures that are derived from or incorporate adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) 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 (loss) 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 (loss) available to Genworth Financial, Inc.’s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.’s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders may differ from the definitions used by other companies. Adjustments to reconcile net income (loss) attributable to Genworth Financial, Inc.’s common stockholders and adjusted operating income (loss) 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. We recorded a pre-tax In the third quarter of 2016, we recorded a pre-tax In the second quarter of 2016, we completed the sale of our mortgage insurance business in Europe and recorded an additional pre-tax pre-tax pre-tax pre-tax In the first quarter of 2016, we recorded a pre-tax pre-tax pre-tax pre-tax non-recourse pre-tax There were no infrequent or unusual items excluded from adjusted operating income (loss) 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 Nine months ended (Amounts in millions) 2017 2016 2017 2016 Revenues: U.S. Mortgage Insurance segment $ 194 $ 186 $ 570 $ 537 Canada Mortgage Insurance segment 220 156 593 463 Australia Mortgage Insurance segment 98 115 317 333 U.S. Life Insurance segment: Long-term care insurance 1,033 980 3,063 3,051 Life insurance 389 418 1,217 953 Fixed annuities 190 218 605 613 U.S. Life Insurance segment 1,612 1,616 4,885 4,617 Runoff segment 90 84 266 218 Corporate and Other activities 1 (7 ) (22 ) 3 Total revenues $ 2,215 $ 2,150 $ 6,609 $ 6,171 The increase in total revenues for the nine months ended September 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 (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2017 2016 2017 2016 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 107 $ (380 ) $ 464 $ (155 ) Add: net income attributable to noncontrolling interests 68 48 198 151 Net income (loss) 175 (332 ) 662 (4 ) Income (loss) from discontinued operations, net of taxes (9 ) 15 (9 ) (25 ) Income (loss) from continuing operations 184 (347 ) 671 21 Less: income from continuing operations attributable to noncontrolling interests 68 48 198 151 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders 116 (395 ) 473 (130 ) Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (62 ) (18 ) (161 ) (38 ) (Gains) losses from sale of businesses — — — (3 ) (Gains) losses on early extinguishment of debt, net — — — (48 ) Losses from life block transactions — — — 9 Expenses related to restructuring 1 2 2 22 Fees associated with bond consent solicitation — — — 18 Taxes on adjustments 21 6 56 (9 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 76 $ (405 ) $ 370 $ (179 ) (1) For the three months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for net investment (gains) losses attributable to noncontrolling interests of $23 million and $2 million, respectively. For the nine months ended September 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 $59 million and $8 million, respectively. Three months ended Nine months ended (Amounts in millions) 2017 2016 2017 2016 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 73 $ 67 $ 237 $ 189 Canada Mortgage Insurance segment 37 36 114 107 Australia Mortgage Insurance segment 12 14 37 48 U.S. Life Insurance segment: Long-term care insurance (5 ) (270 ) 42 (199 ) Life insurance (9 ) 48 6 110 Fixed annuities 13 15 43 28 U.S. Life Insurance segment (1 ) (207 ) 91 (61 ) Runoff segment 13 12 38 22 Corporate and Other activities (58 ) (327 ) (147 ) (484 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 76 $ (405 ) $ 370 $ (179 ) The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) September 30, December 31, Assets: U.S. Mortgage Insurance segment $ 3,015 $ 2,674 Canada Mortgage Insurance segment 5,435 4,884 Australia Mortgage Insurance segment 2,814 2,619 U.S. Life Insurance segment 81,858 81,933 Runoff segment 11,149 11,352 Corporate and Other activities 358 1,196 Total assets $ 104,629 $ 104,658 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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 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, pre-judgment 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 8-K Rosenfeld Family Trust Rosenfeld Family Trust Chopp Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust 8-K 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 pre-judgment re-filed 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 September 30, 2017, we were committed to fund $319 million in limited partnership investments, $40 million in U.S. commercial mortgage loan investments and $21 million in private placement investments. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 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 (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2017 $ 1,180 $ 2,064 $ (149 ) $ 3,095 OCI before reclassifications (70 ) 10 81 21 Amounts reclassified from (to) OCI (19 ) (22 ) — (41 ) Current period OCI (89 ) (12 ) 81 (20 ) Balances as of September 30, 2017 before noncontrolling interests 1,091 2,052 (68 ) 3,075 Less: change in OCI attributable to noncontrolling interests (17 ) — 57 40 Balances as of September 30, 2017 $ 1,108 $ 2,052 $ (125 ) $ 3,035 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2016 $ 2,789 $ 2,439 $ (140 ) $ 5,088 OCI before reclassifications 86 72 (1 ) 157 Amounts reclassified from (to) OCI (9 ) (18 ) — (27 ) Current period OCI 77 54 (1 ) 130 Balances as of September 30, 2016 before noncontrolling interests 2,866 2,493 (141 ) 5,218 Less: change in OCI attributable to noncontrolling interests 6 — 10 16 Balances as of September 30, 2016 $ 2,860 $ 2,493 $ (151 ) $ 5,202 (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, 2017 $ 1,262 $ 2,085 $ (253 ) $ 3,094 OCI before reclassifications (95 ) 29 261 195 Amounts reclassified from (to) OCI (77 ) (62 ) — (139 ) Current period OCI (172 ) (33 ) 261 56 Balances as of September 30, 2017 before noncontrolling interests 1,090 2,052 8 3,150 Less: change in OCI attributable to noncontrolling interests (18 ) — 133 115 Balances as of September 30, 2017 $ 1,108 $ 2,052 $ (125 ) $ 3,035 (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 1,692 507 223 2,422 Amounts reclassified from (to) OCI (62 ) (59 ) — (121 ) Current period OCI 1,630 448 223 2,301 Balances as of September 30, 2016 before noncontrolling interests 2,884 2,493 (66 ) 5,311 Less: change in OCI attributable to noncontrolling interests 24 — 85 109 Balances as of September 30, 2016 $ 2,860 $ 2,493 $ (151 ) $ 5,202 (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 $5 million, respectively, net of taxes of $1 million and $2 million, respectively, related to a net unrecognized postretirement benefit obligation as of September 30, 2017 and 2016. The amount also includes taxes of $28 million and $37 million, respectively, related to foreign currency translation adjustments as of September 30, 2017 and 2016. The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from accumulated Affected line item Three months ended Nine months ended (Amounts in millions) 2017 2016 2017 2016 Net unrealized investment (gains) losses: Unrealized (gains) losses on (1) $ (29 ) $ (13 ) $ (118 ) $ (95 ) Net investment (gains) losses Provision for income taxes 10 4 41 33 Provision for income taxes Total $ (19 ) $ (9 ) $ (77 ) $ (62 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (34 ) $ (27 ) $ (95 ) $ (80 ) Net investment income Interest rate swaps hedging assets — — (2 ) (1 ) Net investment (gains) losses Inflation indexed swaps — — — (2 ) Net investment income Inflation indexed swaps — — — (7 ) Net investment (gains) losses Provision for income taxes 12 9 35 31 Provision for income taxes Total $ (22 ) $ (18 ) $ (62 ) $ (59 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 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 September 30, 2017 and December 31, 2016, the condensed consolidating income statement information and the condensed consolidating comprehensive income statement information for the three and nine months ended September 30, 2017 and 2016 and the condensed consolidating cash flows statement information for the nine months ended September 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 September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 62,752 $ (200 ) $ 62,552 Equity securities available-for-sale, — — 765 — 765 Commercial mortgage loans — — 6,268 — 6,268 Restricted commercial mortgage loans related to securitization entities — — 111 — 111 Policy loans — — 1,818 — 1,818 Other invested assets — 75 1,517 (2 ) 1,590 Investments in subsidiaries 13,191 12,459 — (25,650 ) — Total investments 13,191 12,534 73,231 (25,852 ) 73,104 Cash and cash equivalents — 754 2,082 — 2,836 Accrued investment income — — 639 — 639 Deferred acquisition costs — — 2,342 — 2,342 Intangible assets and goodwill — — 315 — 315 Reinsurance recoverable — — 17,553 — 17,553 Other assets — 90 470 (8 ) 552 Intercompany notes receivable — 161 33 (194 ) — Deferred tax assets — — 24 — 24 Separate account assets — — 7,264 — 7,264 Total assets $ 13,191 $ 13,539 $ 103,953 $ (26,054 ) $ 104,629 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 38,022 $ — $ 38,022 Policyholder account balances — — 24,531 — 24,531 Liability for policy and contract claims — — 9,384 — 9,384 Unearned premiums — — 3,512 — 3,512 Other liabilities 8 163 1,842 (11 ) 2,002 Intercompany notes payable 145 232 17 (394 ) — Borrowings related to securitization entities — — 59 — 59 Non-recourse — — 310 — 310 Long-term borrowings — 3,722 502 — 4,224 Deferred tax liability (31 ) (862 ) 1,127 — 234 Separate account liabilities — — 7,264 — 7,264 Total liabilities 122 3,255 86,570 (405 ) 89,542 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,973 9,096 18,381 (27,477 ) 11,973 Accumulated other comprehensive income (loss) 3,035 3,040 3,057 (6,097 ) 3,035 Retained earnings 760 (1,852 ) (6,376 ) 8,228 760 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,069 10,284 15,065 (25,349 ) 13,069 Noncontrolling interests — — 2,318 (300 ) 2,018 Total equity 13,069 10,284 17,383 (25,649 ) 15,087 Total liabilities and equity $ 13,191 $ 13,539 $ 103,953 $ (26,054 ) $ 104,629 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, $ — $ — $ 60,772 $ (200 ) $ 60,572 Equity securities available-for-sale, — — 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 — — 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 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 September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,135 $ — $ 1,135 Net investment income (1 ) 2 800 (4 ) 797 Net investment gains (losses) — (4 ) 89 — 85 Policy fees and other income — 4 195 (1 ) 198 Total revenues (1 ) 2 2,219 (5 ) 2,215 Benefits and expenses: Benefits and other changes in policy reserves — — 1,344 — 1,344 Interest credited — — 164 — 164 Acquisition and operating expenses, net of deferrals 20 (2 ) 247 — 265 Amortization of deferred acquisition costs and intangibles — — 83 — 83 Interest expense — 66 12 (5 ) 73 Total benefits and expenses 20 64 1,850 (5 ) 1,929 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (21 ) (62 ) 369 — 286 Provision (benefit) for income taxes (5 ) (21 ) 128 — 102 Equity in income of subsidiaries 123 71 — (194 ) — Income from continuing operations 107 30 241 (194 ) 184 Income (loss) from discontinued operations, net of taxes — 4 (13 ) — (9 ) Net income 107 34 228 (194 ) 175 Less: net income attributable to noncontrolling interests — — 68 — 68 Net income available to Genworth Financial, Inc.’s common stockholders $ 107 $ 34 $ 160 $ (194 ) $ 107 The following table presents the condensed consolidating income statement information for the three months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,108 $ — $ 1,108 Net investment income (2 ) 1 810 (4 ) 805 Net investment gains (losses) — (1 ) 21 — 20 Policy fees and other income — — 217 — 217 Total revenues (2 ) — 2,156 (4 ) 2,150 Benefits and expenses: Benefits and other changes in policy reserves — — 1,662 — 1,662 Interest credited — — 173 — 173 Acquisition and operating expenses, net of deferrals 13 — 256 — 269 Amortization of deferred acquisition costs and intangibles — — 94 — 94 Interest expense — 69 12 (4 ) 77 Total benefits and expenses 13 69 2,197 (4 ) 2,275 Loss from continuing operations before income taxes and equity in loss of subsidiaries (15 ) (69 ) (41 ) — (125 ) Provision (benefit) for income taxes (4 ) 155 71 — 222 Equity in loss of subsidiaries (369 ) (207 ) — 576 — Loss from continuing operations (380 ) (431 ) (112 ) 576 (347 ) Income from discontinued operations, net of taxes — 11 4 — 15 Net loss (380 ) (420 ) (108 ) 576 (332 ) Less: net income attributable to noncontrolling interests — — 48 — 48 Net loss available to Genworth Financial, Inc.’s common stockholders $ (380 ) $ (420 ) $ (156 ) $ 576 $ (380 ) The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 3,382 $ — $ 3,382 Net investment income (3 ) 5 2,397 (11 ) 2,388 Net investment gains (losses) — (12 ) 232 — 220 Policy fees and other income — 3 617 (1 ) 619 Total revenues (3 ) (4 ) 6,628 (12 ) 6,609 Benefits and expenses: Benefits and other changes in policy reserves — — 3,796 — 3,796 Interest credited — — 494 — 494 Acquisition and operating expenses, net of deferrals 48 (2 ) 729 — 775 Amortization of deferred acquisition costs and intangibles — — 316 — 316 Interest expense — 187 34 (12 ) 209 Total benefits and expenses 48 185 5,369 (12 ) 5,590 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (51 ) (189 ) 1,259 — 1,019 Provision (benefit) for income taxes (9 ) (65 ) 422 — 348 Equity in income of subsidiaries 506 339 — (845 ) — Income from continuing operations 464 215 837 (845 ) 671 Income (loss) from discontinued operations, net of taxes — 4 (13 ) — (9 ) Net income 464 219 824 (845 ) 662 Less: net income attributable to noncontrolling interests — — 198 — 198 Net income available to Genworth Financial, Inc.’s common stockholders $ 464 $ 219 $ 626 $ (845 ) $ 464 The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 3,029 $ — $ 3,029 Net investment income (3 ) 1 2,386 (11 ) 2,373 Net investment gains (losses) — (14 ) 45 — 31 Policy fees and other income — (6 ) 745 (1 ) 738 Total revenues (3 ) (19 ) 6,205 (12 ) 6,171 Benefits and expenses: Benefits and other changes in policy reserves — — 3,715 — 3,715 Interest credited — — 523 — 523 Acquisition and operating expenses, net of deferrals 118 38 834 — 990 Amortization of deferred acquisition costs and intangibles — — 305 — 305 Interest expense 1 210 63 (12 ) 262 Total benefits and expenses 119 248 5,440 (12 ) 5,795 Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries (122 ) (267 ) 765 — 376 Provision (benefit) for income taxes (31 ) 88 298 — 355 Equity in income (loss) of subsidiaries (62 ) 78 — (16 ) — Income (loss) from continuing operations (153 ) (277 ) 467 (16 ) 21 Loss from discontinued operations, net of taxes (2 ) (7 ) (16 ) — (25 ) Net income (loss) (155 ) (284 ) 451 (16 ) (4 ) Less: net income attributable to noncontrolling interests — — 151 — 151 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (155 ) $ (284 ) $ 300 $ (16 ) $ (155 ) The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 107 $ 34 $ 228 $ (194 ) $ 175 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (72 ) (71 ) (89 ) 143 (89 ) Derivatives qualifying as hedges (12 ) (12 ) (12 ) 24 (12 ) Foreign currency translation and other adjustments 24 12 80 (35 ) 81 Total other comprehensive income (loss) (60 ) (71 ) (21 ) 132 (20 ) Total comprehensive income (loss) 47 (37 ) 207 (62 ) 155 Less: comprehensive income attributable to noncontrolling interests — — 108 — 108 Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ 47 $ (37 ) $ 99 $ (62 ) $ 47 The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net loss $ (380 ) $ (420 ) $ (108 ) $ 576 $ (332 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 66 63 73 (130 ) 72 Net unrealized gains (losses) on other-than-temporarily impaired securities 5 4 4 (8 ) 5 Derivatives qualifying as hedges 54 54 57 (111 ) 54 Foreign currency translation and other adjustments (11 ) (3 ) — 13 (1 ) Total other comprehensive income (loss) 114 118 134 (236 ) 130 Total comprehensive income (loss) (266 ) (302 ) 26 340 (202 ) Less: comprehensive income attributable to noncontrolling interests — — 64 — 64 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (266 ) $ (302 ) $ (38 ) $ 340 $ (266 ) The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 464 $ 219 $ 824 $ (845 ) $ 662 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (155 ) (172 ) (173 ) 327 (173 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 1 (2 ) 1 Derivatives qualifying as hedges (33 ) (33 ) (32 ) 65 (33 ) Foreign currency translation and other adjustments 128 109 260 (236 ) 261 Total other comprehensive income (loss) (59 ) (95 ) 56 154 56 Total comprehensive income 405 124 880 (691 ) 718 Less: comprehensive income attributable to noncontrolling interests — — 313 — 313 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 405 $ 124 $ 567 $ (691 ) $ 405 The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (155 ) $ (284 ) $ 451 $ (16 ) $ (4 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 1,600 1,555 1,625 (3,156 ) 1,624 Net unrealized gains (losses) on other-than-temporarily impaired securities 6 5 6 (11 ) 6 Derivatives qualifying as hedges 448 447 481 (928 ) 448 Foreign currency translation and other adjustments 138 65 224 (204 ) 223 Total other comprehensive income (loss) 2,192 2,072 2,336 (4,299 ) 2,301 Total comprehensive income 2,037 1,788 2,787 (4,315 ) 2,297 Less: comprehensive income attributable to noncontrolling interests — — 260 — 260 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 2,037 $ 1,788 $ 2,527 $ (4,315 ) $ 2,037 The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income $ 464 $ 219 $ 824 $ (845 ) $ 662 Less loss from discontinued operations, net of taxes — (4 ) 13 — 9 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (506 ) (339 ) — 845 — Dividends from subsidiaries — 119 (119 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 4 (111 ) — (107 ) Net investment (gains) losses — 12 (232 ) — (220 ) Charges assessed to policyholders — — (534 ) — (534 ) Acquisition costs deferred — — (67 ) — (67 ) Amortization of deferred acquisition costs and intangibles — — 316 — 316 Deferred income taxes 6 (47 ) 275 — 234 Trading securities, held-for-sale — (46 ) 762 — 716 Stock-based compensation expense 23 — 6 — 29 Change in certain assets and liabilities: Accrued investment income and other assets 2 (2 ) (25 ) 4 (21 ) Insurance reserves — — 1,202 — 1,202 Current tax liabilities (6 ) (75 ) 54 — (27 ) Other liabilities, policy and contract claims and other policy-related balances (29 ) 34 (259 ) (6 ) (260 ) Net cash from operating activities (46 ) (125 ) 2,105 (2 ) 1,932 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 3,396 — 3,396 Commercial mortgage loans — — 454 — 454 Restricted commercial mortgage loans related to securitization entities — — 18 — 18 Proceeds from sales of investments: Fixed maturity and equity securities — — 3,269 — 3,269 Purchases and originations of investments: Fixed maturity and equity securities — — (6,709 ) — (6,709 ) Commercial mortgage loans — — (608 ) — (608 ) Other invested assets, net — 25 (548 ) 2 (521 ) Policy loans, net — — 28 — 28 Intercompany notes receivable — (77 ) 34 43 — Capital contributions to subsidiaries (7 ) — 7 — — Payments for business purchased, net of cash acquired (7 ) — 2 — (5 ) Net cash used by investing activities (14 ) (52 ) (657 ) 45 (678 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 902 — 902 Withdrawals from universal life and investment contracts — — (2,003 ) — (2,003 ) Repayment of borrowings related to securitization entities — — (16 ) — (16 ) Repurchase of subsidiary shares — — (31 ) — (31 ) Dividends paid to noncontrolling interests — — (92 ) — (92 ) Proceeds from intercompany notes payable 61 (35 ) 17 (43 ) — Other, net (1 ) (32 ) 3 — (30 ) Net cash used by financing activities 60 (67 ) (1,220 ) (43 ) (1,270 ) Effect of exchange rate changes on cash and cash equivalents — — 68 — 68 Net change in cash and cash equivalents — (244 ) 296 — 52 Cash and cash equivalents at beginning of period — 998 1,786 — 2,784 Cash and cash equivalents at end of period $ — $ 754 $ 2,082 $ — $ 2,836 The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (155 ) $ (284 ) $ 451 $ (16 ) $ (4 ) Less loss from discontinued operations, net of taxes 2 7 16 — 25 Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in (income) loss from subsidiaries 62 (78 ) — 16 — Dividends from subsidiaries — 250 (250 ) — — (Gain) loss on sale of businesses — 1 (27 ) — (26 ) Amortization of fixed maturity securities discounts and premiums and limited partnerships — 3 (115 ) — (112 ) Net investment (gains) losses — 14 (45 ) — (31 ) Charges assessed to policyholders — — (574 ) — (574 ) Acquisition costs deferred — — (124 ) — (124 ) Amortization of deferred acquisition costs and intangibles — — 305 — 305 Deferred income taxes 8 304 (139 ) — 173 Trading securities, held-for-sale — 5 754 — 759 Stock-based compensation expense 18 — 7 — 25 Change in certain assets and liabilities: Accrued investment income and other assets (3 ) (4 ) (246 ) (5 ) (258 ) Insurance reserves — — 691 — 691 Current tax liabilities 11 (4 ) 37 — 44 Other liabilities, policy and contract claims and other policy-related balances (1 ) (22 ) 928 — 905 Net cash from operating activities (58 ) 192 1,669 (5 ) 1,798 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 150 2,496 — 2,646 Commercial mortgage loans — — 555 — 555 Restricted commercial mortgage loans related to securitization entities — — 27 — 27 Proceeds from sales of investments: Fixed maturity and equity securities — — 4,064 — 4,064 Purchases and originations of investments: Fixed maturity and equity securities — — (8,758 ) — (8,758 ) Commercial mortgage loans — — (405 ) — (405 ) Other invested assets, net — — (143 ) 5 (138 ) Policy loans, net — — (80 ) — (80 ) Intercompany notes receivable — (58 ) (18 ) 76 — Proceeds from sale of businesses, net of cash transferred — 1 38 — 39 Net cash used by investing activities — 93 (2,224 ) 81 (2,050 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 1,028 — 1,028 Withdrawals from universal life and investment contracts — — (1,463 ) — (1,463 ) Redemption of non-recourse — — (1,620 ) — (1,620 ) Repayment and repurchase of long-term debt — (326 ) (36 ) — (362 ) Repayment of borrowings related to securitization entities — — (37 ) — (37 ) Return of capital to noncontrolling interests — — (70 ) — (70 ) Dividends paid to noncontrolling interests — — (126 ) — (126 ) Proceeds from intercompany notes payable 58 18 — (76 ) — Other, net — (36 ) (13 ) — (49 ) Net cash used by financing activities 58 (344 ) (2,337 ) (76 ) (2,699 ) Effect of exchange rate changes on cash and cash equivalents — — 36 — 36 Net change in cash and cash equivalents — (59 ) (2,856 ) — (2,915 ) Cash and cash equivalents at beginning of period — 1,124 4,869 — 5,993 Cash and cash equivalents at end of period $ — $ 1,065 $ 2,013 $ — $ 3,078 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 September 30, 2017, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $13.0 billion and $12.2 billion, respectively. |
Accounting Changes (Policies)
Accounting Changes (Policies) | 9 Months Ended |
Sep. 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 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 August 2017, the Financial Accounting Standards Board (“the FASB”) issued new guidance intended to enable entities to better portray the economics of their derivative risk management activities in the financial statements and enhance the transparency and understandability of hedge results. In certain situations, the amendments also simplify the application of hedge accounting. The guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are in process of evaluating adopting this new guidance early and the impact it may have on our consolidated financial statements. In May 2017, 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. In January 2016, the FASB issued new accounting guidance related to the recognition and measurement of financial assets and financial liabilities. Changes to the current financial instruments accounting primarily affects equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair value, except those accounted for under the equity method of accounting, will be measured at fair value with changes in fair value recognized in net income (loss). As of September 30, 2017, we have approximately $45 million of cumulative unrealized gains related to equity securities included in accumulated other comprehensive income as well as approximately $25 million of gains related to limited partnership investments currently recorded at cost, that will be reclassed to cumulative effect of change in accounting within retained earnings upon adoption of this new accounting guidance. The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings (Loss) per Share | Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) category presented below by the weighted-average basic and diluted common shares outstanding for the periods indicated: Three months Nine months (Amounts in millions, except per share amounts) 2017 2016 2017 2016 Weighted-average shares used in basic earnings (loss) per share calculations 499.1 498.3 498.9 498.3 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 2.5 — 2.3 — Weighted-average shares used in diluted earnings (loss) per share calculations (1) 501.6 498.3 501.2 498.3 Income (loss) from continuing operations: Income (loss) from continuing operations $ 184 $ (347 ) $ 671 $ 21 Less: income from continuing operations attributable to noncontrolling interests 68 48 198 151 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 116 $ (395 ) $ 473 $ (130 ) Basic per share $ 0.23 $ (0.79 ) $ 0.95 $ (0.26 ) Diluted per share $ 0.23 $ (0.79 ) $ 0.94 $ (0.26 ) Income (loss) from discontinued operations: Income (loss) from discontinued operations, net of taxes $ (9 ) $ 15 $ (9 ) $ (25 ) Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — — — Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ (9 ) $ 15 $ (9 ) $ (25 ) Basic per share $ (0.02 ) $ 0.03 $ (0.02 ) $ (0.05 ) Diluted per share $ (0.02 ) $ 0.03 $ (0.02 ) $ (0.05 ) Net income (loss): Income (loss) from continuing operations $ 184 $ (347 ) $ 671 $ 21 Income (loss) from discontinued operations, net of taxes (9 ) 15 (9 ) (25 ) Net income (loss) 175 (332 ) 662 (4 ) Less: net income attributable to noncontrolling interests 68 48 198 151 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 107 $ (380 ) $ 464 $ (155 ) Basic per share $ 0.21 $ (0.76 ) $ 0.93 $ (0.31 ) Diluted per share $ 0.21 $ (0.76 ) $ 0.93 $ (0.31 ) (1) Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.’s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Net Investment Income | Sources of net investment income were as follows for the periods indicated: Three months Nine months (Amounts in millions) 2017 2016 2017 2016 Fixed maturity securities—taxable $ 640 $ 655 $ 1,930 1,930 Fixed maturity securities—non-taxable 3 3 9 9 Commercial mortgage loans 78 79 231 237 Restricted commercial mortgage loans related to securitization entities 3 3 7 8 Equity securities 9 8 26 20 Other invested assets 39 34 106 105 Restricted other invested assets related to securitization entities — — 1 3 Policy loans 39 38 120 107 Cash, cash equivalents and short-term investments 10 5 26 16 Gross investment income before expenses and fees 821 825 2,456 2,435 Expenses and fees (24 ) (20 ) (68 ) (62 ) Net investment income $ 797 $ 805 $ 2,388 $ 2,373 |
Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the periods indicated: Three months Nine months (Amounts in millions) 2017 2016 2017 2016 Available-for-sale Realized gains $ 40 $ 39 $ 177 $ 205 Realized losses (10 ) (24 ) (55 ) (75 ) Net realized gains (losses) on available-for-sale 30 15 122 130 Impairments: Total other-than-temporary impairments (1 ) (2 ) (4 ) (35 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) — — — — Net other-than-temporary impairments (1 ) (2 ) (4 ) (35 ) Trading securities — (4 ) 1 40 Commercial mortgage loans 1 (1 ) 3 1 Net gains (losses) related to securitization entities 1 2 5 (51 ) Derivative instruments (1) 54 10 93 (52 ) Contingent consideration adjustment — — — (2 ) Net investment gains (losses) $ 85 $ 20 $ 220 $ 31 (1) See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Credit Losses Recognized in Net Income (Loss) | The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in other comprehensive income (loss) (“OCI”) as of and for the periods indicated: As of or for the three months As of or for the (Amounts in millions) 2017 2016 2017 2016 Beginning balance $ 38 $ 62 $ 42 $ 64 Additions: Other-than-temporary impairments not previously recognized — — — 1 Reductions: Securities sold, paid down or disposed (5 ) (8 ) (9 ) (11 ) Ending balance $ 33 $ 54 $ 33 $ 54 |
Unrealized Investment Gains and Losses | Net unrealized gains and losses on available-for-sale (Amounts in millions) September 30, 2017 December 31, 2016 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 4,878 $ 3,656 Equity securities 49 12 Subtotal (1) 4,927 3,668 Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves (3,134 ) (1,611 ) Income taxes, net (619 ) (711 ) Net unrealized investment gains (losses) 1,174 1,346 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 66 84 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,108 $ 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 As of or for the (Amounts in millions) 2017 2016 Beginning balance $ 1,180 $ 2,789 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities (10 ) 228 Adjustment to deferred acquisition costs (1 ) (17 ) Adjustment to present value of future profits (3 ) 3 Adjustment to sales inducements — (6 ) Adjustment to benefit reserves (92 ) (81 ) Provision for income taxes 36 (41 ) Change in unrealized gains (losses) on investment securities (70 ) 86 Reclassification adjustments to net investment (gains) losses, net of taxes of $10 and $4 (19 ) (9 ) Change in net unrealized investment gains (losses) (89 ) 77 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (17 ) 6 Ending balance $ 1,108 $ 2,860 As of or for the (Amounts in millions) 2017 2016 Beginning balance $ 1,262 $ 1,254 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 1,377 3,584 Adjustment to deferred acquisition costs (1,047 ) (291 ) Adjustment to present value of future profits (36 ) (26 ) Adjustment to sales inducements (11 ) (46 ) Adjustment to benefit reserves (429 ) (612 ) Provision for income taxes 51 (917 ) Change in unrealized gains (losses) on investment securities (95 ) 1,692 Reclassification adjustments to net investment (gains) losses, net of taxes of $41 and $33 (77 ) (62 ) Change in net unrealized investment gains (losses) (172 ) 1,630 Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (18 ) 24 Ending balance $ 1,108 $ 2,860 |
