Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GNW | ||
Entity Registrant Name | GENWORTH FINANCIAL INC | ||
Entity Central Index Key | 1,276,520 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 499,195,293 | ||
Entity Public Float | $ 1.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturity securities available-for-sale, at fair value | $ 62,525 | $ 60,572 |
Equity securities available-for-sale, at fair value | 820 | 632 |
Commercial mortgage loans | 6,341 | 6,111 |
Restricted commercial mortgage loans related to securitization entities | 107 | 129 |
Policy loans | 1,786 | 1,742 |
Other invested assets | 1,813 | 2,071 |
Restricted other invested assets related to securitization entities, at fair value | 0 | 312 |
Total investments | 73,392 | 71,569 |
Cash and cash equivalents | 2,875 | 2,784 |
Accrued investment income | 644 | 659 |
Deferred acquisition costs | 2,329 | 3,571 |
Intangible assets and goodwill | 301 | 348 |
Reinsurance recoverable | 17,569 | 17,755 |
Other assets | 453 | 673 |
Deferred tax asset | 504 | 0 |
Separate account assets | 7,230 | 7,299 |
Total assets | 105,297 | 104,658 |
Liabilities and equity | ||
Future policy benefits | 38,472 | 37,063 |
Policyholder account balances | 24,195 | 25,662 |
Liability for policy and contract claims | 9,594 | 9,256 |
Unearned premiums | 3,967 | 3,378 |
Other liabilities ($1 of other liabilities are related to securitization entities as of December 31, 2016) | 1,910 | 2,916 |
Borrowings related to securitization entities ($12 are carried at fair value in each period) | 40 | 74 |
Non-recourse funding obligations | 310 | 310 |
Long-term borrowings | 4,224 | 4,180 |
Deferred tax liability | 27 | 53 |
Separate account liabilities | 7,230 | 7,299 |
Total liabilities | 89,969 | 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 December 31, 2017 and 2016, respectively; 499 million and 498 million shares outstanding as of December 31, 2017 and 2016, respectively | 1 | 1 |
Additional paid-in capital | 11,977 | 11,962 |
Net unrealized investment gains (losses): | ||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,075 | 1,253 |
Net unrealized gains (losses) on other-than-temporarily impaired securities | 10 | 9 |
Net unrealized investment gains (losses) | 1,085 | 1,262 |
Derivatives qualifying as hedges | 2,065 | 2,085 |
Foreign currency translation and other adjustments | (123) | (253) |
Total accumulated other comprehensive income (loss) | 3,027 | 3,094 |
Retained earnings | 1,113 | 287 |
Treasury stock, at cost (88 million shares as of December 31, 2017 and 2016) | (2,700) | (2,700) |
Total Genworth Financial, Inc.'s stockholders' equity | 13,418 | 12,644 |
Noncontrolling interests | 1,910 | 1,823 |
Total equity | 15,328 | 14,467 |
Total liabilities and equity | $ 105,297 | $ 104,658 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Other liabilities, securitization entities | $ 1 | ||
Borrowings related to securitization entities, fair value | [1] | $ 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 | |
[1] | See note 17 for additional information related to consolidated securitization entities. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues: | ||||
Premiums | $ 4,004 | $ 4,160 | $ 4,579 | |
Net investment income | 3,200 | 3,159 | 3,138 | |
Net investment gains (losses) | 265 | 72 | (75) | |
Policy fees and other income | 826 | 978 | 906 | |
Total revenues | 8,295 | 8,369 | 8,548 | |
Benefits and expenses: | ||||
Benefits and other changes in policy reserves | 5,179 | 5,245 | 5,149 | |
Interest credited | 646 | 696 | 720 | |
Acquisition and operating expenses, net of deferrals | 1,022 | 1,273 | 1,309 | |
Amortization of deferred acquisition costs and intangibles | 435 | 498 | 966 | |
Interest expense | 284 | 337 | 419 | |
Total benefits and expenses | 7,566 | 8,049 | 8,563 | |
Income (loss) from continuing operations before income taxes | 729 | 320 | (15) | |
Provision (benefit) for income taxes | (207) | 358 | (9) | |
Income (loss) from continuing operations | 936 | (38) | (6) | |
Loss from discontinued operations, net of taxes | (9) | (29) | (407) | |
Net income (loss) | 927 | (67) | (413) | |
Less: net income attributable to noncontrolling interests | 110 | 210 | 202 | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 817 | $ (277) | $ (615) | |
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | ||||
Basic | $ 1.66 | $ (0.50) | $ (0.42) | |
Diluted | 1.65 | (0.50) | (0.42) | |
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: | ||||
Basic | 1.64 | (0.56) | (1.24) | |
Diluted | $ 1.63 | $ (0.56) | $ (1.24) | |
Weighted-average common shares outstanding: | ||||
Basic | 499 | 498.3 | 497.4 | |
Diluted | [1] | 501.4 | 498.3 | 497.4 |
Supplemental disclosures: | ||||
Total other-than-temporary impairments | $ (6) | $ (40) | $ (28) | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 1 | |
Net other-than-temporary impairments | (6) | (40) | (27) | |
Other investment gains (losses) | 271 | 112 | (48) | |
Net investment gains (losses) | $ 265 | $ 72 | $ (75) | |
[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 years ended December 31, 2016 and 2015, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units ("RSUs") and stock appreciation rights ("SARs") of 2.0 million and 1.6 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 years ended December 31, 2016 and 2015, dilutive potential weighted-average common shares outstanding would have been 500.3 million and 499.0 million, respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [2] | Sep. 30, 2016 | [2] | Jun. 30, 2016 | [2] | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) | $ 265 | $ 175 | $ 271 | $ 216 | $ (63) | $ (332) | $ 220 | $ 108 | $ 927 | $ (67) | $ (413) | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (187) | 6 | (1,209) | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | (9) | (4) | ||||||||||||||||
Derivatives qualifying as hedges | (20) | 40 | (25) | ||||||||||||||||
Foreign currency translation and other adjustments | 251 | 54 | (530) | ||||||||||||||||
Total other comprehensive income (loss) | 45 | 91 | (1,768) | ||||||||||||||||
Total comprehensive income (loss) | 972 | 24 | (2,181) | ||||||||||||||||
Less: comprehensive income (loss) attributable to noncontrolling interests | 222 | 217 | (106) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 750 | $ (193) | $ (2,075) | ||||||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ 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, beginning at Dec. 31, 2014 | $ 16,797 | $ 1 | $ 11,997 | $ 4,446 | $ 1,179 | $ (2,700) | $ 14,923 | $ 1,874 |
Additional sale of subsidiary shares to noncontrolling interests | 226 | (65) | 24 | (41) | 267 | |||
Repurchase of subsidiary shares | (68) | (68) | ||||||
Comprehensive income (loss): | ||||||||
Net income (loss) | (413) | (615) | (615) | 202 | ||||
Other comprehensive income (loss), net of taxes | (1,768) | (1,460) | (1,460) | (308) | ||||
Total comprehensive income (loss) | (2,181) | (2,075) | (106) | |||||
Dividends to noncontrolling interests | (157) | (157) | ||||||
Stock-based compensation expense and exercises and other | 20 | 17 | 17 | 3 | ||||
Balances, ending 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 (loss) | (67) | (277) | (277) | 210 | ||||
Other comprehensive income (loss), net of taxes | 91 | 84 | 84 | 7 | ||||
Total comprehensive income (loss) | 24 | (193) | 217 | |||||
Dividends to noncontrolling interests | (138) | (138) | ||||||
Stock-based compensation expense and exercises and other | 14 | 13 | 13 | 1 | ||||
Balances, ending 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 | (33) | (33) | ||||||
Comprehensive income (loss): | ||||||||
Net income (loss) | 927 | 817 | 817 | 110 | ||||
Other comprehensive income (loss), net of taxes | 45 | (67) | (67) | 112 | ||||
Total comprehensive income (loss) | 972 | 750 | 222 | |||||
Dividends to noncontrolling interests | (107) | (107) | ||||||
Stock-based compensation expense and exercises and other | 20 | 15 | 15 | 5 | ||||
Balances, ending at Dec. 31, 2017 | $ 15,328 | $ 1 | $ 11,977 | $ 3,027 | $ 1,113 | $ (2,700) | $ 13,418 | $ 1,910 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash flows from (used by) operating activities: | |||
Net income (loss) | $ 927 | $ (67) | $ (413) |
Less loss from discontinued operations, net of taxes | 9 | 29 | 407 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||
(Gain) loss on sale of businesses | 0 | (26) | 141 |
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (147) | (138) | (106) |
Net investment (gains) losses | (265) | (72) | 75 |
Charges assessed to policyholders | (713) | (782) | (788) |
Acquisition costs deferred | (88) | (150) | (293) |
Amortization of deferred acquisition costs and intangibles | 435 | 498 | 966 |
Deferred income taxes | (368) | 145 | (196) |
Trading securities, held-for-sale investments and derivative instruments | 703 | 709 | (239) |
Stock-based compensation expense | 42 | 32 | 16 |
Change in certain assets and liabilities: | |||
Accrued investment income and other assets | 30 | (358) | (106) |
Insurance reserves | 1,625 | 1,315 | 1,847 |
Current tax liabilities | (4) | 32 | (15) |
Other liabilities, policy and contract claims and other policy-related balances | 368 | 685 | 293 |
Cash from operating activities-held for sale | 0 | 0 | 2 |
Net cash from operating activities | 2,554 | 1,852 | 1,591 |
Cash flows used by investing activities: | |||
Fixed maturity securities | 4,766 | 3,889 | 4,541 |
Commercial mortgage loans | 579 | 700 | 882 |
Restricted commercial mortgage loans related to securitization entities | 22 | 32 | 41 |
Proceeds from sales of investments: | |||
Fixed maturity and equity securities | 4,226 | 5,629 | 4,391 |
Purchases and originations of investments: | |||
Fixed maturity and equity securities | (8,888) | (11,529) | (9,750) |
Commercial mortgage loans | (806) | (649) | (956) |
Other invested assets, net | (701) | (154) | 175 |
Policy loans, net | 48 | (77) | 25 |
Proceeds from sale of businesses, net of cash transferred | 0 | 39 | 273 |
Payments for businesses purchased, net of cash acquired | (5) | 0 | 0 |
Cash used by investing activities-held for sale | 0 | 0 | (26) |
Net cash from (used by) investing activities | (759) | (2,120) | (404) |
Cash flows used by financing activities: | |||
Deposits to universal life and investment contracts | 857 | 1,349 | 2,257 |
Withdrawals from universal life and investment contracts | (2,397) | (2,004) | (2,144) |
Redemption and repurchase of non-recourse funding obligations | 0 | (1,620) | (61) |
Proceeds from issuance of long-term debt | 0 | 0 | 150 |
Repayment and repurchase of long-term debt | 0 | (362) | (120) |
Repayment of borrowings related to securitization entities | (34) | (42) | (36) |
Repurchase of subsidiary shares | (33) | 0 | (68) |
Return of capital to noncontrolling interests | 0 | (70) | 0 |
Dividends paid to noncontrolling interests | (107) | (138) | (157) |
Proceeds from sale of subsidiary shares to noncontrolling interests | 0 | 0 | 226 |
Other, net | (54) | (44) | (98) |
Cash from financing activities-held for sale | 0 | 0 | 9 |
Net cash from (used by) financing activities | (1,768) | (2,931) | (42) |
Effect of exchange rate changes on cash and cash equivalents (includes $-, $- and $(35) related to businesses held for sale | 64 | (10) | (70) |
Net change in cash and cash equivalents | 91 | (3,209) | 1,075 |
Cash and cash equivalents at beginning of period | 2,784 | 5,993 | 4,918 |
Cash and cash equivalents at end of period | 2,875 | 2,784 | 5,993 |
Less cash and cash equivalents held for sale at end of period | 0 | 0 | 28 |
Cash and cash equivalents of continuing operations at end of period | $ 2,875 | $ 2,784 | $ 5,965 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effect of exchange rate changes on cash and cash equivalents related to businesses held for sale | $ 0 | $ 0 | $ (35) |
Nature of Business and Formatio
Nature of Business and Formation of Genworth | 12 Months Ended |
Dec. 31, 2017 | |
Nature of Business and Formation of Genworth | (1) Nature of Business and Formation of Genworth 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 financial statements include on a consolidated basis the accounts of Genworth and our affiliate companies in which we hold a majority voting interest or power to direct activities of certain variable interest entities (“VIEs”), which we refer to as “Genworth,” the “Company,” “we,” “us” or “our” unless the context otherwise requires. All intercompany accounts and transactions have been eliminated in consolidation. We operate our business through the following five operating segments: • U.S. Mortgage Insurance. • Canada Mortgage Insurance. • Australia Mortgage Insurance. • U.S. Life Insurance. • Runoff. In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. See note 24 for additional information related to discontinued operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Our consolidated financial statements have been prepared on the basis of U.S. generally accepted accounting principles (“U.S. GAAP”). 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. Certain prior year amounts have been reclassified to conform to the current year presentation. a) Premiums For traditional long-duration insurance contracts, we report premiums as earned when due. For short-duration insurance contracts, we report premiums as revenue over the terms of the related insurance policies on a pro-rata basis or in proportion to expected claims. For single premium mortgage insurance contracts, we report premiums over the estimated policy life in accordance with the expected pattern of risk emergence as further described in our accounting policy for unearned premiums. In addition, we have a practice of refunding the post-delinquent premiums in our U.S. mortgage insurance business to the insured party if the delinquent loan goes to claim. We record a liability for premiums received on the delinquent loans where our practice is to refund post-delinquent premiums. Premiums received under annuity contracts without significant mortality risk and premiums received on investment and universal life insurance products are not reported as revenues but rather as deposits and are included in liabilities for policyholder account balances. b) Net Investment Income and Net Investment Gains and Losses Investment income is recognized when earned. Income or losses upon call or prepayment of available-for-sale fixed maturity securities is recognized in net investment income, except for hybrid securities where the income or loss upon call is recognized in net investment gains and losses. Investment gains and losses are calculated on the basis of specific identification on the trade date. Investment income on mortgage-backed and asset-backed securities is initially based upon yield, cash flow and prepayment assumptions at the date of purchase. Subsequent revisions in those assumptions are recorded using the retrospective or prospective method. Under the retrospective method used for mortgage-backed and asset-backed securities of high credit quality (ratings equal to or greater than “AA” or that are backed by a U.S. agency) which cannot be contractually prepaid in such a manner that we would not recover a substantial portion of the initial investment, amortized cost of the security is adjusted to the amount that would have existed had the revised assumptions been in place at the date of purchase. The adjustments to amortized cost are recorded as a charge or credit to net investment income. Under the prospective method, which is used for all other mortgage-backed and asset-backed securities, future cash flows are estimated and interest income is recognized going forward using the new internal rate of return. c) Policy Fees and Other Income Policy fees and other income consists primarily of insurance charges assessed on universal and term universal life insurance contracts and fees assessed against customer account values. For universal and term universal life insurance contracts, charges to policyholder accounts for cost of insurance are recognized as revenue when due. Variable product fees are charged to variable annuity contractholders and variable life insurance policyholders based upon the daily net assets of the contractholder’s and policyholder’s account values and are recognized as revenue when charged. Policy surrender fees are recognized as income when the policy is surrendered. d) Investment Securities At the time of purchase, we designate our investment securities as either available-for-sale or trading and report them in our consolidated balance sheets at fair value. Our portfolio of fixed maturity securities comprises primarily investment grade securities. Changes in the fair value of available-for-sale investments, net of the effect on deferred acquisition costs (“DAC”), present value of future profits (“PVFP”), benefit reserves and deferred income taxes, are reflected as unrealized investment gains or losses in a separate component of accumulated other comprehensive income (loss). Realized and unrealized gains and losses related to trading securities are reflected in net investment gains (losses). Trading securities are included in other invested assets in our consolidated balance sheets and primarily represent fixed maturity securities where we utilized the fair value option. Other-Than-Temporary Impairments On Available-For-Sale Securities As of each balance sheet date, we evaluate securities in an unrealized loss position for other-than-temporary impairments. For debt securities, we consider all available information relevant to the collectability of the security, including information about past events, current conditions, and reasonable and supportable forecasts, when developing the estimate of cash flows expected to be collected. More specifically for mortgage-backed and asset-backed securities, we also utilize performance indicators of the underlying assets including default or delinquency rates, loan to collateral value ratios, third-party credit enhancements, current levels of subordination, vintage and other relevant characteristics of the security or underlying assets to develop our estimate of cash flows. Estimating the cash flows expected to be collected is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. Where possible, this data is benchmarked against third-party sources. We recognize other-than-temporary impairments on debt securities in an unrealized loss position when one of the following circumstances exists: • we do not expect full recovery of our amortized cost basis when due, • the present value of cash flows expected to be collected is less than our amortized cost basis, • we intend to sell a security or • it is more likely than not that we will be required to sell a security prior to recovery. For other-than-temporary impairments recognized during the period, we present the total other-than-temporary impairments, the portion of other-than-temporary impairments included in other comprehensive income (loss) (“OCI”) and the net other-than-temporary impairments as supplemental disclosure presented on the face of our consolidated statements of income. Total other-than-temporary impairments that emerged in the current period are calculated as the difference between the amortized cost and fair value. For other-than-temporarily impaired securities where we do not intend to sell the security and it is not more likely than not that we will be required to sell the security prior to recovery, total other-than-temporary impairments are adjusted by the portion of other-than-temporary impairments recognized in OCI (“non-credit”). Net other-than-temporary impairments recorded in net income (loss) represent the credit loss on the other-than-temporarily impaired securities with the offset recognized as an adjustment to the amortized cost to determine the new amortized cost basis of the securities. For securities that were deemed to be other-than-temporarily impaired and a non-credit loss was recorded in OCI, the amount recorded as an unrealized gain (loss) represents the difference between the current fair value and the new amortized cost for each period presented. The unrealized gain (loss) on an other-than-temporarily impaired security is recorded as a separate component in OCI until the security is sold or until we record an other-than-temporary impairment where we intend to sell the security or will be required to sell the security prior to recovery. To estimate the amount of other-than-temporary impairment attributed to credit losses on debt securities where we do not intend to sell the security and it is not more likely than not that we will be required to sell the security prior to recovery, we determine our best estimate of the present value of the cash flows expected to be collected from a security using the effective yield on the security prior to recording any other-than-temporary impairment. If the present value of the discounted cash flows is lower than the amortized cost of the security, the difference between the present value and amortized cost represents the credit loss associated with the security with the remaining difference between fair value and amortized cost recorded as a non-credit other-than-temporary impairment in OCI. The evaluation of other-than-temporary impairments is subject to risks and uncertainties and is intended to determine the appropriate amount and timing for recognizing an impairment charge. The assessment of whether such impairment has occurred is based on management’s best estimate of the cash flows expected to be collected at the individual security level. We regularly monitor our investment portfolio to ensure that securities that may be other-than-temporarily impaired are identified in a timely manner and that any impairment charge is recognized in the proper period. While the other-than-temporary impairment model for debt securities generally includes fixed maturity securities, there are certain hybrid securities that are classified as fixed maturity securities where the application of a debt impairment model depends on whether there has been any evidence of deterioration in credit of the issuer, such as a downgrade to below investment grade. Under certain circumstances, evidence of deterioration in credit of the issuer may result in the application of the equity securities impairment model. For equity securities, we recognize an impairment charge in the period in which we determine that the security will not recover to book value within a reasonable period of time. We determine what constitutes a reasonable period on a security-by-security basis based upon consideration of all the evidence available to us, including the magnitude of an unrealized loss and its duration. In any event, this period does not exceed 15 months for common equity securities. We measure other-than-temporary impairments based upon the difference between the amortized cost of a security and its fair value. e) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have fixed maturity, equity and trading securities, derivatives, embedded derivatives, securities held as collateral, separate account assets and certain other financial instruments, which are carried at fair value. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. All assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: • Level 1—Quoted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3—Instruments whose significant value drivers are unobservable. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as actively traded equity securities and actively traded mutual fund investments. Level 2 includes those financial instruments that are valued using industry-standard pricing methodologies, models or other valuation methodologies. These models are primarily industry-standard models that consider various inputs, such as interest rate, credit spread and foreign exchange rates for the underlying financial instruments. All significant inputs are observable, or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include: certain public and private corporate fixed maturity and equity securities; government or agency securities; certain mortgage-backed and asset-backed securities; securities held as collateral; and certain non-exchange-traded derivatives such as interest rate or cross currency swaps. Level 3 comprises financial instruments whose fair value is estimated based on industry-standard pricing methodologies and internally developed models utilizing significant inputs not based on, nor corroborated by, readily available market information. In certain instances, this category may also utilize non-binding broker quotes. This category primarily consists of certain less liquid fixed maturity, equity and trading securities and certain derivative instruments or embedded derivatives where we cannot corroborate the significant valuation inputs with market observable data. As of each reporting period, all assets and liabilities recorded at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability, such as the relative impact on the fair value as a result of including a particular input. 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 in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. See note 16 for additional information related to fair value measurements. f) Commercial Mortgage Loans The carrying value of commercial mortgage loans is stated at original cost, net of principal payments, amortization and allowance for loan losses. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Loan origination fees and direct costs, as well as premiums and discounts, are amortized as level yield adjustments over the respective loan terms. Unamortized net fees or costs are recognized upon early repayment of the loans. Loan commitment fees are deferred and amortized on an effective yield basis over the term of the loan. Commercial mortgage loans are considered past due when contractual payments have not been received from the borrower by the required payment date. “Impaired” loans are defined by U.S. GAAP as loans for which it is probable that the lender will be unable to collect all amounts due according to original contractual terms of the loan agreement. In determining whether it is probable that we will be unable to collect all amounts due, we consider current payment status, debt service coverage ratios, occupancy levels and current loan-to-value. Impaired loans are carried on a non-accrual status. Loans are placed on non-accrual status when, in management’s opinion, the collection of principal or interest is unlikely, or when the collection of principal or interest is 90 days or more past due. Income on impaired loans is not recognized until the loan is sold or the cash received exceeds the carrying amount recorded. We evaluate the impairment of commercial mortgage loans first on an individual loan basis. If an individual loan is not deemed impaired, then we evaluate the remaining loans collectively to determine whether an impairment should be recorded. For individually impaired loans, we record an impairment charge when it is probable that a loss has been incurred. The impairment is recorded as an increase in the allowance for loan losses. All losses of principal are charged to the allowance for loan losses in the period in which the loan is deemed to be uncollectible. For loans that are not individually impaired where we evaluate the loans collectively, the allowance for loan losses is maintained at a level that we determine is adequate to absorb estimated probable incurred losses in the loan portfolio. Our process to determine the adequacy of the allowance utilizes an analytical model based on historical loss experience adjusted for current events, trends and economic conditions that would result in a loss in the loan portfolio over the next 12 months. Key inputs into our evaluation include debt service coverage ratios, loan-to-value, property-type, occupancy levels, geographic region, and probability weighting of the scenarios generated by the model. The actual amounts realized could differ in the near term from the amounts assumed in arriving at the allowance for loan losses reported in the consolidated financial statements. Additions and reductions to the allowance through periodic provisions or benefits are recorded in net investment gains (losses). See note 4 for additional disclosures related to commercial mortgage loans. g) Repurchase Agreements We previously had a repurchase program in which we sold an investment security at a specified price and agreed to repurchase that security at another specified price at a later date. Repurchase agreements were treated as collateralized financing transactions and were carried at the amounts at which the securities were subsequently reacquired, including accrued interest, as specified in the respective agreement. The market value of securities to be repurchased was monitored and collateral levels were adjusted where appropriate to protect the parties against credit exposure. Cash received was invested in fixed maturity securities. See note 12 for additional information related to our repurchase agreements. h) Securities Lending Activity In the United States and Canada, we engage in certain securities lending transactions for the purpose of enhancing the yield on our investment securities portfolio. We maintain effective control over all loaned securities and, therefore, continue to report such securities as fixed maturity securities on the consolidated balance sheets. We are currently indemnified against counterparty credit risk by the intermediary. See note 12 for additional information related to our securities lending activity. i) Cash and Cash Equivalents Certificates of deposit, money market funds and other time deposits with original maturities of 90 days or less are considered cash equivalents in the consolidated balance sheets and consolidated statements of cash flows. Items with maturities greater than 90 days but less than one year at the time of acquisition are considered short-term investments. j) Deferred Acquisition Costs Acquisition costs include costs that are directly related to the successful acquisition of new or renewal insurance contracts. Acquisition costs are deferred and amortized to the extent they are recoverable from future profits. Long-Duration Contracts Amortization for deferred annuity and universal life insurance contracts is based on expected gross profits. Expected gross profits are adjusted quarterly to reflect actual experience to date or for changes in underlying assumptions relating to future gross profits. Estimates of gross profits for DAC amortization are based on assumptions including interest rates, policyholder persistency or lapses, insured life expectancy or longevity and expenses. We are required to analyze the impacts from net unrealized investment gains and losses on our available-for-sale investment securities backing insurance liabilities, as if those unrealized investment gains and losses were realized. These “shadow accounting” adjustments result in the recognition of unrealized gains and losses on related insurance assets and liabilities in a manner consistent with the recognition of the unrealized gains and losses on available-for-sale investment securities within the statement of comprehensive income and changes in equity. Changes to net unrealized investment (gains) losses may increase or decrease the ending DAC balance. Similar to a loss recognition event, when the DAC balance is reduced to zero, additional insurance liabilities are established if necessary. Unlike a loss recognition event, based on changes in net unrealized investment (gains) losses, these shadow adjustments may reverse from period to period. Therefore, DAC amortized based on expected gross-profits is adjusted to reflect the effects that would have been recognized had the unrealized investment (gains) losses been actually realized with a corresponding amount recorded in other comprehensive income (loss). DAC associated with traditional long-duration insurance contracts is not adjusted for unrealized investment (gains) or losses unless a premium deficiency would have resulted upon the (gain) or loss being realized. Short-Duration Contracts. We regularly review our assumptions and test DAC for recoverability at least annually. For deferred annuity and universal life insurance contracts, if the present value of expected future gross profits is less than the unamortized DAC for a line of business, a charge to income (loss) is recorded for additional DAC amortization. For traditional long-duration and short-duration contracts, if the benefit reserve plus anticipated future premiums and interest income for a line of business are less than the current estimate of future benefits and expenses (including any unamortized DAC), a charge to income (loss) is recorded for additional DAC amortization or for increased benefit reserves. See note 6 for additional information related to DAC including loss recognition and recoverability. k) Intangible Assets Present Value of Future Profits. We regularly review our PVFP assumptions and periodically test PVFP for recoverability similar to our treatment of DAC. See note 7 for additional information related to PVFP including recoverability. Deferred Sales Inducements to Contractholders. Other Intangible Assets l) Goodwill Goodwill is not amortized but is tested for impairment annually or between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. The determination of fair value requires the use of estimates and judgment, at the “reporting unit” level. A reporting unit is the operating segment, or a business, one level below that operating segment (the “component” level) if discrete financial information is prepared and regularly reviewed by management at the component level. If the reporting unit’s fair value is below its carrying value, we must determine the amount of implied goodwill that would be established if the reporting unit was hypothetically purchased on the impairment assessment date. We recognize an impairment charge for any amount by which the carrying amount of a reporting unit’s goodwill exceeds the amount of implied goodwill. No goodwill impairment charges were recorded in 2017, 2016 or 2015. m) Reinsurance Premium revenue, benefits and acquisition and operating expenses, net of deferrals, are reported net of the amounts relating to reinsurance ceded to and assumed from other companies. Amounts due from reinsurers for incurred and estimated future claims are reflected in the reinsurance recoverable asset. Amounts received from reinsurers that represent recovery of acquisition costs are netted against DAC so that the net amount is capitalized. The cost of reinsurance is accounted for over the terms of the related treaties using assumptions consistent with those used to account for the underlying reinsured policies. Premium revenue, benefits and acquisition and operating expenses, net of deferrals, for reinsurance contracts that do not qualify for reinsurance accounting are accounted for under the deposit method of accounting. n) Derivatives Derivative instruments are used to manage risk through one of four principal risk management strategies including: (i) liabilities; (ii) invested assets; (iii) portfolios of assets or liabilities; and (iv) forecasted transactions. On the date we enter into a derivative contract, management designates the derivative as a hedge of the identified exposure (cash flow or foreign currency). If a derivative does not qualify for hedge accounting, the changes in its fair value and all scheduled periodic settlement receipts and payments are reported in income (loss). We formally document all relationships between hedging instruments and hedged items, as well as our risk management objective and strategy for undertaking various hedge transactions. In this documentation, we specifically identify the asset, liability or forecasted transaction that has been designated as a hedged item, state how the hedging instrument is expected to hedge the risks related to the hedged item, and set forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure hedge ineffectiveness. We generally determine hedge effectiveness based on total changes in fair value of the hedged item attributable to the hedged risk and the total changes in fair value of the derivative instrument. We discontinue hedge accounting prospectively when: (i) it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of a hedged item; (ii) the derivative expires or is sold, terminated or exercised; (iii) the derivative is de-designated as a hedge instrument; or (iv) it is no longer probable that the forecasted transaction will occur. For all qualifying and highly effective cash flow hedges, the effective portion of changes in fair value of the derivative instrument is reported as a component of OCI. The ineffective portion of changes in fair value of the derivative instrument is reported as a component of income (loss). When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative continues to be carried in the consolidated balance sheets at its fair value, and gains and losses that were accumulated in OCI are recognized immediately in income (loss). When the hedged forecasted transaction is no longer probable, but is reasonably possible, the accumulated gain or loss remains in OCI and is recognized when the transaction affects income (loss); however, prospective hedge accounting for the transaction is terminated. In all other situations in which hedge accounting is discontinued on a cash flow hedge, amounts previously deferred in OCI are reclassified into income (loss) when income (loss) is impacted by the variability of the cash flow of the hedged item. We may enter into contracts that are not themselves derivative instruments but contain embedded derivatives. For each contract, we assess whether the economic characteristics of the embedded derivative are clearly and closely related to those of the host contract and determine whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. If it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and accounted for as a stand-alone derivative. Such embedded derivatives are recorded in the consolidated balance sheets at fair value and are classified consistent with their host contract. Changes in their fair value are recognized in current period income (loss). If we are unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried in the consolidated balance sheets at fair value, with changes in fair value recognized in current period income (loss). Changes in the fair value of non-qualifying derivatives, including embedded derivatives and hedge ineffectiveness on cash flow hedges are reported in net investment gains (losses). The majority of our derivative arrangements require the posting of collateral upon meeting certain net exposure thresholds. The amounts recognized for derivative counterparty collateral received by us was recorded in cash and cash equivalents with a corresponding amount recorded in other liabilities to represent our obligation to return the collateral retained by us. We also receive non-cash collateral that is not recognized in our balance sheet unless we exercise our right to sell or re-pledge the underlying asset. As of December 31, 2017 and 2016, the fair value of non-cash collateral received was $70 million and $24 million, respectively, and the underlying assets were not sold or re-pledged. We have pledged $288 million and $384 million of fixed maturity securities as of December 31, 2017 and 2016, respectively. Additionally, as of December 31, 2017 and 2016, we pledged $59 million and $173 million, respectively, of cash as collateral to derivative counterparties. Fixed maturity securities that we pledge as collateral remain on our balance sheet within fixed maturity securities available-for-sale. Any cash collateral pledged to a derivative counterparty is derecognized with a receivable recorded in other assets for the right to receive our cash collateral back from the counterparty. Derivatives previously cleared through a Central Clearing Party, such as the Chicago Mercantile Exchange, required us to post cash collateral for daily changes in the fair value of the derivative contract, commonly referred to as variation margin. 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. o) Separate Accounts and Related Insurance Obligations Separate account assets represent funds for which the investment income and investment gains and losses accrue directly to the contractholders and are reflected in our consolidated balance sheets at fair value, reported as summary total separate account assets with an equivalent summary total reported for liabilities. Amounts assessed against the contractholders for mortality, administrative and other services are included in revenues. Changes in liabilities for minimum guarantees are included in benefits and other changes in policy reserves. Net investment income, net investment gains (losses) and the related liability changes associated with the separate account are offset within the same line item in the consolidated statements of income. There were no gains or losses on transfers of assets from the general account to the separate account. We offer certain minimum guarantees associated with our variable annuity contracts. Our variable annuity contracts usually contain a basic guaranteed minimum death benefit (“GMDB”) which provides a minimum benefit to be paid upon the annuitant’s death equal to the larger of account value and the return of net deposits. Some variable annuity contracts permit contractholders to purchase through riders, at an additional charge, enhanced death benefits such as the highest contract anniversary value (“ratchets”), accumulated net deposits at a stated rate (“rollups”), or combinations thereof. Additionally, some of our variable annuity contracts provide the contractholder with living benefits such as a guaranteed minimum withdrawal benefit (“GMWB”) or certain types of guaranteed annuitization benefits. The GMWB allows contractholders to withdraw a pre-defined percentage of account value or benefit base each year, either for a specified period of time or for life. The guaranteed annuitization benefit generally provides for a guaranteed minimum level of income upon annuitization accompanied by the potential for upside market participation. Most of our reserves for additional insurance and annuitization benefits are calculated by applying a benefit ratio to accumu |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 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 years ended December 31: (Amounts in millions, except per share amounts) 2017 2016 2015 Weighted-average common shares used in basic earnings (loss) per share calculations 499.0 498.3 497.4 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 2.4 — — Weighted-average common shares used in diluted earnings (loss) per share calculations (1) 501.4 498.3 497.4 Income (loss) from continuing operations: Income (loss) from continuing operations $ 936 $ (38 ) $ (6 ) Less: income from continuing operations attributable to noncontrolling interests 110 210 202 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 826 $ (248 ) $ (208 ) Basic per share $ 1.66 $ (0.50 ) $ (0.42 ) Diluted per share $ 1.65 $ (0.50 ) $ (0.42 ) Loss from discontinued operations: Loss from discontinued operations, net of taxes $ (9 ) $ (29 ) $ (407 ) Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — — Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ (9 ) $ (29 ) $ (407 ) Basic per share $ (0.02 ) $ (0.06 ) $ (0.82 ) Diluted per share $ (0.02 ) $ (0.06 ) $ (0.82 ) Net income (loss): Income (loss) from continuing operations $ 936 $ (38 ) $ (6 ) Loss from discontinued operations, net of taxes (9 ) (29 ) (407 ) Net income (loss) 927 (67 ) (413 ) Less: net income attributable to noncontrolling interests 110 210 202 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 817 $ (277 ) $ (615 ) Basic per share $ 1.64 $ (0.56 ) $ (1.24 ) Diluted per share $ 1.63 $ (0.56 ) $ (1.24 ) (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 years ended December 31, 2016 and 2015, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) of 2.0 million and 1.6 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 years ended December 31, 2016 and 2015, dilutive potential weighted-average common shares outstanding would have been 500.3 million and 499.0 million, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments | (4) Investments (a) Net Investment Income Sources of net investment income were as follows for the years ended December 31: (Amounts in millions) 2017 2016 2015 Fixed maturity securities—taxable $ 2,578 $ 2,565 $ 2,558 Fixed maturity securities—non-taxable 12 12 12 Commercial mortgage loans 306 318 337 Restricted commercial mortgage loans related to securitization entities (1) 9 10 14 Equity securities 36 28 15 Other invested assets (2) 157 141 135 Restricted other invested assets related to securitization entities (1) 1 3 5 Policy loans 153 146 137 Cash, cash equivalents and short-term investments 36 20 13 Gross investment income before expenses and fees 3,288 3,243 3,226 Expenses and fees (88 ) (84 ) (88 ) Net investment income $ 3,200 $ 3,159 $ 3,138 (1) See note 17 for additional information related to consolidated securitization entities. (2) Included in other invested assets was $2 million, $11 million and $9 million of net investment income related to trading securities for the years ended December 31, 2017, 2016 and 2015, respectively. (b) Net Investment Gains (Losses) The following table sets forth net investment gains (losses) for the years ended December 31: (Amounts in millions) 2017 2016 2015 Available-for-sale securities: Realized gains $ 229 $ 249 $ 102 Realized losses (66 ) (121 ) (82 ) Net realized gains (losses) on available-for-sale securities 163 128 20 Impairments: Total other-than-temporary impairments (6 ) (40 ) (28 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) — — 1 Net other-than-temporary impairments (6 ) (40 ) (27 ) Trading securities 1 10 (7 ) Commercial mortgage loans 3 1 7 Net gains (losses) related to securitization entities (1) 7 (50 ) 5 Derivative instruments (2) 97 20 (76 ) Contingent consideration adjustment — (2 ) 2 Other — 5 1 Net investment gains (losses) $ 265 $ 72 $ (75 ) (1) See note 17 for additional information related to consolidated securitization entities. (2) 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 years ended December 31, 2017, 2016 and 2015 was $2,023 million, $1,881 million and $1,827 million, respectively, which was approximately 97%, 95% and 96%, 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 OCI as of and for the years ended December 31: (Amounts in millions) 2017 2016 2015 Beginning balance $ 42 $ 64 $ 83 Additions: Other-than-temporary impairments not previously recognized — 1 — Reductions: Securities sold, paid down or disposed (10 ) (23 ) (19 ) Ending balance $ 32 $ 42 $ 64 (c) Unrealized Investment Gains and Losses Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of December 31: (Amounts in millions) 2017 2016 2015 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 5,125 $ 3,656 $ 3,140 Equity securities 69 12 (10 ) Subtotal (1) 5,194 3,668 3,130 Adjustments to DAC, PVFP, sales inducements and benefit reserves (3,451 ) (1,611 ) (1,070 ) Income taxes, net (583 ) (711 ) (711 ) Net unrealized investment gains (losses) 1,160 1,346 1,349 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 75 84 95 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,085 $ 1,262 $ 1,254 (1) Excludes foreign exchange. The change in net unrealized gains (losses) on available-for-sale investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the years ended December 31: (Amounts in millions) 2017 2016 2015 Beginning balance $ 1,262 $ 1,254 $ 2,453 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 1,683 626 (2,467 ) Adjustment to DAC (1) Adjustment to PVFP (1,000 (33 ) ) (499 (5 ) ) 177 89 Adjustment to sales inducements (4 ) (16 ) 30 Adjustment to benefit reserves (803 ) (21 ) 290 Provision for income taxes 73 (31 ) 663 Change in unrealized gains (losses) on investment securities (84 ) 54 (1,218 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $55, $31 and $(2) (102 ) (57 ) 5 Change in net unrealized investment gains (losses) (186 ) (3 ) (1,213 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) (11 ) (14 ) Ending balance $ 1,085 $ 1,262 $ 1,254 (1) See note 6 for additional information. (d) Fixed Maturity and Equity Securities As of December 31, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,681 $ 870 $ — $ (3 ) $ — $ 5,548 State and political subdivisions 2,678 270 — (22 ) — 2,926 Non-U.S. government 2,147 106 — (20 ) — 2,233 U.S. corporate: Utilities 4,396 611 — (9 ) — 4,998 Energy 2,239 227 — (8 ) — 2,458 Finance and insurance 5,984 556 — (12 ) — 6,528 Consumer—non-cyclical 4,314 530 — (13 ) — 4,831 Technology and communications 2,665 192 — (12 ) — 2,845 Industrial 1,241 106 — (1 ) — 1,346 Capital goods 2,087 273 — (5 ) — 2,355 Consumer—cyclical 1,493 116 — (4 ) — 1,605 Transportation 1,160 134 — (3 ) — 1,291 Other 355 25 — (1 ) — 379 Total U.S. corporate 25,934 2,770 — (68 ) — 28,636 Non-U.S. corporate: Utilities 979 42 — (4 ) — 1,017 Energy 1,337 158 — (5 ) — 1,490 Finance and insurance 2,567 174 — (6 ) — 2,735 Consumer—non-cyclical 686 30 — (4 ) — 712 Technology and communications 913 71 — (2 ) — 982 Industrial 958 88 — (2 ) — 1,044 Capital goods 614 33 — (2 ) — 645 Consumer—cyclical 532 9 — (1 ) — 540 Transportation 656 68 — (3 ) — 721 Other 2,536 193 — (4 ) — 2,725 Total non-U.S. corporate 11,778 866 — (33 ) — 12,611 Residential mortgage-backed 3,831 223 14 (11 ) — 4,057 Commercial mortgage-backed 3,387 94 2 (37 ) — 3,446 Other asset-backed 3,056 17 1 (6 ) — 3,068 Total fixed maturity securities 57,492 5,216 17 (200 ) — 62,525 Equity securities 756 72 — (8 ) — 820 Total available-for-sale securities $ 58,248 $ 5,288 $ 17 $ (208 ) $ — $ 63,345 As of December 31, 2016, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair Value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,439 $ 647 $ — $ (50 ) $ — $ 6,036 State and political subdivisions 2,515 182 — (50 ) — 2,647 Non-U.S. government 2,024 101 — (18 ) — 2,107 U.S. corporate: Utilities 4,137 454 — (41 ) — 4,550 Energy 2,167 157 — (24 ) — 2,300 Finance and insurance 5,719 424 — (46 ) — 6,097 Consumer—non-cyclical 4,335 433 — (34 ) — 4,734 Technology and communications 2,473 157 — (32 ) — 2,598 Industrial 1,161 76 — (14 ) — 1,223 Capital goods 2,043 228 — (13 ) — 2,258 Consumer—cyclical 1,455 92 — (17 ) — 1,530 Transportation 1,121 86 — (17 ) — 1,190 Other 332 17 — (1 ) — 348 Total U.S. corporate 24,943 2,124 — (239 ) — 26,828 Non-U.S. corporate: Utilities 940 40 — (11 ) — 969 Energy 1,234 109 — (12 ) — 1,331 Finance and insurance 2,413 134 — (9 ) — 2,538 Consumer—non-cyclical 711 17 — (14 ) — 714 Technology and communications 953 44 — (10 ) — 987 Industrial 928 39 — (9 ) — 958 Capital goods 518 21 — (4 ) — 535 Consumer—cyclical 434 10 — (2 ) — 442 Transportation 619 65 — (7 ) — 677 Other 2,967 190 — (13 ) — 3,144 Total non-U.S. corporate 11,717 669 — (91 ) — 12,295 Residential mortgage-backed 4,122 259 10 (12 ) — 4,379 Commercial mortgage-backed 3,084 98 3 (56 ) — 3,129 Other asset-backed 3,170 15 1 (35 ) — 3,151 Total fixed maturity securities 57,014 4,095 14 (551 ) — 60,572 Equity securities 628 31 — (27 ) — 632 Total available-for-sale securities $ 57,642 $ 4,126 $ 14 $ (578 ) $ — $ 61,204 The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2017: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 78 $ (1 ) 21 $ 94 $ (2 ) 7 $ 172 $ (3 ) 28 State and political subdivisions 125 (1 ) 35 327 (21 ) 42 452 (22 ) 77 Non-U.S. government 583 (7 ) 26 239 (13 ) 20 822 (20 ) 46 U.S. corporate 1,871 (26 ) 296 1,347 (42 ) 190 3,218 (68 ) 486 Non-U.S. corporate 1,323 (12 ) 217 548 (21 ) 77 1,871 (33 ) 294 Residential mortgage-backed 707 (7 ) 81 130 (4 ) 46 837 (11 ) 127 Commercial mortgage-backed 476 (4 ) 69 646 (33 ) 90 1,122 (37 ) 159 Other asset-backed 853 (4 ) 160 230 (2 ) 57 1,083 (6 ) 217 Subtotal, fixed maturity securities 6,016 (62 ) 905 3,561 (138 ) 529 9,577 (200 ) 1,434 Equity securities 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total for securities in an unrealized loss position $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 % Below cost—fixed maturity securities: <20% Below cost $ 6,016 $ (62 ) 905 $ 3,555 $ (136 ) 526 $ 9,571 $ (198 ) 1,431 20%-50% Below cost — — — 6 (2 ) 3 6 (2 ) 3 Total fixed maturity securities 6,016 (62 ) 905 3,561 (138 ) 529 9,577 (200 ) 1,434 % Below cost—equity securities: <20% Below cost 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total equity securities 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total for securities in an unrealized loss position $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 Investment grade $ 5,867 $ (55 ) 898 $ 3,488 $ (135 ) 528 $ 9,355 $ (190 ) 1,426 Below investment grade 223 (10 ) 141 173 (8 ) 59 396 (18 ) 200 Total for securities in an unrealized loss position $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 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, 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 $ 181 $ (2 ) 33 $ 219 $ (7 ) 36 $ 400 $ (9 ) 69 Energy 106 (1 ) 22 140 (7 ) 15 246 (8 ) 37 Finance and insurance 626 (6 ) 91 222 (6 ) 30 848 (12 ) 121 Consumer—non-cyclical 299 (7 ) 46 221 (6 ) 31 520 (13 ) 77 Technology and communications 217 (4 ) 32 210 (8 ) 29 427 (12 ) 61 Industrial — — — 62 (1 ) 9 62 (1 ) 9 Capital goods 176 (2 ) 25 81 (3 ) 14 257 (5 ) 39 Consumer—cyclical 137 (2 ) 24 95 (2 ) 13 232 (4 ) 37 Transportation 117 (1 ) 21 97 (2 ) 13 214 (3 ) 34 Other 12 (1 ) 2 — — — 12 (1 ) 2 Subtotal, U.S. corporate securities 1,871 (26 ) 296 1,347 (42 ) 190 3,218 (68 ) 486 Non-U.S. corporate: Utilities 113 (1 ) 23 72 (3 ) 8 185 (4 ) 31 Energy 118 (2 ) 19 74 (3 ) 12 192 (5 ) 31 Finance and insurance 347 (3 ) 56 117 (3 ) 19 464 (6 ) 75 Consumer—non-cyclical 69 (1 ) 11 60 (3 ) 6 129 (4 ) 17 Technology and communications 107 (1 ) 18 30 (1 ) 6 137 (2 ) 24 Industrial 52 — 9 38 (2 ) 5 90 (2 ) 14 Capital goods 54 — 11 46 (2 ) 3 100 (2 ) 14 Consumer—cyclical 131 (1 ) 21 — — — 131 (1 ) 21 Transportation 47 (1 ) 7 64 (2 ) 8 111 (3 ) 15 Other 285 (2 ) 42 47 (2 ) 10 332 (4 ) 52 Subtotal, non-U.S. corporate securities 1,323 (12 ) 217 548 (21 ) 77 1,871 (33 ) 294 Total for corporate securities in an unrealized loss position $ 3,194 $ (38 ) 513 $ 1,895 $ (63 ) 267 $ 5,089 $ (101 ) 780 As indicated in the tables above, the majority of the securities in a continuous unrealized loss position for less than 12 months were investment grade and less than 20% below cost. These unrealized losses were primarily attributable to the increase in interest rates, mostly concentrated in our corporate securities. For securities that have been in a continuous unrealized loss position for less than 12 months, the average fair value percentage below cost was approximately 1% as of December 31, 2017. Fixed Maturity Securities In A Continuous Unrealized Loss Position For 12 Months Or More Of the $136 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 95% of the unrealized losses were related to investment grade securities as of December 31, 2017. The average fair value percentage below cost for these securities was approximately 4% as of December 31, 2017. These unrealized losses were predominantly attributable to corporate securities including variable rate securities purchased in a higher rate and lower spread environment and commercial mortgage-backed securities. As of December 31, 2017, we had non-U.S. corporate securities with unrealized losses of $2 million that have been in a continuous unrealized losses position for 12 months or more with a fair value that was more than 20% below cost. For all securities in an unrealized loss position, we expect to recover the amortized cost based on our estimate of the amount and timing of cash flows to be collected. We do not intend to sell nor do we expect that we will be required to sell these securities prior to recovering our amortized cost. See below for further discussion of gross unrealized losses by asset class. The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2016: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 1,074 $ (50 ) 37 $ — $ — — $ 1,074 $ (50 ) 37 State and political subdivisions 644 (32 ) 109 142 (18 ) 12 786 (50 ) 121 Non-U.S. government 497 (18 ) 51 — — — 497 (18 ) 51 U.S. corporate 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. corporate 2,257 (66 ) 330 408 (25 ) 57 2,665 (91 ) 387 Residential mortgage-backed 725 (11 ) 100 58 (1 ) 35 783 (12 ) 135 Commercial mortgage-backed 1,091 (55 ) 168 25 (1 ) 9 1,116 (56 ) 177 Other asset-backed 1,069 (13 ) 184 328 (22 ) 68 1,397 (35 ) 252 Subtotal, fixed maturity securities 12,578 (435 ) 1,690 1,623 (116 ) 275 14,201 (551 ) 1,965 Equity securities 119 (9 ) 182 114 (18 ) 47 233 (27 ) 229 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 % Below cost—fixed maturity securities: <20% Below cost $ 12,578 $ (435 ) 1,690 $ 1,543 $ (90 ) 267 $ 14,121 $ (525 ) 1,957 20%-50% Below cost — — — 80 (26 ) 8 80 (26 ) 8 Total fixed maturity securities 12,578 (435 ) 1,690 1,623 (116 ) 275 14,201 (551 ) 1,965 % Below cost—equity securities: <20% Below cost 118 (8 ) 167 101 (14 ) 38 219 (22 ) 205 20%-50% Below cost 1 (1 ) 15 13 (4 ) 9 14 (5 ) 24 Total equity securities 119 (9 ) 182 114 (18 ) 47 233 (27 ) 229 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 Investment grade $ 12,339 $ (432 ) 1,657 $ 1,354 $ (108 ) 250 $ 13,693 $ (540 ) 1,907 Below investment grade 358 (12 ) 215 383 (26 ) 72 741 (38 ) 287 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2016: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 855 $ (39 ) 130 $ 21 $ (2 ) 5 $ 876 $ (41 ) 135 Energy 190 (5 ) 30 276 (19 ) 38 466 (24 ) 68 Finance and insurance 1,438 (38 ) 177 113 (8 ) 15 1,551 (46 ) 192 Consumer—non-cyclical 921 (34 ) 117 — — — 921 (34 ) 117 Technology and communications 507 (22 ) 70 126 (10 ) 17 633 (32 ) 87 Industrial 226 (7 ) 38 77 (7 ) 10 303 (14 ) 48 Capital goods 322 (12 ) 50 6 (1 ) 1 328 (13 ) 51 Consumer—cyclical 431 (16 ) 56 26 (1 ) 6 457 (17 ) 62 Transportation 302 (16 ) 41 17 (1 ) 2 319 (17 ) 43 Other 29 (1 ) 2 — — — 29 (1 ) 2 Subtotal, U.S. corporate securities 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. corporate: Utilities 240 (10 ) 32 14 (1 ) 1 254 (11 ) 33 Energy 105 (3 ) 18 91 (9 ) 16 196 (12 ) 34 Finance and insurance 474 (8 ) 79 71 (1 ) 16 545 (9 ) 95 Consumer—non-cyclical 308 (14 ) 30 — — — 308 (14 ) 30 Technology and communications 232 (9 ) 34 28 (1 ) 2 260 (10 ) 36 Industrial 165 (5 ) 21 91 (4 ) 10 256 (9 ) 31 Capital goods 104 (2 ) 14 28 (2 ) 2 132 (4 ) 16 Consumer—cyclical 90 (2 ) 17 — — — 90 (2 ) 17 Transportation 106 (5 ) 16 25 (2 ) 2 131 (7 ) 18 Other 433 (8 ) 69 60 (5 ) 8 493 (13 ) 77 Subtotal, non-U.S. corporate securities 2,257 (66 ) 330 408 (25 ) 57 2,665 (91 ) 387 Total for corporate securities in an unrealized loss position $ 7,478 $ (256 ) 1,041 $ 1,070 $ (74 ) 151 $ 8,548 $ (330 ) 1,192 The scheduled maturity distribution of fixed maturity securities as of December 31, 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 $ 1,723 $ 1,738 Due after one year through five years 10,835 11,197 Due after five years through ten years 12,326 12,865 Due after ten years 22,334 26,154 Subtotal 47,218 51,954 Residential mortgage-backed 3,831 4,057 Commercial mortgage-backed 3,387 3,446 Other asset-backed 3,056 3,068 Total $ 57,492 $ 62,525 As of December 31, 2017, $12,960 million of our investments (excluding mortgage-backed and asset-backed securities) were subject to certain call provisions. As of December 31, 2017, securities issued by finance and insurance, utilities and consumer—non-cyclical industry groups represented approximately 22%, 15% and 13%, respectively, of our domestic and foreign corporate fixed maturity securities portfolio. No other industry group comprised more than 10% of our investment portfolio. As of December 31, 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. As of December 31, 2017 and 2016, $43 million and $42 million, respectively, of securities were on deposit with various state government insurance departments in order to comply with relevant insurance regulations. (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 December 31: 2017 2016 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,239 35 % $ 2,178 36 % Industrial 1,628 26 1,533 25 Office 1,510 24 1,430 23 Apartments 478 8 455 7 Mixed use 223 3 245 4 Other 275 4 284 5 Subtotal 6,353 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (9 ) (12 ) Total $ 6,341 $ 6,111 2017 2016 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,625 26 % $ 1,546 25 % Pacific 1,622 26 1,567 27 Middle Atlantic 927 14 915 15 Mountain 556 9 554 9 West North Central 446 7 435 7 East North Central 394 6 388 6 West South Central 336 5 311 5 New England 239 4 206 3 East South Central 208 3 203 3 Subtotal 6,353 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (9 ) (12 ) Total $ 6,341 $ 6,111 The following tables set forth the aging of past due commercial mortgage loans by property type as of December 31: 2017 (Amounts in millions) 31-60 days 61-90 days Greater than Total Current Total Property type: Retail $ 5 $ — $ — $ 5 $ 2,234 $ 2,239 Industrial — — — — 1,628 1,628 Office — — 6 6 1,504 1,510 Apartments — — — — 478 478 Mixed use — — — — 223 223 Other — — — — 275 275 Total recorded investment $ 5 $ — $ 6 $ 11 $ 6,342 $ 6,353 % of total commercial mortgage loans — % — % — % — % 100 % 100 % 2016 (Amounts in millions) 31-60 days 61-90 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 December 31, 2017 and 2016, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest. We did not have any other commercial mortgage loans that were past due for less than 90 days on non-accrual status as of December 31, 2016. We evaluate the impairment of commercial mortgage loans on an individual loan basis. As of December 31, 2017 and 2016, our commercial mortgage loans greater than 90 days past due included loans with appraised values in excess of the recorded investment and the current recorded investment of these loans was expected to be recoverable. During the years ended December 31, 2017 and 2016, we modified or extended 10 and 16 commercial mortgage loans, respectively, with a total carrying value of $27 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 and were not considered troubled debt restructurings, except for one loan during the year ended December 31, 2016, with a carrying value of $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 years ended December 31: (Amounts in millions) 2017 2016 2015 Allowance for credit losses: Beginning balance $ 12 $ 15 $ 22 Charge-offs — (6 ) (4 ) Recoveries — — — Provision (3 ) 3 (3 ) Ending balance $ 9 $ 12 $ 15 Ending allowance for individually impaired loans $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 9 $ 12 $ 15 Recorded investment: Ending balance $ 6,353 $ 6,125 $ 6,187 Ending balance of individually impaired loans $ 6 $ 12 $ 19 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,347 $ 6,113 $ 6,168 As of December 31, 2017, we had one individually impaired loan within the office property type with a recorded investment and unpaid principal balance of $6 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. As of December 31, 2015, we had an individually impaired commercial mortgage loan included within the office property type with a recorded investment of $5 million, an unpaid principal balance of $6 million and charge-offs of $1 million, which were recorded in the third quarter of 2015. In evaluating the credit quality of commercial mortgage loans, we assess the performance of the underlying loans using both quantitative and qualitative criteria. Certain risks associated with commercial mortgage loans can be evaluated by reviewing both the loan-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average loan-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was sold. The debt service coverage ratio is based on “normalized” annual income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio should not be used without considering other factors associated with the borrower, such as the borrower’s liquidity or access to other resources that may result in our expectation that the borrower will continue to make the future scheduled payments. The following tables set forth the loan-to-value of commercial mortgage loans by property type as of December 31: 2017 (Amounts in millions) 0%-50% 51%-60% 61%-75% 76%-100% Greater (1) Total Property type: Retail $ 919 $ 500 $ 820 $ — $ — $ 2,239 Industrial 731 363 532 2 — 1,628 Office 575 386 534 13 2 1,510 Apartments 226 101 146 5 — 478 Mixed use 99 59 65 — — 223 Other 68 28 179 — — 275 Total recorded investment $ 2,618 $ 1,437 $ 2,276 $ 20 $ 2 $ 6,353 % of total 41 % 23 % 36 % — % — % 100 % Weighted-average debt service coverage ratio 2.65 1.85 1.62 0.62 1.04 2.09 (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 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. 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 borrowers continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of December 31: 2017 (Amounts in millions) Less 1.00-1.25 1.26-1.50 1.51-2.00 Greater Total Property type: Retail $ 43 $ 235 $ 301 $ 1,020 $ 640 $ 2,239 Industrial 23 61 174 700 670 1,628 Office 51 61 157 569 672 1,510 Apartments — 17 77 191 193 478 Mixed use 2 4 26 86 105 223 Other 1 149 14 71 40 275 Total recorded investment $ 120 $ 527 $ 749 $ 2,637 $ 2,320 $ 6,353 % of total 2 % 8 % 12 % 42 % 36 % 100 % Weighted-average loan-to-value 55 % 60 % 58 % 58 % 42 % 52 % 2016 (Amounts in millions) Less 1.00-1.25 1.26-1.50 1.51-2.00 Greater Total Property type: Retail $ 67 $ 204 $ 425 $ 899 $ 583 $ 2,178 Industrial 71 113 236 599 514 1,533 Office 91 117 172 609 441 1,430 Apartments 19 22 44 217 153 455 Mixed use 2 9 19 128 87 245 Other 1 148 60 55 20 284 Total recorded investment $ 251 $ 613 $ 956 $ 2,507 $ 1,798 $ 6,125 % of total 4 % 10 % 16 % 41 % 29 % 100 % Weighted-average loan-to-value 61 % 60 % 59 % 58 % 45 % 55 % As of December 31, 2017 and 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. See note 17 for additional information related to consolidated 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. See note 17 for additional information related to consolidated securitization entities. (h) Limited Partnerships or Similar Entities Investments in limited 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 member equity investments in a widely held fund that is sponsored and managed by a reputable asset manager. We are not the primary beneficiary of any VIE investment in a limited partnership or similar entity. As of December 31, 2017 and 2016, the total carrying value of these investments was $222 million and $178 million, respectively. Our maximum exposure to loss is equal to the outstanding carrying value and future funding commitments. We have not contributed, and do not plan to contribute, any additional financial or other support outside of what is contractually obligated. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 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. For derivatives that meet the accounting requirements to be designated as hedges, the following disclosures for these derivatives are denoted as “derivatives designated as hedges,” which include both cash flow and fair value hedges. The following table sets forth our positions in derivative instruments as of December 31: Derivative assets Derivative liabilities Fair value Fair value (Amounts in millions) Balance sheet classification 2017 (6) 2016 Balance sheet classification 2017 (6) 2016 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $74 $237 Other liabilities $25 $203 Foreign currency swaps Other invested assets 1 4 Other liabilities — — Total cash flow hedges 75 241 25 203 Total derivatives designated as hedges 75 241 25 203 Derivatives not designated as hedges Interest rate swaps Other invested assets — 359 Other liabilities — 146 Foreign currency swaps Other invested assets 11 — Other liabilities — 5 Credit default swaps related to securitization entities (1) Restricted other invested assets — — Other liabilities — 1 Equity index options Other invested assets 80 72 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets — 1 Other liabilities 2 1 Other foreign currency contracts Other invested assets 110 35 Other liabilities 20 27 GMWB embedded derivatives Reinsurance recoverable (2) 14 16 Policyholder account balances (3) 250 303 Fixed index annuity embedded derivatives Other assets — — Policyholder account balances (4) 419 344 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (5) 14 11 Total derivatives not designated as hedges 215 483 705 838 Total derivatives $290 $724 $730 $1,041 (1) See note 17 for additional information related to consolidated securitization entities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. (3) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (4) Represents the embedded derivatives associated with our fixed index annuity liabilities. (5) Represents the embedded derivatives associated with our indexed universal life liabilities. (6) 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 $473 million and $206 million, respectively, in 2017. The fair value of derivative positions presented above was not offset by the respective collateral amounts received 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/ December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,570 $ 391 $ (806 ) $ 11,155 Foreign currency swaps Notional 22 — — 22 Total cash flow hedges 11,592 391 (806 ) 11,177 Total derivatives designated as hedges 11,592 391 (806 ) 11,177 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — — 4,679 Foreign currency swaps Notional 201 167 (19 ) 349 Credit default swaps Notional 39 — — 39 Credit default swaps related to securitization entities (1) Notional 312 — (312 ) — Equity index options Notional 2,396 2,982 (2,958 ) 2,420 Financial futures Notional 1,398 5,639 (5,754 ) 1,283 Equity return swaps Notional 165 265 (334 ) 96 Other foreign currency contracts Notional 3,130 2,384 (2,250 ) 3,264 Total derivatives not designated as hedges 12,320 11,437 (11,627 ) 12,130 Total derivatives $ 23,912 $ 11,828 $ (12,433 ) $ 23,307 (1) See note 17 for additional information related to consolidated securitization entities. (Number of policies) Measurement December 31, Additions Maturities/ December 31, Derivatives not designated as hedges GMWB embedded derivatives Policies 33,238 — (2,788 ) 30,450 Fixed index annuity embedded derivatives Policies 17,549 — (482 ) 17,067 Indexed universal life embedded derivatives Policies 1,074 1 (90 ) 985 Cash Flow Hedges Certain derivative instruments are designated as cash flow hedges. The changes in fair value of these instruments are recorded as a component of OCI. We designate and account for the following as cash flow hedges when they have met the effectiveness requirements: (i) various types of interest rate swaps to convert floating rate investments to fixed rate investments; (ii) various types of interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (iii) receive U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments; (iv) forward starting interest rate swaps to hedge against changes in interest rates associated with future fixed rate bond purchases and/or interest income; (v) forward bond purchase commitments to hedge against the variability in the anticipated cash flows required to purchase future fixed rate bonds; and (vi) other instruments to hedge the cash flows of various forecasted transactions. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the year ended December 31, 2017: (Amounts in millions) Gain (loss) recognized Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 96 $ 131 Net investment income $ 2 Net investment gains (losses) Interest rate swaps hedging assets — 8 Net investment gains (losses) — Net investment gains (losses) Foreign currency swaps (2 ) — Net investment income — Net investment gains (losses) Total $ 94 $ 139 $ 2 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the year ended December 31, 2016: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 198 $ 112 Net investment income $ 3 Net investment gains (losses) Interest rate swaps hedging assets — 2 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (5 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps (5 ) 2 Net investment income — Net investment gains (losses) Inflation indexed swaps — 7 Net investment gains (losses) — Net investment gains (losses) Foreign currency swaps (4 ) — Net investment income — Net investment gains (losses) Foreign currency swaps — — Net investment gains (losses) 5 Net investment gains (losses) Total $ 184 $ 123 $ 8 (1) Represents ineffective portion of cash flow hedges, as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the year ended December 31, 2015: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 78 $ 85 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging liabilities (10 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps 9 — Net investment income — Net investment gains (losses) Foreign currency swaps 2 — Net investment income — Net investment gains (losses) Forward bond purchase commitments — 1 Net investment income — Net investment gains (losses) Forward bond purchase commitments — 32 Net investment gains (losses) — Net investment gains (losses) Total $ 79 $ 118 $ — (1) Represents ineffective portion of cash flow hedges, as there were no amounts excluded from the measurement of effectiveness. The following table provides 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 years ended December 31: (Amounts in millions) 2017 2016 2015 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,085 $ 2,045 $ 2,070 Current period increases (decreases) in fair value, net of deferred taxes of $(56), $(64) and $(29) 38 120 50 Reclassification to net (income) loss, net of deferred taxes of $81, $43 and $43 (58 ) (80 ) (75 ) Derivatives qualifying as effective accounting hedges as of December 31 $ 2,065 $ 2,085 $ 2,045 The total of derivatives designated as cash flow hedges of $2,065 million, net of taxes, recorded in stockholders’ equity as of December 31, 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, $97 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 year ended December 31, 2017 and 2016, we reclassified $6 million and $10 million, respectively, to net income (loss) in connection with forecasted transactions that were no longer considered probable of occurring. There were immaterial amounts reclassified to net loss during the year ended December 31, 2015 in connection with forecasted transactions that were no longer considered probable of occurring. Derivatives Not Designated As Hedges We also enter into certain non-qualifying derivative instruments such as: (i) interest rate swaps and financial futures to mitigate interest rate risk as part of managing regulatory capital positions; (ii) credit default swaps to enhance yield and reproduce characteristics of investments with similar terms and credit risk; (iii) equity index options, equity return swaps, interest rate swaps and financial futures to mitigate the risks associated with liabilities that have guaranteed minimum benefits, fixed index annuities and indexed universal life; (iv) interest rate swaps where the hedging relationship does not qualify for hedge accounting; (v) credit default swaps to mitigate loss exposure to certain credit risk; (vi) foreign currency swaps, options and forward contracts to mitigate currency risk associated with non-functional currency investments held by certain foreign subsidiaries and future dividends or other cash flows from certain foreign subsidiaries to our holding company; and (vii) equity index options to mitigate certain macroeconomic risks associated with certain foreign subsidiaries. Additionally, we provide GMWBs on certain variable annuities that are required to be bifurcated as embedded derivatives. We also offer fixed index annuity and indexed universal life products and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives. We also had, prior to fourth quarter of 2017, 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 had recourse to the securitization entity. The interest rate swaps used for these entities were 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 were utilized in certain securitization entities to enhance the yield payable on the borrowings issued by the securitization entity and also included 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 table provides the pre-tax gain income (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the years ended December 31: (Amounts in millions) 2017 2016 2015 Classification of gain (loss) Interest rate swaps $ 4 $ 12 $ (11 ) Net investment gains (losses) Interest rate swaps related to securitization entities (1) — (10 ) (4 ) Net investment gains (losses) Foreign currency swaps 14 4 (22 ) Net investment gains (losses) Credit default swaps — 1 1 Net investment gains (losses) Credit default swaps related to securitization entities (1) 7 18 7 Net investment gains (losses) Equity index options 57 10 (25 ) Net investment gains (losses) Financial futures (43 ) (111 ) (34 ) Net investment gains (losses) Equity return swaps (22 ) (1 ) (3 ) Net investment gains (losses) Forward bond purchase commitments — — 2 Net investment gains (losses) Other foreign currency contracts 75 24 10 Net investment gains (losses) GMWB embedded derivatives 78 76 (25 ) Net investment gains (losses) Fixed index annuity embedded derivatives (84 ) (22 ) (7 ) Net investment gains (losses) Indexed universal life embedded derivatives 8 10 6 Net investment gains (losses) Total derivatives not designated as hedges $ 94 $ 11 $ (105 ) (1) See note 17 for additional information related to consolidated securitization entities. Derivative Counterparty Credit Risk Most of our derivative arrangements with counterparties require the posting of collateral upon meeting certain net exposure thresholds. For derivatives related to securitization entities, there are no arrangements that require either party to provide collateral and the recourse of the derivative counterparty is typically limited to the assets held by the securitization entity and there is no recourse to any entity other than the securitization entity. The following table presents additional information about derivative assets and liabilities subject to an enforceable master netting arrangement as of December 31: 2017 2016 (Amounts in millions) Derivatives (1) Derivatives Net Derivatives (1) Derivatives (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 278 $ 47 $ 231 $ 724 $ 387 $ 337 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 278 47 231 724 387 337 Gross amounts not offset in the balance sheet: Financial instruments (3) (23 ) (23 ) — (172 ) (172 ) — Collateral received (170 ) — (170 ) (467 ) — (467 ) Collateral pledged — (288 ) 288 — (557 ) 557 Over collateralization — 264 (264 ) 1 344 (343 ) Net amount $ 85 $ — $ 85 $ 86 $ 2 $ 84 (1) Included $2 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2017 and 2016, respectively. (2) Included $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 December 31, 2016. (3) Amounts represent derivative assets and/or liabilities that are presented gross within the balance sheet but are held with the same counterparty where we have a master netting arrangement. This adjustment results in presenting the net asset and net liability position for each counterparty. Except for derivatives related to securitization entities, almost all of our master swap agreements contain credit downgrade provisions that allow either party to assign or terminate derivative transactions if the other party’s long-term unsecured debt rating or financial strength rating is below the limit defined in the applicable agreement. If the downgrade provisions had been triggered as of December 31, 2017 and 2016, we could have been allowed to claim $85 million and $86 million, respectively, or have been required to disburse up to $2 million as of December 31, 2016. The chart above excludes embedded derivatives and derivatives related to securitization entities as those derivatives are not subject to master netting arrangements. We actively responded to the risk in our derivatives portfolio arising from our counterparties’ right to terminate their bilateral over-the-counter (“OTC”) derivatives transactions with us following the downgrades of our life insurance subsidiaries by Standard & Poor’s Financial Services, LLC’s (“S&P”) in September 2017 and by Moody’s Investors Service, Inc. (“Moody’s”) in October 2017. During October 2017, one counterparty terminated approximately $800 million in notional value with us, which we re-hedged using financial futures. 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 had credit derivative instruments related to securitization entities that we consolidated. These derivative instruments matured in 2017 in connection with the dissolution of the securitization entities and the maturity of the associated liabilities. These derivatives represented a customized index of reference entities with specified attachment points for certain derivatives. The credit default triggers were similar to those described above. In the event of default, the securitization entity would 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 was 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 December 31: 2017 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 December 31: 2017 2016 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Customized credit default swap index tranches related to securitization entities: (1) Portion backing third-party borrowings maturing 2017 (2) $ — $ — $ — $ 12 $ — $ — Portion backing our interest maturing 2017 (3) — — — 300 — 1 Total customized credit default swap index tranches related to securitization entities — — — 312 — 1 Total credit default swaps on index tranches $ — $ — $ — $ 312 $ — $ 1 (1) See note 17 for additional information related to consolidated securitization entities. (2) Original notional value was $39 million. (3) Original notional value was $300 million. |