Fixed Maturity and Equity Securities | As of September 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 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 $ 4,893 $ 784 $ — $ (7 ) $ — $ 5,670 State and political subdivisions 2,639 247 — (26 ) — 2,860 Non-U.S. 2,143 107 — (24 ) — 2,226 U.S. corporate: Utilities 4,382 556 — (15 ) — 4,923 Energy 2,243 207 — (10 ) — 2,440 Finance and insurance 6,051 547 — (11 ) — 6,587 Consumer—non-cyclical 4,330 508 — (10 ) — 4,828 Technology and communications 2,558 193 — (11 ) — 2,740 Industrial 1,247 102 — (3 ) — 1,346 Capital goods 2,067 263 — (9 ) — 2,321 Consumer—cyclical 1,506 111 — (6 ) — 1,611 Transportation 1,188 124 — (6 ) — 1,306 Other 358 24 — (2 ) — 380 Total U.S. corporate 25,930 2,635 — (83 ) — 28,482 Non-U.S. Utilities 1,022 45 — (5 ) — 1,062 Energy 1,330 140 — (7 ) — 1,463 Finance and insurance 2,524 177 — (5 ) — 2,696 Consumer—non-cyclical 692 27 — (3 ) — 716 Technology and communications 945 71 — (2 ) — 1,014 Industrial 979 81 — (2 ) — 1,058 Capital goods 556 33 — (2 ) — 587 Consumer—cyclical 518 10 — (1 ) — 527 Transportation 650 71 — (3 ) — 718 Other 2,594 193 — (5 ) — 2,782 Total non-U.S. 11,810 848 — (35 ) — 12,623 Residential mortgage-backed 3,950 255 14 (10 ) — 4,209 Commercial mortgage-backed 3,346 105 2 (39 ) — 3,414 Other asset-backed 3,052 20 1 (5 ) — 3,068 Total fixed maturity securities 57,763 5,001 17 (229 ) — 62,552 Equity securities 720 59 — (14 ) — 765 Total available-for-sale $ 58,483 $ 5,060 $ 17 $ (243 ) $ — $ 63,317 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 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. 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. 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. 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 $ 57,642 $ 4,126 $ 14 $ (578 ) $ — $ 61,204 |
Maturity Distribution of Fixed Maturity Securities | The scheduled maturity distribution of fixed maturity securities as of September 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 $ 1,943 $ 1,966 Due after one year through five years 10,901 11,333 Due after five years through ten years 12,363 12,933 Due after ten years 22,208 25,629 Subtotal 47,415 51,861 Residential mortgage-backed 3,950 4,209 Commercial mortgage-backed 3,346 3,414 Other asset-backed 3,052 3,068 Total $ 57,763 $ 62,552 |
Aging of Past Due Commercial Mortgage Loans by Property Type | The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated: September 30, 2017 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than Total Current Total Property type: Retail $ — $ — $ — $ — $ 2,220 $ 2,220 Industrial — — — — 1,608 1,608 Office 6 — — 6 1,459 1,465 Apartments — — — — 489 489 Mixed use — — — — 222 222 Other — — — — 277 277 Total recorded investment $ 6 $ — $ — $ 6 $ 6,275 $ 6,281 % of total commercial mortgage loans — % — % — % — % 100 % 100 % December 31, 2016 (Amounts in millions) 31 - 60 days 61 - 90 days Greater than 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 Nine months ended (Amounts in millions) 2017 2016 2017 2016 Allowance for credit losses: Beginning balance $ 10 $ 13 $ 12 $ 15 Charge-offs — — — (4 ) Recoveries — — — — Provision — — (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 $ 6,281 $ 6,032 $ 6,281 $ 6,032 Ending balance of individually impaired loans $ — $ 17 $ — $ 17 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,281 $ 6,015 $ 6,281 $ 6,015 |
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 September 30, 2017: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number Fair Gross Number Fair Gross Number Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored $ 283 $ (6 ) 22 $ 31 $ (1 ) 4 $ 314 $ (7 ) 26 State and political subdivisions 213 (5 ) 45 230 (21 ) 23 443 (26 ) 68 Non-U.S. 922 (23 ) 36 24 (1 ) 14 946 (24 ) 50 U.S. corporate 2,335 (47 ) 333 766 (36 ) 106 3,101 (83 ) 439 Non-U.S. 1,562 (22 ) 222 261 (13 ) 36 1,823 (35 ) 258 Residential mortgage-backed 656 (9 ) 80 33 (1 ) 28 689 (10 ) 108 Commercial mortgage-backed 837 (25 ) 120 201 (14 ) 30 1,038 (39 ) 150 Other asset-backed 736 (4 ) 131 173 (1 ) 40 909 (5 ) 171 Subtotal, fixed maturity securities 7,544 (141 ) 989 1,719 (88 ) 281 9,263 (229 ) 1,270 Equity securities 82 (5 ) 142 111 (9 ) 89 193 (14 ) 231 Total for securities in an unrealized loss position $ 7,626 $ (146 ) 1,131 $ 1,830 $ (97 ) 370 $ 9,456 $ (243 ) 1,501 % Below cost—fixed maturity securities: <20% Below cost $ 7,544 $ (141 ) 989 $ 1,719 $ (88 ) 281 $ 9,263 $ (229 ) 1,270 Total fixed maturity securities 7,544 (141 ) 989 1,719 (88 ) 281 9,263 (229 ) 1,270 % Below cost—equity securities: <20% Below cost 79 (4 ) 139 111 (9 ) 89 190 (13 ) 228 20%-50% 3 (1 ) 3 — — — 3 (1 ) 3 Total equity securities 82 (5 ) 142 111 (9 ) 89 193 (14 ) 231 Total for securities in an unrealized loss position $ 7,626 $ (146 ) 1,131 $ 1,830 $ (97 ) 370 $ 9,456 $ (243 ) 1,501 Investment grade $ 7,437 $ (139 ) 984 $ 1,656 $ (90 ) 287 $ 9,093 $ (229 ) 1,271 Below investment grade 189 (7 ) 147 174 (7 ) 83 363 (14 ) 230 Total for securities in an unrealized loss position $ 7,626 $ (146 ) 1,131 $ 1,830 $ (97 ) 370 $ 9,456 $ (243 ) 1,501 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of September 30, 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 $ 468 $ (10 ) 69 $ 104 $ (5 ) 17 $ 572 $ (15 ) 86 Energy 123 (1 ) 22 146 (9 ) 16 269 (10 ) 38 Finance and insurance 542 (7 ) 75 154 (4 ) 21 696 (11 ) 96 Consumer—non-cyclical 325 (7 ) 50 84 (3 ) 12 409 (10 ) 62 Technology and communications 208 (4 ) 30 127 (7 ) 19 335 (11 ) 49 Industrial 55 (1 ) 12 56 (2 ) 8 111 (3 ) 20 Capital goods 274 (8 ) 31 8 (1 ) 2 282 (9 ) 33 Consumer—cyclical 127 (2 ) 18 70 (4 ) 9 197 (6 ) 27 Transportation 190 (5 ) 24 17 (1 ) 2 207 (6 ) 26 Other 23 (2 ) 2 — — — 23 (2 ) 2 Subtotal, U.S. corporate securities 2,335 (47 ) 333 766 (36 ) 106 3,101 (83 ) 439 Non-U.S. Utilities 227 (4 ) 31 19 (1 ) 2 246 (5 ) 33 Energy 142 (3 ) 21 69 (4 ) 11 211 (7 ) 32 Finance and insurance 324 (3 ) 49 50 (2 ) 9 374 (5 ) 58 Consumer—non-cyclical 131 (2 ) 16 34 (1 ) 4 165 (3 ) 20 Technology and communications 80 (1 ) 17 12 (1 ) 2 92 (2 ) 19 Industrial 67 (1 ) 10 11 (1 ) 2 78 (2 ) 12 Capital goods 34 (1 ) 6 34 (1 ) 3 68 (2 ) 9 Consumer—cyclical 101 (1 ) 15 — — — 101 (1 ) 15 Transportation 61 (1 ) 13 32 (2 ) 3 93 (3 ) 16 Other 395 (5 ) 44 — — — 395 (5 ) 44 Subtotal, non-U.S. 1,562 (22 ) 222 261 (13 ) 36 1,823 (35 ) 258 Total for corporate securities in an unrealized loss position $ 3,897 $ (69 ) 555 $ 1,027 $ (49 ) 142 $ 4,924 $ (118 ) 697 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 securities Fair value 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. 497 (18 ) 51 — — — 497 (18 ) 51 U.S. corporate 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. 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% — — — 80 (26 ) 8 80 (26 ) 8 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% 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 Fair Gross Number Fair Gross Number 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. 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. 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 |
Loan To Value Ratio | |
Commercial Mortgage Loans by Property Type | The following tables set forth the loan-to-value September 30, 2017 (Amounts in millions) 0% - 50% 51% - 60% 61% - 75% 76% - 100% Greater (1) Total Property type: Retail $ 933 $ 499 $ 788 $ — $ — $ 2,220 Industrial 747 356 503 2 — 1,608 Office 583 393 473 14 2 1,465 Apartments 236 105 143 5 — 489 Mixed use 101 59 62 — — 222 Other 68 29 180 — — 277 Total recorded investment $ 2,668 $ 1,441 $ 2,149 $ 21 $ 2 $ 6,281 % of total 43 % 23 % 34 % — % — % 100 % Weighted-average debt service coverage ratio 2.65 1.85 1.60 0.63 1.04 2.10 (1) Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value 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 |
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: September 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 $ 43 $ 242 $ 298 $ 999 $ 638 $ 2,220 Industrial 24 63 180 679 662 1,608 Office 72 67 151 521 654 1,465 Apartments — 20 75 193 201 489 Mixed use 2 4 26 86 104 222 Other 1 149 15 72 40 277 Total recorded investment $ 142 $ 545 $ 745 $ 2,550 $ 2,299 $ 6,281 % of total 2 % 9 % 12 % 40 % 37 % 100 % Weighted-average loan-to-value 57 % 60 % 58 % 57 % 41 % 52 % December 31, 2016 (Amounts in millions) Less than 1.00 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 | September 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,220 35 % $ 2,178 36 % Industrial 1,608 26 1,533 25 Office 1,465 23 1,430 23 Apartments 489 8 455 7 Mixed use 222 4 245 4 Other 277 4 284 5 Subtotal 6,281 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,268 $ 6,111 September 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,620 26 % $ 1,546 25 % Pacific 1,600 26 1,567 27 Middle Atlantic 904 14 915 15 Mountain 556 9 554 9 West North Central 441 7 435 7 East North Central 386 6 388 6 West South Central 327 5 311 5 New England 237 4 206 3 East South Central 210 3 203 3 Subtotal 6,281 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,268 $ 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: September 30, 2017 December 31, 2016 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,220 35 % $ 2,178 36 % Industrial 1,608 26 1,533 25 Office 1,465 23 1,430 23 Apartments 489 8 455 7 Mixed use 222 4 245 4 Other 277 4 284 5 Subtotal 6,281 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (10 ) (12 ) Total $ 6,268 $ 6,111 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 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 September 30, (5) December 31, Balance sheet classification September 30, (5) December 31, Derivatives designated as Cash flow hedges: Interest rate swaps Other invested $ 70 $ 237 Other liabilities $ 39 $ 203 Foreign currency swaps Other invested 2 4 Other liabilities — — Total cash flow hedges 72 241 39 203 Total derivatives 72 241 39 203 Derivatives not designated as Interest rate swaps Other invested — 359 Other liabilities — 146 Foreign currency swaps Other invested 10 — Other liabilities — 5 Credit default swaps related to Restricted other invested assets — — Other liabilities — 1 Equity index options Other 81 72 Other liabilities — — Financial futures Other — — Other liabilities — — Equity return swaps Other — 1 Other liabilities 2 1 Other foreign currency Other invested 98 35 Other liabilities 23 27 GMWB embedded derivatives Reinsurance recoverable (1) 14 16 Policyholder account balances (2) 257 303 Fixed index annuity embedded Other assets — — Policyholder account balances (3) 394 344 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (4) 14 11 Total derivatives not 203 483 690 838 Total derivatives $ 275 $ 724 $ 729 $ 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. (5) In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017. |
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/ September 30, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,570 $ — $ (306 ) $ 11,264 Foreign currency swaps Notional 22 — — 22 Total cash flow hedges 11,592 — (306 ) 11,286 Total derivatives designated as hedges 11,592 — (306 ) 11,286 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — — 4,679 Foreign currency swaps Notional 201 95 (14 ) 282 Credit default swaps Notional 39 — — 39 Credit default swaps related to securitization entities Notional 312 — (200 ) 112 Equity index options Notional 2,396 1,584 (1,484 ) 2,496 Financial futures Notional 1,398 4,300 (4,376 ) 1,322 Equity return swaps Notional 165 186 (258 ) 93 Other foreign currency contracts Notional 3,130 2,163 (691 ) 4,602 Total derivatives not designated as hedges 12,320 8,328 (7,023 ) 13,625 Total derivatives $ 23,912 $ 8,328 $ (7,329 ) $ 24,911 (Number of policies) Measurement December 31, Additions Maturities/ September 30, Derivatives not designated as hedges GMWB embedded derivatives Policies 33,238 — (2,127 ) 31,111 Fixed index annuity embedded derivatives Policies 17,549 — (367 ) 17,182 Indexed universal life embedded derivatives Policies 1,074 1 (66 ) 1,009 |
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges | The following table provides information about the pre-tax (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) (1) Classification of Interest rate swaps hedging assets $ 115 $ 27 Net investment $ 2 Net investment Interest rate swaps hedging liabilities (2 ) — Interest — Net investment Foreign currency swaps (1 ) — Net investment — Net investment Total $ 112 $ 27 $ 2 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) (1) Classification of Interest rate swaps hedging assets $ 50 $ 95 Net investment $ — Net investment Interest rate swaps hedging assets — 2 Net investment — Net investment Interest rate swaps hedging liabilities (2 ) — Interest expense — Net investment Foreign currency swaps (2 ) — Net investment — Net investment Total $ 46 $ 97 $ — (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 (Amounts in millions) Gain (loss) Gain (loss) Classification of Gain (loss) (1) Classification of Interest rate swaps hedging assets $ 839 $ 80 Net investment $ 13 Net investment Interest rate swaps hedging assets — 1 Net investment — Net investment Interest rate swaps hedging liabilities (52 ) — Interest expense — Net investment Inflation indexed swaps (5 ) 2 Net investment — Net investment Inflation indexed swaps — 7 Net investment — Net investment Foreign currency swaps (2 ) — Net investment — Net investment Total $ 780 $ 90 $ 13 (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 (Amounts in millions) 2017 2016 Derivatives qualifying as effective accounting hedges as of July 1 $ 2,064 $ 2,439 Current period increases (decreases) in fair value, net of deferred taxes of $(6) and $(40) 10 72 Reclassification to net (income), net of deferred taxes of $12 and $9 (22 ) (18 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,052 $ 2,493 Nine months (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 $(17) and $(273) 29 507 Reclassification to net (income), net of deferred taxes of $35 and $31 (62 ) (59 ) Derivatives qualifying as effective accounting hedges as of September 30 $ 2,052 $ 2,493 |
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives Not Designated as Hedges | The following tables provide the pre-tax Three months Classification of gain (loss) in net income (loss) (Amounts in millions) 2017 2016 Interest rate swaps $ 1 $ (1 ) Net investment gains (losses) Credit default swaps related to securitization entities 2 2 Net investment gains (losses) Equity index options 16 9 Net investment gains (losses) Financial futures (17 ) (35 ) Net investment gains (losses) Equity return swaps (5 ) (9 ) Net investment gains (losses) Other foreign currency contracts 40 (2 ) Net investment gains (losses) Foreign currency swaps 8 (1 ) Net investment gains (losses) GMWB embedded derivatives 30 60 Net investment gains (losses) Fixed index annuity embedded derivatives (21 ) (16 ) Net investment gains (losses) Indexed universal life embedded derivatives 2 3 Net investment gains (losses) Total derivatives not designated as hedges $ 56 $ 10 Nine months Classification of gain (loss) in net income (loss) (Amounts in millions) 2017 2016 Interest rate swaps $ 2 $ 7 Net investment gains (losses) Interest rate swaps related to securitization entities — (10 ) Net investment gains (losses) Credit default swaps related to securitization entities 6 16 Net investment gains (losses) Equity index options 42 5 Net investment gains (losses) Financial futures (25 ) (9 ) Net investment gains (losses) Equity return swaps (19 ) (2 ) Net investment gains (losses) Other foreign currency contracts 66 (6 ) Net investment gains (losses) Foreign currency swaps 13 6 Net investment gains (losses) GMWB embedded derivatives 64 (58 ) Net investment gains (losses) Fixed index annuity embedded derivatives (57 ) (22 ) Net investment gains (losses) Indexed universal life embedded derivatives 5 6 Net investment gains (losses) Total derivatives not designated as hedges $ 97 $ (67 ) |
Derivative Assets and Liabilities Subject to Master Netting Arrangement | The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of the dates indicated: September 30, 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 $ 262 $ 66 $ 196 $ 724 $ 387 $ 337 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 262 66 196 724 387 337 Gross amounts not offset in the balance sheet: Financial instruments (3) (24 ) (24 ) — (172 ) (172 ) — Collateral received (164 ) — (164 ) (467 ) — (467 ) Collateral pledged — (301 ) 301 — (557 ) 557 Over collateralization 8 259 (251 ) 1 344 (343 ) Net amount $ 82 $ — $ 82 $ 86 $ 2 $ 84 (1) Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively. (2) Included $2 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 September 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: September 30, 2017 December 31, 2016 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Investment grade Matures in less than one year $ 39 $ — $ — $ — $ — $ — Matures after one year through five years — — — 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: September 30, 2017 December 31, 2016 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Customized credit default swap index tranches related Portion backing third-party borrowings maturing 2017 (1) $ 12 $ — $ — $ 12 $ — $ — Portion backing our interest maturing 2017 (2) 100 — 300 — 1 Total customized credit default swap index tranches related to securitization entities 112 — — 312 — 1 Total credit default swaps on index tranches $ 112 $ — $ — $ 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) | 9 Months Ended |
Sep. 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: September 30, 2017 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,268 $ 6,550 $ — $ — $ 6,550 Restricted commercial mortgage loans (1) 111 122 — — 122 Other invested assets (1) 217 243 — — 243 Liabilities: Long-term borrowings (1) 4,224 3,742 — 3,583 159 Non-recourse (1) 310 195 — — 195 Borrowings related to securitization (1) 47 48 — 48 — Investment contracts (1) 15,163 15,705 — 5 15,700 Other firm commitments: Commitments to fund limited partnerships 319 — — — — — Ordinary course of business lending 61 — — — — — 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 (1) 310 186 — — 186 Borrowings related to securitization (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 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 September 30, 2017: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $ 5,669 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 $ 2,816 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. $ 2,210 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer U.S. corporate $ 25,290 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based 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. $ 10,711 Multi-dimensional attribute-based modeling systems, OAS-based Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer Residential mortgage-backed $ 4,123 OAS-based 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 $ 3,392 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 $ 2,843 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: non-U.S. non-U.S. |
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis | The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: September 30, 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,670 $ — $ 5,669 $ 1 State and political subdivisions 2,860 — 2,823 37 Non-U.S. 2,226 — 2,226 — U.S. corporate: Utilities 4,923 — 4,261 662 Energy 2,440 — 2,282 158 Finance and insurance 6,587 — 5,917 670 Consumer—non-cyclical 4,828 — 4,701 127 Technology and communications 2,740 — 2,688 52 Industrial 1,346 — 1,299 47 Capital goods 2,321 — 2,203 118 Consumer—cyclical 1,611 — 1,349 262 Transportation 1,306 — 1,245 61 Other 380 — 210 170 Total U.S. corporate 28,482 — 26,155 2,327 Non-U.S. Utilities 1,062 — 703 359 Energy 1,463 — 1,286 177 Finance and insurance 2,696 — 2,527 169 Consumer—non-cyclical 716 — 587 129 Technology and communications 1,014 — 985 29 Industrial 1,058 — 919 139 Capital goods 587 — 437 150 Consumer—cyclical 527 — 458 69 Transportation 718 — 537 181 Other 2,782 — 2,733 49 Total non-U.S. 12,623 — 11,172 1,451 Residential mortgage-backed 4,209 — 4,123 86 Commercial mortgage-backed 3,414 — 3,392 22 Other asset-backed 3,068 — 2,843 225 Total fixed maturity securities 62,552 — 58,403 4,149 Equity securities 765 644 77 44 Other invested assets: Derivative assets: Interest rate swaps 70 — 70 — Foreign currency swaps 12 — 12 — Equity index options 81 — — 81 Other foreign currency contracts 98 — 98 — Total derivative assets 261 — 180 81 Securities lending collateral 237 — 237 — Short-term investments 787 — 787 — Total other invested assets 1,285 — 1,204 81 Reinsurance recoverable (1) 14 — — 14 Separate account assets 7,264 7,264 — — Total assets $ 71,880 $ 7,908 $ 59,684 $ 4,288 (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. 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. 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. 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: (Amounts in millions) Beginning as of Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending as of Total gains in net attributable Included in net Included Fixed maturity securities: U.S. government, agencies $ 1 $ — $ — $ — $ — $ — $ — $ — $ — $ 1 $ — State and political subdivisions 37 1 (1 ) — — — — — — 37 1 U.S. corporate: Utilities 638 — — 26 — — (2 ) — — 662 — Energy 160 — — — — — (2 ) — — 158 — Finance and insurance 861 3 (52 ) 22 (14 ) — (157 ) 8 (1 ) 670 2 Consumer—non-cyclical 122 — 1 4 — — — — — 127 — Technology and 58 1 (3 ) — — — (1 ) — (3 ) 52 1 Industrial 61 — — — — — — — (14 ) 47 — Capital goods 118 1 — — — — (1 ) — — 118 1 Consumer—cyclical 266 — — — — — (2 ) — (2 ) 262 — Transportation 100 16 (10 ) — — — (45 ) — — 61 — Other 176 — — — (4 ) — (2 ) — — 170 — Total U.S. corporate 2,560 21 (64 ) 52 (18 ) — (212 ) 8 (20 ) 2,327 4 Non-U.S. Utilities 359 — — — — — — — — 359 — Energy 177 — 1 — — — (1 ) — — 177 — Finance and insurance 172 1 1 — — — (5 ) — — 169 — Consumer—non-cyclical 129 — — — — — — — — 129 — Technology and 48 1 1 — (21 ) — — — — 29 — Industrial 112 — — 13 — — — 14 — 139 — Capital goods 149 — 1 — — — — — — 150 — Consumer—cyclical 67 — — — — — — 2 — 69 — Transportation 190 — 1 — — — (10 ) — — 181 — Other 41 (2 ) 1 — (2 ) — — 11 — 49 — Total non-U.S. 1,444 — 6 13 (23 ) — (16 ) 27 — 1,451 — Residential mortgage-backed 73 — — 22 — — (1 ) — (8 ) 86 — Commercial mortgage-backed 52 (1 ) (2 ) 14 — — — — (41 ) 22 — Other asset-backed 150 (1 ) 1 52 — — (5 ) 44 (16 ) 225 — Total fixed maturity securities 4,317 20 (60 ) 153 (41 ) — (234 ) 79 (85 ) 4,149 5 Equity securities 48 — — — (1 ) — — — (3 ) 44 — Other invested assets: Derivative assets: Equity index options 81 16 — 15 — — (31 ) — — 81 13 Total derivative assets 81 16 — 15 — — (31 ) — — 81 13 Total other invested assets 81 16 — 15 — — (31 ) — — 81 13 Reinsurance recoverable (2) 15 (1 ) — — — — — — — 14 (1 ) Total Level 3 assets $ 4,461 $ 35 $ (60 ) $ 168 $ (42 ) $ — $ (265 ) $ 79 $ (88 ) $ 4,288 $ 17 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. (Amounts in millions) Beginning as of Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending as of Total gains attributable Included Included Fixed maturity securities: U.S. government, agencies $ 2 $ — $ — $ — $ — $ — $ — $ — $ — $ 2 $ — State and political subdivisions 36 1 — — — — — — (1 ) 36 1 U.S. corporate: Utilities 552 1 4 54 (6 ) — (1 ) 1 (43 ) 562 — Energy 208 — 3 — — — (8 ) — (1 ) 202 — Finance and insurance 775 4 14 27 (5 ) — (32 ) 37 — 820 5 Consumer—non-cyclical 102 — 1 5 (5 ) — — — — 103 — Technology and 40 1 — 12 — — — — — 53 1 Industrial 78 — — — — — — — — 78 — Capital goods 135 — 1 — — — — — — 136 1 Consumer—cyclical 254 — — 19 (5 ) — (1 ) 1 (3 ) 265 — Transportation 129 — 1 — — — (6 ) — — 124 — Other 147 — — — — — (1 ) 16 — 162 — Total U.S. corporate 2,420 6 24 117 (21 ) — (49 ) 55 (47 ) 2,505 7 Non-U.S. Utilities 331 — 1 52 (5 ) — — — (10 ) 369 — Energy 234 — 9 8 (9 ) — (17 ) — — 225 — Finance and insurance 201 — 3 11 (1 ) — — — — 214 — Consumer—non-cyclical 168 2 (1 ) 3 (3 ) — (37 ) 12 — 144 — Technology and 80 — 1 2 (2 ) — — — — 81 — Industrial 95 — 2 17 (17 ) — — 15 — 112 — Capital goods 212 1 (2 ) — — — (5 ) — (33 ) 173 1 Consumer—cyclical 71 — — — — — — — — 71 — Transportation 186 1 (1 ) — — — (14 ) 1 — 173 — Other 29 (2 ) 2 — (12 ) — — 10 — 27 (2 ) Total non-U.S. 1,607 2 14 93 (49 ) — (73 ) 38 (43 ) 1,589 (1 ) Residential mortgage-backed 96 — — — (45 ) — (8 ) 5 (11 ) 37 — Commercial mortgage-backed 33 — (3 ) — — — — — (2 ) 28 — Other asset-backed 198 (6 ) 7 — (5 ) — (5 ) 25 (64 ) 150 (6 ) Total fixed maturity securities 4,392 3 42 210 (120 ) — (135 ) 123 (168 ) 4,347 1 Equity securities 44 — — 2 — — — — — 46 — Other invested assets: Derivative assets: Equity index options 57 9 — 15 — — (20 ) — — 61 — Other foreign currency 1 — — — — — — — — 1 — Total derivative assets 58 9 — 15 — — (20 ) — — 62 — Total other invested assets 58 9 — 15 — — (20 ) — — 62 — Restricted other invested assets 131 — — — — — — — — 131 — Reinsurance recoverable (2) 26 (3 ) — — — 1 — — — 24 (3 ) Total Level 3 assets $ 4,651 $ 9 $ 42 $ 227 $ (120 ) $ 1 $ (155 ) $ 123 $ (168 ) $ 4,610 $ (2 ) (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: (Amounts in millions) Beginning January 1, Total realized and Purchases Sales Issuances Settlements Transfer (1) Transfer (1) Ending September 30, Total gains to assets Included Included Fixed maturity securities: U.S. government, agencies $ 2 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 1 $ — State and political subdivisions 37 2 (2 ) — — — — — — 37 2 U.S. corporate: Utilities 576 — 20 70 — — (4 ) 30 (30 ) 662 — Energy 210 (1 ) 6 — (10 ) — (32 ) 1 (16 ) 158 (1 ) Finance and insurance 786 11 (1 ) 75 (31 ) — (163 ) 8 (15 ) 670 10 Consumer—non-cyclical 121 — 2 4 — — — — — 127 — Technology and communications 54 2 3 14 — — (1 ) — (20 ) 52 2 Industrial 48 — — 13 — — — — (14 ) 47 — Capital goods 152 1 3 — — — (1 ) — (37 ) 118 1 Consumer—cyclical 258 — 9 2 — — (5 ) — (2 ) 262 — Transportation 139 17 (5 ) — — — (48 ) — (42 ) 61 1 Other 143 — 1 — (4 ) — (7 ) 37 — 170 — Total U.S. corporate 2,487 30 38 178 (45 ) — (261 ) 76 (176 ) 2,327 13 Non-U.S. Utilities 386 — 5 30 — — — — (62 ) 359 — Energy 206 — 6 — (1 ) — (1 ) — (33 ) 177 — Finance and insurance 182 4 9 4 — — (30 ) — — 169 2 Consumer—non-cyclical 139 — 2 — — — (12 ) — — 129 — Technology and communications 67 1 1 — (21 ) — (19 ) — — 29 — Industrial 109 — 3 13 — — — 14 — 139 — Capital goods 169 — 3 — — — (15 ) — (7 ) 150 — Consumer—cyclical 69 — — — — — (2 ) 2 — 69 — Transportation 181 — 4 6 — — (10 ) 11 (11 ) 181 — Other 25 (2 ) 2 15 (2 ) — — 11 — 49 — Total non-U.S. 1,533 3 35 68 (24 ) — (89 ) 38 (113 ) 1,451 2 Residential mortgage-backed 43 — 1 26 — — (2 ) 26 (8 ) 86 — Commercial mortgage-backed 54 (2 ) 4 23 (9 ) — — — (48 ) 22 — Other asset-backed 145 (8 ) 11 116 (35 ) — (12 ) 58 (50 ) 225 — Total fixed maturity securities 4,301 25 87 411 (113 ) — (365 ) 198 (395 ) 4,149 17 Equity securities 47 — — 1 (1 ) — — — (3 ) 44 — Other invested assets: Derivative assets: Equity index options 72 42 — 36 — — (69 ) — — 81 21 Other foreign currency 3 (3 ) — — — — — — — — (2 ) Total derivative assets 75 39 — 36 — — (69 ) — — 81 19 Total other invested assets 75 39 — 36 — — (69 ) — — 81 19 Restricted other invested assets 131 — — — (131 ) — — — — — — Reinsurance recoverable (2) 16 (3 ) — — — 1 — — — 14 (3 ) Total Level 3 assets $ 4,570 $ 61 $ 87 $ 448 $ (245 ) $ 1 $ (434 ) $ 198 $ (398 ) $ 4,288 $ 33 (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 September 30, Total gains to assets (Amounts in millions) Included Included Purchases Sales Issuances Settlements Fixed maturity securities: U.S. government, agencies and government-sponsored $ 3 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 2 $ — State and political subdivisions 35 2 (1 ) 7 — — — — (7 ) 36 2 U.S. corporate: Utilities 449 1 28 101 (6 ) — (9 ) 68 (70 ) 562 — Energy 253 — (1 ) — — — (10 ) 7 (47 ) 202 — Finance and insurance 715 12 58 54 (14 ) — (59 ) 72 (18 ) 820 11 Consumer—non-cyclical 109 — 7 5 (18 ) — — — — 103 — Technology and 35 2 4 12 — — — — — 53 2 Industrial 61 — 5 — — — — 12 — 78 — Capital goods 180 1 6 — (10 ) — — — (41 ) 136 1 Consumer—cyclical 239 4 9 44 (5 ) — (42 ) 19 (3 ) 265 — Transportation 106 1 9 17 — — (14 ) 5 — 124 1 Other 182 1 1 — — — (5 ) 16 (33 ) 162 1 Total U.S. corporate 2,329 22 126 233 (53 ) — (139 ) 199 (212 ) 2,505 16 Non-U.S. Utilities 287 — 9 62 (5 ) — — 26 (10 ) 369 — Energy 252 — 33 8 (11 ) — (31 ) — (26 ) 225 — Finance and insurance 191 2 11 11 (1 ) — — — — 214 2 Consumer—non-cyclical 169 2 9 3 (3 ) — (48 ) 12 — 144 — Technology and 62 — 6 18 (5 ) — — — — 81 — Industrial 84 — 7 17 (20 ) — — 24 — 112 — Capital goods 213 1 7 — — — (15 ) — (33 ) 173 1 Consumer—cyclical 71 — 2 — — — (2 ) — — 71 — Transportation 144 1 3 — — — (14 ) 39 — 173 — Other 72 (2 ) 4 — (12 ) — (7 ) 10 (38 ) 27 (2 ) Total non-U.S. 1,545 4 91 119 (57 ) — (117 ) 111 (107 ) 1,589 1 Residential mortgage-backed 116 — 2 51 (45 ) — (13 ) 13 (87 ) 37 — Commercial mortgage-backed 10 — 1 23 — — (4 ) — (2 ) 28 — Other asset-backed 1,142 (16 ) 3 12 (25 ) — (19 ) 66 (1,013 ) 150 (16 ) Total fixed maturity securities 5,180 12 222 445 (180 ) — (293 ) 389 (1,428 ) 4,347 3 Equity securities 38 — — 8 — — — — — 46 — Other invested assets: Derivative assets: Credit default swaps 1 — — — — — (1 ) — — — — Equity index options 30 5 — 51 — — (25 ) — — 61 (4 ) Other foreign currency 3 (2 ) — 1 — — (1 ) — — 1 (2 ) Total derivative assets 34 3 — 52 — — (27 ) — — 62 (6 ) Total other invested assets 34 3 — 52 — — (27 ) — — 62 (6 ) Restricted other invested assets 232 (55 ) — — — — (46 ) — — 131 9 Reinsurance recoverable (2) 17 5 — — — 2 — — — 24 5 Total Level 3 assets $ 5,501 $ (35 ) $ 222 $ 505 $ (180 ) $ 2 $ (366 ) $ 389 $ (1,428 ) $ 4,610 $ 11 (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 (loss) from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated: Three months Nine months (Amounts in millions) 2017 2016 2017 2016 Total realized and unrealized gains (losses) included in net income (loss): Net investment income $ 7 $ 11 $ 22 $ (33 ) Net investment gains (losses) 28 (2 ) 39 (2 ) Total $ 35 $ 9 $ 61 $ (35 ) Total gains (losses) included in net income (loss) attributable to assets still held: Net investment income $ 5 $ 9 $ 18 $ 23 Net investment gains (losses) 12 (11 ) 15 (12 ) Total $ 17 $ (2 ) $ 33 $ 11 |
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 September 30, 2017: (Amounts in millions) Valuation Fair value Unobservable Range Weighted- Fixed maturity securities: U.S. corporate: Utilities Internal models $ 647 Credit spreads 73bps - 379bps 135bps Energy Internal models 86 Credit spreads 80bps - 193bps 142bps Finance and insurance Internal models 629 Credit spreads 70bps - 354bps 180bps Consumer—non-cyclical Internal models 127 Credit spreads 88bps - 247bps 132bps Technology and Internal models 52 Credit spreads 60bps - 353bps 299bps Industrial Internal models 20 Credit spreads 90bps - 207bps 162bps Capital goods Internal models 118 Credit spreads 90bps - 247bps 140bps Consumer—cyclical Internal models 236 Credit spreads 56bps - 210bps 129bps Transportation Internal models 54 Credit spreads 56bps - 123bps 89bps Other Internal models 161 Credit spreads 64bps - 135bps 75bps Total U.S. corporate Internal models $ 2,130 Credit spreads 56bps - 379bps 146bps Non-U.S. Utilities Internal models $ 358 Credit spreads 77bps - 158bps 116bps Energy Internal models 146 Credit spreads 90bps - 169bps 116bps Finance and insurance Internal models 160 Credit spreads 69bps - 179bps 107bps Consumer—non-cyclical Internal models 118 Credit spreads 56bps - 191bps 112bps Technology and Internal models 29 Credit spreads 123bps - 222bps 171bps Industrial Internal models 130 Credit spreads 109bps - 247bps 146bps Capital goods Internal models 121 Credit spreads 88bps - 145bps 112bps Consumer—cyclical Internal models 69 Credit spreads 87bps - 169bps 112bps Transportation Internal models 161 Credit spreads 78bps - 210bps 115bps Other Internal models 49 Credit spreads 101bps - 233bps 181bps Total non-U.S. Internal models $ 1,341 Credit spreads 56bps - 247bps 120bps Derivative assets: Equity index options Discounted $ 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: September 30, 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 257 $ — $ — $ 257 Fixed index annuity embedded derivatives 394 — — 394 Indexed universal life embedded derivatives 14 — — 14 Total policyholder account balances 665 — — 665 Derivative liabilities: Interest rate swaps 39 — 39 — Equity return swaps 2 — 2 — Other foreign currency contracts 23 — 23 — Total derivative liabilities 64 — 64 — Borrowings related to securitization entities 12 — — 12 Total liabilities $ 741 $ — $ 64 $ 677 (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 (Amounts in millions) Included Included Policyholder account balances: GMWB embedded (1) $ 281 $ (31 ) $ — $ — $ — $ 7 $ — $ — $ — $ 257 $ (31 ) Fixed index annuity 376 21 — — — — (3 ) — — 394 21 Indexed universal life 13 (2 ) — — — 3 — — — 14 (2 ) Total policyholder account 670 (12 ) — — — 10 (3 ) — — 665 (12 ) Borrowings related to 12 — — — — — — — — 12 — Total Level 3 liabilities $ 682 $ (12 ) $ — $ — $ — $ 10 $ (3 ) $ — $ — $ 677 $ (12 ) (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (Amounts in millions) Beginning Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending Total Included in Included Policyholder account balances: GMWB embedded (1) $ 494 $ (63 ) $ — $ — $ — $ 8 $ — $ — $ — $ 439 $ (59 ) Fixed index annuity 351 16 — — — — (3 ) — — 364 16 Indexed universal life 13 (3 ) — — — 3 — — — 13 (3 ) Total policyholder account 858 (50 ) — — — 11 (3 ) — — 816 (46 ) Borrowings related to 11 — — — — — — — — 11 — Total Level 3 liabilities $ 869 $ (50 ) $ — $ — $ — $ 11 $ (3 ) $ — $ — $ 827 $ (46 ) (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 Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending Total (Amounts in millions) Included Included Policyholder account balances: GMWB embedded (1) $ 303 $ (67 ) $ — $ — $ — $ 21 $ — $ — $ — $ 257 $ (64 ) Fixed index annuity embedded derivatives 344 57 — — — — (7 ) — — 394 57 Indexed universal life 11 (5 ) — — — 8 — — — 14 (5 ) Total policyholder account 658 (15 ) — — — 29 (7 ) — — 665 (12 ) Borrowings related to 12 1 — — — — (1 ) — — 12 1 Total Level 3 liabilities $ 670 $ (14 ) $ — $ — $ — $ 29 $ (8 ) $ — $ — $ 677 $ (11 ) (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. Beginning Total realized and Purchases Sales Issuances Settlements Transfer Transfer Ending Total (Amounts in millions) Included Included Policyholder account balances: GMWB embedded (1) $ 352 $ 63 $ — $ — $ — $ 24 $ — $ — $ — $ 439 $ 72 Fixed index annuity 342 22 — — — 10 (10 ) — — 364 22 Indexed universal life 10 (6 ) — — — 9 — — — 13 (6 ) Total policyholder 704 79 — — — 43 (10 ) — — 816 88 Derivative liabilities: Credit default swaps related 14 (13 ) — — — — 2 — (3 ) — — Total derivative liabilities 14 (13 ) — — — — 2 — (3 ) — — Borrowings related to 81 (65 ) — — — — (5 ) — — 11 — Total Level 3 liabilities $ 799 $ 1 $ — $ — $ — $ 43 $ (13 ) $ — $ (3 ) $ 827 $ 88 (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) loss from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2017 2016 2017 2016 Total realized and unrealized (gains) losses included in net (income) loss: Net investment income $ — $ — $ — $ — Net investment (gains) losses (12 ) (50 ) (14 ) 1 Total $ (12 ) $ (50 ) $ (14 ) $ 1 Total (gains) losses included in net (income) loss attributable to liabilities still held: Net investment income $ — $ — $ — $ — Net investment (gains) losses (12 ) (46 ) (11 ) 88 Total $ (12 ) $ (46 ) $ (11 ) $ 88 |
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 September 30, 2017: (Amounts in millions) Valuation Fair Unobservable input Range Weighted- Policyholder account balances: Withdrawal 40% - 84% 65% Lapse rate — % - 8% 4% Non-performance 26bps - 83bps 66bp s GMWB embedded (1) Stochastic cash $257 Equity index 13% - 24% 20% Fixed index annuity embedded Option budget $394 Expected future — % - 2% 1% Indexed universal life embedded Option budget $14 Expected future 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) | 9 Months Ended |
Sep. 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 nine months (Amounts in millions) 2017 2016 Unamortized beginning balance $ 4,241 $ 4,569 Impact of foreign currency translation 12 8 Costs deferred 67 124 Amortization, net of interest accretion (261 ) (257 ) Unamortized ending balance 4,059 4,444 Accumulated effect of net unrealized investment (gains) losses (1,717 ) (462 ) Ending balance $ 2,342 $ 3,982 |
Liability for Policy and Cont27
Liability for Policy and Contract Claims (Tables) | 9 Months Ended |
Sep. 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 nine (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 2,748 2,569 Prior years (306 ) 320 Total incurred 2,442 2,889 Paid related to insured events of: Current year (755 ) (727 ) Prior years (1,746 ) (1,646 ) Total paid (2,501 ) (2,373 ) Interest on liability for policy and contract claims 223 188 Foreign currency translation 27 14 Net ending balance 7,038 6,691 Add reinsurance recoverables 2,346 2,178 Ending balance $ 9,384 $ 8,869 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 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 Nine months ended September 30, (Amounts in millions) 2017 2016 2017 2016 Pre-tax $ 286 $ (125 ) $ 1,019 $ 376 Statutory U.S. federal income tax rate $ 100 35.0 % $ (44 ) 35.0 % $ 357 35.0 % $ 132 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect 1 0.1 — — (2 ) (0.2 ) 1 0.2 Tax favored investments 6 1.9 1 (0.7 ) 3 0.3 (2 ) (0.5 ) Effect of foreign operations (6 ) (2.0 ) 5 (3.9 ) (14 ) (1.3 ) (12 ) (3.3 ) Non-deductible — — (1 ) 0.5 1 0.1 (1 ) (0.1 ) Valuation allowance — — 265 (212.9 ) — — 240 63.8 Stock-based compensation 1 0.5 2 (1.8 ) 3 0.2 5 1.4 Loss on sale of business — — — — — — (1 ) (0.2 ) Other, net — — (6 ) 4.8 — — (7 ) (1.8 ) Effective rate $ 102 35.5 % $ 222 (179.0 )% $ 348 34.1 % $ 355 94.5 % |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 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 Nine months ended (Amounts in millions) 2017 2016 2017 2016 Revenues: U.S. Mortgage Insurance segment $ 194 $ 186 $ 570 $ 537 Canada Mortgage Insurance segment 220 156 593 463 Australia Mortgage Insurance segment 98 115 317 333 U.S. Life Insurance segment: Long-term care insurance 1,033 980 3,063 3,051 Life insurance 389 418 1,217 953 Fixed annuities 190 218 605 613 U.S. Life Insurance segment 1,612 1,616 4,885 4,617 Runoff segment 90 84 266 218 Corporate and Other activities 1 (7 ) (22 ) 3 Total revenues $ 2,215 $ 2,150 $ 6,609 $ 6,171 |
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities | The following tables present the reconciliation of net income (loss) available to Genworth Financial, Inc.’s common stockholders to adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities and a summary of adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders for our segments and Corporate and Other activities for the periods indicated: Three months ended Nine months ended (Amounts in millions) 2017 2016 2017 2016 Net income (loss) available to Genworth Financial, Inc.’s $ 107 $ (380 ) $ 464 $ (155 ) Add: net income attributable to noncontrolling interests 68 48 198 151 Net income (loss) 175 (332 ) 662 (4 ) Income (loss) from discontinued operations, net of taxes (9 ) 15 (9 ) (25 ) Income (loss) from continuing operations 184 (347 ) 671 21 Less: income from continuing operations attributable to noncontrolling interests 68 48 198 151 Income (loss) from continuing operations available to Genworth Financial, 116 (395 ) 473 (130 ) Adjustments to income (loss) from continuing operations available to Net investment (gains) losses, net (1) (62 ) (18 ) (161 ) (38 ) (Gains) losses from sale of businesses — — — (3 ) (Gains) losses on early extinguishment of debt, net — — — (48 ) Losses from life block transactions — — — 9 Expenses related to restructuring 1 2 2 22 Fees associated with bond consent solicitation — — — 18 Taxes on adjustments 21 6 56 (9 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s $ 76 $ (405 ) $ 370 $ (179 ) (1) For the three months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for net investment (gains) losses attributable to noncontrolling interests of $23 million and $2 million, respectively. For the nine months ended September 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 $59 million and $8 million, respectively. Three months ended Nine months ended (Amounts in millions) 2017 2016 2017 2016 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 73 $ 67 $ 237 $ 189 Canada Mortgage Insurance segment 37 36 114 107 Australia Mortgage Insurance segment 12 14 37 48 U.S. Life Insurance segment: Long-term care insurance (5 ) (270 ) 42 (199 ) Life insurance (9 ) 48 6 110 Fixed annuities 13 15 43 28 U.S. Life Insurance segment (1 ) (207 ) 91 (61 ) Runoff segment 13 12 38 22 Corporate and Other activities (58 ) (327 ) (147 ) (484 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 76 $ (405 ) $ 370 $ (179 ) |
Summary of Total Assets for Segments and Corporate and Other Activities | The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated: (Amounts in millions) September 30, December 31, Assets: U.S. Mortgage Insurance segment $ 3,015 $ 2,674 Canada Mortgage Insurance segment 5,435 4,884 Australia Mortgage Insurance segment 2,814 2,619 U.S. Life Insurance segment 81,858 81,933 Runoff segment 11,149 11,352 Corporate and Other activities 358 1,196 Total assets $ 104,629 $ 104,658 |
Changes in Accumulated Other 30
Changes in Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 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 (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2017 $ 1,180 $ 2,064 $ (149 ) $ 3,095 OCI before reclassifications (70 ) 10 81 21 Amounts reclassified from (to) OCI (19 ) (22 ) — (41 ) Current period OCI (89 ) (12 ) 81 (20 ) Balances as of September 30, 2017 before noncontrolling interests 1,091 2,052 (68 ) 3,075 Less: change in OCI attributable to noncontrolling interests (17 ) — 57 40 Balances as of September 30, 2017 $ 1,108 $ 2,052 $ (125 ) $ 3,035 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of July 1, 2016 $ 2,789 $ 2,439 $ (140 ) $ 5,088 OCI before reclassifications 86 72 (1 ) 157 Amounts reclassified from (to) OCI (9 ) (18 ) — (27 ) Current period OCI 77 54 (1 ) 130 Balances as of September 30, 2016 before noncontrolling interests 2,866 2,493 (141 ) 5,218 Less: change in OCI attributable to noncontrolling interests 6 — 10 16 Balances as of September 30, 2016 $ 2,860 $ 2,493 $ (151 ) $ 5,202 (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, 2017 $ 1,262 $ 2,085 $ (253 ) $ 3,094 OCI before reclassifications (95 ) 29 261 195 Amounts reclassified from (to) OCI (77 ) (62 ) — (139 ) Current period OCI (172 ) (33 ) 261 56 Balances as of September 30, 2017 before noncontrolling interests 1,090 2,052 8 3,150 Less: change in OCI attributable to noncontrolling interests (18 ) — 133 115 Balances as of September 30, 2017 $ 1,108 $ 2,052 $ (125 ) $ 3,035 (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 1,692 507 223 2,422 Amounts reclassified from (to) OCI (62 ) (59 ) — (121 ) Current period OCI 1,630 448 223 2,301 Balances as of September 30, 2016 before noncontrolling interests 2,884 2,493 (66 ) 5,311 Less: change in OCI attributable to noncontrolling interests 24 — 85 109 Balances as of September 30, 2016 $ 2,860 $ 2,493 $ (151 ) $ 5,202 (1) Net of adjustments to DAC, present value of future profits, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. |
Reclassifications in (out) of Accumulated Other Comprehensive Income (Loss), Net of Taxes | The following table shows reclassifications in (out) of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from accumulated Affected line item Three months ended Nine months ended (Amounts in millions) 2017 2016 2017 2016 Net unrealized investment (gains) losses: Unrealized (gains) losses on (1) $ (29 ) $ (13 ) $ (118 ) $ (95 ) Net investment (gains) losses Provision for income taxes 10 4 41 33 Provision for income taxes Total $ (19 ) $ (9 ) $ (77 ) $ (62 ) Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (34 ) $ (27 ) $ (95 ) $ (80 ) Net investment income Interest rate swaps hedging assets — — (2 ) (1 ) Net investment (gains) losses Inflation indexed swaps — — — (2 ) Net investment income Inflation indexed swaps — — — (7 ) Net investment (gains) losses Provision for income taxes 12 9 35 31 Provision for income taxes Total $ (22 ) $ (18 ) $ (62 ) $ (59 ) (1) Amounts exclude adjustments to DAC, present value of future profits, sales inducements and benefit reserves. |
Condensed Consolidating Finan31
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Consolidating Balance Sheet | The following table presents the condensed consolidating balance sheet information as of September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, $ — $ — $ 62,752 $ (200 ) $ 62,552 Equity securities available-for-sale, — — 765 — 765 Commercial mortgage loans — — 6,268 — 6,268 Restricted commercial mortgage loans related to securitization entities — — 111 — 111 Policy loans — — 1,818 — 1,818 Other invested assets — 75 1,517 (2 ) 1,590 Investments in subsidiaries 13,191 12,459 — (25,650 ) — Total investments 13,191 12,534 73,231 (25,852 ) 73,104 Cash and cash equivalents — 754 2,082 — 2,836 Accrued investment income — — 639 — 639 Deferred acquisition costs — — 2,342 — 2,342 Intangible assets and goodwill — — 315 — 315 Reinsurance recoverable — — 17,553 — 17,553 Other assets — 90 470 (8 ) 552 Intercompany notes receivable — 161 33 (194 ) — Deferred tax assets — — 24 — 24 Separate account assets — — 7,264 — 7,264 Total assets $ 13,191 $ 13,539 $ 103,953 $ (26,054 ) $ 104,629 Liabilities and equity Liabilities: Future policy benefits $ — $ — $ 38,022 $ — $ 38,022 Policyholder account balances — — 24,531 — 24,531 Liability for policy and contract claims — — 9,384 — 9,384 Unearned premiums — — 3,512 — 3,512 Other liabilities 8 163 1,842 (11 ) 2,002 Intercompany notes payable 145 232 17 (394 ) — Borrowings related to securitization entities — — 59 — 59 Non-recourse — — 310 — 310 Long-term borrowings — 3,722 502 — 4,224 Deferred tax liability (31 ) (862 ) 1,127 — 234 Separate account liabilities — — 7,264 — 7,264 Total liabilities 122 3,255 86,570 (405 ) 89,542 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in 11,973 9,096 18,381 (27,477 ) 11,973 Accumulated other comprehensive income (loss) 3,035 3,040 3,057 (6,097 ) 3,035 Retained earnings 760 (1,852 ) (6,376 ) 8,228 760 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,069 10,284 15,065 (25,349 ) 13,069 Noncontrolling interests — — 2,318 (300 ) 2,018 Total equity 13,069 10,284 17,383 (25,649 ) 15,087 Total liabilities and equity $ 13,191 $ 13,539 $ 103,953 $ (26,054 ) $ 104,629 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, $ — $ — $ 60,772 $ (200 ) $ 60,572 Equity securities available-for-sale, — — 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 — — 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 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 September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,135 $ — $ 1,135 Net investment income (1 ) 2 800 (4 ) 797 Net investment gains (losses) — (4 ) 89 — 85 Policy fees and other income — 4 195 (1 ) 198 Total revenues (1 ) 2 2,219 (5 ) 2,215 Benefits and expenses: Benefits and other changes in policy reserves — — 1,344 — 1,344 Interest credited — — 164 — 164 Acquisition and operating expenses, net of deferrals 20 (2 ) 247 — 265 Amortization of deferred acquisition costs and intangibles — — 83 — 83 Interest expense — 66 12 (5 ) 73 Total benefits and expenses 20 64 1,850 (5 ) 1,929 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (21 ) (62 ) 369 — 286 Provision (benefit) for income taxes (5 ) (21 ) 128 — 102 Equity in income of subsidiaries 123 71 — (194 ) — Income from continuing operations 107 30 241 (194 ) 184 Income (loss) from discontinued operations, net of taxes — 4 (13 ) — (9 ) Net income 107 34 228 (194 ) 175 Less: net income attributable to noncontrolling interests — — 68 — 68 Net income available to Genworth Financial, Inc.’s common stockholders $ 107 $ 34 $ 160 $ (194 ) $ 107 The following table presents the condensed consolidating income statement information for the three months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 1,108 $ — $ 1,108 Net investment income (2 ) 1 810 (4 ) 805 Net investment gains (losses) — (1 ) 21 — 20 Policy fees and other income — — 217 — 217 Total revenues (2 ) — 2,156 (4 ) 2,150 Benefits and expenses: Benefits and other changes in policy reserves — — 1,662 — 1,662 Interest credited — — 173 — 173 Acquisition and operating expenses, net of deferrals 13 — 256 — 269 Amortization of deferred acquisition costs and intangibles — — 94 — 94 Interest expense — 69 12 (4 ) 77 Total benefits and expenses 13 69 2,197 (4 ) 2,275 Loss from continuing operations before income taxes and equity in loss of subsidiaries (15 ) (69 ) (41 ) — (125 ) Provision (benefit) for income taxes (4 ) 155 71 — 222 Equity in loss of subsidiaries (369 ) (207 ) — 576 — Loss from continuing operations (380 ) (431 ) (112 ) 576 (347 ) Income from discontinued operations, net of taxes — 11 4 — 15 Net loss (380 ) (420 ) (108 ) 576 (332 ) Less: net income attributable to noncontrolling interests — — 48 — 48 Net loss available to Genworth Financial, Inc.’s common stockholders $ (380 ) $ (420 ) $ (156 ) $ 576 $ (380 ) The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 3,382 $ — $ 3,382 Net investment income (3 ) 5 2,397 (11 ) 2,388 Net investment gains (losses) — (12 ) 232 — 220 Policy fees and other income — 3 617 (1 ) 619 Total revenues (3 ) (4 ) 6,628 (12 ) 6,609 Benefits and expenses: Benefits and other changes in policy reserves — — 3,796 — 3,796 Interest credited — — 494 — 494 Acquisition and operating expenses, net of deferrals 48 (2 ) 729 — 775 Amortization of deferred acquisition costs and intangibles — — 316 — 316 Interest expense — 187 34 (12 ) 209 Total benefits and expenses 48 185 5,369 (12 ) 5,590 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (51 ) (189 ) 1,259 — 1,019 Provision (benefit) for income taxes (9 ) (65 ) 422 — 348 Equity in income of subsidiaries 506 339 — (845 ) — Income from continuing operations 464 215 837 (845 ) 671 Income (loss) from discontinued operations, net of taxes — 4 (13 ) — (9 ) Net income 464 219 824 (845 ) 662 Less: net income attributable to noncontrolling interests — — 198 — 198 Net income available to Genworth Financial, Inc.’s common stockholders $ 464 $ 219 $ 626 $ (845 ) $ 464 The following table presents the condensed consolidating income statement information for the nine months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 3,029 $ — $ 3,029 Net investment income (3 ) 1 2,386 (11 ) 2,373 Net investment gains (losses) — (14 ) 45 — 31 Policy fees and other income — (6 ) 745 (1 ) 738 Total revenues (3 ) (19 ) 6,205 (12 ) 6,171 Benefits and expenses: Benefits and other changes in policy reserves — — 3,715 — 3,715 Interest credited — — 523 — 523 Acquisition and operating expenses, net of deferrals 118 38 834 — 990 Amortization of deferred acquisition costs and intangibles — — 305 — 305 Interest expense 1 210 63 (12 ) 262 Total benefits and expenses 119 248 5,440 (12 ) 5,795 Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries (122 ) (267 ) 765 — 376 Provision (benefit) for income taxes (31 ) 88 298 — 355 Equity in income (loss) of subsidiaries (62 ) 78 — (16 ) — Income (loss) from continuing operations (153 ) (277 ) 467 (16 ) 21 Loss from discontinued operations, net of taxes (2 ) (7 ) (16 ) — (25 ) Net income (loss) (155 ) (284 ) 451 (16 ) (4 ) Less: net income attributable to noncontrolling interests — — 151 — 151 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (155 ) $ (284 ) $ 300 $ (16 ) $ (155 ) |
Condensed Consolidating Statement of Comprehensive Income | The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 107 $ 34 $ 228 $ (194 ) $ 175 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (72 ) (71 ) (89 ) 143 (89 ) Derivatives qualifying as hedges (12 ) (12 ) (12 ) 24 (12 ) Foreign currency translation and other adjustments 24 12 80 (35 ) 81 Total other comprehensive income (loss) (60 ) (71 ) (21 ) 132 (20 ) Total comprehensive income (loss) 47 (37 ) 207 (62 ) 155 Less: comprehensive income attributable to noncontrolling interests — — 108 — 108 Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ 47 $ (37 ) $ 99 $ (62 ) $ 47 The following table presents the condensed consolidating comprehensive income statement information for the three months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net loss $ (380 ) $ (420 ) $ (108 ) $ 576 $ (332 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 66 63 73 (130 ) 72 Net unrealized gains (losses) on other-than-temporarily impaired securities 5 4 4 (8 ) 5 Derivatives qualifying as hedges 54 54 57 (111 ) 54 Foreign currency translation and other adjustments (11 ) (3 ) — 13 (1 ) Total other comprehensive income (loss) 114 118 134 (236 ) 130 Total comprehensive income (loss) (266 ) (302 ) 26 340 (202 ) Less: comprehensive income attributable to noncontrolling interests — — 64 — 64 Total comprehensive loss available to Genworth Financial, Inc.’s common stockholders $ (266 ) $ (302 ) $ (38 ) $ 340 $ (266 ) The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 464 $ 219 $ 824 $ (845 ) $ 662 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (155 ) (172 ) (173 ) 327 (173 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 1 (2 ) 1 Derivatives qualifying as hedges (33 ) (33 ) (32 ) 65 (33 ) Foreign currency translation and other adjustments 128 109 260 (236 ) 261 Total other comprehensive income (loss) (59 ) (95 ) 56 154 56 Total comprehensive income 405 124 880 (691 ) 718 Less: comprehensive income attributable to noncontrolling interests — — 313 — 313 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 405 $ 124 $ 567 $ (691 ) $ 405 The following table presents the condensed consolidating comprehensive income statement information for the nine months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (155 ) $ (284 ) $ 451 $ (16 ) $ (4 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 1,600 1,555 1,625 (3,156 ) 1,624 Net unrealized gains (losses) on other-than-temporarily impaired securities 6 5 6 (11 ) 6 Derivatives qualifying as hedges 448 447 481 (928 ) 448 Foreign currency translation and other adjustments 138 65 224 (204 ) 223 Total other comprehensive income (loss) 2,192 2,072 2,336 (4,299 ) 2,301 Total comprehensive income 2,037 1,788 2,787 (4,315 ) 2,297 Less: comprehensive income attributable to noncontrolling interests — — 260 — 260 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 2,037 $ 1,788 $ 2,527 $ (4,315 ) $ 2,037 |
Condensed Consolidating Statement of Cash Flows | The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income $ 464 $ 219 $ 824 $ (845 ) $ 662 Less loss from discontinued operations, net of taxes — (4 ) 13 — 9 Adjustments to reconcile net income to net cash from operating activities: Equity in income from subsidiaries (506 ) (339 ) — 845 — Dividends from subsidiaries — 119 (119 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 4 (111 ) — (107 ) Net investment (gains) losses — 12 (232 ) — (220 ) Charges assessed to policyholders — — (534 ) — (534 ) Acquisition costs deferred — — (67 ) — (67 ) Amortization of deferred acquisition costs and intangibles — — 316 — 316 Deferred income taxes 6 (47 ) 275 — 234 Trading securities, held-for-sale — (46 ) 762 — 716 Stock-based compensation expense 23 — 6 — 29 Change in certain assets and liabilities: Accrued investment income and other assets 2 (2 ) (25 ) 4 (21 ) Insurance reserves — — 1,202 — 1,202 Current tax liabilities (6 ) (75 ) 54 — (27 ) Other liabilities, policy and contract claims and other policy-related balances (29 ) 34 (259 ) (6 ) (260 ) Net cash from operating activities (46 ) (125 ) 2,105 (2 ) 1,932 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 3,396 — 3,396 Commercial mortgage loans — — 454 — 454 Restricted commercial mortgage loans related to securitization entities — — 18 — 18 Proceeds from sales of investments: Fixed maturity and equity securities — — 3,269 — 3,269 Purchases and originations of investments: Fixed maturity and equity securities — — (6,709 ) — (6,709 ) Commercial mortgage loans — — (608 ) — (608 ) Other invested assets, net — 25 (548 ) 2 (521 ) Policy loans, net — — 28 — 28 Intercompany notes receivable — (77 ) 34 43 — Capital contributions to subsidiaries (7 ) — 7 — — Payments for business purchased, net of cash acquired (7 ) — 2 — (5 ) Net cash used by investing activities (14 ) (52 ) (657 ) 45 (678 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 902 — 902 Withdrawals from universal life and investment contracts — — (2,003 ) — (2,003 ) Repayment of borrowings related to securitization entities — — (16 ) — (16 ) Repurchase of subsidiary shares — — (31 ) — (31 ) Dividends paid to noncontrolling interests — — (92 ) — (92 ) Proceeds from intercompany notes payable 61 (35 ) 17 (43 ) — Other, net (1 ) (32 ) 3 — (30 ) Net cash used by financing activities 60 (67 ) (1,220 ) (43 ) (1,270 ) Effect of exchange rate changes on cash and cash equivalents — — 68 — 68 Net change in cash and cash equivalents — (244 ) 296 — 52 Cash and cash equivalents at beginning of period — 998 1,786 — 2,784 Cash and cash equivalents at end of period $ — $ 754 $ 2,082 $ — $ 2,836 The following table presents the condensed consolidating cash flows statement information for the nine months ended September 30, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from operating activities: Net income (loss) $ (155 ) $ (284 ) $ 451 $ (16 ) $ (4 ) Less loss from discontinued operations, net of taxes 2 7 16 — 25 Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in (income) loss from subsidiaries 62 (78 ) — 16 — Dividends from subsidiaries — 250 (250 ) — — (Gain) loss on sale of businesses — 1 (27 ) — (26 ) Amortization of fixed maturity securities discounts and premiums and limited partnerships — 3 (115 ) — (112 ) Net investment (gains) losses — 14 (45 ) — (31 ) Charges assessed to policyholders — — (574 ) — (574 ) Acquisition costs deferred — — (124 ) — (124 ) Amortization of deferred acquisition costs and intangibles — — 305 — 305 Deferred income taxes 8 304 (139 ) — 173 Trading securities, held-for-sale — 5 754 — 759 Stock-based compensation expense 18 — 7 — 25 Change in certain assets and liabilities: Accrued investment income and other assets (3 ) (4 ) (246 ) (5 ) (258 ) Insurance reserves — — 691 — 691 Current tax liabilities 11 (4 ) 37 — 44 Other liabilities, policy and contract claims and other policy-related balances (1 ) (22 ) 928 — 905 Net cash from operating activities (58 ) 192 1,669 (5 ) 1,798 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 150 2,496 — 2,646 Commercial mortgage loans — — 555 — 555 Restricted commercial mortgage loans related to securitization entities — — 27 — 27 Proceeds from sales of investments: Fixed maturity and equity securities — — 4,064 — 4,064 Purchases and originations of investments: Fixed maturity and equity securities — — (8,758 ) — (8,758 ) Commercial mortgage loans — — (405 ) — (405 ) Other invested assets, net — — (143 ) 5 (138 ) Policy loans, net — — (80 ) — (80 ) Intercompany notes receivable — (58 ) (18 ) 76 — Proceeds from sale of businesses, net of cash transferred — 1 38 — 39 Net cash used by investing activities — 93 (2,224 ) 81 (2,050 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 1,028 — 1,028 Withdrawals from universal life and investment contracts — — (1,463 ) — (1,463 ) Redemption of non-recourse — — (1,620 ) — (1,620 ) Repayment and repurchase of long-term debt — (326 ) (36 ) — (362 ) Repayment of borrowings related to securitization entities — — (37 ) — (37 ) Return of capital to noncontrolling interests — — (70 ) — (70 ) Dividends paid to noncontrolling interests — — (126 ) — (126 ) Proceeds from intercompany notes payable 58 18 — (76 ) — Other, net — (36 ) (13 ) — (49 ) Net cash used by financing activities 58 (344 ) (2,337 ) (76 ) (2,699 ) Effect of exchange rate changes on cash and cash equivalents — — 36 — 36 Net change in cash and cash equivalents — (59 ) (2,856 ) — (2,915 ) Cash and cash equivalents at beginning of period — 1,124 4,869 — 5,993 Cash and cash equivalents at end of period $ — $ 1,065 $ 2,013 $ — $ 3,078 |
Formation of Genworth and Bas32
Formation of Genworth and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Billions | Oct. 21, 2016USD ($)$ / shares | Sep. 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 | Sep. 30, 2017 |
Accounting Policies [Abstract] | ||
Cumulative effect on retained earnings | $ 9 | |
Accounting for Stock Compensation | ||
Accounting Policies [Abstract] | ||
Cumulative effect on retained earnings | $ 9 | |
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Limited Partner | ||
Accounting Policies [Abstract] | ||
Cumulative effect on retained earnings | 25 | |
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Equity Securities | ||