Deferred Acquisition Costs
Deferred Acquisition Costs | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Acquisition Costs | (6) Deferred Acquisition Costs The following table presents the activity impacting DAC as of and for the years ended December 31: (Amounts in millions) 2017 2016 2015 Unamortized balance as of January 1 $ 4,241 $ 4,569 $ 5,200 Impact of foreign currency translation 12 3 (23 ) Costs deferred 88 150 295 Amortization, net of interest accretion (342 ) (481 ) (448 ) Impairment — — (455 ) Unamortized balance as of December 31 3,999 4,241 4,569 Accumulated effect of net unrealized investment (gains) losses (1,670 ) (670 ) (171 ) Balance as of December 31 $ 2,329 $ 3,571 $ 4,398 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 December 31, 2017 and 2016, we increased our future policy benefit reserves and recognized expenses of $89 million and $24 million, respectively. The premium deficiency test results were primarily driven by the low interest rate environment and updated assumptions to future policy charges. As of December 31, 2017 and 2016, we believe all of our other businesses had sufficient future income and therefore the related DAC was recoverable. In addition, we are required to analyze the impacts from net unrealized investment gains and losses on our available-for-sale investment securities backing insurance liabilities, as if those unrealized investment gains and losses were realized. These “shadow accounting” adjustments result in the recognition of unrealized gains and losses on related insurance assets and liabilities in a manner consistent with the recognition of the unrealized gains and losses on available-for-sale investment securities within the statements of comprehensive income and changes in equity. Changes to net unrealized investment (gains) losses may increase or decrease the ending DAC balance. Similar to a loss recognition event, when the DAC balance is reduced to zero, additional insurance liabilities are established if necessary. Unlike a loss recognition event, based on changes in net unrealized investment (gains) losses, these shadow adjustments may reverse from period to period. As of December 31, 2017, due primarily to the decline in interest rates increasing unrealized investments gains, we reduced the DAC balance of our long-term care insurance business to zero, a cumulative decrease in the accumulated effect of net unrealized investment gains of approximately $1.3 billion out of the total $1.7 billion in the table above, with an offsetting amount recorded in other comprehensive income (loss). In addition, we increased our future policy benefit reserves in our long-term care insurance business by a cumulative amount of approximately $1.0 billion as of December 31, 2017, with an offsetting amount recorded in other comprehensive income (loss). There was no impact to net income (loss). In the fourth quarter of 2016, as part of our annual review of assumptions, we had an increase in DAC amortization in our universal and term universal life insurance products by $144 million reflecting updated assumptions primarily for mortality experience in older age populations, partially offset by updated assumptions related to future policy charges. In the fourth quarter of 2015, as part of our annual review of assumptions, we increased DAC amortization by $109 million in our universal life insurance products, reflecting updated assumptions for persistency, long-term interest rates, mortality and other refinements as well as corrections related to reinsurance inputs. On September 30, 2015, Genworth Life and Annuity Insurance Company (“GLAIC”), our indirect wholly-owned subsidiary, entered into a Master Agreement (the “Master Agreement”) for a life block transaction with Protective Life Insurance Company (“Protective Life”). Pursuant to the Master Agreement, GLAIC and Protective Life agreed to enter into a reinsurance agreement (the “Reinsurance Agreement”), under the terms of which Protective Life would coinsure certain term life insurance business of GLAIC, net of third-party reinsurance. The Reinsurance Agreement was entered into in January 2016. In connection with entering into the Master Agreement, we recorded a DAC impairment of $455 million as a result of loss recognition testing of certain term life insurance policies as part of this life block transaction. As of December 31, 2015, we believe all of our other businesses had sufficient future income and therefore the related DAC was recoverable. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets | (7) Intangible Assets The following table presents our intangible assets as of December 31: 2017 2016 (Amounts in millions) Gross Accumulated Gross Accumulated PVFP $ 2,046 $ (1,959 ) $ 2,079 $ (1,924 ) Capitalized software 475 (384 ) 447 (352 ) Deferred sales inducements to contractholders 280 (221 ) 275 (199 ) Other 130 (81 ) 61 (53 ) Total $ 2,931 $ (2,645 ) $ 2,862 $ (2,528 ) Amortization expense related to PVFP, capitalized software and other intangible assets for the years ended December 31, 2017, 2016 and 2015 was $93 million, $17 million and $64 million, respectively. Amortization expense related to deferred sales inducements of $22 million, $21 million and $25 million, respectively, for the years ended December 31, 2017, 2016 and 2015 was included in benefits and other changes in policy reserves. Present Value of Future Profits The following table presents the activity in PVFP as of and for the years ended December 31: (Amounts in millions) 2017 2016 2015 Unamortized balance as of January 1 $ 222 $ 205 $ 229 Interest accreted at 5.38%, 5.15% and 6.45% 11 11 14 Amortization (46 ) 6 (38 ) Unamortized balance as of December 31 187 222 205 Accumulated effect of net unrealized investment (gains) losses (100 ) (67 ) (62 ) Balance as of December 31 $ 87 $ 155 $ 143 We regularly review our assumptions and periodically test PVFP for recoverability in a manner similar to our treatment of DAC. As of December 31, 2017, 2016 and 2015 we believe all of our businesses have sufficient future income and therefore the related PVFP is recoverable. The percentage of the December 31, 2017 PVFP balance net of interest accretion, before the effect of unrealized investment gains or losses, estimated to be amortized over each of the next five years is as follows: 2018 7.0% 2019 8.6% 2020 7.9% 2021 7.1% 2022 6.6% Amortization expense for PVFP in future periods will be affected by acquisitions, dispositions, net investment gains (losses) or other factors affecting the ultimate amount of gross profits realized from certain lines of business. Similarly, future amortization expense for other intangibles will depend on future acquisitions, dispositions and other business transactions. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance | (8) Reinsurance We reinsure a portion of our policy risks to other insurance companies in order to reduce our ultimate losses, diversify our exposures and provide capital flexibility. We also assume certain policy risks written by other insurance companies. Reinsurance accounting is followed for assumed and ceded transactions when there is adequate risk transfer. Otherwise, the deposit method of accounting is followed. Reinsurance does not relieve us from our obligations to policyholders. In the event that the reinsurers are unable to meet their obligations, we remain liable for the reinsured claims. We monitor both the financial condition of individual reinsurers and risk concentrations arising from similar geographic regions, activities and economic characteristics of reinsurers to lessen the risk of default by such reinsurers. Other than the relationship discussed below with Union Fidelity Life Insurance Company (“UFLIC”), we do not have significant concentrations of reinsurance with any one reinsurer that could have a material impact on our financial position. As of December 31, 2017, the maximum amount of individual ordinary life insurance normally retained by us on any one individual life policy was $5 million. We have several significant reinsurance transactions (“Reinsurance Transactions”) with UFLIC. In these transactions, we ceded to UFLIC in-force blocks of structured settlements issued prior to 2004, substantially all of our in-force blocks of variable annuities issued prior to 2004 and a block of long-term care insurance policies that we reinsured in 2000 from MetLife Insurance Company USA, now known as Brighthouse Life Insurance Company. Although we remain directly liable under these contracts and policies as the ceding insurer, the Reinsurance Transactions have the effect of transferring the financial results of the reinsured blocks to UFLIC. As of December 31, 2017 and 2016, we had a reinsurance recoverable of $14,255 million and $14,437 million, respectively, associated with those Reinsurance Transactions. To secure the payment of its obligations to us under the reinsurance agreements governing the Reinsurance Transactions, UFLIC has established trust accounts to maintain an aggregate amount of assets with a statutory book value at least equal to the statutory general account reserves attributable to the reinsured business less an amount required to be held in certain claims paying accounts. A trustee administers the trust accounts and we are permitted to withdraw from the trust accounts amounts due to us pursuant to the terms of the reinsurance agreements that are not otherwise paid by UFLIC. In addition, pursuant to a Capital Maintenance Agreement, General Electric Capital Corporation, an indirect subsidiary of General Electric Company (“GE”), previously agreed to maintain sufficient capital in UFLIC to maintain UFLIC’s risk-based capital (“RBC”) at not less than 150% of its company action level, as defined from time to time by the National Association of Insurance Commissioners (“NAIC”). In connection with its announced realignment and reorganization of the business of General Electric Capital Corporation in December 2015, General Electric Capital Corporation merged with and into GE. As a result, GE is the successor obligor under the Capital Maintenance Agreement. Under the terms of certain reinsurance agreements that our life insurance subsidiaries have with external parties, we pledged assets in either separate portfolios or in trust for the benefit of external reinsurers. These assets support the reserves ceded to those external reinsurers. We have pledged fixed maturity securities and commercial mortgage loans of $10,319 million and $835 million, respectively, as of December 31, 2017 and $9,680 million and $523 million, respectively, as of December 31, 2016 in connection with these reinsurance agreements. However, we maintain the ability to substitute these pledged assets for other qualified collateral, and may use, commingle, encumber or dispose of any portion of the collateral as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. The following table sets forth net domestic life insurance in-force as of December 31: (Amounts in millions) 2017 2016 2015 Direct life insurance in-force $ 625,710 $ 658,931 $ 686,446 Amounts assumed from other companies 793 861 899 Amounts ceded to other companies (1) (562,463 ) (491,466 ) (411,340 ) Net life insurance in-force $ 64,040 $ 168,326 $ 276,005 Percentage of amount assumed to net 1 % — % — % (1) Includes amounts accounted for under the deposit method. The following table sets forth the effects of reinsurance on premiums written and earned for the years ended December 31: Written Earned (Amounts in millions) 2017 2016 2015 2017 2016 2015 Direct: Life insurance $ 929 $ 977 $ 1,030 $ 929 $ 978 $ 1,030 Accident and health insurance 2,732 2,786 2,764 2,756 2,816 2,778 Mortgage insurance 1,571 1,641 1,754 1,154 1,561 1,514 Total direct 5,232 5,404 5,548 4,839 5,355 5,322 Assumed: Life insurance 38 35 34 38 35 34 Accident and health insurance 337 331 342 341 335 347 Mortgage insurance 7 6 10 2 12 22 Total assumed 382 372 386 381 382 403 Ceded: Life insurance (538 ) (856 ) (372 ) (538 ) (856 ) (372 ) Accident and health insurance (596 ) (629 ) (682 ) (604 ) (638 ) (688 ) Mortgage insurance (74 ) (83 ) (86 ) (74 ) (83 ) (86 ) Total ceded (1,208 ) (1,568 ) (1,140 ) (1,216 ) (1,577 ) (1,146 ) Net premiums $ 4,406 $ 4,208 $ 4,794 $ 4,004 $ 4,160 $ 4,579 Percentage of amount assumed to net 10 % 9 % 9 % Reinsurance recoveries recognized as a reduction of benefits and other changes in policy reserves amounted to $2,788 million, $3,008 million and $2,771 million during 2017, 2016 and 2015, respectively. |
Insurance Reserves
Insurance Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Reserves | (9) Insurance Reserves Future Policy Benefits The following table sets forth our recorded liabilities and the major assumptions underlying our future policy benefits as of December 31: (Amounts in millions) Mortality/ morbidity assumption Interest rate assumption 2017 2016 Long-term care insurance contracts (a) 3.75% - 7.50% $ 23,332 $ 21,590 Structured settlements with life contingencies (b) 1.00% - 8.00% 8,724 8,858 Annuity contracts with life contingencies (b) 1.00% - 8.00% 3,723 3,822 Traditional life insurance contracts (c) 3.00% - 7.50% 2,387 2,506 Supplementary contracts with life contingencies (b) 1.00% - 8.00% 303 284 Accident and health insurance contracts (d) 3.50% - 6.00% 3 3 Total future policy benefits $ 38,472 $ 37,063 (a) The 1983 Individual Annuitant Mortality Table or the 2000 U.S. Annuity Table, or the 1983 Group Annuitant Mortality Table or the 1994 Group Annuitant Mortality Table and company experience. (b) Assumptions for limited-payment contracts come from either the U.S. Population Table, the 1983 Group Annuitant Mortality Table, the 1983 Individual Annuitant Mortality Table, the Annuity 2000 Mortality Table or the 2012 Individual Annuity Reserving Table. (c) Principally modifications based on company experience of the Society of Actuaries 1965-70 or 1975-80 Select and the Ultimate Tables, the 1941, 1958, 1980 and 2001 Commissioner’s Standard Ordinary Tables, the 1980 Commissioner’s Extended Term table and (IA) Standard Table 1996 (modified). (d) The 1958 and 1980 Commissioner’s Standard Ordinary Tables, or the 2000 U.S. Annuity Table, or the 1983 Group Annuitant Mortality or the 2008 Valuation Basic Table. We regularly review our assumptions and perform loss recognition testing at least annually. 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 December 31, 2017 and 2016, we increased our future policy benefit reserves and recognized expenses of $89 million and $24 million, respectively. The premium deficiency test results were primarily driven by the low interest rate environment and updated assumptions to future policy charges. The 2015 test did not result in a charge. The liability for future policy benefits for our fixed immediate annuity products 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 result in further increases in the related future policy benefit reserves for these products. We annually perform loss recognition testing for the liability for future policy benefits for our long-term care insurance products. The 2017, 2016 and 2015 tests did not result in a charge. The liability for future policy benefits for our long-term care insurance business 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 further increases in the related future policy benefit reserves for this business by an amount that could be material to our results of operations and financial condition and liquidity. As of December 31, 2017 and 2016, we accrued future policy benefit reserves of $102 million and $30 million, respectively, in our consolidated balance sheet for profits followed by losses in our long-term care insurance business. The current present value of expected losses was approximately $2.8 billion and $2.2 billion, respectively, as of December 31, 2017 and 2016. However, there may be future adjustments to this estimate reflecting any variety of new and adverse trends that could result in increases to future policy benefit reserves for our profits followed by losses accrual, and such future increases could possibly be material to our results of operations and financial condition and liquidity. Policyholder Account Balances The following table sets forth our recorded liabilities for policyholder account balances as of December 31: (Amounts in millions) 2017 2016 Annuity contracts $ 12,272 $ 13,566 GICs, funding agreements and FABNs 260 560 Structured settlements without life contingencies 1,451 1,576 Supplementary contracts without life contingencies 677 719 Other 15 16 Total investment contracts 14,675 16,437 Universal and term universal life insurance contracts 9,520 9,225 Total policyholder account balances $ 24,195 $ 25,662 In the fourth quarter of 2017, as part of our annual review of assumptions, we increased our liability for policyholder account balances by $70 million for our universal and term universal life insurance products driven mostly by emerging mortality experience and from prolonged low interest rates. In the fourth quarter of 2016, as part of our annual review of assumptions, we increased our liability for policyholder account balances by $202 million for our universal and term universal life insurance products, reflecting updated assumptions primarily for mortality experience in older age populations. In the fourth quarter of 2015, as part of our annual review of assumptions, we increased our liability for policyholder account balances by $175 million for our universal and term universal life insurance products, reflecting updated assumptions for persistency, long-term interest rates, mortality and other refinements. Certain of our U.S. life insurance companies are members of the Federal Home Loan Bank (the “FHLB”) system in their respective regions. As of December 31, 2017 and 2016, we held $37 million and $36 million, respectively, of FHLB common stock related to those memberships which was included in equity securities. We have outstanding funding agreements with the FHLBs and also have a letter of credit which has not been drawn upon. The FHLBs have been granted a lien on certain of our invested assets to collateralize our obligations; however, we maintain the ability to substitute these pledged assets for other qualified collateral, and may use, commingle, encumber or dispose of any portion of the collateral as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by us, the FHLB’s recovery on the collateral is limited to the amount of our funding agreement liabilities to the FHLB. The amount of funding agreements outstanding with the FHLBs was $280 million and $254 million, respectively, as of December 31, 2017 and 2016 which was included in policyholder account balances. Included in the amount of funding agreements outstanding with the FHLBs as of December 31, 2017, is a new FHLB agreement entered into by our universal life insurance business, which was included in universal and term universal life insurance contracts in the table above. We have a letter of credit of $28 million related to one FHLB as of December 31, 2017 and 2016. These funding agreements and the letter of credit were collateralized by fixed maturity securities with a fair value of $388 million and $356 million, respectively, as of December 31, 2017 and 2016. Certain Non-traditional Long-Duration Contracts The following table sets forth information about our variable annuity products with death and living benefit guarantees as of December 31: (Dollar amounts in millions) 2017 2016 Account values with death benefit guarantees (net of reinsurance): Standard death benefits (return of net deposits) account value $ 2,365 $ 2,364 Net amount at risk $ 2 $ 4 Average attained age of contractholders 74 73 Enhanced death benefits (ratchet, rollup) account value $ 2,489 $ 2,611 Net amount at risk $ 114 $ 157 Average attained age of contractholders 74 74 Account values with living benefit guarantees: GMWBs $ 2,671 $ 2,781 Guaranteed annuitization benefits $ 1,198 $ 1,177 Variable annuity contracts may contain more than one death or living benefit; therefore, the amounts listed above are not mutually exclusive. Substantially all of our variable annuity contracts have some form of GMDB. As of December 31, 2017 and 2016, our total liability associated with variable annuity contracts with minimum guarantees was approximately $5,577 million and $5,737 million, respectively. The liability, net of reinsurance, for our variable annuity contracts with GMDB and guaranteed annuitization benefits was $94 million and $90 million as of December 31, 2017 and 2016, respectively. The contracts underlying the lifetime benefits such as GMWB and guaranteed annuitization benefits are considered “in the money” if the contractholder’s benefit base, or the protected value, is greater than the account value. As of December 31, 2017 and 2016, our exposure related to GMWB and guaranteed annuitization benefit contracts that were considered “in the money” was $645 million and $739 million, respectively. For GMWBs and guaranteed annuitization benefits, the only way the contractholder can monetize the excess of the benefit base over the account value of the contract is through lifetime withdrawals or lifetime income payments after annuitization. Account balances of variable annuity contracts with death or living benefit guarantees were invested in separate account investment options as follows as of December 31: (Amounts in millions) 2017 2016 Balanced funds $ 2,998 $ 3,046 Equity funds 1,262 1,271 Bond funds 498 550 Money market funds 85 87 Total $ 4,843 $ 4,954 |
Liability for Policy and Contra
Liability for Policy and Contract Claims | 12 Months Ended |
Dec. 31, 2017 | |
Liability for Policy and Contract Claims | (10) Liability for Policy and Contract Claims The following table sets forth our liability for policy and contract claims as of December 31: (Amounts in millions) 2017 2016 Liability for policy and contract claims for insurance lines other than short-duration contracts: Long-term care insurance $ 8,548 $ 8,034 Life insurance 244 226 Fixed annuities 24 16 Runoff 11 15 Total 8,827 8,291 Liability for policy and contract claims, net of reinsurance, related to short-duration contracts: U.S. Mortgage Insurance segment 454 633 Australia Mortgage Insurance segment 218 211 Canada Mortgage Insurance segment 87 112 Other mortgage insurance businesses 7 7 Total 766 963 Reinsurance recoverable on unpaid claims related to short-duration contracts: U.S. Mortgage Insurance segment 1 2 Total 1 2 Total liability for policy and contract claims $ 9,594 $ 9,256 The liability for policy and contract claims represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could possibly be significant, and result in increases in reserves by an amount that could be material to our results of operations and financial condition and liquidity. Long-term care insurance The following table sets forth changes in the liability for policy and contract claims for our long-term care insurance business for the dates indicated: (Amounts in millions) 2017 2016 2015 Beginning balance as of January 1 $ 8,034 $ 6,749 $ 6,216 Less reinsurance recoverables (2,310 ) (2,055 ) (1,926 ) Net balance as of January 1 5,724 4,694 4,290 Incurred related to insured events of: Current year 2,234 2,066 1,655 Prior years (183 ) 377 39 Total incurred 2,051 2,443 1,694 Paid related to insured events of: Current year (176 ) (166 ) (151 ) Prior years (1,644 ) (1,506 ) (1,371 ) Total paid (1,820 ) (1,672 ) (1,522 ) Interest on liability for policy and contract claims 301 259 232 Net balance as of December 31 6,256 5,724 4,694 Add reinsurance recoverables 2,292 2,310 2,055 Ending balance as of December 31 $ 8,548 $ 8,034 $ 6,749 In 2017, the favorable development of $183 million related to insured events of prior years was primarily attributable to favorable claim terminations. In 2016, the liability for policy and contract claims increased $1,285 million in our long-term care insurance business largely from the completion of our annual review of assumptions in the third quarter of 2016 which increased reserves by $460 million and increased reinsurance recoverables by $25 million. The increase was also attributable to aging and growth of the in-force block and higher severity on new claims in the current year. Based on our 2016 annual review of our long-term care insurance claim reserves we updated several assumptions and methodologies primarily impacting claim termination rates, benefit utilization rates and incurred but not reported reserves. The primary impact of assumption changes was from an overall lowering of claim termination rate assumptions for longer duration claims, particularly for reimbursement claims. We also updated our claim termination rate assumptions to reflect differences between product types, separating our indemnity and reimbursement blocks that were previously combined, and modestly refined our utilization rate assumptions and methodologies as well as refined our methodology primarily related to the calculation of incurred but not reported reserves to better reflect the aging of the in-force blocks. In addition, certain of our third-party reinsurance counterparties updated their assumptions and methodologies, which increased our long-term care insurance claim reserves by $222 million with an offsetting increase in reinsurance recoverables of $222 million in the fourth quarter of 2016. In 2016, the incurred amount of $377 million related to insured events of prior years increased largely as a result of the completion of our annual review of our long-term care insurance claim reserves, as described above, which resulted in recording higher reserves of $305 million, net of reinsurance recoverables of $221 million. In 2015, the incurred amount of $39 million related to insured events of prior years increased primarily from lower claim termination rates, partially offset by $25 million of net favorable corrections and adjustments in 2015. U.S. Mortgage Insurance segment The following table sets forth information about incurred claims, net of reinsurance, as well as cumulative number of reported delinquencies and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our U.S. Mortgage Insurance segment as of December 31, 2017. The information about the incurred claims development for the years ended December 31, 2008 to 2016 and the historical reported delinquencies as of December 31, 2016 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses, net of reinsurance Total of Incurred-But- Not-Reported liabilities including expected development on reported claims as of December 31, 2017 Number of reported delinquencies (2) (Dollar amounts in millions) For the years ended December 31, Accident year (1) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 943 1,041 1,211 1,339 $ 1,353 $ 1,347 $ 1,376 $ 1,385 $ 1,391 $ 1,396 $ 1 133,491 2009 — 1,341 1,697 1,762 1,755 1,752 1,782 1,792 1,799 1,802 1 151,732 2010 — — 977 1,157 1,139 1,146 1,165 1,173 1,173 1,174 1 90,231 2011 — — — 910 931 913 929 938 939 939 1 68,984 2012 — — — — 718 675 671 673 671 668 — 48,170 2013 — — — — — 475 407 392 387 384 — 33,934 2014 — — — — — — 328 288 269 261 — 26,080 2015 — — — — — — — 235 208 187 — 20,915 2016 — — — — — — — — 198 160 1 17,423 2017 — — — — — — — — — 171 19 15,097 Total incurred $ 7,142 (1) Represents the year in which first monthly mortgage payments have been missed by the borrower. (2) Represents reported and outstanding delinquencies less actual cures as of December 31 for each respective accident year. The following table sets forth paid claims development, net of reinsurance, for our U.S. mortgage insurance segment for the year ended December 31, 2017. The information about paid claims development for the years ended December 31, 2008 to 2016, is presented as supplementary information. (Amounts in millions) Cumulative paid claims and allocated claim adjustment expenses, net of Accident year (1) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 66 $ 572 $ 917 $ 1,046 $ 1,145 $ 1,217 $ 1,271 $ 1,322 $ 1,353 $ 1,375 2009 — 285 940 1,245 1,434 1,556 1,638 1,709 1,753 1,777 2010 — — 140 567 844 973 1,049 1,109 1,139 1,158 2011 — — — 65 497 722 816 874 906 927 2012 — — — — 92 391 532 602 634 650 2013 — — — — — 44 202 297 340 362 2014 — — — — — — 22 127 195 233 2015 — — — — — — — 12 85 145 2016 — — — — — — — — 10 64 2017 — — — — — — — — — 6 Total paid $ 6,697 Total incurred $ 7,142 Total paid 6,697 All outstanding liabilities before 2008, net of reinsurance 9 Liability for policy and contract claims, net of reinsurance $ 454 (1) Represents the year in which first monthly mortgage payments have been missed by the borrower. The following table sets forth our average payout of incurred claims by age for our U.S. Mortgage Insurance segment as of December 31, 2017: Average annual percentage payout of incurred claims, net of reinsurance, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 8.9 % 39.2 % 24.3 % 10.9 % 6.2 % 4.1 % 3.1 % 2.6 % 1.8 % 1.6 % Canada Mortgage Insurance segment The following table sets forth information about incurred claims, as well as cumulative number of reported delinquencies and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our Canada Mortgage Insurance segment as of December 31, 2017. The information about the incurred claims development for the years ended December 31, 2008 to 2016 and the historical reported delinquencies as of December 31, 2016 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses Total of Incurred-But- Not-Reported liabilities including expected development on reported claims as of December 31, 2017 (3) Number of reported delinquencies (4) (Dollar amounts in millions) (1) For the years ended December 31, Accident year (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 108 $ 149 $ 152 $ 155 $ 158 $ 158 $ 158 $ 158 $ 158 $ 158 $ — 6,138 2009 — 151 169 191 194 196 196 195 195 195 — 6,702 2010 — — 135 149 167 169 168 167 168 167 — 6,601 2011 — — — 133 149 151 151 150 150 149 — 5,707 2012 — — — — 111 110 109 108 108 108 — 5,316 2013 — — — — — 102 98 97 97 96 — 4,949 2014 — — — — — — 91 87 85 84 — 4,948 2015 — — — — — — — 101 91 87 — 4,626 2016 — — — — — — — — 119 103 — 5,133 2017 — — — — — — — — — 78 26 3,785 Total incurred $ 1,225 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. (2) Represents the year in which first monthly mortgage payments have been missed by the borrower. (3) Incurred-but-not-reported liabilities exist only relative to the year 2017 as lenders are required to report losses after three consecutive monthly mortgage payments have been missed by the borrower. (4) Represents reported delinquencies as of December 31 for each respective accident year. The following table sets forth paid claims development, for our Canada Mortgage Insurance segment for the year ended December 31, 2017. The information about paid claims development for the years ended December 31, 2008 to 2016, is presented as supplementary information. (Amounts in millions) (1) Cumulative paid claims and allocated claim adjustment expenses Accident year (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 8 $ 107 $ 148 $ 158 $ 160 $ 163 $ 163 $ 163 $ 163 $ 163 2009 — 24 127 185 193 195 195 194 194 194 2010 — — 27 122 164 168 167 167 167 167 2011 — — — 37 133 150 150 150 149 148 2012 — — — — 24 99 106 107 107 107 2013 — — — — — 25 87 95 97 96 2014 — — — — — — 17 73 82 84 2015 — — — — — — — 19 74 86 2016 — — — — — — — — 17 81 2017 — — — — — — — — — 13 Total paid $ 1,139 Total incurred $ 1,225 Total paid 1,139 Other (3) 1 All outstanding liabilities before 2008 — Liability for policy and contract claims $ 87 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. (2) Represents the year in which first monthly mortgage payments have been missed by the borrower. (3) Includes the portion of the borrower recovery accrual that corresponds to loss reserves and is recognized as a reduction to losses incurred that we anticipate to receive in the future once the claims have been settled, and foreign currency translation. The following table sets forth our average payout of incurred claims by age for our Canada Mortgage Insurance segment as of December 31, 2017: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 17.9 % 62.4 % 16.6 % 2.5 % 0.1 % 0.2 % (0.3 )% 0.1 % — % — % Australia Mortgage Insurance segment The following table sets forth information about incurred claims, as well as cumulative number of reported delinquencies and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our Australia Mortgage Insurance segment as of December 31, 2017. The information about the incurred claims development for the years ended December 31, 2008 to 2016 and the historical reported delinquencies as of December 31, 2016 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses Total of Incurred-But- Not-Reported liabilities including expected development on reported claims as of December 31, 2017 Number of reported delinquencies (3) (Dollar amounts in millions) (1) For the years ended December 31, Accident year (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 74 $ 158 $ 153 $ 155 $ 172 $ 176 $ 179 $ 177 $ 178 $ 178 $ — 9,197 2009 — 71 109 101 122 127 130 133 135 136 — 8,868 2010 — — 74 111 138 140 142 143 143 145 — 8,683 2011 — — — 98 142 132 127 127 127 128 — 9,321 2012 — — — — 88 108 90 88 86 87 — 7,595 2013 — — — — — 82 84 69 63 62 — 7,087 2014 — — — — — — 80 92 76 71 — 7,463 2015 — — — — — — — 88 119 96 1 7,606 2016 — — — — — — — — 106 141 14 8,020 2017 — — — — — — — — — 95 36 4,001 Total incurred $ 1,139 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. (2) The accident year is estimated by allowing an additional five months for development from the time the first monthly mortgage payments have been missed by the borrower. (3) Represents reported and outstanding delinquencies less actual cures as of December 31 for each respective accident year. The following table sets forth paid claims development, for our Australia Mortgage Insurance segment for the year ended December 31, 2017. The information about paid claims development for the years ended December 31, 2008 to December 31, 2016, is presented as supplementary information: (Amounts in millions) (1) Cumulative paid claims and allocated claim adjustment expenses Accident year (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 3 $ 51 $ 118 $ 141 $ 167 $ 174 $ 176 $ 177 $ 178 $ 180 2009 — 2 30 61 108 124 128 132 134 136 2010 — — 2 25 104 128 136 139 141 143 2011 — — — 2 64 106 119 123 126 128 2012 — — — — 5 55 73 80 83 86 2013 — — — — — 4 29 47 54 60 2014 — — — — — — 3 27 47 63 2015 — — — — — — — 3 30 69 2016 — — — — — — — — 3 54 2017 — — — — — — — — — 7 Total paid $ 926 Total incurred $ 1,139 Total paid 926 Other (3) 5 All outstanding liabilities before 2008 — Liability for policy and contract claims $ 218 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. (2) The accident year is estimated by allowing an additional five months for development from the time the first monthly mortgage payments have been missed by the borrower. (3) Includes foreign currency translation. The following table sets forth our average payout of incurred claims by age for our Australia Mortgage Insurance segment as of December 31, 2017: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 5.4 % 34.0 % 32.5 % 16.2 % 7.1 % 2.7 % 1.6 % 0.8 % 0.7 % 0.4 % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans | (11) Employee Benefit Plans (a) Pension and Retiree Health and Life Insurance Benefit Plans Essentially all of our employees are enrolled in a qualified defined contribution pension plan. The plan is 100% funded by Genworth. We make annual contributions to each employee’s pension plan account based on the employee’s age, service and eligible pay. Employees are vested in the plan after three years of service. As of December 31, 2017 and 2016, we recorded a liability related to these benefits of $11 million and $10 million, respectively. In addition, certain employees also participate in non-qualified defined contribution plans and in qualified and non-qualified defined benefit pension plans. The plan assets, projected benefit obligation and accumulated benefit obligation liabilities of these plans were not material to our consolidated financial statements individually or in the aggregate. As of December 31, 2017 and 2016, we recorded a liability related to these plans of $77 million and $69 million, respectively, which we accrued in other liabilities in the consolidated balance sheets. In 2017, we recognized a decrease of $5 million in OCI. In 2016, we recognized a decrease of less than $1 million in OCI. In connection with the sale of our lifestyle protection insurance business in December 2015, we wrote off our pension benefit assets of $17 million and recognized all of the unrealized actuarial losses of $15 million related to the U.K. pension plan. In addition, related to the settlement of the U.K. pension plan, we purchased a group annuity contract. To fully fund this group annuity contract, we incurred $69 million of expense in 2015, of which $58 million was paid in 2015. These items resulted in $101 million of pension settlement costs related to the sale. The amounts associated with the group annuity contract were held in a third-party trust for the benefit of the participants until individual annuity contracts were transferred to the participants on September 1, 2016. As a result, the U.K. pension plan was completely settled in September 2016. See note 24 for additional details related to the sale of our lifestyle protection insurance business. We provide retiree health benefits to domestic employees hired prior to January 1, 2005 who meet certain service requirements. Under this plan, retirees over 65 years of age receive a subsidy towards the purchase of a Medigap policy, and retirees under 65 years of age receive medical benefits similar to our employees’ medical benefits. In December 2009, we announced that eligibility for retiree medical benefits would be limited to associates who were within 10 years of retirement eligibility as of January 1, 2010. This resulted in a negative plan amendment which will be amortized over the average future service of the participants. We also provide retiree life and long-term care insurance benefits. The plans are funded as claims are incurred. As of December 31, 2017 and 2016, the accumulated postretirement benefit obligation associated with these benefits was $89 million and $87 million, respectively, which we accrued in other liabilities in the consolidated balance sheets. In 2017, we recognized an increase of $2 million in OCI. In 2016, we recognized a decrease of $8 million in OCI. Our cost associated with our pension, retiree health and life insurance benefit plans was $21 million, $18 million and $25 million for the years ended December 31, 2017, 2016 and 2015, respectively. (b) Savings Plans Our domestic employees participate in qualified and non-qualified defined contribution savings plans that allow employees to contribute a portion of their pay to the plan on a pre-tax basis. In 2016, we matched these contributions, which vest immediately, up to 6% of the employee’s pay. Beginning January 1, 2017, we made matching contributions equal to 100% of the first 4% of pay deferred by an employee and 50% of the next 2% of pay deferred by an employee so that our matching contribution did not exceed 5% of an employee’s pay. Employees hired on or after January 1, 2011 will not vest immediately in Genworth matching contributions but will fully vest in the matching contributions after two complete years of service. One option available to employees in the defined contribution savings plan is the ClearCourse ® (c) Health and Welfare Benefits for Active Employees We provide health and welfare benefits to our employees, including health, life, disability, dental and long-term care insurance. Our long-term care insurance is provided through our group long-term care insurance products. The premiums recorded by this business related to these benefits were insignificant during 2017, 2016 and 2015. |
Borrowings and Other Financings
Borrowings and Other Financings | 12 Months Ended |
Dec. 31, 2017 | |
Borrowings and Other Financings | (12) Borrowings and Other Financings (a) Short-Term Borrowings Revolving Credit Facility On September 29, 2017, Genworth MI Canada Inc. (“Genworth Canada”), our majority-owned subsidiary, entered into a CAD$200 million syndicated senior unsecured revolving credit facility, which matures on September 29, 2022. Any borrowings under Genworth Canada’s credit facility will bear interest at a rate per annum equal to, at the option of Genworth Canada, either a fixed rate or a variable rate pursuant to the terms of the credit agreement. The credit facility includes customary representations, warranties, covenants, terms and conditions. This syndicated credit facility replaced an existing CAD$100 million senior unsecured revolving credit facility which was cancelled on September 29, 2017. As of December 31, 2017, there was no amount outstanding under Genworth Canada’s credit facility and all of the covenants were fully met. In April 2016, Genworth Holdings terminated its $300 million multicurrency revolving credit facility, prior to its September 26, 2016 maturity date. There were no amounts outstanding under the credit facility at the time of termination. (b) Long-Term Borrowings The following table sets forth total long-term borrowings as of December 31: (Amounts in millions) 2017 2016 Genworth Holdings 6.52% Senior Notes, due 2018 $ 597 $ 597 7.70% Senior Notes, due 2020 397 397 7.20% Senior Notes, due 2021 381 381 7.625% Senior Notes, due 2021 704 704 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 6.15% Fixed-to-Floating Rate Junior Subordinated Notes, due 2066 598 598 Subtotal 3,773 3,773 Bond consent fees (33 ) (39 ) Deferred borrowing charges (16 ) (18 ) Total Genworth Holdings 3,724 3,716 Canada 5.68% Senior Notes, due 2020 219 205 4.24% Senior Notes, due 2024 128 119 Subtotal 347 324 Deferred borrowing charges (1 ) (2 ) Total Canada 346 322 Australia Floating Rate Junior Notes, due 2025 156 145 Deferred borrowing charges (2 ) (3 ) Total Australia 154 142 Total $ 4,224 $ 4,180 Genworth Holdings Long-Term Senior Notes As of December 31, 2017, Genworth Holdings had outstanding seven series of fixed rate senior notes with varying interest rates between 4.80% and 7.70% and maturity dates between 2018 and 2034. The senior notes are Genworth Holdings’ direct, unsecured obligations and rank equally in right of payment with all of its existing and future unsecured and unsubordinated obligations. 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. We have the option to redeem all or a portion of each series of senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. On March 18, 2016, Genworth Holdings received the requisite consents, pursuant to a solicitation of consents (the “Consent Solicitation”), to amend the indenture dated as of June 15, 2004, by and between Genworth Holdings and The Bank of New York Mellon Trust Company, N.A. (the “Trustee”), as successor to JP Morgan Chase Bank, N.A., as amended and supplemented from time to time (as so amended and supplemented, the “Senior Notes Indenture”) and the indenture dated as of November 14, 2006, by and between Genworth Holdings and the Trustee, as amended and supplemented from time to time (as so amended and supplemented, the “Subordinated Notes Indenture” and together with the Senior Notes Indenture, the “Indentures”). On March 18, 2016, Genworth Holdings, Genworth Financial, as guarantor, and the Trustee entered into Supplemental Indenture No. 12 to the Senior Notes Indenture and the Third Supplemental Indenture to the Subordinated Notes Indenture (the “Supplemental Indentures”) that amended the Senior Notes Indenture and the Subordinated Notes Indenture, respectively, to (i) exclude Genworth Life Insurance Company (“GLIC”) and Genworth Life Insurance Company of New York (“GLICNY”), which operate our long-term care insurance business, from the event of default provisions of the Indentures (such amendment also previously excluded Brookfield Life and Annuity Insurance Company Limited (“BLAIC”) until it merged into GLIC in October 2016) and (ii) clarify that one or more transactions disposing of any or all of the Genworth Holdings’ long-term care and other life insurance businesses and assets (a “Life Sale”) would not constitute a disposition of “all or substantially all” of Genworth Holdings’ assets under the Indentures, provided that in order to rely on that clarification, the assets of our U.S. Mortgage Insurance segment would be contributed to Genworth Holdings and 80% of any Net Cash Proceeds, as defined in the Supplemental Indentures, to us from any Life Sale would be used to reduce outstanding indebtedness. The Supplemental Indentures became operative on March 22, 2016 upon the payment of the applicable consent fees payable under the terms of the Consent Solicitation. We paid total fees related to the Consent Solicitation of approximately $61 million, including bond consent fees of $43 million, which were deferred, as well as broker, advisor and investment banking fees of $18 million, which were expensed, in the first quarter of 2016. In January 2016, Genworth Holdings redeemed $298 million of its 8.625% senior notes due 2016 issued in December 2009 and paid a make-whole premium of approximately $20 million pre-tax in addition to accrued and unpaid interest. During the first quarter of 2016, Genworth Holdings repurchased $28 million principal amount of its senior notes with various maturity dates for a pre-tax gain of $4 million and paid accrued and unpaid interest thereon. During the third quarter of 2015, Genworth Holdings repurchased $50 million aggregate principal amount of its senior notes for a pre-tax loss of $1 million and paid accrued and unpaid interest thereon. Long-Term Junior Subordinated Notes As of December 31, 2017, Genworth Holdings had outstanding floating rate junior notes having an aggregate principal amount of $598 million, with an annual interest rate equal to three-month London Interbank Offered Rate (“LIBOR”) plus 2.0025% payable quarterly, until the notes mature in November 2066 (“2066 Notes”). Prior to November 2016, these fixed-to-floating rate junior notes had an annual interest rate equal to 6.15% payable semi-annually. Subject to certain conditions, Genworth Holdings has the right, on one or more occasions, to defer the payment of interest on the 2066 Notes during any period of up to 10 years without giving rise to an event of default and without permitting acceleration under the terms of the 2066 Notes. Genworth Holdings will not be required to settle deferred interest payments until it has deferred interest for five years or made a payment of current interest. In the event of our bankruptcy, holders will have a limited claim for deferred interest. Genworth Holdings may redeem the 2066 Notes on November 15, 2036, the “scheduled redemption date,” but only to the extent that it has received net proceeds from the sale of certain qualifying capital securities. Genworth Holdings may redeem the 2066 Notes in whole or in part at their principal amount plus accrued and unpaid interest to the date of redemption. The 2066 Notes will be subordinated to all existing and future senior, subordinated and junior subordinated debt of Genworth Holdings, except for any future debt that by its terms is not superior in right of payment, and will be effectively subordinated to all liabilities of our subsidiaries. Genworth Financial provides a full and unconditional guarantee to the trustee of the 2066 Notes and the holders of the 2066 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 2066 Notes, and the full and punctual payment of all other amounts payable by Genworth Holdings under the 2066 Notes indenture in respect of the 2066 Notes. In connection with the issuance of the 2066 Notes, we entered into a Replacement Capital Covenant (the “Replacement Capital Covenant”), whereby we agreed, for the benefit of holders of our 6.5% Senior Notes due 2034, that Genworth Holdings will not repay, redeem or repurchase all or any part of the 2066 Notes on or before November 15, 2046, unless such repayment, redemption or repurchase is made from the proceeds of the issuance of certain replacement capital securities and pursuant to the other terms and conditions set forth in the Replacement Capital Covenant. Canada As of December 31, 2017, Genworth Canada, our majority-owned subsidiary, had outstanding two series of fixed rate senior notes with interest rates of 5.68% and 4.24% and maturity dates of 2020 and 2024, respectively. The senior notes are redeemable at the option of Genworth Canada, in whole or in part, at any time. Australia As of December 31, 2017, Genworth Financial Mortgage Insurance Pty Limited, our majority-owned subsidiary, had outstanding one series of subordinated floating rate notes with an interest rate of three-month Bank Bill Swap reference rate plus a margin of 3.50% and maturity date of 2025. In June 2016, Genworth Financial Mortgage Insurance Pty Limited redeemed all of its outstanding AUD$50 million of subordinated floating rate notes with an interest rate of three-month Bank Bill Swap reference rate plus a margin of 4.75% due 2021. In July 2015, Genworth Financial Mortgage Insurance Pty Limited issued AUD$200 million of subordinated floating rate notes due 2025 with an interest rate of three-month Bank Bill Swap reference rate plus a margin of 3.50%. Genworth Financial Mortgage Insurance Pty Limited used the proceeds it received from this transaction to redeem AUD$90 million of its outstanding debt and for general corporate purposes and incurred a $2 million pre-tax early redemption payment. (c) Non-Recourse Funding Obligations As of December 31, 2017 and 2016, Rivermont Life Insurance Company I (“Rivermont I”), our wholly-owned, special purpose consolidated captive insurance subsidiary, had an outstanding floating rate subordinated note of $310 million, net of $5 million of deferred borrowing charges, due in 2050 with accrual of interest based on one-month LIBOR that resets every 28 days plus a fixed margin. This surplus note has been deposited into a trust that has issued money market securities. Both principal and interest payments on the money market securities are guaranteed by a third-party insurance company. The holders of the money market securities cannot require repayment from us or Rivermont I, the direct issuer of the note. We have provided a limited guarantee to Rivermont I, where under adverse interest rate, mortality or lapse scenarios (or combination thereof), we may be required to provide additional funds to Rivermont I. GLAIC, our wholly-owned subsidiary, has agreed to indemnify Rivermont I and the third-party insurer for certain limited costs related to the issuance of these obligations. Any payment of principal, including by redemption, or interest on the note may only be made with the prior approval of the Director of Insurance of the State of South Carolina in accordance with the terms of its licensing orders and in accordance with applicable law. The holders of the note have no rights to accelerate payment of principal of the note under any circumstances, including without limitation, for non-payment or breach of any covenant. Rivermont I, the direct issuer of the note, reserves the right to repay the note that it has issued at any time, subject to prior regulatory approval. During the three months ended March 31, 2016, in connection with a life block transaction, River Lake Insurance Company, our indirect wholly-owned subsidiary, redeemed $975 million of its total outstanding floating rate subordinated notes due in 2033 and River Lake Insurance Company II (“River Lake II”), our indirect wholly-owned subsidiary, redeemed $645 million of its total outstanding floating rate subordinated notes due in 2035 for a pre-tax loss of $9 million from the write-off of deferred borrowing costs. During 2015, River Lake Insurance Company repaid $30 million of its total outstanding floating rate subordinated notes due in 2033. During 2015, River Lake II repaid $31 million of its total outstanding floating rate subordinated notes due in 2035. The weighted-average interest rates on the non-recourse funding obligations as of December 31, 2017 and 2016 were 3.54% and 2.75%, respectively. (d) Liquidity Principal amounts under our long-term borrowings (including senior notes) and non-recourse funding obligations by maturity were as follows as of December 31, 2017: (Amounts in millions) Amount 2018 $ 597 2019 — 2020 616 2021 1,085 2022 and thereafter (1) 2,293 Total $ 4,591 (1) Repayment of $315 million of our non-recourse funding obligations requires regulatory approval. (e) Repurchase agreements and securities lending activity Repurchase agreements We previously had a repurchase program in which we sold an investment security at a specified price and agreed to repurchase that security at another specified price at a later date. As of December 31, 2016, the fair value of securities pledged under the repurchase program was $79 million and the repurchase obligation of $75 million was included in other liabilities in the consolidated balance sheet. In 2017 we repaid $75 million, the entire amount due at maturity related to these repurchase agreements. Securities lending activity Under our securities lending program in the United States, the borrower is required to provide collateral, which can consist of cash or government securities, on a daily basis in amounts equal to or exceeding 102% of the value of the loaned securities. Currently, we only accept cash collateral from borrowers under the program. Cash collateral received by us on securities lending transactions is reflected in other invested assets with an offsetting liability recognized in other liabilities for the obligation to return the collateral. Any cash collateral received is reinvested by our custodian based upon the investment guidelines provided within our agreement. In the United States, the reinvested cash collateral is primarily invested in a money market fund approved by the NAIC, U.S. and foreign government securities, U.S. government agency securities, asset-backed securities and corporate debt securities. As of December 31, 2017 and 2016, the fair value of securities loaned under our securities lending program in the United States was $258 million and $517 million, respectively. As of December 31, 2017 and 2016, the fair value of collateral held under our securities lending program in the United States was $268 million and $534 million, respectively, and the offsetting obligation to return collateral of $268 million and $534 million, respectively, was included in other liabilities in the consolidated balance sheets. We did not have any non-cash collateral provided by the borrowers in our securities lending program in the United States as of December 31, 2017 and 2016. Under our securities lending program in Canada, the borrower is required to provide collateral consisting of government securities on a daily basis in amounts equal to or exceeding 105% of the fair value of the applicable securities loaned. Securities received from counterparties as collateral are not recorded on our consolidated balance sheet given that the risk and rewards of ownership is not transferred from the counterparties to us in the course of such transactions. Additionally, there was no cash collateral because it is not permitted as an acceptable form of collateral under the program. In Canada, the lending institution must be included on the approved Securities Lending Borrowers List with the Canadian regulator and the intermediary must be rated at least “AA-” by S&P. As of December 31, 2017 and 2016, the fair value of securities loaned under our securities lending program in Canada was $382 million and $350 million, respectively. Risks associated with repurchase agreements and securities lending programs Our repurchase agreement and securities lending programs expose us to liquidity risk if we did not have enough cash or collateral readily available to return to the counterparty when required to do so under the agreements. We manage this risk by regularly monitoring our available sources of cash and collateral to ensure we can meet short-term liquidity demands under normal and stressed scenarios. We are also exposed to credit risk in the event of default of our counterparties or changes in collateral values. This risk is significantly reduced because our programs require over collateralization and collateral exposures are trued up on a daily basis. We manage this risk by using multiple counterparties and ensuring that changes in required collateral are monitored and adjusted daily. We also monitor the creditworthiness, including credit ratings, of our counterparties on a regular basis. Contractual maturity The following tables present the remaining contractual maturity of the agreements as of December 31: 2017 (Amounts in millions) Overnight and continuous Up to 30 days 31 - 90 days Greater than Total Repurchase agreements: U.S. government, agencies and government-sponsored enterprises $ — $ — $ — $ — $ — Securities lending: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises 72 — — — 72 Non-U.S. government 50 — — — 50 U.S. corporate 85 — — — 85 Non-U.S. corporate 56 — — — 56 Subtotal, fixed maturity securities 263 — — — 263 Equity securities 5 — — — 5 Total securities lending 268 — — — 268 Total repurchase agreements and securities lending $ 268 $ — $ — $ — $ 268 2016 (Amounts in millions) Overnight and Up to 30 days 31 - 90 days Greater than 90 days Total Repurchase agreements: U.S. government, agencies and government-sponsored enterprises $ — $ — $ 16 $ 59 $ 75 Securities lending: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises 224 — — — 224 Non-U.S. government 34 — — — 34 U.S. corporate 159 — — — 159 Non-U.S. corporate 110 — — — 110 Subtotal, fixed maturity securities 527 — — — 527 Equity securities 7 — — — 7 Total securities lending 534 — — — 534 Total repurchase agreements and securities lending $ 534 $ — $ 16 $ 59 $ 609 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | (13) Income Taxes Income (loss) from continuing operations before income taxes included the following components for the years ended December 31: (Amounts in millions) 2017 2016 2015 Domestic $ 397 $ (283 ) $ (468 ) Foreign 332 603 453 Income (loss) from continuing operations before income taxes $ 729 $ 320 $ (15 ) The total provision (benefit) for income taxes was as follows for the years ended December 31: (Amounts in millions) 2017 2016 2015 Current federal income taxes $ (32 ) $ 55 $ 1 Deferred federal income taxes (274 ) 115 (199 ) Total federal income taxes (306 ) 170 (198 ) Current state income taxes 1 1 — Deferred state income taxes 6 2 4 Total state income taxes 7 3 4 Current foreign income taxes 192 183 186 Deferred foreign income taxes (100 ) 2 (1 ) Total foreign income taxes 92 185 185 Total provision (benefit) for income taxes $ (207 ) $ 358 $ (9 ) Our current income tax payable was $28 million and $36 million as of December 31, 2017 and 2016, respectively. The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the years ended December 31: (Amounts in millions) 2017 2016 2015 Pre-tax income (loss) $ 729 $ 320 $ (15 ) Statutory U.S. federal income tax rate $ 255 35.0 % $ 112 35.0 % $ (5 ) 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect 5 0.7 3 1.0 2 (18.0 ) Tax favored investments (3 ) (0.4 ) (4 ) (1.3 ) (14 ) 93.3 Effect of foreign operations — — (5 ) (1.6 ) (20 ) 129.2 Net impact of repatriating foreign earnings — — 9 2.8 — — Non-deductible expenses 2 0.3 1 0.3 (3 ) 22.0 Stock-based compensation 3 0.4 5 1.6 5 (31.7 ) Loss on sale of business — — (1 ) (0.3 ) — — Other, net 7 0.9 5 1.6 1 (6.8 ) Valuation allowance (258 ) (35.4 ) 233 72.8 25 (165.0 ) TCJA, impact from change in tax rate (154 ) (21.1 ) — — — — TCJA, impact on foreign operations (64 ) (8.8 ) — — — — Effective rate $ (207 ) (28.4 )% $ 358 111.9 % $ (9 ) 58.0 % For the year ended December 31, 2017, the decrease in the effective tax rate was primarily related to changes in U.S. tax legislation under the TCJA. We released $258 million of our valuation allowance principally from the TCJA and improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. In addition, under the TCJA, corporate tax rates decreased which reduced the tax rate applied to the overall U.S. jurisdiction deferred tax asset. The decrease from the TCJA related to foreign operations was principally driven by the release of shareholder liability taxes, partially offset by higher taxes associated with the transition tax. For the year ended December 31, 2016, the increase in the effective tax rate was primarily related to a $258 million valuation allowance recorded on deferred tax assets related to foreign tax credits that we did not expect to realize. The effective tax rate for the year ended December 31, 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 2016. The components of the net deferred income tax liability were as follows as of December 31: (Amounts in millions) 2017 2016 Assets: Foreign tax credit carryforwards $ 603 $ 690 Net operating loss carryforwards 499 906 State income taxes 347 329 Accrued commission and general expenses 127 208 Investments 27 — Insurance reserves 146 — Other 34 58 Gross deferred income tax assets 1,783 2,191 Valuation allowance (363 ) (601 ) Total deferred income tax assets 1,420 1,590 Liabilities: Investments — 2 Net unrealized gains on investment securities 325 644 Net unrealized gains on derivatives 28 18 Insurance reserves transition adjustment 134 — Insurance reserves — 58 DAC 396 748 PVFP and other intangibles 38 55 Investment in foreign subsidiaries — 48 Other 22 70 Total deferred income tax liabilities 943 1,643 Net deferred income tax asset (liability) $ 477 $ (53 ) The above valuation allowances of $363 million and $601 million as of December 31, 2017 and 2016, respectively, related to state deferred tax assets, foreign net operating losses and a specific federal separate tax return net operating loss deferred tax asset. The state deferred tax assets related primarily to the future deductions associated with the Section 338 elections and non-insurance net operating loss (“NOL”) carryforwards. As of December 31, 2016, the valuation allowance also included the impact of foreign tax credits that we did not expect to realize. The decrease in the valuation allowance in 2017 was primarily related to judgments regarding the future realization of certain foreign tax credits, for which a valuation allowance was established in 2016. In light of our latest financial projections, which include the impact of changes in U.S. tax law under the TCJA, we believe that it is more likely than not that the benefits of these foreign tax credits will be realized and have released this portion of the valuation allowance. The increase in the 2016 valuation allowance related primarily to judgments regarding the future realization of certain deferred tax assets. In light of our 2016 financial projections, including the projected impact to current and future earnings associated with higher expected claim costs in our long-term care insurance business as a result of our annual claim reserves review in the third quarter of 2016 and sustained low interest rates, we recorded a valuation allowance related to foreign tax credits that we did not expect to realize in 2016. We also recorded a reversal of a deferred tax valuation allowance, established in 2015, related to our mortgage insurance business in Europe. Based on our analysis, we believe it is more likely than not that the results of future operations and reversal of taxable temporary differences will generate sufficient taxable income to enable us to realize the deferred tax assets for which we have not established valuation allowances. U.S. federal NOL carryforwards amounted to $2.3 billion as of December 31, 2017, and, if unused, will expire beginning in 2021. Foreign tax credit carryforwards amounted to $603 million as of December 31, 2017, and, if unused will begin to expire in 2022. Although we had net income available to Genworth Financial, Inc.’s common stockholders of $817 million in 2017, we are currently in a three-year cumulative pre-tax loss position in our U.S. jurisdiction as of December 31, 2017. A cumulative loss position is considered significant negative evidence in assessing the realizability of our deferred tax assets. Our ability to realize our deferred tax assets of $477 million, which includes deferred tax assets of $1.1 billion related to NOL carryforwards and foreign tax credit carryforwards, is primarily dependent upon generating sufficient taxable income in future years. Management has concluded that there is sufficient positive evidence to overcome this negative evidence for the NOL carryforwards and the foreign tax credit carryforwards. This positive evidence includes the fact that: (i) our three-year cumulative pre-tax loss position includes significant charges that are not expected to recur in the future, including a loss on the sale of our lifestyle protection insurance business in 2015 and a loss recorded in 2015 related to the sale of our mortgage insurance business in Europe; (ii) our profitable U.S. operating forecasts which include in-force premium rate actions already obtained in our long-term care insurance business, favorable development in interest rates, improvements in business performance; driven mostly by our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses, and changes in U.S. tax legislation under the TCJA; which are expected to impact utilization of foreign tax credits, including the changes to policyholder reserves and capitalized policy acquisition expenses; (iii) an anticipated change in the timing of tax deductions for life insurance reserves on GLIC which is expected to generate significant increases to taxable income over the next five years; and (iv) overall domestic losses that we have incurred are now, under the TCJA, allowed to be reclassified as foreign source income to the extent of 100% of domestic source income produced in subsequent years, and such resulting foreign source income is sufficient to cover the foreign tax credits being carried forward. After consideration of all available evidence, we released $258 million of our valuation allowance previously recorded to offset our foreign tax credits and state them at net realizable value. If our actual results do not validate the current projections of pre-tax income, we may be required to record an additional valuation allowance that could have a material impact on our consolidated financial statements in future periods. As a consequence of our separation from GE and our joint election with GE to treat that separation as an asset sale under Section 338 of the Internal Revenue Code, we became entitled to additional tax deductions in post IPO periods. We are obligated, pursuant to our Tax Matters Agreement with GE, to make fixed payments to GE over the next six years on an after-tax basis and subject to a cumulative maximum of $640 million, which is 80% of the projected tax savings associated with the Section 338 deductions. We recorded net interest expense of $7 million, $10 million and $11 million for the years ended December 31, 2017, 2016 and 2015, respectively, reflecting accretion of our liability at the Tax Matters Agreement rate of 5.72%. As of December 31, 2017 and 2016, we have recorded the estimated present value of our remaining obligation to GE of $119 million and $173 million, respectively, as a liability in our consolidated balance sheets. Both our IPO-related deferred tax assets and our obligation to GE are estimates that are subject to change. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (Amounts in millions) 2017 2016 2015 Balance as of January 1 $ 34 $ 28 $ 49 Tax positions related to the current period: Gross additions 2 6 5 Gross reductions (1 ) — — Tax positions related to the prior years: Gross additions 13 — — Gross reductions (6 ) — (26 ) Balance as of December 31 $ 42 $ 34 $ 28 The total amount of unrecognized tax benefits was $42 million as of December 31, 2017, which if recognized would affect the effective rate on continuing operations by $30 million. These unrecognized tax benefits included the impact of foreign currency translation from our international operations. We believe it is reasonably possible that in 2018 due to the potential resolution of certain potential settlements and other administrative and statutory proceedings and limitations, up to approximately $25 million unrecognized tax benefits will be recognized. These tax benefits are mainly related to certain insurance and non-insurance deductions and other tax benefits in the U.S. and also in foreign jurisdictions. We recognize accrued interest and penalties related to unrecognized tax benefits as components of income tax expense. We recorded less than $1 million of benefits, in each respective year, related to interest and penalties for 2017, 2016 and 2015. Our companies have elected to file a single U.S. consolidated income tax return (the “life/non-life consolidated return”). All companies domesticated in the United States and our former Bermuda and Guernsey subsidiaries, which elected to be taxed as U.S. domestic companies, are included in the life/non-life consolidated return as allowed by the tax law and regulations. We have a tax sharing agreement in place and all intercompany balances related to this agreement are settled at least annually. With possible exceptions, we are no longer subject to U.S. federal tax examinations for years through 2012. Potential state and local examinations for those years are generally restricted to results that are based on closed U.S. federal examinations. Our Australia mortgage insurance businesses are generally no longer subject to examinations by the Australian Tax Office (“ATO”) for years prior to 2013. In November 2017, the ATO completed a risk review of Genworth Mortgage Insurance Australia Limited for the years 2013-2015. The outcome of their review was a low risk rating for those years. Our Canada mortgage insurance businesses generally are no longer subject to examination by Canadian Revenue Agency and provincial taxing authorities for years prior to 2013. There are no significant ongoing audits with respect to Canadian or Australian taxing authorities at this time. Due to the complexities involved in accounting for the recently enacted TCJA, the U.S. Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin (“SAB”) 118, which requires companies to include in its financial statements a reasonable estimate of the impact of the TCJA on earnings to the extent such reasonable estimate has been determined. For specific effects of the TCJA for which a reasonable estimate cannot be made, SAB 118 provides that no amount should be recorded as a provisional amount in current year earnings and companies should continue to apply the tax law in effect just before the enactment date of the TCJA on December 22, 2017. Accordingly, we recorded the following reasonable estimates of the tax impact under the TCJA in our 2017 earnings. These amounts are considered to be provisional as we continue to assess available tax methods and elections and refine our computations and estimates. Deferred tax assets and liabilities We remeasured certain deferred tax assets and liabilities based on the federal rate at which we expected to reverse in the future, which is generally 21%. However, the Internal Revenue Service has indicated that additional guidance will be forthcoming with respect to several technical areas within the TCJA, which could affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded in 2017 that related to the re-measurement of our deferred tax assets and liabilities was a tax benefit of $154 million. Foreign tax effects The one-time transition tax is based on total post-1986 earnings and profits (“E&P”) that were previously deferred from U.S. income taxes. We recorded our best estimate of the provisional amount for the one-time transition tax liability for all of our foreign subsidiaries resulting in an increase in income tax expense of $63 million in 2017. However, we have not yet completed our calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based, in part, on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of our post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. Insurance reserve transition adjustment We have recorded a provisional reclassification in deferred tax assets and liabilities in the amount of $134 million related to the transition adjustment required under the TCJA with respect to life insurance policyholder reserves. Under the TCJA this transition adjustment is to be taken into account ratably over eight taxable years. This provisional amount had no impact on income (loss), however, the reclassification amount may change as we continue to refine our insurance reserve calculations and apply the new reserving rules under the TCJA on a product level basis. Future changes similarly are not expected to have an impact on income from continuing operations. We have identified the following areas for which a reasonable estimate cannot be made. Foreign Tax Effects We have not completed our accounting for the income tax effects of the new Global Intangible Low Taxed Income (“GILTI”) and Base Erosion Anti-Abuse (“BEAT”) taxes. A policy election can be made to either account for taxes on GILTI as incurred or recognize deferred taxes when basis differences exist that are expected to affect the amount of GILTI inclusion upon reversal. Due to the complexity of these new tax rules, we are continuing to evaluate these provisions of the TCJA and whether such taxes are recorded as a current period expense when incurred or whether such amounts should be factored into a measurement of our deferred taxes. As a result, we have not included an estimate of the tax expense (benefit) related to these items for the year ended December 31, 2017, nor have we made a policy election with respect to accounting for the GILTI tax. State tax effects Certain areas of state income taxes, including treatment of the one-time transition tax, have not been analyzed and accordingly, no estimate of the impact of these provisions on state income taxes has been recorded for the year ended December 31, 2017. Further regulatory guidance related to the TCJA is expected to be issued in 2018 which may result in changes to our current estimates. Any revisions to the estimated impacts of the TCJA will be recorded quarterly until the computations are complete which is expected no later than the fourth quarter of 2018. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Information | (14) Supplemental Cash Flow Information Net cash paid for taxes was $151 million, $203 million and $153 million and cash paid for interest was $318 million, $381 million and $424 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation | (15) Stock-Based Compensation Prior to May 2012, we granted share-based awards to employees and directors, including stock options, SARs, RSUs and deferred stock units (“DSUs”) under the 2004 Genworth Financial, Inc. Omnibus Incentive Plan (the “2004 Omnibus Incentive Plan”). In May 2012, the 2012 Genworth Financial, Inc. Omnibus Incentive Plan (the “2012 Omnibus Incentive Plan”), together with the 2004 Omnibus Incentive Plan, the (“Omnibus Incentive Plans”) was approved by stockholders. Under the 2012 Omnibus Incentive Plan, we are authorized to grant 16 million equity awards, plus a number of additional shares not to exceed 25 million underlying awards outstanding under the prior Plan. From and after May 2012, no further awards have been or will be granted under the 2004 Omnibus Incentive Plan and the 2004 Omnibus Incentive Plan will remain in effect only as long as awards granted thereunder remain outstanding. We recorded stock-based compensation expense under the Omnibus Incentive Plans of $30 million, $23 million and $17 million, respectively, for the years ended December 31, 2017, 2016 and 2015. For awards issued prior to January 1, 2006, stock-based compensation expense was recognized on a graded vesting attribution method over the awards’ respective vesting schedule. For awards issued after January 1, 2006, stock-based compensation expense was recognized evenly on a straight-line attribution method over the awards’ respective vesting period. For purposes of determining the fair value of stock-based payment awards on the date of grant, we typically use the Black-Scholes Model. The Black-Scholes Model requires the input of certain assumptions that involve judgment. Management periodically evaluates the assumptions and methodologies used to calculate fair value of share-based compensation. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies. There were no SARs granted during 2017 and 2016. The following table contains the SAR valuation assumptions input into the Black-Scholes Model and the related weighted-average grant-date fair value information derived from the model for the year ended December 31, 2015: Awards granted (in thousands) 1,378 Maximum share value at exercise of SARs $ 75.00 Fair value per options and SARs $ 3.43 Valuation assumptions: Expected term (years) 6.0 Expected volatility 66.0 % Expected dividend yield — % Risk-free interest rate 1.9 % During 2015, we granted SARs with exercise prices ranging from $4.96 to $7.99. These SARs have a feature that places a cap on the amount of gain that can be recognized upon exercise of the SARs. Specifically, if the price of our Class A Common Stock reaches $75.00, any vested portion of the SAR will be automatically exercised. The SAR grant price equaled the closing market prices of our Class A Common Stock on the date of the grant and the awards have an exercise term of 10 years. The SARs granted in 2015 have an average vesting period of three years. Vesting occurs in annual increments commencing on the first anniversary of the grant date. Additionally, during 2017 and 2016, we issued RSUs with average restriction periods of three years, with a fair value of $4.01 and $2.04, respectively, which were measured at the market price of a share of our Class A Common Stock on the grant date. In 2017 and 2016, we granted performance stock units (“PSUs”) with a fair value of $4.01 and $2.81, respectively. The PSUs were granted at market price as of the grant date. PSUs may be earned over a three-year period based upon the achievement of certain performance goals. The PSUs granted in 2017 have three separate and distinct performance measurement periods, each starting on January 1 going through December 31 for the years ended December 31, 2017, 2018 and 2019. The performance metric is based on a range of consolidated annual adjusted operating income and if achieved for any given performance measurement period, the PSUs vest on March 15 of the subsequent year in approximately one-third increments. The PSUs will be payable following the last performance period but no later than December 2020. If the respective level has not been achieved by December 31 of each year, no payout will occur for that particular performance measurement period and all of the related expenses recorded for that performance measurement period will be reversed. The performance goals for the PSUs granted in 2016 are based upon four performance metrics, each payable independently. The four performance metrics are: the average annual adjusted operating income, adjusted operating return on equity for our mortgage insurance businesses for the years ended December 31, 2016, 2017 and 2018, expense management in our U.S. Life Insurance segment for the year ended 2018 and cumulative in-force rate actions in our long-term care insurance business for the three-year period ended December 31, 2018. Each performance metric is weighted independently and payable in equal amounts of 25%. The PSUs will be payable in Genworth Class A Common Stock in March 2019 provided we have attained or exceeded threshold levels related to the performance goals. If the respective levels have not been achieved by December 31, 2018, no payout will occur and all the related expenses recorded to date will be reversed. The performance goals for the PSUs granted in 2015 were based upon the average daily closing price of our Class A Common Stock during the fourth quarter of 2017 and the two point average of our book value per share, excluding accumulated other comprehensive income (loss), during the close of the third and fourth quarters of 2017. The PSUs would have been payable in Genworth Class A Common Stock in March 2018 provided we had attained or exceeded threshold levels related to the performance goals. Our book value per share is divided into the average daily closing price of our Class A Common Stock to calculate the book value multiplier, which determines the potential number of shares to be paid out. We did not achieve the respective threshold levels for the PSUs granted in 2015 by the December 31, 2017 deadline; therefore, all the related expenses recorded were reversed. The performance goals for the PSUs granted in 2014 were based upon the achievement of goals related to our 2016 annual operating return on equity and book value per share, excluding accumulated other comprehensive income (loss). We did not achieve the respective threshold levels for the PSUs granted in 2014 by the December 31, 2016 deadline; therefore, all the related expenses recorded were reversed. No stock options were granted in 2017, 2016 or 2015. In 2017 and 2016, we granted cash awards with a fair value of $1.00. We have time-based cash awards, which vest over two or three years, with half or a third, respectively, of the payout occurring per year as determined by the vesting period, beginning on the first anniversary of the grant date. We also have performance-based cash awards which vest over three years in one-third increments, beginning on the first anniversary of the grant date, with payout occurring after the third year. The following table summarizes cash award activity as of December 31, 2017 and 2016: Time-based cash awards Performance-based cash awards (Awards in millions) Number of awards Number of awards Balance as of January 1, 2016 9 — Granted 14 4 Vested (4 ) — Forfeited (3 ) — Balance as of January 1, 2017 16 4 Granted 13 4 Vested (9 ) — Forfeited (2 ) — Balance as of December 31, 2017 18 8 The following table summarizes stock option activity as of December 31, 2017 and 2016: (Shares in thousands) Shares subject to option Weighted-average exercise price Balance as of January 1, 2016 2,140 $ 12.34 Granted — $ — Exercised (46 ) $ 2.46 Expired and forfeited (280 ) $ 17.24 Balance as of January 1, 2017 1,814 $ 11.83 Granted — $ — Exercised (8 ) $ 2.46 Expired and forfeited (226 ) $ 15.32 Balance as of December 31, 2017 1,580 $ 11.38 Exercisable as of December 31, 2017 1,580 $ 11.38 The following table summarizes information about stock options outstanding as of December 31, 2017: Outstanding and Exercisable Exercise price range Shares in thousands Average life (1) Average exercise price $2.00 - $2.46 (2) 308 1.09 $ 2.43 $7.80 - $12.75 233 0.63 $ 8.07 $14.18 956 1.98 $ 14.18 $14.92 - $22.80 83 0.47 $ 21.62 1,580 $ 11.38 (1) Average contractual life remaining in years. (2) These shares have an aggregate intrinsic value of less than $1 million each for total options outstanding and exercisable. The following tables summarize the status of our other equity-based awards as of December 31, 2017 and 2016: RSUs PSUs DSUs SARs (Awards in thousands) Number of awards Weighted- average grant date fair value Number of awards Weighted- average fair value Number of awards Weighted- average fair value Number of awards Weighted- average grant date fair value Balance as of January 1, 2016 3,255 $ 9.22 710 $ 10.63 880 $ 8.18 12,148 $ 3.56 Granted 1,230 $ 2.04 2,730 $ 2.81 284 $ 2.14 — $ — Exercised (818 ) $ 10.13 — $ — — $ — — $ — Terminated (414 ) $ 9.70 (4 ) $ 15.23 — $ — (1,308 ) $ 3.72 Balance as of January 1, 2017 3,253 $ 6.19 3,436 $ 4.41 1,164 $ 6.72 10,840 $ 3.54 Granted 1,414 $ 4.01 1,414 $ 4.01 295 $ 2.67 — $ — Exercised (918 ) $ 6.65 — $ — (200 ) $ 7.25 — $ — Terminated (98 ) $ 8.61 (266 ) $ 15.33 — $ — (539 ) $ 5.21 Balance as of December 31, 2017 3,651 $ 5.14 4,584 $ 3.65 1,259 $ 5.70 10,301 $ 3.45 As of December 31, 2017 and 2016, total unrecognized stock-based compensation expense related to non-vested awards not yet recognized was $13 million and $19 million, respectively. This expense is expected to be recognized over a weighted-average period of approximately one year. In 2017 and 2016, there was less than $1 million in cash received from stock options exercised in each year. New shares were issued to settle all exercised awards. The actual tax benefit realized for the tax deductions from the exercise of share-based awards was $2 million and $1 million as of December 31, 2017 and 2016, respectively. Genworth Canada, our indirect subsidiary and a public company, grants stock options and other equity-based awards to its Canadian employees. The following table summarizes the status of Genworth Canada’s stock option activity and other equity-based awards as of December 31, 2017 and 2016: Stock options RSUs and PSUs DSUs Executive deferred stock units (“EDSUs”) (Shares and awards in thousands) Shares subject to option Number of awards Number of awards Number of awards Balance as of January 1, 2016 955 194 54 31 Granted 95 126 12 14 Exercised (65 ) (77 ) (2 ) — Terminated (28 ) (8 ) — — Balance as of January 1, 2017 957 235 64 45 Granted 70 97 10 2 Exercised (192 ) (92 ) — — Terminated (10 ) (21 ) — — Balance as of December 31, 2017 825 219 74 47 As of December 31, 2017 and 2016, the DSUs were fully vested and the stock options, RSUs, PSUs and EDSUs were partially vested. The EDSUs were introduced in 2013 as part of a share-based compensation plan intended for executive level employees entitling them to receive an amount equal to the fair value of Genworth Canada stock. For the years ended December 31, 2017, 2016 and 2015, we recorded stock-based compensation expense of $11 million, $8 million and $(3) million, respectively. For the years ended December 31, 2017, 2016 and 2015, we estimated total unrecognized expense of $4 million, $3 million and $2 million, respectively, related to these awards. In connection with the IPO of Genworth Mortgage Insurance Australia Limited (“Genworth Australia”) in May 2014, our indirect subsidiary, Genworth Australia, granted stock options and other equity-based awards to its Australian employees. The following table summarizes the status of Genworth Australia’s restricted share rights and long-term incentive plan as of December 31, 2017 and 2016: Restricted share rights Long-term Incentive Plan (Shares in thousands) Shares subject to option Shares subject to option Balance as of January 1, 2016 2,774 526 Granted 280 742 Exercised (894 ) — Terminated (884 ) (348 ) Balance as of January 1, 2017 1,276 920 Granted 382 721 Exercised (633 ) — Terminated (157 ) (154 ) Balance as of December 31, 2017 868 1,487 As of December 31, 2017 and 2016, none of the restricted share rights balances were vested. For the years ended December 31, 2017, 2016 and 2015, we recorded stock-based compensation expense of $1 million, $1 million and $2 million, respectively, and we estimated total unrecognized expense of less than $1 million, $1 million and $4 million, respectively, related to these awards. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value of Financial Instruments | (16) Fair Value of Financial Instruments Assets and liabilities that are reflected in the accompanying 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 funding obligations. Borrowings related to securitization entities. Investment contracts. The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated: 2017 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,341 $ 6,573 $ — $ — $ 6,573 Restricted commercial mortgage loans (2) (1) 107 116 — — 116 Other invested assets (1) 277 299 — — 299 Liabilities: Long-term borrowings (3) (1) 4,224 3,725 — 3,566 159 Non-recourse funding obligations (3) (1) 310 201 — — 201 Borrowings related to securitization entities (2) (1) 40 41 — 41 — Investment contracts (1) 14,700 15,123 — 5 15,118 Other firm commitments: Commitments to fund limited partnerships 317 — — — — — Commitments to fund bank loan investments 18 — — — — — Ordinary course of business lending commitments 168 — — — — — 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 (2) (1) 129 141 — — 141 Other invested assets (1) 459 473 — 352 121 Liabilities: Long-term borrowings (3) (1) 4,180 3,582 — 3,440 142 Non-recourse funding obligations (3) (1) 310 186 — — 186 Borrowings related to securitization entities (2) (1) 62 65 — 65 — Investment contracts (1) 16,437 16,993 — 5 16,988 Other firm commitments: Commitments to fund limited partnerships 201 — — — — — Ordinary course of business lending commitments 73 — — — — — (1) These financial instruments do not have notional amounts. (2) See note 17 for additional information related to consolidated securitization entities. (3) See note 12 for additional information related to borrowings. 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 thresholds each month to further aid in our review of the accuracy of fair value measurements and our understanding of changes in fair value, with more detailed reviews performed by the asset managers responsible for the related asset class associated with the security being reviewed. A pricing committee provides additional oversight and guidance in the evaluation and review of the pricing methodologies used to value our investment portfolio. In general, we first obtain valuations from pricing services. 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. If prices are unavailable from public pricing services we obtain broker quotes. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quotes valuation is available, we determine fair value using internal models. For pricing services, we obtain an understanding of the pricing methodologies and procedures for each type of instrument. Additionally, on a monthly basis we review a sample of securities, examining the pricing service’s assumptions to determine if we agree with the service’s derived price. When available, we also evaluate the prices sampled as compared to other public prices. If a variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. In general, a pricing service does not provide a price for a security if sufficient information is not readily available to determine fair value or if such security is not in the specific sector or class covered by a particular pricing service. Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs, which would result in the valuation being classified as Level 3. For private fixed maturity securities, we utilize an income approach where we obtain public bond spreads and utilize those in an internal model to determine fair value. Other inputs to the model include rating and weighted-average life, as well as sector which is used to assign the spread. We then add an additional premium, which represents an unobservable input, to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We utilize price caps for securities where the estimated market yield results in a valuation that may exceed the amount that would be received in a market transaction and value all private fixed maturity securities at par that have less than 12 months to maturity. When a security does not have an external rating, we assign the security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. To evaluate the reasonableness of the internal model, we review a sample of private fixed maturity securities each month. In that review we compare the modeled prices to the prices of similar public securities in conjunction with analysis on current market indicators. If a pricing variance greater than a pre-defined threshold is noted, additional review of the price is executed to ensure accuracy. At the end of each month, all internally modeled prices are compared to the prior month prices with an evaluation of all securities with a month-over-month change greater than a pre-defined threshold. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds, any price caps utilized, liquidity premiums applied, and whether external ratings are available for our private placements to determine whether the spreads utilized would be considered observable inputs. We classify private securities without an external rating and public bond spread as Level 3. In general, increases (decreases) in credit spreads will decrease (increase) the fair value for our fixed maturity securities. For broker quotes, we consider the valuation methodology utilized by the third party and analyze a sample each month to assess reasonableness given then-current market conditions. Additionally, for broker quotes on certain structured securities, we validate prices received against other publicly available pricing sources. Broker quotes are typically based on an income approach given the lack of available market data. As the valuation typically includes significant unobservable inputs, we classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements. For remaining securities priced using internal models, we determine fair value using an income approach. We analyze a sample each month to assess reasonableness given then-current market conditions. We maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3. A summary of the inputs used for our fixed maturity, short-term investments, equity and trading securities based on the level in which instruments are classified is included below. We have combined certain classes of instruments together as the nature of the inputs is similar. Level 1 measurements Equity securities. Short-term investments. Separate account assets. 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 December 31, 2017: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $5,547 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 $2,877 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. government $2,217 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources U.S. corporate $25,414 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. corporate $10,665 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources Residential mortgage-backed $3,980 OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Commercial mortgage-backed $3,416 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 $2,831 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: Equity securities. Securities lending collateral The fair value of securities held as collateral is primarily based on Level 2 inputs from market information for the collateral that is held on our behalf by the custodian. We determine fair value after considering prices obtained by third-party pricing services. Short-term investments The fair value of short-term investments classified as Level 2 is determined after considering prices obtained by third-party pricing services. Level 3 measurements Fixed maturity securities • Internal models: • Broker quotes: Equity securities. Restricted other invested assets related to securitization entities We 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 risk is integrated into the discount rate. Our discount rate used to determine fair value of our GMWB liabilities includes market credit spreads above U.S. Treasury rates to reflect an adjustment for the non-performance risk of the GMWB liabilities. As of December 31, 2017 and 2016, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $63 million and $73 million, respectively. To determine the appropriate discount rate to reflect the non-performance risk of the GMWB liabilities, we evaluate the non-performance risk in our liabilities based on a hypothetical exit market transaction as there is no exit market for these types of liabilities. A hypothetical exit market can be viewed as a hypothetical transfer of the liability to another similarly rated insurance company which would closely resemble a reinsurance transaction. Another hypothetical exit market transaction can be viewed as a hypothetical transaction from the perspective of the GMWB policyholder. In determining the appropriate discount rate to incorporate non-performance risk of the GMWB liabilities, we also considered the impacts of state guarantees embedded in the related insurance product as a form of inseparable third-party guarantee. We believe that a hypothetical exit market participant would use a similar discount rate as described above to value the liabilities. For equity index volatility, we determine the projected equity market volatility using both historical volatility and projected equity market volatility with more significance being placed on projected near-term volatility and recent historical data. Given the different attributes and market characteristics of GMWB liabilities compared to equity index options in the derivative market, the equity index volatility assumption for GMWB liabilities may be different from the volatility assumption for equity index options, especially for the longer dated points on the curve. Equity index and fund correlations are determined based on historical price observations for the fund and equity index. For policyholder assumptions, we use our expected lapse, mortality and utilization assumptions and update these assumptions for our actual experience, as necessary. For our lapse assumption, we adjust our base lapse assumption by policy based on a combination of the policyholder’s current account value and GMWB benefit. We classify the GMWB valuation as Level 3 based on having significant unobservable inputs, with equity index volatility and non-performance risk being considered the more significant unobservable inputs. As equity index volatility increases, the fair value of the GMWB liabilities will increase. Any increase in non-performance risk would increase the discount rate and would decrease the fair value of the GMWB liability. Additionally, we consider lapse and utilization assumptions to be significant unobservable inputs. An increase in our lapse assumption would decrease the fair value of the GMWB liability, whereas an increase in our utilization rate would increase the fair value. Fixed index annuity embedded derivatives We have fixed indexed annuity products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. As a result of our assumptions for policyholder behavior and expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As lapses and withdrawals increase, the value of our embedded derivative liability will decrease. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. Indexed universal life embedded derivatives We have indexed universal life products where interest is credited to the policyholder’s account balance based on equity index changes. This feature is required to be bifurcated as an embedded derivative and recorded at fair value. Fair value is determined using an income approach where the present value of the excess cash flows above the guaranteed cash flows is used to determine the value attributed to the equity index feature. The inputs used in determining the fair value include policyholder behavior (lapses and withdrawals), near-term equity index volatility, expected future interest credited, forward interest rates and an adjustment to the discount rate to incorporate non-performance risk and risk margins. As a result of our assumptions for policyholder behavior and expected future interest credited being considered significant unobservable inputs, we classify these instruments as Level 3. As lapses and withdrawals increase, the value of our embedded derivative liability will decrease. As expected future interest credited decreases, the value of our embedded derivative liability will decrease. Borrowings related to securitization entities We record certain borrowings related to securitization entities at fair value. The fair value of these borrowings is determined using either a market approach or income approach, depending on the instrument and availability of market information. Given the unique characteristics of the securitization entities that issued these borrowings as well as the lack of comparable instruments, we determine fair value considering the valuation of the underlying assets held by the securitization entities and any derivatives, as well as any unique characteristics of the borrowings that may impact the valuation. After considering all relevant inputs, we determine fair value of the borrowings using the net valuation of the underlying assets and derivatives that are backing the borrowings. Accordingly, these instruments are classified as Level 3. Increases in the valuation of the underlying assets or decreases in the derivative liabilities will result in an increase in the fair value of these borrowings. Derivatives We consider counterparty collateral arrangements and rights of set-off when evaluating our net credit risk exposure to our derivative counterparties. Accordingly, we are permitted to include consideration of these arrangements when determining whether any incremental adjustment should be made for both the counterparty’s and our non-performance risk in measuring fair value for our derivative instruments. As a result of these counterparty arrangements, we determined that any adjustment for credit risk would not be material and we have not recorded any incremental adjustment for our non-performance risk or the non-performance risk of the derivative counterparty for our derivative assets or liabilities. We determine fair value for our derivatives using an income approach with internal models based on relevant market inputs for each derivative instrument. We also compare the fair value determined using our internal model to the valuations provided by our derivative counterparties with any significant differences or changes in valuation being evaluated further by our derivatives professionals that are familiar with the instrument and market inputs used in the valuation. Interest rate swaps. Interest rate swaps related to securitization entities. Inflation indexed swaps. Foreign currency swaps. Credit default swaps. Credit default swaps related to securitization entities. Equity index options. Financial futures. Equity return swaps. Forward bond purchase commitments. Other foreign currency contracts. The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,548 $ — $ 5,547 $ 1 State and political subdivisions 2,926 — 2,889 37 Non-U.S. government 2,233 — 2,233 — U.S. corporate: Utilities 4,998 — 4,424 574 Energy 2,458 — 2,311 147 Finance and insurance 6,528 — 5,902 626 Consumer—non-cyclical 4,831 — 4,750 81 Technology and communications 2,845 — 2,772 73 Industrial 1,346 — 1,307 39 Capital goods 2,355 — 2,234 121 Consumer—cyclical 1,605 — 1,343 262 Transportation 1,291 — 1,231 60 Other 379 — 210 169 Total U.S. corporate 28,636 — 26,484 2,152 Non-U.S. corporate: Utilities 1,017 — 674 343 Energy 1,490 — 1,314 176 Finance and insurance 2,735 — 2,574 161 Consumer—non-cyclical 712 — 588 124 Technology and communications 982 — 953 29 Industrial 1,044 — 928 116 Capital goods 645 — 454 191 Consumer—cyclical 540 — 486 54 Transportation 721 — 551 170 Other 2,725 — 2,673 52 Total non-U.S. corporate 12,611 — 11,195 1,416 Residential mortgage-backed 4,057 — 3,980 77 Commercial mortgage-backed 3,446 — 3,416 30 Other asset-backed 3,068 — 2,831 237 Total fixed maturity securities 62,525 — 58,575 3,950 Equity securities 820 696 80 44 Other invested assets: Derivative assets: Interest rate swaps 74 — 74 — Foreign currency swaps 12 — 12 — Equity index options 80 — — 80 Other foreign currency contracts 110 — 110 — Total derivative assets 276 — 196 80 Securities lending collateral 268 — 268 — Short-term investments 902 107 795 — Total other invested assets 1,446 107 1,259 80 Reinsurance recoverable (1) 14 — — 14 Separate account assets 7,230 7,230 — — Total assets $ 72,035 $ 8,033 $ 59,914 $ 4,088 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. 2016 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 6,036 $ — $ 6,034 $ 2 State and political subdivisions 2,647 — 2,610 37 Non-U.S. government 2,107 — 2,107 — U.S. corporate: Utilities 4,550 — 3,974 576 Energy 2,300 — 2,090 210 Finance and insurance 6,097 — 5,311 786 Consumer—non-cyclical 4,734 — 4,613 121 Technology and communications 2,598 — 2,544 54 Industrial 1,223 — 1,175 48 Capital goods 2,258 — 2,106 152 Consumer—cyclical 1,530 — 1,272 258 Transportation 1,190 — 1,051 139 Other 348 — 205 143 Total U.S. corporate 26,828 — 24,341 2,487 Non-U.S. corporate: Utilities 969 — 583 386 Energy 1,331 — 1,125 206 Finance and insurance 2,538 — 2,356 182 Consumer—non-cyclical 714 — 575 139 Technology and communications 987 — 920 67 Industrial 958 — 849 109 Capital goods 535 — 366 169 Consumer—cyclical 442 — 373 69 Transportation 677 — 496 181 Other 3,144 — 3,119 25 Total non-U.S. corporate 12,295 — 10,762 1,533 Residential mortgage-backed 4,379 — 4,336 43 Commercial mortgage-backed 3,129 — 3,075 54 Other asset-backed 3,151 — 3,006 145 Total fixed maturity securities 60,572 — 56,271 4,301 Equity securities 632 551 34 47 Other invested assets: Trading securities 259 — 259 — Derivative assets: Interest rate swaps 596 — 596 — Foreign currency swaps 4 — 4 — Equity index options 72 — — 72 Equity return swaps 1 — 1 — Other foreign currency contracts 35 — 32 3 Total derivative assets 708 — 633 75 Securities lending collateral 534 — 534 — Total other invested assets 1,501 — 1,426 75 Restricted other invested assets related to securitization entities (1) 312 — 181 131 Reinsurance recoverable (2) 16 — — 16 Separate account assets 7,299 7,299 — — Total assets $ 70,332 $ 7,850 $ 57,912 $ 4,570 (1) See note 17 for additional information related to consolidated securitization entities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the types of assets classified as Level 1, which primarily represents mutual fund investments, we typically do not have any transfers between Level 1 and Level 2 measurement categories and did not have any such transfers during any period presented. Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing and/or rating, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from third-party pricing sources to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3. The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning 2017 Total realized and Transfer Level 3 (1) Transfer Level 3 (1) Ending 2017 Total gains still held (Amounts in millions) Included Included in OCI Purchases Sales Issuances Settlements Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 2 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 1 $ — State and political subdivisions 37 3 (3 ) — — — — — — 37 3 U.S. corporate: Utilities 576 — 24 76 — — (11 ) 30 (121 ) 574 — Energy 210 — 5 10 (31 ) — (32 ) 1 (16 ) 147 (1 ) Finance and insurance 786 20 5 79 (31 ) — (206 ) 8 (35 ) 626 11 Consumer—non-cyclical 121 — 2 4 — — (8 ) — (38 ) 81 — Technology and communications 54 3 7 31 — — (1 ) — (21 ) 73 3 Industrial 48 1 (1 ) 13 — — (8 ) — (14 ) 39 — Capital goods 152 1 3 7 — — (5 ) — (37 ) 121 1 Consumer—cyclical 258 — 9 12 — — (15 ) — (2 ) 262 — Transportation 139 16 (5 ) — — — (48 ) — (42 |
Variable Interest and Securitiz
Variable Interest and Securitization Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest and Securitization Entities | (17) Variable Interest and Securitization Entities VIEs are generally entities that have either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. We evaluate VIEs to determine whether we are the primary beneficiary and are required to consolidate the assets and liabilities of the entity. The determination of the primary beneficiary for a VIE can be complex and requires management judgment regarding the expected results of the entity and who directs the activities of the entity that most significantly impact the economic results of the VIE. (a) Asset Securitizations We have used former affiliates and third-party entities to facilitate asset securitizations. Disclosure requirements related to off-balance sheet arrangements encompass a broader array of arrangements than those at risk for consolidation. These arrangements include transactions with term securitization entities, as well as transactions with conduits that are sponsored by third parties. As of December 31, 2017 and 2016, we had $107 million and $129 million of total securitized assets required to be consolidated, respectively. We do not have any additional exposure or guarantees associated with these securitization entities. There has been no new asset securitization activity in 2017 or 2016. (b) Securitization and Variable Interest Entities Required To Be Consolidated For VIEs related to asset securitization transactions, as of December 31, 2017, we consolidate a securitization entity as a result of our involvement in the entity’s design or having certain decision making ability regarding the assets held by the securitization entity. This securitization entity was designed to have significant limitations on the types of assets owned and the types and extent of permitted activities and decision making rights. The securitization entity that is consolidated comprised an entity backed by commercial mortgage loans. Our primary economic interest in this securitization entity represents the excess interest of the commercial mortgage loans and the subordinated notes of the securitization entity. For VIEs related to certain investments, we previously consolidated three securitization entities as a result of having certain decision making rights related to instruments held by the entities. Upon consolidation, we elected the fair value option for the assets and liabilities for the securitization entity. During 2017, these three securitization entities were dissolved and the investments were repositioned, mostly into short-term investments in connection with the maturity of the associated liabilities. We previously consolidated a securitization entity backed by residual interests in certain policy loan securitization entities. Our primary economic interest in the policy loan securitization entity represented the excess interest received from the residual interest in certain policy loan securitization entities and the floating rate obligation issued by the securitization entity, where our economic interest was not expected to be material in any future years. Upon consolidation, we elected the fair value option for the assets and liabilities for the securitization entity. In June 2016, we amended and exercised a clean-up call on this securitization entity writing off our residual interest and settling the outstanding debt of $70 million. As a result of this transaction, we recorded $64 million of realized investment losses related to the write-off of our residual interest in those entities and a $64 million gain related to the early extinguishment of debt which was included in other income. There was no impact to net loss. In addition, the policy loan securitization entities in which we previously held a residual interest were not required to be consolidated in our balance sheets. The following table shows the assets and liabilities that were recorded for the consolidated securitization entities as of December 31: (Amounts in millions) 2017 2016 Assets Investments: Restricted commercial mortgage loans $ 107 $ 129 Restricted other invested assets: Trading securities — 312 Total restricted other invested assets — 312 Total investments 107 441 Cash and cash equivalents 1 1 Accrued investment income — 1 Other assets — 1 Total assets $ 108 $ 444 Liabilities Other liabilities: Derivative liabilities $ — $ 1 Total other liabilities — 1 Borrowings related to securitization entities 40 74 Total liabilities $ 40 $ 75 The assets and other instruments held by the securitization entity are restricted and can only be used to fulfill the obligations of the securitization entity. Additionally, the obligations of the securitization entity do not have any recourse to the general credit of any other consolidated subsidiaries. The following table shows the activity presented in our consolidated statement of income related to the consolidated securitization entities for the years ended December 31: (Amounts in millions) 2017 2016 2015 Revenues: Net investment income: Restricted commercial mortgage loans $ 9 $ 10 $ 14 Restricted other invested assets 1 3 5 Total net investment income 10 13 19 Net investment gains (losses): Derivatives 7 8 3 Trading securities — (57 ) (2 ) Borrowings related to securitization entities recorded at fair value — (1 ) 4 Total net investment gains (losses) 7 (50 ) 5 Other income — 64 — Total revenues 17 27 24 Expenses: Interest expense 6 7 9 Total expenses 6 7 9 Income before income taxes 11 20 15 Provision (benefit) for income taxes (6 ) 7 5 Net income $ 17 $ 13 $ 10 (c) Borrowings Related To Consolidated Securitization Entities Borrowings related to securitization entities were as follows as of December 31: 2017 2016 (Amounts in millions) Principal Carrying Principal Carrying GFCM LLC, due 2035, 5.7426% $ 40 $ 40 $ 62 $ 62 Marvel Finance 2007-4 LLC, due 2017 (1), (2) — — 12 12 Total $ 40 $ 40 $ 74 $ 74 (1) Accrual of interest based on three-month LIBOR that resets every three months plus a fixed margin. (2) Carrying value represents fair value as a result of electing fair value option for these liabilities. These borrowings are required to be paid down as principal is collected on the restricted investments held by the securitization entities and accordingly the repayment of these borrowings follows the maturity or prepayment, as permitted, of the restricted investments. |
Insurance Subsidiary Financial
Insurance Subsidiary Financial Information and Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Subsidiary Financial Information and Regulatory Matters | (18) Insurance Subsidiary Financial Information and Regulatory Matters Dividends 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 or contractholders, not stockholders. Any dividends in excess of limits are deemed “extraordinary” and require approval. Based on estimated statutory results as of December 31, 2017, in accordance with applicable dividend restrictions, our subsidiaries could pay dividends of approximately $500 million to us in 2018 without obtaining regulatory approval, and the remaining net assets are considered restricted. While the $500 million is unrestricted, our insurance subsidiaries may not pay dividends to us in 2018 at this level if they need to retain capital for growth and to meet capital requirements and desired thresholds. As of December 31, 2017, Genworth Financial’s and Genworth Holdings’ subsidiaries had restricted net assets of $13.1 billion and $12.4 billion, respectively. There are no regulatory restrictions on the ability of Genworth Financial to pay dividends. Our Board of Directors has suspended the payment of dividends on our common stock indefinitely. The declaration and payment of future dividends to holders of our common stock will be at the discretion of our Board of Directors and will be dependent on many factors including the receipt of dividends from our operating subsidiaries, our financial condition and operating results, the capital requirements of our subsidiaries, legal requirements, regulatory constraints, our credit and financial strength ratings and such other factors as the Board of Directors deems relevant. Our domestic insurance subsidiaries paid dividends to our principal life insurance subsidiaries of $36 million (none of which were deemed “extraordinary”), $80 million (none of which were deemed “extraordinary”) and $41 million (none of which were deemed “extraordinary”) during 2017, 2016 and 2015, respectively. Our international insurance subsidiaries paid dividends of $301 million, $457 million and $640 million during 2017, 2016 and 2015, respectively. U.S. domiciled insurance subsidiaries—statutory financial information Our U.S. domiciled insurance subsidiaries file financial statements with state insurance regulatory authorities and the NAIC that are prepared on an accounting basis either prescribed or permitted by such authorities. Statutory accounting practices differ from U.S. GAAP in several respects, causing differences in reported net income (loss) and stockholders’ equity. Permitted statutory accounting practices encompass all accounting practices not so prescribed but that have been specifically allowed by individual state insurance authorities. Our U.S. domiciled insurance subsidiaries have no material permitted accounting practices, except for River Lake Insurance Company VI (“River Lake VI”), River Lake Insurance Company VII (“River Lake VII”), River Lake Insurance Company VIII (“River Lake VIII”), River Lake Insurance Company IX (“River Lake IX”), River Lake Insurance Company X (“River Lake X”), together with River Lake VI, River Lake VII, River Lake VIII, River Lake IX and River Lake X, the “SPFCs”) and GLICNY. The permitted practices of the SPFCs were an essential element of their design and were expressly included in their plans of operation and in the licensing orders issued by their domiciliary state regulators and without those permitted practices, these entities could be subject to regulatory action. Accordingly, we believe that the permitted practices will remain in effect for so long as we maintain the SPFCs. The permitted practices were as follows: • River Lake IX and River Lake X were granted a permitted accounting practice from the State of Vermont to carry their excess of loss reinsurance agreements with The Canada Life Assurance Company and Hannover Life Reassurance Company Of America, respectively, as an admitted asset. • River Lake VII and River Lake VIII were granted a permitted accounting practice from the State of Vermont to carry their reserves on a basis similar to U.S. GAAP. • River Lake VI was granted a permitted accounting practice from the State of Delaware to carry its excess of loss reinsurance agreement with The Canada Life Assurance Company as an admitted asset. In 2016, GLICNY received a permitted practice from New York to exempt certain of its investments from a NAIC structured security valuation and ratings process. The impact of these permitted practices on our combined U.S. domiciled life insurance subsidiaries’ statutory capital and surplus was zero and $7 million as of December 31, 2017 and 2016, respectively. If permitted practices had not been used, no regulatory event would have been triggered. In February 2016, as part of restructuring our U.S. life insurance businesses, we announced an initiative to repatriate existing reinsured business from BLAIC, our primary Bermuda domiciled captive reinsurance subsidiary, to our U.S. life insurance subsidiaries in 2016. On October 1, 2016, the repatriation was completed through the merger of BLAIC with and into GLIC, our Delaware domiciled life insurance company, with GLIC being the surviving company. The tables below include the combined statutory net income (loss) and statutory capital and surplus for our U.S. domiciled insurance subsidiaries for the periods indicated: Years ended December 31, (Amounts in millions) 2017 2016 2015 Combined statutory net income (loss): Life insurance subsidiaries, excluding captive life reinsurance subsidiaries (1) $ (272 ) $ (365 ) $ (583 ) Mortgage insurance subsidiaries 512 448 287 Combined statutory net income (loss), excluding captive reinsurance subsidiaries 240 83 (296 ) Captive life insurance subsidiaries (36 ) (403 ) (276 ) Combined statutory net income (loss) $ 204 $ (320 ) $ (572 ) (1) The combined statutory net loss for the year ended December 31, 2015 was re-presented as if the merger of BLAIC with and into GLIC discussed above occurred on January 1, 2015 in accordance with the statutory merger method. As of December 31, (Amounts in millions) 2017 2016 Combined statutory capital and surplus: Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ 2,776 $ 3,100 Mortgage insurance subsidiaries 2,772 2,201 Combined statutory capital and surplus $ 5,548 $ 5,301 The statutory net income (loss) from our captive life reinsurance subsidiaries relates to the reinsurance of term and universal life insurance statutory reserves assumed from our U.S. domiciled life insurance companies. These reserves are, in turn, funded through the issuance of surplus notes (non-recourse funding obligations) to third parties or secured by excess of loss reinsurance treaties with third parties. Accordingly, the life insurance subsidiaries’ combined statutory net income (loss) and distributable income (loss) are not affected by the statutory net income (loss) of the captives, except to the extent dividends are received from the captives. The combined statutory capital and surplus of our life insurance subsidiaries does not include the capital and surplus of our captive life reinsurance subsidiaries of $245 million and $274 million as of December 31, 2017 and 2016, respectively. Capital and surplus of our captive life reinsurance subsidiaries included surplus notes (non-recourse funding obligations) of Rivermont I as of December 31, 2017 and 2016, as further described in note 12. The NAIC has adopted RBC requirements to evaluate the adequacy of statutory capital and surplus in relation to risks associated with: (i) asset risk; (ii) insurance risk; (iii) interest rate and equity market risk; and (iv) business risk. The RBC formula is designated as an early warning tool for the states to identify possible undercapitalized companies for the purpose of initiating regulatory action. In the course of operations, we periodically monitor the RBC level of each of our life insurance subsidiaries. As of December 31, 2017 and 2016, each of our life insurance subsidiaries exceeded the minimum required RBC levels. The consolidated RBC ratio of our U.S. domiciled life insurance subsidiaries was approximately 286% and 329% as of December 31, 2017 and 2016, respectively. As of December 31, 2017 and 2016, we established $284 million and $76 million, respectively, of additional statutory reserves resulting from updates to our universal and term universal life insurance products with secondary guarantees in our Virginia and Delaware licensed life insurance subsidiaries. In addition, our Virginia licensed life insurance subsidiary currently expects to record approximately $95 million of additional statutory reserves in 2018. GLICNY, our New York insurance subsidiary, did not record any additional statutory reserves in the fourth quarter of 2016 as a result of its year end 2016 asset adequacy analysis. However, in the second quarter of 2017, the New York State Department of Financial Services (“NYDFS”) required GLICNY to record an additional $58 million of statutory reserves related to the 2016 asset adequacy analysis. As of December 31, 2016, GLICNY had expected to record approximately $110 million of additional statutory reserves over the following two years due to year end 2016 asset adequacy analysis results. However, as a result of its year end 2017 assets adequacy analysis, GLICNY recorded an additional $188 million of statutory reserves in the fourth quarter of 2017. While current actuarial assumptions may change in response to future experience, GLICNY currently expects to record approximately $302 million of additional statutory reserves over the next two years. Among the current actuarial assumptions that may change is the amount of additional cash flow that may be recognized for asset adequacy analysis purposes attributable to certain pending rate increase requests filed with the NYDFS for its long-term care insurance business. The NYDFS currently does not allow rate increases for long-term care insurance business to be used in asset adequacy analysis until such increases have been approved and implemented. For regulatory purposes, our U.S. mortgage insurers are required to establish a special statutory contingency reserve. Annual additions to the statutory contingency reserve must equal 50% of net earned premiums, as defined by state insurance laws. These contingency reserves generally are held until the earlier of (i) the time that loss ratios exceed 35% or (ii) 10 years. However, approval by the North Carolina Department of Insurance (“NCDOI”) is required for contingency reserve releases when loss ratios exceed 35%. The statutory contingency reserve for our U.S. mortgage insurers was approximately $1,206 million and $845 million, respectively, as of December 31, 2017 and 2016 and was included in the table above containing combined statutory capital and surplus balances. Mortgage insurers are not subject to the NAIC’s RBC requirements but certain states and other regulators impose another form of capital requirement on mortgage insurers requiring maintenance of a risk-to-capital ratio not to exceed 25:1. Fifteen other states maintain similar risk-to-capital requirements. As of December 31, 2017, Genworth Mortgage Insurance Corporation’s (“GMICO”) risk-to-capital ratio under the current regulatory framework as established under North Carolina law and enforced by the NCDOI, GMICO’s domestic insurance regulator, was approximately 12.9:1, compared with a risk-to-capital ratio of approximately 14.5:1 as of December 31, 2016. Effective December 31, 2015, each government-sponsored enterprise (“GSE”) adopted revised private mortgage insurer eligibility requirements (“PMIERs”), which set forth operational and financial requirements that mortgage insurers must meet in order to remain eligible. Each approved mortgage insurer is required to provide the GSEs with an annual certification and a quarterly report as to its compliance with PMIERs. We have met all PMIERs reporting requirements as required by the GSEs. As of December 31, 2017 and 2016, we estimate our U.S. mortgage insurance business had available assets of approximately 121% and 115%, respectively, of the required assets under PMIERs. As of December 31, 2017 and 2016, the PMIERs sufficiency ratios were in excess of approximately $550 million, and $350 million, respectively, of available assets above the PMIERs requirements. The reinsurance transactions covering our 2014 through 2017 book years provided an aggregate of approximately $525 million of PMIERs capital credit as of December 31, 2017. International insurance subsidiaries—statutory financial information Our international insurance subsidiaries also prepare financial statements in accordance with local regulatory requirements. Our international insurance subsidiaries previously included the results of BLAIC, our primary Bermuda domiciled captive reinsurance subsidiary. As discussed above, on October 1, 2016, BLAIC merged with and into GLIC, our Delaware domiciled life insurance company, with GLIC being the surviving company. As of December 31, 2017 and 2016, combined local statutory capital and surplus included in continuing operations for our international insurance subsidiaries, excluding our European mortgage insurance business, was $5,034 million and $4,457 million, respectively. Combined local statutory net income (loss) included in continuing operations for our international insurance subsidiaries, excluding our lifestyle protection insurance business, was $548 million, $536 million and $511 million for the years ended December 31, 2017, 2016 and 2015, respectively. The regulatory authorities in these international jurisdictions generally establish supervisory solvency requirements. Our international insurance subsidiaries, excluding our European mortgage insurance business, had combined surplus levels included in continuing operations that exceeded local solvency requirements by $988 million and $576 million as of December 31, 2017 and 2016, respectively. Our international insurance subsidiaries do not have any material accounting practices that differ from local regulatory requirements other than one of our former insurance subsidiaries domiciled in Bermuda, which was granted approval from the Bermuda Monetary Authority to record a parental guarantee as statutory capital related to an internal reinsurance agreement. As a result of the merger of BLAIC with and into GLIC on October 1, 2016, all parental support provided to BLAIC, including the capital maintenance agreement that previously existed between Genworth Financial International Holdings, LLC and BLAIC, was terminated. Certain of our insurance subsidiaries have securities on deposit with various state or foreign government insurance departments in order to comply with relevant insurance regulations. See note 4(d) for additional information related to these deposits. Additionally, under the terms of certain reinsurance agreements that our life insurance subsidiaries have with external parties, we pledged assets in either separate portfolios or in trust for the benefit of external reinsurers. These assets support the reserves ceded to those external reinsurers. See note 8 for additional information related to these pledged assets under reinsurance agreements. Certain of our U.S. life insurance subsidiaries are also members of regional FHLBs and the FHLBs have been granted a lien on certain of our invested assets to collateralize our obligations. See note 9 for additional information related to these pledged assets with the FHLBs. Guarantees of obligations In addition to the guarantees discussed in notes 17 and 21, we have provided guarantees to third parties for the performance of certain obligations of our subsidiaries. We estimate that our potential obligations under such guarantees, other than the Rivermont I guarantee, were $6 million and $9 million as of December 31, 2017 and 2016, respectively. We provide a limited guarantee to Rivermont I, an indirect subsidiary, which is accounted for as a derivative carried at fair value and is eliminated in consolidation. As of December 31, 2017, the fair value of this derivative was $4 million and as of December 31, 2016, the fair value of this derivative was less than $1 million. Genworth Holdings provides capital support of up to $175 million, subject to adjustments, to one of its insurance subsidiaries to fund claims to support its mortgage insurance business in Mexico. We believe this insurance subsidiary has adequate reserves to cover its underlying obligations. Genworth Holdings also provided an unlimited guarantee for the benefit of policyholders for the payment of valid claims by our European mortgage insurance subsidiary prior to its sale in May 2016. Following the sale of this U.K. subsidiary to AmTrust Financial Services, Inc., the guarantee is now limited to the payment of valid claims on policies in-force prior to the sale date and those written approximately 90 days subsequent to the date of the sale, and AmTrust Financial Services, Inc. has agreed to provide us with a limited indemnification in the event there is any exposure under the guarantee. As of December 31, 2017, the risk in-force of the business subject to the guarantee was approximately $1.7 billion. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information | (19) Segment Information (a) Operating Segment Information We have the following five operating business segments: U.S. Mortgage Insurance; Canada Mortgage Insurance; Australia Mortgage Insurance; U.S. Life Insurance (which includes our long-term care insurance, life insurance and fixed annuities businesses); and Runoff (which includes the results of non-strategic products which have not been actively sold). In addition to our five operating business segments, we also have Corporate and Other activities which include debt financing expenses that are incurred at the Genworth Holdings level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of other businesses that are managed outside of our operating segments, including certain smaller international mortgage insurance businesses and discontinued operations. We allocate our consolidated provision for income taxes to our operating segments. Our allocation methodology applies a specific tax rate to the pre-tax income (loss) of each segment, which is then adjusted in each segment to reflect the tax attributes of items unique to that segment such as foreign income. The difference between the consolidated provision for income taxes and the sum of the provision for income taxes in each segment is reflected in Corporate and Other activities. The annually-determined tax rates and adjustments to each segment’s provision for income taxes are estimates which are subject to review and could change from year to year. We use the same accounting policies and procedures to measure segment income (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 effects of income attributable to noncontrolling interests, net investment gains (losses), goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions, restructuring costs and infrequent or unusual non-operating items. Gains (losses) on insurance block transactions are defined as gains (losses) on the early extinguishment of non-recourse funding obligations, early termination fees for other financing restructuring and/or resulting gains (losses) on reinsurance restructuring for certain blocks of business. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Goodwill impairments, gains (losses) on the sale of businesses, gains (losses) on the early extinguishment of debt, gains (losses) on insurance block transactions and restructuring costs are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders because, in our opinion, they are not indicative of overall operating trends. Infrequent or unusual non-operating items are also excluded from adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders if, in our opinion, they are not indicative of overall operating trends. While some of these items may be significant components of net income (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) available 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. In 2017, we recorded a pre-tax expense of $2 million related to restructuring costs as the company continues to evaluate and appropriately size its organizational needs and expenses. In 2016, we completed the sale of our term life insurance new business platform and recorded a pre-tax gain of $12 million and we also completed the sale of our mortgage insurance business in Europe and recorded an additional pre-tax loss of $9 million. We had early extinguishment of debt consisting of a $64 million pre-tax gain from the settlement of restricted borrowings related to a securitization entity, a pre-tax make-whole expense of $20 million related to the early redemption of Genworth Holdings’ 2016 notes and we repurchased $28 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax gain of $4 million. We completed a life block transaction resulting in a pre-tax loss of $9 million in connection with the early extinguishment of non-recourse funding obligations. We recorded a pre-tax expense of $22 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses. In 2015, we recognized a pre-tax loss of $140 million for the planned sale of our mortgage insurance business in Europe. We had early extinguishment of debt consisting of a $1 million pre-tax loss, net of the portion attributable to noncontrolling interests, related to the early redemption of Genworth Financial Mortgage Insurance Pty Limited’s notes that were scheduled to mature in 2021 and we also repurchased approximately $50 million principal amount of Genworth Holdings’ notes with various maturity dates for a pre-tax loss of $1 million. We recorded a pre-tax DAC impairment of $455 million on certain term life insurance policies in connection with entering into an agreement to complete a life block transaction. We recorded a pre-tax expense of $8 million related to restructuring costs as part of an expense reduction plan as the company evaluated and appropriately sized its organizational needs and expenses. There were no infrequent or unusual items excluded from adjusted operating income (loss) during the periods presented other than the following item. In 2016, we incurred fees related to Genworth Holdings’ bond consent solicitation of $18 million for broker, advisor and investment banking fees. The following is a summary of our segments and Corporate and Other activities as of or for the years ended December 31: 2017 U.S. Canada Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 695 $ 519 $ (140 ) $ 2,922 $ — $ 8 $ 4,004 Net investment income 73 132 75 2,755 160 5 3,200 Net investment gains (losses) — 128 25 134 16 (38 ) 265 Policy fees and other income 4 1 — 660 163 (2 ) 826 Total revenues 772 780 (40 ) 6,471 339 (27 ) 8,295 Benefits and other changes in policy reserves 107 54 109 4,880 26 3 5,179 Interest credited — — — 506 140 — 646 Acquisition and operating expenses, net of deferrals 165 80 67 572 61 77 1,022 Amortization of deferred acquisition costs and intangibles 14 43 24 328 24 2 435 Interest expense — 18 9 13 2 242 284 Total benefits and expenses 286 195 209 6,299 253 324 7,566 Income (loss) from continuing operations before income taxes 486 585 (249 ) 172 86 (351 ) 729 Provision (benefit) for income taxes 175 191 (90 ) 60 25 (568 ) (207 ) Income (loss) from continuing operations 311 394 (159 ) 112 61 217 936 Loss from discontinued operations, net of taxes — — — — — (9 ) (9 ) Net income (loss) 311 394 (159 ) 112 61 208 927 Less: net income (loss) attributable to noncontrolling interests — 190 (80 ) — — — 110 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 311 $ 204 $ (79 ) $ 112 $ 61 $ 208 $ 817 Total assets $ 3,273 $ 5,534 $ 2,973 $ 81,295 $ 10,907 $ 1,315 $ 105,297 2016 U.S. Canada Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 660 $ 481 $ 337 $ 2,670 $ — $ 12 $ 4,160 Net investment income 63 126 94 2,726 147 3 3,159 Net investment gains (losses) (1 ) 37 9 128 (14 ) (87 ) 72 Policy fees and other income 4 1 — 726 169 78 978 Total revenues 726 645 440 6,250 302 6 8,369 Benefits and other changes in policy reserves 160 104 113 4,822 42 4 5,245 Interest credited — — — 565 131 — 696 Acquisition and operating expenses, net of deferrals 167 77 96 648 68 217 1,273 Amortization of deferred acquisition costs and intangibles 12 39 14 403 29 1 498 Interest expense — 18 10 38 1 270 337 Total benefits and expenses 339 238 233 6,476 271 492 8,049 Income (loss) from continuing operations before income taxes 387 407 207 (226 ) 31 (486 ) 320 Provision (benefit) for income taxes 138 113 67 (80 ) 6 114 358 Income (loss) from continuing operations 249 294 140 (146 ) 25 (600 ) (38 ) Loss from discontinued operations, net of taxes — — — — — (29 ) (29 ) Net income (loss) 249 294 140 (146 ) 25 (629 ) (67 ) Less: net income attributable to noncontrolling interests — 135 75 — — — 210 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 249 $ 159 $ 65 $ (146 ) $ 25 $ (629 ) $ (277 ) Total assets $ 2,674 $ 4,884 $ 2,619 $ 81,933 $ 11,352 $ 1,196 $ 104,658 2015 U.S. Canada Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 602 $ 466 $ 357 $ 3,128 $ 1 $ 25 $ 4,579 Net investment income 58 130 114 2,701 138 (3 ) 3,138 Net investment gains (losses) 1 (32 ) 6 (10 ) (69 ) 29 (75 ) Policy fees and other income 4 — (3 ) 726 189 (10 ) 906 Total revenues 665 564 474 6,545 259 41 8,548 Benefits and other changes in policy reserves 222 96 81 4,692 44 14 5,149 Interest credited — — — 596 124 — 720 Acquisition and operating expenses, net of deferrals 155 66 98 684 76 230 1,309 Amortization of deferred acquisition costs and intangibles 10 36 18 872 29 1 966 Interest expense — 18 10 92 1 298 419 Total benefits and expenses 387 216 207 6,936 274 543 8,563 Income (loss) from continuing operations before income taxes 278 348 267 (391 ) (15 ) (502 ) (15 ) Provision (benefit) for income taxes 99 90 80 (138 ) (10 ) (130 ) (9 ) Income (loss) from continuing operations 179 258 187 (253 ) (5 ) (372 ) (6 ) Loss from discontinued operations, net of taxes — — — — — (407 ) (407 ) Net income (loss) 179 258 187 (253 ) (5 ) (779 ) (413 ) Less: net income attributable to noncontrolling interests — 118 84 — — — 202 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 179 $ 140 $ 103 $ (253 ) $ (5 ) $ (779 ) $ (615 ) (b) Revenues of Major Product Groups The following is a summary of revenues of major product groups for our segments and Corporate and Other activities for the years ended December 31: (Amounts in millions) 2017 2016 2015 Revenues: U.S. Mortgage Insurance segment $ 772 $ 726 $ 665 Canada Mortgage Insurance segment 780 645 564 Australia Mortgage Insurance segment (40 ) 440 474 U.S. Life Insurance segment: Long-term care insurance 4,062 4,037 3,752 Life insurance 1,591 1,381 1,902 Fixed annuities 818 832 891 U.S. Life Insurance segment 6,471 6,250 6,545 Runoff segment 339 302 259 Corporate and Other activities (27 ) 6 41 Total revenues $ 8,295 $ 8,369 $ 8,548 (c) Reconciliations 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 years ended December 31: (Amounts in millions) 2017 2016 2015 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 817 $ (277 ) $ (615 ) Add: net income attributable to noncontrolling interests 110 210 202 Net income (loss) 927 (67 ) (413 ) Loss from discontinued operations, net of taxes (9 ) (29 ) (407 ) Income (loss) from continuing operations 936 (38 ) (6 ) Less: income from continuing operations attributable to noncontrolling interests 110 210 202 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders 826 (248 ) (208 ) Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (202 ) (66 ) 30 (Gains) losses from sale of businesses — (3 ) 140 (Gains) losses on early extinguishment of debt, net (2) — (48 ) 2 Losses from life block transactions — 9 455 Expenses related to restructuring 2 22 8 Fees associated with bond consent solicitation — 18 — Taxes on adjustments 70 — (172 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 696 $ (316 ) $ 255 (1) For the years ended December 31, 2017, 2016 and 2015, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million, $(14) million and $(35) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $66 million, $20 million and $(10) million, respectively. (2) For the year ended December 31, 2015, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million. (Amounts in millions) 2017 2016 2015 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 311 $ 250 $ 179 Canada Mortgage Insurance segment 157 146 152 Australia Mortgage Insurance segment (88 ) 62 102 U.S. Life Insurance segment: Long-term care insurance 59 (200 ) 29 Life insurance (79 ) (83 ) (80 ) Fixed annuities 42 68 94 U.S. Life Insurance segment 22 (215 ) 43 Runoff segment 51 28 27 Corporate and Other activities 243 (587 ) (248 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 696 $ (316 ) $ 255 (d) Geographic Segment Information We conduct our operations in the following geographic regions: (1) United States (2) Canada (3) Australia and (4) Other Countries. The following is a summary of geographic region activity as of or for the years ended December 31: 2017 (Amounts in millions) United Canada Australia Other Total Total Total revenues $ 7,546 $ 780 $ (40 ) $ 9 $ 749 $ 8,295 Income (loss) from continuing operations $ 704 $ 394 $ (159 ) $ (3 ) $ 232 $ 936 Net income (loss) $ 695 $ 394 $ (159 ) $ (3 ) $ 232 $ 927 Total assets $ 96,740 $ 5,534 $ 2,973 $ 50 $ 8,557 $ 105,297 2016 (Amounts in millions) United Canada Australia Other Total Total Total revenues $ 7,270 $ 645 $ 440 $ 14 $ 1,099 $ 8,369 Income (loss) from continuing operations $ (447 ) $ 294 $ 140 $ (25 ) $ 409 $ (38 ) Net income (loss) $ (494 ) $ 294 $ 140 $ (7 ) $ 427 $ (67 ) Total assets $ 97,107 $ 4,884 $ 2,619 $ 48 $ 7,551 $ 104,658 2015 (Amounts in millions) United Canada Australia Other Total Total Total revenues $ 7,483 $ 564 $ 474 $ 27 $ 1,065 $ 8,548 Income (loss) from continuing operations $ (430 ) $ 258 $ 187 $ (21 ) $ 424 $ (6 ) Net income (loss) $ (430 ) $ 258 $ 187 $ (428 ) $ 17 $ (413 ) |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Results of Operations (unaudited) | (20) Quarterly Results of Operations (unaudited) Our unaudited quarterly results of operations for the year ended December 31, 2017 are summarized in the table below. Three months ended (Amounts in millions, except per share amounts) March 31, June 30, September 30, December 31, Total revenues (1) $ 2,171 $ 2,223 $ 2,215 $ 1,686 Total benefits and expenses (2) $ 1,839 $ 1,822 $ 1,929 $ 1,976 Income from continuing operations (3) $ 216 $ 271 $ 184 $ 265 Loss from discontinued operations, net of taxes $ — $ — $ (9 ) $ — Net income (3) $ 216 $ 271 $ 175 $ 265 Net income (loss) attributable to noncontrolling interests (4) $ 61 $ 69 $ 68 $ (88 ) Net income available to Genworth Financial, Inc.’s common stockholders (3) $ 155 $ 202 $ 107 $ 353 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.31 $ 0.40 $ 0.23 $ 0.71 Diluted $ 0.31 $ 0.40 $ 0.23 $ 0.70 Net income available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.31 $ 0.40 $ 0.21 $ 0.71 Diluted $ 0.31 $ 0.40 $ 0.21 $ 0.70 Weighted-average common shares outstanding: Basic 498.6 499.0 499.1 499.2 Diluted 501.0 501.2 501.6 502.1 (1) Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. (2) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2017, which resulted in higher total benefits and expenses of $117 million in our universal and term universal life insurance products driven mostly by emerging mortality experience and from prolonged low interest rates. In addition, we recorded lower total benefits and expenses of $18 million in our Australian mortgage insurance business associated with changes to their premium earnings pattern, as described above. (3) In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. (4) We completed a review of the premium earnings pattern in our Australian mortgage insurance business, as described above, which resulted in an unfavorable adjustment to net income (loss) attributable to noncontrolling interests of $151 million. Our unaudited quarterly results of operations for the year ended December 31, 2016 are summarized in the table below. Three months ended (Amounts in millions, except per share amounts) March 31, June 30, September 30, December 31, Total revenues (1) $ 1,785 $ 2,236 $ 2,150 $ 2,198 Total benefits and expenses (2) $ 1,635 $ 1,885 $ 2,275 $ 2,254 Income (loss) from continuing operations (3) $ 127 $ 241 $ (347 ) $ (59 ) Income (loss) from discontinued operations, net of taxes $ (19 ) $ (21 ) $ 15 $ (4 ) Net income (loss) (3) $ 108 $ 220 $ (332 ) $ (63 ) Net income attributable to noncontrolling interests $ 55 $ 48 $ 48 $ 59 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 53 $ 172 $ (380 ) $ (122 ) Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.14 $ 0.39 $ (0.79 ) $ (0.24 ) Diluted $ 0.14 $ 0.39 $ (0.79 ) $ (0.24 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.11 $ 0.35 $ (0.76 ) $ (0.25 ) Diluted $ 0.11 $ 0.34 $ (0.76 ) $ (0.25 ) Weighted-average common shares outstanding: Basic 498.0 498.5 498.3 498.4 Diluted (4) 499.4 500.4 498.3 498.4 (1) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. (2) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in higher total benefits and expenses of $307 million in our universal and term universal life insurance products. (3) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. (4) 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 months ended September 30, 2016 and December 31, 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, RSUs and SARs of 2.2 million and 2.5 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 ended September 30, 2016 and December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.9 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies | (21) Commitments and Contingencies (a) Litigation and Regulatory Matters We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses, including the risk of class action lawsuits. Our pending legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the industries in which we operate. In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force long-term care insurance premiums, payment of contingent or other sales commissions, claims payments and procedures, product design, product disclosure, product administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, recommending unsuitable products to customers, our pricing structures and business practices in our mortgage insurance businesses, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of the Real Estate Settlement and Procedures Act of 1974 or related state anti-inducement laws, and mortgage insurance policy rescissions and curtailments, and breaching fiduciary or other duties to customers, including but not limited to breach of customer information. Plaintiffs in class action and other lawsuits against us may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties. We are also subject to litigation arising out of our general business activities such as our contractual and employment relationships, post-closing obligations associated with previous dispositions and securities lawsuits. In addition, we are also subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and international regulators and other authorities. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our business, financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer significant reputational harm, which could have an adverse effect on our business, financial condition or results of operations. In April 2014, Genworth Financial, Inc., its former chief executive officer and its then current chief financial officer were named in a putative class action lawsuit captioned City of Hialeah Employees’ Retirement System v. Genworth Financial, Inc. et al. In re Genworth Financial, Inc. Securities Litigation. In January 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by International Union of Operating Engineers Local No. 478 Pension Fund, Richard L. Salberg and David Pinkoski in the Court of Chancery of the State of Delaware. The case was captioned Int’l Union of Operating Engineers Local No. 478 Pension Fund, et al v. McInerney, et al. Cohen v. McInerney, et al Genworth Financial, Inc. Consolidated Derivative Litigation In October 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, its current chief financial officer, its former chief financial officer and current and former members of its board of directors were named in a shareholder derivative suit filed by Esther Chopp in the Court of Chancery of the State of Delaware. The case is captioned Chopp v. McInerney, et al. In December 2016, Genworth Financial, Inc., its current chief executive officer, its former chief executive officer, two former chief financial officers, and two of its insurance subsidiaries were named as defendants in a putative class action lawsuit captioned Leifer, et al v. Genworth Financial, Inc., et al, In January 2017, two putative stockholder class action lawsuits, captioned Rice v. Genworth Financial Incorporated et al James v. Genworth Financial, Inc. et al, Rosenfeld Family Trust v. Genworth Financial, Inc. et al, Chopp v. Genworth Financial, Inc et al, Ratliff v. Genworth Financial, Inc et al, Rice Rice Rosenfeld Family Trust Rosenfeld Family Trust Chopp Rice, James Ratliff Rosenfeld Family Trust Rosenfeld Family Trust Chopp Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rosenfeld Family Trust Rice James Ratliff Rosenfeld Family Trust Chopp In April 2017, one of our insurance subsidiaries, GLAIC was named as a defendant in a putative class action lawsuit captioned Avazian, et al v. Genworth Life and Annuity Insurance Company Avazian, et al v. Genworth Life and Annuity Insurance Company, et al, In December 2017, Genworth Holdings and Genworth Financial were named as defendants in an action captioned AXA S.A. v. Genworth Financial Holdings, Inc., 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 December 31, 2017, we were committed to fund $317 million in limited partnership investments, $16 million in U.S. commercial mortgage loan investments and $152 million in private placement investments. As of December 31, 2017, we were committed to fund $18 million of bank loan investments which had not yet been drawn. In connection with the issuance of non-recourse funding obligations by Rivermont I, Genworth entered into a liquidity commitment agreement with Rivermont I and a third-party trust which issued the floating rate notes. The liquidity agreement requires Genworth to establish a line of credit facility in 2040 for the benefit of the trust in the amount of the estimated liquidity commitment amount which is the market value of the assets held in the trust supporting the outstanding notes as of the note maturity date in 2050. In addition, it also requires at the note maturity date, that Genworth loan the trust any liquidity commitment amounts. Any loan or drawn line of credit amount is an obligation of the trust and Rivermont I and shall accrue interest at LIBOR plus a margin of 1.2%. In consideration for entering into this agreement, Genworth received from Rivermont I a one-time commitment fee of approximately $2 million. The expected amount of future obligation under this agreement before repayment is approximately $14 million based on current projections. |
Changes In Accumulated Other Co
Changes In Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Changes In Accumulated Other Comprehensive Income (Loss) | (22) Changes In Accumulated Other Comprehensive Income (Loss) The following tables show the changes in accumulated other comprehensive income (loss), net of taxes, by component as of and for the periods indicated: (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2017 $ 1,262 $ 2,085 $ (253 ) $ 3,094 OCI before reclassifications (84 ) 38 251 205 Amounts reclassified from (to) OCI (102 ) (58 ) — (160 ) Current period OCI (186 ) (20 ) 251 45 Balances as of December 31, 2017 before noncontrolling interests 1,076 2,065 (2 ) 3,139 Less: change in OCI attributable to noncontrolling interests (9 ) — 121 112 Balances as of December 31, 2017 $ 1,085 $ 2,065 $ (123 ) $ 3,027 (1) Net of adjustments to DAC, PVFP, 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 54 120 54 228 Amounts reclassified from (to) OCI (57 ) (80 ) — (137 ) Current period OCI (3 ) 40 54 91 Balances as of December 31, 2016 before noncontrolling interests 1,251 2,085 (235 ) 3,101 Less: change in OCI attributable to noncontrolling interests (11 ) — 18 7 Balances as of December 31, 2016 $ 1,262 $ 2,085 $ (253 ) $ 3,094 (1) Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2015 $ 2,453 $ 2,070 $ (77 ) $ 4,446 OCI before reclassifications (1,218 ) 50 (530 ) (1,698 ) Amounts reclassified from (to) OCI 5 (75 ) — (70 ) Current period OCI (1,213 ) (25 ) (530 ) (1,768 ) Balances as of December 31, 2015 before noncontrolling interests 1,240 2,045 (607 ) 2,678 Less: change in OCI attributable to noncontrolling interests (14 ) — (318 ) (332 ) Balances as of December 31, 2015 $ 1,254 $ 2,045 $ (289 ) $ 3,010 (1) Net of adjustments to DAC, PVFP, 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 in the charts above included $(13) million, $(11) million and $(5) million, respectively, net of taxes of $6 million, $5 million and $3 million, respectively, related to a net unrecognized postretirement benefit obligation as of December 31, 2017, 2016 and 2015. The balance also included taxes of $—, $19 million and $63 million, respectively, related to foreign currency translation adjustments as of December 31, 2017, 2016 and 2015. The following table shows reclassifications out of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from Affected line item in the consolidated statements of income Years ended December 31, (Amounts in millions) 2017 2016 2015 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (157 ) $ (88 ) $ 7 Net investment (gains) losses (Provision) benefit for income taxes 55 31 (2 ) (Provision) benefit for income taxes Total $ (102 ) $ (57 ) $ 5 Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (131 ) $ (112 ) $ (85 ) Net investment income Interest rate swaps hedging assets (8 ) (2 ) — Net investment (gains) losses Inflation indexed swaps — (2 ) — Net investment income Inflation indexed swaps — (7 ) — Net investment (gains) losses Forward bond purchase commitments — — (1 ) Net investment income Forward bond purchase commitments — — (32 ) Net investment (gains) losses (Provision) benefit for income taxes 81 43 43 (Provision) benefit for income taxes Total $ (58 ) $ (80 ) $ (75 ) (1) Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Noncontrolling Interests
Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interests | (23) Noncontrolling Interests Canada In July 2009, Genworth Canada, our indirect subsidiary, completed an IPO of its common shares and we beneficially owned 57.5% of the common shares of Genworth Canada through subsidiaries. We currently hold approximately 57.1% of the outstanding common shares of Genworth Canada on a consolidated basis through subsidiaries. In addition, we have the right, exercisable at our discretion, to purchase for cash these common shares of Genworth Canada from our U.S. mortgage insurance companies at the then-current market price. We also have a right of first refusal with respect to the transfer of these common shares of Genworth Canada by our U.S. mortgage insurance companies. In May 2017, Genworth Canada announced acceptance by the Toronto Stock Exchange of its Notice of Intention to Make a Normal Course Issuer Bid (“NCIB”). Pursuant to the NCIB, Genworth Canada may, if considered advisable, purchase from time to time through May 4, 2018, up to an aggregate of approximately 4.6 million of its issued and outstanding common shares. In the third quarter of 2017, Genworth Canada repurchased approximately 1.1 million of its shares for CAD$40 million through the NCIB. We participated in the NCIB in order to maintain our ownership position at its current level of approximately 57.1% and received $18 million in cash. Of the $18 million of cash proceeds received, $12 million was paid as dividends to Genworth Holdings in the third quarter of 2017 and $6 million was retained by GMICO. During 2015, Genworth Canada repurchased 1.4 million of its shares for CAD$50 million through a NCIB authorized by its board for up to 4.7 million shares. We participated in the NCIB in order to maintain our overall ownership percentage and received $23 million in cash. In 2017, 2016 and 2015, dividends of $54 million, $50 million and $49 million, respectively, were paid to the noncontrolling interests of Genworth Canada. Australia In May 2014, Genworth Australia, a holding company for Genworth’s Australian mortgage insurance business, completed an IPO of its ordinary shares and we beneficially owned 66.2% of the ordinary shares of Genworth Australia through subsidiaries. On May 11, 2015, we sold 92.3 million of our shares in Genworth Australia at AUD$3.08 per ordinary share. The offering closed on May 15, 2015. Following completion of the offering, we beneficially owned 52.0% of the ordinary shares of Genworth Australia through subsidiaries. The majority of the net proceeds of the offering were distributed to Genworth Holdings. The net proceeds of the offering were approximately $226 million. In August 2017, Genworth Australia announced its intention to commence an on-market share buy-back program for shares up to a maximum aggregate amount of AUD$100 million. The total number of shares to be purchased by Genworth Australia under the program depends on business and market conditions, the prevailing share price, market volumes and other considerations. Pursuant to the program, Genworth Australia repurchased approximately 17 million of its shares for AUD$51 million in 2017. As the majority shareholder, we participated in on-market sales transactions during the buy-back period to maintain our ownership position of approximately 52.0% and received $20 million in cash, which was paid as dividends to Genworth Holdings. In February 2018, Genworth Australia completed their share repurchases under this program, and we participated to maintain our ownership position. During 2015, Genworth Australia repurchased 54.6 million of its shares for AUD$150 million through an on-market share buy-back program. We participated in on-market sales transactions during the buy-back period to maintain our ownership position and received $55 million in cash. On June 1, 2016, Genworth Australia completed a capital management initiative of AUD$202 million representing a return of capital of AUD$0.34 per share. As a result of the return of capital every one share was converted into 0.8555 shares. We received $76 million for our portion of the capital reduction and our ownership percentage remained at 52.0%. Consistent with applicable accounting guidance, changes in noncontrolling interests that do not result in a change of control are accounted for as equity transactions. When there are changes in noncontrolling interests of a subsidiary that do not result in a change of control, any difference between carrying value and fair value related to the change in ownership is recorded as an adjustment to stockholders’ equity. A summary of the changes in ownership interests and the effect on stockholders’ equity as a result of the additional public offering of Genworth Australia was as follows for the year ended December 31: (Amounts in millions) 2015 Net loss available to Genworth Financial, Inc.’s common stockholders $ (615 ) Transfers to the noncontrolling interests: Decrease in Genworth Financial, Inc.’s additional paid-in capital for additional sale of Genworth Australia shares to noncontrolling interests (65 ) Net transfers to noncontrolling interests (65 ) Change from net loss available to Genworth Financial, Inc.’s common stockholders and transfers to noncontrolling interests $ (680 ) In 2017, 2016 and 2015, dividends of $53 million, $88 million and $108 million, respectively, were paid to the noncontrolling interests of Genworth Australia. |
Sale of Businesses
Sale of Businesses | 12 Months Ended |
Dec. 31, 2017 | |
Sale of Businesses | (24) Sale of Businesses European mortgage insurance business On May 9, 2016, we completed the sale of our European mortgage insurance business to AmTrust Financial Services, Inc. and received net proceeds of approximately $50 million. As the held-for-sale criteria were satisfied during 2015, we recorded an estimated after-tax loss of approximately $141 million related to the sale, net of taxes of $1 million. In accordance with the accounting guidance for groups of assets that are held-for-sale, we recorded an impairment of $135 million in 2015 to record the carrying value of the business at its fair value, which was based on estimated proceeds less $5 million of closing costs. Upon completion of the sale, we recorded an additional pre-tax loss of $9 million and a tax benefit of $27 million primarily related to the reversal of a deferred tax valuation allowance for a total net after-tax gain of $18 million in 2016. Lifestyle protection insurance On December 1, 2015, we completed the sale of our lifestyle protection insurance business and received approximately $493 million, with net proceeds of approximately $400 million. During 2015, we recorded an after-tax loss of approximately $381 million, net of taxes of $155 million. In 2016, we continued to finalize the closing balance sheet and purchase price adjustments and recorded an after-tax loss of $29 million which primarily related to tax items and claim liabilities. In 2017, we recorded an additional after-tax loss of $9 million primarily related to an adjustment of certain claims previously included in discontinued operations and tax items. We retained liabilities for certain claims, taxes and sales practices that occurred while we owned the lifestyle protection insurance business. We have established our current best estimates for these liabilities, where appropriate; however, there may be future adjustments to these estimates and contingent liabilities that are not currently recorded that could become probable and estimable, which could result in the establishment of a liability and an expense to net income (loss). Summary operating results of discontinued operations were as follows for the years ended December 31: (Amounts in millions) 2017 2016 2015 Revenues: Premiums $ — $ — $ 627 Net investment income — — 74 Total revenues — — 701 Benefits and expenses: Benefits and other changes in policy reserves — — 182 Acquisition and operating expenses — — 396 Amortization of deferred acquisition costs and intangibles — — 83 Interest expense — — 29 Total benefits and expenses — — 690 Income before income taxes and loss on sale — — 11 Provision for income taxes — — 37 Loss before loss on sale — — (26 ) Loss on sale, net of taxes (9 ) (29 ) (381 ) Loss from discontinued operations, net of taxes $ (9 ) $ (29 ) $ (407 ) In connection with the settlement of the U.K. pension plan as part of the sale of our lifestyle protection insurance business, we purchased a group annuity contract. The amounts associated with the group annuity contract were held in a third-party trust for the benefit of the participants until individual annuity contracts were transferred to the participants on September 1, 2016. As a result, the U.K. pension plan was completely settled in September 2016. Life insurance business On June 24, 2016, we completed the sale of our term life insurance new business platform to Pacific Life Insurance Company for a purchase price of $29 million. The sale primarily included a building located in Lynchburg, Virginia and software. As a result of this transaction, we recorded a pre-tax gain of $12 million and taxes of $4 million. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Consolidating Financial Information | (25) 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. 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 December 31, 2017 and 2016 and the condensed consolidating income statement information, condensed consolidating comprehensive income statement information and condensed consolidating cash flow statement information for the years ended December 31, 2017, 2016 and 2015. 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 December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 62,725 $ (200 ) $ 62,525 Equity securities available-for-sale, at fair value — — 820 — 820 Commercial mortgage loans — — 6,341 — 6,341 Restricted commercial mortgage loans related to securitization entities — — 107 — 107 Policy loans — — 1,786 — 1,786 Other invested assets — 75 1,742 (4 ) 1,813 Investments in subsidiaries 13,561 12,867 — (26,428 ) — Total investments 13,561 12,942 73,521 (26,632 ) 73,392 Cash and cash equivalents — 795 2,080 — 2,875 Accrued investment income — — 647 (3 ) 644 Deferred acquisition costs — — 2,329 — 2,329 Intangible assets and goodwill — — 301 — 301 Reinsurance recoverable — — 17,569 — 17,569 Other assets 3 54 397 (1 ) 453 Intercompany notes receivable — 155 59 (214 ) — Deferred tax assets 27 — 477 — 504 Separate account assets — — 7,230 — 7,230 Total assets $ 13,591 $ 13,946 $ 104,610 $ (26,850 ) $ 105,297 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 38,472 $ — $ 38,472 Policyholder account balances — — 24,195 — 24,195 Liability for policy and contract claims — — 9,594 — 9,594 Unearned premiums — — 3,967 — 3,967 Other liabilities 41 119 1,759 (9 ) 1,910 Intercompany notes payable 132 259 23 (414 ) — Borrowings related to securitization entities — — 40 — 40 Non-recourse funding obligations — — 310 — 310 Long-term borrowings — 3,724 500 — 4,224 Deferred tax liability — (807 ) 834 — 27 Separate account liabilities — — 7,230 — 7,230 Total liabilities 173 3,295 86,924 (423 ) 89,969 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in capital 11,977 9,096 18,420 (27,516 ) 11,977 Accumulated other comprehensive income (loss) 3,027 3,037 3,051 (6,088 ) 3,027 Retained earnings 1,113 (1,482 ) (5,998 ) 7,480 1,113 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,418 10,651 15,476 (26,127 ) 13,418 Noncontrolling interests — — 2,210 (300 ) 1,910 Total equity 13,418 10,651 17,686 (26,427 ) 15,328 Total liabilities and equity $ 13,591 $ 13,946 $ 104,610 $ (26,850 ) $ 105,297 The following table presents the condensed consolidating balance sheet information as of December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 60,772 $ (200 ) $ 60,572 Equity securities available-for-sale, at fair value — — 632 — 632 Commercial mortgage loans — — 6,111 — 6,111 Restricted commercial mortgage loans related to securitization entities — — 129 — 129 Policy loans — — 1,742 — 1,742 Other invested assets — 105 1,966 — 2,071 Restricted other invested assets related to securitization entities, at fair value — — 312 — 312 Investments in subsidiaries 12,730 12,308 — (25,038 ) — Total investments 12,730 12,413 71,664 (25,238 ) 71,569 Cash and cash equivalents — 998 1,786 — 2,784 Accrued investment income — — 663 (4 ) 659 Deferred acquisition costs — — 3,571 — 3,571 Intangible assets and goodwill — — 348 — 348 Reinsurance recoverable — — 17,755 — 17,755 Other assets 9 134 530 — 673 Intercompany notes receivable — 84 67 (151 ) — Deferred tax assets 28 — (28 ) — — Separate account assets — — 7,299 — 7,299 Total assets $ 12,767 $ 13,629 $ 103,655 $ (25,393 ) $ 104,658 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 37,063 $ — $ 37,063 Policyholder account balances — — 25,662 — 25,662 Liability for policy and contract claims — — 9,256 — 9,256 Unearned premiums — — 3,378 — 3,378 Other liabilities 39 301 2,581 (5 ) 2,916 Intercompany notes payable 84 267 — (351 ) — Borrowings related to securitization entities — — 74 — 74 Non-recourse funding obligations — — 310 — 310 Long-term borrowings — 3,716 464 — 4,180 Deferred tax liability — (816 ) 869 — 53 Separate account liabilities — — 7,299 — 7,299 Total liabilities 123 3,468 86,956 (356 ) 90,191 Equity: Common stock 1 — — — 1 Additional paid-in capital 11,962 9,097 20,252 (29,349 ) 11,962 Accumulated other comprehensive income (loss) 3,094 3,135 3,116 (6,251 ) 3,094 Retained earnings 287 (2,071 ) (8,792 ) 10,863 287 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,644 10,161 14,576 (24,737 ) 12,644 Noncontrolling interests — — 2,123 (300 ) 1,823 Total equity 12,644 10,161 16,699 (25,037 ) 14,467 Total liabilities and equity $ 12,767 $ 13,629 $ 103,655 $ (25,393 ) $ 104,658 The following table presents the condensed consolidating income statement information for the year ended December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 4,004 $ — $ 4,004 Net investment income (3 ) 8 3,210 (15 ) 3,200 Net investment gains (losses) — (14 ) 279 — 265 Policy fees and other income — 5 823 (2 ) 826 Total revenues (3 ) (1 ) 8,316 (17 ) 8,295 Benefits and expenses: Benefits and other changes in policy reserves — — 5,179 — 5,179 Interest credited — — 646 — 646 Acquisition and operating expenses, net of deferrals 57 (2 ) 967 — 1,022 Amortization of deferred acquisition costs and intangibles — — 435 — 435 Interest expense 1 254 46 (17 ) 284 Total benefits and expenses 58 252 7,273 (17 ) 7,566 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (61 ) (253 ) 1,043 — 729 Benefit for income taxes — (67 ) (140 ) — (207 ) Equity in income of subsidiaries 878 771 — (1,649 ) — Income from continuing operations 817 585 1,183 (1,649 ) 936 Income (loss) from discontinued operations, net of taxes — 4 (13 ) — (9 ) Net income 817 589 1,170 (1,649 ) 927 Less: net income attributable to noncontrolling interests — — 110 — 110 Net income available to Genworth Financial, Inc.’s common stockholders $ 817 $ 589 $ 1,060 $ (1,649 ) $ 817 The following table presents the condensed consolidating income statement information for the year ended December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 4,160 $ — $ 4,160 Net investment income (3 ) 2 3,175 (15 ) 3,159 Net investment gains (losses) — (1 ) 73 — 72 Policy fees and other income — (8 ) 986 — 978 Total revenues (3 ) (7 ) 8,394 (15 ) 8,369 Benefits and expenses: Benefits and other changes in policy reserves — — 5,245 — 5,245 Interest credited — — 696 — 696 Acquisition and operating expenses, net of deferrals 153 38 1,082 — 1,273 Amortization of deferred acquisition costs and intangibles — — 498 — 498 Interest expense 1 278 73 (15 ) 337 Total benefits and expenses 154 316 7,594 (15 ) 8,049 Income (loss) from continuing operations before income taxes and equity in loss of subsidiaries (157 ) (323 ) 800 — 320 Provision (benefit) for income taxes (47 ) 71 334 — 358 Equity in loss of subsidiaries (166 ) (53 ) — 219 — Income (loss) from continuing operations (276 ) (447 ) 466 219 (38 ) Loss from discontinued operations, net of taxes (1 ) (12 ) (16 ) — (29 ) Net income (loss) (277 ) (459 ) 450 219 (67 ) Less: net income attributable to noncontrolling interests — — 210 — 210 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (277 ) $ (459 ) $ 240 $ 219 $ (277 ) The following table presents the condensed consolidating income statement information for the year ended December 31, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 4,579 $ — $ 4,579 Net investment income (3 ) 1 3,154 (14 ) 3,138 Net investment gains (losses) — 43 (118 ) — (75 ) Policy fees and other income — (32 ) 940 (2 ) 906 Total revenues (3 ) 12 8,555 (16 ) 8,548 Benefits and expenses: Benefits and other changes in policy reserves — — 5,149 — 5,149 Interest credited — — 720 — 720 Acquisition and operating expenses, net of deferrals 32 2 1,275 — 1,309 Amortization of deferred acquisition costs and intangibles — — 966 — 966 Interest expense — 307 128 (16 ) 419 Total benefits and expenses 32 309 8,238 (16 ) 8,563 Income (loss) from continuing operations before income taxes and equity in loss of subsidiaries (35 ) (297 ) 317 — (15 ) Provision (benefit) for income taxes (8 ) (103 ) 102 — (9 ) Equity in loss of subsidiaries (579 ) (463 ) — 1,042 — Income (loss) from continuing operations (606 ) (657 ) 215 1,042 (6 ) Loss from discontinued operations, net of taxes (9 ) — (398 ) — (407 ) Net loss (615 ) (657 ) (183 ) 1,042 (413 ) Less: net income attributable to noncontrolling interests — — 202 — 202 Net loss available to Genworth Financial, Inc.’s common stockholders $ (615 ) $ (657 ) $ (385 ) $ 1,042 $ (615 ) The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 817 $ 589 $ 1,170 $ (1,649 ) $ 927 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (178 ) (189 ) (187 ) 367 (187 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 1 (2 ) 1 Derivatives qualifying as hedges (20 ) (19 ) (19 ) 38 (20 ) Foreign currency translation and other adjustments 130 109 252 (240 ) 251 Total other comprehensive income (loss) (67 ) (98 ) 47 163 45 Total comprehensive income 750 491 1,217 (1,486 ) 972 Less: comprehensive income attributable to noncontrolling interests — — 222 — 222 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 750 $ 491 $ 995 $ (1,486 ) $ 750 The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (277 ) $ (459 ) $ 450 $ 219 $ (67 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 17 14 7 (32 ) 6 Net unrealized gains (losses) on other-than- temporarily impaired securities (9 ) (6 ) (9 ) 15 (9 ) Derivatives qualifying as hedges 40 39 43 (82 ) 40 Foreign currency translation and other adjustments 36 (28 ) 54 (8 ) 54 Total other comprehensive income (loss) 84 19 95 (107 ) 91 Total comprehensive income (loss) (193 ) (440 ) 545 112 24 Less: comprehensive income attributable to noncontrolling interests — — 217 — 217 Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (193 ) $ (440 ) $ 328 $ 112 $ (193 ) The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net loss $ (615 ) $ (657 ) $ (183 ) $ 1,042 $ (413 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (1,181 ) (1,158 ) (1,210 ) 2,340 (1,209 ) Net unrealized gains (losses) on other-than- temporarily impaired securities (4 ) (4 ) (4 ) 8 (4 ) Derivatives qualifying as hedges (25 ) (24 ) (19 ) 43 (25 ) Foreign currency translation and other adjustments (250 ) (171 ) (530 ) 421 (530 ) Total other comprehensive income (loss) (1,460 ) (1,357 ) (1,763 ) 2,812 (1,768 ) Total comprehensive loss (2,075 ) (2,014 ) (1,946 ) 3,854 (2,181 ) Less: comprehensive loss attributable to noncontrolling interests — — (106 ) — (106 ) Total comprehensive loss available to Genworth Financial Inc.’s common stockholders $ (2,075 ) $ (2,014 ) $ (1,840 ) $ 3,854 $ (2,075 ) The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 817 $ 589 $ 1,170 $ (1,649 ) $ 927 Less (income) loss from discontinued operations, net of taxes — (4 ) 13 — 9 Adjustments to reconcile net income to net cash from (used by) operating activities: Equity in income from subsidiaries (878 ) (771 ) — 1,649 — Dividends from subsidiaries — 148 (148 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 5 (152 ) — (147 ) Net investment (gains) losses — 14 (279 ) — (265 ) Charges assessed to policyholders — — (713 ) — (713 ) Acquisition costs deferred — — (88 ) — (88 ) Amortization of deferred acquisition costs and intangibles — — 435 — 435 Deferred income taxes 10 7 (385 ) — (368 ) Trading securities, held-for-sale investments and derivative instruments — (44 ) 747 — 703 Stock-based compensation expense 30 — 12 — 42 Change in certain assets and liabilities: Accrued investment income and other assets 5 (41 ) 66 — 30 Insurance reserves — — 1,625 — 1,625 Current tax liabilities 23 (89 ) 62 — (4 ) Other liabilities, policy and contract claims and other policy-related balances (35 ) 80 327 (4 ) 368 Net cash from (used by) operating activities (28 ) (106 ) 2,692 (4 ) 2,554 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 4,766 — 4,766 Commercial mortgage loans — — 579 — 579 Restricted commercial mortgage loans related to securitization entities — — 22 — 22 Proceeds from sales of investments: Fixed maturity and equity securities — — 4,226 — 4,226 Purchases and originations of investments: Fixed maturity and equity securities — — (8,888 ) — (8,888 ) Commercial mortgage loans — — (806 ) — (806 ) Other invested assets, net — 25 (730 ) 4 (701 ) Policy loans, net — — 48 — 48 Intercompany notes receivable — (71 ) 8 63 — Capital contributions to subsidiaries (12 ) — 12 — — Payments for businesses purchased, net of cash acquired (7 ) — 2 — (5 ) Net cash used by investing activities (19 ) (46 ) (761 ) 67 (759 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 857 — 857 Withdrawals from universal life and investment contracts — — (2,397 ) — (2,397 ) Repayment of borrowings related to securitization entities — — (34 ) — (34 ) Intercompany notes payable 48 (8 ) 23 (63 ) — Repurchase of subsidiary shares — — (33 ) — (33 ) Dividends paid to noncontrolling interests — — (107 ) — (107 ) Other, net (1 ) (43 ) (10 ) — (54 ) Net cash from (used by) financing activities 47 (51 ) (1,701 ) (63 ) (1,768 ) Effect of exchange rate changes on cash and cash equivalents — — 64 — 64 Net change in cash and cash equivalents — (203 ) 294 — 91 Cash and cash equivalents at beginning of period — 998 1,786 — 2,784 Cash and cash equivalents at end of period $ — $ 795 $ 2,080 $ — $ 2,875 The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net income (loss) $ (277 ) $ (459 ) $ 450 $ 219 $ (67 ) Less loss from discontinued operations, net of taxes 1 12 16 — 29 Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in loss from subsidiaries 166 53 — (219 ) — 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 — 4 (142 ) — (138 ) Net investment (gains) losses — 1 (73 ) — (72 ) Charges assessed to policyholders — — (782 ) — (782 ) Acquisition costs deferred — — (150 ) — (150 ) Amortization of deferred acquisition costs and intangibles — — 498 — 498 Deferred income taxes (6 ) 233 (82 ) — 145 Trading securities, held-for-sale investments and derivative instruments — 5 704 — 709 Stock-based compensation expense 23 — 9 — 32 Change in certain assets and liabilities: Accrued investment income and other assets (9 ) 98 (445 ) (2 ) (358 ) Insurance reserves — — 1,315 — 1,315 Current tax liabilities — 42 (10 ) — 32 Other liabilities, policy and contract claims and other policy-related balances 20 (63 ) 723 5 685 Net cash from (used by) operating activities (82 ) 177 1,754 3 1,852 Cash flows from (used by) investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 150 3,739 — 3,889 Commercial mortgage loans — — 700 — 700 Restricted commercial mortgage loans related to securitization entities — — 32 — 32 Proceeds from sales of investments: Fixed maturity and equity securities — — 5,629 — 5,629 Purchases and originations of investments: Fixed maturity and equity securities — — (11,529 ) — (11,529 ) Commercial mortgage loans — — (649 ) — (649 ) Other invested assets, net — — (151 ) (3 ) (154 ) Policy loans, net — — (77 ) — (77 ) Intercompany notes receivable — (82 ) — 82 — Proceeds from sale of businesses, net of cash transferred — 1 38 — 39 Net cash from (used by) investing activities — 69 (2,268 ) 79 (2,120 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 1,349 — 1,349 Withdrawals from universal life and investment contracts — — (2,004 ) — (2,004 ) Redemption and repurchase of non-recourse funding obligations — — (1,620 ) — (1,620 ) Repayment and repurchase of long-term debt — (326 ) (36 ) — (362 ) Repayment of borrowings related to securitization entities — — (42 ) — (42 ) Intercompany notes payable 82 — — (82 ) — Return of capital to noncontrolling interests — — (70 ) — (70 ) Dividends paid to noncontrolling interests — — (138 ) — (138 ) Other, net — (46 ) 2 — (44 ) Net cash from (used by) financing activities 82 (372 ) (2,559 ) (82 ) (2,931 ) Effect of exchange rate changes on cash and cash equivalents — — (10 ) — (10 ) Net change in cash and cash equivalents — (126 ) (3,083 ) — (3,209 ) Cash and cash equivalents at beginning of period — 1,124 4,869 — 5,993 Cash and cash equivalents at end of period $ — $ 998 $ 1,786 $ — $ 2,784 The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net loss $ (615 ) $ (657 ) $ (183 ) $ 1,042 $ (413 ) Less loss from discontinued operations, net of taxes 9 — 398 — 407 Adjustments to reconcile net loss to net cash from operating activities: Equity in loss from subsidiaries 579 463 — (1,042 ) — Dividends from subsidiaries — 530 (530 ) — — Loss on sale of businesses — — 141 — 141 Amortization of fixed maturity securities discounts and premiums and limited partnerships — — (106 ) — (106 ) Net investment (gains) losses — (43 ) 118 — 75 Charges assessed to policyholders — — (788 ) — (788 ) Acquisition costs deferred — — (293 ) — (293 ) Amortization of deferred acquisition costs and intangibles — — 966 — 966 Deferred income taxes (4 ) (65 ) (127 ) — (196 ) Trading securities, held-for-sale investments and derivative instruments — 41 (280 ) — (239 ) Stock-based compensation expense 21 — (5 ) — 16 Change in certain assets and liabilities: Accrued investment income and other assets 3 13 (123 ) 1 (106 ) Insurance reserves — — 1,847 — 1,847 Current tax liabilities (3 ) 18 (30 ) — (15 ) Other liabilities, policy and contract claims and other policy-related balances 2 (38 ) 328 1 293 Cash from operating activities—held for sale — — 2 — 2 Net cash from (used by) operating activities (8 ) 262 1,335 2 1,591 Cash flows from (used by) investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 1 4,540 — 4,541 Commercial mortgage loans — — 882 — 882 Restricted commercial mortgage loans related to securitization entities — — 41 — 41 Proceeds from sales of investments: Fixed maturity and equity securities — — 4,391 — 4,391 Purchases and originations of investments: Fixed maturity and equity securities — — (9,750 ) — (9,750 ) Commercial mortgage loans — — (956 ) — (956 ) Other invested assets, net — (100 ) 277 (2 ) 175 Policy loans, net — — 25 — 25 Intercompany notes receivable 9 265 (63 ) (211 ) — Capital contributions to subsidiaries — (25 ) 25 — — Proceeds from sale of businesses, net of cash transferred — — 273 — 273 Payments for businesses purchased, net of cash acquired — (197 ) 197 — — Cash used by investing activities—held for sale — — (26 ) — (26 ) Net cash from (used by) investing activities 9 (56 ) (144 ) (213 ) (404 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 2,257 — 2,257 Withdrawals from universal life and investment contracts — — (2,144 ) — (2,144 ) Redemption and repurchase of non-recourse funding obligations — — (61 ) — (61 ) Proceeds from the issuance of long-term debt — — 150 — 150 Repayment and repurchase of long-term debt — (50 ) (70 ) — (120 ) Repayment of borrowings related to securitization entities — — (36 ) — (36 ) Intercompany notes payable 2 54 (267 ) 211 — Repurchase of subsidiary shares — — (68 ) — (68 ) Dividends paid to noncontrolling interests — — (157 ) — (157 ) Proceeds from the sale of subsidiary shares to noncontrolling interests — — 226 — 226 Other, net (3 ) (39 ) (56 ) — (98 ) Cash from financing activities—held for sale — — 9 — 9 Net cash used by financing activities (1 ) (35 ) (217 ) 211 (42 ) Effect of exchange rate changes on cash and cash equivalents — — (70 ) — (70 ) Net change in cash and cash equivalents — 171 904 — 1,075 Cash and cash equivalents at beginning of period — 953 3,965 — 4,918 Cash and cash equivalents at end of period — 1,124 4,869 — 5,993 Less cash and cash equivalents held for sale at end of period — — 28 — 28 Cash and cash equivalents of continuing operations at end of period $ — $ 1,124 $ 4,841 $ — $ 5,965 For information on significant restrictions on dividends by, or loans or advances from, subsidiaries of Genworth Financial and Genworth Holdings, and the restricted net assets of those subsidiaries, see note 18. |
Schedule I Genworth Financial,
Schedule I Genworth Financial, Inc. Summary of Investments-Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Schedule I Genworth Financial, Inc. Summary of Investments-Other Than Investments in Related Parties | Schedule I Genworth Financial, Inc. Summary of Investments—Other Than Investments in Related Parties (Amounts in millions) As of December 31, 2017, the amortized cost or cost, fair value and carrying value of our invested assets were as follows: Type of investment Amortized cost or cost Fair value Carrying value Fixed maturity securities: Bonds: U.S. government, agencies and authorities $ 4,681 $ 5,548 $ 5,548 State and political subdivisions 2,678 2,926 2,926 Non-U.S. government 2,147 2,233 2,233 Public utilities 5,375 6,015 6,015 All other corporate bonds 42,611 45,803 45,803 Total fixed maturity securities 57,492 62,525 62,525 Equity securities 756 820 820 Commercial mortgage loans 6,341 xxxxx 6,341 Restricted commercial mortgage loans related to securitization entities 107 xxxxx 107 Policy loans 1,786 xxxxx 1,786 Other invested assets (1) 1,585 xxxxx 1,813 Total investments $ 68,067 xxxxx $ 73,392 (1) The amount shown in the consolidated balance sheet for other invested assets differs from amortized cost or cost presented, as other invested assets include certain assets with a carrying amount that differs from amortized cost or cost. |
Schedule II Genworth Financial,
Schedule II Genworth Financial, Inc. (Parent Company Only) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule II Genworth Financial, Inc. (Parent Company Only) | Schedule II Genworth Financial, Inc. (Parent Company Only) Balance Sheets (Amounts in millions) December 31, 2017 2016 Assets Investments in subsidiaries $ 13,561 $ 12,730 Deferred tax asset 27 28 Other assets 3 9 Total assets $ 13,591 $ 12,767 Liabilities and stockholders’ equity Liabilities: Other liabilities $ 41 $ 39 Intercompany notes payable 132 84 Total liabilities 173 123 Commitments and contingencies Stockholders’ equity: Common stock 1 1 Additional paid-in capital 11,977 11,962 Accumulated other comprehensive income (loss): Net unrealized investment gains (losses): Net unrealized gains (losses) on securities not other-than-temporarily impaired 1,075 1,253 Net unrealized gains (losses) on other-than-temporarily impaired securities 10 9 Net unrealized investment gains (losses) 1,085 1,262 Derivatives qualifying as hedges 2,065 2,085 Foreign currency translation and other adjustments (123 ) (253 ) Total accumulated other comprehensive income (loss) 3,027 3,094 Retained earnings 1,113 287 Treasury stock, at cost (2,700 ) (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,418 12,644 Total liabilities and stockholders’ equity $ 13,591 $ 12,767 See Notes to Schedule II See Report of Independent Registered Public Accounting Firm Schedule II Genworth Financial, Inc. (Parent Company Only) Statements of Income (Amounts in millions) Years ended December 31, 2017 2016 2015 Revenues: Net investment income $ (3 ) $ (3 ) $ (3 ) Total revenues (3 ) (3 ) (3 ) Expenses: Acquisition and operating expenses, net of deferrals 57 153 32 Interest expense 1 1 — Total expenses 58 154 32 Loss before income taxes and equity in income (loss) of subsidiaries (61 ) (157 ) (35 ) Benefit from income taxes — (47 ) (8 ) Equity in income (loss) of subsidiaries 878 (166 ) (579 ) Loss from discontinued operations, net of taxes — (1 ) (9 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 817 $ (277 ) $ (615 ) See Notes to Schedule II See Report of Independent Registered Public Accounting Firm Schedule II Genworth Financial, Inc. (Parent Company Only) Statements of Comprehensive Income (Amounts in millions) Years ended December 31, 2017 2016 2015 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 817 $ (277 ) $ (615 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (178 ) 17 (1,181 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 (9 ) (4 ) Derivatives qualifying as hedges (20 ) 40 (25 ) Foreign currency translation and other adjustments 130 36 (250 ) Total other comprehensive income (loss) (67 ) 84 (1,460 ) Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ 750 $ (193 ) $ (2,075 ) See Notes to Schedule II See Report of Independent Registered Public Accounting Firm Schedule II Genworth Financial, Inc. (Parent Company Only) Statements of Cash Flows (Amounts in millions) Years ended December 31, 2017 2016 2015 Cash flows used by operating activities: Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 817 $ (277 ) $ (615 ) Less loss from discontinued operations, net of taxes — 1 9 Adjustments to reconcile net income (loss) available to Genworth Financial, Inc.’s common stockholders to net cash used by operating activities: Equity in (income) loss from subsidiaries (878 ) 166 579 Deferred income taxes 10 (6 ) (4 ) Stock-based compensation expense 30 23 21 Change in certain assets and liabilities: Accrued investment income and other assets 5 (9 ) 3 Current tax liabilities 23 — (3 ) Other liabilities and other policy-related balances (35 ) 20 2 Net cash used by operating activities (28 ) (82 ) (8 ) Cash flows from (used by) investing activities: Intercompany notes receivable — — 9 Capital contributions paid to subsidiaries (12 ) — — Payments for business purchased (7 ) — — Net cash from (used by) investing activities (19 ) — 9 Cash flows from (used by) financing activities: Other, net (1 ) — (3 ) Intercompany notes payable 48 82 2 Net cash from (used by) financing activities 47 82 (1 ) Effect of exchange rate changes on cash and cash equivalents — — — Cash and cash equivalents at beginning of year — — — Cash and cash equivalents at end of year $ — $ — $ — See Notes to Schedule II See Report of Independent Registered Public Accounting Firm Schedule II Genworth Financial, Inc. (Parent Company Only) Notes to Schedule II Years Ended December 31, 2017, 2016 and 2015 (1) Organization and Purpose Genworth Holdings (formerly known as Genworth Financial, Inc.) was incorporated in Delaware in 2003 in preparation for an 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 upon the completion of the reorganization. Genworth Financial is a holding company whose subsidiaries offer mortgage and long-term care insurance products and service life insurance, as well as annuities and other investment products. 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 Financial’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. (2) Commitments 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 Financial also provides a full and unconditional guarantee of Genworth Holdings’ obligations associated with Rivermont I and the Tax Matters Agreement. (3) Income Taxes As of December 31, 2017 and 2016, Genworth Financial had a deferred tax asset of $27 million and $28 million, respectively, primarily comprised of share-based compensation. In the fourth quarter of 2017, Genworth Financial revalued its deferred tax assets to 21% under the TCJA. The revaluation resulted in a reduction to the deferred tax asset of $18 million, which was recorded through income from continuing operations. We also adopted new accounting guidance related to stock-based compensation in 2017 and recorded a previously disallowed deferred tax asset of $9 million. These amounts are undiscounted pursuant to the applicable rules governing deferred taxes. Genworth Financial’s current income tax payable was $23 million and zero as of December 31, 2017 and 2016, respectively. Net cash received for taxes was $32 million, $41 million and $1 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Schedule III Genworth Financial
Schedule III Genworth Financial, Inc. Supplemental Insurance Information | 12 Months Ended |
Dec. 31, 2017 | |
Schedule III Genworth Financial, Inc. Supplemental Insurance Information | Schedule III Genworth Financial, Inc. Supplemental Insurance Information (Amounts in millions) Segment Deferred Acquisition Costs Future Policy Benefits Policyholder Account Balances Liability for Policy and Contract Claims Unearned Premiums December 31, 2017 U.S. Mortgage Insurance $ 28 $ — $ — $ 455 $ 404 Canada Mortgage Insurance 131 — — 87 1,700 Australia Mortgage Insurance 49 — — 218 1,299 U.S. Life Insurance 1,908 38,469 21,138 8,816 560 Runoff 213 3 3,057 11 4 Corporate and Other — — — 7 — Total $ 2,329 $ 38,472 $ 24,195 $ 9,594 $ 3,967 December 31, 2016 U.S. Mortgage Insurance $ 28 $ — $ — $ 635 $ 342 Canada Mortgage Insurance 121 — — 112 1,595 Australia Mortgage Insurance 31 — — 211 850 U.S. Life Insurance 3,149 37,060 22,285 8,276 586 Runoff 242 3 3,377 15 5 Corporate and Other — — — 7 — Total $ 3,571 $ 37,063 $ 25,662 $ 9,256 $ 3,378 See Report of Independent Registered Public Accounting Firm Schedule III—Continued Genworth Financial, Inc. Supplemental Insurance Information (Amounts in millions) Segment Premium Revenue Net Investment Income Interest Credited and Benefits and Other Changes in Policy Reserves Amortization of Deferred Acquisition Costs Other Operating Expenses Premiums Written December 31, 2017 U.S. Mortgage Insurance $ 695 $ 73 $ 107 $ 10 $ 169 $ 757 Canada Mortgage Insurance 519 132 54 41 100 509 Australia Mortgage Insurance (140 ) 75 109 (5 ) 105 231 U.S. Life Insurance 2,922 2,755 5,386 272 641 2,902 Runoff — 160 166 24 63 — Corporate and Other 8 5 3 — 321 7 Total $ 4,004 $ 3,200 $ 5,825 $ 342 $ 1,399 $ 4,406 December 31, 2016 U.S. Mortgage Insurance $ 660 $ 63 $ 160 $ 9 $ 170 $ 744 Canada Mortgage Insurance 481 126 104 37 97 576 Australia Mortgage Insurance 337 94 113 13 107 231 U.S. Life Insurance 2,670 2,726 5,387 394 695 2,644 Runoff — 147 173 28 70 — Corporate and Other 12 3 4 — 488 13 Total $ 4,160 $ 3,159 $ 5,941 $ 481 $ 1,627 $ 4,208 December 31, 2015 U.S. Mortgage Insurance $ 602 $ 58 $ 222 $ 7 $ 158 $ 682 Canada Mortgage Insurance 466 130 96 35 85 641 Australia Mortgage Insurance 357 114 81 16 110 328 U.S. Life Insurance 3,128 2,701 5,288 816 832 3,115 Runoff 1 138 168 28 78 1 Corporate and Other 25 (3 ) 14 — 529 27 Total $ 4,579 $ 3,138 $ 5,869 $ 902 $ 1,792 $ 4,794 See Report of Independent Registered Public Accounting Firm |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Premiums | a) Premiums For traditional long-duration insurance contracts, we report premiums as earned when due. For short-duration insurance contracts, we report premiums as revenue over the terms of the related insurance policies on a pro-rata basis or in proportion to expected claims. For single premium mortgage insurance contracts, we report premiums over the estimated policy life in accordance with the expected pattern of risk emergence as further described in our accounting policy for unearned premiums. In addition, we have a practice of refunding the post-delinquent premiums in our U.S. mortgage insurance business to the insured party if the delinquent loan goes to claim. We record a liability for premiums received on the delinquent loans where our practice is to refund post-delinquent premiums. Premiums received under annuity contracts without significant mortality risk and premiums received on investment and universal life insurance products are not reported as revenues but rather as deposits and are included in liabilities for policyholder account balances. |
Net Investment Income and Net Investment Gains and Losses | b) Net Investment Income and Net Investment Gains and Losses Investment income is recognized when earned. Income or losses upon call or prepayment of available-for-sale fixed maturity securities is recognized in net investment income, except for hybrid securities where the income or loss upon call is recognized in net investment gains and losses. Investment gains and losses are calculated on the basis of specific identification on the trade date. Investment income on mortgage-backed and asset-backed securities is initially based upon yield, cash flow and prepayment assumptions at the date of purchase. Subsequent revisions in those assumptions are recorded using the retrospective or prospective method. Under the retrospective method used for mortgage-backed and asset-backed securities of high credit quality (ratings equal to or greater than “AA” or that are backed by a U.S. agency) which cannot be contractually prepaid in such a manner that we would not recover a substantial portion of the initial investment, amortized cost of the security is adjusted to the amount that would have existed had the revised assumptions been in place at the date of purchase. The adjustments to amortized cost are recorded as a charge or credit to net investment income. Under the prospective method, which is used for all other mortgage-backed and asset-backed securities, future cash flows are estimated and interest income is recognized going forward using the new internal rate of return. |
Policy Fees and Other Income | c) Policy Fees and Other Income Policy fees and other income consists primarily of insurance charges assessed on universal and term universal life insurance contracts and fees assessed against customer account values. For universal and term universal life insurance contracts, charges to policyholder accounts for cost of insurance are recognized as revenue when due. Variable product fees are charged to variable annuity contractholders and variable life insurance policyholders based upon the daily net assets of the contractholder’s and policyholder’s account values and are recognized as revenue when charged. Policy surrender fees are recognized as income when the policy is surrendered. |
Investment Securities | d) Investment Securities At the time of purchase, we designate our investment securities as either available-for-sale or trading and report them in our consolidated balance sheets at fair value. Our portfolio of fixed maturity securities comprises primarily investment grade securities. Changes in the fair value of available-for-sale investments, net of the effect on deferred acquisition costs (“DAC”), present value of future profits (“PVFP”), benefit reserves and deferred income taxes, are reflected as unrealized investment gains or losses in a separate component of accumulated other comprehensive income (loss). Realized and unrealized gains and losses related to trading securities are reflected in net investment gains (losses). Trading securities are included in other invested assets in our consolidated balance sheets and primarily represent fixed maturity securities where we utilized the fair value option. Other-Than-Temporary Impairments On Available-For-Sale Securities As of each balance sheet date, we evaluate securities in an unrealized loss position for other-than-temporary impairments. For debt securities, we consider all available information relevant to the collectability of the security, including information about past events, current conditions, and reasonable and supportable forecasts, when developing the estimate of cash flows expected to be collected. More specifically for mortgage-backed and asset-backed securities, we also utilize performance indicators of the underlying assets including default or delinquency rates, loan to collateral value ratios, third-party credit enhancements, current levels of subordination, vintage and other relevant characteristics of the security or underlying assets to develop our estimate of cash flows. Estimating the cash flows expected to be collected is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. Where possible, this data is benchmarked against third-party sources. We recognize other-than-temporary impairments on debt securities in an unrealized loss position when one of the following circumstances exists: • we do not expect full recovery of our amortized cost basis when due, • the present value of cash flows expected to be collected is less than our amortized cost basis, • we intend to sell a security or • it is more likely than not that we will be required to sell a security prior to recovery. For other-than-temporary impairments recognized during the period, we present the total other-than-temporary impairments, the portion of other-than-temporary impairments included in other comprehensive income (loss) (“OCI”) and the net other-than-temporary impairments as supplemental disclosure presented on the face of our consolidated statements of income. Total other-than-temporary impairments that emerged in the current period are calculated as the difference between the amortized cost and fair value. For other-than-temporarily impaired securities where we do not intend to sell the security and it is not more likely than not that we will be required to sell the security prior to recovery, total other-than-temporary impairments are adjusted by the portion of other-than-temporary impairments recognized in OCI (“non-credit”). Net other-than-temporary impairments recorded in net income (loss) represent the credit loss on the other-than-temporarily impaired securities with the offset recognized as an adjustment to the amortized cost to determine the new amortized cost basis of the securities. For securities that were deemed to be other-than-temporarily impaired and a non-credit loss was recorded in OCI, the amount recorded as an unrealized gain (loss) represents the difference between the current fair value and the new amortized cost for each period presented. The unrealized gain (loss) on an other-than-temporarily impaired security is recorded as a separate component in OCI until the security is sold or until we record an other-than-temporary impairment where we intend to sell the security or will be required to sell the security prior to recovery. To estimate the amount of other-than-temporary impairment attributed to credit losses on debt securities where we do not intend to sell the security and it is not more likely than not that we will be required to sell the security prior to recovery, we determine our best estimate of the present value of the cash flows expected to be collected from a security using the effective yield on the security prior to recording any other-than-temporary impairment. If the present value of the discounted cash flows is lower than the amortized cost of the security, the difference between the present value and amortized cost represents the credit loss associated with the security with the remaining difference between fair value and amortized cost recorded as a non-credit other-than-temporary impairment in OCI. The evaluation of other-than-temporary impairments is subject to risks and uncertainties and is intended to determine the appropriate amount and timing for recognizing an impairment charge. The assessment of whether such impairment has occurred is based on management’s best estimate of the cash flows expected to be collected at the individual security level. We regularly monitor our investment portfolio to ensure that securities that may be other-than-temporarily impaired are identified in a timely manner and that any impairment charge is recognized in the proper period. While the other-than-temporary impairment model for debt securities generally includes fixed maturity securities, there are certain hybrid securities that are classified as fixed maturity securities where the application of a debt impairment model depends on whether there has been any evidence of deterioration in credit of the issuer, such as a downgrade to below investment grade. Under certain circumstances, evidence of deterioration in credit of the issuer may result in the application of the equity securities impairment model. For equity securities, we recognize an impairment charge in the period in which we determine that the security will not recover to book value within a reasonable period of time. We determine what constitutes a reasonable period on a security-by-security basis based upon consideration of all the evidence available to us, including the magnitude of an unrealized loss and its duration. In any event, this period does not exceed 15 months for common equity securities. We measure other-than-temporary impairments based upon the difference between the amortized cost of a security and its fair value. |
Fair Value Measurements | e) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We have fixed maturity, equity and trading securities, derivatives, embedded derivatives, securities held as collateral, separate account assets and certain other financial instruments, which are carried at fair value. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. All assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: • Level 1—Quoted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3—Instruments whose significant value drivers are unobservable. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as actively traded equity securities and actively traded mutual fund investments. Level 2 includes those financial instruments that are valued using industry-standard pricing methodologies, models or other valuation methodologies. These models are primarily industry-standard models that consider various inputs, such as interest rate, credit spread and foreign exchange rates for the underlying financial instruments. All significant inputs are observable, or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include: certain public and private corporate fixed maturity and equity securities; government or agency securities; certain mortgage-backed and asset-backed securities; securities held as collateral; and certain non-exchange-traded derivatives such as interest rate or cross currency swaps. Level 3 comprises financial instruments whose fair value is estimated based on industry-standard pricing methodologies and internally developed models utilizing significant inputs not based on, nor corroborated by, readily available market information. In certain instances, this category may also utilize non-binding broker quotes. This category primarily consists of certain less liquid fixed maturity, equity and trading securities and certain derivative instruments or embedded derivatives where we cannot corroborate the significant valuation inputs with market observable data. As of each reporting period, all assets and liabilities recorded at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability, such as the relative impact on the fair value as a result of including a particular input. 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 in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. See note 16 for additional information related to fair value measurements. |
Commercial Mortgage Loans | f) Commercial Mortgage Loans The carrying value of commercial mortgage loans is stated at original cost, net of principal payments, amortization and allowance for loan losses. Interest on loans is recognized on an accrual basis at the applicable interest rate on the principal amount outstanding. Loan origination fees and direct costs, as well as premiums and discounts, are amortized as level yield adjustments over the respective loan terms. Unamortized net fees or costs are recognized upon early repayment of the loans. Loan commitment fees are deferred and amortized on an effective yield basis over the term of the loan. Commercial mortgage loans are considered past due when contractual payments have not been received from the borrower by the required payment date. “Impaired” loans are defined by U.S. GAAP as loans for which it is probable that the lender will be unable to collect all amounts due according to original contractual terms of the loan agreement. In determining whether it is probable that we will be unable to collect all amounts due, we consider current payment status, debt service coverage ratios, occupancy levels and current loan-to-value. Impaired loans are carried on a non-accrual status. Loans are placed on non-accrual status when, in management’s opinion, the collection of principal or interest is unlikely, or when the collection of principal or interest is 90 days or more past due. Income on impaired loans is not recognized until the loan is sold or the cash received exceeds the carrying amount recorded. We evaluate the impairment of commercial mortgage loans first on an individual loan basis. If an individual loan is not deemed impaired, then we evaluate the remaining loans collectively to determine whether an impairment should be recorded. For individually impaired loans, we record an impairment charge when it is probable that a loss has been incurred. The impairment is recorded as an increase in the allowance for loan losses. All losses of principal are charged to the allowance for loan losses in the period in which the loan is deemed to be uncollectible. For loans that are not individually impaired where we evaluate the loans collectively, the allowance for loan losses is maintained at a level that we determine is adequate to absorb estimated probable incurred losses in the loan portfolio. Our process to determine the adequacy of the allowance utilizes an analytical model based on historical loss experience adjusted for current events, trends and economic conditions that would result in a loss in the loan portfolio over the next 12 months. Key inputs into our evaluation include debt service coverage ratios, loan-to-value, property-type, occupancy levels, geographic region, and probability weighting of the scenarios generated by the model. The actual amounts realized could differ in the near term from the amounts assumed in arriving at the allowance for loan losses reported in the consolidated financial statements. Additions and reductions to the allowance through periodic provisions or benefits are recorded in net investment gains (losses). See note 4 for additional disclosures related to commercial mortgage loans. |
Repurchase Agreements | g) Repurchase Agreements We previously had a repurchase program in which we sold an investment security at a specified price and agreed to repurchase that security at another specified price at a later date. Repurchase agreements were treated as collateralized financing transactions and were carried at the amounts at which the securities were subsequently reacquired, including accrued interest, as specified in the respective agreement. The market value of securities to be repurchased was monitored and collateral levels were adjusted where appropriate to protect the parties against credit exposure. Cash received was invested in fixed maturity securities. See note 12 for additional information related to our repurchase agreements. |
Securities Lending Activity | h) Securities Lending Activity In the United States and Canada, we engage in certain securities lending transactions for the purpose of enhancing the yield on our investment securities portfolio. We maintain effective control over all loaned securities and, therefore, continue to report such securities as fixed maturity securities on the consolidated balance sheets. We are currently indemnified against counterparty credit risk by the intermediary. See note 12 for additional information related to our securities lending activity. |
Cash and Cash Equivalents | i) Cash and Cash Equivalents Certificates of deposit, money market funds and other time deposits with original maturities of 90 days or less are considered cash equivalents in the consolidated balance sheets and consolidated statements of cash flows. Items with maturities greater than 90 days but less than one year at the time of acquisition are considered short-term investments. |
Deferred Acquisition Costs | j) Deferred Acquisition Costs Acquisition costs include costs that are directly related to the successful acquisition of new or renewal insurance contracts. Acquisition costs are deferred and amortized to the extent they are recoverable from future profits. Long-Duration Contracts Amortization for deferred annuity and universal life insurance contracts is based on expected gross profits. Expected gross profits are adjusted quarterly to reflect actual experience to date or for changes in underlying assumptions relating to future gross profits. Estimates of gross profits for DAC amortization are based on assumptions including interest rates, policyholder persistency or lapses, insured life expectancy or longevity and expenses. We are required to analyze the impacts from net unrealized investment gains and losses on our available-for-sale investment securities backing insurance liabilities, as if those unrealized investment gains and losses were realized. These “shadow accounting” adjustments result in the recognition of unrealized gains and losses on related insurance assets and liabilities in a manner consistent with the recognition of the unrealized gains and losses on available-for-sale investment securities within the statement of comprehensive income and changes in equity. Changes to net unrealized investment (gains) losses may increase or decrease the ending DAC balance. Similar to a loss recognition event, when the DAC balance is reduced to zero, additional insurance liabilities are established if necessary. Unlike a loss recognition event, based on changes in net unrealized investment (gains) losses, these shadow adjustments may reverse from period to period. Therefore, DAC amortized based on expected gross-profits is adjusted to reflect the effects that would have been recognized had the unrealized investment (gains) losses been actually realized with a corresponding amount recorded in other comprehensive income (loss). DAC associated with traditional long-duration insurance contracts is not adjusted for unrealized investment (gains) or losses unless a premium deficiency would have resulted upon the (gain) or loss being realized. Short-Duration Contracts. We regularly review our assumptions and test DAC for recoverability at least annually. For deferred annuity and universal life insurance contracts, if the present value of expected future gross profits is less than the unamortized DAC for a line of business, a charge to income (loss) is recorded for additional DAC amortization. For traditional long-duration and short-duration contracts, if the benefit reserve plus anticipated future premiums and interest income for a line of business are less than the current estimate of future benefits and expenses (including any unamortized DAC), a charge to income (loss) is recorded for additional DAC amortization or for increased benefit reserves. See note 6 for additional information related to DAC including loss recognition and recoverability. |
Intangible Assets | k) Intangible Assets Present Value of Future Profits. We regularly review our PVFP assumptions and periodically test PVFP for recoverability similar to our treatment of DAC. See note 7 for additional information related to PVFP including recoverability. Deferred Sales Inducements to Contractholders. Other Intangible Assets |
Goodwill | l) Goodwill Goodwill is not amortized but is tested for impairment annually or between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value. The determination of fair value requires the use of estimates and judgment, at the “reporting unit” level. A reporting unit is the operating segment, or a business, one level below that operating segment (the “component” level) if discrete financial information is prepared and regularly reviewed by management at the component level. If the reporting unit’s fair value is below its carrying value, we must determine the amount of implied goodwill that would be established if the reporting unit was hypothetically purchased on the impairment assessment date. We recognize an impairment charge for any amount by which the carrying amount of a reporting unit’s goodwill exceeds the amount of implied goodwill. No goodwill impairment charges were recorded in 2017, 2016 or 2015. |
Reinsurance | m) Reinsurance Premium revenue, benefits and acquisition and operating expenses, net of deferrals, are reported net of the amounts relating to reinsurance ceded to and assumed from other companies. Amounts due from reinsurers for incurred and estimated future claims are reflected in the reinsurance recoverable asset. Amounts received from reinsurers that represent recovery of acquisition costs are netted against DAC so that the net amount is capitalized. The cost of reinsurance is accounted for over the terms of the related treaties using assumptions consistent with those used to account for the underlying reinsured policies. Premium revenue, benefits and acquisition and operating expenses, net of deferrals, for reinsurance contracts that do not qualify for reinsurance accounting are accounted for under the deposit method of accounting. |