Accounting Policies [Abstract] | ||
Cumulative effect on retained earnings | $ 45 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Earnings (Loss) Per Share [Abstract] | |||||
Weighted-average shares used in basic earnings (loss) per share calculations | 499.1 | 498.3 | 498.9 | 498.3 | |
Stock options, restricted stock units and stock appreciation rights | 2.5 | 0 | 2.3 | 0 | |
Weighted-average shares used in diluted earnings (loss) per share calculations | [1] | 501.6 | 498.3 | 501.2 | 498.3 |
Income (loss) from continuing operations: | |||||
Income (loss) from continuing operations | $ 184 | $ (347) | $ 671 | $ 21 | |
Less: income from continuing operations attributable to noncontrolling interests | 68 | 48 | 198 | 151 | |
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ 116 | $ (395) | $ 473 | $ (130) | |
Basic per share | $ 0.23 | $ (0.79) | $ 0.95 | $ (0.26) | |
Diluted per share | $ 0.23 | $ (0.79) | $ 0.94 | $ (0.26) | |
Income (loss) from discontinued operations: | |||||
Income (loss) from discontinued operations, net of taxes | $ (9) | $ 15 | $ (9) | $ (25) | |
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests | 0 | 0 | 0 | 0 | |
Income (loss) from discontinued operations, net of taxes, available to Genworth Financial, Inc.'s common stockholders | $ (9) | $ 15 | $ (9) | $ (25) | |
Basic per share | $ (0.02) | $ 0.03 | $ (0.02) | $ (0.05) | |
Diluted per share | $ (0.02) | $ 0.03 | $ (0.02) | $ (0.05) | |
Net income (loss): | |||||
Income (loss) from continuing operations | $ 184 | $ (347) | $ 671 | $ 21 | |
Income (loss) from discontinued operations, net of taxes | (9) | 15 | (9) | (25) | |
Net income (loss) | 175 | (332) | 662 | (4) | |
Less: net income attributable to noncontrolling interests | 68 | 48 | 198 | 151 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 107 | $ (380) | $ 464 | $ (155) | |
Basic per share | $ 0.21 | $ (0.76) | $ 0.93 | $ (0.31) | |
Diluted per share | $ 0.21 | $ (0.76) | $ 0.93 | $ (0.31) | |
[1] | Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three and nine months ended September 30, 2016, we were required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 2.2 million and 1.8 million, respectively, would have been antidilutive to the calculation. If we had not incurred a loss from continuing operations available to Genworth Financial, Inc.'s common stockholders for the three months and nine months ended September 30, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.1 million, respectively. |
Earnings (Loss) Per Share (Pare
Earnings (Loss) Per Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Earnings Per Share Disclosure [Line Items] | ||
Weighted-average diluted common shares outstanding, antidilutive securities (stock options, RSUs and SARs) | 2.2 | 1.8 |
Weighted-average number of diluted shares if not in a loss position | 500.5 | 500.1 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 821 | $ 825 | $ 2,456 | $ 2,435 |
Expenses and fees | (24) | (20) | (68) | (62) |
Net investment income | 797 | 805 | 2,388 | 2,373 |
Fixed maturity securities - taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 640 | 655 | 1,930 | 1,930 |
Fixed maturity securities - non-taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 3 | 3 | 9 | 9 |
Commercial mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 78 | 79 | 231 | 237 |
Restricted commercial mortgage loans related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 3 | 3 | 7 | 8 |
Equity Securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 9 | 8 | 26 | 20 |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 39 | 34 | 106 | 105 |
Restricted other invested assets related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 0 | 0 | 1 | 3 |
Policy Loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 39 | 38 | 120 | 107 |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 10 | $ 5 | $ 26 | $ 16 |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Investments [Abstract] | |||||
Realized gains | $ 40 | $ 39 | $ 177 | $ 205 | |
Realized losses | (10) | (24) | (55) | (75) | |
Net realized gains (losses) on available-for-sale securities | 30 | 15 | 122 | 130 | |
Total other-than-temporary impairments | (1) | (2) | (4) | (35) | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 0 | 0 | |
Net other-than-temporary impairments | (1) | (2) | (4) | (35) | |
Trading securities | 0 | (4) | 1 | 40 | |
Commercial mortgage loans | 1 | (1) | 3 | 1 | |
Net gains (losses) related to securitization entities | 1 | 2 | 5 | (51) | |
Derivative instruments | [1] | 54 | 10 | 93 | (52) |
Contingent consideration adjustment | 0 | 0 | 0 | (2) | |
Net investment gains (losses) | $ 85 | $ 20 | $ 220 | $ 31 | |
[1] | See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). |
Investments - Additional Inform
Investments - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($)LoanMortgageLoan | Sep. 30, 2016USD ($)Loan | Sep. 30, 2017USD ($)LoanMortgageLoan | Sep. 30, 2016USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Schedule of Investments [Line Items] | |||||
Aggregate fair value of securities sold | $ 286 | $ 293 | $ 1,390 | $ 833 | |
Aggregate fair value of securities sold, percentage of book value | 97.00% | 95.00% | 96.00% | 93.00% | |
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 | $ 97 | $ 97 | $ 134 | ||
Investments subject to call provisions | 12,426 | $ 12,426 | |||
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 | ||
Number of commercial mortgage loans on nonaccrual status, past due less than 90 days | MortgageLoan | 1 | 1 | |||
Commercial mortgage loans on nonaccrual status, past due less than 90 days | $ 0 | ||||
Commercial mortgage loans modified or extended, number of loans | Loan | 7 | 7 | 16 | ||
Commercial mortgage loans modified or extended, carrying value | $ 19 | $ 19 | $ 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 | $ 6,281 | $ 6,281 | 6,125 | ||
Investments in partnerships or similar entities generally considered VIEs | 208 | 208 | 178 | ||
Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | 88 | 88 | 116 | ||
Fixed maturity securities | Less Than 20 Percent Below Cost | |||||
Schedule of Investments [Line Items] | |||||
12 months or more, Gross unrealized losses | $ 88 | $ 88 | 90 | ||
12 months or more, average fair value percentage below cost for securities in a continuous loss position | 5.00% | 5.00% | |||
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 | $ 90 | $ 90 | $ 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 | 92.00% | 92.00% | |||
Industrial | |||||
Schedule of Investments [Line Items] | |||||
Number of loans | Loan | 1 | ||||
Individually impaired commercial mortgage loans | $ 12 | ||||
Impaired loans, unpaid principal balance | 15 | ||||
Individually impaired loans, charge-offs | 3 | ||||
Commercial mortgage loans, recorded investment | $ 1,608 | $ 1,608 | 1,533 | ||
Retail | |||||
Schedule of Investments [Line Items] | |||||
Number of loans | Loan | 1 | 1 | |||
Individually impaired commercial mortgage loans | $ 5 | $ 5 | |||
Impaired loans, unpaid principal balance | $ 7 | 7 | |||
Individually impaired loans, charge-offs | 2 | ||||
Individually impaired loans, average recorded investment | $ 3 | ||||
Commercial mortgage loans, recorded investment | $ 2,220 | $ 2,220 | $ 2,178 | ||
Finance and insurance | Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
Percent of investment portfolio, greater than 10% | 23.00% | ||||
Utilities | Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
Percent of investment portfolio, greater than 10% | 15.00% | ||||
Consumer-non-cyclical | Fixed maturity securities | |||||
Schedule of Investments [Line Items] | |||||
Percent of investment portfolio, greater than 10% | 13.00% |
Credit Losses Recognized in Net
Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ||||
Cumulative credit losses, beginning balance | $ 38 | $ 62 | $ 42 | $ 64 |
Other-than-temporary impairments not previously recognized | 0 | 0 | 0 | 1 |
Securities sold, paid down or disposed | (5) | (8) | (9) | (11) |
Cumulative credit losses, ending balance | $ 33 | $ 54 | $ 33 | $ 54 |
Net Unrealized Gains and Losses
Net Unrealized Gains and Losses on Available-for-Sale Investment Securities Reflected as Separate Component of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 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 | $ (3,134) | $ (1,611) | |||||
Income taxes, net | (619) | (711) | |||||
Net unrealized investment gains (losses) including noncontrolling interests | 1,174 | 1,346 | |||||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 66 | 84 | |||||
Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. | 1,108 | $ 1,180 | 1,262 | $ 2,860 | $ 2,789 | $ 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 | 4,878 | 3,656 | |||||
Equity securities | 49 | 12 | |||||
Subtotal | [1] | $ 4,927 | $ 3,668 | ||||
[1] | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments [Abstract] | ||||
Net unrealized investment gains (losses), beginning of period | $ 1,180 | $ 2,789 | $ 1,262 | $ 1,254 |
Unrealized gains (losses) on investment securities | (10) | 228 | 1,377 | 3,584 |
Adjustment to deferred acquisition costs | (1) | (17) | (1,047) | (291) |
Adjustment to present value of future profits | (3) | 3 | (36) | (26) |
Adjustment to sales inducements | 0 | (6) | (11) | (46) |
Adjustment to benefit reserves | (92) | (81) | (429) | (612) |
Provision for income taxes | 36 | (41) | 51 | (917) |
Change in unrealized gains (losses) on investment securities | (70) | 86 | (95) | 1,692 |
Reclassification adjustments to net investment (gains) losses, net of taxes | (19) | (9) | (77) | (62) |
Change in net unrealized investment gains (losses) | (89) | 77 | (172) | 1,630 |
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | (17) | 6 | (18) | 24 |
Net unrealized investment gains (losses), end of period | $ 1,108 | $ 2,860 | $ 1,108 | $ 2,860 |
Change in Net Unrealized Gain42
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 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 | $ 10 | $ 4 | $ 41 | $ 33 |
Amortized Cost or Cost, Gross U
Amortized Cost or Cost, Gross Unrealized Gains (Losses) and Fair Value of Fixed Maturity and Equity Securities Classified as Available-for-Sale (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | $ 57,763 | $ 57,014 |
Fair value, fixed maturity securities | 62,552 | 60,572 |
Amortized cost or cost, equity securities | 720 | 628 |
Fair value, equity securities | 765 | 632 |
Amortized cost or cost, total | 58,483 | 57,642 |
Fair value, total | 63,317 | 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 | 4,893 | 5,439 |
Fair value, fixed maturity securities | 5,670 | 6,036 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,639 | 2,515 |
Fair value, fixed maturity securities | 2,860 | 2,647 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,143 | 2,024 |
Fair value, fixed maturity securities | 2,226 | 2,107 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 25,930 | 24,943 |
Fair value, fixed maturity securities | 28,482 | 26,828 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,382 | 4,137 |
Fair value, fixed maturity securities | 4,923 | 4,550 |
Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,243 | 2,167 |
Fair value, fixed maturity securities | 2,440 | 2,300 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 6,051 | 5,719 |
Fair value, fixed maturity securities | 6,587 | 6,097 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,330 | 4,335 |
Fair value, fixed maturity securities | 4,828 | 4,734 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,558 | 2,473 |
Fair value, fixed maturity securities | 2,740 | 2,598 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,247 | 1,161 |
Fair value, fixed maturity securities | 1,346 | 1,223 |
Fixed maturity securities | U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,067 | 2,043 |
Fair value, fixed maturity securities | 2,321 | 2,258 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,506 | 1,455 |
Fair value, fixed maturity securities | 1,611 | 1,530 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,188 | 1,121 |
Fair value, fixed maturity securities | 1,306 | 1,190 |
Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 358 | 332 |
Fair value, fixed maturity securities | 380 | 348 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 11,810 | 11,717 |
Fair value, fixed maturity securities | 12,623 | 12,295 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,022 | 940 |
Fair value, fixed maturity securities | 1,062 | 969 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,330 | 1,234 |
Fair value, fixed maturity securities | 1,463 | 1,331 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,524 | 2,413 |
Fair value, fixed maturity securities | 2,696 | 2,538 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 692 | 711 |
Fair value, fixed maturity securities | 716 | 714 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 945 | 953 |
Fair value, fixed maturity securities | 1,014 | 987 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 979 | 928 |
Fair value, fixed maturity securities | 1,058 | 958 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 556 | 518 |
Fair value, fixed maturity securities | 587 | 535 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 518 | 434 |
Fair value, fixed maturity securities | 527 | 442 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 650 | 619 |
Fair value, fixed maturity securities | 718 | 677 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,594 | 2,967 |
Fair value, fixed maturity securities | 2,782 | 3,144 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,950 | 4,122 |
Fair value, fixed maturity securities | 4,209 | 4,379 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,346 | 3,084 |
Fair value, fixed maturity securities | 3,414 | 3,129 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,052 | 3,170 |
Fair value, fixed maturity securities | 3,068 | 3,151 |
Not other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 5,001 | 4,095 |
Gross unrealized losses, fixed maturity securities | (229) | (551) |
Gross unrealized gains, equity securities | 59 | 31 |
Gross unrealized losses, equity securities | (14) | (27) |
Gross unrealized gains | 5,060 | 4,126 |
Gross unrealized losses | (243) | (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 | 784 | 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 | 247 | 182 |
Gross unrealized losses, fixed maturity securities | (26) | (50) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 107 | 101 |
Gross unrealized losses, fixed maturity securities | (24) | (18) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 2,635 | 2,124 |
Gross unrealized losses, fixed maturity securities | (83) | (239) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 556 | 454 |
Gross unrealized losses, fixed maturity securities | (15) | (41) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 207 | 157 |
Gross unrealized losses, fixed maturity securities | (10) | (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 | 547 | 424 |
Gross unrealized losses, fixed maturity securities | (11) | (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 | 508 | 433 |
Gross unrealized losses, fixed maturity securities | (10) | (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 | 193 | 157 |
Gross unrealized losses, fixed maturity securities | (11) | (32) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 102 | 76 |
Gross unrealized losses, fixed maturity securities | (3) | (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 | 263 | 228 |
Gross unrealized losses, fixed maturity securities | (9) | (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 | 111 | 92 |
Gross unrealized losses, fixed maturity securities | (6) | (17) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 124 | 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 | 24 | 17 |
Gross unrealized losses, fixed maturity securities | (2) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 848 | 669 |
Gross unrealized losses, fixed maturity securities | (35) | (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 | 45 | 40 |
Gross unrealized losses, fixed maturity securities | (5) | (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 | 140 | 109 |
Gross unrealized losses, fixed maturity securities | (7) | (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 | 177 | 134 |
Gross unrealized losses, fixed maturity securities | (5) | (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 | 27 | 17 |
Gross unrealized losses, fixed maturity securities | (3) | (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 | 71 | 44 |
Gross unrealized losses, fixed maturity securities | (2) | (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 | 81 | 39 |
Gross unrealized losses, fixed maturity securities | (2) | (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 | 33 | 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 | 10 | 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 | 71 | 65 |
Gross unrealized losses, fixed maturity securities | (3) | (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 | 193 | 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 | 255 | 259 |
Gross unrealized losses, fixed maturity securities | (10) | (12) |
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 105 | 98 |
Gross unrealized losses, fixed maturity securities | (39) | (56) |
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 20 | 15 |
Gross unrealized losses, fixed maturity securities | (5) | (35) |
Other-than-temporary impairments | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 17 | 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 | 17 | 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 | 14 | 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 | Sep. 30, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 7,626 | $ 12,697 |
Less than 12 months, Gross unrealized losses | $ (146) | $ (444) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,131 | 1,872 |
12 months or more, Fair value | $ 1,830 | $ 1,737 |
12 months or more, Gross unrealized losses | $ (97) | $ (134) |
12 months or more, Number of securities in a continuous loss position | Securities | 370 | 322 |
Fair value | $ 9,456 | $ 14,434 |
Gross unrealized losses | $ (243) | $ (578) |
Number of securities in a continuous loss position | Securities | 1,501 | 2,194 |
Investment grade | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 7,437 | $ 12,339 |
Less than 12 months, Gross unrealized losses | $ (139) | $ (432) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 984 | 1,657 |
12 months or more, Fair value | $ 1,656 | $ 1,354 |
12 months or more, Gross unrealized losses | $ (90) | $ (108) |
12 months or more, Number of securities in a continuous loss position | Securities | 287 | 250 |
Fair value | $ 9,093 | $ 13,693 |
Gross unrealized losses | $ (229) | $ (540) |
Number of securities in a continuous loss position | Securities | 1,271 | 1,907 |
Below investment grade | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 189 | $ 358 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 147 | 215 |
12 months or more, Fair value | $ 174 | $ 383 |
12 months or more, Gross unrealized losses | $ (7) | $ (26) |
12 months or more, Number of securities in a continuous loss position | Securities | 83 | 72 |
Fair value | $ 363 | $ 741 |
Gross unrealized losses | $ (14) | $ (38) |
Number of securities in a continuous loss position | Securities | 230 | 287 |
Fixed maturity securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 7,544 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (141) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 989 | 1,690 |
12 months or more, Fair value | $ 1,719 | $ 1,623 |
12 months or more, Gross unrealized losses | $ (88) | $ (116) |
12 months or more, Number of securities in a continuous loss position | Securities | 281 | 275 |
Fair value | $ 9,263 | $ 14,201 |
Gross unrealized losses | $ (229) | $ (551) |
Number of securities in a continuous loss position | Securities | 1,270 | 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 | $ 7,544 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (141) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 989 | 1,690 |
12 months or more, Fair value | $ 1,719 | $ 1,543 |
12 months or more, Gross unrealized losses | $ (88) | $ (90) |
12 months or more, Number of securities in a continuous loss position | Securities | 281 | 267 |
Fair value | $ 9,263 | $ 14,121 |
Gross unrealized losses | $ (229) | $ (525) |
Number of securities in a continuous loss position | Securities | 1,270 | 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 | |
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 | $ 80 | |
12 months or more, Gross unrealized losses | $ (26) | |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | |
Fair value | $ 80 | |
Gross unrealized losses | $ (26) | |
Number of securities in a continuous loss position | Securities | 8 | |
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 | $ 283 | $ 1,074 |
Less than 12 months, Gross unrealized losses | $ (6) | $ (50) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 22 | 37 |
12 months or more, Fair value | $ 31 | $ 0 |
12 months or more, Gross unrealized losses | $ (1) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 0 |
Fair value | $ 314 | $ 1,074 |
Gross unrealized losses | $ (7) | $ (50) |
Number of securities in a continuous loss position | Securities | 26 | 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 | $ 213 | $ 644 |
Less than 12 months, Gross unrealized losses | $ (5) | $ (32) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 45 | 109 |
12 months or more, Fair value | $ 230 | $ 142 |
12 months or more, Gross unrealized losses | $ (21) | $ (18) |
12 months or more, Number of securities in a continuous loss position | Securities | 23 | 12 |
Fair value | $ 443 | $ 786 |
Gross unrealized losses | $ (26) | $ (50) |
Number of securities in a continuous loss position | Securities | 68 | 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 | $ 922 | $ 497 |
Less than 12 months, Gross unrealized losses | $ (23) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 36 | 51 |
12 months or more, Fair value | $ 24 | $ 0 |
12 months or more, Gross unrealized losses | $ (1) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 14 | 0 |
Fair value | $ 946 | $ 497 |
Gross unrealized losses | $ (24) | $ (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 | $ 2,335 | $ 5,221 |
Less than 12 months, Gross unrealized losses | $ (47) | $ (190) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 333 | 711 |
12 months or more, Fair value | $ 766 | $ 662 |
12 months or more, Gross unrealized losses | $ (36) | $ (49) |
12 months or more, Number of securities in a continuous loss position | Securities | 106 | 94 |
Fair value | $ 3,101 | $ 5,883 |
Gross unrealized losses | $ (83) | $ (239) |
Number of securities in a continuous loss position | Securities | 439 | 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 | $ 1,562 | $ 2,257 |
Less than 12 months, Gross unrealized losses | $ (22) | $ (66) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 222 | 330 |
12 months or more, Fair value | $ 261 | $ 408 |
12 months or more, Gross unrealized losses | $ (13) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 36 | 57 |
Fair value | $ 1,823 | $ 2,665 |
Gross unrealized losses | $ (35) | $ (91) |
Number of securities in a continuous loss position | Securities | 258 | 387 |
Fixed maturity securities | Residential mortgage-backed | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 656 | $ 725 |
Less than 12 months, Gross unrealized losses | $ (9) | $ (11) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 80 | 100 |
12 months or more, Fair value | $ 33 | $ 58 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 28 | 35 |
Fair value | $ 689 | $ 783 |
Gross unrealized losses | $ (10) | $ (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 | $ 837 | $ 1,091 |
Less than 12 months, Gross unrealized losses | $ (25) | $ (55) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 120 | 168 |
12 months or more, Fair value | $ 201 | $ 25 |
12 months or more, Gross unrealized losses | $ (14) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 30 | 9 |
Fair value | $ 1,038 | $ 1,116 |
Gross unrealized losses | $ (39) | $ (56) |
Number of securities in a continuous loss position | Securities | 150 | 177 |
Fixed maturity securities | Other asset-backed | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 736 | $ 1,069 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (13) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 131 | 184 |
12 months or more, Fair value | $ 173 | $ 328 |
12 months or more, Gross unrealized losses | $ (1) | $ (22) |
12 months or more, Number of securities in a continuous loss position | Securities | 40 | 68 |
Fair value | $ 909 | $ 1,397 |
Gross unrealized losses | $ (5) | $ (35) |
Number of securities in a continuous loss position | Securities | 171 | 252 |
Equity Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss [Abstract] | ||
Less than 12 months, Fair value | $ 82 | $ 119 |
Less than 12 months, Gross unrealized losses | $ (5) | $ (9) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 142 | 182 |
12 months or more, Fair value | $ 111 | $ 114 |
12 months or more, Gross unrealized losses | $ (9) | $ (18) |
12 months or more, Number of securities in a continuous loss position | Securities | 89 | 47 |
Fair value | $ 193 | $ 233 |
Gross unrealized losses | $ (14) | $ (27) |
Number of securities in a continuous loss position | Securities | 231 | 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 | $ 79 | $ 118 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 139 | 167 |
12 months or more, Fair value | $ 111 | $ 101 |
12 months or more, Gross unrealized losses | $ (9) | $ (14) |
12 months or more, Number of securities in a continuous loss position | Securities | 89 | 38 |
Fair value | $ 190 | $ 219 |
Gross unrealized losses | $ (13) | $ (22) |
Number of securities in a continuous loss position | Securities | 228 | 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 | $ 3 | $ 1 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 3 | 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 | $ 3 | $ 14 |
Gross unrealized losses | $ (1) | $ (5) |
Number of securities in a continuous loss position | Securities | 3 | 24 |
Gross Unrealized Losses and F45
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Sep. 30, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 7,626 | $ 12,697 |
Less than 12 months, Gross unrealized losses | $ (146) | $ (444) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,131 | 1,872 |
12 months or more, Fair value | $ 1,830 | $ 1,737 |
12 months or more, Gross unrealized losses | $ (97) | $ (134) |
12 months or more, Number of securities in a continuous loss position | Securities | 370 | 322 |
Fair value | $ 9,456 | $ 14,434 |
Gross unrealized losses | $ (243) | $ (578) |
Number of securities in a continuous loss position | Securities | 1,501 | 2,194 |
Fixed maturity securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 7,544 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (141) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 989 | 1,690 |
12 months or more, Fair value | $ 1,719 | $ 1,623 |
12 months or more, Gross unrealized losses | $ (88) | $ (116) |
12 months or more, Number of securities in a continuous loss position | Securities | 281 | 275 |
Fair value | $ 9,263 | $ 14,201 |
Gross unrealized losses | $ (229) | $ (551) |
Number of securities in a continuous loss position | Securities | 1,270 | 1,965 |
Fixed maturity securities | U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 2,335 | $ 5,221 |
Less than 12 months, Gross unrealized losses | $ (47) | $ (190) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 333 | 711 |
12 months or more, Fair value | $ 766 | $ 662 |
12 months or more, Gross unrealized losses | $ (36) | $ (49) |
12 months or more, Number of securities in a continuous loss position | Securities | 106 | 94 |
Fair value | $ 3,101 | $ 5,883 |
Gross unrealized losses | $ (83) | $ (239) |
Number of securities in a continuous loss position | Securities | 439 | 805 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 468 | $ 855 |
Less than 12 months, Gross unrealized losses | $ (10) | $ (39) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 69 | 130 |
12 months or more, Fair value | $ 104 | $ 21 |
12 months or more, Gross unrealized losses | $ (5) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 17 | 5 |
Fair value | $ 572 | $ 876 |
Gross unrealized losses | $ (15) | $ (41) |
Number of securities in a continuous loss position | Securities | 86 | 135 |
Fixed maturity securities | U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 123 | $ 190 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 22 | 30 |
12 months or more, Fair value | $ 146 | $ 276 |
12 months or more, Gross unrealized losses | $ (9) | $ (19) |
12 months or more, Number of securities in a continuous loss position | Securities | 16 | 38 |
Fair value | $ 269 | $ 466 |
Gross unrealized losses | $ (10) | $ (24) |
Number of securities in a continuous loss position | Securities | 38 | 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 | $ 542 | $ 1,438 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (38) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 75 | 177 |
12 months or more, Fair value | $ 154 | $ 113 |
12 months or more, Gross unrealized losses | $ (4) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 21 | 15 |
Fair value | $ 696 | $ 1,551 |
Gross unrealized losses | $ (11) | $ (46) |
Number of securities in a continuous loss position | Securities | 96 | 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 | $ 325 | $ 921 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (34) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 50 | 117 |
12 months or more, Fair value | $ 84 | $ 0 |
12 months or more, Gross unrealized losses | $ (3) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 12 | 0 |
Fair value | $ 409 | $ 921 |
Gross unrealized losses | $ (10) | $ (34) |
Number of securities in a continuous loss position | Securities | 62 | 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 | $ 208 | $ 507 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (22) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 30 | 70 |
12 months or more, Fair value | $ 127 | $ 126 |
12 months or more, Gross unrealized losses | $ (7) | $ (10) |
12 months or more, Number of securities in a continuous loss position | Securities | 19 | 17 |
Fair value | $ 335 | $ 633 |
Gross unrealized losses | $ (11) | $ (32) |
Number of securities in a continuous loss position | Securities | 49 | 87 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 55 | $ 226 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (7) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 12 | 38 |
12 months or more, Fair value | $ 56 | $ 77 |
12 months or more, Gross unrealized losses | $ (2) | $ (7) |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 10 |
Fair value | $ 111 | $ 303 |
Gross unrealized losses | $ (3) | $ (14) |
Number of securities in a continuous loss position | Securities | 20 | 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 | $ 274 | $ 322 |
Less than 12 months, Gross unrealized losses | $ (8) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 31 | 50 |
12 months or more, Fair value | $ 8 | $ 6 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 1 |
Fair value | $ 282 | $ 328 |
Gross unrealized losses | $ (9) | $ (13) |
Number of securities in a continuous loss position | Securities | 33 | 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 | $ 127 | $ 431 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (16) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 18 | 56 |
12 months or more, Fair value | $ 70 | $ 26 |
12 months or more, Gross unrealized losses | $ (4) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 9 | 6 |
Fair value | $ 197 | $ 457 |
Gross unrealized losses | $ (6) | $ (17) |
Number of securities in a continuous loss position | Securities | 27 | 62 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 190 | $ 302 |
Less than 12 months, Gross unrealized losses | $ (5) | $ (16) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 24 | 41 |
12 months or more, Fair value | $ 17 | $ 17 |
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 | $ 207 | $ 319 |
Gross unrealized losses | $ (6) | $ (17) |
Number of securities in a continuous loss position | Securities | 26 | 43 |
Fixed maturity securities | U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 23 | $ 29 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2 | 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 | $ 23 | $ 29 |
Gross unrealized losses | $ (2) | $ (1) |
Number of securities in a continuous loss position | Securities | 2 | 2 |
Fixed maturity securities | Non-U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,562 | $ 2,257 |
Less than 12 months, Gross unrealized losses | $ (22) | $ (66) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 222 | 330 |
12 months or more, Fair value | $ 261 | $ 408 |
12 months or more, Gross unrealized losses | $ (13) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 36 | 57 |
Fair value | $ 1,823 | $ 2,665 |
Gross unrealized losses | $ (35) | $ (91) |
Number of securities in a continuous loss position | Securities | 258 | 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 | $ 227 | $ 240 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (10) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 31 | 32 |
12 months or more, Fair value | $ 19 | $ 14 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 1 |
Fair value | $ 246 | $ 254 |
Gross unrealized losses | $ (5) | $ (11) |
Number of securities in a continuous loss position | Securities | 33 | 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 | $ 142 | $ 105 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (3) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 21 | 18 |
12 months or more, Fair value | $ 69 | $ 91 |
12 months or more, Gross unrealized losses | $ (4) | $ (9) |
12 months or more, Number of securities in a continuous loss position | Securities | 11 | 16 |
Fair value | $ 211 | $ 196 |
Gross unrealized losses | $ (7) | $ (12) |
Number of securities in a continuous loss position | Securities | 32 | 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 | $ 324 | $ 474 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 49 | 79 |
12 months or more, Fair value | $ 50 | $ 71 |
12 months or more, Gross unrealized losses | $ (2) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 9 | 16 |
Fair value | $ 374 | $ 545 |
Gross unrealized losses | $ (5) | $ (9) |
Number of securities in a continuous loss position | Securities | 58 | 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 | $ 131 | $ 308 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (14) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 16 | 30 |
12 months or more, Fair value | $ 34 | $ 0 |
12 months or more, Gross unrealized losses | $ (1) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 4 | 0 |
Fair value | $ 165 | $ 308 |
Gross unrealized losses | $ (3) | $ (14) |
Number of securities in a continuous loss position | Securities | 20 | 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 | $ 80 | $ 232 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (9) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 17 | 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 | $ 92 | $ 260 |
Gross unrealized losses | $ (2) | $ (10) |
Number of securities in a continuous loss position | Securities | 19 | 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 | $ 67 | $ 165 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 10 | 21 |
12 months or more, Fair value | $ 11 | $ 91 |
12 months or more, Gross unrealized losses | $ (1) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 2 | 10 |
Fair value | $ 78 | $ 256 |
Gross unrealized losses | $ (2) | $ (9) |
Number of securities in a continuous loss position | Securities | 12 | 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 | $ 34 | $ 104 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 6 | 14 |
12 months or more, Fair value | $ 34 | $ 28 |
12 months or more, Gross unrealized losses | $ (1) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 2 |
Fair value | $ 68 | $ 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 | $ 101 | $ 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 | $ 101 | $ 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 | $ 61 | $ 106 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 13 | 16 |
12 months or more, Fair value | $ 32 | $ 25 |
12 months or more, Gross unrealized losses | $ (2) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 2 |
Fair value | $ 93 | $ 131 |
Gross unrealized losses | $ (3) | $ (7) |
Number of securities in a continuous loss position | Securities | 16 | 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 | $ 395 | $ 433 |
Less than 12 months, Gross unrealized losses | $ (5) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 44 | 69 |
12 months or more, Fair value | $ 0 | $ 60 |
12 months or more, Gross unrealized losses | $ 0 | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | 8 |
Fair value | $ 395 | $ 493 |
Gross unrealized losses | $ (5) | $ (13) |
Number of securities in a continuous loss position | Securities | 44 | 77 |
Fixed maturity securities | Corporate Debt Securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 3,897 | $ 7,478 |
Less than 12 months, Gross unrealized losses | $ (69) | $ (256) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 555 | 1,041 |
12 months or more, Fair value | $ 1,027 | $ 1,070 |
12 months or more, Gross unrealized losses | $ (49) | $ (74) |
12 months or more, Number of securities in a continuous loss position | Securities | 142 | 151 |
Fair value | $ 4,924 | $ 8,548 |
Gross unrealized losses | $ (118) | $ (330) |
Number of securities in a continuous loss position | Securities | 697 | 1,192 |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized cost or cost | ||
Due one year or less | $ 1,943 | |
Due after one year through five years | 10,901 | |
Due after five years through ten years | 12,363 | |
Due after ten years | 22,208 | |
Subtotal | 47,415 | |
Amortized cost or cost, fixed maturity securities | 57,763 | $ 57,014 |
Fair value | ||
Due one year or less | 1,966 | |
Due after one year through five years | 11,333 | |
Due after five years through ten years | 12,933 | |
Due after ten years | 25,629 | |
Subtotal | 51,861 | |
Fair value, fixed maturity securities | 62,552 | $ 60,572 |
Residential mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,950 | |
Fair value | ||
Fixed maturity securities | 4,209 | |
Commercial mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,346 | |
Fair value | ||
Fixed maturity securities | 3,414 | |
Other asset-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,052 | |
Fair value | ||
Fixed maturity securities | $ 3,068 |
Distribution Across Property Ty
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,281 | $ 6,125 |
Unamortized balance of loan origination fees and costs | $ (3) | $ (2) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (10) | $ (12) |
Total | 6,268 | 6,111 |
Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 6,281 | 6,125 |
Unamortized balance of loan origination fees and costs | $ (3) | $ (2) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (10) | $ (12) |
Total | 6,268 | 6,111 |
Pacific | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,600 | $ 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 | $ 1,620 | $ 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 | $ 904 | $ 915 |
% of total | 14.00% | 15.00% |
Mountain | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 556 | $ 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 | $ 441 | $ 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 | $ 386 | $ 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 | $ 327 | $ 311 |
% of total | 5.00% | 5.00% |
New England | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 237 | $ 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 | $ 210 | $ 203 |
% of total | 3.00% | 3.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,220 | $ 2,178 |
% of total | 35.00% | 36.00% |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,608 | $ 1,533 |
% of total | 26.00% | 25.00% |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,465 | $ 1,430 |
% of total | 23.00% | 23.00% |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 489 | $ 455 |
% of total | 8.00% | 7.00% |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 222 | $ 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,281 | $ 6,125 |
% of total | 100.00% | 100.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,220 | $ 2,178 |
% of total | 35.00% | 36.00% |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,608 | $ 1,533 |
% of total | 26.00% | 25.00% |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,465 | $ 1,430 |
% of total | 23.00% | 23.00% |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 489 | $ 455 |
% of total | 8.00% | 7.00% |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 222 | $ 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 | $ 6 | $ 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 | 6 | 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 | $ 6 | $ 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 | 6 | 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 | $ 6,275 | $ 6,112 |
% of total | 100.00% | 100.00% |
Current | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,220 | $ 2,178 |
Current | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,608 | 1,520 |
Current | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,459 | 1,430 |
Current | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 489 | 455 |
Current | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 222 | 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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | $ 12 | ||||
Ending balance | $ 10 | 10 | |||
Ending balance | 6,281 | 6,281 | $ 6,125 | ||
Allowance for Credit Losses | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Beginning balance | 10 | $ 13 | 12 | $ 15 | |
Charge-offs | 0 | 0 | 0 | (4) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 0 | 0 | (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 | 6,281 | 6,032 | 6,281 | 6,032 | |
Ending balance of individually impaired loans | 0 | 17 | 0 | 17 | |
Ending balance of loans not individually impaired that were evaluated collectively for impairment | $ 6,281 | $ 6,015 | $ 6,281 | $ 6,015 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,281 | $ 6,125 | ||
% of total | 100.00% | 100.00% | ||
Weighted-average debt service coverage ratio | 2.10 | 1.87 | ||
Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,220 | $ 2,178 | ||
% of total | 35.00% | 36.00% | ||
Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,608 | $ 1,533 | ||
% of total | 26.00% | 25.00% | ||
Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,465 | $ 1,430 | ||
% of total | 23.00% | 23.00% | ||
Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 489 | $ 455 | ||
% of total | 8.00% | 7.00% | ||
Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 222 | $ 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 | $ 2 | [1] | $ 7 | [2] |
% of total | 0.00% | [1] | 0.00% | [2] |
Weighted-average debt service coverage ratio | 1.04 | [1] | (0.07) | [2] |
Greater than 100% | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 0 | [1] | $ 0 | [2] |
Greater than 100% | Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1] | 0 | [2] |
Greater than 100% | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 2 | [1] | 7 | [2] |
Greater than 100% | Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1] | 0 | [2] |
Greater than 100% | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1] | 0 | [2] |
Greater than 100% | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1] | 0 | [2] |
0% - 50% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,668 | $ 2,094 | ||
% of total | 43.00% | 34.00% | ||
Weighted-average debt service coverage ratio | 2.65 | 2.20 | ||
0% - 50% | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 933 | $ 743 | ||
0% - 50% | Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 747 | 605 | ||
0% - 50% | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 583 | 431 | ||
0% - 50% | Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 236 | 188 | ||
0% - 50% | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 101 | 67 | ||
0% - 50% | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 68 | 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 | 1.85 | 1.88 | ||
51% - 60% | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 499 | $ 511 | ||
51% - 60% | Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 356 | 430 | ||
51% - 60% | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 393 | 310 | ||
51% - 60% | Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 105 | 89 | ||
51% - 60% | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 59 | 87 | ||
51% - 60% | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 29 | 30 | ||
61% - 75% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,149 | $ 2,511 | ||
% of total | 34.00% | 41.00% | ||
Weighted-average debt service coverage ratio | 1.60 | 1.61 | ||
61% - 75% | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 788 | $ 913 | ||
61% - 75% | Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 503 | 484 | ||
61% - 75% | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 473 | 656 | ||
61% - 75% | Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 143 | 173 | ||
61% - 75% | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 62 | 91 | ||
61% - 75% | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 180 | 194 | ||
76% - 100% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 21 | $ 56 | ||
% of total | 0.00% | 1.00% | ||
Weighted-average debt service coverage ratio | 0.63 | 0.80 | ||
76% - 100% | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 0 | $ 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 | 14 | 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 $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. | |||
[2] | Included a loan with a recorded investment of $7 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Loan-to-Value of Commercial M51
Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | |||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,281 | $ 6,125 | ||
Greater than 100% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 2 | [1] | 7 | [2] |
Greater than 100% | Loans in Good Standing | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2 | $ 7 | ||
Weighted-average loan-to-value | 103.00% | 105.00% | ||
[1] | Included a loan with a recorded investment of $2 million in good standing, where the borrower continued to make timely payments, with a loan-to-value of 103%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. | |||
[2] | 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,281 | $ 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 | $ 6,281 | $ 6,125 |
% of total | 100.00% | 100.00% |
Weighted-average loan-to-value | 52.00% | 55.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,220 | $ 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 | $ 2,220 | $ 2,178 |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,608 | $ 1,533 |
% of total | 26.00% | 25.00% |
Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,608 | $ 1,533 |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,465 | $ 1,430 |
% of total | 23.00% | 23.00% |
Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,465 | $ 1,430 |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 489 | $ 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 | $ 489 | $ 455 |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 222 | $ 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 | $ 222 | $ 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 | $ 142 | $ 251 |
% of total | 2.00% | 4.00% |
Weighted-average loan-to-value | 57.00% | 61.00% |
Less than 1.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 43 | $ 67 |
Less than 1.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 24 | 71 |
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 72 | 91 |
Less than 1.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 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 | $ 545 | $ 613 |
% of total | 9.00% | 10.00% |
Weighted-average loan-to-value | 60.00% | 60.00% |
1.00 - 1.25 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 242 | $ 204 |
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 63 | 113 |
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 67 | 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 | 4 | 9 |
1.00 - 1.25 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 149 | 148 |
1.26 - 1.50 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 745 | $ 956 |
% of total | 12.00% | 16.00% |
Weighted-average loan-to-value | 58.00% | 59.00% |
1.26 - 1.50 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 298 | $ 425 |
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 180 | 236 |
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 151 | 172 |
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 75 | 44 |
1.26 - 1.50 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 26 | 19 |
1.26 - 1.50 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 15 | 60 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,550 | $ 2,507 |
% of total | 40.00% | 41.00% |
Weighted-average loan-to-value | 57.00% | 58.00% |
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 999 | $ 899 |
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 679 | 599 |
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 521 | 609 |
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 193 | 217 |
1.51 - 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 86 | 128 |
1.51 - 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 72 | 55 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,299 | $ 1,798 |
% of total | 37.00% | 29.00% |
Weighted-average loan-to-value | 41.00% | 45.00% |
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 638 | $ 583 |
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 662 | 514 |
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 654 | 441 |
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 201 | 153 |
Greater than 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 104 | 87 |
Greater than 2.00 | Other | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 40 | $ 20 |
Schedule of Positions in Deriva
Schedule of Positions in Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | ||
Derivative [Line Items] | ||||
Derivative assets, fair value | $ 275 | [1] | $ 724 | |
Derivative liabilities, fair value | 729 | [1] | 1,041 | |
Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 665 | 658 | ||
Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 64 | 383 | ||
Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 261 | 708 | ||
Interest rate swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 39 | 349 | ||
Interest rate swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 70 | 596 | ||
Foreign currency swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 5 | |||
Foreign currency swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 12 | 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 | 2 | 1 | ||
Equity return swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 1 | |||
Other foreign currency contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 23 | 27 | ||
Other foreign currency contracts | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 98 | 35 | ||
GMWB embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | [2] | 257 | 303 | |
GMWB embedded derivatives | Reinsurance recoverable | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | [3] | 14 | 16 | |
Fixed index annuity embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 394 | 344 | ||
Indexed universal life embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 14 | 11 | ||
Designated As Hedging Instrument | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 72 | [1] | 241 | |
Derivative liabilities, fair value | 39 | [1] | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 72 | [1] | 241 | |
Derivative liabilities, fair value | 39 | [1] | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 39 | [1] | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 70 | [1] | 237 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 0 | [1] | 0 | |
Designated As Hedging Instrument | Cash Flow Hedges | Foreign currency swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 2 | [1] | 4 | |
Derivatives not designated as hedges | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 203 | [1] | 483 | |
Derivative liabilities, fair value | 690 | [1] | 838 | |
Derivatives not designated as hedges | Interest rate swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 0 | [1] | 146 | |
Derivatives not designated as hedges | Interest rate swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 0 | [1] | 359 | |
Derivatives not designated as hedges | Foreign currency swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 0 | [1] | 5 | |
Derivatives not designated as hedges | Foreign currency swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 10 | [1] | 0 | |
Derivatives not designated as hedges | Credit default swaps related to securitization entities | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 0 | [1] | 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 | [1] | 0 | |
Derivatives not designated as hedges | Equity index options | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 0 | [1] | 0 | |
Derivatives not designated as hedges | Equity index options | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 81 | [1] | 72 | |
Derivatives not designated as hedges | Financial futures | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 0 | [1] | 0 | |
Derivatives not designated as hedges | Financial futures | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 0 | [1] | 0 | |
Derivatives not designated as hedges | Equity return swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 2 | [1] | 1 | |
Derivatives not designated as hedges | Equity return swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 0 | [1] | 1 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 23 | [1] | 27 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 98 | [1] | 35 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | [4] | 257 | [1] | 303 |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | [5] | 14 | [1] | 16 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | [6] | 394 | [1] | 344 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Other assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 0 | [1] | 0 | |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | [7] | 14 | [1] | 11 |
Derivatives not designated as hedges | Indexed universal life embedded derivatives | Reinsurance recoverable | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | $ 0 | [1] | $ 0 | |
[1] | In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017. | |||
[2] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | |||
[3] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. | |||
[4] | Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | |||
[5] | Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits ("GMWB") liabilities. | |||
[6] | Represents the embedded derivatives associated with our fixed index annuity liabilities. | |||
[7] | Represents the embedded derivatives associated with our indexed universal life liabilities. |
Schedule of Positions in Deri54
Schedule of Positions in Derivative Instruments (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Derivative [Line Items] | |
Reduction in derivative assets | $ (509) |
Reduction in derivative liabilities | $ (274) |
Activity Associated with Deriva
Activity Associated with Derivative Instruments (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)Policies | |
Derivative [Line Items] | |
Notional amount, beginning balance | $ 23,912 |
Additions | 8,328 |
Maturities/ terminations | (7,329) |
Notional amount, ending balance | 24,911 |
Designated As Hedging Instrument | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,592 |
Additions | 0 |
Maturities/ terminations | (306) |
Notional amount, ending balance | 11,286 |
Designated As Hedging Instrument | Cash Flow Hedges | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,592 |
Additions | 0 |
Maturities/ terminations | (306) |
Notional amount, ending balance | 11,286 |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 11,570 |
Additions | 0 |
Maturities/ terminations | (306) |
Notional amount, ending balance | 11,264 |
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 | 8,328 |
Maturities/ terminations | (7,023) |
Notional amount, ending balance | 13,625 |
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 | 95 |
Maturities/ terminations | (14) |
Notional amount, ending balance | 282 |
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 | (200) |
Notional amount, ending balance | 112 |
Derivatives not designated as hedges | Equity index options | |
Derivative [Line Items] | |
Notional amount, beginning balance | 2,396 |
Additions | 1,584 |
Maturities/ terminations | (1,484) |
Notional amount, ending balance | 2,496 |
Derivatives not designated as hedges | Financial futures | |
Derivative [Line Items] | |
Notional amount, beginning balance | 1,398 |
Additions | 4,300 |
Maturities/ terminations | (4,376) |
Notional amount, ending balance | 1,322 |
Derivatives not designated as hedges | Equity return swaps | |
Derivative [Line Items] | |
Notional amount, beginning balance | 165 |
Additions | 186 |
Maturities/ terminations | (258) |
Notional amount, ending balance | 93 |
Derivatives not designated as hedges | Other foreign currency contracts | |
Derivative [Line Items] | |
Notional amount, beginning balance | 3,130 |
Additions | 2,163 |
Maturities/ terminations | (691) |
Notional amount, ending balance | $ 4,602 |
Derivatives not designated as hedges | GMWB embedded derivatives | |
Derivative [Line Items] | |
Notional amount, beginning balance | Policies | 33,238 |
Additions | Policies | 0 |
Maturities/ terminations | Policies | (2,127) |
Notional amount, ending balance | Policies | 31,111 |
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 | (367) |
Notional amount, ending balance | Policies | 17,182 |
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 | (66) |
Notional amount, ending balance | Policies | 1,009 |
Schedule of Pre-Tax Income (Los
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | $ 16 | $ 112 | $ 46 | $ 780 | |
Gain (loss) reclassified into net income (loss) from OCI | 34 | 27 | 97 | 90 | |
Gain (loss) recognized in net income (loss) | [1] | 0 | 2 | 0 | 13 |
Interest Rate Swaps Hedging Assets | 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 (loss) from OCI | 2 | 1 | |||
Gain (loss) recognized in net income (loss) | [1] | 0 | 2 | 0 | 13 |
Interest Rate Swaps Hedging Assets | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 17 | 115 | 50 | 839 | |
Gain (loss) reclassified into net income (loss) from OCI | 34 | 27 | 95 | 80 | |
Interest Rate Swaps Hedging Liabilities | Net investment gains (losses) | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income (loss) | [1] | 0 | 0 | 0 | |
Interest Rate Swaps Hedging Liabilities | Interest Expense | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | (2) | (2) | (52) | ||
Gain (loss) reclassified into net income (loss) from OCI | 0 | 0 | 0 | ||
Foreign currency swaps | Net investment gains (losses) | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in net income (loss) | [1] | 0 | 0 | 0 | 0 |
Foreign currency swaps | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | (1) | (1) | (2) | (2) | |
Gain (loss) reclassified into net income (loss) from OCI | $ 0 | $ 0 | $ 0 | 0 | |
Inflation indexed swaps | Net investment gains (losses) | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | 0 | ||||
Gain (loss) reclassified into net income (loss) from OCI | 7 | ||||
Gain (loss) recognized in net income (loss) | [1] | 0 | |||
Inflation indexed swaps | Net Investment Income | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) recognized in OCI | (5) | ||||
Gain (loss) reclassified into net income (loss) from OCI | $ 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments [Abstract] | ||||
Derivatives qualifying as effective accounting hedges, beginning of period | $ 2,064 | $ 2,439 | $ 2,085 | $ 2,045 |
Current period increases (decreases) in fair value, net of deferred taxes | 10 | 72 | 29 | 507 |
Reclassification to net (income), net of deferred taxes | (22) | (18) | (62) | (59) |
Derivatives qualifying as effective accounting hedges, end of period | $ 2,052 | $ 2,493 | $ 2,052 | $ 2,493 |
Reconciliation of Current Per58
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Current period increases (decreases) in fair value, deferred taxes | $ (6) | $ (40) | $ (17) | $ (273) |
Reclassification to net (income), deferred taxes | $ 12 | $ 9 | $ 35 | $ 31 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||||||
Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 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 | $ 2,052 | $ 2,064 | $ 2,085 | $ 2,493 | $ 2,439 | $ 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 | $ 95 | ||||||