Derivatives | n) Derivatives Derivative instruments are used to manage risk through one of four principal risk management strategies including: (i) liabilities; (ii) invested assets; (iii) portfolios of assets or liabilities; and (iv) forecasted transactions. On the date we enter into a derivative contract, management designates the derivative as a hedge of the identified exposure (cash flow or foreign currency). If a derivative does not qualify for hedge accounting, the changes in its fair value and all scheduled periodic settlement receipts and payments are reported in income (loss). We formally document all relationships between hedging instruments and hedged items, as well as our risk management objective and strategy for undertaking various hedge transactions. In this documentation, we specifically identify the asset, liability or forecasted transaction that has been designated as a hedged item, state how the hedging instrument is expected to hedge the risks related to the hedged item, and set forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure hedge ineffectiveness. We generally determine hedge effectiveness based on total changes in fair value of the hedged item attributable to the hedged risk and the total changes in fair value of the derivative instrument. We discontinue hedge accounting prospectively when: (i) it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of a hedged item; (ii) the derivative expires or is sold, terminated or exercised; (iii) the derivative is de-designated as a hedge instrument; or (iv) it is no longer probable that the forecasted transaction will occur. For all qualifying and highly effective cash flow hedges, the effective portion of changes in fair value of the derivative instrument is reported as a component of OCI. The ineffective portion of changes in fair value of the derivative instrument is reported as a component of income (loss). When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative continues to be carried in the consolidated balance sheets at its fair value, and gains and losses that were accumulated in OCI are recognized immediately in income (loss). When the hedged forecasted transaction is no longer probable, but is reasonably possible, the accumulated gain or loss remains in OCI and is recognized when the transaction affects income (loss); however, prospective hedge accounting for the transaction is terminated. In all other situations in which hedge accounting is discontinued on a cash flow hedge, amounts previously deferred in OCI are reclassified into income (loss) when income (loss) is impacted by the variability of the cash flow of the hedged item. We may enter into contracts that are not themselves derivative instruments but contain embedded derivatives. For each contract, we assess whether the economic characteristics of the embedded derivative are clearly and closely related to those of the host contract and determine whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. If it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and accounted for as a stand-alone derivative. Such embedded derivatives are recorded in the consolidated balance sheets at fair value and are classified consistent with their host contract. Changes in their fair value are recognized in current period income (loss). If we are unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried in the consolidated balance sheets at fair value, with changes in fair value recognized in current period income (loss). Changes in the fair value of non-qualifying derivatives, including embedded derivatives and hedge ineffectiveness on cash flow hedges are reported in net investment gains (losses). The majority of our derivative arrangements require the posting of collateral upon meeting certain net exposure thresholds. The amounts recognized for derivative counterparty collateral received by us was recorded in cash and cash equivalents with a corresponding amount recorded in other liabilities to represent our obligation to return the collateral retained by us. We also receive non-cash collateral that is not recognized in our balance sheet unless we exercise our right to sell or re-pledge the underlying asset. As of December 31, 2017 and 2016, the fair value of non-cash collateral received was $70 million and $24 million, respectively, and the underlying assets were not sold or re-pledged. We have pledged $288 million and $384 million of fixed maturity securities as of December 31, 2017 and 2016, respectively. Additionally, as of December 31, 2017 and 2016, we pledged $59 million and $173 million, respectively, of cash as collateral to derivative counterparties. Fixed maturity securities that we pledge as collateral remain on our balance sheet within fixed maturity securities available-for-sale. Any cash collateral pledged to a derivative counterparty is derecognized with a receivable recorded in other assets for the right to receive our cash collateral back from the counterparty. Derivatives previously cleared through a Central Clearing Party, such as the Chicago Mercantile Exchange, required us to post cash collateral for daily changes in the fair value of the derivative contract, commonly referred to as variation margin. 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. |
Separate Accounts and Related Insurance Obligations | o) Separate Accounts and Related Insurance Obligations Separate account assets represent funds for which the investment income and investment gains and losses accrue directly to the contractholders and are reflected in our consolidated balance sheets at fair value, reported as summary total separate account assets with an equivalent summary total reported for liabilities. Amounts assessed against the contractholders for mortality, administrative and other services are included in revenues. Changes in liabilities for minimum guarantees are included in benefits and other changes in policy reserves. Net investment income, net investment gains (losses) and the related liability changes associated with the separate account are offset within the same line item in the consolidated statements of income. There were no gains or losses on transfers of assets from the general account to the separate account. We offer certain minimum guarantees associated with our variable annuity contracts. Our variable annuity contracts usually contain a basic guaranteed minimum death benefit (“GMDB”) which provides a minimum benefit to be paid upon the annuitant’s death equal to the larger of account value and the return of net deposits. Some variable annuity contracts permit contractholders to purchase through riders, at an additional charge, enhanced death benefits such as the highest contract anniversary value (“ratchets”), accumulated net deposits at a stated rate (“rollups”), or combinations thereof. Additionally, some of our variable annuity contracts provide the contractholder with living benefits such as a guaranteed minimum withdrawal benefit (“GMWB”) or certain types of guaranteed annuitization benefits. The GMWB allows contractholders to withdraw a pre-defined percentage of account value or benefit base each year, either for a specified period of time or for life. The guaranteed annuitization benefit generally provides for a guaranteed minimum level of income upon annuitization accompanied by the potential for upside market participation. Most of our reserves for additional insurance and annuitization benefits are calculated by applying a benefit ratio to accumulated contractholder assessments, and then deducting accumulated paid claims. The benefit ratio is equal to the ratio of benefits to assessments, accumulated with interest and considering both past and anticipated future experience. The projections utilize stochastic scenarios of separate account returns incorporating reversion to the mean, as well as assumptions for mortality and lapses. Some of our minimum guarantees, mainly GMWBs, are accounted for as embedded derivatives; see notes 5 and 16 for additional information on these embedded derivatives and related fair value measurement disclosures. |
Insurance Reserves | p) Insurance Reserves Future Policy Benefits The liability for future policy benefits is equal to the present value of expected benefits and expenses less the present value of expected future net premiums based on assumptions, including, investment returns, health care experience (including type of care and cost of care), policyholder persistency or lapses (i.e., the probability that a policy or contract will remain in-force from one period to the next), insured life expectancy or longevity, insured morbidity (i.e., frequency and severity of claim, including claim termination rates and benefit utilization rates) and expenses, all of which are locked-in at the time the policies are issued or acquired. Claim termination rates refer to the expected rates at which claims end. Benefit utilization rates estimate how much of the available policy benefits are expected to be used. The liability for future policy benefits is evaluated at least annually to determine if a premium deficiency exists. Loss recognition testing is generally performed at the line of business level, with acquired blocks and certain reinsured blocks tested separately. If the liability for future policy benefits plus the current present value of expected future premiums are less than the current present value of expected future benefits and expenses (including any unamortized DAC), a charge to income (loss) is recorded for accelerated DAC amortization and, if necessary, a premium deficiency reserve is established. If a charge is recorded, DAC amortization and the liability for future policy benefits are measured using updated assumptions, which become the new locked-in assumptions utilized going forward unless another premium deficiency charge is recorded. Our estimates of future premiums used in loss recognition testing for our long-term care insurance business include assumptions for significant premium rate increases that have been filed and approved or are anticipated to be approved. Estimates of future premiums also include significant anticipated (but not yet filed) future rate increases or benefit reductions. These anticipated future increases are based on our best estimate of the rate increases we expect to obtain, considering, among other factors, our historical experience from prior rate increase approvals and based on our best estimate of expected claim costs. We are also required to accrue additional future policy benefit reserves when the overall reserve is adequate, but profits are projected in early periods followed by losses projected in later periods. When this pattern of profits followed by losses exists, we ratably accrue this additional profits followed by losses liability over time, increasing reserves in the profitable periods to offset estimated losses expected during the periods that follow. We calculate and adjust the additional reserves using our current best estimate of the amount necessary to offset the losses in future periods, based on the pattern of expected income and current best estimate assumptions consistent with our loss recognition testing. We adjust the accrual rate prospectively, going forward over the remaining profit periods, without any catch-up adjustment. For long-term care insurance products, benefit reductions are treated as partial lapse of coverage with the balance of our future policy benefits and DAC both reduced in proportion to the reduced coverage. For level premium term life insurance products, we floor the liability for future policy benefits on each policy at zero. Estimates and actuarial assumptions used for establishing the liability for future policy benefits and in loss recognition testing involve the exercise of significant judgment, and changes in assumptions or deviations of actual experience from assumptions can have material impacts on our liability for future policy benefits and net income (loss). Because these assumptions relate to factors that are not known in advance, change over time, are difficult to accurately predict and are inherently uncertain, we cannot determine with precision the ultimate amounts we will pay for actual claims or the timing of those payments. Small changes in assumptions or small deviations of actual experience from assumptions can have, and in the past have had, material impacts on our reserves, results of operations and financial condition. The risk that our claims experience may differ significantly from our pricing and valuation assumptions is particularly significant for our long-term care insurance products. Long-term care insurance policies provide for long-duration coverage and, therefore, our actual claims experience will emerge over many years after pricing and locked-in valuation assumptions have been established. Policyholder Account Balances The liability for policyholder account balances represents the contract value that has accrued to the benefit of the policyholder as of the balance sheet date for investment-type and universal life insurance contracts. We are also required to establish additional benefit reserves for guarantees or product features in addition to the contract value where the additional benefit reserves are calculated by applying a benefit ratio to accumulated contractholder assessments, and then deducting accumulated paid claims. The benefit ratio is equal to the ratio of benefits to assessments, accumulated with interest and considering both past and anticipated future experience. Investment-type contracts are broadly defined to include contracts without significant mortality or morbidity risk. Payments received from sales of investment contracts are recognized by providing a liability equal to the current account value of the policyholders’ contracts. Interest rates credited to investment contracts are guaranteed for the initial policy term with renewal rates determined as necessary by management. |
Liability for Policy and Contract Claims | q) Liability for Policy and Contract Claims The liability for policy and contract claims, or claim reserves, represents the amount needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the end of the respective reporting period. The estimated liability includes requirements for future payments of: (a) claims that have been reported to the insurer; (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated; and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees and costs to record, process and adjust claims. Our liability for policy and contract claims is reviewed regularly, with changes in our estimates of future claims recorded through net income (loss). Estimates and actuarial assumptions used for establishing the liability for policy and contract claims involve the exercise of significant judgment, and changes in assumptions or deviations of actual experience from assumptions can have material impacts on our liability for policy and contract claims and net income (loss). Because these assumptions relate to factors that are not known in advance, change over time, are difficult to accurately predict and are inherently uncertain, we cannot determine with precision the ultimate amounts we will pay for actual claims or the timing of those payments. Small changes in assumptions or small deviations of actual experience from assumptions can have, and in the past have had, material impacts on our reserves, results of operations and financial condition. The liability for policy and contract claims for our long-term care insurance products represents the present value of the amount needed to provide for the estimated ultimate cost of settling claims relating to insured events that have occurred on or before the end of the respective reporting period. Key assumptions include investment returns, health care experience (including type of care and cost of care), policyholder persistency or lapses (i.e., the probability that a policy or contract will remain in-force from one period to the next), insured mortality (i.e., life expectancy or longevity), insured morbidity (i.e., frequency and severity of claim, including claim termination rates and benefit utilization rates) and expenses. Claim termination rates refer to the expected rates at which claims end. Benefit utilization rates estimate how much of the available policy benefits are expected to be used. Both claim termination rates and benefit utilization rates are influenced by, among other things, gender, age at claim, diagnosis, type of care needed, benefit period, and daily benefit amount. Because these assumptions relate to factors that are not known in advance, change over time, are difficult to accurately predict and are inherently uncertain, we cannot determine with precision the ultimate amounts we will pay for actual claims or the timing of those payments. Small changes in assumptions or small deviations of actual experience from assumptions can have, and in the past have had, material impacts on our reserves, results of operations and financial condition. The liabilities for our mortgage insurance policies represent our best estimates of the liabilities at the time based on known facts, trends and other external factors, including economic conditions, housing prices and employment rates. For our mortgage insurance policies, reserves for losses and loss adjustment expenses are based on notices of mortgage loan defaults and estimates of defaults that have been incurred but have not been reported by loan servicers, using assumptions of claim rates for loans in default and the average amount paid for loans that result in a claim. As is common accounting practice in the mortgage insurance industry and in accordance with U.S. GAAP, we begin to provide for the ultimate claim payment relating to a potential claim on a defaulted loan when the status of that loan first goes delinquent. Over time, as the status of the underlying delinquent loans move toward foreclosure and the likelihood of the associated claim loss increases, the amount of the loss reserves associated with the potential claims may also increase. Management considers the liability for policy and contract claims provided to be its best estimate to cover the losses that have occurred. Management monitors actual experience, and where circumstances warrant, will revise its assumptions. The methods of determining such estimates and establishing the reserves are reviewed periodically and any adjustments are reflected in operations in the period in which they become known. Future developments may result in losses and loss expenses greater or less than the liability for policy and contract claims provided. |
Unearned Premiums | r) Unearned Premiums For single premium insurance contracts, we recognize premiums over the policy life in accordance with the expected pattern of risk emergence. We recognize a portion of the revenue in premiums earned in the current period, while the remaining portion is deferred as unearned premiums and earned over time in accordance with the expected pattern of risk emergence. If single premium policies are cancelled and the premium is non-refundable, then the remaining unearned premium related to each cancelled policy is recognized to earned premiums upon notification of the cancellation. Expected pattern of risk emergence on which we base premium recognition is inherently judgmental and is based on actuarial analysis of historical experience. We periodically review our premium earnings recognition models with any adjustments to the estimates reflected as a cumulative adjustment in current period income (loss). For the years ended December 31, 2017, 2016 and 2015, we reviewed our premium recognition factors for our mortgage insurance businesses. These reviews included the consideration of recent and projected loss experience, policy cancellation experience and refinement of actuarial methods. In 2017, adjustments associated with this review resulted in a decrease in earned premiums of $468 million in our Australian mortgage insurance business. In 2016, we did not have any adjustments associated with this review. In 2015, adjustments associated with this review resulted in an increase in earned premiums of $8 million primarily in our Australian mortgage insurance business. |
Stock-Based Compensation | s) Stock-Based Compensation We determine a grant date fair value and recognize the related compensation expense, adjusted for expected forfeitures, through the income statement over the respective vesting period of the awards. |
Employee Benefit Plans | t) Employee Benefit Plans We provide employees with a defined contribution pension plan and recognize expense throughout the year based on the employee’s age, service and eligible pay. We make an annual contribution to the plan. We also provide employees with defined contribution savings plans. We recognize expense for our contributions to the savings plans at the time employees make contributions to the plans. Some employees participate in defined benefit pension and postretirement benefit plans. We recognize expense for these plans based upon actuarial valuations performed by external experts. We estimate aggregate benefits by using assumptions for employee turnover, future compensation increases, rates of return on pension plan assets and future health care costs. We recognize an expense for differences between actual experience and estimates over the average future service period of participants. We recognize the overfunded or underfunded status of a defined benefit plan as an asset or liability in our consolidated balance sheets and recognize changes in that funded status in the year in which the changes occur through OCI. |
Income Taxes | u) Income Taxes We determine deferred tax assets and/or liabilities by multiplying the differences between the financial reporting and tax reporting bases for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled if there is no change in law. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances on deferred tax assets are estimated based on our assessment of the realizability of such amounts. Under U.S. GAAP, we are generally required to record U.S. deferred taxes on the anticipated repatriation of foreign income as the income is recognized for financial reporting purposes. An exception under certain accounting guidance permits us not to record a U.S. deferred tax liability for foreign income that we expect to reinvest in our foreign operations and for which remittance will be postponed indefinitely. If it becomes apparent that we cannot positively assert that some or all undistributed income will be reinvested indefinitely, the related deferred taxes are recorded in that period. In determining indefinite reinvestment, we regularly evaluate the capital needs of our domestic and foreign operations considering all available information, including operating and capital plans, regulatory capital requirements, parent company financing and cash flow needs, as well as the applicable tax laws to which our domestic and foreign subsidiaries are subject. Our estimates are based on our historical experience and our expectation of future performance. Our judgments and assumptions are subject to change given the inherent uncertainty in predicting future capital needs, which are impacted by such things as regulatory requirements, policyholder behavior, competitor pricing, new product introductions, and specific industry and market conditions. Similarly, under another exception to the recognition of deferred taxes under U.S. GAAP, we do not record deferred taxes on U.S. domestic subsidiary entities for the excess of the financial statement carrying amount over the tax basis in the stock of the subsidiary (commonly referred to as “outside basis difference”) if we have the ability under the tax law and intent to recover the basis difference in a tax free manner. Deferred taxes would be recognized in the period of a change to our ability or intent. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. In connection with the new mandatory repatriation provisions within the TCJA, we recorded a favorable adjustment to our deferred tax liability of $127 million on the outside basis difference of our foreign subsidiaries which reduced our liability to zero as of December 31, 2017. This favorable impact was partially offset by higher taxes of $63 million associated with accumulated post-1986 deferred foreign income that was not previously taxed (“transition tax”). Our companies have elected to file a single U.S. consolidated income tax return (the “life/non-life consolidated return”). All companies domesticated in the United States and our former Bermuda and Guernsey subsidiaries, which have elected to be taxed as U.S. domestic companies, are included in the life/non-life consolidated return as allowed by the tax law and regulations. We have a tax sharing agreement (the “life/non-life tax sharing agreement”) in place and all intercompany balances related to this agreement are settled at least annually. |
Foreign Currency Translation | v) Foreign Currency Translation The determination of the functional currency is made based on the appropriate economic and management indicators. The assets and liabilities of foreign operations are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. Translation adjustments are included as a separate component of accumulated other comprehensive income (loss). Revenues and expenses of the foreign operations are translated into U.S. dollars at the average rates of exchange during the period of the transaction. Gains and losses from foreign currency transactions are reported in income (loss) and have not been material in any years presented in our consolidated statements of income. |
Variable Interest Entities | w) Variable Interest Entities We are involved in certain entities that are considered VIEs as defined under U.S. GAAP, and, accordingly, we evaluate the VIE to determine whether we are the primary beneficiary and are required to consolidate the assets and liabilities of the entity. The primary beneficiary of a VIE is the enterprise that has the power to direct the activities of a VIE that most significantly impacts the VIE’s economic performance and has the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. The determination of the primary beneficiary for a VIE can be complex and requires management judgment regarding the expected results of the entity and how those results are absorbed by variable interest holders, as well as which party has the power to direct activities that most significantly impact the performance of the VIEs. Our primary involvement related to VIEs includes securitization transactions, certain investments and certain mortgage insurance policies. We have retained interests in VIEs where we are the servicer and transferor of certain assets that were sold to a newly created VIE. Additionally, for certain securitization transactions, we were the transferor of certain assets that were sold to a newly created VIE but did not retain any beneficial interest in the VIE other than acting as the servicer of the underlying assets. We hold investments in certain structures that are considered VIEs. Our investments represent beneficial interests that are primarily in the form of structured securities or alternative investments. Our involvement in these structures typically represent a passive investment in the returns generated by the VIE and typically do not result in having significant influence over the economic performance of the VIE. We also provide mortgage insurance on certain residential mortgage loans originated and securitized by third parties using VIEs to issue mortgage-backed securities. While we provide mortgage insurance on the underlying loans, we do not typically have any ongoing involvement with the VIE other than our mortgage insurance coverage and do not act in a servicing capacity for the underlying loans held by the VIE. See note 17 for additional information related to these consolidated entities. |
Accounting Changes | x) Accounting Changes Simplified Share-Based Payment Transactions 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. Transition to the Equity Method of Accounting On January 1, 2017, we adopted new accounting guidance related to transition to the equity method of accounting. The guidance eliminates the retrospective application of the equity method of accounting when obtaining significant influence over a previously held investment. The guidance requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. We did not have a significant impact from this guidance on our consolidated financial statements. Assessment of Contingent Put and Call Options 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. Derivative Contract Novations 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. Short-Duration Contracts On December 31, 2016, we adopted new disclosure requirements for short-duration insurance contracts. The new guidance requires additional disclosures on short-duration policy and contract claims liabilities for incurred and paid claims development, unpaid claims and claims frequency. This new guidance did not have any impact on our consolidated financial statements but did impact our disclosures. See note 10 for more information related to our short-duration contracts. Technical Corrections and Improvements In March 2016, the Financial Accounting Standards Board (“the FASB”) issued new guidance to remove inconsistencies as well as make technical clarifications and minor improvements intended to make it easier to understand and implement certain accounting guidance. Impacts of the new guidance for us includes: promoting consistent use of the terms “participating insurance” and “reinsurance recoverable,” removing the term “debt” from the master glossary; adding a reference to use when accounting for internal-use software licensed from third parties; clarifying that loans issued under the Federal Housing Administration and the Veterans Administration do not have to be fully insured by those programs to recognize profit using the full-accrual method; clarifying the difference between a “valuation approach” and a “valuation technique” when applying fair value guidance and require disclosure when there has been a change in either a valuation approach, a valuation technique, or both; clarifying that for an amount of an obligation under an arrangement to be considered fixed at the reporting date, the amount that must be fixed is not the amount that is the organization’s portion of the obligation, but, rather, is the obligation in its entirety; and adding guidance on the accounting for the sale of servicing rights when the transferor retains loans. Most of the amendments were adopted on December 31, 2016 and in some cases on January 1, 2017, using a prospective method. We did not have any significant impact from this guidance on our consolidated financial statements. Consolidation On January 1, 2016, we adopted new accounting guidance related to consolidation. The new guidance primarily impacts limited partnerships and similar legal entities, evaluation of fees paid to a decision maker as a variable interest, the effect of fee arrangements and related parties on the primary beneficiary determination and certain investment funds. The adoption of this new guidance did not have a significant impact on our consolidated financial statements. Debt Issuance Costs On December 31, 2015, we early adopted new accounting guidance related to the presentation of debt issuance costs. The new guidance requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance was applied on a retrospective basis. We also adopted new guidance that allows debt issuance costs related to revolving credit facilities to be presented as either an asset or as a direct deduction from the carrying amount of that debt liability. We elected to continue to present debt issuance costs related to revolving credit facilities in other assets in our consolidated balance sheet. See note 12 for more information related to our long-term debt and non-recourse funding obligations. Financial Assets and Liabilities of a Collateralized Financing Entity On January 1, 2015, we early adopted new accounting guidance related to measuring the financial assets and financial liabilities of a consolidated collateralized financing entity. The guidance addresses the accounting for the measurement difference between the fair value of financial assets and the fair value of financial liabilities of a collateralized financing entity. The new guidance provides an alternative whereby a reporting entity could measure the financial assets and financial liabilities of the collateralized financing entity in its consolidated financial statements using the more observable of the fair values. There was no impact on our consolidated financial statements. Repurchase Financings On January 1, 2015, we adopted new accounting guidance related to the accounting for repurchase-to-maturity transactions and repurchase financings. The new guidance changed the accounting for repurchase-to-maturity transactions and repurchase financing such that they were consistent with secured borrowing accounting. In addition, the guidance required new disclosures for all repurchase agreements and securities lending transactions which were effective beginning in the second quarter of 2015. We do not have repurchase-to-maturity transactions, but have repurchase agreements and securities lending transactions that are subject to additional disclosures. This new guidance did not have an impact on our consolidated financial statements but did impact our disclosures. Investments In Affordable Housing Projects On January 1, 2015, we adopted new accounting guidance related to the accounting for investments in affordable housing projects that qualify for the low-income housing tax credit. The new guidance permits reporting entities to make an accounting policy election to account for investments in qualified affordable housing projects by amortizing the initial cost of the investment in proportion to the tax benefits received and recognize the net investment performance as a component of income tax expense (called the proportional amortization method) if certain conditions are met. The new guidance requires use of the equity method or cost method for investments in qualified affordable housing projects not accounted for using the proportional amortization method. The adoption of this new guidance did not have a significant impact on our consolidated financial statements. Share-Based Payment Awards On January 1, 2015, we early adopted new accounting guidance related to the accounting for share-based payment awards when the terms of an award provide that a performance target can be achieved after the requisite service period. The guidance requires that such performance targets should not be reflected in estimating the grant-date fair value of an award, and that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. We have performance stock unit grants where awards for employees who are retirement eligible can vest on a pro-rata basis upon retirement even if retirement occurs before the performance target is achieved. There was no impact on our consolidated financial statements from the adoption of this accounting guidance. |
Accounting Pronouncements Not Yet Adopted | y) Accounting Pronouncements Not Yet Adopted In February 2018, the FASB issued new guidance on the tax effects currently recorded in accumulated other comprehensive income that do not reflect the new tax rate enacted under the TCJA, or “stranded tax effects.” Under current U.S. GAAP, deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates with the effect included in income (loss) from continuing operations in the period that the changes were enacted. This also includes situations in which the related tax effects were originally recognized in other comprehensive income as opposed to income (loss) from continuing operations. Under this new accounting guidance a reclassification from accumulated other comprehensive income to retained earnings, or a modified retrospective approach, is allowed for stranded tax effects that resulted from the TCJA. This new guidance is currently effective for us on January 1, 2019, with early adoption permitted. We are currently evaluating early adoption of this new accounting guidance. In August 2017, the FASB issued new guidance to amend the hedge accounting model 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. We adopted this new accounting guidance early on January 1, 2018 using the modified retrospective method and will record a previously recognized gain of $2 million to accumulated other comprehensive income with a corresponding decrease to retained earnings at adoption. 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. We adopted this new accounting guidance prospectively on January 1, 2018 and therefore, the guidance did not have any impact at adoption. In March 2017, the FASB issued new guidance shortening the amortization period of certain callable debt securities held 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 using the modified retrospective method, 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 scope and accounting for gains and losses from the derecognition of nonfinancial assets or an in substance nonfinancial asset that is not a business 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. We adopted this new accounting guidance on January 1, 2018 using the modified retrospective method, which did not have any significant impact on our consolidated financial statements at adoption. 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 plan to early adopt this new accounting guidance prospectively starting with our 2018 goodwill impairment test. In November 2016, the FASB issued new accounting guidance related to the classification and presentation of changes in restricted cash. The new guidance requires that changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents be shown in the statement of cash flows and requires additional disclosures related to restricted cash and restricted cash equivalents. We adopted this new accounting guidance retrospectively on January 1, 2018, and will modify the line item descriptions on our consolidated balance sheet and statement of cash flows in our first quarter 2018 consolidated financial statements filed on Form 10-Q. The other impacts from this new accounting guidance did not have a significant impact on our consolidated financial statements or disclosures. 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. We adopted this new accounting guidance on January 1, 2018 using the modified retrospective method, which did not have any significant impact on our consolidated financial statements or disclosures at adoption. In August 2016, the FASB issued new guidance related to the statement of cash flows classification of certain cash payments and cash receipts. The guidance will reduce diversity in practice related to eight specific cash flow issues. We adopted this new accounting guidance retrospectively on January 1, 2018. Upon adoption, we will reclassify a $20 million make-whole premium that was incurred in the first quarter of 2016 previously included in the operating activities section of the statement of cash flows, within the line item “other liabilities, policy and contract claims and other policy-related balances” to the financing activities section within the line item “repayment and repurchase of long-term debt” in our 2018 annual consolidated financial statements filed on Form 10-K. The reclassification will result in an increase in net cash used by financing activities and an increase in net cash from operating activities. The remaining specific cash flow issues did not have a significant impact on our consolidated financial statements. In June 2016, the FASB issued new guidance related to accounting for credit losses on financial instruments. The guidance requires that entities recognize an allowance equal to its estimate of lifetime expected credit losses and applies to most debt instruments not measured at fair value, which would primarily include our commercial mortgage loans and reinsurance receivables. The new guidance retains most of the existing impairment guidance for available-for-sale debt securities but amends the presentation of credit losses to be presented as an allowance as opposed to a write-down and permits the reversal of credit losses when reassessing changes in the credit losses each reporting period. The new guidance is effective for us on January 1, 2020, with early adoption permitted beginning January 1, 2019. Upon adoption, the modified retrospective method will be used and a cumulative effect adjustment in retained earnings as of the beginning of the year of adoption will be recorded. We are in process of evaluating the impact the guidance may have on our consolidated financial statements. In February 2016, the FASB issued new accounting guidance related to the accounting for leases. The new guidance generally requires lessees to recognize both a right-to-use asset and a corresponding liability on the balance sheet. The guidance is effective for us on January 1, 2019 using the modified retrospective method, with early adoption permitted. While we are still evaluating the full impact, at this time we do not expect any significant impact from this guidance on our consolidated financial statements. 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). The new guidance also clarifies that the need for a valuation allowance on a deferred tax asset related to available-for-sale securities should be evaluated in combination with other deferred tax assets. We adopted this new accounting guidance on January 1, 2018 using the modified retrospective method and will reclassify, before any adjustments for DAC and other intangible amortization and certain benefit reserves and taxes, $65 million of gains related to equity securities from accumulated other comprehensive income and $22 million of gains related to limited partnerships previously recorded at cost to cumulative effect of change in accounting within retained earnings. In May 2014, the FASB issued new accounting guidance related to revenue from contracts with customers, which was adopted by us on January 1, 2018 using the modified retrospective method. The key principle of the new guidance is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for such goods or services. Insurance contracts are specifically excluded from this new guidance. The FASB has clarified the scope that all of our insurance contracts, including mortgage insurance and investment contracts are excluded from the scope of this new guidance. We have evaluated our in scope revenues and, as of the adoption date, have no change in our revenue recognition timing or measurement. Accordingly, we did not have any significant impact to our consolidated financial statements upon adoption of this new accounting guidance. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31: (Amounts in millions, except per share amounts) 2017 2016 2015 Weighted-average common shares used in basic earnings (loss) per share calculations 499.0 498.3 497.4 Potentially dilutive securities: Stock options, restricted stock units and stock appreciation rights 2.4 — — Weighted-average common shares used in diluted earnings (loss) per share calculations (1) 501.4 498.3 497.4 Income (loss) from continuing operations: Income (loss) from continuing operations $ 936 $ (38 ) $ (6 ) Less: income from continuing operations attributable to noncontrolling interests 110 210 202 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders $ 826 $ (248 ) $ (208 ) Basic per share $ 1.66 $ (0.50 ) $ (0.42 ) Diluted per share $ 1.65 $ (0.50 ) $ (0.42 ) Loss from discontinued operations: Loss from discontinued operations, net of taxes $ (9 ) $ (29 ) $ (407 ) Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests — — — Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.’s common stockholders $ (9 ) $ (29 ) $ (407 ) Basic per share $ (0.02 ) $ (0.06 ) $ (0.82 ) Diluted per share $ (0.02 ) $ (0.06 ) $ (0.82 ) Net income (loss): Income (loss) from continuing operations $ 936 $ (38 ) $ (6 ) Loss from discontinued operations, net of taxes (9 ) (29 ) (407 ) Net income (loss) 927 (67 ) (413 ) Less: net income attributable to noncontrolling interests 110 210 202 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 817 $ (277 ) $ (615 ) Basic per share $ 1.64 $ (0.56 ) $ (1.24 ) Diluted per share $ 1.63 $ (0.56 ) $ (1.24 ) (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 years ended December 31, 2016 and 2015, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units (“RSUs”) and stock appreciation rights (“SARs”) of 2.0 million and 1.6 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 years ended December 31, 2016 and 2015, dilutive potential weighted-average common shares outstanding would have been 500.3 million and 499.0 million, respectively. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Investment Income | Sources of net investment income were as follows for the years ended December 31: (Amounts in millions) 2017 2016 2015 Fixed maturity securities—taxable $ 2,578 $ 2,565 $ 2,558 Fixed maturity securities—non-taxable 12 12 12 Commercial mortgage loans 306 318 337 Restricted commercial mortgage loans related to securitization entities (1) 9 10 14 Equity securities 36 28 15 Other invested assets (2) 157 141 135 Restricted other invested assets related to securitization entities (1) 1 3 5 Policy loans 153 146 137 Cash, cash equivalents and short-term investments 36 20 13 Gross investment income before expenses and fees 3,288 3,243 3,226 Expenses and fees (88 ) (84 ) (88 ) Net investment income $ 3,200 $ 3,159 $ 3,138 (1) See note 17 for additional information related to consolidated securitization entities. (2) Included in other invested assets was $2 million, $11 million and $9 million of net investment income related to trading securities for the years ended December 31, 2017, 2016 and 2015, respectively. |
Net Investment Gains (Losses) | The following table sets forth net investment gains (losses) for the years ended December 31: (Amounts in millions) 2017 2016 2015 Available-for-sale securities: Realized gains $ 229 $ 249 $ 102 Realized losses (66 ) (121 ) (82 ) Net realized gains (losses) on available-for-sale securities 163 128 20 Impairments: Total other-than-temporary impairments (6 ) (40 ) (28 ) Portion of other-than-temporary impairments included in other comprehensive income (loss) — — 1 Net other-than-temporary impairments (6 ) (40 ) (27 ) Trading securities 1 10 (7 ) Commercial mortgage loans 3 1 7 Net gains (losses) related to securitization entities (1) 7 (50 ) 5 Derivative instruments (2) 97 20 (76 ) Contingent consideration adjustment — (2 ) 2 Other — 5 1 Net investment gains (losses) $ 265 $ 72 $ (75 ) (1) See note 17 for additional information related to consolidated securitization entities. (2) 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 OCI as of and for the years ended December 31: (Amounts in millions) 2017 2016 2015 Beginning balance $ 42 $ 64 $ 83 Additions: Other-than-temporary impairments not previously recognized — 1 — Reductions: Securities sold, paid down or disposed (10 ) (23 ) (19 ) Ending balance $ 32 $ 42 $ 64 |
Unrealized Investment Gains and Losses | Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of December 31: (Amounts in millions) 2017 2016 2015 Net unrealized gains (losses) on investment securities: Fixed maturity securities $ 5,125 $ 3,656 $ 3,140 Equity securities 69 12 (10 ) Subtotal (1) 5,194 3,668 3,130 Adjustments to DAC, PVFP, sales inducements and benefit reserves (3,451 ) (1,611 ) (1,070 ) Income taxes, net (583 ) (711 ) (711 ) Net unrealized investment gains (losses) 1,160 1,346 1,349 Less: net unrealized investment gains (losses) attributable to noncontrolling interests 75 84 95 Net unrealized investment gains (losses) attributable to Genworth Financial, Inc. $ 1,085 $ 1,262 $ 1,254 |
Change in Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities Reported in Accumulated Other Comprehensive Income (Loss) | The change in net unrealized gains (losses) on available-for-sale investment securities reported in accumulated other comprehensive income (loss) was as follows as of and for the years ended December 31: (Amounts in millions) 2017 2016 2015 Beginning balance $ 1,262 $ 1,254 $ 2,453 Unrealized gains (losses) arising during the period: Unrealized gains (losses) on investment securities 1,683 626 (2,467 ) Adjustment to DAC (1) Adjustment to PVFP (1,000 (33 ) ) (499 (5 ) ) 177 89 Adjustment to sales inducements (4 ) (16 ) 30 Adjustment to benefit reserves (803 ) (21 ) 290 Provision for income taxes 73 (31 ) 663 Change in unrealized gains (losses) on investment securities (84 ) 54 (1,218 ) Reclassification adjustments to net investment (gains) losses, net of taxes of $55, $31 and $(2) (102 ) (57 ) 5 Change in net unrealized investment gains (losses) (186 ) (3 ) (1,213 ) Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests (9 ) (11 ) (14 ) Ending balance $ 1,085 $ 1,262 $ 1,254 |
Fixed Maturity and Equity Securities | As of December 31, 2017, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4,681 $ 870 $ — $ (3 ) $ — $ 5,548 State and political subdivisions 2,678 270 — (22 ) — 2,926 Non-U.S. government 2,147 106 — (20 ) — 2,233 U.S. corporate: Utilities 4,396 611 — (9 ) — 4,998 Energy 2,239 227 — (8 ) — 2,458 Finance and insurance 5,984 556 — (12 ) — 6,528 Consumer—non-cyclical 4,314 530 — (13 ) — 4,831 Technology and communications 2,665 192 — (12 ) — 2,845 Industrial 1,241 106 — (1 ) — 1,346 Capital goods 2,087 273 — (5 ) — 2,355 Consumer—cyclical 1,493 116 — (4 ) — 1,605 Transportation 1,160 134 — (3 ) — 1,291 Other 355 25 — (1 ) — 379 Total U.S. corporate 25,934 2,770 — (68 ) — 28,636 Non-U.S. corporate: Utilities 979 42 — (4 ) — 1,017 Energy 1,337 158 — (5 ) — 1,490 Finance and insurance 2,567 174 — (6 ) — 2,735 Consumer—non-cyclical 686 30 — (4 ) — 712 Technology and communications 913 71 — (2 ) — 982 Industrial 958 88 — (2 ) — 1,044 Capital goods 614 33 — (2 ) — 645 Consumer—cyclical 532 9 — (1 ) — 540 Transportation 656 68 — (3 ) — 721 Other 2,536 193 — (4 ) — 2,725 Total non-U.S. corporate 11,778 866 — (33 ) — 12,611 Residential mortgage-backed 3,831 223 14 (11 ) — 4,057 Commercial mortgage-backed 3,387 94 2 (37 ) — 3,446 Other asset-backed 3,056 17 1 (6 ) — 3,068 Total fixed maturity securities 57,492 5,216 17 (200 ) — 62,525 Equity securities 756 72 — (8 ) — 820 Total available-for-sale securities $ 58,248 $ 5,288 $ 17 $ (208 ) $ — $ 63,345 As of December 31, 2016, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows: Gross unrealized gains Gross unrealized losses (Amounts in millions) Amortized Not other-than- Other-than- Not other-than- Other-than- Fair Value Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,439 $ 647 $ — $ (50 ) $ — $ 6,036 State and political subdivisions 2,515 182 — (50 ) — 2,647 Non-U.S. government 2,024 101 — (18 ) — 2,107 U.S. corporate: Utilities 4,137 454 — (41 ) — 4,550 Energy 2,167 157 — (24 ) — 2,300 Finance and insurance 5,719 424 — (46 ) — 6,097 Consumer—non-cyclical 4,335 433 — (34 ) — 4,734 Technology and communications 2,473 157 — (32 ) — 2,598 Industrial 1,161 76 — (14 ) — 1,223 Capital goods 2,043 228 — (13 ) — 2,258 Consumer—cyclical 1,455 92 — (17 ) — 1,530 Transportation 1,121 86 — (17 ) — 1,190 Other 332 17 — (1 ) — 348 Total U.S. corporate 24,943 2,124 — (239 ) — 26,828 Non-U.S. corporate: Utilities 940 40 — (11 ) — 969 Energy 1,234 109 — (12 ) — 1,331 Finance and insurance 2,413 134 — (9 ) — 2,538 Consumer—non-cyclical 711 17 — (14 ) — 714 Technology and communications 953 44 — (10 ) — 987 Industrial 928 39 — (9 ) — 958 Capital goods 518 21 — (4 ) — 535 Consumer—cyclical 434 10 — (2 ) — 442 Transportation 619 65 — (7 ) — 677 Other 2,967 190 — (13 ) — 3,144 Total non-U.S. corporate 11,717 669 — (91 ) — 12,295 Residential mortgage-backed 4,122 259 10 (12 ) — 4,379 Commercial mortgage-backed 3,084 98 3 (56 ) — 3,129 Other asset-backed 3,170 15 1 (35 ) — 3,151 Total fixed maturity securities 57,014 4,095 14 (551 ) — 60,572 Equity securities 628 31 — (27 ) — 632 Total available-for-sale securities $ 57,642 $ 4,126 $ 14 $ (578 ) $ — $ 61,204 |
Maturity Distribution of Fixed Maturity Securities | The scheduled maturity distribution of fixed maturity securities as of December 31, 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 $ 1,723 $ 1,738 Due after one year through five years 10,835 11,197 Due after five years through ten years 12,326 12,865 Due after ten years 22,334 26,154 Subtotal 47,218 51,954 Residential mortgage-backed 3,831 4,057 Commercial mortgage-backed 3,387 3,446 Other asset-backed 3,056 3,068 Total $ 57,492 $ 62,525 |
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 December 31: 2017 (Amounts in millions) 31-60 days 61-90 days Greater than Total Current Total Property type: Retail $ 5 $ — $ — $ 5 $ 2,234 $ 2,239 Industrial — — — — 1,628 1,628 Office — — 6 6 1,504 1,510 Apartments — — — — 478 478 Mixed use — — — — 223 223 Other — — — — 275 275 Total recorded investment $ 5 $ — $ 6 $ 11 $ 6,342 $ 6,353 % of total commercial mortgage loans — % — % — % — % 100 % 100 % 2016 (Amounts in millions) 31-60 days 61-90 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 years ended December 31: (Amounts in millions) 2017 2016 2015 Allowance for credit losses: Beginning balance $ 12 $ 15 $ 22 Charge-offs — (6 ) (4 ) Recoveries — — — Provision (3 ) 3 (3 ) Ending balance $ 9 $ 12 $ 15 Ending allowance for individually impaired loans $ — $ — $ — Ending allowance for loans not individually impaired that were evaluated collectively for impairment $ 9 $ 12 $ 15 Recorded investment: Ending balance $ 6,353 $ 6,125 $ 6,187 Ending balance of individually impaired loans $ 6 $ 12 $ 19 Ending balance of loans not individually impaired that were evaluated collectively for impairment $ 6,347 $ 6,113 $ 6,168 |
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 December 31, 2017: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 78 $ (1 ) 21 $ 94 $ (2 ) 7 $ 172 $ (3 ) 28 State and political subdivisions 125 (1 ) 35 327 (21 ) 42 452 (22 ) 77 Non-U.S. government 583 (7 ) 26 239 (13 ) 20 822 (20 ) 46 U.S. corporate 1,871 (26 ) 296 1,347 (42 ) 190 3,218 (68 ) 486 Non-U.S. corporate 1,323 (12 ) 217 548 (21 ) 77 1,871 (33 ) 294 Residential mortgage-backed 707 (7 ) 81 130 (4 ) 46 837 (11 ) 127 Commercial mortgage-backed 476 (4 ) 69 646 (33 ) 90 1,122 (37 ) 159 Other asset-backed 853 (4 ) 160 230 (2 ) 57 1,083 (6 ) 217 Subtotal, fixed maturity securities 6,016 (62 ) 905 3,561 (138 ) 529 9,577 (200 ) 1,434 Equity securities 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total for securities in an unrealized loss position $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 % Below cost—fixed maturity securities: <20% Below cost $ 6,016 $ (62 ) 905 $ 3,555 $ (136 ) 526 $ 9,571 $ (198 ) 1,431 20%-50% Below cost — — — 6 (2 ) 3 6 (2 ) 3 Total fixed maturity securities 6,016 (62 ) 905 3,561 (138 ) 529 9,577 (200 ) 1,434 % Below cost—equity securities: <20% Below cost 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total equity securities 74 (3 ) 134 100 (5 ) 58 174 (8 ) 192 Total for securities in an unrealized loss position $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 Investment grade $ 5,867 $ (55 ) 898 $ 3,488 $ (135 ) 528 $ 9,355 $ (190 ) 1,426 Below investment grade 223 (10 ) 141 173 (8 ) 59 396 (18 ) 200 Total for securities in an unrealized loss position $ 6,090 $ (65 ) 1,039 $ 3,661 $ (143 ) 587 $ 9,751 $ (208 ) 1,626 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, 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 $ 181 $ (2 ) 33 $ 219 $ (7 ) 36 $ 400 $ (9 ) 69 Energy 106 (1 ) 22 140 (7 ) 15 246 (8 ) 37 Finance and insurance 626 (6 ) 91 222 (6 ) 30 848 (12 ) 121 Consumer—non-cyclical 299 (7 ) 46 221 (6 ) 31 520 (13 ) 77 Technology and communications 217 (4 ) 32 210 (8 ) 29 427 (12 ) 61 Industrial — — — 62 (1 ) 9 62 (1 ) 9 Capital goods 176 (2 ) 25 81 (3 ) 14 257 (5 ) 39 Consumer—cyclical 137 (2 ) 24 95 (2 ) 13 232 (4 ) 37 Transportation 117 (1 ) 21 97 (2 ) 13 214 (3 ) 34 Other 12 (1 ) 2 — — — 12 (1 ) 2 Subtotal, U.S. corporate securities 1,871 (26 ) 296 1,347 (42 ) 190 3,218 (68 ) 486 Non-U.S. corporate: Utilities 113 (1 ) 23 72 (3 ) 8 185 (4 ) 31 Energy 118 (2 ) 19 74 (3 ) 12 192 (5 ) 31 Finance and insurance 347 (3 ) 56 117 (3 ) 19 464 (6 ) 75 Consumer—non-cyclical 69 (1 ) 11 60 (3 ) 6 129 (4 ) 17 Technology and communications 107 (1 ) 18 30 (1 ) 6 137 (2 ) 24 Industrial 52 — 9 38 (2 ) 5 90 (2 ) 14 Capital goods 54 — 11 46 (2 ) 3 100 (2 ) 14 Consumer—cyclical 131 (1 ) 21 — — — 131 (1 ) 21 Transportation 47 (1 ) 7 64 (2 ) 8 111 (3 ) 15 Other 285 (2 ) 42 47 (2 ) 10 332 (4 ) 52 Subtotal, non-U.S. corporate securities 1,323 (12 ) 217 548 (21 ) 77 1,871 (33 ) 294 Total for corporate securities in an unrealized loss position $ 3,194 $ (38 ) 513 $ 1,895 $ (63 ) 267 $ 5,089 $ (101 ) 780 The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2016: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 1,074 $ (50 ) 37 $ — $ — — $ 1,074 $ (50 ) 37 State and political subdivisions 644 (32 ) 109 142 (18 ) 12 786 (50 ) 121 Non-U.S. government 497 (18 ) 51 — — — 497 (18 ) 51 U.S. corporate 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. corporate 2,257 (66 ) 330 408 (25 ) 57 2,665 (91 ) 387 Residential mortgage-backed 725 (11 ) 100 58 (1 ) 35 783 (12 ) 135 Commercial mortgage-backed 1,091 (55 ) 168 25 (1 ) 9 1,116 (56 ) 177 Other asset-backed 1,069 (13 ) 184 328 (22 ) 68 1,397 (35 ) 252 Subtotal, fixed maturity securities 12,578 (435 ) 1,690 1,623 (116 ) 275 14,201 (551 ) 1,965 Equity securities 119 (9 ) 182 114 (18 ) 47 233 (27 ) 229 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 % Below cost—fixed maturity securities: <20% Below cost $ 12,578 $ (435 ) 1,690 $ 1,543 $ (90 ) 267 $ 14,121 $ (525 ) 1,957 20%-50% Below cost — — — 80 (26 ) 8 80 (26 ) 8 Total fixed maturity securities 12,578 (435 ) 1,690 1,623 (116 ) 275 14,201 (551 ) 1,965 % Below cost—equity securities: <20% Below cost 118 (8 ) 167 101 (14 ) 38 219 (22 ) 205 20%-50% Below cost 1 (1 ) 15 13 (4 ) 9 14 (5 ) 24 Total equity securities 119 (9 ) 182 114 (18 ) 47 233 (27 ) 229 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 Investment grade $ 12,339 $ (432 ) 1,657 $ 1,354 $ (108 ) 250 $ 13,693 $ (540 ) 1,907 Below investment grade 358 (12 ) 215 383 (26 ) 72 741 (38 ) 287 Total for securities in an unrealized loss position $ 12,697 $ (444 ) 1,872 $ 1,737 $ (134 ) 322 $ 14,434 $ (578 ) 2,194 The following table presents the gross unrealized losses and fair values of our corporate securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, based on industry, as of December 31, 2016: Less than 12 months 12 months or more Total (Dollar amounts in millions) Fair Gross Number of Fair Gross Number of Fair Gross Number of Description of Securities U.S. corporate: Utilities $ 855 $ (39 ) 130 $ 21 $ (2 ) 5 $ 876 $ (41 ) 135 Energy 190 (5 ) 30 276 (19 ) 38 466 (24 ) 68 Finance and insurance 1,438 (38 ) 177 113 (8 ) 15 1,551 (46 ) 192 Consumer—non-cyclical 921 (34 ) 117 — — — 921 (34 ) 117 Technology and communications 507 (22 ) 70 126 (10 ) 17 633 (32 ) 87 Industrial 226 (7 ) 38 77 (7 ) 10 303 (14 ) 48 Capital goods 322 (12 ) 50 6 (1 ) 1 328 (13 ) 51 Consumer—cyclical 431 (16 ) 56 26 (1 ) 6 457 (17 ) 62 Transportation 302 (16 ) 41 17 (1 ) 2 319 (17 ) 43 Other 29 (1 ) 2 — — — 29 (1 ) 2 Subtotal, U.S. corporate securities 5,221 (190 ) 711 662 (49 ) 94 5,883 (239 ) 805 Non-U.S. corporate: Utilities 240 (10 ) 32 14 (1 ) 1 254 (11 ) 33 Energy 105 (3 ) 18 91 (9 ) 16 196 (12 ) 34 Finance and insurance 474 (8 ) 79 71 (1 ) 16 545 (9 ) 95 Consumer—non-cyclical 308 (14 ) 30 — — — 308 (14 ) 30 Technology and communications 232 (9 ) 34 28 (1 ) 2 260 (10 ) 36 Industrial 165 (5 ) 21 91 (4 ) 10 256 (9 ) 31 Capital goods 104 (2 ) 14 28 (2 ) 2 132 (4 ) 16 Consumer—cyclical 90 (2 ) 17 — — — 90 (2 ) 17 Transportation 106 (5 ) 16 25 (2 ) 2 131 (7 ) 18 Other 433 (8 ) 69 60 (5 ) 8 493 (13 ) 77 Subtotal, non-U.S. corporate securities 2,257 (66 ) 330 408 (25 ) 57 2,665 (91 ) 387 Total for corporate securities in an unrealized loss position $ 7,478 $ (256 ) 1,041 $ 1,070 $ (74 ) 151 $ 8,548 $ (330 ) 1,192 |
Loan To Value Ratio | |
Commercial Mortgage Loans by Property Type | The following tables set forth the loan-to-value of commercial mortgage loans by property type as of December 31: 2017 (Amounts in millions) 0%-50% 51%-60% 61%-75% 76%-100% Greater (1) Total Property type: Retail $ 919 $ 500 $ 820 $ — $ — $ 2,239 Industrial 731 363 532 2 — 1,628 Office 575 386 534 13 2 1,510 Apartments 226 101 146 5 — 478 Mixed use 99 59 65 — — 223 Other 68 28 179 — — 275 Total recorded investment $ 2,618 $ 1,437 $ 2,276 $ 20 $ 2 $ 6,353 % of total 41 % 23 % 36 % — % — % 100 % Weighted-average debt service coverage ratio 2.65 1.85 1.62 0.62 1.04 2.09 (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 102%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. 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 borrowers continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Debt Service Coverage Ratio | |
Commercial Mortgage Loans by Property Type | The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of December 31: 2017 (Amounts in millions) Less 1.00-1.25 1.26-1.50 1.51-2.00 Greater Total Property type: Retail $ 43 $ 235 $ 301 $ 1,020 $ 640 $ 2,239 Industrial 23 61 174 700 670 1,628 Office 51 61 157 569 672 1,510 Apartments — 17 77 191 193 478 Mixed use 2 4 26 86 105 223 Other 1 149 14 71 40 275 Total recorded investment $ 120 $ 527 $ 749 $ 2,637 $ 2,320 $ 6,353 % of total 2 % 8 % 12 % 42 % 36 % 100 % Weighted-average loan-to-value 55 % 60 % 58 % 58 % 42 % 52 % 2016 (Amounts in millions) Less 1.00-1.25 1.26-1.50 1.51-2.00 Greater Total Property type: Retail $ 67 $ 204 $ 425 $ 899 $ 583 $ 2,178 Industrial 71 113 236 599 514 1,533 Office 91 117 172 609 441 1,430 Apartments 19 22 44 217 153 455 Mixed use 2 9 19 128 87 245 Other 1 148 60 55 20 284 Total recorded investment $ 251 $ 613 $ 956 $ 2,507 $ 1,798 $ 6,125 % of total 4 % 10 % 16 % 41 % 29 % 100 % Weighted-average loan-to-value 61 % 60 % 59 % 58 % 45 % 55 % |
Other Geographic Area | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | 2017 2016 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,239 35 % $ 2,178 36 % Industrial 1,628 26 1,533 25 Office 1,510 24 1,430 23 Apartments 478 8 455 7 Mixed use 223 3 245 4 Other 275 4 284 5 Subtotal 6,353 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (9 ) (12 ) Total $ 6,341 $ 6,111 2017 2016 (Amounts in millions) Carrying % of Carrying % of Geographic region: South Atlantic $ 1,625 26 % $ 1,546 25 % Pacific 1,622 26 1,567 27 Middle Atlantic 927 14 915 15 Mountain 556 9 554 9 West North Central 446 7 435 7 East North Central 394 6 388 6 West South Central 336 5 311 5 New England 239 4 206 3 East South Central 208 3 203 3 Subtotal 6,353 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (9 ) (12 ) Total $ 6,341 $ 6,111 |
Real Estate Properties | Commercial Mortgage Loan | |
Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans | 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 December 31: 2017 2016 (Amounts in millions) Carrying % of Carrying % of Property type: Retail $ 2,239 35 % $ 2,178 36 % Industrial 1,628 26 1,533 25 Office 1,510 24 1,430 23 Apartments 478 8 455 7 Mixed use 223 3 245 4 Other 275 4 284 5 Subtotal 6,353 100 % 6,125 100 % Unamortized balance of loan origination fees and costs (3 ) (2 ) Allowance for losses (9 ) (12 ) Total $ 6,341 $ 6,111 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule Of Positions in Derivative Instruments | The following table sets forth our positions in derivative instruments as of December 31: Derivative assets Derivative liabilities Fair value Fair value (Amounts in millions) Balance sheet classification 2017 (6) 2016 Balance sheet classification 2017 (6) 2016 Derivatives designated as hedges Cash flow hedges: Interest rate swaps Other invested assets $74 $237 Other liabilities $25 $203 Foreign currency swaps Other invested assets 1 4 Other liabilities — — Total cash flow hedges 75 241 25 203 Total derivatives designated as hedges 75 241 25 203 Derivatives not designated as hedges Interest rate swaps Other invested assets — 359 Other liabilities — 146 Foreign currency swaps Other invested assets 11 — Other liabilities — 5 Credit default swaps related to securitization entities (1) Restricted other invested assets — — Other liabilities — 1 Equity index options Other invested assets 80 72 Other liabilities — — Financial futures Other invested assets — — Other liabilities — — Equity return swaps Other invested assets — 1 Other liabilities 2 1 Other foreign currency contracts Other invested assets 110 35 Other liabilities 20 27 GMWB embedded derivatives Reinsurance recoverable (2) 14 16 Policyholder account balances (3) 250 303 Fixed index annuity embedded derivatives Other assets — — Policyholder account balances (4) 419 344 Indexed universal life embedded derivatives Reinsurance recoverable — — Policyholder account balances (5) 14 11 Total derivatives not designated as hedges 215 483 705 838 Total derivatives $290 $724 $730 $1,041 (1) See note 17 for additional information related to consolidated securitization entities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. (3) Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (4) Represents the embedded derivatives associated with our fixed index annuity liabilities. (5) Represents the embedded derivatives associated with our indexed universal life liabilities. (6) 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 $473 million and $206 million, respectively, in 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/ December 31, Derivatives designated as hedges Cash flow hedges: Interest rate swaps Notional $ 11,570 $ 391 $ (806 ) $ 11,155 Foreign currency swaps Notional 22 — — 22 Total cash flow hedges 11,592 391 (806 ) 11,177 Total derivatives designated as hedges 11,592 391 (806 ) 11,177 Derivatives not designated as hedges Interest rate swaps Notional 4,679 — — 4,679 Foreign currency swaps Notional 201 167 (19 ) 349 Credit default swaps Notional 39 — — 39 Credit default swaps related to securitization entities (1) Notional 312 — (312 ) — Equity index options Notional 2,396 2,982 (2,958 ) 2,420 Financial futures Notional 1,398 5,639 (5,754 ) 1,283 Equity return swaps Notional 165 265 (334 ) 96 Other foreign currency contracts Notional 3,130 2,384 (2,250 ) 3,264 Total derivatives not designated as hedges 12,320 11,437 (11,627 ) 12,130 Total derivatives $ 23,912 $ 11,828 $ (12,433 ) $ 23,307 (1) See note 17 for additional information related to consolidated securitization entities. (Number of policies) Measurement December 31, Additions Maturities/ December 31, Derivatives not designated as hedges GMWB embedded derivatives Policies 33,238 — (2,788 ) 30,450 Fixed index annuity embedded derivatives Policies 17,549 — (482 ) 17,067 Indexed universal life embedded derivatives Policies 1,074 1 (90 ) 985 |
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges | The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the year ended December 31, 2017: (Amounts in millions) Gain (loss) recognized Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 96 $ 131 Net investment income $ 2 Net investment gains (losses) Interest rate swaps hedging assets — 8 Net investment gains (losses) — Net investment gains (losses) Foreign currency swaps (2 ) — Net investment income — Net investment gains (losses) Total $ 94 $ 139 $ 2 (1) Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the year ended December 31, 2016: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 198 $ 112 Net investment income $ 3 Net investment gains (losses) Interest rate swaps hedging assets — 2 Net investment gains (losses) — Net investment gains (losses) Interest rate swaps hedging liabilities (5 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps (5 ) 2 Net investment income — Net investment gains (losses) Inflation indexed swaps — 7 Net investment gains (losses) — Net investment gains (losses) Foreign currency swaps (4 ) — Net investment income — Net investment gains (losses) Foreign currency swaps — — Net investment gains (losses) 5 Net investment gains (losses) Total $ 184 $ 123 $ 8 (1) Represents ineffective portion of cash flow hedges, as there were no amounts excluded from the measurement of effectiveness. The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the year ended December 31, 2015: (Amounts in millions) Gain (loss) Gain (loss) Classification of gain Gain (loss) (1) Classification of gain Interest rate swaps hedging assets $ 78 $ 85 Net investment income $ — Net investment gains (losses) Interest rate swaps hedging liabilities (10 ) — Interest expense — Net investment gains (losses) Inflation indexed swaps 9 — Net investment income — Net investment gains (losses) Foreign currency swaps 2 — Net investment income — Net investment gains (losses) Forward bond purchase commitments — 1 Net investment income — Net investment gains (losses) Forward bond purchase commitments — 32 Net investment gains (losses) — Net investment gains (losses) Total $ 79 $ 118 $ — (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 table provides 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 years ended December 31: (Amounts in millions) 2017 2016 2015 Derivatives qualifying as effective accounting hedges as of January 1 $ 2,085 $ 2,045 $ 2,070 Current period increases (decreases) in fair value, net of deferred taxes of $(56), $(64) and $(29) 38 120 50 Reclassification to net (income) loss, net of deferred taxes of $81, $43 and $43 (58 ) (80 ) (75 ) Derivatives qualifying as effective accounting hedges as of December 31 $ 2,065 $ 2,085 $ 2,045 |
Schedule of Pre-Tax Gain Income (Loss) Recognized in Net Income (Loss) for Effects of Derivatives Not Designated as Hedges | The following table provides the pre-tax gain income (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the years ended December 31: (Amounts in millions) 2017 2016 2015 Classification of gain (loss) Interest rate swaps $ 4 $ 12 $ (11 ) Net investment gains (losses) Interest rate swaps related to securitization entities (1) — (10 ) (4 ) Net investment gains (losses) Foreign currency swaps 14 4 (22 ) Net investment gains (losses) Credit default swaps — 1 1 Net investment gains (losses) Credit default swaps related to securitization entities (1) 7 18 7 Net investment gains (losses) Equity index options 57 10 (25 ) Net investment gains (losses) Financial futures (43 ) (111 ) (34 ) Net investment gains (losses) Equity return swaps (22 ) (1 ) (3 ) Net investment gains (losses) Forward bond purchase commitments — — 2 Net investment gains (losses) Other foreign currency contracts 75 24 10 Net investment gains (losses) GMWB embedded derivatives 78 76 (25 ) Net investment gains (losses) Fixed index annuity embedded derivatives (84 ) (22 ) (7 ) Net investment gains (losses) Indexed universal life embedded derivatives 8 10 6 Net investment gains (losses) Total derivatives not designated as hedges $ 94 $ 11 $ (105 ) (1) See note 17 for additional information related to consolidated securitization entities. |
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 December 31: 2017 2016 (Amounts in millions) Derivatives (1) Derivatives Net Derivatives (1) Derivatives (2) Net Amounts presented in the balance sheet: Gross amounts recognized $ 278 $ 47 $ 231 $ 724 $ 387 $ 337 Gross amounts offset in the balance sheet — — — — — — Net amounts presented in the balance sheet 278 47 231 724 387 337 Gross amounts not offset in the balance sheet: Financial instruments (3) (23 ) (23 ) — (172 ) (172 ) — Collateral received (170 ) — (170 ) (467 ) — (467 ) Collateral pledged — (288 ) 288 — (557 ) 557 Over collateralization — 264 (264 ) 1 344 (343 ) Net amount $ 85 $ — $ 85 $ 86 $ 2 $ 84 (1) Included $2 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2017 and 2016, respectively. (2) Included $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 December 31, 2016. (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 December 31: 2017 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 December 31: 2017 2016 (Amounts in millions) Notional Assets Liabilities Notional Assets Liabilities Customized credit default swap index tranches related to securitization entities: (1) Portion backing third-party borrowings maturing 2017 (2) $ — $ — $ — $ 12 $ — $ — Portion backing our interest maturing 2017 (3) — — — 300 — 1 Total customized credit default swap index tranches related to securitization entities — — — 312 — 1 Total credit default swaps on index tranches $ — $ — $ — $ 312 $ — $ 1 (1) See note 17 for additional information related to consolidated securitization entities. (2) Original notional value was $39 million. (3) Original notional value was $300 million. |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Activity Impacting Deferred Acquisition Costs | The following table presents the activity impacting DAC as of and for the years ended December 31: (Amounts in millions) 2017 2016 2015 Unamortized balance as of January 1 $ 4,241 $ 4,569 $ 5,200 Impact of foreign currency translation 12 3 (23 ) Costs deferred 88 150 295 Amortization, net of interest accretion (342 ) (481 ) (448 ) Impairment — — (455 ) Unamortized balance as of December 31 3,999 4,241 4,569 Accumulated effect of net unrealized investment (gains) losses (1,670 ) (670 ) (171 ) Balance as of December 31 $ 2,329 $ 3,571 $ 4,398 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets | The following table presents our intangible assets as of December 31: 2017 2016 (Amounts in millions) Gross Accumulated Gross Accumulated PVFP $ 2,046 $ (1,959 ) $ 2,079 $ (1,924 ) Capitalized software 475 (384 ) 447 (352 ) Deferred sales inducements to contractholders 280 (221 ) 275 (199 ) Other 130 (81 ) 61 (53 ) Total $ 2,931 $ (2,645 ) $ 2,862 $ (2,528 ) |
Activity in Present Value of Future Profits | The following table presents the activity in PVFP as of and for the years ended December 31: (Amounts in millions) 2017 2016 2015 Unamortized balance as of January 1 $ 222 $ 205 $ 229 Interest accreted at 5.38%, 5.15% and 6.45% 11 11 14 Amortization (46 ) 6 (38 ) Unamortized balance as of December 31 187 222 205 Accumulated effect of net unrealized investment (gains) losses (100 ) (67 ) (62 ) Balance as of December 31 $ 87 $ 155 $ 143 |
Percentage of Current PVFP Balance Estimated to be Amortized | The percentage of the December 31, 2017 PVFP balance net of interest accretion, before the effect of unrealized investment gains or losses, estimated to be amortized over each of the next five years is as follows: 2018 7.0% 2019 8.6% 2020 7.9% 2021 7.1% 2022 6.6% |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Domestic Life Insurance In-Force | The following table sets forth net domestic life insurance in-force as of December 31: (Amounts in millions) 2017 2016 2015 Direct life insurance in-force $ 625,710 $ 658,931 $ 686,446 Amounts assumed from other companies 793 861 899 Amounts ceded to other companies (1) (562,463 ) (491,466 ) (411,340 ) Net life insurance in-force $ 64,040 $ 168,326 $ 276,005 Percentage of amount assumed to net 1 % — % — % (1) Includes amounts accounted for under the deposit method. |
Schedule of Effects of Reinsurance on Premiums Written and Earned | The following table sets forth the effects of reinsurance on premiums written and earned for the years ended December 31: Written Earned (Amounts in millions) 2017 2016 2015 2017 2016 2015 Direct: Life insurance $ 929 $ 977 $ 1,030 $ 929 $ 978 $ 1,030 Accident and health insurance 2,732 2,786 2,764 2,756 2,816 2,778 Mortgage insurance 1,571 1,641 1,754 1,154 1,561 1,514 Total direct 5,232 5,404 5,548 4,839 5,355 5,322 Assumed: Life insurance 38 35 34 38 35 34 Accident and health insurance 337 331 342 341 335 347 Mortgage insurance 7 6 10 2 12 22 Total assumed 382 372 386 381 382 403 Ceded: Life insurance (538 ) (856 ) (372 ) (538 ) (856 ) (372 ) Accident and health insurance (596 ) (629 ) (682 ) (604 ) (638 ) (688 ) Mortgage insurance (74 ) (83 ) (86 ) (74 ) (83 ) (86 ) Total ceded (1,208 ) (1,568 ) (1,140 ) (1,216 ) (1,577 ) (1,146 ) Net premiums $ 4,406 $ 4,208 $ 4,794 $ 4,004 $ 4,160 $ 4,579 Percentage of amount assumed to net 10 % 9 % 9 % |
Insurance Reserves (Tables)
Insurance Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Recorded Liabilities and Major Assumptions Underlying Future Policy Benefits | The following table sets forth our recorded liabilities and the major assumptions underlying our future policy benefits as of December 31: (Amounts in millions) Mortality/ morbidity assumption Interest rate assumption 2017 2016 Long-term care insurance contracts (a) 3.75% - 7.50% $ 23,332 $ 21,590 Structured settlements with life contingencies (b) 1.00% - 8.00% 8,724 8,858 Annuity contracts with life contingencies (b) 1.00% - 8.00% 3,723 3,822 Traditional life insurance contracts (c) 3.00% - 7.50% 2,387 2,506 Supplementary contracts with life contingencies (b) 1.00% - 8.00% 303 284 Accident and health insurance contracts (d) 3.50% - 6.00% 3 3 Total future policy benefits $ 38,472 $ 37,063 (a) The 1983 Individual Annuitant Mortality Table or the 2000 U.S. Annuity Table, or the 1983 Group Annuitant Mortality Table or the 1994 Group Annuitant Mortality Table and company experience. (b) Assumptions for limited-payment contracts come from either the U.S. Population Table, the 1983 Group Annuitant Mortality Table, the 1983 Individual Annuitant Mortality Table, the Annuity 2000 Mortality Table or the 2012 Individual Annuity Reserving Table. (c) Principally modifications based on company experience of the Society of Actuaries 1965-70 or 1975-80 Select and the Ultimate Tables, the 1941, 1958, 1980 and 2001 Commissioner’s Standard Ordinary Tables, the 1980 Commissioner’s Extended Term table and (IA) Standard Table 1996 (modified). (d) The 1958 and 1980 Commissioner’s Standard Ordinary Tables, or the 2000 U.S. Annuity Table, or the 1983 Group Annuitant Mortality or the 2008 Valuation Basic Table. |
Recorded Liabilities for Policyholder Account Balances | The following table sets forth our recorded liabilities for policyholder account balances as of December 31: (Amounts in millions) 2017 2016 Annuity contracts $ 12,272 $ 13,566 GICs, funding agreements and FABNs 260 560 Structured settlements without life contingencies 1,451 1,576 Supplementary contracts without life contingencies 677 719 Other 15 16 Total investment contracts 14,675 16,437 Universal and term universal life insurance contracts 9,520 9,225 Total policyholder account balances $ 24,195 $ 25,662 |
Information about Variable Annuity Products with Death and Living Benefit Guarantees | The following table sets forth information about our variable annuity products with death and living benefit guarantees as of December 31: (Dollar amounts in millions) 2017 2016 Account values with death benefit guarantees (net of reinsurance): Standard death benefits (return of net deposits) account value $ 2,365 $ 2,364 Net amount at risk $ 2 $ 4 Average attained age of contractholders 74 73 Enhanced death benefits (ratchet, rollup) account value $ 2,489 $ 2,611 Net amount at risk $ 114 $ 157 Average attained age of contractholders 74 74 Account values with living benefit guarantees: GMWBs $ 2,671 $ 2,781 Guaranteed annuitization benefits $ 1,198 $ 1,177 |
Account Balances of Variable Annuity Contract with Death or Living Benefit Guarantees Invested in Separate Account Investment Options | Account balances of variable annuity contracts with death or living benefit guarantees were invested in separate account investment options as follows as of December 31: (Amounts in millions) 2017 2016 Balanced funds $ 2,998 $ 3,046 Equity funds 1,262 1,271 Bond funds 498 550 Money market funds 85 87 Total $ 4,843 $ 4,954 |
Liability for Policy and Cont45
Liability for Policy and Contract Claims (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Liability for Policy and Contract Claims | The following table sets forth our liability for policy and contract claims as of December 31: (Amounts in millions) 2017 2016 Liability for policy and contract claims for insurance lines other than short-duration contracts: Long-term care insurance $ 8,548 $ 8,034 Life insurance 244 226 Fixed annuities 24 16 Runoff 11 15 Total 8,827 8,291 Liability for policy and contract claims, net of reinsurance, related to short-duration contracts: U.S. Mortgage Insurance segment 454 633 Australia Mortgage Insurance segment 218 211 Canada Mortgage Insurance segment 87 112 Other mortgage insurance businesses 7 7 Total 766 963 Reinsurance recoverable on unpaid claims related to short-duration contracts: U.S. Mortgage Insurance segment 1 2 Total 1 2 Total liability for policy and contract claims $ 9,594 $ 9,256 |
Schedule of Incurred Claims Net of Reinsurance, Cummulative Number of Reported Delinquencies, Total Incurred But Not Reported | The following table sets forth information about incurred claims, net of reinsurance, as well as cumulative number of reported delinquencies and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our U.S. Mortgage Insurance segment as of December 31, 2017. The information about the incurred claims development for the years ended December 31, 2008 to 2016 and the historical reported delinquencies as of December 31, 2016 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses, net of reinsurance Total of Incurred-But- Not-Reported liabilities including expected development on reported claims as of December 31, 2017 Number of reported delinquencies (2) (Dollar amounts in millions) For the years ended December 31, Accident year (1) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 943 1,041 1,211 1,339 $ 1,353 $ 1,347 $ 1,376 $ 1,385 $ 1,391 $ 1,396 $ 1 133,491 2009 — 1,341 1,697 1,762 1,755 1,752 1,782 1,792 1,799 1,802 1 151,732 2010 — — 977 1,157 1,139 1,146 1,165 1,173 1,173 1,174 1 90,231 2011 — — — 910 931 913 929 938 939 939 1 68,984 2012 — — — — 718 675 671 673 671 668 — 48,170 2013 — — — — — 475 407 392 387 384 — 33,934 2014 — — — — — — 328 288 269 261 — 26,080 2015 — — — — — — — 235 208 187 — 20,915 2016 — — — — — — — — 198 160 1 17,423 2017 — — — — — — — — — 171 19 15,097 Total incurred $ 7,142 (1) Represents the year in which first monthly mortgage payments have been missed by the borrower. (2) Represents reported and outstanding delinquencies less actual cures as of December 31 for each respective accident year. The following table sets forth information about incurred claims, as well as cumulative number of reported delinquencies and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our Canada Mortgage Insurance segment as of December 31, 2017. The information about the incurred claims development for the years ended December 31, 2008 to 2016 and the historical reported delinquencies as of December 31, 2016 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses Total of Incurred-But- Not-Reported liabilities including expected development on reported claims as of December 31, 2017 (3) Number of reported delinquencies (4) (Dollar amounts in millions) (1) For the years ended December 31, Accident year (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 108 $ 149 $ 152 $ 155 $ 158 $ 158 $ 158 $ 158 $ 158 $ 158 $ — 6,138 2009 — 151 169 191 194 196 196 195 195 195 — 6,702 2010 — — 135 149 167 169 168 167 168 167 — 6,601 2011 — — — 133 149 151 151 150 150 149 — 5,707 2012 — — — — 111 110 109 108 108 108 — 5,316 2013 — — — — — 102 98 97 97 96 — 4,949 2014 — — — — — — 91 87 85 84 — 4,948 2015 — — — — — — — 101 91 87 — 4,626 2016 — — — — — — — — 119 103 — 5,133 2017 — — — — — — — — — 78 26 3,785 Total incurred $ 1,225 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. (2) Represents the year in which first monthly mortgage payments have been missed by the borrower. (3) Incurred-but-not-reported liabilities exist only relative to the year 2017 as lenders are required to report losses after three consecutive monthly mortgage payments have been missed by the borrower. (4) Represents reported delinquencies as of December 31 for each respective accident year. The following table sets forth information about incurred claims, as well as cumulative number of reported delinquencies and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our Australia Mortgage Insurance segment as of December 31, 2017. The information about the incurred claims development for the years ended December 31, 2008 to 2016 and the historical reported delinquencies as of December 31, 2016 and prior are presented as supplementary information. Incurred claims and allocated claim adjustment expenses Total of Incurred-But- Not-Reported liabilities including expected development on reported claims as of December 31, 2017 Number of reported delinquencies (3) (Dollar amounts in millions) (1) For the years ended December 31, Accident year (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 74 $ 158 $ 153 $ 155 $ 172 $ 176 $ 179 $ 177 $ 178 $ 178 $ — 9,197 2009 — 71 109 101 122 127 130 133 135 136 — 8,868 2010 — — 74 111 138 140 142 143 143 145 — 8,683 2011 — — — 98 142 132 127 127 127 128 — 9,321 2012 — — — — 88 108 90 88 86 87 — 7,595 2013 — — — — — 82 84 69 63 62 — 7,087 2014 — — — — — — 80 92 76 71 — 7,463 2015 — — — — — — — 88 119 96 1 7,606 2016 — — — — — — — — 106 141 14 8,020 2017 — — — — — — — — — 95 36 4,001 Total incurred $ 1,139 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. (2) The accident year is estimated by allowing an additional five months for development from the time the first monthly mortgage payments have been missed by the borrower. (3) Represents reported and outstanding delinquencies less actual cures as of December 31 for each respective accident year. |
Schedule of Average Payout of Incurred Claims by Age | The following table sets forth our average payout of incurred claims by age for our U.S. Mortgage Insurance segment as of December 31, 2017: Average annual percentage payout of incurred claims, net of reinsurance, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 8.9 % 39.2 % 24.3 % 10.9 % 6.2 % 4.1 % 3.1 % 2.6 % 1.8 % 1.6 % The following table sets forth our average payout of incurred claims by age for our Canada Mortgage Insurance segment as of December 31, 2017: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 17.9 % 62.4 % 16.6 % 2.5 % 0.1 % 0.2 % (0.3 )% 0.1 % — % — % The following table sets forth our average payout of incurred claims by age for our Australia Mortgage Insurance segment as of December 31, 2017: Average annual percentage payout of incurred claims, by age Years 1 2 3 4 5 6 7 8 9 10 Percentage of payout 5.4 % 34.0 % 32.5 % 16.2 % 7.1 % 2.7 % 1.6 % 0.8 % 0.7 % 0.4 % |
Schedule of Paid Claims Deveopment, Net of Reinsurance | The following table sets forth paid claims development, net of reinsurance, for our U.S. mortgage insurance segment for the year ended December 31, 2017. The information about paid claims development for the years ended December 31, 2008 to 2016, is presented as supplementary information. (Amounts in millions) Cumulative paid claims and allocated claim adjustment expenses, net of Accident year (1) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 66 $ 572 $ 917 $ 1,046 $ 1,145 $ 1,217 $ 1,271 $ 1,322 $ 1,353 $ 1,375 2009 — 285 940 1,245 1,434 1,556 1,638 1,709 1,753 1,777 2010 — — 140 567 844 973 1,049 1,109 1,139 1,158 2011 — — — 65 497 722 816 874 906 927 2012 — — — — 92 391 532 602 634 650 2013 — — — — — 44 202 297 340 362 2014 — — — — — — 22 127 195 233 2015 — — — — — — — 12 85 145 2016 — — — — — — — — 10 64 2017 — — — — — — — — — 6 Total paid $ 6,697 Total incurred $ 7,142 Total paid 6,697 All outstanding liabilities before 2008, net of reinsurance 9 Liability for policy and contract claims, net of reinsurance $ 454 (1) Represents the year in which first monthly mortgage payments have been missed by the borrower. The following table sets forth paid claims development, for our Canada Mortgage Insurance segment for the year ended December 31, 2017. The information about paid claims development for the years ended December 31, 2008 to 2016, is presented as supplementary information. (Amounts in millions) (1) Cumulative paid claims and allocated claim adjustment expenses Accident year (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 8 $ 107 $ 148 $ 158 $ 160 $ 163 $ 163 $ 163 $ 163 $ 163 2009 — 24 127 185 193 195 195 194 194 194 2010 — — 27 122 164 168 167 167 167 167 2011 — — — 37 133 150 150 150 149 148 2012 — — — — 24 99 106 107 107 107 2013 — — — — — 25 87 95 97 96 2014 — — — — — — 17 73 82 84 2015 — — — — — — — 19 74 86 2016 — — — — — — — — 17 81 2017 — — — — — — — — — 13 Total paid $ 1,139 Total incurred $ 1,225 Total paid 1,139 Other (3) 1 All outstanding liabilities before 2008 — Liability for policy and contract claims $ 87 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. (2) Represents the year in which first monthly mortgage payments have been missed by the borrower. (3) Includes the portion of the borrower recovery accrual that corresponds to loss reserves and is recognized as a reduction to losses incurred that we anticipate to receive in the future once the claims have been settled, and foreign currency translation. The following table sets forth paid claims development, for our Australia Mortgage Insurance segment for the year ended December 31, 2017. The information about paid claims development for the years ended December 31, 2008 to December 31, 2016, is presented as supplementary information: (Amounts in millions) (1) Cumulative paid claims and allocated claim adjustment expenses Accident year (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Unaudited 2008 $ 3 $ 51 $ 118 $ 141 $ 167 $ 174 $ 176 $ 177 $ 178 $ 180 2009 — 2 30 61 108 124 128 132 134 136 2010 — — 2 25 104 128 136 139 141 143 2011 — — — 2 64 106 119 123 126 128 2012 — — — — 5 55 73 80 83 86 2013 — — — — — 4 29 47 54 60 2014 — — — — — — 3 27 47 63 2015 — — — — — — — 3 30 69 2016 — — — — — — — — 3 54 2017 — — — — — — — — — 7 Total paid $ 926 Total incurred $ 1,139 Total paid 926 Other (3) 5 All outstanding liabilities before 2008 — Liability for policy and contract claims $ 218 (1) Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. (2) The accident year is estimated by allowing an additional five months for development from the time the first monthly mortgage payments have been missed by the borrower. (3) Includes foreign currency translation. |
Long-term Care Insurance | |
Changes in Liability for Policy and Contract Claims | The following table sets forth changes in the liability for policy and contract claims for our long-term care insurance business for the dates indicated: (Amounts in millions) 2017 2016 2015 Beginning balance as of January 1 $ 8,034 $ 6,749 $ 6,216 Less reinsurance recoverables (2,310 ) (2,055 ) (1,926 ) Net balance as of January 1 5,724 4,694 4,290 Incurred related to insured events of: Current year 2,234 2,066 1,655 Prior years (183 ) 377 39 Total incurred 2,051 2,443 1,694 Paid related to insured events of: Current year (176 ) (166 ) (151 ) Prior years (1,644 ) (1,506 ) (1,371 ) Total paid (1,820 ) (1,672 ) (1,522 ) Interest on liability for policy and contract claims 301 259 232 Net balance as of December 31 6,256 5,724 4,694 Add reinsurance recoverables 2,292 2,310 2,055 Ending balance as of December 31 $ 8,548 $ 8,034 $ 6,749 |
Borrowings and Other Financin46
Borrowings and Other Financings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Long Term Borrowings | The following table sets forth total long-term borrowings as of December 31: (Amounts in millions) 2017 2016 Genworth Holdings 6.52% Senior Notes, due 2018 $ 597 $ 597 7.70% Senior Notes, due 2020 397 397 7.20% Senior Notes, due 2021 381 381 7.625% Senior Notes, due 2021 704 704 4.90% Senior Notes, due 2023 399 399 4.80% Senior Notes, due 2024 400 400 6.50% Senior Notes, due 2034 297 297 6.15% Fixed-to-Floating Rate Junior Subordinated Notes, due 2066 598 598 Subtotal 3,773 3,773 Bond consent fees (33 ) (39 ) Deferred borrowing charges (16 ) (18 ) Total Genworth Holdings 3,724 3,716 Canada 5.68% Senior Notes, due 2020 219 205 4.24% Senior Notes, due 2024 128 119 Subtotal 347 324 Deferred borrowing charges (1 ) (2 ) Total Canada 346 322 Australia Floating Rate Junior Notes, due 2025 156 145 Deferred borrowing charges (2 ) (3 ) Total Australia 154 142 Total $ 4,224 $ 4,180 |
Principal Amounts of Long Term Debt Including Senior Notes and Non-Recourse Funding by Maturity | Principal amounts under our long-term borrowings (including senior notes) and non-recourse funding obligations by maturity were as follows as of December 31, 2017: (Amounts in millions) Amount 2018 $ 597 2019 — 2020 616 2021 1,085 2022 and thereafter (1) 2,293 Total $ 4,591 (1) Repayment of $315 million of our non-recourse funding obligations requires regulatory approval. |
Remaining Contractual Maturity of Agreements | The following tables present the remaining contractual maturity of the agreements as of December 31: 2017 (Amounts in millions) Overnight and continuous Up to 30 days 31 - 90 days Greater than Total Repurchase agreements: U.S. government, agencies and government-sponsored enterprises $ — $ — $ — $ — $ — Securities lending: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises 72 — — — 72 Non-U.S. government 50 — — — 50 U.S. corporate 85 — — — 85 Non-U.S. corporate 56 — — — 56 Subtotal, fixed maturity securities 263 — — — 263 Equity securities 5 — — — 5 Total securities lending 268 — — — 268 Total repurchase agreements and securities lending $ 268 $ — $ — $ — $ 268 2016 (Amounts in millions) Overnight and Up to 30 days 31 - 90 days Greater than 90 days Total Repurchase agreements: U.S. government, agencies and government-sponsored enterprises $ — $ — $ 16 $ 59 $ 75 Securities lending: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises 224 — — — 224 Non-U.S. government 34 — — — 34 U.S. corporate 159 — — — 159 Non-U.S. corporate 110 — — — 110 Subtotal, fixed maturity securities 527 — — — 527 Equity securities 7 — — — 7 Total securities lending 534 — — — 534 Total repurchase agreements and securities lending $ 534 $ — $ 16 $ 59 $ 609 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Components of Income (Loss) before Income Taxes | Income (loss) from continuing operations before income taxes included the following components for the years ended December 31: (Amounts in millions) 2017 2016 2015 Domestic $ 397 $ (283 ) $ (468 ) Foreign 332 603 453 Income (loss) from continuing operations before income taxes $ 729 $ 320 $ (15 ) |
Components of Income Tax (Benefit) Expense | The total provision (benefit) for income taxes was as follows for the years ended December 31: (Amounts in millions) 2017 2016 2015 Current federal income taxes $ (32 ) $ 55 $ 1 Deferred federal income taxes (274 ) 115 (199 ) Total federal income taxes (306 ) 170 (198 ) Current state income taxes 1 1 — Deferred state income taxes 6 2 4 Total state income taxes 7 3 4 Current foreign income taxes 192 183 186 Deferred foreign income taxes (100 ) 2 (1 ) Total foreign income taxes 92 185 185 Total provision (benefit) for income taxes $ (207 ) $ 358 $ (9 ) |
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 years ended December 31: (Amounts in millions) 2017 2016 2015 Pre-tax income (loss) $ 729 $ 320 $ (15 ) Statutory U.S. federal income tax rate $ 255 35.0 % $ 112 35.0 % $ (5 ) 35.0 % Increase (reduction) in rate resulting from: State income tax, net of federal income tax effect 5 0.7 3 1.0 2 (18.0 ) Tax favored investments (3 ) (0.4 ) (4 ) (1.3 ) (14 ) 93.3 Effect of foreign operations — — (5 ) (1.6 ) (20 ) 129.2 Net impact of repatriating foreign earnings — — 9 2.8 — — Non-deductible expenses 2 0.3 1 0.3 (3 ) 22.0 Stock-based compensation 3 0.4 5 1.6 5 (31.7 ) Loss on sale of business — — (1 ) (0.3 ) — — Other, net 7 0.9 5 1.6 1 (6.8 ) Valuation allowance (258 ) (35.4 ) 233 72.8 25 (165.0 ) TCJA, impact from change in tax rate (154 ) (21.1 ) — — — — TCJA, impact on foreign operations (64 ) (8.8 ) — — — — Effective rate $ (207 ) (28.4 )% $ 358 111.9 % $ (9 ) 58.0 % |
Components of Net Deferred Income Tax Liability | The components of the net deferred income tax liability were as follows as of December 31: (Amounts in millions) 2017 2016 Assets: Foreign tax credit carryforwards $ 603 $ 690 Net operating loss carryforwards 499 906 State income taxes 347 329 Accrued commission and general expenses 127 208 Investments 27 — Insurance reserves 146 — Other 34 58 Gross deferred income tax assets 1,783 2,191 Valuation allowance (363 ) (601 ) Total deferred income tax assets 1,420 1,590 Liabilities: Investments — 2 Net unrealized gains on investment securities 325 644 Net unrealized gains on derivatives 28 18 Insurance reserves transition adjustment 134 — Insurance reserves — 58 DAC 396 748 PVFP and other intangibles 38 55 Investment in foreign subsidiaries — 48 Other 22 70 Total deferred income tax liabilities 943 1,643 Net deferred income tax asset (liability) $ 477 $ (53 ) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows: (Amounts in millions) 2017 2016 2015 Balance as of January 1 $ 34 $ 28 $ 49 Tax positions related to the current period: Gross additions 2 6 5 Gross reductions (1 ) — — Tax positions related to the prior years: Gross additions 13 — — Gross reductions (6 ) — (26 ) Balance as of December 31 $ 42 $ 34 $ 28 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Option Weighted-Average Grant-Date Fair Value Information and Related Valuation Assumptions, Excluding Exchanged Grants and Performance-Accelerated Options | The following table contains the SAR valuation assumptions input into the Black-Scholes Model and the related weighted-average grant-date fair value information derived from the model for the year ended December 31, 2015: Awards granted (in thousands) 1,378 Maximum share value at exercise of SARs $ 75.00 Fair value per options and SARs $ 3.43 Valuation assumptions: Expected term (years) 6.0 Expected volatility 66.0 % Expected dividend yield — % Risk-free interest rate 1.9 % |
Summary of Cash Award Activity | The following table summarizes cash award activity as of December 31, 2017 and 2016: Time-based cash awards Performance-based cash awards (Awards in millions) Number of awards Number of awards Balance as of January 1, 2016 9 — Granted 14 4 Vested (4 ) — Forfeited (3 ) — Balance as of January 1, 2017 16 4 Granted 13 4 Vested (9 ) — Forfeited (2 ) — Balance as of December 31, 2017 18 8 |
Rollforward of Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding | The following table summarizes stock option activity as of December 31, 2017 and 2016: (Shares in thousands) Shares subject to option Weighted-average exercise price Balance as of January 1, 2016 2,140 $ 12.34 Granted — $ — Exercised (46 ) $ 2.46 Expired and forfeited (280 ) $ 17.24 Balance as of January 1, 2017 1,814 $ 11.83 Granted — $ — Exercised (8 ) $ 2.46 Expired and forfeited (226 ) $ 15.32 Balance as of December 31, 2017 1,580 $ 11.38 Exercisable as of December 31, 2017 1,580 $ 11.38 |
Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding as of December 31, 2017: Outstanding and Exercisable Exercise price range Shares in thousands Average life (1) Average exercise price $2.00 - $2.46 (2) 308 1.09 $ 2.43 $7.80 - $12.75 233 0.63 $ 8.07 $14.18 956 1.98 $ 14.18 $14.92 - $22.80 83 0.47 $ 21.62 1,580 $ 11.38 (1) Average contractual life remaining in years. (2) These shares have an aggregate intrinsic value of less than $1 million each for total options outstanding and exercisable. |
Status of Our Other Equity-Based Awards | The following tables summarize the status of our other equity-based awards as of December 31, 2017 and 2016: RSUs PSUs DSUs SARs (Awards in thousands) Number of awards Weighted- average grant date fair value Number of awards Weighted- average fair value Number of awards Weighted- average fair value Number of awards Weighted- average grant date fair value Balance as of January 1, 2016 3,255 $ 9.22 710 $ 10.63 880 $ 8.18 12,148 $ 3.56 Granted 1,230 $ 2.04 2,730 $ 2.81 284 $ 2.14 — $ — Exercised (818 ) $ 10.13 — $ — — $ — — $ — Terminated (414 ) $ 9.70 (4 ) $ 15.23 — $ — (1,308 ) $ 3.72 Balance as of January 1, 2017 3,253 $ 6.19 3,436 $ 4.41 1,164 $ 6.72 10,840 $ 3.54 Granted 1,414 $ 4.01 1,414 $ 4.01 295 $ 2.67 — $ — Exercised (918 ) $ 6.65 — $ — (200 ) $ 7.25 — $ — Terminated (98 ) $ 8.61 (266 ) $ 15.33 — $ — (539 ) $ 5.21 Balance as of December 31, 2017 3,651 $ 5.14 4,584 $ 3.65 1,259 $ 5.70 10,301 $ 3.45 |
Genworth Canada | |
Status of Our Other Equity-Based Awards | The following table summarizes the status of Genworth Canada’s stock option activity and other equity-based awards as of December 31, 2017 and 2016: Stock options RSUs and PSUs DSUs Executive deferred stock units (“EDSUs”) (Shares and awards in thousands) Shares subject to option Number of awards Number of awards Number of awards Balance as of January 1, 2016 955 194 54 31 Granted 95 126 12 14 Exercised (65 ) (77 ) (2 ) — Terminated (28 ) (8 ) — — Balance as of January 1, 2017 957 235 64 45 Granted 70 97 10 2 Exercised (192 ) (92 ) — — Terminated (10 ) (21 ) — — Balance as of December 31, 2017 825 219 74 47 |
Genworth Australia | |
Status of Our Other Equity-Based Awards | The following table summarizes the status of Genworth Australia’s restricted share rights and long-term incentive plan as of December 31, 2017 and 2016: Restricted share rights Long-term Incentive Plan (Shares in thousands) Shares subject to option Shares subject to option Balance as of January 1, 2016 2,774 526 Granted 280 742 Exercised (894 ) — Terminated (884 ) (348 ) Balance as of January 1, 2017 1,276 920 Granted 382 721 Exercised (633 ) — Terminated (157 ) (154 ) Balance as of December 31, 2017 868 1,487 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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: 2017 Notional amount Carrying amount Fair value (Amounts in millions) Total Level 1 Level 2 Level 3 Assets: Commercial mortgage loans $ (1) $ 6,341 $ 6,573 $ — $ — $ 6,573 Restricted commercial mortgage loans (2) (1) 107 116 — — 116 Other invested assets (1) 277 299 — — 299 Liabilities: Long-term borrowings (3) (1) 4,224 3,725 — 3,566 159 Non-recourse funding obligations (3) (1) 310 201 — — 201 Borrowings related to securitization entities (2) (1) 40 41 — 41 — Investment contracts (1) 14,700 15,123 — 5 15,118 Other firm commitments: Commitments to fund limited partnerships 317 — — — — — Commitments to fund bank loan investments 18 — — — — — Ordinary course of business lending commitments 168 — — — — — 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 (2) (1) 129 141 — — 141 Other invested assets (1) 459 473 — 352 121 Liabilities: Long-term borrowings (3) (1) 4,180 3,582 — 3,440 142 Non-recourse funding obligations (3) (1) 310 186 — — 186 Borrowings related to securitization entities (2) (1) 62 65 — 65 — Investment contracts (1) 16,437 16,993 — 5 16,988 Other firm commitments: Commitments to fund limited partnerships 201 — — — — — Ordinary course of business lending commitments 73 — — — — — (1) These financial instruments do not have notional amounts. (2) See note 17 for additional information related to consolidated securitization entities. (3) See note 12 for additional information related to borrowings. |
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 December 31, 2017: (Amounts in millions) Fair value Primary methodologies Significant inputs U.S. government, agencies and government-sponsored enterprises $5,547 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 $2,877 Multi-dimensional attribute-based modeling systems, third-party pricing vendors Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes Non-U.S. government $2,217 Matrix pricing, spread priced to benchmark curves, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources U.S. corporate $25,414 Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports Non-U.S. corporate $10,665 Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources Residential mortgage-backed $3,980 OAS-based models, To Be Announced pricing models, single factor binomial models, internally priced Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports Commercial mortgage-backed $3,416 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 $2,831 Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers, internal models Spreads to daily updated swaps curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports • Internal models: |
Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis | The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated: 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 5,548 $ — $ 5,547 $ 1 State and political subdivisions 2,926 — 2,889 37 Non-U.S. government 2,233 — 2,233 — U.S. corporate: Utilities 4,998 — 4,424 574 Energy 2,458 — 2,311 147 Finance and insurance 6,528 — 5,902 626 Consumer—non-cyclical 4,831 — 4,750 81 Technology and communications 2,845 — 2,772 73 Industrial 1,346 — 1,307 39 Capital goods 2,355 — 2,234 121 Consumer—cyclical 1,605 — 1,343 262 Transportation 1,291 — 1,231 60 Other 379 — 210 169 Total U.S. corporate 28,636 — 26,484 2,152 Non-U.S. corporate: Utilities 1,017 — 674 343 Energy 1,490 — 1,314 176 Finance and insurance 2,735 — 2,574 161 Consumer—non-cyclical 712 — 588 124 Technology and communications 982 — 953 29 Industrial 1,044 — 928 116 Capital goods 645 — 454 191 Consumer—cyclical 540 — 486 54 Transportation 721 — 551 170 Other 2,725 — 2,673 52 Total non-U.S. corporate 12,611 — 11,195 1,416 Residential mortgage-backed 4,057 — 3,980 77 Commercial mortgage-backed 3,446 — 3,416 30 Other asset-backed 3,068 — 2,831 237 Total fixed maturity securities 62,525 — 58,575 3,950 Equity securities 820 696 80 44 Other invested assets: Derivative assets: Interest rate swaps 74 — 74 — Foreign currency swaps 12 — 12 — Equity index options 80 — — 80 Other foreign currency contracts 110 — 110 — Total derivative assets 276 — 196 80 Securities lending collateral 268 — 268 — Short-term investments 902 107 795 — Total other invested assets 1,446 107 1,259 80 Reinsurance recoverable (1) 14 — — 14 Separate account assets 7,230 7,230 — — Total assets $ 72,035 $ 8,033 $ 59,914 $ 4,088 (1) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. 2016 (Amounts in millions) Total Level 1 Level 2 Level 3 Assets Investments: Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 6,036 $ — $ 6,034 $ 2 State and political subdivisions 2,647 — 2,610 37 Non-U.S. government 2,107 — 2,107 — U.S. corporate: Utilities 4,550 — 3,974 576 Energy 2,300 — 2,090 210 Finance and insurance 6,097 — 5,311 786 Consumer—non-cyclical 4,734 — 4,613 121 Technology and communications 2,598 — 2,544 54 Industrial 1,223 — 1,175 48 Capital goods 2,258 — 2,106 152 Consumer—cyclical 1,530 — 1,272 258 Transportation 1,190 — 1,051 139 Other 348 — 205 143 Total U.S. corporate 26,828 — 24,341 2,487 Non-U.S. corporate: Utilities 969 — 583 386 Energy 1,331 — 1,125 206 Finance and insurance 2,538 — 2,356 182 Consumer—non-cyclical 714 — 575 139 Technology and communications 987 — 920 67 Industrial 958 — 849 109 Capital goods 535 — 366 169 Consumer—cyclical 442 — 373 69 Transportation 677 — 496 181 Other 3,144 — 3,119 25 Total non-U.S. corporate 12,295 — 10,762 1,533 Residential mortgage-backed 4,379 — 4,336 43 Commercial mortgage-backed 3,129 — 3,075 54 Other asset-backed 3,151 — 3,006 145 Total fixed maturity securities 60,572 — 56,271 4,301 Equity securities 632 551 34 47 Other invested assets: Trading securities 259 — 259 — Derivative assets: Interest rate swaps 596 — 596 — Foreign currency swaps 4 — 4 — Equity index options 72 — — 72 Equity return swaps 1 — 1 — Other foreign currency contracts 35 — 32 3 Total derivative assets 708 — 633 75 Securities lending collateral 534 — 534 — Total other invested assets 1,501 — 1,426 75 Restricted other invested assets related to securitization entities (1) 312 — 181 131 Reinsurance recoverable (2) 16 — — 16 Separate account assets 7,299 7,299 — — Total assets $ 70,332 $ 7,850 $ 57,912 $ 4,570 (1) See note 17 for additional information related to consolidated securitization entities. (2) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value | The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated: Beginning 2017 Total realized and Transfer Level 3 (1) Transfer Level 3 (1) Ending 2017 Total gains still held (Amounts in millions) Included Included in OCI Purchases Sales Issuances Settlements Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 2 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 1 $ — State and political subdivisions 37 3 (3 ) — — — — — — 37 3 U.S. corporate: Utilities 576 — 24 76 — — (11 ) 30 (121 ) 574 — Energy 210 — 5 10 (31 ) — (32 ) 1 (16 ) 147 (1 ) Finance and insurance 786 20 5 79 (31 ) — (206 ) 8 (35 ) 626 11 Consumer—non-cyclical 121 — 2 4 — — (8 ) — (38 ) 81 — Technology and communications 54 3 7 31 — — (1 ) — (21 ) 73 3 Industrial 48 1 (1 ) 13 — — (8 ) — (14 ) 39 — Capital goods 152 1 3 7 — — (5 ) — (37 ) 121 1 Consumer—cyclical 258 — 9 12 — — (15 ) — (2 ) 262 — Transportation 139 16 (5 ) — — — (48 ) — (42 ) 60 1 Other 143 — 2 — (5 ) — (8 ) 37 — 169 — Total U.S. corporate 2,487 41 51 232 (67 ) — (342 ) 76 (326 ) 2,152 15 Non-U.S. corporate: Utilities 386 — 3 30 — — — — (76 ) 343 — Energy 206 — 5 — (1 ) — (1 ) — (33 ) 176 — Finance and insurance 182 5 10 5 — — (32 ) — (9 ) 161 3 Consumer—non-cyclical 139 — 2 5 — — (22 ) — — 124 — Technology and communications 67 1 1 — (21 ) — (19 ) — — 29 — Industrial 109 — 3 13 — — — 14 (23 ) 116 — Capital goods 169 — 3 52 — — (25 ) — (8 ) 191 — Consumer—cyclical 69 — — — — — (17 ) 2 — 54 — Transportation 181 1 2 6 (10 ) — (10 ) 11 (11 ) 170 — Other 25 (2 ) 2 15 (2 ) — — 25 (11 ) 52 — Total non-U.S. corporate 1,533 5 31 126 (34 ) — (126 ) 52 (171 ) 1,416 3 Residential mortgage-backed 43 — — 35 — — (3 ) 26 (24 ) 77 — Commercial mortgage-backed 54 (2 ) 4 31 (9 ) — — — (48 ) 30 — Other asset-backed 145 (8 ) 11 133 (35 ) — (23 ) 69 (55 ) 237 — Total fixed maturity securities 4,301 39 94 557 (145 ) — (495 ) 223 (624 ) 3,950 21 Equity securities 47 — — 1 (1 ) — — — (3 ) 44 — Other invested assets: Derivative assets: Credit default swaps — — — — — — — — — — — Equity index options 72 57 — 72 — — (121 ) — — 80 36 Other foreign currency contracts 3 (3 ) — — — — — — — — (2 ) Total derivative assets 75 54 — 72 — — (121 ) — — 80 34 Total other invested assets 75 54 — 72 — — (121 ) — — 80 34 Restricted other invested assets related to securitization entities (2) 131 — — — (131 ) — — — — — — Reinsurance recoverable (3) 16 (4 ) — — — 2 — — — 14 (4 ) Total Level 3 assets $ 4,570 $ 89 $ 94 $ 630 $ (277 ) $ 2 $ (616 ) $ 223 $ (627 ) $ 4,088 $ 51 (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) See note 17 for additional information related to consolidated securitization entities. (3) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning 2016 Total realized and Transfer Level 3 (1) Transfer Level 3 (1) Ending 2016 Total gains still held (Amounts in millions) Included Included in OCI Purchases Sales Issuances Settlements Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 3 $ — $ — $ — $ — $ — $ (1 ) $ — $ — 2 $ — State and political subdivisions 35 2 — 7 — — — — (7 ) 37 2 U.S. corporate: Utilities 449 1 1 149 (6 ) — (21 ) 73 (70 ) 576 — Energy 253 — (2 ) 10 — — (11 ) 7 (47 ) 210 — Finance and insurance 715 16 9 69 (14 ) — (63 ) 72 (18 ) 786 15 Consumer—non-cyclical 109 — 3 30 (18 ) — (3 ) — — 121 — Technology and communications 35 3 (3 ) 30 — — — — (11 ) 54 3 Industrial 61 5 2 — — — (32 ) 12 — 48 — Capital goods 180 1 (2 ) 30 (10 ) — — — (47 ) 152 1 Consumer—cyclical 239 4 (1 ) 68 (5 ) — (44 ) 19 (22 ) 258 — Transportation 106 2 (1 ) 53 — — (26 ) 5 — 139 2 Other 182 1 (2 ) — — — (8 ) 16 (46 ) 143 1 Total U.S. corporate 2,329 33 4 439 (53 ) — (208 ) 204 (261 ) 2,487 22 Non-U.S. corporate: Utilities 287 — (7 ) 126 (5 ) — (51 ) 46 (10 ) 386 — Energy 252 — 30 8 (27 ) — (31 ) — (26 ) 206 — Finance and insurance 191 3 (2 ) 11 (1 ) — — — (20 ) 182 3 Consumer—non-cyclical 169 2 5 3 (3 ) — (49 ) 12 — 139 — Technology and communications 62 — 3 18 (16 ) — — — — 67 — Industrial 84 — 4 17 (21 ) — — 25 — 109 — Capital goods 213 1 3 — — — (15 ) — (33 ) 169 1 Consumer—cyclical 71 — — — — — (2 ) — — 69 — Transportation 144 1 — 12 — — (15 ) 39 — 181 — Other 72 (2 ) 3 — (13 ) — (7 ) 10 (38 ) 25 (2 ) Total non-U.S. corporate 1,545 5 39 195 (86 ) — (170 ) 132 (127 ) 1,533 2 Residential mortgage-backed 116 — 1 51 (45 ) — (14 ) 22 (88 ) 43 — Commercial mortgage-backed 10 — (7 ) 24 — — (4 ) 37 (6 ) 54 — Other asset-backed 1,142 (17 ) 3 16 (26 ) — (26 ) 66 (1,013 ) 145 (16 ) Total fixed maturity securities 5,180 23 40 732 (210 ) — (423 ) 461 (1,502 ) 4,301 10 Equity securities 38 — — 13 (4 ) — — — — 47 — Other invested assets: Derivative assets: Credit default swaps 1 — — — — — (1 ) — — — — Equity index options 30 10 — 76 — — (44 ) — — 72 2 Other foreign currency contracts 3 (1 ) — 2 — — (1 ) — — 3 (1 ) Total derivative assets 34 9 — 78 — — (46 ) — — 75 1 Total other invested assets 34 9 — 78 — — (46 ) — — 75 1 Restricted other invested assets related to securitization entities (2) 232 (55 ) — — — — (46 ) — — 131 9 Reinsurance recoverable (3) 17 (3 ) — — — 2 — — — 16 (3 ) Total Level 3 assets $ 5,501 $ (26 ) $ 40 $ 823 $ (214 ) $ 2 $ (515 ) $ 461 $ (1,502 ) $ 4,570 $ 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. Most significantly, the majority of the transfers out of Level 3 related to a reclassification of collateralized loan obligation securities previously valued using a broker priced source to now being valued using third-party pricing services. (2) See note 17 for additional information related to consolidated securitization entities. (3) Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. Beginning 2015 Total realized and Transfer Level 3 (1) Transfer Level 3 (1) Ending 2015 Total gains still held (Amounts in millions) Included Included in OCI Purchases Sales Issuances Settlements Fixed maturity securities: U.S. government, agencies and government-sponsored enterprises $ 4 $ — $ — $ — $ — $ — $ (1 ) $ — $ — $ 3 $ — State and political subdivisions 30 3 7 5 — — — — (10 ) 35 3 Non-U.S. government 7 — (1 ) — — — (1 ) — (5 ) — — U.S. corporate: Utilities 444 — (14 ) 67 — — (16 ) 10 (42 ) 449 — Energy 285 — (13 ) 4 (4 ) — (11 ) — (8 ) 253 — Finance and insurance 616 16 (28 ) 90 — — (33 ) 97 (43 ) 715 14 Consumer—non-cyclical 140 2 (3 ) 29 (9 ) — (40 ) — (10 ) 109 — Technology and communications 45 3 (2 ) — — — — — (11 ) 35 3 Industrial 36 — (3 ) 28 — — — — — 61 — Capital goods 166 — (6 ) 30 (3 ) — (1 ) — (6 ) 180 — Consumer—cyclical 363 1 (8 ) 39 — — (52 ) 11 (115 ) 239 — Transportation 153 1 (5 ) 7 — — (31 ) — (19 ) 106 1 Other 171 1 (2 ) — — — (7 ) 19 — 182 1 Total U.S. corporate 2,419 24 (84 ) 294 (16 ) — (191 ) 137 (254 ) 2,329 19 Non-U.S. corporate: Utilities 328 — (4 ) 18 — — (46 ) — (9 ) 287 — Energy 324 (1 ) (21 ) 15 (24 ) — (41 ) — — 252 (1 ) Finance and insurance 221 5 (6 ) 21 — — (26 ) — (24 ) 191 3 Consumer—non-cyclical 197 — (1 ) 15 — — (41 ) — (1 ) 169 — Technology and communications 42 — (4 ) 24 — — — — — 62 — Industrial 131 — (4 ) 7 — — (18 ) 1 (33 ) 84 — Capital goods 237 — (7 ) — — — (17 ) — — 213 — Consumer—cyclical 89 — (2 ) — — — — 15 (31 ) 71 — Transportation 154 — (2 ) — — — (8 ) — — 144 — Other 81 — 2 — — — (11 ) — — 72 — Total non-U.S. corporate 1,804 4 (49 ) 100 (24 ) — (208 ) 16 (98 ) 1,545 2 Residential mortgage-backed 65 — (1 ) 58 — — (10 ) 76 (72 ) 116 — Commercial mortgage-backed 5 — (1 ) 9 — — (2 ) 13 (14 ) 10 — Other asset-backed 1,420 2 2 152 (190 ) — (267 ) 164 (141 ) 1,142 — Total fixed maturity securities 5,754 33 (127 ) 618 (230 ) — (680 ) 406 (594 ) 5,180 24 Equity securities 34 — — 1 (6 ) — — 9 — 38 — Other invested assets: Derivative assets: Credit default swaps 3 1 — — — — (3 ) — — 1 1 Equity index options 17 (25 ) — 38 — — — — — 30 (3 ) Other foreign currency contracts — (2 ) — 5 — — — — — 3 (1 ) Total derivative assets 20 (26 ) — 43 — — (3 ) — — 34 (3 ) Total other invested assets 20 (26 ) — 43 — — (3 ) — — 34 (3 ) Restricted other invested assets related to securitization entities (2) 230 2 — — — — — — — 232 2 Reinsurance recoverable (3) 13 1 — — — 3 — — — 17 1 Total Level 3 assets $ 6,051 $ 10 $ (127 ) $ 662 $ (236 ) $ 3 $ (683 ) $ 415 $ (594 ) $ 5,501 $ 24 (1) The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads. (2) See note 17 for additional information related to consolidated securitization entities. (3) 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 years ended December 31: (Amounts in millions) 2017 2016 2015 Total realized and unrealized gains (losses) included in net income (loss): Net investment income $ 26 $ 44 $ 42 Net investment gains (losses) 63 (70 ) (32 ) Total $ 89 $ (26 ) $ 10 Total gains (losses) included in net income (loss) attributable to assets still held: Net investment income $ 22 $ 30 $ 33 Net investment gains (losses) 29 (13 ) (9 ) Total $ 51 $ 17 $ 24 |
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 December 31, 2017: (Amounts in millions) Valuation Fair Unobservable Range Weighted- Fixed maturity securities: U.S. corporate: Utilities Internal models $ 554 Credit spreads 63bps - 364bps 119bps Energy Internal models 95 Credit spreads 70bps - 182bps 131bps Finance and insurance Internal models 587 Credit spreads 63bps - 349bps 155bps Consumer—non-cyclical Internal models 81 Credit spreads 75bps - 135bps 110bps Technology and communications Internal models 73 Credit spreads 53bps - 301bps 250bps Industrial Internal models 12 Credit spreads 182bps Not applicable Capital goods Internal models 120 Credit spreads 83bps - 223bps 126bps Consumer—cyclical Internal models 236 Credit spreads 59bps - 186bps 116bps Transportation Internal models 54 Credit spreads 52bps - 112bps 78bps Other Internal models 159 Credit spreads 56bps - 99bps 65bps Total U.S. corporate Internal models $ 1,971 Credit spreads 52bps - 364bps 130bps Non-U.S. corporate: Utilities Internal models $ 343 Credit spreads 65bps - 138bps 103bps Energy Internal models 146 Credit spreads 83bps - 135bps 100bps Finance and insurance Internal models 152 Credit spreads 59bps - 175bps 96bps Consumer—non-cyclical Internal models 113 Credit spreads 52bps - 182bps 104bps Technology and communications Internal models 29 Credit spreads 112bps - 213bps 158bps Industrial Internal models 116 Credit spreads 94bps - 172bps 125bps Capital goods Internal models 162 Credit spreads 75bps - 223bps 128bps Consumer—cyclical Internal models 53 Credit spreads 63bps - 160bps 91bps Transportation Internal models 150 Credit spreads 69bps - 182bps 104bps Other Internal models 52 Credit spreads 95bps - 225bps 149bps Total non-U.S. corporate Internal models $ 1,316 Credit spreads 52bps - 225bps 110bps Derivative assets: Equity index options Discounted cash $ 80 Equity index 6% - 30% 15% |
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 December 31: 2017 (Amounts in millions) Total Level 1 Level 2 Level 3 Liabilities Policyholder account balances: GMWB embedded derivatives (1) $ 250 $ — $ — $ 250 Fixed index annuity embedded derivatives 419 — — 419 Indexed universal life embedded derivatives 14 — — 14 Total policyholder account balances 683 — — 683 Derivative liabilities: Interest rate swaps 25 — 25 — Equity return swaps 2 — 2 — Other foreign currency contracts 20 — 20 — Total derivative liabilities 47 — 47 — Total liabilities $ 730 $ — $ 47 $ 683 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. 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 (2) 1 — 1 — Equity return swaps 1 — 1 — Other foreign currency contracts 27 — 27 — Total derivative liabilities 383 — 383 — Borrowings related to securitization entities (2) 12 — — 12 Total liabilities $ 1,053 $ — $ 383 $ 670 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (2) See note 17 for additional information related to consolidated securitization entities. |
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 2017 Total realized and Transfer Level 3 Transfer Level 3 Ending 2017 Total still held (Amounts in millions) Included Included in OCI Purchases Sales Issuances Settlements Policyholder account balances: GMWB embedded derivatives (1) $ 303 $ (82 ) $ — $ — $ — $ 29 $ — $ — $ — $ 250 $ (80 ) Fixed index annuity embedded derivatives 344 84 — — — — (9 ) — — 419 84 Indexed universal life embedded derivatives 11 (8 ) — — — 11 — — — 14 (8 ) Total policyholder account balances 658 (6 ) — — — 40 (9 ) — — 683 (4 ) Borrowings related to securitization entities (2) 12 — — — — — (12 ) — — — — Total Level 3 liabilities $ 670 $ (6 ) $ — $ — $ — $ 40 $ (21 ) $ — $ — $ 683 $ (4 ) (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (2) See note 17 for additional information related to consolidated securitization entities. Beginning 2016 Total realized and Transfer Level 3 Transfer Level 3 Ending 2016 Total still held (Amounts in millions) Included Included in OCI Purchases Sales Issuances Settlements Policyholder account balances: GMWB embedded derivatives (1) $ 352 $ (79 ) $ — $ — $ — $ 30 $ — $ — $ — $ 303 $ (73 ) Fixed index annuity embedded derivatives 342 22 — — — 10 (30 ) — — 344 22 Indexed universal life embedded derivatives 10 (10 ) — — — 11 — — — 11 (10 ) Total policyholder account balances 704 (67 ) — — — 51 (30 ) — — 658 (61 ) Derivative liabilities: Credit default swaps related to securitization entities (2) 14 (13 ) — — — 2 — — (3 ) — — Total derivative liabilities 14 (13 ) — — — 2 — — (3 ) — — Borrowings related to securitization entities (2) 81 (63 ) — — — — (6 ) — — 12 1 Total Level 3 liabilities $ 799 $ (143 ) $ — $ — $ — $ 53 $ (36 ) $ — $ (3 ) $ 670 $ (60 ) (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (2) See note 17 for additional information related to consolidated securitization entities. Beginning 2015 Total realized and Transfer Level 3 Transfer Level 3 Ending 2015 Total still held (Amounts in millions) Included Included in OCI Purchases Sales Issuances Settlements Policyholder account balances: GMWB embedded derivatives (1) $ 291 $ 26 $ — $ — $ — $ 35 $ — $ — $ — $ 352 $ 30 Fixed index annuity embedded derivatives 276 7 — — — 65 (6 ) — — 342 7 Indexed universal life embedded derivatives 7 (6 ) — — — 9 — — — 10 (6 ) Total policyholder account balances 574 27 — — — 109 (6 ) — — 704 31 Derivative liabilities: Credit default swaps related to securitization entities (2) 17 (7 ) — 4 — — — — — 14 21 Total derivative liabilities 17 (7 ) — 4 — — — — — 14 21 Borrowings related to securitization entities (2) 85 (4 ) — — — — — — — 81 (4 ) Total Level 3 liabilities $ 676 $ 16 $ — $ 4 $ — $ 109 $ (6 ) $ — $ — $ 799 $ 48 (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. (2) See note 17 for additional information related to consolidated securitization entities. |
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 years ended December 31: (Amounts in millions) 2017 2016 2015 Total realized and unrealized (gains) losses included in net (income) loss: Net investment income $ — $ — $ — Net investment (gains) losses (6 ) (79 ) 16 Other income — (64 ) — Total $ (6 ) $ (143 ) $ 16 Total (gains) losses included in net (income) loss attributable to liabilities still held: Net investment income $ — $ — $ — Net investment (gains) losses (4 ) (60 ) 48 Total $ (4 ) $ (60 ) $ 48 |
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 December 31, 2017: (Amounts in millions) Valuation Fair value Unobservable input Range Weighted- Policyholder account balances: Withdrawal utilization rate 40% - 84% 65% Lapse rate — % - 8% 4% Non-performance (credit spreads) 19bps - 83bps 65bps GMWB embedded derivatives (1) Stochastic cash $ 250 Equity index 13% - 24% 20% Fixed index annuity embedded derivatives Option budget $ 419 Expected future — % - 2% 1% Indexed universal life embedded derivatives Option budget $ 14 Expected future 3% - 8% 5% (1) Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Variable Interest and Securit50
Variable Interest and Securitization Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Variable Interest Entities | The following table shows the assets and liabilities that were recorded for the consolidated securitization entities as of December 31: (Amounts in millions) 2017 2016 Assets Investments: Restricted commercial mortgage loans $ 107 $ 129 Restricted other invested assets: Trading securities — 312 Total restricted other invested assets — 312 Total investments 107 441 Cash and cash equivalents 1 1 Accrued investment income — 1 Other assets — 1 Total assets $ 108 $ 444 Liabilities Other liabilities: Derivative liabilities $ — $ 1 Total other liabilities — 1 Borrowings related to securitization entities 40 74 Total liabilities $ 40 $ 75 |
Schedule of Income Statement Activity Related to Variable Interest Entities | The following table shows the activity presented in our consolidated statement of income related to the consolidated securitization entities for the years ended December 31: (Amounts in millions) 2017 2016 2015 Revenues: Net investment income: Restricted commercial mortgage loans $ 9 $ 10 $ 14 Restricted other invested assets 1 3 5 Total net investment income 10 13 19 Net investment gains (losses): Derivatives 7 8 3 Trading securities — (57 ) (2 ) Borrowings related to securitization entities recorded at fair value — (1 ) 4 Total net investment gains (losses) 7 (50 ) 5 Other income — 64 — Total revenues 17 27 24 Expenses: Interest expense 6 7 9 Total expenses 6 7 9 Income before income taxes 11 20 15 Provision (benefit) for income taxes (6 ) 7 5 Net income $ 17 $ 13 $ 10 |
Borrowings Related to Consolidated Securitization Entities | Borrowings related to securitization entities were as follows as of December 31: 2017 2016 (Amounts in millions) Principal Carrying Principal Carrying GFCM LLC, due 2035, 5.7426% $ 40 $ 40 $ 62 $ 62 Marvel Finance 2007-4 LLC, due 2017 (1), (2) — — 12 12 Total $ 40 $ 40 $ 74 $ 74 (1) Accrual of interest based on three-month LIBOR that resets every three months plus a fixed margin. (2) Carrying value represents fair value as a result of electing fair value option for these liabilities. |
Insurance Subsidiary Financia51
Insurance Subsidiary Financial Information and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Combined Statutory Net Income (Loss) and Statutory Capital and Surplus | The tables below include the combined statutory net income (loss) and statutory capital and surplus for our U.S. domiciled insurance subsidiaries for the periods indicated: Years ended December 31, (Amounts in millions) 2017 2016 2015 Combined statutory net income (loss): Life insurance subsidiaries, excluding captive life reinsurance subsidiaries (1) $ (272 ) $ (365 ) $ (583 ) Mortgage insurance subsidiaries 512 448 287 Combined statutory net income (loss), excluding captive reinsurance subsidiaries 240 83 (296 ) Captive life insurance subsidiaries (36 ) (403 ) (276 ) Combined statutory net income (loss) $ 204 $ (320 ) $ (572 ) (1) The combined statutory net loss for the year ended December 31, 2015 was re-presented as if the merger of BLAIC with and into GLIC discussed above occurred on January 1, 2015 in accordance with the statutory merger method. As of December 31, (Amounts in millions) 2017 2016 Combined statutory capital and surplus: Life insurance subsidiaries, excluding captive life reinsurance subsidiaries $ 2,776 $ 3,100 Mortgage insurance subsidiaries 2,772 2,201 Combined statutory capital and surplus $ 5,548 $ 5,301 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Segments and Corporate and Other Activities | The following is a summary of our segments and Corporate and Other activities as of or for the years ended December 31: 2017 U.S. Canada Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 695 $ 519 $ (140 ) $ 2,922 $ — $ 8 $ 4,004 Net investment income 73 132 75 2,755 160 5 3,200 Net investment gains (losses) — 128 25 134 16 (38 ) 265 Policy fees and other income 4 1 — 660 163 (2 ) 826 Total revenues 772 780 (40 ) 6,471 339 (27 ) 8,295 Benefits and other changes in policy reserves 107 54 109 4,880 26 3 5,179 Interest credited — — — 506 140 — 646 Acquisition and operating expenses, net of deferrals 165 80 67 572 61 77 1,022 Amortization of deferred acquisition costs and intangibles 14 43 24 328 24 2 435 Interest expense — 18 9 13 2 242 284 Total benefits and expenses 286 195 209 6,299 253 324 7,566 Income (loss) from continuing operations before income taxes 486 585 (249 ) 172 86 (351 ) 729 Provision (benefit) for income taxes 175 191 (90 ) 60 25 (568 ) (207 ) Income (loss) from continuing operations 311 394 (159 ) 112 61 217 936 Loss from discontinued operations, net of taxes — — — — — (9 ) (9 ) Net income (loss) 311 394 (159 ) 112 61 208 927 Less: net income (loss) attributable to noncontrolling interests — 190 (80 ) — — — 110 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 311 $ 204 $ (79 ) $ 112 $ 61 $ 208 $ 817 Total assets $ 3,273 $ 5,534 $ 2,973 $ 81,295 $ 10,907 $ 1,315 $ 105,297 2016 U.S. Canada Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 660 $ 481 $ 337 $ 2,670 $ — $ 12 $ 4,160 Net investment income 63 126 94 2,726 147 3 3,159 Net investment gains (losses) (1 ) 37 9 128 (14 ) (87 ) 72 Policy fees and other income 4 1 — 726 169 78 978 Total revenues 726 645 440 6,250 302 6 8,369 Benefits and other changes in policy reserves 160 104 113 4,822 42 4 5,245 Interest credited — — — 565 131 — 696 Acquisition and operating expenses, net of deferrals 167 77 96 648 68 217 1,273 Amortization of deferred acquisition costs and intangibles 12 39 14 403 29 1 498 Interest expense — 18 10 38 1 270 337 Total benefits and expenses 339 238 233 6,476 271 492 8,049 Income (loss) from continuing operations before income taxes 387 407 207 (226 ) 31 (486 ) 320 Provision (benefit) for income taxes 138 113 67 (80 ) 6 114 358 Income (loss) from continuing operations 249 294 140 (146 ) 25 (600 ) (38 ) Loss from discontinued operations, net of taxes — — — — — (29 ) (29 ) Net income (loss) 249 294 140 (146 ) 25 (629 ) (67 ) Less: net income attributable to noncontrolling interests — 135 75 — — — 210 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 249 $ 159 $ 65 $ (146 ) $ 25 $ (629 ) $ (277 ) Total assets $ 2,674 $ 4,884 $ 2,619 $ 81,933 $ 11,352 $ 1,196 $ 104,658 2015 U.S. Canada Australia U.S. Life Runoff Corporate Total (Amounts in millions) Premiums $ 602 $ 466 $ 357 $ 3,128 $ 1 $ 25 $ 4,579 Net investment income 58 130 114 2,701 138 (3 ) 3,138 Net investment gains (losses) 1 (32 ) 6 (10 ) (69 ) 29 (75 ) Policy fees and other income 4 — (3 ) 726 189 (10 ) 906 Total revenues 665 564 474 6,545 259 41 8,548 Benefits and other changes in policy reserves 222 96 81 4,692 44 14 5,149 Interest credited — — — 596 124 — 720 Acquisition and operating expenses, net of deferrals 155 66 98 684 76 230 1,309 Amortization of deferred acquisition costs and intangibles 10 36 18 872 29 1 966 Interest expense — 18 10 92 1 298 419 Total benefits and expenses 387 216 207 6,936 274 543 8,563 Income (loss) from continuing operations before income taxes 278 348 267 (391 ) (15 ) (502 ) (15 ) Provision (benefit) for income taxes 99 90 80 (138 ) (10 ) (130 ) (9 ) Income (loss) from continuing operations 179 258 187 (253 ) (5 ) (372 ) (6 ) Loss from discontinued operations, net of taxes — — — — — (407 ) (407 ) Net income (loss) 179 258 187 (253 ) (5 ) (779 ) (413 ) Less: net income attributable to noncontrolling interests — 118 84 — — — 202 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 179 $ 140 $ 103 $ (253 ) $ (5 ) $ (779 ) $ (615 ) |
Summary of Revenues of Major Product Groups for Segments and Corporate and Other Activities | The following is a summary of revenues of major product groups for our segments and Corporate and Other activities for the years ended December 31: (Amounts in millions) 2017 2016 2015 Revenues: U.S. Mortgage Insurance segment $ 772 $ 726 $ 665 Canada Mortgage Insurance segment 780 645 564 Australia Mortgage Insurance segment (40 ) 440 474 U.S. Life Insurance segment: Long-term care insurance 4,062 4,037 3,752 Life insurance 1,591 1,381 1,902 Fixed annuities 818 832 891 U.S. Life Insurance segment 6,471 6,250 6,545 Runoff segment 339 302 259 Corporate and Other activities (27 ) 6 41 Total revenues $ 8,295 $ 8,369 $ 8,548 |
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 years ended December 31: (Amounts in millions) 2017 2016 2015 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 817 $ (277 ) $ (615 ) Add: net income attributable to noncontrolling interests 110 210 202 Net income (loss) 927 (67 ) (413 ) Loss from discontinued operations, net of taxes (9 ) (29 ) (407 ) Income (loss) from continuing operations 936 (38 ) (6 ) Less: income from continuing operations attributable to noncontrolling interests 110 210 202 Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders 826 (248 ) (208 ) Adjustments to income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders: Net investment (gains) losses, net (1) (202 ) (66 ) 30 (Gains) losses from sale of businesses — (3 ) 140 (Gains) losses on early extinguishment of debt, net (2) — (48 ) 2 Losses from life block transactions — 9 455 Expenses related to restructuring 2 22 8 Fees associated with bond consent solicitation — 18 — Taxes on adjustments 70 — (172 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 696 $ (316 ) $ 255 (1) For the years ended December 31, 2017, 2016 and 2015, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million, $(14) million and $(35) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $66 million, $20 million and $(10) million, respectively. (2) For the year ended December 31, 2015, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million. (Amounts in millions) 2017 2016 2015 Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders: U.S. Mortgage Insurance segment $ 311 $ 250 $ 179 Canada Mortgage Insurance segment 157 146 152 Australia Mortgage Insurance segment (88 ) 62 102 U.S. Life Insurance segment: Long-term care insurance 59 (200 ) 29 Life insurance (79 ) (83 ) (80 ) Fixed annuities 42 68 94 U.S. Life Insurance segment 22 (215 ) 43 Runoff segment 51 28 27 Corporate and Other activities 243 (587 ) (248 ) Adjusted operating income (loss) available to Genworth Financial, Inc.’s common stockholders $ 696 $ (316 ) $ 255 |
Schedule of Revenue, Net Income and Assets by Geographic Location | The following is a summary of geographic region activity as of or for the years ended December 31: 2017 (Amounts in millions) United Canada Australia Other Total Total Total revenues $ 7,546 $ 780 $ (40 ) $ 9 $ 749 $ 8,295 Income (loss) from continuing operations $ 704 $ 394 $ (159 ) $ (3 ) $ 232 $ 936 Net income (loss) $ 695 $ 394 $ (159 ) $ (3 ) $ 232 $ 927 Total assets $ 96,740 $ 5,534 $ 2,973 $ 50 $ 8,557 $ 105,297 2016 (Amounts in millions) United Canada Australia Other Total Total Total revenues $ 7,270 $ 645 $ 440 $ 14 $ 1,099 $ 8,369 Income (loss) from continuing operations $ (447 ) $ 294 $ 140 $ (25 ) $ 409 $ (38 ) Net income (loss) $ (494 ) $ 294 $ 140 $ (7 ) $ 427 $ (67 ) Total assets $ 97,107 $ 4,884 $ 2,619 $ 48 $ 7,551 $ 104,658 2015 (Amounts in millions) United Canada Australia Other Total Total Total revenues $ 7,483 $ 564 $ 474 $ 27 $ 1,065 $ 8,548 Income (loss) from continuing operations $ (430 ) $ 258 $ 187 $ (21 ) $ 424 $ (6 ) Net income (loss) $ (430 ) $ 258 $ 187 $ (428 ) $ 17 $ (413 ) |
Quarterly Results of Operatio53
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Results of Operations | Our unaudited quarterly results of operations for the year ended December 31, 2017 are summarized in the table below. Three months ended (Amounts in millions, except per share amounts) March 31, June 30, September 30, December 31, Total revenues (1) $ 2,171 $ 2,223 $ 2,215 $ 1,686 Total benefits and expenses (2) $ 1,839 $ 1,822 $ 1,929 $ 1,976 Income from continuing operations (3) $ 216 $ 271 $ 184 $ 265 Loss from discontinued operations, net of taxes $ — $ — $ (9 ) $ — Net income (3) $ 216 $ 271 $ 175 $ 265 Net income (loss) attributable to noncontrolling interests (4) $ 61 $ 69 $ 68 $ (88 ) Net income available to Genworth Financial, Inc.’s common stockholders (3) $ 155 $ 202 $ 107 $ 353 Income from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.31 $ 0.40 $ 0.23 $ 0.71 Diluted $ 0.31 $ 0.40 $ 0.23 $ 0.70 Net income available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.31 $ 0.40 $ 0.21 $ 0.71 Diluted $ 0.31 $ 0.40 $ 0.21 $ 0.70 Weighted-average common shares outstanding: Basic 498.6 499.0 499.1 499.2 Diluted 501.0 501.2 501.6 502.1 (1) Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. (2) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2017, which resulted in higher total benefits and expenses of $117 million in our universal and term universal life insurance products driven mostly by emerging mortality experience and from prolonged low interest rates. In addition, we recorded lower total benefits and expenses of $18 million in our Australian mortgage insurance business associated with changes to their premium earnings pattern, as described above. (3) In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. (4) We completed a review of the premium earnings pattern in our Australian mortgage insurance business, as described above, which resulted in an unfavorable adjustment to net income (loss) attributable to noncontrolling interests of $151 million. Our unaudited quarterly results of operations for the year ended December 31, 2016 are summarized in the table below. Three months ended (Amounts in millions, except per share amounts) March 31, June 30, September 30, December 31, Total revenues (1) $ 1,785 $ 2,236 $ 2,150 $ 2,198 Total benefits and expenses (2) $ 1,635 $ 1,885 $ 2,275 $ 2,254 Income (loss) from continuing operations (3) $ 127 $ 241 $ (347 ) $ (59 ) Income (loss) from discontinued operations, net of taxes $ (19 ) $ (21 ) $ 15 $ (4 ) Net income (loss) (3) $ 108 $ 220 $ (332 ) $ (63 ) Net income attributable to noncontrolling interests $ 55 $ 48 $ 48 $ 59 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ 53 $ 172 $ (380 ) $ (122 ) Income (loss) from continuing operations available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.14 $ 0.39 $ (0.79 ) $ (0.24 ) Diluted $ 0.14 $ 0.39 $ (0.79 ) $ (0.24 ) Net income (loss) available to Genworth Financial, Inc.’s common stockholders per share: Basic $ 0.11 $ 0.35 $ (0.76 ) $ (0.25 ) Diluted $ 0.11 $ 0.34 $ (0.76 ) $ (0.25 ) Weighted-average common shares outstanding: Basic 498.0 498.5 498.3 498.4 Diluted (4) 499.4 500.4 498.3 498.4 (1) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. (2) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in higher total benefits and expenses of $307 million in our universal and term universal life insurance products. (3) Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. (4) 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 months ended September 30, 2016 and December 31, 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, RSUs and SARs of 2.2 million and 2.5 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 ended September 30, 2016 and December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.9 million, respectively. |
Changes In Accumulated Other 54
Changes In Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 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 January 1, 2017 $ 1,262 $ 2,085 $ (253 ) $ 3,094 OCI before reclassifications (84 ) 38 251 205 Amounts reclassified from (to) OCI (102 ) (58 ) — (160 ) Current period OCI (186 ) (20 ) 251 45 Balances as of December 31, 2017 before noncontrolling interests 1,076 2,065 (2 ) 3,139 Less: change in OCI attributable to noncontrolling interests (9 ) — 121 112 Balances as of December 31, 2017 $ 1,085 $ 2,065 $ (123 ) $ 3,027 (1) Net of adjustments to DAC, PVFP, 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 54 120 54 228 Amounts reclassified from (to) OCI (57 ) (80 ) — (137 ) Current period OCI (3 ) 40 54 91 Balances as of December 31, 2016 before noncontrolling interests 1,251 2,085 (235 ) 3,101 Less: change in OCI attributable to noncontrolling interests (11 ) — 18 7 Balances as of December 31, 2016 $ 1,262 $ 2,085 $ (253 ) $ 3,094 (1) Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. (2) See note 5 for additional information. (Amounts in millions) Net (1) Derivatives (2) Foreign Total Balances as of January 1, 2015 $ 2,453 $ 2,070 $ (77 ) $ 4,446 OCI before reclassifications (1,218 ) 50 (530 ) (1,698 ) Amounts reclassified from (to) OCI 5 (75 ) — (70 ) Current period OCI (1,213 ) (25 ) (530 ) (1,768 ) Balances as of December 31, 2015 before noncontrolling interests 1,240 2,045 (607 ) 2,678 Less: change in OCI attributable to noncontrolling interests (14 ) — (318 ) (332 ) Balances as of December 31, 2015 $ 1,254 $ 2,045 $ (289 ) $ 3,010 (1) Net of adjustments to DAC, PVFP, 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 out of accumulated other comprehensive income (loss), net of taxes, for the periods presented: Amount reclassified from Affected line item in the consolidated statements of income Years ended December 31, (Amounts in millions) 2017 2016 2015 Net unrealized investment (gains) losses: Unrealized (gains) losses on investments (1) $ (157 ) $ (88 ) $ 7 Net investment (gains) losses (Provision) benefit for income taxes 55 31 (2 ) (Provision) benefit for income taxes Total $ (102 ) $ (57 ) $ 5 Derivatives qualifying as hedges: Interest rate swaps hedging assets $ (131 ) $ (112 ) $ (85 ) Net investment income Interest rate swaps hedging assets (8 ) (2 ) — Net investment (gains) losses Inflation indexed swaps — (2 ) — Net investment income Inflation indexed swaps — (7 ) — Net investment (gains) losses Forward bond purchase commitments — — (1 ) Net investment income Forward bond purchase commitments — — (32 ) Net investment (gains) losses (Provision) benefit for income taxes 81 43 43 (Provision) benefit for income taxes Total $ (58 ) $ (80 ) $ (75 ) (1) Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Changes in Ownership Interests and the Effect on Stockholders' Equity | A summary of the changes in ownership interests and the effect on stockholders’ equity as a result of the additional public offering of Genworth Australia was as follows for the year ended December 31: (Amounts in millions) 2015 Net loss available to Genworth Financial, Inc.’s common stockholders $ (615 ) Transfers to the noncontrolling interests: Decrease in Genworth Financial, Inc.’s additional paid-in capital for additional sale of Genworth Australia shares to noncontrolling interests (65 ) Net transfers to noncontrolling interests (65 ) Change from net loss available to Genworth Financial, Inc.’s common stockholders and transfers to noncontrolling interests $ (680 ) |
Sale of Businesses (Tables)
Sale of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Information for Held for Sale | Summary operating results of discontinued operations were as follows for the years ended December 31: (Amounts in millions) 2017 2016 2015 Revenues: Premiums $ — $ — $ 627 Net investment income — — 74 Total revenues — — 701 Benefits and expenses: Benefits and other changes in policy reserves — — 182 Acquisition and operating expenses — — 396 Amortization of deferred acquisition costs and intangibles — — 83 Interest expense — — 29 Total benefits and expenses — — 690 Income before income taxes and loss on sale — — 11 Provision for income taxes — — 37 Loss before loss on sale — — (26 ) Loss on sale, net of taxes (9 ) (29 ) (381 ) Loss from discontinued operations, net of taxes $ (9 ) $ (29 ) $ (407 ) |
Condensed Consolidating Finan57
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Consolidating Balance Sheet | The following table presents the condensed consolidating balance sheet information as of December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 62,725 $ (200 ) $ 62,525 Equity securities available-for-sale, at fair value — — 820 — 820 Commercial mortgage loans — — 6,341 — 6,341 Restricted commercial mortgage loans related to securitization entities — — 107 — 107 Policy loans — — 1,786 — 1,786 Other invested assets — 75 1,742 (4 ) 1,813 Investments in subsidiaries 13,561 12,867 — (26,428 ) — Total investments 13,561 12,942 73,521 (26,632 ) 73,392 Cash and cash equivalents — 795 2,080 — 2,875 Accrued investment income — — 647 (3 ) 644 Deferred acquisition costs — — 2,329 — 2,329 Intangible assets and goodwill — — 301 — 301 Reinsurance recoverable — — 17,569 — 17,569 Other assets 3 54 397 (1 ) 453 Intercompany notes receivable — 155 59 (214 ) — Deferred tax assets 27 — 477 — 504 Separate account assets — — 7,230 — 7,230 Total assets $ 13,591 $ 13,946 $ 104,610 $ (26,850 ) $ 105,297 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 38,472 $ — $ 38,472 Policyholder account balances — — 24,195 — 24,195 Liability for policy and contract claims — — 9,594 — 9,594 Unearned premiums — — 3,967 — 3,967 Other liabilities 41 119 1,759 (9 ) 1,910 Intercompany notes payable 132 259 23 (414 ) — Borrowings related to securitization entities — — 40 — 40 Non-recourse funding obligations — — 310 — 310 Long-term borrowings — 3,724 500 — 4,224 Deferred tax liability — (807 ) 834 — 27 Separate account liabilities — — 7,230 — 7,230 Total liabilities 173 3,295 86,924 (423 ) 89,969 Equity: Common stock 1 — 3 (3 ) 1 Additional paid-in capital 11,977 9,096 18,420 (27,516 ) 11,977 Accumulated other comprehensive income (loss) 3,027 3,037 3,051 (6,088 ) 3,027 Retained earnings 1,113 (1,482 ) (5,998 ) 7,480 1,113 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 13,418 10,651 15,476 (26,127 ) 13,418 Noncontrolling interests — — 2,210 (300 ) 1,910 Total equity 13,418 10,651 17,686 (26,427 ) 15,328 Total liabilities and equity $ 13,591 $ 13,946 $ 104,610 $ (26,850 ) $ 105,297 The following table presents the condensed consolidating balance sheet information as of December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Assets Investments: Fixed maturity securities available-for-sale, at fair value $ — $ — $ 60,772 $ (200 ) $ 60,572 Equity securities available-for-sale, at fair value — — 632 — 632 Commercial mortgage loans — — 6,111 — 6,111 Restricted commercial mortgage loans related to securitization entities — — 129 — 129 Policy loans — — 1,742 — 1,742 Other invested assets — 105 1,966 — 2,071 Restricted other invested assets related to securitization entities, at fair value — — 312 — 312 Investments in subsidiaries 12,730 12,308 — (25,038 ) — Total investments 12,730 12,413 71,664 (25,238 ) 71,569 Cash and cash equivalents — 998 1,786 — 2,784 Accrued investment income — — 663 (4 ) 659 Deferred acquisition costs — — 3,571 — 3,571 Intangible assets and goodwill — — 348 — 348 Reinsurance recoverable — — 17,755 — 17,755 Other assets 9 134 530 — 673 Intercompany notes receivable — 84 67 (151 ) — Deferred tax assets 28 — (28 ) — — Separate account assets — — 7,299 — 7,299 Total assets $ 12,767 $ 13,629 $ 103,655 $ (25,393 ) $ 104,658 Liabilities and stockholders’ equity Liabilities: Future policy benefits $ — $ — $ 37,063 $ — $ 37,063 Policyholder account balances — — 25,662 — 25,662 Liability for policy and contract claims — — 9,256 — 9,256 Unearned premiums — — 3,378 — 3,378 Other liabilities 39 301 2,581 (5 ) 2,916 Intercompany notes payable 84 267 — (351 ) — Borrowings related to securitization entities — — 74 — 74 Non-recourse funding obligations — — 310 — 310 Long-term borrowings — 3,716 464 — 4,180 Deferred tax liability — (816 ) 869 — 53 Separate account liabilities — — 7,299 — 7,299 Total liabilities 123 3,468 86,956 (356 ) 90,191 Equity: Common stock 1 — — — 1 Additional paid-in capital 11,962 9,097 20,252 (29,349 ) 11,962 Accumulated other comprehensive income (loss) 3,094 3,135 3,116 (6,251 ) 3,094 Retained earnings 287 (2,071 ) (8,792 ) 10,863 287 Treasury stock, at cost (2,700 ) — — — (2,700 ) Total Genworth Financial, Inc.’s stockholders’ equity 12,644 10,161 14,576 (24,737 ) 12,644 Noncontrolling interests — — 2,123 (300 ) 1,823 Total equity 12,644 10,161 16,699 (25,037 ) 14,467 Total liabilities and equity $ 12,767 $ 13,629 $ 103,655 $ (25,393 ) $ 104,658 |
Condensed Consolidating Income Statement | The following table presents the condensed consolidating income statement information for the year ended December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 4,004 $ — $ 4,004 Net investment income (3 ) 8 3,210 (15 ) 3,200 Net investment gains (losses) — (14 ) 279 — 265 Policy fees and other income — 5 823 (2 ) 826 Total revenues (3 ) (1 ) 8,316 (17 ) 8,295 Benefits and expenses: Benefits and other changes in policy reserves — — 5,179 — 5,179 Interest credited — — 646 — 646 Acquisition and operating expenses, net of deferrals 57 (2 ) 967 — 1,022 Amortization of deferred acquisition costs and intangibles — — 435 — 435 Interest expense 1 254 46 (17 ) 284 Total benefits and expenses 58 252 7,273 (17 ) 7,566 Income (loss) from continuing operations before income taxes and equity in income of subsidiaries (61 ) (253 ) 1,043 — 729 Benefit for income taxes — (67 ) (140 ) — (207 ) Equity in income of subsidiaries 878 771 — (1,649 ) — Income from continuing operations 817 585 1,183 (1,649 ) 936 Income (loss) from discontinued operations, net of taxes — 4 (13 ) — (9 ) Net income 817 589 1,170 (1,649 ) 927 Less: net income attributable to noncontrolling interests — — 110 — 110 Net income available to Genworth Financial, Inc.’s common stockholders $ 817 $ 589 $ 1,060 $ (1,649 ) $ 817 The following table presents the condensed consolidating income statement information for the year ended December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 4,160 $ — $ 4,160 Net investment income (3 ) 2 3,175 (15 ) 3,159 Net investment gains (losses) — (1 ) 73 — 72 Policy fees and other income — (8 ) 986 — 978 Total revenues (3 ) (7 ) 8,394 (15 ) 8,369 Benefits and expenses: Benefits and other changes in policy reserves — — 5,245 — 5,245 Interest credited — — 696 — 696 Acquisition and operating expenses, net of deferrals 153 38 1,082 — 1,273 Amortization of deferred acquisition costs and intangibles — — 498 — 498 Interest expense 1 278 73 (15 ) 337 Total benefits and expenses 154 316 7,594 (15 ) 8,049 Income (loss) from continuing operations before income taxes and equity in loss of subsidiaries (157 ) (323 ) 800 — 320 Provision (benefit) for income taxes (47 ) 71 334 — 358 Equity in loss of subsidiaries (166 ) (53 ) — 219 — Income (loss) from continuing operations (276 ) (447 ) 466 219 (38 ) Loss from discontinued operations, net of taxes (1 ) (12 ) (16 ) — (29 ) Net income (loss) (277 ) (459 ) 450 219 (67 ) Less: net income attributable to noncontrolling interests — — 210 — 210 Net income (loss) available to Genworth Financial, Inc.’s common stockholders $ (277 ) $ (459 ) $ 240 $ 219 $ (277 ) The following table presents the condensed consolidating income statement information for the year ended December 31, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Revenues: Premiums $ — $ — $ 4,579 $ — $ 4,579 Net investment income (3 ) 1 3,154 (14 ) 3,138 Net investment gains (losses) — 43 (118 ) — (75 ) Policy fees and other income — (32 ) 940 (2 ) 906 Total revenues (3 ) 12 8,555 (16 ) 8,548 Benefits and expenses: Benefits and other changes in policy reserves — — 5,149 — 5,149 Interest credited — — 720 — 720 Acquisition and operating expenses, net of deferrals 32 2 1,275 — 1,309 Amortization of deferred acquisition costs and intangibles — — 966 — 966 Interest expense — 307 128 (16 ) 419 Total benefits and expenses 32 309 8,238 (16 ) 8,563 Income (loss) from continuing operations before income taxes and equity in loss of subsidiaries (35 ) (297 ) 317 — (15 ) Provision (benefit) for income taxes (8 ) (103 ) 102 — (9 ) Equity in loss of subsidiaries (579 ) (463 ) — 1,042 — Income (loss) from continuing operations (606 ) (657 ) 215 1,042 (6 ) Loss from discontinued operations, net of taxes (9 ) — (398 ) — (407 ) Net loss (615 ) (657 ) (183 ) 1,042 (413 ) Less: net income attributable to noncontrolling interests — — 202 — 202 Net loss available to Genworth Financial, Inc.’s common stockholders $ (615 ) $ (657 ) $ (385 ) $ 1,042 $ (615 ) |
Condensed Consolidating Statement of Comprehensive Income | The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income $ 817 $ 589 $ 1,170 $ (1,649 ) $ 927 Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (178 ) (189 ) (187 ) 367 (187 ) Net unrealized gains (losses) on other-than-temporarily impaired securities 1 1 1 (2 ) 1 Derivatives qualifying as hedges (20 ) (19 ) (19 ) 38 (20 ) Foreign currency translation and other adjustments 130 109 252 (240 ) 251 Total other comprehensive income (loss) (67 ) (98 ) 47 163 45 Total comprehensive income 750 491 1,217 (1,486 ) 972 Less: comprehensive income attributable to noncontrolling interests — — 222 — 222 Total comprehensive income available to Genworth Financial, Inc.’s common stockholders $ 750 $ 491 $ 995 $ (1,486 ) $ 750 The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net income (loss) $ (277 ) $ (459 ) $ 450 $ 219 $ (67 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired 17 14 7 (32 ) 6 Net unrealized gains (losses) on other-than- temporarily impaired securities (9 ) (6 ) (9 ) 15 (9 ) Derivatives qualifying as hedges 40 39 43 (82 ) 40 Foreign currency translation and other adjustments 36 (28 ) 54 (8 ) 54 Total other comprehensive income (loss) 84 19 95 (107 ) 91 Total comprehensive income (loss) (193 ) (440 ) 545 112 24 Less: comprehensive income attributable to noncontrolling interests — — 217 — 217 Total comprehensive income (loss) available to Genworth Financial, Inc.’s common stockholders $ (193 ) $ (440 ) $ 328 $ 112 $ (193 ) The following table presents the condensed consolidating comprehensive income statement information for the year ended December 31, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Net loss $ (615 ) $ (657 ) $ (183 ) $ 1,042 $ (413 ) Other comprehensive income (loss), net of taxes: Net unrealized gains (losses) on securities not other-than-temporarily impaired (1,181 ) (1,158 ) (1,210 ) 2,340 (1,209 ) Net unrealized gains (losses) on other-than- temporarily impaired securities (4 ) (4 ) (4 ) 8 (4 ) Derivatives qualifying as hedges (25 ) (24 ) (19 ) 43 (25 ) Foreign currency translation and other adjustments (250 ) (171 ) (530 ) 421 (530 ) Total other comprehensive income (loss) (1,460 ) (1,357 ) (1,763 ) 2,812 (1,768 ) Total comprehensive loss (2,075 ) (2,014 ) (1,946 ) 3,854 (2,181 ) Less: comprehensive loss attributable to noncontrolling interests — — (106 ) — (106 ) Total comprehensive loss available to Genworth Financial Inc.’s common stockholders $ (2,075 ) $ (2,014 ) $ (1,840 ) $ 3,854 $ (2,075 ) |