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring | 2 | ||||||
Derivative assets | Subject to enforceable master netting arrangement | |||||||
Derivative [Line Items] | |||||||
Amount to claim from counterparties if the downgrade provisions had been triggered | [1] | 82 | 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] | $ 0 | $ 2 | ||||
[1] | Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively. | ||||||
[2] | Included $2 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2017 and December 31, 2016, respectively. |
Schedule of Pre-Tax Gain (Loss)
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for Effects of Derivatives not Designated as Hedges (Detail) - Derivatives not designated as hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 56 | $ 10 | $ 97 | $ (67) |
Interest rate swaps | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 1 | (1) | 2 | 7 |
Interest rate swaps related to securitization entities | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 0 | (10) | ||
Credit default swaps related to securitization entities | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 2 | 2 | 6 | 16 |
Equity index options | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 16 | 9 | 42 | 5 |
Financial futures | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (17) | (35) | (25) | (9) |
Equity return swaps | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (5) | (9) | (19) | (2) |
Other foreign currency contracts | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 40 | (2) | 66 | (6) |
Foreign currency swaps | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 8 | (1) | 13 | 6 |
GMWB embedded derivatives | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 30 | 60 | 64 | (58) |
Fixed index annuity embedded derivatives | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (21) | (16) | (57) | (22) |
Indexed universal life embedded derivatives | Net investment gains (losses) | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 2 | $ 3 | $ 5 | $ 6 |
Additional Information about De
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | ||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives assets | $ 275 | [1] | $ 724 | |
Gross amounts recognized, derivatives liabilities | 729 | [1] | 1,041 | |
Subject to enforceable master netting arrangement | ||||
Derivative [Line Items] | ||||
Collateral received | (164) | (467) | ||
Collateral pledged | 301 | 557 | ||
Over collateralization, derivatives assets | (251) | (343) | ||
Gross amounts recognized, net derivatives | 196 | 337 | ||
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | ||
Net amounts presented in the balance sheet, net derivatives | 196 | 337 | ||
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [2] | 0 | 0 | |
Net amount | 82 | 84 | ||
Subject to enforceable master netting arrangement | Derivative assets | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives assets | [3] | 262 | 724 | |
Gross amounts offset in the balance sheet, derivatives assets | [3] | 0 | 0 | |
Net amounts presented in the balance sheet, derivatives assets | [3] | 262 | 724 | |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [2],[3] | (24) | (172) | |
Collateral received | [3] | (164) | (467) | |
Collateral pledged | [3] | 0 | 0 | |
Over collateralization, derivatives assets | [3] | 8 | 1 | |
Net amount, derivatives assets | [3] | 82 | 86 | |
Subject to enforceable master netting arrangement | Derivative liabilities | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives liabilities | [4] | 66 | 387 | |
Gross amounts offset in the balance sheet, derivatives liabilities | [4] | 0 | 0 | |
Net amounts presented in the balance sheet, derivatives liabilities | [4] | 66 | 387 | |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [2],[4] | (24) | (172) | |
Collateral pledged | [4] | (301) | (557) | |
Over collateralization, derivatives liabilities | [4] | 259 | 344 | |
Net amount, derivatives liabilities | [4] | $ 0 | $ 2 | |
[1] | In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017. | |||
[2] | 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. | |||
[3] | Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively. | |||
[4] | Included $2 million and $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of September 30, 2017 and December 31, 2016, respectively. |
Additional Information about 62
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Subject to enforceable master netting arrangement - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | [1] | $ 66 | $ 387 |
Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | [2] | 262 | 724 |
Other assets | Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | 1 | 16 | |
Other liabilities | Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | $ 2 | $ 5 | |
[1] | Included $2 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 September 30, 2017 and December 31, 2016, respectively. | ||
[2] | Included $1 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of September 30, 2017 and December 31, 2016, respectively. |
Derivative Instruments Schedule
Derivative Instruments Schedule of Credit Default Swaps where we Sell Protection on Single Name Reference Entities and Fair Values (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional value | $ 24,911 | $ 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 | 39 | 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 | 0 | 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 | Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Notional value | $ 24,911 | $ 23,912 | |
Credit default swaps | Securitization Entities | Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 112 | 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] | 100 | 300 |
Assets | [2] | 0 | 0 |
Liabilities | [2] | 0 | 1 |
Total Credit Default Swaps on Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 112 | 312 | |
Assets | 0 | 0 | |
Liabilities | $ 0 | $ 1 | |
[1] | Original notional value was $39 million. | ||
[2] | Original notional value was $300 million. |
Schedule of Credit Default Sw65
Schedule of Credit Default Swaps where we Sell Protection on Credit Default Swap Index Tranches and Fair Values (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Notional value | $ 24,911 | $ 23,912 | |
Securitization Entities | Credit default swaps | Index Tranches | |||
Derivative [Line Items] | |||
Notional value | 112 | 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] | 100 | $ 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 | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 6,268 | $ 6,111 | |
Restricted commercial mortgage loans | 111 | 129 | |
Other invested assets | 1,590 | 2,071 | |
Long-term borrowings | 4,224 | 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 | 0 | 352 | |
Long-term borrowings | 3,583 | 3,440 | |
Non-recourse funding obligations | 0 | 0 | |
Borrowings related to securitization entities | 48 | 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 | 6,550 | 6,247 | |
Restricted commercial mortgage loans | 122 | 141 | |
Other invested assets | 243 | 121 | |
Long-term borrowings | 159 | 142 | |
Non-recourse funding obligations | 195 | 186 | |
Borrowings related to securitization entities | 0 | 0 | |
Investment contracts | 15,700 | 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 | 6,268 | 6,111 | |
Restricted commercial mortgage loans | 111 | 129 | |
Other invested assets | 217 | 459 | |
Long-term borrowings | 4,224 | 4,180 | |
Non-recourse funding obligations | 310 | 310 | |
Borrowings related to securitization entities | 47 | 62 | |
Investment contracts | 15,163 | 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 | 6,550 | 6,247 | |
Restricted commercial mortgage loans | 122 | 141 | |
Other invested assets | 243 | 473 | |
Long-term borrowings | 3,742 | 3,582 | |
Non-recourse funding obligations | 195 | 186 | |
Borrowings related to securitization entities | 48 | 65 | |
Investment contracts | 15,705 | 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 | 319 | 201 | |
Ordinary course of business lending commitments | $ 61 | $ 73 | |
[1] | These financial instruments do not have notional amounts. |
Fair Value of Financial Instr67
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 62,552 | $ 60,572 |
GMWB non-performance risk impact | $ 65 | $ 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 | $ 2,226 | $ 2,107 |
Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 28,482 | 26,828 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,860 | 2,647 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 12,623 | 12,295 |
Level 2 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 58,403 | 56,271 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,226 | 2,107 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 26,155 | 24,341 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,823 | 2,610 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 11,172 | 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 | 865 | |
Level 2 | Fixed maturity securities | Internal models | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 7 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 461 | |
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 | $ 2,210 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 25,290 | |
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 | 2,816 | |
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 | 10,711 | |
Level 3 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 4,149 | 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 | 2,327 | 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 | 1,451 | $ 1,533 |
Level 3 | Fixed maturity securities | Internal models | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,521 | |
Level 3 | Fixed maturity securities | Broker Quotes | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 628 |
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 | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 62,552 | $ 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 | 5,670 | 6,036 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,860 | 2,647 |
Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,226 | 2,107 |
Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 28,482 | 26,828 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 12,623 | 12,295 |
Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,209 | 4,379 |
Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,414 | 3,129 |
Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,068 | 3,151 |
Level 2 | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 58,403 | 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 | 5,669 | 6,034 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,823 | 2,610 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,226 | 2,107 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 26,155 | 24,341 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 11,172 | 10,762 |
Level 2 | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,123 | 4,336 |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,392 | 3,075 |
Level 2 | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,843 | $ 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 | $ 5,669 | |
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 | $ 2,816 | |
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 | $ 2,210 | |
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 | $ 25,290 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-basedmodels | |
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 | $ 10,711 | |
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 | $ 4,123 | |
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 | $ 3,392 | |
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 | $ 2,843 | |
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 | Sep. 30, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | $ 62,552 | $ 60,572 | ||
Restricted other invested assets related to securitization entities | 312 | |||
Available-for-sale equity securities | 765 | 632 | ||
Derivative assets, fair value | 275 | [1] | 724 | |
Total other invested assets | 1,590 | 2,071 | ||
Separate account assets | 7,264 | 7,299 | ||
Total assets | 71,880 | 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 | 261 | 708 | ||
Securities lending collateral | 237 | 534 | ||
Short-term investments | 787 | |||
Interest rate swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 70 | 596 | ||
Foreign currency swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 12 | 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 | 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 | 98 | 35 | ||
GMWB embedded derivatives | Reinsurance recoverable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [2] | 14 | 16 | |
Fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other invested assets | 243 | 473 | ||
Fair value | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other invested assets | 1,285 | 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 | 5,670 | 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 | 2,860 | 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 | 2,226 | 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 | 28,482 | 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 | 4,923 | 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 | 2,440 | 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 | 6,587 | 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 | 4,828 | 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 | 2,740 | 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 | 1,346 | 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 | 2,321 | 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 | 1,611 | 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 | 1,306 | 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 | 380 | 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 | 12,623 | 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 | 1,062 | 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 | 1,463 | 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 | 2,696 | 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 | 716 | 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 | 1,014 | 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 | 1,058 | 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 | 587 | 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 | 527 | 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 | 718 | 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 | 2,782 | 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 | 4,209 | 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 | 3,414 | 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 | 3,068 | 3,151 | ||
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 0 | 0 | ||
Restricted other invested assets related to securitization entities | 0 | |||
Available-for-sale equity securities | 644 | 551 | ||
Total other invested assets | 0 | 0 | ||
Separate account assets | 7,264 | 7,299 | ||
Total assets | 7,908 | 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 | ||
Short-term investments | 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 | |||
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 | [2] | 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 | 58,403 | 56,271 | ||
Restricted other invested assets related to securitization entities | 181 | |||
Available-for-sale equity securities | 77 | 34 | ||
Total other invested assets | 0 | 352 | ||
Separate account assets | 0 | 0 | ||
Total assets | 59,684 | 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 | 180 | 633 | ||
Securities lending collateral | 237 | 534 | ||
Short-term investments | 787 | |||
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 | 70 | 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 | 12 | 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 | 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 | 98 | 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 | [2] | 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 | 1,204 | 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 | 5,669 | 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 | 2,823 | 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 | 2,226 | 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 | 26,155 | 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 | 4,261 | 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 | 2,282 | 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 | 5,917 | 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 | 4,701 | 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 | 2,688 | 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 | 1,299 | 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 | 2,203 | 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 | 1,349 | 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 | 1,245 | 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 | 210 | 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 | 11,172 | 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 | 703 | 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 | 1,286 | 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 | 2,527 | 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 | 587 | 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 | 985 | 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 | 919 | 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 | 437 | 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 | 458 | 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 | 537 | 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 | 2,733 | 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 | 4,123 | 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 | 3,392 | 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 | 2,843 | 3,006 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 4,149 | 4,301 | ||
Restricted other invested assets related to securitization entities | 131 | |||
Available-for-sale equity securities | 44 | 47 | ||
Total other invested assets | 243 | 121 | ||
Separate account assets | 0 | 0 | ||
Total assets | 4,288 | 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 | ||
Short-term investments | 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 | |||
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 | [2] | 14 | 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 | 2,327 | 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 | 662 | 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 | 158 | 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 | 670 | 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 | 127 | 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 | 52 | 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 | 47 | 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 | 262 | 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 | 61 | 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 | 170 | 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 | 1,451 | 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 | 169 | 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 | 29 | 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 | 139 | 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 | 150 | 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 | 69 | 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 | 181 | 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 | 49 | 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 | 86 | 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 | 22 | 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 | $ 225 | $ 145 | ||
[1] | In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017. | |||
[2] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Assets Measured at Fair Value o
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 4,461 | $ 4,651 | $ 4,570 | $ 5,501 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 35 | 9 | 61 | (35) | |
Total realized and unrealized gains (losses), Included in OCI | (60) | 42 | 87 | 222 | |
Purchases | 168 | 227 | 448 | 505 | |
Sales | (42) | (120) | (245) | (180) | |
Issuances | 0 | 1 | 1 | 2 | |
Settlements | (265) | (155) | (434) | (366) | |
Transfer into Level 3 | [1] | 79 | 123 | 198 | 389 |
Transfer out of Level 3 | [1] | (88) | (168) | (398) | (1,428) |
Ending balance | 4,288 | 4,610 | 4,288 | 4,610 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 17 | (2) | 33 | 11 | |
Other invested assets | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 81 | 58 | 75 | 34 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 16 | 9 | 39 | 3 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 15 | 15 | 36 | 52 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (31) | (20) | (69) | (27) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 81 | 62 | 81 | 62 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 13 | 0 | 19 | (6) | |
Other invested assets | Derivative assets | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 81 | 58 | 75 | 34 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 16 | 9 | 39 | 3 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 15 | 15 | 36 | 52 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (31) | (20) | (69) | (27) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 81 | 62 | 81 | 62 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 13 | 0 | 19 | (6) | |
Other invested assets | Derivative assets | Equity index options | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 81 | 57 | 72 | 30 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 16 | 9 | 42 | 5 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | 0 | |
Purchases | 15 | 15 | 36 | 51 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (31) | (20) | (69) | (25) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 81 | 61 | 81 | 61 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 13 | 0 | 21 | (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 | 3 | 3 | ||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | (3) | (2) | ||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||
Purchases | 0 | 0 | 1 | ||
Sales | 0 | 0 | 0 | ||
Issuances | 0 | 0 | 0 | ||
Settlements | 0 | 0 | (1) | ||
Transfer into Level 3 | [1] | 0 | 0 | 0 | |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | |
Ending balance | 0 | 1 | 0 | 1 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | (2) | (2) | ||
Other invested assets | Derivative assets | Credit default swaps | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 1 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | ||||
Purchases | 0 | ||||
Sales | 0 | ||||
Issuances | 0 | ||||
Settlements | (1) | ||||
Transfer into Level 3 | [1] | 0 | |||
Transfer out of Level 3 | [1] | 0 | |||
Ending balance | 0 | 0 | |||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | ||||
Reinsurance recoverable | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | [2] | 15 | 26 | 16 | 17 |
Total realized and unrealized gains (losses), Included in net income (loss) | [2] | (1) | (3) | (3) | 5 |
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 | 1 | 1 | 2 |
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] | 14 | 24 | 14 | 24 |
Total gains (losses) included in net income (loss) attributable to assets still held | [2] | (1) | (3) | (3) | 5 |
Restricted other invested assets related to securitization entities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 131 | 131 | 232 | ||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 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 | 0 | 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 | ||
Fixed maturity securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 4,317 | 4,392 | 4,301 | 5,180 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 20 | 3 | 25 | 12 | |
Total realized and unrealized gains (losses), Included in OCI | (60) | 42 | 87 | 222 | |
Purchases | 153 | 210 | 411 | 445 | |
Sales | (41) | (120) | (113) | (180) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (234) | (135) | (365) | (293) | |
Transfer into Level 3 | [1] | 79 | 123 | 198 | 389 |
Transfer out of Level 3 | [1] | (85) | (168) | (395) | (1,428) |
Ending balance | 4,149 | 4,347 | 4,149 | 4,347 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 5 | 1 | 17 | 3 | |
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 | 36 | 37 | 35 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 1 | 2 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | (1) | 0 | (2) | (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 | (1) | 0 | (7) |
Ending balance | 37 | 36 | 37 | 36 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 2 | 2 | |
Fixed maturity securities | U.S. corporate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 2,560 | 2,420 | 2,487 | 2,329 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 21 | 6 | 30 | 22 | |
Total realized and unrealized gains (losses), Included in OCI | (64) | 24 | 38 | 126 | |
Purchases | 52 | 117 | 178 | 233 | |
Sales | (18) | (21) | (45) | (53) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (212) | (49) | (261) | (139) | |
Transfer into Level 3 | [1] | 8 | 55 | 76 | 199 |
Transfer out of Level 3 | [1] | (20) | (47) | (176) | (212) |
Ending balance | 2,327 | 2,505 | 2,327 | 2,505 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 4 | 7 | 13 | 16 | |
Fixed maturity securities | U.S. corporate | Utilities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 638 | 552 | 576 | 449 | |
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 | 4 | 20 | 28 | |
Purchases | 26 | 54 | 70 | 101 | |
Sales | 0 | (6) | 0 | (6) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (2) | (1) | (4) | (9) | |
Transfer into Level 3 | [1] | 0 | 1 | 30 | 68 |
Transfer out of Level 3 | [1] | 0 | (43) | (30) | (70) |
Ending balance | 662 | 562 | 662 | 562 | |
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 | 160 | 208 | 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 | 0 | 3 | 6 | (1) | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | (10) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (2) | (8) | (32) | (10) | |
Transfer into Level 3 | [1] | 0 | 0 | 1 | 7 |
Transfer out of Level 3 | [1] | 0 | (1) | (16) | (47) |
Ending balance | 158 | 202 | 158 | 202 | |
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 | 861 | 775 | 786 | 715 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 3 | 4 | 11 | 12 | |
Total realized and unrealized gains (losses), Included in OCI | (52) | 14 | (1) | 58 | |
Purchases | 22 | 27 | 75 | 54 | |
Sales | (14) | (5) | (31) | (14) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (157) | (32) | (163) | (59) | |
Transfer into Level 3 | [1] | 8 | 37 | 8 | 72 |
Transfer out of Level 3 | [1] | (1) | 0 | (15) | (18) |
Ending balance | 670 | 820 | 670 | 820 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 2 | 5 | 10 | 11 | |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 122 | 102 | 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 | 1 | 1 | 2 | 7 | |
Purchases | 4 | 5 | 4 | 5 | |
Sales | 0 | (5) | 0 | (18) | |
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 | 127 | 103 | 127 | 103 | |
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 | 58 | 40 | 54 | 35 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 1 | 2 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | (3) | 0 | 3 | 4 | |
Purchases | 0 | 12 | 14 | 12 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | 0 | (1) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | (3) | 0 | (20) | 0 |
Ending balance | 52 | 53 | 52 | 53 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 2 | 2 | |
Fixed maturity securities | U.S. corporate | Industrial | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 61 | 78 | 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 | 0 | 0 | 0 | 5 | |
Purchases | 0 | 0 | 13 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 12 |
Transfer out of Level 3 | [1] | (14) | 0 | (14) | 0 |
Ending balance | 47 | 78 | 47 | 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 | 118 | 135 | 152 | 180 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 0 | 1 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 1 | 3 | 6 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | (10) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | 0 | (1) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | (37) | (41) |
Ending balance | 118 | 136 | 118 | 136 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 1 | 1 | |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 266 | 254 | 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 | 0 | 0 | 9 | 9 | |
Purchases | 0 | 19 | 2 | 44 | |
Sales | 0 | (5) | 0 | (5) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (2) | (1) | (5) | (42) | |
Transfer into Level 3 | [1] | 0 | 1 | 0 | 19 |
Transfer out of Level 3 | [1] | (2) | (3) | (2) | (3) |
Ending balance | 262 | 265 | 262 | 265 | |
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 | 100 | 129 | 139 | 106 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 16 | 0 | 17 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | (10) | 1 | (5) | 9 | |
Purchases | 0 | 0 | 0 | 17 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (45) | (6) | (48) | (14) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 5 |
Transfer out of Level 3 | [1] | 0 | 0 | (42) | 0 |
Ending balance | 61 | 124 | 61 | 124 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 1 | 1 | |
Fixed maturity securities | U.S. corporate | Other | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 176 | 147 | 143 | 182 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 1 | 1 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | (4) | 0 | (4) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (2) | (1) | (7) | (5) | |
Transfer into Level 3 | [1] | 0 | 16 | 37 | 16 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | (33) |
Ending balance | 170 | 162 | 170 | 162 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 1 | |
Fixed maturity securities | Non-U.S. corporate | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 1,444 | 1,607 | 1,533 | 1,545 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 2 | 3 | 4 | |
Total realized and unrealized gains (losses), Included in OCI | 6 | 14 | 35 | 91 | |
Purchases | 13 | 93 | 68 | 119 | |
Sales | (23) | (49) | (24) | (57) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (16) | (73) | (89) | (117) | |
Transfer into Level 3 | [1] | 27 | 38 | 38 | 111 |
Transfer out of Level 3 | [1] | 0 | (43) | (113) | (107) |
Ending balance | 1,451 | 1,589 | 1,451 | 1,589 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | (1) | 2 | 1 | |
Fixed maturity securities | Non-U.S. corporate | Utilities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 359 | 331 | 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 | 0 | 1 | 5 | 9 | |
Purchases | 0 | 52 | 30 | 62 | |
Sales | 0 | (5) | 0 | (5) | |
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] | 0 | (10) | (62) | (10) |
Ending balance | 359 | 369 | 359 | 369 | |
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 | 177 | 234 | 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 | 1 | 9 | 6 | 33 | |
Purchases | 0 | 8 | 0 | 8 | |
Sales | 0 | (9) | (1) | (11) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | (17) | (1) | (31) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | (33) | (26) |
Ending balance | 177 | 225 | 177 | 225 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | 0 | |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 172 | 201 | 182 | 191 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 0 | 4 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | 1 | 3 | 9 | 11 | |
Purchases | 0 | 11 | 4 | 11 | |
Sales | 0 | (1) | 0 | (1) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (5) | 0 | (30) | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 169 | 214 | 169 | 214 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 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 | 168 | 139 | 169 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 2 | 0 | 2 | |
Total realized and unrealized gains (losses), Included in OCI | 0 | (1) | 2 | 9 | |
Purchases | 0 | 3 | 0 | 3 | |
Sales | 0 | (3) | 0 | (3) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (37) | (12) | (48) | |
Transfer into Level 3 | [1] | 0 | 12 | 0 | 12 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 129 | 144 | 129 | 144 | |
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 | 80 | 67 | 62 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 0 | 1 | 0 | |
Total realized and unrealized gains (losses), Included in OCI | 1 | 1 | 1 | 6 | |
Purchases | 0 | 2 | 0 | 18 | |
Sales | (21) | (2) | (21) | (5) | |
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 | 29 | 81 | 29 | 81 | |
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 | 112 | 95 | 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 | 0 | 2 | 3 | 7 | |
Purchases | 13 | 17 | 13 | 17 | |
Sales | 0 | (17) | 0 | (20) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | [1] | 14 | 15 | 14 | 24 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 139 | 112 | 139 | 112 | |
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 | 149 | 212 | 169 | 213 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 0 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 1 | (2) | 3 | 7 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | (5) | (15) | (15) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | (33) | (7) | (33) |
Ending balance | 150 | 173 | 150 | 173 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 1 | 0 | 1 | |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 67 | 71 | 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 | 0 | 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] | 2 | 0 | 2 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | 0 |
Ending balance | 69 | 71 | 69 | 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 | 190 | 186 | 181 | 144 | |
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 0 | 1 | |
Total realized and unrealized gains (losses), Included in OCI | 1 | (1) | 4 | 3 | |
Purchases | 0 | 0 | 6 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (10) | (14) | (10) | (14) | |
Transfer into Level 3 | [1] | 0 | 1 | 11 | 39 |
Transfer out of Level 3 | [1] | 0 | 0 | (11) | 0 |
Ending balance | 181 | 173 | 181 | 173 | |
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 | 41 | 29 | 25 | 72 | |
Total realized and unrealized gains (losses), Included in net income (loss) | (2) | (2) | (2) | (2) | |
Total realized and unrealized gains (losses), Included in OCI | 1 | 2 | 2 | 4 | |
Purchases | 0 | 0 | 15 | 0 | |
Sales | (2) | (12) | (2) | (12) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | (7) | |
Transfer into Level 3 | [1] | 11 | 10 | 11 | 10 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 | (38) |
Ending balance | 49 | 27 | 49 | 27 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | (2) | 0 | (2) | |
Fixed maturity securities | Residential mortgage-backed | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 73 | 96 | 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 | 0 | 0 | 1 | 2 | |
Purchases | 22 | 0 | 26 | 51 | |
Sales | 0 | (45) | 0 | (45) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (1) | (8) | (2) | (13) | |
Transfer into Level 3 | [1] | 0 | 5 | 26 | 13 |
Transfer out of Level 3 | [1] | (8) | (11) | (8) | (87) |
Ending balance | 86 | 37 | 86 | 37 | |
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 | 52 | 33 | 54 | 10 | |
Total realized and unrealized gains (losses), Included in net income (loss) | (1) | 0 | (2) | 0 | |
Total realized and unrealized gains (losses), Included in OCI | (2) | (3) | 4 | 1 | |
Purchases | 14 | 0 | 23 | 23 | |
Sales | 0 | 0 | (9) | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | (4) | |
Transfer into Level 3 | [1] | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | (41) | (2) | (48) | (2) |
Ending balance | 22 | 28 | 22 | 28 | |
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 | 150 | 198 | 145 | 1,142 | |
Total realized and unrealized gains (losses), Included in net income (loss) | (1) | (6) | (8) | (16) | |
Total realized and unrealized gains (losses), Included in OCI | 1 | 7 | 11 | 3 | |
Purchases | 52 | 0 | 116 | 12 | |
Sales | 0 | (5) | (35) | (25) | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | (5) | (5) | (12) | (19) | |
Transfer into Level 3 | [1] | 44 | 25 | 58 | 66 |
Transfer out of Level 3 | [1] | (16) | (64) | (50) | (1,013) |
Ending balance | 225 | 150 | 225 | 150 | |
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | (6) | 0 | (16) | |
Equity Securities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 48 | 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 | 0 | 2 | 1 | 8 | |
Sales | (1) | 0 | (1) | 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] | (3) | 0 | (3) | 0 |
Ending balance | 44 | 46 | 44 | 46 | |
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | $ 35 | $ 9 | $ 61 | $ (35) |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | 17 | (2) | 33 | 11 |
Net Investment Income | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | 7 | 11 | 22 | (33) |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | 5 | 9 | 18 | 23 |
Net investment gains (losses) | ||||
Fair value of financial instruments [Abstract] | ||||
Total realized and unrealized gains (losses) included in net income (loss), assets | 28 | (2) | 39 | (2) |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | $ 12 | $ (11) | $ 15 | $ (12) |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2016 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ 729 | [1] | $ 1,041 | |
Fixed maturity securities available-for-sale, at fair value | 62,552 | 60,572 | ||
Derivative assets, fair value | 275 | [1] | 724 | |
Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | 665 | 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 | [2] | 257 | 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 | 394 | 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 | 14 | 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 | $ 4,149 | 4,301 | ||
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 | |||
Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | 665 | 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 | [2] | $ 257 | 303 | |
Valuation technique | [2] | Stochastic cash flow model | ||
Fair value, withdrawal utilization rate, lower limit | [2] | 40.00% | ||
Fair value, withdrawal utilization rate, upper limit | [2] | 84.00% | ||
Fair value, lapse rate, lower limit | [2] | 0.00% | ||
Fair value, lapse rate, upper limit | [2] | 8.00% | ||
Fair value input, credit spreads, lower limit | [2] | 0.26% | ||
Fair value input, credit spreads, upper limit | [2] | 0.83% | ||
Fair value input, equity index volatility, lower limit | [2] | 13.00% | ||
Fair value input, equity index volatility, upper limit | [2] | 24.00% | ||
Fair value, withdrawal utilization rate, weighted-average | [2] | 65.00% | ||
Fair value, lapse rate, weighted-average | [2] | 4.00% | ||
Fair value input, credit spreads, weighted-average | [2] | 0.66% | ||
Fair value input, equity index volatility, weighted-average | [2] | 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 | $ 394 | 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 | 1.00% | |||
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 | $ 14 | $ 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 | $ 2,130 | |||
Fair value input, credit spreads, lower limit | 0.56% | |||
Fair value input, credit spreads, upper limit | 3.79% | |||
Fair value input, credit spreads, weighted-average | 1.46% | |||
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 | $ 647 | |||
Fair value input, credit spreads, lower limit | 0.73% | |||
Fair value input, credit spreads, upper limit | 3.79% | |||
Fair value input, credit spreads, weighted-average | 1.35% | |||
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 | $ 86 | |||
Fair value input, credit spreads, lower limit | 0.80% | |||
Fair value input, credit spreads, upper limit | 1.93% | |||
Fair value input, credit spreads, weighted-average | 1.42% | |||
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 | $ 629 | |||
Fair value input, credit spreads, lower limit | 0.70% | |||
Fair value input, credit spreads, upper limit | 3.54% | |||
Fair value input, credit spreads, weighted-average | 1.80% | |||
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 | $ 127 | |||
Fair value input, credit spreads, lower limit | 0.88% | |||
Fair value input, credit spreads, upper limit | 2.47% | |||
Fair value input, credit spreads, weighted-average | 1.32% | |||
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 | $ 52 | |||
Fair value input, credit spreads, lower limit | 0.60% | |||
Fair value input, credit spreads, upper limit | 3.53% | |||
Fair value input, credit spreads, weighted-average | 2.99% | |||
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 | $ 20 | |||
Fair value input, credit spreads, lower limit | 0.90% | |||
Fair value input, credit spreads, upper limit | 2.07% | |||
Fair value input, credit spreads, weighted-average | 1.62% | |||
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 | 0.90% | |||
Fair value input, credit spreads, upper limit | 2.47% | |||
Fair value input, credit spreads, weighted-average | 1.40% | |||
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 | $ 236 | |||
Fair value input, credit spreads, lower limit | 0.56% | |||
Fair value input, credit spreads, upper limit | 2.10% | |||
Fair value input, credit spreads, weighted-average | 1.29% | |||
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 | $ 54 | |||
Fair value input, credit spreads, lower limit | 0.56% | |||
Fair value input, credit spreads, upper limit | 1.23% | |||
Fair value input, credit spreads, weighted-average | 0.89% | |||
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 | $ 161 | |||
Fair value input, credit spreads, lower limit | 0.64% | |||
Fair value input, credit spreads, upper limit | 1.35% | |||
Fair value input, credit spreads, weighted-average | 0.75% | |||
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 | $ 1,341 | |||
Fair value input, credit spreads, lower limit | 0.56% | |||
Fair value input, credit spreads, upper limit | 2.47% | |||
Fair value input, credit spreads, weighted-average | 1.20% | |||
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 | $ 358 | |||
Fair value input, credit spreads, lower limit | 0.77% | |||
Fair value input, credit spreads, upper limit | 1.58% | |||
Fair value input, credit spreads, weighted-average | 1.16% | |||
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 | 0.90% | |||
Fair value input, credit spreads, upper limit | 1.69% | |||
Fair value input, credit spreads, weighted-average | 1.16% | |||
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 | $ 160 | |||
Fair value input, credit spreads, lower limit | 0.69% | |||
Fair value input, credit spreads, upper limit | 1.79% | |||
Fair value input, credit spreads, weighted-average | 1.07% | |||
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 | 0.56% | |||
Fair value input, credit spreads, upper limit | 1.91% | |||
Fair value input, credit spreads, weighted-average | 1.12% | |||
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 | 1.23% | |||
Fair value input, credit spreads, upper limit | 2.22% | |||
Fair value input, credit spreads, weighted-average | 1.71% | |||
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 | $ 130 | |||
Fair value input, credit spreads, lower limit | 1.09% | |||
Fair value input, credit spreads, upper limit | 2.47% | |||
Fair value input, credit spreads, weighted-average | 1.46% | |||
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 | $ 121 | |||
Fair value input, credit spreads, lower limit | 0.88% | |||
Fair value input, credit spreads, upper limit | 1.45% | |||
Fair value input, credit spreads, weighted-average | 1.12% | |||
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 | $ 69 | |||
Fair value input, credit spreads, lower limit | 0.87% | |||
Fair value input, credit spreads, upper limit | 1.69% | |||
Fair value input, credit spreads, weighted-average | 1.12% | |||
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 | $ 161 | |||
Fair value input, credit spreads, lower limit | 0.78% | |||
Fair value input, credit spreads, upper limit | 2.10% | |||
Fair value input, credit spreads, weighted-average | 1.15% | |||
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 | $ 49 | |||
Fair value input, credit spreads, lower limit | 1.01% | |||
Fair value input, credit spreads, upper limit | 2.33% | |||
Fair value input, credit spreads, weighted-average | 1.81% | |||
[1] | In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017. | |||
[2] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities by Class of Instrum
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | $ 729 | [1] | $ 1,041 | |
Borrowings related to securitization entities | 12 | 12 | ||
Total liabilities | 741 | 1,053 | ||
Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 64 | 383 | ||
Other liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 39 | 349 | ||
Other liabilities | Foreign currency swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 5 | |||
Other liabilities | Equity return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 2 | 1 | ||
Other liabilities | Other foreign currency contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 23 | 27 | ||
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 | |||
Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 665 | 658 | ||
Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | [2] | 257 | 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 | 394 | 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 | 14 | 11 | ||
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 | 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 | |||
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 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 | 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 | 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 | [2] | 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 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Borrowings related to securitization entities | 0 | 0 | ||
Total liabilities | 64 | 383 | ||
Level 2 | Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 64 | 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 | 39 | 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 | 5 | |||
Level 2 | Other liabilities | Equity return swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 2 | 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 | 23 | 27 | ||
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 | 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 | [2] | 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 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Borrowings related to securitization entities | 12 | 12 | ||
Total liabilities | 677 | 670 | ||
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 | |||
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 | ||
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 | 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 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 665 | 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 | [2] | 257 | 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 | 394 | 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 | $ 14 | $ 11 | ||
[1] | In the third quarter of 2017, recent central clearing parties rule changes impacted our accounting treatment for variation margin pertaining to cleared swap positions, which was previously considered cash collateral and is now treated as daily settlements of the derivative contract. The change reduced the value of our derivative assets and derivative liabilities by $509 million and $274 million, respectively, in the third quarter of 2017. | |||
[2] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities Measured at Fair Va
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | $ 682 | $ 869 | $ 670 | $ 799 | |
Total realized and unrealized (gains) losses included in net (income) loss | (12) | (50) | (14) | 1 | |
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 | 29 | 43 | |
Settlements | (3) | (3) | (8) | (13) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | (3) | |
Ending balance | 677 | 827 | 677 | 827 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (12) | (46) | (11) | 88 | |
Derivative liabilities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 14 | ||||
Total realized and unrealized (gains) losses included in net (income) loss | (13) | ||||
Total realized and unrealized (gains) losses included in OCI | 0 | ||||
Purchases | 0 | ||||
Sales | 0 | ||||
Issuances | 0 | ||||
Settlements | 2 | ||||
Transfer into Level 3 | 0 | ||||
Transfer out of Level 3 | (3) | ||||
Ending balance | 0 | 0 | |||
Total (gains) losses included in net (income) loss attributable to liabilities still held | 0 | ||||
Credit default swaps related to securitization entities | Derivative liabilities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 14 | ||||
Total realized and unrealized (gains) losses included in net (income) loss | (13) | ||||
Total realized and unrealized (gains) losses included in OCI | 0 | ||||
Purchases | 0 | ||||
Sales | 0 | ||||
Issuances | 0 | ||||
Settlements | 2 | ||||
Transfer into Level 3 | 0 | ||||
Transfer out of Level 3 | (3) | ||||
Ending balance | 0 | 0 | |||
Total (gains) losses included in net (income) loss attributable to liabilities still held | 0 | ||||
Policyholder account balances | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 670 | 858 | 658 | 704 | |
Total realized and unrealized (gains) losses included in net (income) loss | (12) | (50) | (15) | 79 | |
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 | 29 | 43 | |
Settlements | (3) | (3) | (7) | (10) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 665 | 816 | 665 | 816 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (12) | (46) | (12) | 88 | |
Policyholder account balances | GMWB embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | [1] | 281 | 494 | 303 | 352 |
Total realized and unrealized (gains) losses included in net (income) loss | [1] | (31) | (63) | (67) | 63 |
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 | 21 | 24 |
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] | 257 | 439 | 257 | 439 |
Total (gains) losses included in net (income) loss attributable to liabilities still held | [1] | (31) | (59) | (64) | 72 |
Policyholder account balances | Fixed index annuity embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 376 | 351 | 344 | 342 | |
Total realized and unrealized (gains) losses included in net (income) loss | 21 | 16 | 57 | 22 | |
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 | (3) | (3) | (7) | (10) | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 394 | 364 | 394 | 364 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 21 | 16 | 57 | 22 | |
Policyholder account balances | Indexed universal life embedded derivatives | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 13 | 13 | 11 | 10 | |
Total realized and unrealized (gains) losses included in net (income) loss | (2) | (3) | (5) | (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 | 3 | 3 | 8 | 9 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | 0 | |
Ending balance | 14 | 13 | 14 | 13 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (2) | (3) | (5) | (6) | |
Borrowings related to securitization entities | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Beginning balance | 12 | 11 | 12 | 81 | |
Total realized and unrealized (gains) losses included in net (income) loss | 0 | 0 | 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 | 0 | 0 | (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 | $ 0 | $ 1 | $ 0 | |
[1] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Gains and Losses Included in 75
Gains and Losses Included in Net (Income) Loss from Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | $ (12) | $ (50) | $ (14) | $ 1 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | (12) | (46) | (11) | 88 |
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) loss, liabilities | 0 | 0 | 0 | 0 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 0 | 0 | 0 | 0 |
Net investment gains (losses) | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | (12) | (50) | (14) | 1 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | $ (12) | $ (46) | $ (11) | $ 88 |
Activity Impacting Deferred Acq
Activity Impacting Deferred Acquisition Costs (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs [Line Items] | |||
Unamortized beginning balance | $ 4,241 | $ 4,569 | |
Impact of foreign currency translation | 12 | 8 | |
Costs deferred | 67 | 124 | |
Amortization, net of interest accretion | (261) | (257) | |
Unamortized ending balance | 4,059 | 4,444 | |
Accumulated effect of net unrealized investment (gains) losses | (1,717) | (462) | |
Ending balance | $ 2,342 | $ 3,982 | $ 3,571 |
Deferred Acquisition Costs - Ad
Deferred Acquisition Costs - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Deferred Policy Acquisition Costs [Line Items] | ||||||
Deferred Policy acquisition costs amortization | $ 261,000,000 | $ 257,000,000 | ||||
Accumulated effect of net unrealized investment (gains) losses | 1,717,000,000 | 462,000,000 | ||||
Deferred acquisition costs | $ 2,342,000,000 | $ 3,982,000,000 | 2,342,000,000 | 3,982,000,000 | $ 3,571,000,000 | |
Increase in future policy benefit reserves | (92,000,000) | $ (81,000,000) | (429,000,000) | (612,000,000) | ||
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 | 31,000,000 | $ 24,000,000 | ||||
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 | ||||
Increase in future policy benefit reserves | $ 333,000,000 |
Changes in Liability for Policy
Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 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 | 2,748 | 2,569 |
Prior years | (306) | 320 |
Total incurred | 2,442 | 2,889 |
Current year | (755) | (727) |
Prior years | (1,746) | (1,646) |
Total paid | (2,501) | (2,373) |
Interest on liability for policy and contract claims | 223 | 188 |
Foreign currency translation | 27 | 14 |
Net ending balance | 7,038 | 6,691 |
Add reinsurance recoverables | 2,346 | 2,178 |
Ending balance | $ 9,384 | $ 8,869 |
Liability for Policy and Cont79
Liability for Policy and Contract Claims - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Incurred related to insured events of prior year | $ (306) | $ 320 |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Examination [Line Items] | ||||
Pre-tax income (loss) | $ 286 | $ (125) | $ 1,019 | $ 376 |
Statutory U.S. federal income tax rate | 100 | (44) | 357 | 132 |
State income tax, net of federal income tax effect | 1 | 0 | (2) | 1 |
Tax favored investments | 6 | 1 | 3 | (2) |
Effect of foreign operations | (6) | 5 | (14) | (12) |
Non-deductible expenses | 0 | (1) | 1 | (1) |
Valuation allowance | 0 | 265 | 0 | 240 |
Stock-based compensation | 1 | 2 | 3 | 5 |
Loss on sale of business | 0 | 0 | 0 | (1) |
Other, net | 0 | (6) | 0 | (7) |
Total provision (benefit) for income taxes | $ 102 | $ 222 | $ 348 | $ 355 |
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State income tax, net of federal income tax effect | 0.10% | 0.00% | (0.20%) | 0.20% |
Tax favored investments | 1.90% | (0.70%) | 0.30% | (0.50%) |
Effect of foreign operations | (2.00%) | (3.90%) | (1.30%) | (3.30%) |
Non-deductible expenses | 0.00% | 0.50% | 0.10% | (0.10%) |
Valuation allowance | 0.00% | (212.90%) | 0.00% | 63.80% |
Stock-based compensation | 0.50% | (1.80%) | 0.20% | 1.40% |
Loss on sale of business | 0.00% | 0.00% | 0.00% | (0.20%) |
Other, net | 0.00% | 4.80% | 0.00% | (1.80%) |
Effective rate | 35.50% | (179.00%) | 34.10% | 94.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Line Items] | ||||
Valuation allowance | $ 0 | $ 265 | $ 0 | $ 240 |
Foreign Tax Credit | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | $ 265 | $ 265 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2017USD ($)Segment | Sep. 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 | $ 1 | $ 1 | $ 2 | $ 5 | $ 15 | $ 2 | $ 22 |
Gain (loss) on sale of business, before taxes | 0 | 0 | 0 | 3 | |||
Gains (losses) related to early extinguishment of debt | 0 | 0 | 0 | 48 | |||
Gains (losses) from life block transactions, pre-tax | 0 | 0 | (9) | 0 | (9) | ||
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] | |||||||
Gains (losses) related to early extinguishment of debt | 4 | ||||||
Pre-tax make-whole expense | 20 | ||||||
Principal amount of notes repurchased | 28 | ||||||
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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,215 | $ 2,150 | $ 6,609 | $ 6,171 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 194 | 186 | 570 | 537 |
Segment, Continuing Operations | Canada Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 220 | 156 | 593 | 463 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 98 | 115 | 317 | 333 |
Segment, Continuing Operations | Long-term Care Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,033 | 980 | 3,063 | 3,051 |
Segment, Continuing Operations | Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 389 | 418 | 1,217 | 953 |
Segment, Continuing Operations | Fixed Annuities | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 190 | 218 | 605 | 613 |
Segment, Continuing Operations | U.S. Life Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,612 | 1,616 | 4,885 | 4,617 |
Segment, Continuing Operations | Runoff | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 90 | 84 | 266 | 218 |
Segment, Continuing Operations | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1 | $ (7) | $ (22) | $ 3 |
Summary of Net Operating Income
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Segment Reporting Information [Line Items] | ||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 107 | $ (380) | $ 464 | $ (155) | ||||
Add: net income attributable to noncontrolling interests | 68 | 48 | 198 | 151 | ||||
Net income (loss) | 175 | (332) | 662 | (4) | ||||
Income (loss) from discontinued operations, net of taxes | (9) | 15 | (9) | (25) | ||||
Income (loss) from continuing operations | 184 | (347) | 671 | 21 | ||||
Less: income from continuing operations attributable to noncontrolling interests | 68 | 48 | 198 | 151 | ||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 116 | (395) | 473 | (130) | ||||
Net investment (gains) losses, net | [1] | (62) | (18) | (161) | (38) | |||
(Gains) losses from sale of businesses | 0 | 0 | 0 | (3) | ||||
(Gains) losses on early extinguishment of debt, net | 0 | 0 | 0 | (48) | ||||
Losses from life block transactions | 0 | 0 | $ 9 | 0 | 9 | |||
Expenses related to restructuring | 1 | $ 1 | 2 | $ 5 | $ 15 | 2 | 22 | |
Fees associated with bond consent solicitation | 0 | 0 | 0 | 18 | ||||
Taxes on adjustments | 21 | 6 | 56 | (9) | ||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 76 | (405) | 370 | (179) | ||||
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 73 | 67 | 237 | 189 | ||||
Segment, Continuing Operations | Canada Mortgage Insurance | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 37 | 36 | 114 | 107 | ||||
Segment, Continuing Operations | Australia Mortgage Insurance | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 12 | 14 | 37 | 48 | ||||
Segment, Continuing Operations | Long-term Care Insurance | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (5) | (270) | 42 | (199) | ||||
Segment, Continuing Operations | Life Insurance | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (9) | 48 | 6 | 110 | ||||
Segment, Continuing Operations | Fixed Annuities | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 13 | 15 | 43 | 28 | ||||
Segment, Continuing Operations | U.S. Life Insurance | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (1) | (207) | 91 | (61) | ||||
Segment, Continuing Operations | Runoff | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 13 | 12 | 38 | 22 | ||||
Segment, Continuing Operations | Corporate and Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (58) | $ (327) | $ (147) | $ (484) | ||||
[1] | For the three months ended September 30, 2017 and 2016, net investment (gains) losses were adjusted for net investment (gains) losses attributable to noncontrolling interests of $23 million and $2 million, respectively. For the nine months ended September 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 $59 million and $8 million, respectively. |
Summary of Net Operating Inco85
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - Net investment gains (losses) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Adjustment for DAC and other intangibles and certain benefit reserves | $ 0 | $ (15) | ||
Adjustment for portion attributable to noncontrolling interests | $ 23 | $ 2 | $ 59 | $ 8 |
Summary of Total Assets for Seg
Summary of Total Assets for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 104,629 | $ 104,658 |
Segment, Continuing Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 104,629 | 104,658 |
Segment, Continuing Operations | U.S. Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 3,015 | 2,674 |
Segment, Continuing Operations | Canada Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 5,435 | 4,884 |
Segment, Continuing Operations | Australia Mortgage Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 2,814 | 2,619 |
Segment, Continuing Operations | U.S. Life Insurance | ||