Condensed Consolidating Statement of Cash Flows | The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2017: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net income $ 817 $ 589 $ 1,170 $ (1,649 ) $ 927 Less (income) loss from discontinued operations, net of taxes — (4 ) 13 — 9 Adjustments to reconcile net income to net cash from (used by) operating activities: Equity in income from subsidiaries (878 ) (771 ) — 1,649 — Dividends from subsidiaries — 148 (148 ) — — Amortization of fixed maturity securities discounts and premiums and limited partnerships — 5 (152 ) — (147 ) Net investment (gains) losses — 14 (279 ) — (265 ) Charges assessed to policyholders — — (713 ) — (713 ) Acquisition costs deferred — — (88 ) — (88 ) Amortization of deferred acquisition costs and intangibles — — 435 — 435 Deferred income taxes 10 7 (385 ) — (368 ) Trading securities, held-for-sale investments and derivative instruments — (44 ) 747 — 703 Stock-based compensation expense 30 — 12 — 42 Change in certain assets and liabilities: Accrued investment income and other assets 5 (41 ) 66 — 30 Insurance reserves — — 1,625 — 1,625 Current tax liabilities 23 (89 ) 62 — (4 ) Other liabilities, policy and contract claims and other policy-related balances (35 ) 80 327 (4 ) 368 Net cash from (used by) operating activities (28 ) (106 ) 2,692 (4 ) 2,554 Cash flows used by investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — — 4,766 — 4,766 Commercial mortgage loans — — 579 — 579 Restricted commercial mortgage loans related to securitization entities — — 22 — 22 Proceeds from sales of investments: Fixed maturity and equity securities — — 4,226 — 4,226 Purchases and originations of investments: Fixed maturity and equity securities — — (8,888 ) — (8,888 ) Commercial mortgage loans — — (806 ) — (806 ) Other invested assets, net — 25 (730 ) 4 (701 ) Policy loans, net — — 48 — 48 Intercompany notes receivable — (71 ) 8 63 — Capital contributions to subsidiaries (12 ) — 12 — — Payments for businesses purchased, net of cash acquired (7 ) — 2 — (5 ) Net cash used by investing activities (19 ) (46 ) (761 ) 67 (759 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 857 — 857 Withdrawals from universal life and investment contracts — — (2,397 ) — (2,397 ) Repayment of borrowings related to securitization entities — — (34 ) — (34 ) Intercompany notes payable 48 (8 ) 23 (63 ) — Repurchase of subsidiary shares — — (33 ) — (33 ) Dividends paid to noncontrolling interests — — (107 ) — (107 ) Other, net (1 ) (43 ) (10 ) — (54 ) Net cash from (used by) financing activities 47 (51 ) (1,701 ) (63 ) (1,768 ) Effect of exchange rate changes on cash and cash equivalents — — 64 — 64 Net change in cash and cash equivalents — (203 ) 294 — 91 Cash and cash equivalents at beginning of period — 998 1,786 — 2,784 Cash and cash equivalents at end of period $ — $ 795 $ 2,080 $ — $ 2,875 The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2016: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net income (loss) $ (277 ) $ (459 ) $ 450 $ 219 $ (67 ) Less loss from discontinued operations, net of taxes 1 12 16 — 29 Adjustments to reconcile net income (loss) to net cash from operating activities: Equity in loss from subsidiaries 166 53 — (219 ) — 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 — 4 (142 ) — (138 ) Net investment (gains) losses — 1 (73 ) — (72 ) Charges assessed to policyholders — — (782 ) — (782 ) Acquisition costs deferred — — (150 ) — (150 ) Amortization of deferred acquisition costs and intangibles — — 498 — 498 Deferred income taxes (6 ) 233 (82 ) — 145 Trading securities, held-for-sale investments and derivative instruments — 5 704 — 709 Stock-based compensation expense 23 — 9 — 32 Change in certain assets and liabilities: Accrued investment income and other assets (9 ) 98 (445 ) (2 ) (358 ) Insurance reserves — — 1,315 — 1,315 Current tax liabilities — 42 (10 ) — 32 Other liabilities, policy and contract claims and other policy-related balances 20 (63 ) 723 5 685 Net cash from (used by) operating activities (82 ) 177 1,754 3 1,852 Cash flows from (used by) investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 150 3,739 — 3,889 Commercial mortgage loans — — 700 — 700 Restricted commercial mortgage loans related to securitization entities — — 32 — 32 Proceeds from sales of investments: Fixed maturity and equity securities — — 5,629 — 5,629 Purchases and originations of investments: Fixed maturity and equity securities — — (11,529 ) — (11,529 ) Commercial mortgage loans — — (649 ) — (649 ) Other invested assets, net — — (151 ) (3 ) (154 ) Policy loans, net — — (77 ) — (77 ) Intercompany notes receivable — (82 ) — 82 — Proceeds from sale of businesses, net of cash transferred — 1 38 — 39 Net cash from (used by) investing activities — 69 (2,268 ) 79 (2,120 ) Cash flows from (used by) financing activities: Deposits to universal life and investment contracts — — 1,349 — 1,349 Withdrawals from universal life and investment contracts — — (2,004 ) — (2,004 ) Redemption and repurchase of non-recourse funding obligations — — (1,620 ) — (1,620 ) Repayment and repurchase of long-term debt — (326 ) (36 ) — (362 ) Repayment of borrowings related to securitization entities — — (42 ) — (42 ) Intercompany notes payable 82 — — (82 ) — Return of capital to noncontrolling interests — — (70 ) — (70 ) Dividends paid to noncontrolling interests — — (138 ) — (138 ) Other, net — (46 ) 2 — (44 ) Net cash from (used by) financing activities 82 (372 ) (2,559 ) (82 ) (2,931 ) Effect of exchange rate changes on cash and cash equivalents — — (10 ) — (10 ) Net change in cash and cash equivalents — (126 ) (3,083 ) — (3,209 ) Cash and cash equivalents at beginning of period — 1,124 4,869 — 5,993 Cash and cash equivalents at end of period $ — $ 998 $ 1,786 $ — $ 2,784 The following table presents the condensed consolidating cash flow statement information for the year ended December 31, 2015: (Amounts in millions) Parent Issuer All Other Eliminations Consolidated Cash flows from (used by) operating activities: Net loss $ (615 ) $ (657 ) $ (183 ) $ 1,042 $ (413 ) Less loss from discontinued operations, net of taxes 9 — 398 — 407 Adjustments to reconcile net loss to net cash from operating activities: Equity in loss from subsidiaries 579 463 — (1,042 ) — Dividends from subsidiaries — 530 (530 ) — — Loss on sale of businesses — — 141 — 141 Amortization of fixed maturity securities discounts and premiums and limited partnerships — — (106 ) — (106 ) Net investment (gains) losses — (43 ) 118 — 75 Charges assessed to policyholders — — (788 ) — (788 ) Acquisition costs deferred — — (293 ) — (293 ) Amortization of deferred acquisition costs and intangibles — — 966 — 966 Deferred income taxes (4 ) (65 ) (127 ) — (196 ) Trading securities, held-for-sale investments and derivative instruments — 41 (280 ) — (239 ) Stock-based compensation expense 21 — (5 ) — 16 Change in certain assets and liabilities: Accrued investment income and other assets 3 13 (123 ) 1 (106 ) Insurance reserves — — 1,847 — 1,847 Current tax liabilities (3 ) 18 (30 ) — (15 ) Other liabilities, policy and contract claims and other policy-related balances 2 (38 ) 328 1 293 Cash from operating activities—held for sale — — 2 — 2 Net cash from (used by) operating activities (8 ) 262 1,335 2 1,591 Cash flows from (used by) investing activities: Proceeds from maturities and repayments of investments: Fixed maturity securities — 1 4,540 — 4,541 Commercial mortgage loans — — 882 — 882 Restricted commercial mortgage loans related to securitization entities — — 41 — 41 Proceeds from sales of investments: Fixed maturity and equity securities — — 4,391 — 4,391 Purchases and originations of investments: Fixed maturity and equity securities — — (9,750 ) — (9,750 ) Commercial mortgage loans — — (956 ) — (956 ) Other invested assets, net — (100 ) 277 (2 ) 175 Policy loans, net — — 25 — 25 Intercompany notes receivable 9 265 (63 ) (211 ) — Capital contributions to subsidiaries — (25 ) 25 — — Proceeds from sale of businesses, net of cash transferred — — 273 — 273 Payments for businesses purchased, net of cash acquired — (197 ) 197 — — Cash used by investing activities—held for sale — — (26 ) — (26 ) Net cash from (used by) investing activities 9 (56 ) (144 ) (213 ) (404 ) Cash flows used by financing activities: Deposits to universal life and investment contracts — — 2,257 — 2,257 Withdrawals from universal life and investment contracts — — (2,144 ) — (2,144 ) Redemption and repurchase of non-recourse funding obligations — — (61 ) — (61 ) Proceeds from the issuance of long-term debt — — 150 — 150 Repayment and repurchase of long-term debt — (50 ) (70 ) — (120 ) Repayment of borrowings related to securitization entities — — (36 ) — (36 ) Intercompany notes payable 2 54 (267 ) 211 — Repurchase of subsidiary shares — — (68 ) — (68 ) Dividends paid to noncontrolling interests — — (157 ) — (157 ) Proceeds from the sale of subsidiary shares to noncontrolling interests — — 226 — 226 Other, net (3 ) (39 ) (56 ) — (98 ) Cash from financing activities—held for sale — — 9 — 9 Net cash used by financing activities (1 ) (35 ) (217 ) 211 (42 ) Effect of exchange rate changes on cash and cash equivalents — — (70 ) — (70 ) Net change in cash and cash equivalents — 171 904 — 1,075 Cash and cash equivalents at beginning of period — 953 3,965 — 4,918 Cash and cash equivalents at end of period — 1,124 4,869 — 5,993 Less cash and cash equivalents held for sale at end of period — — 28 — 28 Cash and cash equivalents of continuing operations at end of period $ — $ 1,124 $ 4,841 $ — $ 5,965 |
Formation of Genworth and Basis
Formation of Genworth and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Billions | Oct. 21, 2016USD ($)$ / shares | Dec. 31, 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 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2018 | Jan. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||||||
Equity securities, impairment charge recognition within number of months | 15 months | |||||
Non-accrual status of loans after number of days past due | 90 days | |||||
Cash equivalents determination for original maturities of investments, maximum number of days | 90 days | |||||
Short-term investments determination for original maturities of investments, minimum number of days | 90 days | |||||
Goodwill impairment charges | $ 0 | $ 0 | $ 0 | |||
Unearned premiums, increase (decrease) in earned premiums due to updated premium recognition factors for international mortgage insurance business | 468 | 0 | 8 | |||
Cumulative effect on retained earnings | 9 | |||||
Accumulated other comprehensive income | 3,027 | 3,094 | ||||
Net cash from operating activities | 2,554 | 1,852 | 1,591 | |||
Net cash from financing activities | (1,768) | (2,931) | $ (42) | |||
2017 Tax Act, increase (decrease) in deferred tax liability | (127) | |||||
Accounting for Stock Compensation | ||||||
Accounting Policies [Abstract] | ||||||
Deferred tax asset | $ 9 | |||||
Cumulative effect on retained earnings | $ 9 | |||||
Accounting Standards Update 2017-12 | Derivatives and Hedging | Subsequent Event | ||||||
Accounting Policies [Abstract] | ||||||
Cumulative effect on retained earnings | $ (2) | |||||
Accumulated other comprehensive income | 2 | |||||
Accounting Standards Update 2016-15 | Other Liabilities, Policy and Contract Claims and Other Policy Related Balances | Subsequent Event | ||||||
Accounting Policies [Abstract] | ||||||
Net cash from operating activities | 20 | |||||
Accounting Standards Update 2016-15 | Repayment and Repurchase of Long-Term Debt | Subsequent Event | ||||||
Accounting Policies [Abstract] | ||||||
Net cash from financing activities | (20) | |||||
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Subsequent Event | Limited Partner | ||||||
Accounting Policies [Abstract] | ||||||
Cumulative effect on retained earnings | 22 | |||||
Adoption of Recognition and Measurement of Financial Assets and Liabilities Guidance | Subsequent Event | Equity Securities | ||||||
Accounting Policies [Abstract] | ||||||
Cumulative effect on retained earnings | $ 65 | |||||
SAB 118 Disclosures | ||||||
Accounting Policies [Abstract] | ||||||
2017 Tax Act, income tax provision due to one-time transition tax related to foreign earnings | 63 | |||||
Non-cash | Derivative assets | ||||||
Accounting Policies [Abstract] | ||||||
Fair value of non-cash collateral received | 70 | 24 | ||||
Subject to enforceable master netting arrangement | ||||||
Accounting Policies [Abstract] | ||||||
Fair value of non-cash collateral received | 170 | 467 | ||||
Subject to enforceable master netting arrangement | Derivative liabilities | ||||||
Accounting Policies [Abstract] | ||||||
Fair value of collateral pledged | [1] | 288 | 557 | |||
Subject to enforceable master netting arrangement | Derivative assets | ||||||
Accounting Policies [Abstract] | ||||||
Fair value of non-cash collateral received | [2] | 170 | 467 | |||
Subject to enforceable master netting arrangement | Non Cash Collateral | Derivative liabilities | ||||||
Accounting Policies [Abstract] | ||||||
Fair value of collateral pledged | 288 | 384 | ||||
Subject to enforceable master netting arrangement | Cash Collateral | Derivative liabilities | ||||||
Accounting Policies [Abstract] | ||||||
Fair value of collateral pledged | $ 59 | $ 173 | ||||
[1] | Included $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 December 31, 2016. | |||||
[2] | Included $2 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2017 and 2016, respectively. |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
Earnings (Loss) Per Share [Abstract] | ||||||||||||||||||||||
Weighted-average common shares used in basic earnings (loss) per share calculations | 499.2 | 499.1 | 499 | 498.6 | 498.4 | 498.3 | 498.5 | 498 | 499 | 498.3 | 497.4 | |||||||||||
Stock options, restricted stock units and stock appreciation rights | 2.4 | 0 | 0 | |||||||||||||||||||
Weighted-average common shares used in diluted earnings (loss) per share calculations | 502.1 | 501.6 | 501.2 | 501 | 498.4 | [1] | 498.3 | [1] | 500.4 | [1] | 499.4 | [1] | 501.4 | [2] | 498.3 | [2] | 497.4 | [2] | ||||
Income (loss) from continuing operations: | ||||||||||||||||||||||
Income (loss) from continuing operations | $ 265 | [3] | $ 184 | [3] | $ 271 | [3] | $ 216 | [3] | $ (59) | [4] | $ (347) | [4] | $ 241 | [4] | $ 127 | [4] | $ 936 | $ (38) | $ (6) | |||
Less: income from continuing operations attributable to noncontrolling interests | 110 | 210 | 202 | |||||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | $ 826 | $ (248) | $ (208) | |||||||||||||||||||
Basic per share | $ 0.71 | $ 0.23 | $ 0.40 | $ 0.31 | $ (0.24) | $ (0.79) | $ 0.39 | $ 0.14 | $ 1.66 | $ (0.50) | $ (0.42) | |||||||||||
Diluted per share | $ 0.70 | $ 0.23 | $ 0.40 | $ 0.31 | $ (0.24) | $ (0.79) | $ 0.39 | $ 0.14 | $ 1.65 | $ (0.50) | $ (0.42) | |||||||||||
Loss from discontinued operations: | ||||||||||||||||||||||
Loss from discontinued operations, net of taxes | $ 0 | $ (9) | $ 0 | $ 0 | $ (4) | $ 15 | $ (21) | $ (19) | $ (9) | $ (29) | $ (407) | |||||||||||
Less: income from discontinued operations, net of taxes, attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||
Loss from discontinued operations, net of taxes, available to Genworth Financial, Inc.'s common stockholders | $ (9) | $ (29) | $ (407) | |||||||||||||||||||
Basic per share | $ (0.02) | $ (0.06) | $ (0.82) | |||||||||||||||||||
Diluted per share | $ (0.02) | $ (0.06) | $ (0.82) | |||||||||||||||||||
Net income (loss): | ||||||||||||||||||||||
Income (loss) from continuing operations | 265 | [3] | 184 | [3] | 271 | [3] | 216 | [3] | (59) | [4] | (347) | [4] | 241 | [4] | 127 | [4] | $ 936 | $ (38) | $ (6) | |||
Loss from discontinued operations, net of taxes | 0 | (9) | 0 | 0 | (4) | 15 | (21) | (19) | (9) | (29) | (407) | |||||||||||
Net income (loss) | 265 | [3] | 175 | [3] | 271 | [3] | 216 | [3] | (63) | [4] | (332) | [4] | 220 | [4] | 108 | [4] | 927 | (67) | (413) | |||
Less: net income attributable to noncontrolling interests | (88) | [5] | 68 | [5] | 69 | [5] | 61 | [5] | 59 | 48 | 48 | 55 | 110 | 210 | 202 | |||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 353 | [3] | $ 107 | [3] | $ 202 | [3] | $ 155 | [3] | $ (122) | $ (380) | $ 172 | $ 53 | $ 817 | $ (277) | $ (615) | |||||||
Basic per share | $ 0.71 | $ 0.21 | $ 0.40 | $ 0.31 | $ (0.25) | $ (0.76) | $ 0.35 | $ 0.11 | $ 1.64 | $ (0.56) | $ (1.24) | |||||||||||
Diluted per share | $ 0.70 | $ 0.21 | $ 0.40 | $ 0.31 | $ (0.25) | $ (0.76) | $ 0.34 | $ 0.11 | $ 1.63 | $ (0.56) | $ (1.24) | |||||||||||
[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 months ended September 30, 2016 and December 31, 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, RSUs and SARs of 2.2 million and 2.5 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 ended September 30, 2016 and December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.9 million, respectively. | |||||||||||||||||||||
[2] | 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 years ended December 31, 2016 and 2015, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units ("RSUs") and stock appreciation rights ("SARs") of 2.0 million and 1.6 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 years ended December 31, 2016 and 2015, dilutive potential weighted-average common shares outstanding would have been 500.3 million and 499.0 million, respectively. | |||||||||||||||||||||
[3] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | |||||||||||||||||||||
[4] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. | |||||||||||||||||||||
[5] | We completed a review of the premium earnings pattern in our Australian mortgage insurance business, as described above, which resulted in an unfavorable adjustment to net income (loss) attributable to noncontrolling interests of $151 million. |
Earnings (Loss) Per Share (Pare
Earnings (Loss) Per Share (Parenthetical) (Detail) - shares shares in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share Disclosure [Line Items] | ||||
Weighted-average diluted common shares outstanding, antidilutive securities (stock options, RSUs and SARs) | 2.5 | 2.2 | 2 | 1.6 |
Weighted-average number of diluted shares if not in a loss position | 500.9 | 500.5 | 500.3 | 499 |
Net Investment Income (Detail)
Net Investment Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 3,288 | $ 3,243 | $ 3,226 | |
Expenses and fees | (88) | (84) | (88) | |
Net investment income | 3,200 | 3,159 | 3,138 | |
Fixed maturity securities - taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 2,578 | 2,565 | 2,558 | |
Fixed maturity securities - non-taxable | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 12 | 12 | 12 | |
Commercial mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 306 | 318 | 337 | |
Restricted commercial mortgage loans related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | [1] | 9 | 10 | 14 |
Equity Securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 36 | 28 | 15 | |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | [2] | 157 | 141 | 135 |
Restricted other invested assets related to securitization entities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | [1] | 1 | 3 | 5 |
Policy Loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | 153 | 146 | 137 | |
Cash, cash equivalents and short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 36 | $ 20 | $ 13 | |
[1] | See note 17 for additional information related to consolidated securitization entities. | |||
[2] | Included in other invested assets was $2 million, $11 million and $9 million of net investment income related to trading securities for the years ended December 31, 2017, 2016 and 2015, respectively. |
Net Investment Income (Parenthe
Net Investment Income (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 3,288 | $ 3,243 | $ 3,226 | |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | [1] | 157 | 141 | 135 |
Trading Securities | Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Gross investment income before expenses and fees | $ 2 | $ 11 | $ 9 | |
[1] | Included in other invested assets was $2 million, $11 million and $9 million of net investment income related to trading securities for the years ended December 31, 2017, 2016 and 2015, respectively. |
Net Investment Gains (Losses) (
Net Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Investments [Abstract] | ||||
Realized gains | $ 229 | $ 249 | $ 102 | |
Realized losses | (66) | (121) | (82) | |
Net realized gains (losses) on available-for-sale securities | 163 | 128 | 20 | |
Total other-than-temporary impairments | (6) | (40) | (28) | |
Portion of other-than-temporary impairments included in other comprehensive income (loss) | 0 | 0 | 1 | |
Net other-than-temporary impairments | (6) | (40) | (27) | |
Trading securities | 1 | 10 | (7) | |
Commercial mortgage loans | 3 | 1 | 7 | |
Net gains (losses) related to securitization entities | [1] | 7 | (50) | 5 |
Derivative instruments | [2] | 97 | 20 | (76) |
Contingent consideration adjustment | 0 | (2) | 2 | |
Other | 0 | 5 | 1 | |
Net investment gains (losses) | $ 265 | $ 72 | $ (75) | |
[1] | See note 17 for additional information related to consolidated securitization entities. | |||
[2] | 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 | 12 Months Ended | ||
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($) | |
Schedule of Investments [Line Items] | |||
Aggregate fair value of securities sold | $ 2,023 | $ 1,881 | $ 1,827 |
Aggregate fair value of securities sold, percentage of book value | 97.00% | 95.00% | 96.00% |
Less than 12 months, average fair value percentage below cost for securities in a continuous loss position | 1.00% | ||
12 months or more, Gross unrealized losses | $ 143 | $ 134 | |
Investments subject to call provisions | $ 12,960 | ||
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 | |
Commercial mortgage loans on nonaccrual status, past due less than 90 days | $ 0 | ||
Commercial mortgage loans modified or extended, number of loans | Loan | 10 | 16 | |
Commercial mortgage loans modified or extended, carrying value | $ 27 | $ 85 | |
Number of loans modified to troubled debt restructuring | Loan | 1 | ||
Troubled debt restructuring, loan | $ 1 | ||
Commercial mortgage loans, recorded investment | 6,353 | 6,125 | |
Investments in partnerships or similar entities generally considered VIEs | 222 | 178 | |
Floating rate commercial mortgage loans | |||
Schedule of Investments [Line Items] | |||
Commercial mortgage loans, recorded investment | 0 | 0 | |
Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
12 months or more, Gross unrealized losses | 138 | 116 | |
Fixed maturity securities | Non-U.S. corporate | |||
Schedule of Investments [Line Items] | |||
12 months or more, Gross unrealized losses | 21 | 25 | |
Fixed maturity securities | Less Than 20 Percent Below Cost | |||
Schedule of Investments [Line Items] | |||
12 months or more, Gross unrealized losses | $ 136 | 90 | |
12 months or more, average fair value percentage below cost for securities in a continuous loss position | 4.00% | ||
Stated percentage below cost of available-for-sale securities in a continuous loss position for twelve months or longer | 20.00% | ||
Fixed maturity securities | More Than 20% Below Cost | Non-U.S. corporate | |||
Schedule of Investments [Line Items] | |||
12 months or more, Gross unrealized losses | $ 2 | ||
Stated percentage below cost of available-for-sale securities in a continuous loss position for twelve months or longer | 20.00% | ||
Investment grade | |||
Schedule of Investments [Line Items] | |||
12 months or more, Gross unrealized losses | $ 135 | 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% | ||
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 | 95.00% | ||
Utilities | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 15.00% | ||
Utilities | Fixed maturity securities | Non-U.S. corporate | |||
Schedule of Investments [Line Items] | |||
12 months or more, Gross unrealized losses | $ 3 | 1 | |
Finance and insurance | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 22.00% | ||
Finance and insurance | Fixed maturity securities | Non-U.S. corporate | |||
Schedule of Investments [Line Items] | |||
12 months or more, Gross unrealized losses | $ 3 | 1 | |
Consumer-non-cyclical | Fixed maturity securities | |||
Schedule of Investments [Line Items] | |||
Percent of investment portfolio, greater than 10% | 13.00% | ||
Consumer-non-cyclical | Fixed maturity securities | Non-U.S. corporate | |||
Schedule of Investments [Line Items] | |||
12 months or more, Gross unrealized losses | $ 3 | 0 | |
Insurance [Member] | |||
Schedule of Investments [Line Items] | |||
Securities on deposit with various state government insurance departments | 43 | 42 | |
Industrial | |||
Schedule of Investments [Line Items] | |||
Individually impaired commercial mortgage loans | 12 | ||
Impaired loans, unpaid principal balance | 15 | ||
Individually impaired loans, charge-offs | 3 | ||
Commercial mortgage loans, recorded investment | 1,628 | 1,533 | |
Office | |||
Schedule of Investments [Line Items] | |||
Individually impaired commercial mortgage loans | 6 | $ 5 | |
Impaired loans, unpaid principal balance | 6 | 6 | |
Individually impaired loans, charge-offs | $ 1 | ||
Commercial mortgage loans, recorded investment | $ 1,510 | $ 1,430 |
Credit Losses Recognized in Net
Credit Losses Recognized in Net Income (Loss) on Debt Securities (Detail) - Debt Securities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Cumulative credit losses, beginning balance | $ 42 | $ 64 | $ 83 |
Other-than-temporary impairments not previously recognized | 0 | 1 | 0 |
Securities sold, paid down or disposed | (10) | (23) | (19) |
Cumulative credit losses, ending balance | $ 32 | $ 42 | $ 64 |
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 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Adjustments to DAC, PVFP, sales inducements and benefit reserves | $ (3,451) | $ (1,611) | $ (1,070) | ||
Income taxes, net | (583) | (711) | (711) | ||
Net unrealized investment gains (losses) including noncontrolling interests | 1,160 | 1,346 | 1,349 | ||
Less: net unrealized investment gains (losses) attributable to noncontrolling interests | 75 | 84 | 95 | ||
Net unrealized investment gains (losses) | 1,085 | 1,262 | 1,254 | $ 2,453 | |
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 | 5,125 | 3,656 | 3,140 | ||
Equity securities | 69 | 12 | (10) | ||
Subtotal | [1] | $ 5,194 | $ 3,668 | $ 3,130 | |
[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 | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Investments [Abstract] | ||||
Net unrealized investment gains (losses), beginning of period | $ 1,262 | $ 1,254 | $ 2,453 | |
Unrealized gains (losses) on investment securities | 1,683 | 626 | (2,467) | |
Adjustment to DAC | [1] | (1,000) | (499) | 177 |
Adjustment to PVFP | (33) | (5) | 89 | |
Adjustment to sales inducements | (4) | (16) | 30 | |
Adjustment to benefit reserves | (803) | (21) | 290 | |
Provision for income taxes | 73 | (31) | 663 | |
Change in unrealized gains (losses) on investment securities | (84) | 54 | (1,218) | |
Reclassification adjustments to net investment (gains) losses, net of taxes | (102) | (57) | 5 | |
Change in net unrealized investment gains (losses) | (186) | (3) | (1,213) | |
Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests | (9) | (11) | (14) | |
Net unrealized investment gains (losses), end of period | $ 1,085 | $ 1,262 | $ 1,254 | |
[1] | See note 6 for additional information. |
Change in Net Unrealized Gain69
Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Net Unrealized Investment Gains Losses Included in Accumulated Other Comprehensive Income Loss [Line Items] | |||
Reclassification adjustments to net investment (gains) losses, taxes | $ 55 | $ 31 | $ (2) |
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 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | $ 57,492 | $ 57,014 |
Fair value, fixed maturity securities | 62,525 | 60,572 |
Amortized cost or cost, equity securities | 756 | 628 |
Fair value, equity securities | 820 | 632 |
Amortized cost or cost, total | 58,248 | 57,642 |
Fair value, total | 63,345 | 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 | 4,681 | 5,439 |
Fair value, fixed maturity securities | 5,548 | 6,036 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,678 | 2,515 |
Fair value, fixed maturity securities | 2,926 | 2,647 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,147 | 2,024 |
Fair value, fixed maturity securities | 2,233 | 2,107 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 25,934 | 24,943 |
Fair value, fixed maturity securities | 28,636 | 26,828 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,396 | 4,137 |
Fair value, fixed maturity securities | 4,998 | 4,550 |
Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,239 | 2,167 |
Fair value, fixed maturity securities | 2,458 | 2,300 |
Fixed maturity securities | U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 5,984 | 5,719 |
Fair value, fixed maturity securities | 6,528 | 6,097 |
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 4,314 | 4,335 |
Fair value, fixed maturity securities | 4,831 | 4,734 |
Fixed maturity securities | U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,665 | 2,473 |
Fair value, fixed maturity securities | 2,845 | 2,598 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,241 | 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 | 2,087 | 2,043 |
Fair value, fixed maturity securities | 2,355 | 2,258 |
Fixed maturity securities | U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,493 | 1,455 |
Fair value, fixed maturity securities | 1,605 | 1,530 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,160 | 1,121 |
Fair value, fixed maturity securities | 1,291 | 1,190 |
Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 355 | 332 |
Fair value, fixed maturity securities | 379 | 348 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 11,778 | 11,717 |
Fair value, fixed maturity securities | 12,611 | 12,295 |
Fixed maturity securities | Non-U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 979 | 940 |
Fair value, fixed maturity securities | 1,017 | 969 |
Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 1,337 | 1,234 |
Fair value, fixed maturity securities | 1,490 | 1,331 |
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,567 | 2,413 |
Fair value, fixed maturity securities | 2,735 | 2,538 |
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 686 | 711 |
Fair value, fixed maturity securities | 712 | 714 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 913 | 953 |
Fair value, fixed maturity securities | 982 | 987 |
Fixed maturity securities | Non-U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 958 | 928 |
Fair value, fixed maturity securities | 1,044 | 958 |
Fixed maturity securities | Non-U.S. corporate | Capital goods | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 614 | 518 |
Fair value, fixed maturity securities | 645 | 535 |
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 532 | 434 |
Fair value, fixed maturity securities | 540 | 442 |
Fixed maturity securities | Non-U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 656 | 619 |
Fair value, fixed maturity securities | 721 | 677 |
Fixed maturity securities | Non-U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 2,536 | 2,967 |
Fair value, fixed maturity securities | 2,725 | 3,144 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,831 | 4,122 |
Fair value, fixed maturity securities | 4,057 | 4,379 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,387 | 3,084 |
Fair value, fixed maturity securities | 3,446 | 3,129 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Amortized cost or cost, fixed maturity securities | 3,056 | 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 | 5,216 | 4,095 |
Gross unrealized losses, fixed maturity securities | (200) | (551) |
Gross unrealized gains, equity securities | 72 | 31 |
Gross unrealized losses, equity securities | (8) | (27) |
Gross unrealized gains | 5,288 | 4,126 |
Gross unrealized losses | (208) | (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 | 870 | 647 |
Gross unrealized losses, fixed maturity securities | (3) | (50) |
Not other-than-temporary impairments | Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 270 | 182 |
Gross unrealized losses, fixed maturity securities | (22) | (50) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 106 | 101 |
Gross unrealized losses, fixed maturity securities | (20) | (18) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 2,770 | 2,124 |
Gross unrealized losses, fixed maturity securities | (68) | (239) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Utilities | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 611 | 454 |
Gross unrealized losses, fixed maturity securities | (9) | (41) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 227 | 157 |
Gross unrealized losses, fixed maturity securities | (8) | (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 | 556 | 424 |
Gross unrealized losses, fixed maturity securities | (12) | (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 | 530 | 433 |
Gross unrealized losses, fixed maturity securities | (13) | (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 | 192 | 157 |
Gross unrealized losses, fixed maturity securities | (12) | (32) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Industrial | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 106 | 76 |
Gross unrealized losses, fixed maturity securities | (1) | (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 | 273 | 228 |
Gross unrealized losses, fixed maturity securities | (5) | (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 | 116 | 92 |
Gross unrealized losses, fixed maturity securities | (4) | (17) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Transportation | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 134 | 86 |
Gross unrealized losses, fixed maturity securities | (3) | (17) |
Not other-than-temporary impairments | Fixed maturity securities | U.S. corporate | Other | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 25 | 17 |
Gross unrealized losses, fixed maturity securities | (1) | (1) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 866 | 669 |
Gross unrealized losses, fixed maturity securities | (33) | (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 | 42 | 40 |
Gross unrealized losses, fixed maturity securities | (4) | (11) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Energy | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 158 | 109 |
Gross unrealized losses, fixed maturity securities | (5) | (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 | 174 | 134 |
Gross unrealized losses, fixed maturity securities | (6) | (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 | 30 | 17 |
Gross unrealized losses, fixed maturity securities | (4) | (14) |
Not other-than-temporary impairments | Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 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 | 88 | 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 | 9 | 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 | 68 | 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 | (4) | (13) |
Not other-than-temporary impairments | Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 223 | 259 |
Gross unrealized losses, fixed maturity securities | (11) | (12) |
Not other-than-temporary impairments | Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 94 | 98 |
Gross unrealized losses, fixed maturity securities | (37) | (56) |
Not other-than-temporary impairments | Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Gross unrealized gains, fixed maturity securities | 17 | 15 |
Gross unrealized losses, fixed maturity securities | (6) | (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 | Dec. 31, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 6,090 | $ 12,697 |
Less than 12 months, Gross unrealized losses | $ (65) | $ (444) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,039 | 1,872 |
12 months or more, Fair value | $ 3,661 | $ 1,737 |
12 months or more, Gross unrealized losses | $ (143) | $ (134) |
12 months or more, Number of securities in a continuous loss position | Securities | 587 | 322 |
Fair value | $ 9,751 | $ 14,434 |
Gross unrealized losses | $ (208) | $ (578) |
Number of securities in a continuous loss position | Securities | 1,626 | 2,194 |
Investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 5,867 | $ 12,339 |
Less than 12 months, Gross unrealized losses | $ (55) | $ (432) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 898 | 1,657 |
12 months or more, Fair value | $ 3,488 | $ 1,354 |
12 months or more, Gross unrealized losses | $ (135) | $ (108) |
12 months or more, Number of securities in a continuous loss position | Securities | 528 | 250 |
Fair value | $ 9,355 | $ 13,693 |
Gross unrealized losses | $ (190) | $ (540) |
Number of securities in a continuous loss position | Securities | 1,426 | 1,907 |
Below investment grade | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 223 | $ 358 |
Less than 12 months, Gross unrealized losses | $ (10) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 141 | 215 |
12 months or more, Fair value | $ 173 | $ 383 |
12 months or more, Gross unrealized losses | $ (8) | $ (26) |
12 months or more, Number of securities in a continuous loss position | Securities | 59 | 72 |
Fair value | $ 396 | $ 741 |
Gross unrealized losses | $ (18) | $ (38) |
Number of securities in a continuous loss position | Securities | 200 | 287 |
Fixed maturity securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 6,016 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (62) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 905 | 1,690 |
12 months or more, Fair value | $ 3,561 | $ 1,623 |
12 months or more, Gross unrealized losses | $ (138) | $ (116) |
12 months or more, Number of securities in a continuous loss position | Securities | 529 | 275 |
Fair value | $ 9,577 | $ 14,201 |
Gross unrealized losses | $ (200) | $ (551) |
Number of securities in a continuous loss position | Securities | 1,434 | 1,965 |
Fixed maturity securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 6,016 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (62) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 905 | 1,690 |
12 months or more, Fair value | $ 3,555 | $ 1,543 |
12 months or more, Gross unrealized losses | $ (136) | $ (90) |
12 months or more, Number of securities in a continuous loss position | Securities | 526 | 267 |
Fair value | $ 9,571 | $ 14,121 |
Gross unrealized losses | $ (198) | $ (525) |
Number of securities in a continuous loss position | Securities | 1,431 | 1,957 |
Fixed maturity securities | 20 To 50 percent below cost | ||
Schedule of Investments [Line Items] | ||
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 | $ 6 | $ 80 |
12 months or more, Gross unrealized losses | $ (2) | $ (26) |
12 months or more, Number of securities in a continuous loss position | Securities | 3 | 8 |
Fair value | $ 6 | $ 80 |
Gross unrealized losses | $ (2) | $ (26) |
Number of securities in a continuous loss position | Securities | 3 | 8 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 78 | $ 1,074 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (50) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 21 | 37 |
12 months or more, Fair value | $ 94 | $ 0 |
12 months or more, Gross unrealized losses | $ (2) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 7 | 0 |
Fair value | $ 172 | $ 1,074 |
Gross unrealized losses | $ (3) | $ (50) |
Number of securities in a continuous loss position | Securities | 28 | 37 |
Fixed maturity securities | State and Political Subdivisions | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 125 | $ 644 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (32) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 35 | 109 |
12 months or more, Fair value | $ 327 | $ 142 |
12 months or more, Gross unrealized losses | $ (21) | $ (18) |
12 months or more, Number of securities in a continuous loss position | Securities | 42 | 12 |
Fair value | $ 452 | $ 786 |
Gross unrealized losses | $ (22) | $ (50) |
Number of securities in a continuous loss position | Securities | 77 | 121 |
Fixed maturity securities | Non-U.S. government | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 583 | $ 497 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (18) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 26 | 51 |
12 months or more, Fair value | $ 239 | $ 0 |
12 months or more, Gross unrealized losses | $ (13) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 20 | 0 |
Fair value | $ 822 | $ 497 |
Gross unrealized losses | $ (20) | $ (18) |
Number of securities in a continuous loss position | Securities | 46 | 51 |
Fixed maturity securities | U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,871 | $ 5,221 |
Less than 12 months, Gross unrealized losses | $ (26) | $ (190) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 296 | 711 |
12 months or more, Fair value | $ 1,347 | $ 662 |
12 months or more, Gross unrealized losses | $ (42) | $ (49) |
12 months or more, Number of securities in a continuous loss position | Securities | 190 | 94 |
Fair value | $ 3,218 | $ 5,883 |
Gross unrealized losses | $ (68) | $ (239) |
Number of securities in a continuous loss position | Securities | 486 | 805 |
Fixed maturity securities | Non-U.S. corporate | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1,323 | $ 2,257 |
Less than 12 months, Gross unrealized losses | $ (12) | $ (66) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 217 | 330 |
12 months or more, Fair value | $ 548 | $ 408 |
12 months or more, Gross unrealized losses | $ (21) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 77 | 57 |
Fair value | $ 1,871 | $ 2,665 |
Gross unrealized losses | $ (33) | $ (91) |
Number of securities in a continuous loss position | Securities | 294 | 387 |
Fixed maturity securities | Residential mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 707 | $ 725 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (11) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 81 | 100 |
12 months or more, Fair value | $ 130 | $ 58 |
12 months or more, Gross unrealized losses | $ (4) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 46 | 35 |
Fair value | $ 837 | $ 783 |
Gross unrealized losses | $ (11) | $ (12) |
Number of securities in a continuous loss position | Securities | 127 | 135 |
Fixed maturity securities | Commercial mortgage-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 476 | $ 1,091 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (55) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 69 | 168 |
12 months or more, Fair value | $ 646 | $ 25 |
12 months or more, Gross unrealized losses | $ (33) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 90 | 9 |
Fair value | $ 1,122 | $ 1,116 |
Gross unrealized losses | $ (37) | $ (56) |
Number of securities in a continuous loss position | Securities | 159 | 177 |
Fixed maturity securities | Other asset-backed | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 853 | $ 1,069 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (13) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 160 | 184 |
12 months or more, Fair value | $ 230 | $ 328 |
12 months or more, Gross unrealized losses | $ (2) | $ (22) |
12 months or more, Number of securities in a continuous loss position | Securities | 57 | 68 |
Fair value | $ 1,083 | $ 1,397 |
Gross unrealized losses | $ (6) | $ (35) |
Number of securities in a continuous loss position | Securities | 217 | 252 |
Equity Securities | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 74 | $ 119 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (9) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 134 | 182 |
12 months or more, Fair value | $ 100 | $ 114 |
12 months or more, Gross unrealized losses | $ (5) | $ (18) |
12 months or more, Number of securities in a continuous loss position | Securities | 58 | 47 |
Fair value | $ 174 | $ 233 |
Gross unrealized losses | $ (8) | $ (27) |
Number of securities in a continuous loss position | Securities | 192 | 229 |
Equity Securities | Less Than 20 Percent Below Cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 74 | $ 118 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 134 | 167 |
12 months or more, Fair value | $ 100 | $ 101 |
12 months or more, Gross unrealized losses | $ (5) | $ (14) |
12 months or more, Number of securities in a continuous loss position | Securities | 58 | 38 |
Fair value | $ 174 | $ 219 |
Gross unrealized losses | $ (8) | $ (22) |
Number of securities in a continuous loss position | Securities | 192 | 205 |
Equity Securities | 20 To 50 percent below cost | ||
Schedule of Investments [Line Items] | ||
Less than 12 months, Fair value | $ 1 | |
Less than 12 months, Gross unrealized losses | $ (1) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 15 | |
12 months or more, Fair value | $ 13 | |
12 months or more, Gross unrealized losses | $ (4) | |
12 months or more, Number of securities in a continuous loss position | Securities | 9 | |
Fair value | $ 14 | |
Gross unrealized losses | $ (5) | |
Number of securities in a continuous loss position | Securities | 24 |
Gross Unrealized Losses and F72
Gross Unrealized Losses and Fair Value of Corporate Securities Based on Industries (Detail) $ in Millions | Dec. 31, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 6,090 | $ 12,697 |
Less than 12 months, Gross unrealized losses | $ (65) | $ (444) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 1,039 | 1,872 |
12 months or more, Fair value | $ 3,661 | $ 1,737 |
12 months or more, Gross unrealized losses | $ (143) | $ (134) |
12 months or more, Number of securities in a continuous loss position | Securities | 587 | 322 |
Fair value | $ 9,751 | $ 14,434 |
Gross unrealized losses | $ (208) | $ (578) |
Number of securities in a continuous loss position | Securities | 1,626 | 2,194 |
Fixed maturity securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 6,016 | $ 12,578 |
Less than 12 months, Gross unrealized losses | $ (62) | $ (435) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 905 | 1,690 |
12 months or more, Fair value | $ 3,561 | $ 1,623 |
12 months or more, Gross unrealized losses | $ (138) | $ (116) |
12 months or more, Number of securities in a continuous loss position | Securities | 529 | 275 |
Fair value | $ 9,577 | $ 14,201 |
Gross unrealized losses | $ (200) | $ (551) |
Number of securities in a continuous loss position | Securities | 1,434 | 1,965 |
Fixed maturity securities | U.S. corporate | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 1,871 | $ 5,221 |
Less than 12 months, Gross unrealized losses | $ (26) | $ (190) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 296 | 711 |
12 months or more, Fair value | $ 1,347 | $ 662 |
12 months or more, Gross unrealized losses | $ (42) | $ (49) |
12 months or more, Number of securities in a continuous loss position | Securities | 190 | 94 |
Fair value | $ 3,218 | $ 5,883 |
Gross unrealized losses | $ (68) | $ (239) |
Number of securities in a continuous loss position | Securities | 486 | 805 |
Fixed maturity securities | U.S. corporate | Utilities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 181 | $ 855 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (39) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 33 | 130 |
12 months or more, Fair value | $ 219 | $ 21 |
12 months or more, Gross unrealized losses | $ (7) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 36 | 5 |
Fair value | $ 400 | $ 876 |
Gross unrealized losses | $ (9) | $ (41) |
Number of securities in a continuous loss position | Securities | 69 | 135 |
Fixed maturity securities | U.S. corporate | Energy | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 106 | $ 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 | $ 140 | $ 276 |
12 months or more, Gross unrealized losses | $ (7) | $ (19) |
12 months or more, Number of securities in a continuous loss position | Securities | 15 | 38 |
Fair value | $ 246 | $ 466 |
Gross unrealized losses | $ (8) | $ (24) |
Number of securities in a continuous loss position | Securities | 37 | 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 | $ 626 | $ 1,438 |
Less than 12 months, Gross unrealized losses | $ (6) | $ (38) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 91 | 177 |
12 months or more, Fair value | $ 222 | $ 113 |
12 months or more, Gross unrealized losses | $ (6) | $ (8) |
12 months or more, Number of securities in a continuous loss position | Securities | 30 | 15 |
Fair value | $ 848 | $ 1,551 |
Gross unrealized losses | $ (12) | $ (46) |
Number of securities in a continuous loss position | Securities | 121 | 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 | $ 299 | $ 921 |
Less than 12 months, Gross unrealized losses | $ (7) | $ (34) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 46 | 117 |
12 months or more, Fair value | $ 221 | $ 0 |
12 months or more, Gross unrealized losses | $ (6) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 31 | 0 |
Fair value | $ 520 | $ 921 |
Gross unrealized losses | $ (13) | $ (34) |
Number of securities in a continuous loss position | Securities | 77 | 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 | $ 217 | $ 507 |
Less than 12 months, Gross unrealized losses | $ (4) | $ (22) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 32 | 70 |
12 months or more, Fair value | $ 210 | $ 126 |
12 months or more, Gross unrealized losses | $ (8) | $ (10) |
12 months or more, Number of securities in a continuous loss position | Securities | 29 | 17 |
Fair value | $ 427 | $ 633 |
Gross unrealized losses | $ (12) | $ (32) |
Number of securities in a continuous loss position | Securities | 61 | 87 |
Fixed maturity securities | U.S. corporate | Industrial | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 226 | |
Less than 12 months, Gross unrealized losses | $ (7) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 38 | |
12 months or more, Fair value | $ 62 | $ 77 |
12 months or more, Gross unrealized losses | $ (1) | $ (7) |
12 months or more, Number of securities in a continuous loss position | Securities | 9 | 10 |
Fair value | $ 62 | $ 303 |
Gross unrealized losses | $ (1) | $ (14) |
Number of securities in a continuous loss position | Securities | 9 | 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 | $ 176 | $ 322 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (12) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 25 | 50 |
12 months or more, Fair value | $ 81 | $ 6 |
12 months or more, Gross unrealized losses | $ (3) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 14 | 1 |
Fair value | $ 257 | $ 328 |
Gross unrealized losses | $ (5) | $ (13) |
Number of securities in a continuous loss position | Securities | 39 | 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 | $ 137 | $ 431 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (16) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 24 | 56 |
12 months or more, Fair value | $ 95 | $ 26 |
12 months or more, Gross unrealized losses | $ (2) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 6 |
Fair value | $ 232 | $ 457 |
Gross unrealized losses | $ (4) | $ (17) |
Number of securities in a continuous loss position | Securities | 37 | 62 |
Fixed maturity securities | U.S. corporate | Transportation | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 117 | $ 302 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (16) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 21 | 41 |
12 months or more, Fair value | $ 97 | $ 17 |
12 months or more, Gross unrealized losses | $ (2) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 13 | 2 |
Fair value | $ 214 | $ 319 |
Gross unrealized losses | $ (3) | $ (17) |
Number of securities in a continuous loss position | Securities | 34 | 43 |
Fixed maturity securities | U.S. corporate | Other | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 12 | $ 29 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (1) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 2 | 2 |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 12 | $ 29 |
Gross unrealized losses | $ (1) | $ (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 | $ 1,323 | $ 2,257 |
Less than 12 months, Gross unrealized losses | $ (12) | $ (66) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 217 | 330 |
12 months or more, Fair value | $ 548 | $ 408 |
12 months or more, Gross unrealized losses | $ (21) | $ (25) |
12 months or more, Number of securities in a continuous loss position | Securities | 77 | 57 |
Fair value | $ 1,871 | $ 2,665 |
Gross unrealized losses | $ (33) | $ (91) |
Number of securities in a continuous loss position | Securities | 294 | 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 | $ 113 | $ 240 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (10) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 23 | 32 |
12 months or more, Fair value | $ 72 | $ 14 |
12 months or more, Gross unrealized losses | $ (3) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 1 |
Fair value | $ 185 | $ 254 |
Gross unrealized losses | $ (4) | $ (11) |
Number of securities in a continuous loss position | Securities | 31 | 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 | $ 118 | $ 105 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (3) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 19 | 18 |
12 months or more, Fair value | $ 74 | $ 91 |
12 months or more, Gross unrealized losses | $ (3) | $ (9) |
12 months or more, Number of securities in a continuous loss position | Securities | 12 | 16 |
Fair value | $ 192 | $ 196 |
Gross unrealized losses | $ (5) | $ (12) |
Number of securities in a continuous loss position | Securities | 31 | 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 | $ 347 | $ 474 |
Less than 12 months, Gross unrealized losses | $ (3) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 56 | 79 |
12 months or more, Fair value | $ 117 | $ 71 |
12 months or more, Gross unrealized losses | $ (3) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 19 | 16 |
Fair value | $ 464 | $ 545 |
Gross unrealized losses | $ (6) | $ (9) |
Number of securities in a continuous loss position | Securities | 75 | 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 | $ 69 | $ 308 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (14) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 11 | 30 |
12 months or more, Fair value | $ 60 | $ 0 |
12 months or more, Gross unrealized losses | $ (3) | $ 0 |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 0 |
Fair value | $ 129 | $ 308 |
Gross unrealized losses | $ (4) | $ (14) |
Number of securities in a continuous loss position | Securities | 17 | 30 |
Fixed maturity securities | Non-U.S. corporate | Technology and communications | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 107 | $ 232 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (9) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 18 | 34 |
12 months or more, Fair value | $ 30 | $ 28 |
12 months or more, Gross unrealized losses | $ (1) | $ (1) |
12 months or more, Number of securities in a continuous loss position | Securities | 6 | 2 |
Fair value | $ 137 | $ 260 |
Gross unrealized losses | $ (2) | $ (10) |
Number of securities in a continuous loss position | Securities | 24 | 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 | $ 52 | $ 165 |
Less than 12 months, Gross unrealized losses | $ (5) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 9 | 21 |
12 months or more, Fair value | $ 38 | $ 91 |
12 months or more, Gross unrealized losses | $ (2) | $ (4) |
12 months or more, Number of securities in a continuous loss position | Securities | 5 | 10 |
Fair value | $ 90 | $ 256 |
Gross unrealized losses | $ (2) | $ (9) |
Number of securities in a continuous loss position | Securities | 14 | 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 | $ 54 | $ 104 |
Less than 12 months, Gross unrealized losses | $ (2) | |
Less than 12 months, Number of securities in a continuous loss position | Securities | 11 | 14 |
12 months or more, Fair value | $ 46 | $ 28 |
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 | $ 100 | $ 132 |
Gross unrealized losses | $ (2) | $ (4) |
Number of securities in a continuous loss position | Securities | 14 | 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 | $ 131 | $ 90 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (2) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 21 | 17 |
12 months or more, Fair value | $ 0 | |
12 months or more, Gross unrealized losses | $ 0 | |
12 months or more, Number of securities in a continuous loss position | Securities | 0 | |
Fair value | $ 131 | $ 90 |
Gross unrealized losses | $ (1) | $ (2) |
Number of securities in a continuous loss position | Securities | 21 | 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 | $ 47 | $ 106 |
Less than 12 months, Gross unrealized losses | $ (1) | $ (5) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 7 | 16 |
12 months or more, Fair value | $ 64 | $ 25 |
12 months or more, Gross unrealized losses | $ (2) | $ (2) |
12 months or more, Number of securities in a continuous loss position | Securities | 8 | 2 |
Fair value | $ 111 | $ 131 |
Gross unrealized losses | $ (3) | $ (7) |
Number of securities in a continuous loss position | Securities | 15 | 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 | $ 285 | $ 433 |
Less than 12 months, Gross unrealized losses | $ (2) | $ (8) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 42 | 69 |
12 months or more, Fair value | $ 47 | $ 60 |
12 months or more, Gross unrealized losses | $ (2) | $ (5) |
12 months or more, Number of securities in a continuous loss position | Securities | 10 | 8 |
Fair value | $ 332 | $ 493 |
Gross unrealized losses | $ (4) | $ (13) |
Number of securities in a continuous loss position | Securities | 52 | 77 |
Fixed maturity securities | Corporate Debt Securities | ||
Available for Sale Securities Continuous Unrealized Loss Position [Line Items] | ||
Less than 12 months, Fair value | $ 3,194 | $ 7,478 |
Less than 12 months, Gross unrealized losses | $ (38) | $ (256) |
Less than 12 months, Number of securities in a continuous loss position | Securities | 513 | 1,041 |
12 months or more, Fair value | $ 1,895 | $ 1,070 |
12 months or more, Gross unrealized losses | $ (63) | $ (74) |
12 months or more, Number of securities in a continuous loss position | Securities | 267 | 151 |
Fair value | $ 5,089 | $ 8,548 |
Gross unrealized losses | $ (101) | $ (330) |
Number of securities in a continuous loss position | Securities | 780 | 1,192 |
Scheduled Maturity Distribution
Scheduled Maturity Distribution of Fixed Maturity Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized cost or cost | ||
Due one year or less | $ 1,723 | |
Due after one year through five years | 10,835 | |
Due after five years through ten years | 12,326 | |
Due after ten years | 22,334 | |
Subtotal | 47,218 | |
Amortized cost or cost, fixed maturity securities | 57,492 | $ 57,014 |
Fair value | ||
Due one year or less | 1,738 | |
Due after one year through five years | 11,197 | |
Due after five years through ten years | 12,865 | |
Due after ten years | 26,154 | |
Subtotal | 51,954 | |
Fair value, fixed maturity securities | 62,525 | $ 60,572 |
Residential mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,831 | |
Fair value | ||
Fixed maturity securities | 4,057 | |
Commercial mortgage-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,387 | |
Fair value | ||
Fixed maturity securities | 3,446 | |
Other asset-backed | ||
Amortized cost or cost | ||
Fixed maturity securities | 3,056 | |
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 | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,353 | $ 6,125 |
Unamortized balance of loan origination fees and costs | $ (3) | $ (2) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (9) | $ (12) |
Total | 6,341 | 6,111 |
Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 6,353 | 6,125 |
Unamortized balance of loan origination fees and costs | $ (3) | $ (2) |
% of total | 100.00% | 100.00% |
Allowance for losses | $ (9) | $ (12) |
Total | 6,341 | 6,111 |
South Atlantic | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,625 | $ 1,546 |
% of total | 26.00% | 25.00% |
Pacific | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,622 | $ 1,567 |
% of total | 26.00% | 27.00% |
Middle Atlantic | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 927 | $ 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 | $ 446 | $ 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 | $ 394 | $ 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 | $ 336 | $ 311 |
% of total | 5.00% | 5.00% |
New England | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 239 | $ 206 |
% of total | 4.00% | 3.00% |
East South Central | Commercial Mortgage Loan | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 208 | $ 203 |
% of total | 3.00% | 3.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,239 | $ 2,178 |
% of total | 35.00% | 36.00% |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,628 | $ 1,533 |
% of total | 26.00% | 25.00% |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,510 | $ 1,430 |
% of total | 24.00% | 23.00% |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 478 | $ 455 |
% of total | 8.00% | 7.00% |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 223 | $ 245 |
% of total | 3.00% | 4.00% |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 275 | $ 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,353 | $ 6,125 |
% of total | 100.00% | 100.00% |
Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,239 | $ 2,178 |
% of total | 35.00% | 36.00% |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,628 | $ 1,533 |
% of total | 26.00% | 25.00% |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,510 | $ 1,430 |
% of total | 24.00% | 23.00% |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 478 | $ 455 |
% of total | 8.00% | 7.00% |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 223 | $ 245 |
% of total | 3.00% | 4.00% |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 275 | $ 284 |
% of total | 4.00% | 5.00% |
31-60 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 5 | $ 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 | $ 5 | $ 0 |
31-60 days past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 1 |
31-60 days past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
31-60 days past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
% of total | 0.00% | 0.00% |
61-90 days past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 0 | $ 0 |
61-90 days past due | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
61-90 days past due | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 0 | 0 |
Greater than 90 days past due | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6 | $ 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 | 6 | 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 | $ 11 | $ 13 |
% of total | 0.00% | 0.00% |
Total past due | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 5 | $ 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 | $ 6,342 | $ 6,112 |
% of total | 100.00% | 100.00% |
Current | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,234 | $ 2,178 |
Current | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,628 | 1,520 |
Current | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 1,504 | 1,430 |
Current | Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 478 | 455 |
Current | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 223 | 245 |
Current | Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 275 | $ 284 |
Allowance for Credit Losses and
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | $ 12 | ||
Ending balance | 9 | $ 12 | |
Ending balance | 6,353 | 6,125 | |
Allowance for Credit Losses | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 12 | 15 | $ 22 |
Charge-offs | 0 | (6) | (4) |
Recoveries | 0 | 0 | 0 |
Provision | (3) | 3 | (3) |
Ending balance | 9 | 12 | 15 |
Ending allowance for individually impaired loans | 0 | 0 | 0 |
Ending allowance for loans not individually impaired that were evaluated collectively for impairment | 9 | 12 | 15 |
Commercial Mortgage Loans Recorded Investment | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Ending balance | 6,353 | 6,125 | 6,187 |
Ending balance of individually impaired loans | 6 | 12 | 19 |
Ending balance of loans not individually impaired that were evaluated collectively for impairment | $ 6,347 | $ 6,113 | $ 6,168 |
Loan-to-Value of Commercial Mor
Loan-to-Value of Commercial Mortgage Loans by Property Type (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,353 | $ 6,125 | ||
% of total | 100.00% | 100.00% | ||
Weighted-average debt service coverage ratio | 2.09 | 1.87 | ||
Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,239 | $ 2,178 | ||
% of total | 35.00% | 36.00% | ||
Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,628 | $ 1,533 | ||
% of total | 26.00% | 25.00% | ||
Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 1,510 | $ 1,430 | ||
% of total | 24.00% | 23.00% | ||
Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 478 | $ 455 | ||
% of total | 8.00% | 7.00% | ||
Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 223 | $ 245 | ||
% of total | 3.00% | 4.00% | ||
Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 275 | $ 284 | ||
% of total | 4.00% | 5.00% | ||
Greater than 100% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2 | [1],[2] | $ 7 | [3] |
% of total | 0.00% | [1],[2] | 0.00% | [3] |
Weighted-average debt service coverage ratio | 1.04 | [1],[2] | (0.07) | [3] |
Greater than 100% | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 0 | [1],[2] | $ 0 | [3] |
Greater than 100% | Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1],[2] | 0 | [3] |
Greater than 100% | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 2 | [1],[2] | 7 | [3] |
Greater than 100% | Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1],[2] | 0 | [3] |
Greater than 100% | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1],[2] | 0 | [3] |
Greater than 100% | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 0 | [1],[2] | 0 | [3] |
0% - 50% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,618 | $ 2,094 | ||
% of total | 41.00% | 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 | $ 919 | $ 743 | ||
0% - 50% | Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 731 | 605 | ||
0% - 50% | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 575 | 431 | ||
0% - 50% | Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 226 | 188 | ||
0% - 50% | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 99 | 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 | $ 1,437 | $ 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 | $ 500 | $ 511 | ||
51% - 60% | Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 363 | 430 | ||
51% - 60% | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 386 | 310 | ||
51% - 60% | Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 101 | 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 | 28 | 30 | ||
61% - 75% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 2,276 | $ 2,511 | ||
% of total | 36.00% | 41.00% | ||
Weighted-average debt service coverage ratio | 1.62 | 1.61 | ||
61% - 75% | Retail | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 820 | $ 913 | ||
61% - 75% | Industrial | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 532 | 484 | ||
61% - 75% | Office | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 534 | 656 | ||
61% - 75% | Apartments | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 146 | 173 | ||
61% - 75% | Mixed Use | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 65 | 91 | ||
61% - 75% | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 179 | 194 | ||
76% - 100% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 20 | $ 56 | ||
% of total | 0.00% | 1.00% | ||
Weighted-average debt service coverage ratio | 0.62 | 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 | 13 | 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 102%. 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] | Original notional value was $39 million. | |||
[3] | Included a loan with a recorded investment of $7 million in good standing, where borrowers continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Loan-to-Value of Commercial M78
Loan-to-Value of Commercial Mortgage Loans by Property Type (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | $ 6,353 | $ 6,125 | ||
Greater than 100% | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Commercial mortgage loans, recorded investment | 2 | [1],[2] | 7 | [3] |
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 | 102.00% | 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 102%. 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] | Original notional value was $39 million. | |||
[3] | Included a loan with a recorded investment of $7 million in good standing, where borrowers continued to make timely payments, with a loan-to-value of 105%. We evaluated this loan on an individual basis and as it is in good standing, the current recorded investment is expected to be recoverable. |
Debt Service Coverage Ratio for
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 6,353 | $ 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 | $ 6,353 | $ 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 | $ 2,239 | $ 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 | $ 2,239 | $ 2,178 |
Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,628 | $ 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 | $ 1,628 | $ 1,533 |
Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,510 | $ 1,430 |
% of total | 24.00% | 23.00% |
Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,510 | $ 1,430 |
Apartments | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 478 | $ 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 | $ 478 | $ 455 |
Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 223 | $ 245 |
% of total | 3.00% | 4.00% |
Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 223 | $ 245 |
Other | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 275 | $ 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 | $ 275 | $ 284 |
Less than 1.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 120 | $ 251 |
% of total | 2.00% | 4.00% |
Weighted-average loan-to-value | 55.00% | 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 | 23 | 71 |
Less than 1.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 51 | 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 | $ 527 | $ 613 |
% of total | 8.00% | 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 | $ 235 | $ 204 |
1.00 - 1.25 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 61 | 113 |
1.00 - 1.25 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 61 | 117 |
1.00 - 1.25 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 17 | 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 | $ 749 | $ 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 | $ 301 | $ 425 |
1.26 - 1.50 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 174 | 236 |
1.26 - 1.50 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 157 | 172 |
1.26 - 1.50 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 77 | 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 | 14 | 60 |
1.51 - 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,637 | $ 2,507 |
% of total | 42.00% | 41.00% |
Weighted-average loan-to-value | 58.00% | 58.00% |
1.51 - 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 1,020 | $ 899 |
1.51 - 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 700 | 599 |
1.51 - 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 569 | 609 |
1.51 - 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 191 | 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 | 71 | 55 |
Greater than 2.00 | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 2,320 | $ 1,798 |
% of total | 36.00% | 29.00% |
Weighted-average loan-to-value | 42.00% | 45.00% |
Greater than 2.00 | Retail | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | $ 640 | $ 583 |
Greater than 2.00 | Industrial | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 670 | 514 |
Greater than 2.00 | Office | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 672 | 441 |
Greater than 2.00 | Apartments | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 193 | 153 |
Greater than 2.00 | Mixed Use | Fixed Rate Commercial Mortgage Loans | ||
Mortgage Loans on Real Estate [Line Items] | ||
Commercial mortgage loans, recorded investment | 105 | 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 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivative [Line Items] | ||||
Derivative assets, fair value | $ 290 | [1] | $ 724 | |
Derivative liabilities, fair value | 730 | [1] | 1,041 | |
Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 683 | 658 | ||
Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 47 | 383 | ||
Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 276 | 708 | ||
Interest rate swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 25 | 349 | ||
Interest rate swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 74 | 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 | [2] | 1 | ||
Equity index options | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 80 | 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 | 20 | 27 | ||
Other foreign currency contracts | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 110 | 35 | ||
GMWB embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | [2] | 250 | 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 | 419 | 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 | 75 | [1] | 241 | |
Derivative liabilities, fair value | 25 | [1] | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 75 | [1] | 241 | |
Derivative liabilities, fair value | 25 | [1] | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 25 | [1] | 203 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 74 | [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 | 1 | [1] | 4 | |
Derivatives not designated as hedges | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 215 | [1] | 483 | |
Derivative liabilities, fair value | 705 | [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 | 11 | [1] | 0 | |
Derivatives not designated as hedges | Credit default swaps related to securitization entities | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | [4] | 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 | [4] | 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 | 80 | [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 | 1 | |||
Derivatives not designated as hedges | Other foreign currency contracts | Other liabilities | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | 20 | [1] | 27 | |