Segment Reporting Information [Line Items] | ||
Total assets | 81,858 | 81,933 |
Segment, Continuing Operations | Runoff | ||
Segment Reporting Information [Line Items] | ||
Total assets | 11,149 | 11,352 |
Segment, Continuing Operations | Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 358 | $ 1,196 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | |
Commitment to fund limited partnership investments | $ 319 |
Commitment to fund U.S. commercial mortgage loan investments | 40 |
Commitment to fund private placement investments | 21 |
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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balances | $ 14,467 | $ 14,637 | |||
OCI before reclassifications | $ 21 | $ 157 | 195 | 2,422 | |
Amounts reclassified from (to) OCI | (41) | (27) | (139) | (121) | |
Total other comprehensive income (loss) | (20) | 130 | 56 | 2,301 | |
Balances before nonnontrolling interests | 3,075 | 5,218 | 3,150 | 5,311 | |
Less: change in OCI attributable to noncontrolling interests | 40 | 16 | 115 | 109 | |
Balances | 15,087 | 16,749 | 15,087 | 16,749 | |
Net unrealized investment (gains) losses | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balances | [1] | 1,180 | 2,789 | 1,262 | 1,254 |
OCI before reclassifications | [1] | (70) | 86 | (95) | 1,692 |
Amounts reclassified from (to) OCI | [1] | (19) | (9) | (77) | (62) |
Total other comprehensive income (loss) | [1] | (89) | 77 | (172) | 1,630 |
Balances before nonnontrolling interests | [1] | 1,091 | 2,866 | 1,090 | 2,884 |
Less: change in OCI attributable to noncontrolling interests | [1] | (17) | 6 | (18) | 24 |
Balances | [1] | 1,108 | 2,860 | 1,108 | 2,860 |
Derivatives qualifying as hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balances | [2] | 2,064 | 2,439 | 2,085 | 2,045 |
OCI before reclassifications | [2] | 10 | 72 | 29 | 507 |
Amounts reclassified from (to) OCI | [2] | (22) | (18) | (62) | (59) |
Total other comprehensive income (loss) | [2] | (12) | 54 | (33) | 448 |
Balances before nonnontrolling interests | [2] | 2,052 | 2,493 | 2,052 | 2,493 |
Less: change in OCI attributable to noncontrolling interests | [2] | 0 | 0 | 0 | 0 |
Balances | [2] | 2,052 | 2,493 | 2,052 | 2,493 |
Foreign currency translation and other adjustments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balances | (149) | (140) | (253) | (289) | |
OCI before reclassifications | 81 | (1) | 261 | 223 | |
Amounts reclassified from (to) OCI | 0 | 0 | 0 | 0 | |
Total other comprehensive income (loss) | 81 | (1) | 261 | 223 | |
Balances before nonnontrolling interests | (68) | (141) | 8 | (66) | |
Less: change in OCI attributable to noncontrolling interests | 57 | 10 | 133 | 85 | |
Balances | (125) | (151) | (125) | (151) | |
Accumulated other comprehensive income (loss) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balances | 3,095 | 5,088 | 3,094 | 3,010 | |
Total other comprehensive income (loss) | (59) | 2,192 | |||
Balances | $ 3,035 | $ 5,202 | $ 3,035 | $ 5,202 | |
[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 89
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | ||
Unrecognized postretirement benefit obligation, current period OCI | $ (5) | $ 5 |
Unrecognized postretirement benefit obligation, current period OCI, tax | 1 | 2 |
Foreign currency translation and other adjustments, current period OCI, tax | $ 28 | $ 37 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net investment income | $ (797) | $ (805) | $ (2,388) | $ (2,373) | |
Net investment (gains) losses | (85) | (20) | (220) | (31) | |
Provision for income taxes | (102) | (222) | (348) | (355) | |
(Income) loss from continuing operations | (184) | 347 | (671) | (21) | |
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] | (29) | (13) | (118) | (95) |
Provision for income taxes | 10 | 4 | 41 | 33 | |
(Income) loss from continuing operations | (19) | (9) | (77) | (62) | |
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 | 9 | 35 | 31 | |
(Income) loss from continuing operations | (22) | (18) | (62) | (59) | |
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 | (34) | (27) | (95) | (80) | |
Net investment (gains) losses | 0 | 0 | (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 | 0 | 0 | 0 | (2) | |
Net investment (gains) losses | $ 0 | $ 0 | $ 0 | $ (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 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | $ 62,552 | $ 60,572 | ||
Equity securities available-for-sale, at fair value | 765 | 632 | ||
Commercial mortgage loans | 6,268 | 6,111 | ||
Restricted commercial mortgage loans related to securitization entities | 111 | 129 | ||
Policy loans | 1,818 | 1,742 | ||
Other invested assets | 1,590 | 2,071 | ||
Restricted other invested assets related to securitization entities, at fair value | 0 | 312 | ||
Investments in subsidiaries | 0 | 0 | ||
Total investments | 73,104 | 71,569 | ||
Cash and cash equivalents | 2,836 | 2,784 | $ 3,078 | $ 5,993 |
Accrued investment income | 639 | 659 | ||
Deferred acquisition costs | 2,342 | 3,571 | 3,982 | |
Intangible assets and goodwill | 315 | 348 | ||
Reinsurance recoverable | 17,553 | 17,755 | ||
Other assets | 552 | 673 | ||
Intercompany notes receivable | 0 | 0 | ||
Deferred tax assets | 24 | 0 | ||
Separate account assets | 7,264 | 7,299 | ||
Total assets | 104,629 | 104,658 | ||
Liabilities and equity | ||||
Future policy benefits | 38,022 | 37,063 | ||
Policyholder account balances | 24,531 | 25,662 | ||
Liability for policy and contract claims | 9,384 | 9,256 | 8,869 | 8,095 |
Unearned premiums | 3,512 | 3,378 | ||
Other liabilities | 2,002 | 2,916 | ||
Intercompany notes payable | 0 | 0 | ||
Borrowings related to securitization entities | 59 | 74 | ||
Non-recourse funding obligations | 310 | 310 | ||
Long-term borrowings | 4,224 | 4,180 | ||
Deferred tax liability | 234 | 53 | ||
Separate account liabilities | 7,264 | 7,299 | ||
Total liabilities | 89,542 | 90,191 | ||
Equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,973 | 11,962 | ||
Accumulated other comprehensive income (loss) | 3,035 | 3,094 | ||
Retained earnings | 760 | 287 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 13,069 | 12,644 | ||
Noncontrolling interests | 2,018 | 1,823 | ||
Total equity | 15,087 | 14,467 | 16,749 | 14,637 |
Total liabilities and equity | 104,629 | 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 | |||
Investments in subsidiaries | 13,191 | 12,730 | ||
Total investments | 13,191 | 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 | 0 | 9 | ||
Intercompany notes receivable | 0 | 0 | ||
Deferred tax assets | 0 | 28 | ||
Separate account assets | 0 | 0 | ||
Total assets | 13,191 | 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 | 8 | 39 | ||
Intercompany notes payable | 145 | 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 | 122 | 123 | ||
Equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,973 | 11,962 | ||
Accumulated other comprehensive income (loss) | 3,035 | 3,094 | ||
Retained earnings | 760 | 287 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 13,069 | 12,644 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 13,069 | 12,644 | ||
Total liabilities and equity | 13,191 | 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 | 75 | 105 | ||
Restricted other invested assets related to securitization entities, at fair value | 0 | |||
Investments in subsidiaries | 12,459 | 12,308 | ||
Total investments | 12,534 | 12,413 | ||
Cash and cash equivalents | 754 | 998 | 1,065 | 1,124 |
Accrued investment income | 0 | 0 | ||
Deferred acquisition costs | 0 | 0 | ||
Intangible assets and goodwill | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Other assets | 90 | 134 | ||
Intercompany notes receivable | 161 | 84 | ||
Deferred tax assets | 0 | 0 | ||
Separate account assets | 0 | 0 | ||
Total assets | 13,539 | 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 | 163 | 301 | ||
Intercompany notes payable | 232 | 267 | ||
Borrowings related to securitization entities | 0 | 0 | ||
Non-recourse funding obligations | 0 | 0 | ||
Long-term borrowings | 3,722 | 3,716 | ||
Deferred tax liability | (862) | (816) | ||
Separate account liabilities | 0 | 0 | ||
Total liabilities | 3,255 | 3,468 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 9,096 | 9,097 | ||
Accumulated other comprehensive income (loss) | 3,040 | 3,135 | ||
Retained earnings | (1,852) | (2,071) | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | 10,284 | 10,161 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 10,284 | 10,161 | ||
Total liabilities and equity | 13,539 | 13,629 | ||
Reportable Legal Entities | All Other Subsidiaries | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | 62,752 | 60,772 | ||
Equity securities available-for-sale, at fair value | 765 | 632 | ||
Commercial mortgage loans | 6,268 | 6,111 | ||
Restricted commercial mortgage loans related to securitization entities | 111 | 129 | ||
Policy loans | 1,818 | 1,742 | ||
Other invested assets | 1,517 | 1,966 | ||
Restricted other invested assets related to securitization entities, at fair value | 312 | |||
Investments in subsidiaries | 0 | 0 | ||
Total investments | 73,231 | 71,664 | ||
Cash and cash equivalents | 2,082 | 1,786 | 2,013 | 4,869 |
Accrued investment income | 639 | 663 | ||
Deferred acquisition costs | 2,342 | 3,571 | ||
Intangible assets and goodwill | 315 | 348 | ||
Reinsurance recoverable | 17,553 | 17,755 | ||
Other assets | 470 | 530 | ||
Intercompany notes receivable | 33 | 67 | ||
Deferred tax assets | 24 | (28) | ||
Separate account assets | 7,264 | 7,299 | ||
Total assets | 103,953 | 103,655 | ||
Liabilities and equity | ||||
Future policy benefits | 38,022 | 37,063 | ||
Policyholder account balances | 24,531 | 25,662 | ||
Liability for policy and contract claims | 9,384 | 9,256 | ||
Unearned premiums | 3,512 | 3,378 | ||
Other liabilities | 1,842 | 2,581 | ||
Intercompany notes payable | 17 | 0 | ||
Borrowings related to securitization entities | 59 | 74 | ||
Non-recourse funding obligations | 310 | 310 | ||
Long-term borrowings | 502 | 464 | ||
Deferred tax liability | 1,127 | 869 | ||
Separate account liabilities | 7,264 | 7,299 | ||
Total liabilities | 86,570 | 86,956 | ||
Equity: | ||||
Common stock | 3 | 0 | ||
Additional paid-in capital | 18,381 | 20,252 | ||
Accumulated other comprehensive income (loss) | 3,057 | 3,116 | ||
Retained earnings | (6,376) | (8,792) | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | 15,065 | 14,576 | ||
Noncontrolling interests | 2,318 | 2,123 | ||
Total equity | 17,383 | 16,699 | ||
Total liabilities and equity | 103,953 | 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 | |||
Investments in subsidiaries | (25,650) | (25,038) | ||
Total investments | (25,852) | (25,238) | ||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accrued investment income | 0 | (4) | ||
Deferred acquisition costs | 0 | 0 | ||
Intangible assets and goodwill | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Other assets | (8) | 0 | ||
Intercompany notes receivable | (194) | (151) | ||
Deferred tax assets | 0 | 0 | ||
Separate account assets | 0 | 0 | ||
Total assets | (26,054) | (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 | (11) | (5) | ||
Intercompany notes payable | (394) | (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 | (405) | (356) | ||
Equity: | ||||
Common stock | (3) | 0 | ||
Additional paid-in capital | (27,477) | (29,349) | ||
Accumulated other comprehensive income (loss) | (6,097) | (6,251) | ||
Retained earnings | 8,228 | 10,863 | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | (25,349) | (24,737) | ||
Noncontrolling interests | (300) | (300) | ||
Total equity | (25,649) | (25,037) | ||
Total liabilities and equity | $ (26,054) | $ (25,393) |
Condensed Consolidating Income
Condensed Consolidating Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Premiums | $ 1,135 | $ 1,108 | $ 3,382 | $ 3,029 |
Net investment income | 797 | 805 | 2,388 | 2,373 |
Net investment gains (losses) | 85 | 20 | 220 | 31 |
Policy fees and other income | 198 | 217 | 619 | 738 |
Total revenues | 2,215 | 2,150 | 6,609 | 6,171 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,344 | 1,662 | 3,796 | 3,715 |
Interest credited | 164 | 173 | 494 | 523 |
Acquisition and operating expenses, net of deferrals | 265 | 269 | 775 | 990 |
Amortization of deferred acquisition costs and intangibles | 83 | 94 | 316 | 305 |
Interest expense | 73 | 77 | 209 | 262 |
Total benefits and expenses | 1,929 | 2,275 | 5,590 | 5,795 |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | 286 | (125) | 1,019 | 376 |
Provision (benefit) for income taxes | 102 | 222 | 348 | 355 |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 184 | (347) | 671 | 21 |
Income (loss) from discontinued operations, net of taxes | (9) | 15 | (9) | (25) |
Net income (loss) | 175 | (332) | 662 | (4) |
Less: net income attributable to noncontrolling interests | 68 | 48 | 198 | 151 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 107 | (380) | 464 | (155) |
Reportable Legal Entities | Parent Guarantor | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | (1) | (2) | (3) | (3) |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Policy fees and other income | 0 | 0 | 0 | 0 |
Total revenues | (1) | (2) | (3) | (3) |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | 0 |
Interest credited | 0 | 0 | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 20 | 13 | 48 | 118 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 1 |
Total benefits and expenses | 20 | 13 | 48 | 119 |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | (21) | (15) | (51) | (122) |
Provision (benefit) for income taxes | (5) | (4) | (9) | (31) |
Equity in income (loss) of subsidiaries | 123 | (369) | 506 | (62) |
Income (loss) from continuing operations | 107 | (380) | 464 | (153) |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | (2) |
Net income (loss) | 107 | (380) | 464 | (155) |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 107 | (380) | 464 | (155) |
Reportable Legal Entities | Issuer | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | 2 | 1 | 5 | 1 |
Net investment gains (losses) | (4) | (1) | (12) | (14) |
Policy fees and other income | 4 | 0 | 3 | (6) |
Total revenues | 2 | 0 | (4) | (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 | (2) | 0 | (2) | 38 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Interest expense | 66 | 69 | 187 | 210 |
Total benefits and expenses | 64 | 69 | 185 | 248 |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | (62) | (69) | (189) | (267) |
Provision (benefit) for income taxes | (21) | 155 | (65) | 88 |
Equity in income (loss) of subsidiaries | 71 | (207) | 339 | 78 |
Income (loss) from continuing operations | 30 | (431) | 215 | (277) |
Income (loss) from discontinued operations, net of taxes | 4 | 11 | 4 | (7) |
Net income (loss) | 34 | (420) | 219 | (284) |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 34 | (420) | 219 | (284) |
Reportable Legal Entities | All Other Subsidiaries | ||||
Revenues: | ||||
Premiums | 1,135 | 1,108 | 3,382 | 3,029 |
Net investment income | 800 | 810 | 2,397 | 2,386 |
Net investment gains (losses) | 89 | 21 | 232 | 45 |
Policy fees and other income | 195 | 217 | 617 | 745 |
Total revenues | 2,219 | 2,156 | 6,628 | 6,205 |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 1,344 | 1,662 | 3,796 | 3,715 |
Interest credited | 164 | 173 | 494 | 523 |
Acquisition and operating expenses, net of deferrals | 247 | 256 | 729 | 834 |
Amortization of deferred acquisition costs and intangibles | 83 | 94 | 316 | 305 |
Interest expense | 12 | 12 | 34 | 63 |
Total benefits and expenses | 1,850 | 2,197 | 5,369 | 5,440 |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | 369 | (41) | 1,259 | 765 |
Provision (benefit) for income taxes | 128 | 71 | 422 | 298 |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 241 | (112) | 837 | 467 |
Income (loss) from discontinued operations, net of taxes | (13) | 4 | (13) | (16) |
Net income (loss) | 228 | (108) | 824 | 451 |
Less: net income attributable to noncontrolling interests | 68 | 48 | 198 | 151 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 160 | (156) | 626 | 300 |
Eliminations | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | (4) | (4) | (11) | (11) |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Policy fees and other income | (1) | 0 | (1) | (1) |
Total revenues | (5) | (4) | (12) | (12) |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | 0 |
Interest credited | 0 | 0 | 0 | 0 |
Acquisition and operating expenses, net of deferrals | 0 | 0 | 0 | 0 |
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | 0 |
Interest expense | (5) | (4) | (12) | (12) |
Total benefits and expenses | (5) | (4) | (12) | (12) |
Income (loss) from continuing operations before income taxes and equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Equity in income (loss) of subsidiaries | (194) | 576 | (845) | (16) |
Income (loss) from continuing operations | (194) | 576 | (845) | (16) |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Net income (loss) | (194) | 576 | (845) | (16) |
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (194) | $ 576 | $ (845) | $ (16) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | $ 175 | $ (332) | $ 662 | $ (4) |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (89) | 72 | (173) | 1,624 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 0 | 5 | 1 | 6 |
Derivatives qualifying as hedges | (12) | 54 | (33) | 448 |
Foreign currency translation and other adjustments | 81 | (1) | 261 | 223 |
Total other comprehensive income (loss) | (20) | 130 | 56 | 2,301 |
Total comprehensive income (loss) | 155 | (202) | 718 | 2,297 |
Less: comprehensive income attributable to noncontrolling interests | 108 | 64 | 313 | 260 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 47 | (266) | 405 | 2,037 |
Reportable Legal Entities | Parent Guarantor | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | 107 | (380) | 464 | (155) |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (72) | 66 | (155) | 1,600 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 5 | 1 | 6 | |
Derivatives qualifying as hedges | (12) | 54 | (33) | 448 |
Foreign currency translation and other adjustments | 24 | (11) | 128 | 138 |
Total other comprehensive income (loss) | (60) | 114 | (59) | 2,192 |
Total comprehensive income (loss) | 47 | (266) | 405 | 2,037 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 47 | (266) | 405 | 2,037 |
Reportable Legal Entities | Issuer | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | 34 | (420) | 219 | (284) |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (71) | 63 | (172) | 1,555 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 4 | 1 | 5 | |
Derivatives qualifying as hedges | (12) | 54 | (33) | 447 |
Foreign currency translation and other adjustments | 12 | (3) | 109 | 65 |
Total other comprehensive income (loss) | (71) | 118 | (95) | 2,072 |
Total comprehensive income (loss) | (37) | (302) | 124 | 1,788 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | (37) | (302) | 124 | 1,788 |
Reportable Legal Entities | All Other Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | 228 | (108) | 824 | 451 |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (89) | 73 | (173) | 1,625 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 4 | 1 | 6 | |
Derivatives qualifying as hedges | (12) | 57 | (32) | 481 |
Foreign currency translation and other adjustments | 80 | 0 | 260 | 224 |
Total other comprehensive income (loss) | (21) | 134 | 56 | 2,336 |
Total comprehensive income (loss) | 207 | 26 | 880 | 2,787 |
Less: comprehensive income attributable to noncontrolling interests | 108 | 64 | 313 | 260 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 99 | (38) | 567 | 2,527 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | (194) | 576 | (845) | (16) |
Other comprehensive income (loss), net of taxes: | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 143 | (130) | 327 | (3,156) |
Net unrealized gains (losses) on other-than-temporarily impaired securities | (8) | (2) | (11) | |
Derivatives qualifying as hedges | 24 | (111) | 65 | (928) |
Foreign currency translation and other adjustments | (35) | 13 | (236) | (204) |
Total other comprehensive income (loss) | 132 | (236) | 154 | (4,299) |
Total comprehensive income (loss) | (62) | 340 | (691) | (4,315) |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (62) | $ 340 | $ (691) | $ (4,315) |
Condensed Consolidating State94
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 175 | $ (332) | $ 662 | $ (4) |
Less loss from discontinued operations, net of taxes | 9 | (15) | 9 | 25 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | 0 |
Dividends from subsidiaries | 0 | 0 | ||
(Gain) loss on sale of businesses | 0 | (26) | ||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (107) | (112) | ||
Net investment (gains) losses | (85) | (20) | (220) | (31) |
Charges assessed to policyholders | (534) | (574) | ||
Acquisition costs deferred | (67) | (124) | ||
Amortization of deferred acquisition costs and intangibles | 316 | 305 | ||
Deferred income taxes | 234 | 173 | ||
Trading securities, held-for-sale investments and derivative instruments | 716 | 759 | ||
Stock-based compensation expense | 29 | 25 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (21) | (258) | ||
Insurance reserves | 1,202 | 691 | ||
Current tax liabilities | (27) | 44 | ||
Other liabilities, policy and contract claims and other policy-related balances | (260) | 905 | ||
Net cash from operating activities | 1,932 | 1,798 | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 3,396 | 2,646 | ||
Commercial mortgage loans | 454 | 555 | ||
Restricted commercial mortgage loans related to securitization entities | 18 | 27 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 3,269 | 4,064 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | (6,709) | (8,758) | ||
Commercial mortgage loans | (608) | (405) | ||
Other invested assets, net | (521) | (138) | ||
Policy loans, net | 28 | (80) | ||
Intercompany notes receivable | 0 | 0 | ||
Proceeds from sale of businesses, net of cash transferred | 0 | 39 | ||
Net cash used by investing activities | (678) | (2,050) | ||
Capital contributions to subsidiaries | 0 | |||
Payments for business purchased, net of cash acquired | (5) | 0 | ||
Cash flows used by financing activities: | ||||
Deposits to universal life and investment contracts | 902 | 1,028 | ||
Withdrawals from universal life and investment contracts | (2,003) | (1,463) | ||
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 | (16) | (37) | ||
Return of capital to noncontrolling interests | 0 | (70) | ||
Dividends paid to noncontrolling interests | (92) | (126) | ||
Proceeds from intercompany notes payable | 0 | 0 | ||
Other, net | (30) | (49) | ||
Net cash used by financing activities | (1,270) | (2,699) | ||
Repurchase of subsidiary shares | (31) | 0 | ||
Effect of exchange rate changes on cash and cash equivalents | 68 | 36 | ||
Net change in cash and cash equivalents | 52 | (2,915) | ||
Cash and cash equivalents at beginning of period | 2,784 | 5,993 | ||
Cash and cash equivalents at end of period | 2,836 | 3,078 | 2,836 | 3,078 |
Reportable Legal Entities | Parent Guarantor | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 107 | (380) | 464 | (155) |
Less loss from discontinued operations, net of taxes | 0 | 0 | 0 | 2 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | (123) | 369 | (506) | 62 |
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 | 8 | ||
Trading securities, held-for-sale investments and derivative instruments | 0 | 0 | ||
Stock-based compensation expense | 23 | 18 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | 2 | (3) | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | (6) | 11 | ||
Other liabilities, policy and contract claims and other policy-related balances | (29) | (1) | ||
Net cash from operating activities | (46) | (58) | ||
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 | |||
Net cash used by investing activities | (14) | 0 | ||
Capital contributions to subsidiaries | (7) | |||
Payments for business purchased, net of cash acquired | (7) | |||
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 | 61 | 58 | ||
Other, net | (1) | 0 | ||
Net cash used by financing activities | 60 | 58 | ||
Repurchase of subsidiary shares | 0 | |||
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 (loss) | 34 | (420) | 219 | (284) |
Less loss from discontinued operations, net of taxes | (4) | (11) | (4) | 7 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | (71) | 207 | (339) | (78) |
Dividends from subsidiaries | 119 | 250 | ||
(Gain) loss on sale of businesses | 1 | |||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 4 | 3 | ||
Net investment (gains) losses | 4 | 1 | 12 | 14 |
Charges assessed to policyholders | 0 | 0 | ||
Acquisition costs deferred | 0 | 0 | ||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | ||
Deferred income taxes | (47) | 304 | ||
Trading securities, held-for-sale investments and derivative instruments | (46) | 5 | ||
Stock-based compensation expense | 0 | 0 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (2) | (4) | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | (75) | (4) | ||
Other liabilities, policy and contract claims and other policy-related balances | 34 | (22) | ||
Net cash from operating activities | (125) | 192 | ||
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 | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Other invested assets, net | 25 | 0 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | (77) | (58) | ||
Proceeds from sale of businesses, net of cash transferred | 1 | |||
Net cash used by investing activities | (52) | 93 | ||
Capital contributions to subsidiaries | 0 | |||
Payments for business purchased, net of cash acquired | 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 | (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 | (35) | 18 | ||
Other, net | (32) | (36) | ||
Net cash used by financing activities | (67) | (344) | ||
Repurchase of subsidiary shares | 0 | |||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | (244) | (59) | ||
Cash and cash equivalents at beginning of period | 998 | 1,124 | ||
Cash and cash equivalents at end of period | 754 | 1,065 | 754 | 1,065 |
Reportable Legal Entities | All Other Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 228 | (108) | 824 | 451 |
Less loss from discontinued operations, net of taxes | 13 | (4) | 13 | 16 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | 0 |
Dividends from subsidiaries | (119) | (250) | ||
(Gain) loss on sale of businesses | (27) | |||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (111) | (115) | ||
Net investment (gains) losses | (89) | (21) | (232) | (45) |
Charges assessed to policyholders | (534) | (574) | ||
Acquisition costs deferred | (67) | (124) | ||
Amortization of deferred acquisition costs and intangibles | 316 | 305 | ||
Deferred income taxes | 275 | (139) | ||
Trading securities, held-for-sale investments and derivative instruments | 762 | 754 | ||
Stock-based compensation expense | 6 | 7 | ||
Change in certain assets and liabilities: | ||||
Accrued investment income and other assets | (25) | (246) | ||
Insurance reserves | 1,202 | 691 | ||
Current tax liabilities | 54 | 37 | ||
Other liabilities, policy and contract claims and other policy-related balances | (259) | 928 | ||
Net cash from operating activities | 2,105 | 1,669 | ||
Cash flows used by investing activities: | ||||
Fixed maturity securities | 3,396 | 2,496 | ||
Commercial mortgage loans | 454 | 555 | ||
Restricted commercial mortgage loans related to securitization entities | 18 | 27 | ||
Proceeds from sales of investments: | ||||
Fixed maturity and equity securities | 3,269 | 4,064 | ||
Purchases and originations of investments: | ||||
Fixed maturity and equity securities | (6,709) | (8,758) | ||
Commercial mortgage loans | (608) | (405) | ||
Other invested assets, net | (548) | (143) | ||
Policy loans, net | 28 | (80) | ||
Intercompany notes receivable | 34 | (18) | ||
Proceeds from sale of businesses, net of cash transferred | 38 | |||
Net cash used by investing activities | (657) | (2,224) | ||
Capital contributions to subsidiaries | 7 | |||
Payments for business purchased, net of cash acquired | 2 | |||
Cash flows used by financing activities: | ||||
Deposits to universal life and investment contracts | 902 | 1,028 | ||
Withdrawals from universal life and investment contracts | (2,003) | (1,463) | ||
Redemption of non-recourse funding obligations | (1,620) | |||
Repayment and repurchase of long-term debt | (36) | |||
Repayment of borrowings related to securitization entities | (16) | (37) | ||
Return of capital to noncontrolling interests | (70) | |||
Dividends paid to noncontrolling interests | (92) | (126) | ||
Proceeds from intercompany notes payable | 17 | 0 | ||
Other, net | 3 | (13) | ||
Net cash used by financing activities | (1,220) | (2,337) | ||
Repurchase of subsidiary shares | (31) | |||
Effect of exchange rate changes on cash and cash equivalents | 68 | 36 | ||
Net change in cash and cash equivalents | 296 | (2,856) | ||
Cash and cash equivalents at beginning of period | 1,786 | 4,869 | ||
Cash and cash equivalents at end of period | 2,082 | 2,013 | 2,082 | 2,013 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (194) | 576 | (845) | (16) |
Less loss from discontinued operations, net of taxes | 0 | 0 | 0 | 0 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in (income) loss from subsidiaries | 194 | (576) | 845 | 16 |
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 | 4 | (5) | ||
Insurance reserves | 0 | 0 | ||
Current tax liabilities | 0 | 0 | ||
Other liabilities, policy and contract claims and other policy-related balances | (6) | 0 | ||
Net cash from operating activities | (2) | (5) | ||
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 | 5 | ||
Policy loans, net | 0 | 0 | ||
Intercompany notes receivable | 43 | 76 | ||
Proceeds from sale of businesses, net of cash transferred | 0 | |||
Net cash used by investing activities | 45 | 81 | ||
Capital contributions to subsidiaries | 0 | |||
Payments for business purchased, net of cash acquired | 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 | (43) | (76) | ||
Other, net | 0 | 0 | ||
Net cash used by financing activities | (43) | (76) | ||
Repurchase of subsidiary shares | 0 | |||
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 Finan95
Condensed Consolidating Financial Information - Additional Information (Detail) - USD ($) $ in Millions | Sep. 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 | $ 13,000 | |
Genworth Holdings' Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Restricted net assets | $ 12,200 |