Derivatives not designated as hedges | Other foreign currency contracts | Other invested assets | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | 110 | [1] | 35 | |
Derivatives not designated as hedges | GMWB embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | [5] | 250 | [1] | 303 |
Derivatives not designated as hedges | GMWB embedded derivatives | Reinsurance recoverable | ||||
Derivative [Line Items] | ||||
Derivative assets, fair value | [3] | 14 | [1] | 16 |
Derivatives not designated as hedges | Fixed index annuity embedded derivatives | Policyholder account balances | ||||
Derivative [Line Items] | ||||
Derivative liabilities, fair value | [6] | 419 | [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 $473 million and $206 million, respectively, in 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] | See note 17 for additional information related to consolidated securitization entities. | |||
[5] | Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. | |||
[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 Deri81
Schedule of Positions in Derivative Instruments (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Derivative [Line Items] | |
Reduction in derivative assets | $ 473 |
Reduction in derivative liabilities | $ 206 |
Activity Associated with Deriva
Activity Associated with Derivative Instruments (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)Policies | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | $ 23,912 | |
Additions | 11,828 | |
Maturities/ terminations | (12,433) | |
Notional amount, ending balance | 23,307 | |
Designated As Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | 11,592 | |
Additions | 391 | |
Maturities/ terminations | (806) | |
Notional amount, ending balance | 11,177 | |
Designated As Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | 11,592 | |
Additions | 391 | |
Maturities/ terminations | (806) | |
Notional amount, ending balance | 11,177 | |
Designated As Hedging Instrument | Cash Flow Hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | 11,570 | |
Additions | 391 | |
Maturities/ terminations | (806) | |
Notional amount, ending balance | 11,155 | |
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 | 11,437 | |
Maturities/ terminations | (11,627) | |
Notional amount, ending balance | 12,130 | |
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 | 167 | |
Maturities/ terminations | (19) | |
Notional amount, ending balance | 349 | |
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 | [1] |
Additions | 0 | [1] |
Maturities/ terminations | (312) | [1] |
Notional amount, ending balance | 0 | [1] |
Derivatives not designated as hedges | Equity index options | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | 2,396 | |
Additions | 2,982 | |
Maturities/ terminations | (2,958) | |
Notional amount, ending balance | 2,420 | |
Derivatives not designated as hedges | Financial futures | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | 1,398 | |
Additions | 5,639 | |
Maturities/ terminations | (5,754) | |
Notional amount, ending balance | 1,283 | |
Derivatives not designated as hedges | Equity return swaps | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | 165 | |
Additions | 265 | |
Maturities/ terminations | (334) | |
Notional amount, ending balance | 96 | |
Derivatives not designated as hedges | Other foreign currency contracts | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | 3,130 | |
Additions | 2,384 | |
Maturities/ terminations | (2,250) | |
Notional amount, ending balance | $ 3,264 | |
Derivatives not designated as hedges | GMWB embedded derivatives | ||
Derivative [Line Items] | ||
Notional amount, beginning balance | Policies | 33,238 | |
Additions | Policies | 0 | |
Maturities/ terminations | Policies | (2,788) | |
Notional amount, ending balance | Policies | 30,450 | |
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 | (482) | |
Notional amount, ending balance | Policies | 17,067 | |
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 | (90) | |
Notional amount, ending balance | Policies | 985 | |
[1] | See note 17 for additional information related to consolidated securitization entities. |
Schedule of Pre-Tax Income (Los
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in OCI | $ 94 | $ 184 | $ 79 | ||||
Gain (loss) reclassified into net loss from OCI | 139 | 123 | 118 | ||||
Gain (loss) recognized in net loss | 2 | [1] | 8 | [2] | 0 | [2] | |
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 loss from OCI | 8 | 2 | |||||
Gain (loss) recognized in net loss | 2 | [1] | 3 | [2] | 0 | [2] | |
Interest Rate Swaps Hedging Assets | Net Investment Income | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in OCI | 96 | 198 | 78 | ||||
Gain (loss) reclassified into net loss from OCI | 131 | 112 | 85 | ||||
Foreign currency swaps | Net Investment (Gains) Losses | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in OCI | 0 | ||||||
Gain (loss) reclassified into net loss from OCI | 0 | ||||||
Gain (loss) recognized in net loss | 0 | [1] | 5 | [2] | 0 | [2] | |
Foreign currency swaps | Net Investment Income | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in OCI | (2) | (4) | 2 | ||||
Gain (loss) reclassified into net loss from OCI | $ 0 | 0 | 0 | ||||
Interest Rate Swaps Hedging Liabilities | Net Investment (Gains) Losses | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in net loss | [2] | 0 | 0 | ||||
Interest Rate Swaps Hedging Liabilities | Interest Expense | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in OCI | (5) | (10) | |||||
Gain (loss) reclassified into net loss from OCI | 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 loss from OCI | 7 | ||||||
Gain (loss) recognized in net loss | [2] | 0 | 0 | ||||
Inflation indexed swaps | Net Investment Income | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in OCI | (5) | 9 | |||||
Gain (loss) reclassified into net loss from OCI | $ 2 | 0 | |||||
Forward bond purchase commitments | Net Investment (Gains) Losses | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in OCI | 0 | ||||||
Gain (loss) reclassified into net loss from OCI | 32 | ||||||
Gain (loss) recognized in net loss | [2] | 0 | |||||
Forward bond purchase commitments | Net Investment Income | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Gain (loss) recognized in OCI | 0 | ||||||
Gain (loss) reclassified into net loss from OCI | $ 1 | ||||||
[1] | Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness. | ||||||
[2] | 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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments [Abstract] | |||
Derivatives qualifying as effective accounting hedges, beginning of period | $ 2,085 | $ 2,045 | $ 2,070 |
Current period increases (decreases) in fair value, net of deferred taxes | 38 | 120 | 50 |
Reclassification to net (income), net of deferred taxes | (58) | (80) | (75) |
Derivatives qualifying as effective accounting hedges, end of period | $ 2,065 | $ 2,085 | $ 2,045 |
Reconciliation of Current Per85
Reconciliation of Current Period Changes, Net of Applicable Income Taxes, for Derivatives Qualifying as Hedges (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Current period increases (decreases) in fair value, deferred taxes | $ (56) | $ (64) | $ (29) |
Reclassification to net (income), deferred taxes | $ 81 | $ 43 | $ 43 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Oct. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivative [Line Items] | ||||||
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax | $ 2,065 | $ 2,085 | $ 2,045 | $ 2,070 | ||
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 | $ 97 | |||||
Amount reclassified to net income in connection with forecasted transactions that were no longer considered probable of occurring | 6 | 10 | ||||
Notional amount | 23,307 | 23,912 | ||||
Terminated by One Counterparty | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 800 | |||||
Derivative assets | Subject to enforceable master netting arrangement | ||||||
Derivative [Line Items] | ||||||
Amount to claim from counterparties if the downgrade provisions had been triggered | [1] | 85 | 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 $2 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2017 and 2016, respectively. | |||||
[2] | Included $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of December 31, 2016. |
Schedule of Pre-Tax Gain Income
Schedule of Pre-Tax Gain Income (Loss) Recognized in Net Income (Loss) for Effects of Derivatives not Designated as Hedges (Detail) - Derivatives not designated as hedges - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 94 | $ 11 | $ (105) | |
Interest rate swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 4 | 12 | (11) | |
Interest rate swaps related to securitization entities | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | [1] | 0 | (10) | (4) |
Foreign currency swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 14 | 4 | (22) | |
Credit default swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 0 | 1 | 1 | |
Credit default swaps related to securitization entities | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | [1] | 7 | 18 | 7 |
Equity index options | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 57 | 10 | (25) | |
Financial futures | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (43) | (111) | (34) | |
Equity return swaps | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (22) | (1) | (3) | |
Forward bond purchase commitments | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 0 | 0 | 2 | |
Other foreign currency contracts | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 75 | 24 | 10 | |
GMWB embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | 78 | 76 | (25) | |
Fixed index annuity embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | (84) | (22) | (7) | |
Indexed universal life embedded derivatives | Net Investment (Gains) Losses | ||||
Derivative [Line Items] | ||||
Pre-tax gain (loss) recognized in net loss | $ 8 | $ 10 | $ 6 | |
[1] | See note 17 for additional information related to consolidated securitization entities. |
Additional Information about De
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives assets | $ 290 | [1] | $ 724 | |
Gross amounts recognized, derivatives liabilities | 730 | [1] | 1,041 | |
Subject to enforceable master netting arrangement | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, net derivatives | 231 | 337 | ||
Gross amounts offset in the balance sheet, net derivatives | 0 | 0 | ||
Net amounts presented in the balance sheet, net derivatives | 231 | 337 | ||
Gross amounts not offset in the balance sheet, financial instruments, net derivatives | [2] | 0 | 0 | |
Collateral received | (170) | (467) | ||
Collateral pledged | 288 | 557 | ||
Over collateralization, derivatives assets | (264) | (343) | ||
Net amount | 85 | 84 | ||
Subject to enforceable master netting arrangement | Derivative assets | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives assets | [3] | 278 | 724 | |
Gross amounts offset in the balance sheet, derivatives assets | [3] | 0 | 0 | |
Net amounts presented in the balance sheet, derivatives assets | [3] | 278 | 724 | |
Gross amounts not offset in the balance sheet, financial instruments, derivatives assets | [2],[3] | (23) | (172) | |
Collateral received | [3] | (170) | (467) | |
Collateral pledged | [3] | 0 | 0 | |
Over collateralization, derivatives assets | [3] | 0 | 1 | |
Net amount, derivatives assets | [3] | 85 | 86 | |
Subject to enforceable master netting arrangement | Derivative liabilities | ||||
Derivative [Line Items] | ||||
Gross amounts recognized, derivatives liabilities | [4] | 47 | 387 | |
Gross amounts offset in the balance sheet, derivatives liabilities | [4] | 0 | 0 | |
Net amounts presented in the balance sheet, derivatives liabilities | [4] | 47 | 387 | |
Gross amounts not offset in the balance sheet, financial instruments, derivative liabilities | [2],[4] | (23) | (172) | |
Collateral pledged | [4] | (288) | (557) | |
Over collateralization, derivatives liabilities | [4] | 264 | 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 $473 million and $206 million, respectively, in 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 $2 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2017 and 2016, respectively. | |||
[4] | Included $5 million of accruals on derivatives classified as other liabilities and does not include amounts related to embedded derivatives and derivatives related to securitization entities as of December 31, 2016. |
Additional Information about 89
Additional Information about Derivative Assets and Liabilities Subject to Enforceable Master Netting Arrangement (Parenthetical) (Detail) - Subject to enforceable master netting arrangement - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | [1] | $ 47 | $ 387 |
Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | [2] | 278 | 724 |
Other assets | Derivative assets | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative assets | $ 2 | 16 | |
Other liabilities | Derivative liabilities | |||
Derivative [Line Items] | |||
Net amounts presented in the balance sheet, accruals on derivative liabilities | $ 5 | ||
[1] | Included $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 December 31, 2016. | ||
[2] | Included $2 million and $16 million of accruals on derivatives classified as other assets and does not include amounts related to embedded derivatives as of December 31, 2017 and 2016, respectively. |
Derivative Instruments Schedule
Derivative Instruments Schedule of Credit Default Swaps where we Sell Protection on Single Name Reference Entities and Fair Values (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Notional value | $ 23,307 | $ 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 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Notional value | $ 23,307 | $ 23,912 | |
Credit default swaps | Securitization Entities | Index Tranches | |||
Derivative [Line Items] | |||
Notional value | [1] | 0 | 312 |
Assets | [1] | 0 | 0 |
Liabilities | [1] | 0 | 1 |
Credit default swaps | Securitization Entities | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [1],[2] | 0 | 12 |
Assets | [1],[2] | 0 | 0 |
Liabilities | [1],[2] | 0 | 0 |
Credit default swaps | Securitization Entities | Index Tranches | Portion Backing Interest Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [1],[3] | 0 | 300 |
Assets | [1],[3] | 0 | 0 |
Liabilities | [1],[3] | 0 | 1 |
Total Credit Default Swaps on Index Tranches | |||
Derivative [Line Items] | |||
Notional value | [1] | 0 | 312 |
Assets | [1] | 0 | 0 |
Liabilities | [1] | $ 0 | $ 1 |
[1] | See note 17 for additional information related to consolidated securitization entities. | ||
[2] | Original notional value was $39 million. | ||
[3] | Original notional value was $300 million. |
Schedule of Credit Default Sw92
Schedule of Credit Default Swaps where we Sell Protection on Credit Default Swap Index Tranches and Fair Values (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | |||
Notional value | $ 23,307 | $ 23,912 | |
Securitization Entities | Credit default swaps | Index Tranches | |||
Derivative [Line Items] | |||
Notional value | [1] | 0 | 312 |
Securitization Entities | Credit default swaps | Index Tranches | Portion Backing Third-Party Borrowings Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [1],[2] | 0 | 12 |
Securitization Entities | Credit default swaps | Index Tranches | Portion Backing Interest Maturing 2017 | |||
Derivative [Line Items] | |||
Notional value | [1],[3] | 0 | $ 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] | See note 17 for additional information related to consolidated securitization entities. | ||
[2] | Original notional value was $39 million. | ||
[3] | Original notional value was $300 million. |
Activity Impacting Deferred Acq
Activity Impacting Deferred Acquisition Costs (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Deferred Policy Acquisition Costs [Line Items] | |||
Unamortized beginning balance | $ 4,241 | $ 4,569 | $ 5,200 |
Impact of foreign currency translation | 12 | 3 | (23) |
Costs deferred | 88 | 150 | 295 |
Amortization, net of interest accretion | (342) | (481) | (448) |
Impairment | 0 | 0 | (455) |
Unamortized ending balance | 3,999 | 4,241 | 4,569 |
Accumulated effect of net unrealized investment (gains) losses | (1,670) | (670) | (171) |
Ending balance | $ 2,329 | $ 3,571 | $ 4,398 |
Deferred Acquisition Costs - Ad
Deferred Acquisition Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Policy Acquisition Costs [Line Items] | ||||||
Deferred Policy acquisition costs amortization | $ 342 | $ 481 | $ 448 | |||
Accumulated effect of net unrealized investment (gains) losses | 1,670 | 670 | 171 | |||
Deferred acquisition costs | $ 3,571 | $ 4,398 | 2,329 | 3,571 | 4,398 | |
Increase in future policy benefit reserves | (803) | (21) | 290 | |||
DAC impairment related to life block transaction | 0 | 0 | $ (455) | |||
Long-term Care Insurance | ||||||
Deferred Policy Acquisition Costs [Line Items] | ||||||
Accumulated effect of net unrealized investment (gains) losses | 1,300 | |||||
Deferred acquisition costs | 0 | |||||
Increase in future policy benefit reserves | 1,000 | |||||
Unlocking | ||||||
Deferred Policy Acquisition Costs [Line Items] | ||||||
Deferred Policy acquisition costs amortization | $ 144 | $ 109 | ||||
Loss Recognition Testing | Immediate Fixed Annuity | ||||||
Deferred Policy Acquisition Costs [Line Items] | ||||||
Deferred Policy acquisition costs amortization | $ 14 | |||||
Increase in future policy benefit reserves | $ 89 | 24 | ||||
Life Block Transaction | Loss Recognition Testing | Term Life Insurance | ||||||
Deferred Policy Acquisition Costs [Line Items] | ||||||
DAC impairment related to life block transaction | $ 455 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 2,931 | $ 2,862 |
Accumulated amortization | (2,645) | (2,528) |
Present Value Of Future Profits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 2,046 | 2,079 |
Accumulated amortization | (1,959) | (1,924) |
Capitalized Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 475 | 447 |
Accumulated amortization | (384) | (352) |
Deferred Sales Inducements To Contractholders | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 280 | 275 |
Accumulated amortization | (221) | (199) |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 130 | 61 |
Accumulated amortization | $ (81) | $ (53) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to PVFP, capitalized software and other intangible assets | $ 93 | $ 17 | $ 64 |
Amortization expense related to deferred sales inducements | $ 22 | $ 21 | $ 25 |
Activity in Present Value of Fu
Activity in Present Value of Future Profits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Unamortized balance as of January 1 | $ 222 | $ 205 | $ 229 |
Interest accreted at 5.38%, 5.15% and 6.45% | 11 | 11 | 14 |
Amortization | (46) | 6 | (38) |
Unamortized balance as of December 31 | 187 | 222 | 205 |
Accumulated effect of net unrealized investment (gains) losses | (100) | (67) | (62) |
Balance as of December 31 | $ 87 | $ 155 | $ 143 |
Activity in Present Value of 98
Activity in Present Value of Future Profits (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Interest accreted percentage | 5.38% | 5.15% | 6.45% |
Percentage of PVFP Balance Net
Percentage of PVFP Balance Net of Interest Accretion, before Effect of Unrealized Investment Gains or Losses, Estimated to be Amortized Over Next Five years (Detail) | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | |
2,018 | 7.00% |
2,019 | 8.60% |
2,020 | 7.90% |
2,021 | 7.10% |
2,022 | 6.60% |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Maximum amount of individual ordinary life insurance normally retained by us on any one individual life policy | $ 5 | ||
Reinsurance recoverable | $ 17,569 | $ 17,755 | |
Minimum amount of risk-based capital General Electric Capital Corporation agreed to maintain | 150.00% | ||
Reinsurance recoveries recognized as a reduction of benefits and other changes in reserves | $ 2,788 | 3,008 | $ 2,771 |
U.S. Life Insurance Subsidiaries | Fixed maturity securities | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Assets pledged as collateral | 10,319 | 835 | |
U.S. Life Insurance Subsidiaries | Commercial Mortgage Loan | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Assets pledged as collateral | 9,680 | 523 | |
Union Fidelity Life Insurance Company | Ceded Credit Risk | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Reinsurance recoverable | $ 14,255 | $ 14,437 |
Net Domestic Life Insurance In-
Net Domestic Life Insurance In-Force (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance [Abstract] | ||||
Direct life insurance in-force | $ 625,710 | $ 658,931 | $ 686,446 | |
Amounts assumed from other companies | 793 | 861 | 899 | |
Amounts ceded to other companies | [1] | (562,463) | (491,466) | (411,340) |
Net life insurance in-force | $ 64,040 | $ 168,326 | $ 276,005 | |
Percentage of amount assumed to net | 1.00% | 0.00% | 0.00% | |
[1] | Includes amounts accounted for under the deposit method. |
Effects of Reinsurance on Premi
Effects of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance [Abstract] | |||
Direct, Written | $ 5,232 | $ 5,404 | $ 5,548 |
Assumed, Written | 382 | 372 | 386 |
Ceded, Written | (1,208) | (1,568) | (1,140) |
Net premiums, Written | 4,406 | 4,208 | 4,794 |
Direct, Earned | 4,839 | 5,355 | 5,322 |
Assumed, Earned | 381 | 382 | 403 |
Ceded, Earned | (1,216) | (1,577) | (1,146) |
Net premiums, Earned | $ 4,004 | $ 4,160 | $ 4,579 |
Percentage of amount assumed to net | 10.00% | 9.00% | 9.00% |
Life insurance | |||
Reinsurance [Abstract] | |||
Direct, Written | $ 929 | $ 977 | $ 1,030 |
Assumed, Written | 38 | 35 | 34 |
Ceded, Written | (538) | (856) | (372) |
Direct, Earned | 929 | 978 | 1,030 |
Assumed, Earned | 38 | 35 | 34 |
Ceded, Earned | (538) | (856) | (372) |
Accident and Health Insurance Product Line | |||
Reinsurance [Abstract] | |||
Direct, Written | 2,732 | 2,786 | 2,764 |
Assumed, Written | 337 | 331 | 342 |
Ceded, Written | (596) | (629) | (682) |
Direct, Earned | 2,756 | 2,816 | 2,778 |
Assumed, Earned | 341 | 335 | 347 |
Ceded, Earned | (604) | (638) | (688) |
Mortgage insurance | |||
Reinsurance [Abstract] | |||
Direct, Written | 1,571 | 1,641 | 1,754 |
Assumed, Written | 7 | 6 | 10 |
Ceded, Written | (74) | (83) | (86) |
Direct, Earned | 1,154 | 1,561 | 1,514 |
Assumed, Earned | 2 | 12 | 22 |
Ceded, Earned | $ (74) | $ (83) | $ (86) |
Recorded Liabilities and Major
Recorded Liabilities and Major Assumptions Underlying Future Policy Benefits (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | $ 38,472 | $ 37,063 | |
Long Term Care Insurance Contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [1] | $ 23,332 | $ 21,590 |
Long Term Care Insurance Contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [1] | 3.75% | 3.75% |
Long Term Care Insurance Contracts | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [1] | 7.50% | 7.50% |
Structured Settlements with Life Contingencies | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [2] | $ 8,724 | $ 8,858 |
Structured Settlements with Life Contingencies | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [2] | 1.00% | 1.00% |
Structured Settlements with Life Contingencies | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [2] | 8.00% | 8.00% |
Annuity Contracts with Life Contingencies | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [2] | $ 3,723 | $ 3,822 |
Annuity Contracts with Life Contingencies | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [2] | 1.00% | 1.00% |
Annuity Contracts with Life Contingencies | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [2] | 8.00% | 8.00% |
Traditional Life Insurance Contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [3] | $ 2,387 | $ 2,506 |
Traditional Life Insurance Contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [3] | 3.00% | 3.00% |
Traditional Life Insurance Contracts | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [3] | 7.50% | 7.50% |
Supplementary Contracts with Life Contingencies | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [2] | $ 303 | $ 284 |
Supplementary Contracts with Life Contingencies | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [2] | 1.00% | 1.00% |
Supplementary Contracts with Life Contingencies | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [2] | 8.00% | 8.00% |
Accident and Health Insurance Contracts | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits | [4] | $ 3 | $ 3 |
Accident and Health Insurance Contracts | Minimum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [4] | 3.50% | 3.50% |
Accident and Health Insurance Contracts | Maximum | |||
Liability for Future Policy Benefit, by Product Segment [Line Items] | |||
Future policy benefits, Interest rate assumption | [4] | 6.00% | 6.00% |
[1] | The 1983 Individual Annuitant Mortality Table or the 2000 U.S. Annuity Table, or the 1983 Group Annuitant Mortality Table or the 1994 Group Annuitant Mortality Table and company experience. | ||
[2] | Assumptions for limited-payment contracts come from either the U.S. Population Table, the 1983 Group Annuitant Mortality Table, the 1983 Individual Annuitant Mortality Table, the Annuity 2000 Mortality Table or the 2012 Individual Annuity Reserving Table. | ||
[3] | Principally modifications based on company experience of the Society of Actuaries 1965-70 or 1975-80 Select and the Ultimate Tables, the 1941, 1958, 1980 and 2001 Commissioner's Standard Ordinary Tables, the 1980 Commissioner's Extended Term table and (IA) Standard Table 1996 (modified). | ||
[4] | The 1958 and 1980 Commissioner's Standard Ordinary Tables, or the 2000 U.S. Annuity Table, or the 1983 Group Annuitant Mortality or the 2008 Valuation Basic Table. |
Insurance Reserves - Additional
Insurance Reserves - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance Reserves [Line Items] | |||||||
Deferred Policy acquistion costs amortization | $ 342 | $ 481 | $ 448 | ||||
Future policy benefit reserves | $ 38,472 | $ 37,063 | 38,472 | 37,063 | |||
Immediate Fixed Annuity | Loss Recognition Testing | |||||||
Insurance Reserves [Line Items] | |||||||
Deferred Policy acquistion costs amortization | $ 14 | ||||||
Increase in future policy benefit reserves | 89 | 24 | |||||
Long-term Care Insurance | Profits Followed By Losses | |||||||
Insurance Reserves [Line Items] | |||||||
Future policy benefit reserves | 102 | 30 | 102 | 30 | |||
Long-term care insurance future policy benefit reserves present value of expected losses | 2,800 | 2,200 | 2,800 | 2,200 | |||
Federal Home Loan Bank | |||||||
Insurance Reserves [Line Items] | |||||||
Federal Home Loan Bank common stock held | 37 | 36 | 37 | 36 | |||
Amount of funding agreements issued to the Federal Home Loan Bank | 280 | 254 | 280 | 254 | |||
Letters of credit related to the Federal Home Loan Bank | 28 | 28 | 28 | 28 | |||
Pledged assets for Federal Home Loan Bank at fair value | 388 | 356 | 388 | 356 | |||
Variable Annuity | Nontraditional Long-Duration Contracts | |||||||
Insurance Reserves [Line Items] | |||||||
Nontraditional long-duration contracts liability | 5,577 | 5,737 | 5,577 | 5,737 | |||
Guaranteed Minimum Death Benefit | Nontraditional Long-Duration Contracts | Annuity contracts | |||||||
Insurance Reserves [Line Items] | |||||||
Nontraditional long-duration contracts liability | 94 | 90 | 94 | 90 | |||
Guaranteed Minimum Withdrawal And Guaranteed Annuitization Benefit Contracts | |||||||
Insurance Reserves [Line Items] | |||||||
Guaranteed annuitization benefit contracts | 645 | 739 | $ 645 | $ 739 | |||
Unlocking | |||||||
Insurance Reserves [Line Items] | |||||||
Deferred Policy acquistion costs amortization | 144 | $ 109 | |||||
Increase in liability for policyholder account balances | $ 70 | $ 202 | $ 175 |
Recorded Liabilities for Policy
Recorded Liabilities for Policyholder Account Balances (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Insurance Reserves [Line Items] | ||
Policyholder account balances | $ 24,195 | $ 25,662 |
Investment contracts | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 14,675 | 16,437 |
Investment contracts | Annuity contracts | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 12,272 | 13,566 |
Investment contracts | GICs, funding agreements and FABNs | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 260 | 560 |
Investment contracts | Structured settlements without life contingencies | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 1,451 | 1,576 |
Investment contracts | Supplementary contracts without life contingencies | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 677 | 719 |
Investment contracts | Other | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | 15 | 16 |
Universal and term universal life insurance contract | ||
Insurance Reserves [Line Items] | ||
Policyholder account balances | $ 9,520 | $ 9,225 |
Information about Variable Annu
Information about Variable Annuity Products with Death and Living Benefit Guarantees (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Guaranteed minimum standard death benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 2,365 | $ 2,364 |
Net amount at risk | $ 2 | $ 4 |
Average attained age of contractholders | 74 years | 73 years |
Guaranteed minimum enhanced death benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 2,489 | $ 2,611 |
Net amount at risk | $ 114 | $ 157 |
Average attained age of contractholders | 74 years | 74 years |
Guaranteed minimum living benefit | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 2,671 | $ 2,781 |
Guaranteed annuitization benefits | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Death benefits account value | $ 1,198 | $ 1,177 |
Account Balances of Variable An
Account Balances of Variable Annuity Contract with Death or Living Benefit Guarantees Invested in Separate Account Investment Options (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | $ 4,843 | $ 4,954 |
Balanced funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 2,998 | 3,046 |
Equity funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 1,262 | 1,271 |
Bond funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | 498 | 550 |
Money market funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account investment | $ 85 | $ 87 |
Liability for Policy and Con108
Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | $ 9,594 | $ 9,256 | ||
Long-term Care Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 8,548 | 8,034 | $ 6,749 | $ 6,216 |
Liability for policy and contract claims, net of reinsurance | 6,256 | 5,724 | 4,694 | 4,290 |
Reinsurance recoverable on unpaid claims | 2,292 | 2,310 | $ 2,055 | $ 1,926 |
U.S. Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 454 | |||
Australia Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 218 | |||
Canada Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 87 | |||
Insurance lines other than short-duration contracts | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 8,827 | 8,291 | ||
Insurance lines other than short-duration contracts | Long-term Care Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 8,548 | 8,034 | ||
Insurance lines other than short-duration contracts | Life Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 244 | 226 | ||
Insurance lines other than short-duration contracts | Fixed Annuities | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 24 | 16 | ||
Insurance lines other than short-duration contracts | Runoff | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Total liability for policy and contract claims | 11 | 15 | ||
Short-duration contracts | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for policy and contract claims, net of reinsurance | 766 | 963 | ||
Reinsurance recoverable on unpaid claims | 1 | 2 | ||
Short-duration contracts | U.S. Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for policy and contract claims, net of reinsurance | 454 | 633 | ||
Reinsurance recoverable on unpaid claims | 1 | 2 | ||
Short-duration contracts | Australia Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for policy and contract claims, net of reinsurance | 218 | 211 | ||
Short-duration contracts | Canada Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for policy and contract claims, net of reinsurance | 87 | 112 | ||
Short-duration contracts | Other Countries Mortgage Insurance | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Liability for policy and contract claims, net of reinsurance | $ 7 | $ 7 |
Changes in Liability for Policy
Changes in Liability for Policy and Contract Claims (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning balance | $ 9,256 | ||
Ending balance | 9,594 | $ 9,256 | |
Long-term Care Insurance | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Beginning balance | 8,034 | 6,749 | $ 6,216 |
Less reinsurance recoverables | (2,310) | (2,055) | (1,926) |
Net beginning balance | 5,724 | 4,694 | 4,290 |
Current year | 2,234 | 2,066 | 1,655 |
Prior years | (183) | 377 | 39 |
Total incurred | 2,051 | 2,443 | 1,694 |
Current year | (176) | (166) | (151) |
Prior years | (1,644) | (1,506) | (1,371) |
Total paid | (1,820) | (1,672) | (1,522) |
Interest on liability for policy and contract claims | 301 | 259 | 232 |
Net ending balance | 6,256 | 5,724 | 4,694 |
Add reinsurance recoverables | 2,292 | 2,310 | 2,055 |
Ending balance | $ 8,548 | $ 8,034 | $ 6,749 |
Liability for Policy and Con110
Liability for Policy and Contract Claims - Additional Information (Detail) - Long-term Care Insurance - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred related to insured events of prior year | $ (183) | $ 377 | $ 39 | ||
Increase (Decrease) in claim reserves | $ 1,285 | ||||
Changes in Assumptions and Methodologies | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Incurred related to insured events of prior year | 305 | ||||
Increase (Decrease) in claim reserves | 460 | ||||
Increase in reinsurance recoverable | $ 25 | $ 221 | |||
Claim Reserve Refinement | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Increase (Decrease) in claim reserves | $ 222 | ||||
Increase in reinsurance recoverable | $ 222 | ||||
Net favorable corrections and adjustments | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Increase/decrease in reserves | $ (25) |
Incurred Claims, Net of Reinsur
Incurred Claims, Net of Reinsurance, Cumulative Number of Reported Delinquencies and Total of Incurred-But-Not-Reported Liabilities (Detail) $ in Millions | Dec. 31, 2017USD ($)Claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | |
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 7,142 | |||||||||
U.S. Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 7,142 | ||||||||||
U.S. Mortgage Insurance | Accident Year 2008 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | 1,396 | $ 1,391 | $ 1,385 | $ 1,376 | $ 1,347 | $ 1,353 | $ 1,339 | $ 1,211 | $ 1,041 | $ 943 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 133,491 | |||||||||
U.S. Mortgage Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 1,802 | 1,799 | 1,792 | 1,782 | 1,752 | 1,755 | 1,762 | 1,697 | 1,341 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 151,732 | |||||||||
U.S. Mortgage Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 1,174 | 1,173 | 1,173 | 1,165 | 1,146 | 1,139 | 1,157 | 977 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 90,231 | |||||||||
U.S. Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 939 | 939 | 938 | 929 | 913 | 931 | 910 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 68,984 | |||||||||
U.S. Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 668 | 671 | 673 | 671 | 675 | 718 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 48,170 | |||||||||
U.S. Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 384 | 387 | 392 | 407 | 475 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 33,934 | |||||||||
U.S. Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 261 | 269 | 288 | 328 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 26,080 | |||||||||
U.S. Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 187 | 208 | 235 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 20,915 | |||||||||
U.S. Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 160 | 198 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 17,423 | |||||||||
U.S. Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1] | $ 171 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1] | $ 19 | |||||||||
Number of reported delinquencies | Claim | [1],[2] | 15,097 | |||||||||
Canada Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 1,225 | |||||||||
Canada Mortgage Insurance | Accident Year 2008 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | 158 | 158 | 158 | 158 | 158 | 158 | 155 | 152 | 149 | 108 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 6,138 | |||||||||
Canada Mortgage Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 195 | 195 | 195 | 196 | 196 | 194 | 191 | 169 | 151 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 6,702 | |||||||||
Canada Mortgage Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 167 | 168 | 167 | 168 | 169 | 167 | 149 | 135 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 6,601 | |||||||||
Canada Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 149 | 150 | 150 | 151 | 151 | 149 | 133 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 5,707 | |||||||||
Canada Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 108 | 108 | 108 | 109 | 110 | 111 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 5,316 | |||||||||
Canada Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 96 | 97 | 97 | 98 | 102 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 4,949 | |||||||||
Canada Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 84 | 85 | 87 | 91 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 4,948 | |||||||||
Canada Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 87 | 91 | 101 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 4,626 | |||||||||
Canada Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 103 | 119 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 5,133 | |||||||||
Canada Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [1],[3] | $ 78 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [1],[3],[4] | $ 26 | |||||||||
Number of reported delinquencies | Claim | [1],[3],[5] | 3,785 | |||||||||
Australia Mortgage Insurance | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 1,139 | |||||||||
Australia Mortgage Insurance | Accident Year 2008 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | 178 | 178 | 177 | 179 | 176 | 172 | 155 | 153 | 158 | 74 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 9,197 | |||||||||
Australia Mortgage Insurance | Accident Year 2009 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 136 | 135 | 133 | 130 | 127 | 122 | 101 | 109 | 71 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 8,868 | |||||||||
Australia Mortgage Insurance | Accident Year 2010 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 145 | 143 | 143 | 142 | 140 | 138 | 111 | 74 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 8,683 | |||||||||
Australia Mortgage Insurance | Accident Year 2011 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 128 | 127 | 127 | 127 | 132 | 142 | 98 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 9,321 | |||||||||
Australia Mortgage Insurance | Accident Year 2012 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 87 | 86 | 88 | 90 | 108 | 88 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 7,595 | |||||||||
Australia Mortgage Insurance | Accident Year 2013 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 62 | 63 | 69 | 84 | 82 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 7,087 | |||||||||
Australia Mortgage Insurance | Accident Year 2014 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 71 | 76 | 92 | 80 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 0 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 7,463 | |||||||||
Australia Mortgage Insurance | Accident Year 2015 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 96 | 119 | 88 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 1 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 7,606 | |||||||||
Australia Mortgage Insurance | Accident Year 2016 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 141 | 106 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 14 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 8,020 | |||||||||
Australia Mortgage Insurance | Accident Year 2017 | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | [3],[6] | $ 95 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Total of Incurred-But-Not-Reported liabilities including expected development on reported claims as of December 31, 2016 | [3],[6] | $ 36 | |||||||||
Number of reported delinquencies | Claim | [2],[3],[6] | 4,001 | |||||||||
[1] | Represents the year in which first monthly mortgage payments have been missed by the borrower. | ||||||||||
[2] | Represents reported and outstanding delinquencies less actual cures as of December 31 for each respective accident year. | ||||||||||
[3] | Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. | ||||||||||
[4] | Incurred-but-not-reported liabilities exist only relative to the year 2017 as lenders are required to report losses after three consecutive monthly mortgage payments have been missed by the borrower. | ||||||||||
[5] | Represents reported delinquencies as of December 31 for each respective accident year. | ||||||||||
[6] | The accident year is estimated by allowing an additional five months for development from the time the first monthly mortgage payments have been missed by the borrower. |
Paid Claims Development, Net of
Paid Claims Development, Net of Reinsurance (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 | |||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | $ 7,142 | ||||||||||||||||||
Liability for policy and contract claims | 9,594 | $ 9,256 | ||||||||||||||||||
U.S. Mortgage Insurance | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | 7,142 | |||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 6,697 | |||||||||||||||||||
All outstanding liabilities before 2008 | 9 | |||||||||||||||||||
Liability for policy and contract claims | 454 | |||||||||||||||||||
U.S. Mortgage Insurance | Accident Year 2008 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 1,396 | 1,391 | $ 1,385 | $ 1,376 | $ 1,347 | $ 1,353 | $ 1,339 | $ 1,211 | $ 1,041 | $ 943 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,375 | 1,353 | [1] | 1,322 | [1] | 1,271 | [1] | 1,217 | [1] | 1,145 | [1] | 1,046 | [1] | 917 | [1] | 572 | [1] | 66 | [1] | |
U.S. Mortgage Insurance | Accident Year 2009 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 1,802 | 1,799 | 1,792 | 1,782 | 1,752 | 1,755 | 1,762 | 1,697 | 1,341 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,777 | 1,753 | [1] | 1,709 | [1] | 1,638 | [1] | 1,556 | [1] | 1,434 | [1] | 1,245 | [1] | 940 | [1] | 285 | [1] | 0 | [1] | |
U.S. Mortgage Insurance | Accident Year 2010 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 1,174 | 1,173 | 1,173 | 1,165 | 1,146 | 1,139 | 1,157 | 977 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,158 | 1,139 | [1] | 1,109 | [1] | 1,049 | [1] | 973 | [1] | 844 | [1] | 567 | [1] | 140 | [1] | 0 | [1] | 0 | [1] | |
U.S. Mortgage Insurance | Accident Year 2011 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 939 | 939 | 938 | 929 | 913 | 931 | 910 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 927 | 906 | [1] | 874 | [1] | 816 | [1] | 722 | [1] | 497 | [1] | 65 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |
U.S. Mortgage Insurance | Accident Year 2012 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 668 | 671 | 673 | 671 | 675 | 718 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 650 | 634 | [1] | 602 | [1] | 532 | [1] | 391 | [1] | 92 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |
U.S. Mortgage Insurance | Accident Year 2013 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 384 | 387 | 392 | 407 | 475 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 362 | 340 | [1] | 297 | [1] | 202 | [1] | 44 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |
U.S. Mortgage Insurance | Accident Year 2014 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 261 | 269 | 288 | 328 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 233 | 195 | [1] | 127 | [1] | 22 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |
U.S. Mortgage Insurance | Accident Year 2015 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 187 | 208 | 235 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 145 | 85 | [1] | 12 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |
U.S. Mortgage Insurance | Accident Year 2016 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 160 | 198 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 64 | 10 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |
U.S. Mortgage Insurance | Accident Year 2017 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1] | 171 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 6 | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | |
Canada Mortgage Insurance | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 1,225 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 1,139 | ||||||||||||||||||
Other | [3] | 1 | ||||||||||||||||||
All outstanding liabilities before 2008 | 0 | |||||||||||||||||||
Liability for policy and contract claims | 87 | |||||||||||||||||||
Canada Mortgage Insurance | Accident Year 2008 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 158 | 158 | 158 | 158 | 158 | 158 | 155 | 152 | 149 | 108 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 163 | 163 | 163 | 163 | 163 | 160 | 158 | 148 | 107 | 8 | |||||||||
Canada Mortgage Insurance | Accident Year 2009 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 195 | 195 | 195 | 196 | 196 | 194 | 191 | 169 | 151 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 194 | 194 | 194 | 195 | 195 | 193 | 185 | 127 | 24 | 0 | |||||||||
Canada Mortgage Insurance | Accident Year 2010 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 167 | 168 | 167 | 168 | 169 | 167 | 149 | 135 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 167 | 167 | 167 | 167 | 168 | 164 | 122 | 27 | 0 | 0 | |||||||||
Canada Mortgage Insurance | Accident Year 2011 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 149 | 150 | 150 | 151 | 151 | 149 | 133 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 148 | 149 | 150 | 150 | 150 | 133 | 37 | 0 | 0 | 0 | |||||||||
Canada Mortgage Insurance | Accident Year 2012 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 108 | 108 | 108 | 109 | 110 | 111 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 107 | 107 | 107 | 106 | 99 | 24 | 0 | 0 | 0 | 0 | |||||||||
Canada Mortgage Insurance | Accident Year 2013 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 96 | 97 | 97 | 98 | 102 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 96 | 97 | 95 | 87 | 25 | 0 | 0 | 0 | 0 | 0 | |||||||||
Canada Mortgage Insurance | Accident Year 2014 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 84 | 85 | 87 | 91 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 84 | 82 | 73 | 17 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Canada Mortgage Insurance | Accident Year 2015 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 87 | 91 | 101 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 86 | 74 | 19 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Canada Mortgage Insurance | Accident Year 2016 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 103 | 119 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 81 | 17 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Canada Mortgage Insurance | Accident Year 2017 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [1],[2] | 78 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [1],[2] | 13 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 1,139 | ||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 926 | ||||||||||||||||||
Other | [5] | 5 | ||||||||||||||||||
All outstanding liabilities before 2008 | 0 | |||||||||||||||||||
Liability for policy and contract claims | 218 | |||||||||||||||||||
Australia Mortgage Insurance | Accident Year 2008 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 178 | 178 | 177 | 179 | 176 | 172 | 155 | 153 | 158 | 74 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 136 | 134 | 132 | 128 | 124 | 108 | 61 | 30 | 2 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2009 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 136 | 135 | 133 | 130 | 127 | 122 | 101 | 109 | 71 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 143 | 141 | 139 | 136 | 128 | 104 | 25 | 2 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2010 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 145 | 143 | 143 | 142 | 140 | 138 | 111 | 74 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 128 | 126 | 123 | 119 | 106 | 64 | 2 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2011 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 128 | 127 | 127 | 127 | 132 | 142 | 98 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 86 | 83 | 80 | 73 | 55 | 5 | 0 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2012 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 87 | 86 | 88 | 90 | 108 | 88 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 60 | 54 | 47 | 29 | 4 | 0 | 0 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2013 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 62 | 63 | 69 | 84 | 82 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 63 | 47 | 27 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2014 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 71 | 76 | 92 | 80 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 69 | 30 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2015 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 96 | 119 | 88 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 54 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2016 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 141 | 106 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2017 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Total incurred | [2],[4] | 95 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Australia Mortgage Insurance | Accident Year 2007 | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | [2],[4] | $ 180 | $ 178 | $ 177 | $ 176 | $ 174 | $ 167 | $ 141 | $ 118 | $ 51 | $ 3 | |||||||||
[1] | Represents the year in which first monthly mortgage payments have been missed by the borrower. | |||||||||||||||||||
[2] | Amounts translated into U.S. dollars at the average foreign exchange rates for the year ended December 31, 2017. | |||||||||||||||||||
[3] | Includes the portion of the borrower recovery accrual that corresponds to loss reserves and is recognized as a reduction to losses incurred that we anticipate to receive in the future once the claims have been settled, and foreign currency translation. | |||||||||||||||||||
[4] | The accident year is estimated by allowing an additional five months for development from the time the first monthly mortgage payments have been missed by the borrower. | |||||||||||||||||||
[5] | Includes foreign currency translation. |
Average Payout of Incurred Clai
Average Payout of Incurred Claims by Age (Detail) | Dec. 31, 2017 |
U.S. Mortgage Insurance | |
Claims Development [Line Items] | |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year one | 8.90% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year two | 39.20% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year three | 24.30% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year four | 10.90% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year five | 6.20% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year six | 4.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year seven | 3.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year eight | 2.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year nine | 1.80% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year ten | 1.60% |
Canada Mortgage Insurance | |
Claims Development [Line Items] | |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year one | 17.90% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year two | 62.40% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year three | 16.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year four | 2.50% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year five | 0.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year six | 0.20% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year seven | (0.30%) |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year eight | 0.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year nine | 0.00% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year ten | 0.00% |
Australia Mortgage Insurance | |
Claims Development [Line Items] | |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year one | 5.40% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year two | 34.00% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year three | 32.50% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year four | 16.20% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year five | 7.10% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year six | 2.70% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year seven | 1.60% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year eight | 0.80% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year nine | 0.70% |
Average annual percentage payout of incurred claims, net of reinsurance, by age, year ten | 0.40% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Jan. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Savings Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs associated with plan | $ 11 | $ 13 | $ 17 | |
Defined contribution plan required years of service to vest for employees hired on or after January 1, 2011 | 2 years | |||
Deposits recorded by our life insurance subsidiaries | $ 1 | $ 1 | ||
Maximum contribution to employees savings plans | 5.00% | 6.00% | ||
Savings Plan | First 4% of pay deferred | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer matching contribution, percent of match | 100.00% | |||
Maximum contribution to employees savings plans | 4.00% | |||
Savings Plan | Next 2% of pay deferred | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer matching contribution, percent of match | 50.00% | |||
Maximum contribution to employees savings plans | 2.00% | |||
Defined Contribution Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage funding of plan by Genworth | 100.00% | |||
Defined contribution pension plan required years of service to vest | 3 years | |||
Liability related to benefit plan | $ 11 | $ 10 | ||
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability related to benefit plan | 77 | 69 | ||
Change in other comprehensive income, (increase) reduction | 5 | 1 | ||
Defined Benefit Pension Plans | United Kingdom | Lifestyle Protection Insurance | Discontinued Operations, Disposed of by Sale | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Change in other comprehensive income, (increase) reduction | 15 | |||
Pension benefit assets | 17 | |||
Accrued to buyout pension plan and funded annuity contract amount | 69 | |||
Amount paid on a group annuity contract | 58 | |||
Pension settlement costs | 101 | |||
Retiree Health and Life Insurance Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Liability related to benefit plan | 89 | 87 | ||
Change in other comprehensive income, (increase) reduction | $ (2) | 8 | ||
Age for retirees receiving policy coverage | 65 years | |||
Number of years before retirement eligibility at which retiree medical benefits are available to employees | 10 years | |||
Pension and Retiree Health and Life Insurance Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Costs associated with plan | $ 21 | $ 18 | $ 25 |
Borrowings and Other Financi115
Borrowings and Other Financings - Additional Information (Detail) AUD in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016AUD | Jan. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2017AUD | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017CAD | Sep. 29, 2017CAD | Apr. 30, 2016USD ($) | Jul. 31, 2015AUD | ||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Broker, advisor and investment banking fees | $ 0 | $ 18,000,000 | $ 0 | |||||||||||
Pre-tax gain (loss) on repurchase of senior notes | [1] | 0 | 48,000,000 | (2,000,000) | ||||||||||
Non-recourse funding obligationsTotal | 310,000,000 | 310,000,000 | ||||||||||||
Redemption of secured debt | 0 | 1,620,000,000 | 61,000,000 | |||||||||||
Gains (losses) from life block transactions | 0 | (9,000,000) | $ (455,000,000) | |||||||||||
Repurchase agreements, fair value of securities pledged | 79,000,000 | |||||||||||||
Repurchase agreements, fair value of repurchase obligation | 75,000,000 | |||||||||||||
Repayment of investment securities under repurchase agreements | 75,000,000 | |||||||||||||
Securities lending activity, obligation to return collateral | $ 268,000,000 | 534,000,000 | ||||||||||||
Risks associated with repurchase agreements and securities lending programs | Our repurchase agreement and securities lending programs expose us to liquidity risk if we did not have enough cash or collateral readily available to return to the counterparty when required to do so under the agreements. We manage this risk by regularly monitoring our available sources of cash and collateral to ensure we can meet short-term liquidity demands under normal and stressed scenarios. We are also exposed to credit risk in the event of default of our counterparties or changes in collateral values. This risk is significantly reduced because our programs require over collateralization and collateral exposures are trued up on a daily basis. We manage this risk by using multiple counterparties and ensuring that changes in required collateral are monitored and adjusted daily. We also monitor the creditworthiness, including credit ratings, of our counterparties on a regular basis. | Our repurchase agreement and securities lending programs expose us to liquidity risk if we did not have enough cash or collateral readily available to return to the counterparty when required to do so under the agreements. We manage this risk by regularly monitoring our available sources of cash and collateral to ensure we can meet short-term liquidity demands under normal and stressed scenarios. We are also exposed to credit risk in the event of default of our counterparties or changes in collateral values. This risk is significantly reduced because our programs require over collateralization and collateral exposures are trued up on a daily basis. We manage this risk by using multiple counterparties and ensuring that changes in required collateral are monitored and adjusted daily. We also monitor the creditworthiness, including credit ratings, of our counterparties on a regular basis. | ||||||||||||
Life Block Transaction | Term Life Insurance | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Gains (losses) from life block transactions | $ (9,000,000) | |||||||||||||
United States | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Cash and government securities collateral, minimum amount of the fair value of the applicable securities loaned | 102.00% | 102.00% | ||||||||||||
Securities lending activity, fair value of securities loaned | $ 258,000,000 | 517,000,000 | ||||||||||||
Securities lending activity, fair value of collateral held | 268,000,000 | 534,000,000 | ||||||||||||
Securities lending activity, obligation to return collateral | $ 268,000,000 | 534,000,000 | ||||||||||||
Canada | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Cash and government securities collateral, minimum amount of the fair value of the applicable securities loaned | 105.00% | 105.00% | ||||||||||||
Securities lending activity, fair value of securities loaned | $ 382,000,000 | $ 350,000,000 | ||||||||||||
Non-Recourse Funding Obligations | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Non-recourse funding obligations weighted-average interest rate | 3.54% | 2.75% | 3.54% | |||||||||||
Non-Recourse Funding Obligations | Floating Rate Subordinated Notes Due 2033 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Debt instrument, maturity year | 2,033 | 2,033 | 2,033 | |||||||||||
Redemption of secured debt | 975,000,000 | $ 30,000,000 | ||||||||||||
Non-Recourse Funding Obligations | Floating Rate Subordinated Notes Due in 2035 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Debt instrument, maturity year | 2,035 | 2,035 | 2,035 | |||||||||||
Redemption of secured debt | 645,000,000 | $ 31,000,000 | ||||||||||||
Rivermont Life Insurance Company I Due 2050 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Debt instrument, maturity year | 2,050 | 2,050 | ||||||||||||
Non-recourse funding obligationsTotal | $ 310,000,000 | |||||||||||||
Deferred borrowing charges | $ 5,000,000 | |||||||||||||
Interest rate reset period, number of days | 28 days | 28 days | ||||||||||||
Genworth Canada | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Deferred borrowing charges | $ 1,000,000 | $ 2,000,000 | ||||||||||||
Genworth Canada | Syndicated senior unsecured revolving credit facility Due on September 29, 2022 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Facility, maximum borrowing capacity | CAD | CAD 200,000,000 | |||||||||||||
Line of credit maturity date | Sep. 29, 2022 | Sep. 29, 2022 | ||||||||||||
Debt instrument, covenant description | As of December 31, 2017, there was no amount outstanding under Genworth Canada’s credit facility and all of the covenants were fully met. | As of December 31, 2017, there was no amount outstanding under Genworth Canada’s credit facility and all of the covenants were fully met. | ||||||||||||
Outstanding line of credit | CAD | CAD 0 | |||||||||||||
Genworth Canada | Senior Unsecured Revolving Credit facility Canceled | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Facility, maximum borrowing capacity | CAD | CAD 100,000,000 | |||||||||||||
Genworth Canada | 5.68% Senior Notes, Due 2020 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Interest rate | 5.68% | 5.68% | 5.68% | |||||||||||
Debt instrument, maturity year | 2,020 | 2,020 | 2,020 | |||||||||||
Genworth Canada | 4.24% Senior Notes, Due 2024 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Interest rate | 4.24% | 4.24% | ||||||||||||
Debt instrument, maturity year | 2,024 | 2,024 | ||||||||||||
Genworth Holdings | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Total Fees related to Consent Solicitation | 61,000,000 | |||||||||||||
Bond consent fees | 43,000,000 | $ 33,000,000 | $ 39,000,000 | |||||||||||
Broker, advisor and investment banking fees | 18,000,000 | 18,000,000 | ||||||||||||
Pre-tax make-whole expense on redemption of senior notes | 20,000,000 | |||||||||||||
Aggregate principal amount of notes repurchased | 28,000,000 | $ 50,000,000 | 28,000,000 | 50,000,000 | ||||||||||
Pre-tax gain (loss) on repurchase of senior notes | $ 4,000,000 | $ (1,000,000) | 4,000,000 | $ (1,000,000) | ||||||||||
Deferred borrowing charges | $ 16,000,000 | 18,000,000 | ||||||||||||
Genworth Holdings | Revolving Credit Facility Maturing September 2016 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Facility, maximum borrowing capacity | $ 300,000,000 | |||||||||||||
Line of credit maturity date | Sep. 26, 2016 | Sep. 26, 2016 | ||||||||||||
Outstanding line of credit | $ 0 | |||||||||||||
Genworth Holdings | Fixed Rate Senior Notes | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Debt instrument, redemption description | We have the option to redeem all or a portion of each series of senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. | We have the option to redeem all or a portion of each series of senior notes at any time with notice to the noteholders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. | ||||||||||||
Genworth Holdings | Fixed Rate Senior Notes | Minimum | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Interest rate | 4.80% | 4.80% | ||||||||||||
Senior notes redemption option | 100.00% | 100.00% | ||||||||||||
Genworth Holdings | Fixed Rate Senior Notes | Maximum | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Interest rate | 7.70% | 7.70% | ||||||||||||
Genworth Holdings | 8.625% Senior Notes, Due 2016 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Interest rate | 8.625% | |||||||||||||
Redemption of Long-term borrowings | $ 298,000,000 | |||||||||||||
Pre-tax make-whole expense on redemption of senior notes | $ 20,000,000 | |||||||||||||
Genworth Holdings | Junior Notes due Two Thousand and Sixty Six | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Interest rate | 6.15% | 6.15% | ||||||||||||
Issued notes, aggregate principal amount | $ 598,000,000 | |||||||||||||
Debt instrument, maturity month and year | 2066-11 | 2066-11 | ||||||||||||
Quarterly interest rate after November 15, 2016 | Three-month London Interbank Offered Rate (“LIBOR”) plus 2.0025% | Three-month London Interbank Offered Rate (“LIBOR”) plus 2.0025% | ||||||||||||
Scheduled redemption date | Nov. 15, 2036 | Nov. 15, 2036 | ||||||||||||
Right to defer the payment of interest on the 2066 Notes during period, years | 10 years | 10 years | ||||||||||||
Genworth Financial Mortgage Insurance Pty Limited | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Debt instrument, maturity year | 2,025 | 2,025 | ||||||||||||
Subordinated floating rate notes, margin | 3.50% | 3.50% | ||||||||||||
Deferred borrowing charges | $ 2,000,000 | $ 3,000,000 | ||||||||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2021 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Redemption of Long-term borrowings | AUD | AUD 50 | |||||||||||||
Subordinated floating rate notes, margin | 4.75% | |||||||||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2025 | ||||||||||||||
Nonrecourse Funding Obligations [Line Items] | ||||||||||||||
Issued notes, aggregate principal amount | AUD | AUD 200 | |||||||||||||
Debt instrument, maturity year | 2,025 | 2,025 | 2,025 | |||||||||||
Subordinated floating rate notes, margin | 3.50% | |||||||||||||
Outstanding debt redeemed | AUD | AUD 90 | |||||||||||||
Early redemption fee | $ 2,000,000 | |||||||||||||
[1] | For the year ended December 31, 2015, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million. |
Borrowings and Other Financi116
Borrowings and Other Financings - Long Term Borrowings (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | |||
Total | $ 4,224 | $ 4,180 | |
Genworth Holdings | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 3,773 | 3,773 | |
Bond consent fees | (33) | (39) | $ (43) |
Deferred borrowing charges | (16) | (18) | |
Total | 3,724 | 3,716 | |
Genworth Holdings | 6.52% Senior Notes, Due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 597 | 597 | |
Genworth Holdings | 7.70% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 397 | 397 | |
Genworth Holdings | 7.20% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 381 | 381 | |
Genworth Holdings | 7.625% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 704 | 704 | |
Genworth Holdings | 4.90% Senior Notes, Due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 399 | 399 | |
Genworth Holdings | 4.80% Senior Notes, Due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 400 | 400 | |
Genworth Holdings | 6.50% Senior Notes, Due 2034 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 297 | 297 | |
Genworth Holdings | 6.15% Fixed-to-Floating Rate Junior Subordinated Notes, Due 2066 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 598 | 598 | |
Genworth Canada | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 347 | 324 | |
Deferred borrowing charges | (1) | (2) | |
Total | 346 | 322 | |
Genworth Canada | 5.68% Senior Notes, Due 2020 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 219 | 205 | |
Genworth Canada | 4.24% Senior Notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 128 | 119 | |
Genworth Financial Mortgage Insurance Pty Limited | |||
Debt Instrument [Line Items] | |||
Deferred borrowing charges | (2) | (3) | |
Total | 154 | 142 | |
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | $ 156 | $ 145 |
Borrowings and Other Financi117
Borrowings and Other Financings - Long Term Borrowings (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Genworth Financial Mortgage Insurance Pty Limited | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2,025 | |
6.52% Senior Notes, Due 2018 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.52% | 6.52% |
Debt instrument, maturity year | 2,018 | 2,018 |
7.70% Senior Notes, Due 2020 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.70% | 7.70% |
Debt instrument, maturity year | 2,020 | 2,020 |
7.20% Senior Notes, Due 2021 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.20% | 7.20% |
Debt instrument, maturity year | 2,021 | 2,021 |
7.625% Senior Notes, Due 2021 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.625% | 7.625% |
Debt instrument, maturity year | 2,021 | 2,021 |
4.90% Senior Notes, Due 2023 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.90% | 4.90% |
Debt instrument, maturity year | 2,023 | 2,023 |
4.80% Senior Notes, Due 2024 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.80% | 4.80% |
Debt instrument, maturity year | 2,024 | 2,024 |
6.50% Senior Notes, Due 2034 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.50% | 6.50% |
Debt instrument, maturity year | 2,034 | 2,034 |
6.15% Fixed-to-Floating Rate Junior Subordinated Notes, Due 2066 | Genworth Holdings | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.15% | 6.15% |
Debt instrument, maturity year | 2,066 | 2,066 |
5.68% Senior Notes, Due 2020 | Genworth Canada | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.68% | 5.68% |
Debt instrument, maturity year | 2,020 | 2,020 |
4.24% Senior Notes, due 2024 | Genworth Canada | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.24% | 4.24% |
Debt instrument, maturity year | 2,024 | 2,024 |
Floating Rate Junior Notes, Due 2025 | Genworth Financial Mortgage Insurance Pty Limited | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity year | 2,025 | 2,025 |
Principal Amounts of Long Term
Principal Amounts of Long Term Debt Including Senior Notes and Non-recourse Funding by Maturity (Detail) $ in Millions | Dec. 31, 2017USD ($) | |
Principal Amounts Of Long Term Debt Including Senior Notes And Non Recourse Funding By Maturity [Line Items] | ||
2,018 | $ 597 | |
2,019 | 0 | |
2,020 | 616 | |
2,021 | 1,085 | |
2022 and thereafter | 2,293 | [1] |
Total | $ 4,591 | |
[1] | (1) Repayment of $315 million of our non-recourse funding obligations requires regulatory approval. |
Principal Amounts of Long Te119
Principal Amounts of Long Term Debt Including Senior Notes and Non-recourse Funding by Maturity (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Principal Amounts Of Long Term Debt Including Senior Notes And Non Recourse Funding By Maturity [Line Items] | |
Repayment of secured debt | $ 315 |
Remaining Contractual Maturity
Remaining Contractual Maturity of Agreements (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | $ 75 | |
Securities lending | $ 268 | 534 |
Total repurchase agreements and securities lending | 268 | 609 |
U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 75 |
Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 5 | 7 |
Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 263 | 527 |
Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 72 | 224 |
Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 50 | 34 |
Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 85 | 159 |
Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 56 | 110 |
Overnight and continuous | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 268 | 534 |
Total repurchase agreements and securities lending | 268 | 534 |
Overnight and continuous | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Overnight and continuous | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 5 | 7 |
Overnight and continuous | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 263 | 527 |
Overnight and continuous | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 72 | 224 |
Overnight and continuous | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 50 | 34 |
Overnight and continuous | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 85 | 159 |
Overnight and continuous | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 56 | 110 |
Up to 30 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Total repurchase agreements and securities lending | 0 | 0 |
Up to 30 days | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 0 |
Up to 30 days | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Up to 30 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Total repurchase agreements and securities lending | 0 | 16 |
31 - 90 days | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 16 |
31 - 90 days | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
31 - 90 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Total repurchase agreements and securities lending | 0 | 59 |
Greater than 90 days | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Repurchase agreements | 0 | 59 |
Greater than 90 days | Equity Securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | U.S. government, agencies and government-sponsored enterprises | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | Non-U.S. government | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | 0 | 0 |
Greater than 90 days | Fixed maturity securities | Non-U.S. corporate | ||
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items] | ||
Securities lending | $ 0 | $ 0 |
Components of Income (Loss) bef
Components of Income (Loss) before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Domestic | $ 397 | $ (283) | $ (468) |
Foreign | 332 | 603 | 453 |
Income (loss) from continuing operations before income taxes | $ 729 | $ 320 | $ (15) |
Components of Income Tax (Benef
Components of Income Tax (Benefit) Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | ||||
Current federal income taxes | $ (32) | $ 55 | $ 1 | |
Deferred federal income taxes | (274) | 115 | (199) | |
Total federal income taxes | (306) | 170 | (198) | |
Current state income taxes | 1 | 1 | 0 | |
Deferred state income taxes | 6 | 2 | 4 | |
Total state income taxes | 7 | 3 | 4 | |
Current foreign income taxes | 192 | 183 | 186 | |
Deferred foreign income taxes | (100) | 2 | (1) | |
Total foreign income taxes | 92 | 185 | 185 | |
Total provision (benefit) for income taxes | $ 456 | $ (207) | $ 358 | $ (9) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Income Taxes [Line Items] | ||||||||||||||||
Current income tax payable | $ 28 | $ 36 | $ 28 | $ 36 | ||||||||||||
Valuation allowance | (258) | 233 | $ 25 | |||||||||||||
Valuation allowances | 363 | 601 | 363 | 601 | ||||||||||||
NOL carryforwards | 2.3 | 2.3 | ||||||||||||||
Foreign tax credit carryforwards | 603 | 690 | $ 603 | 690 | ||||||||||||
Net operating loss carryforwards, expiration date/(year) | 2,021 | |||||||||||||||
Foreign tax credit carryforwards, expiration year | 2,022 | |||||||||||||||
Gross deferred income tax assets | 1,783 | 2,191 | $ 1,783 | 2,191 | ||||||||||||
Deferred tax assets related to net operating loss and foreign tax credit carryforwards | 1,100 | 1,100 | ||||||||||||||
Valuation allowance | 258 | |||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 353 | [1] | $ 107 | $ 202 | $ 155 | (122) | $ (380) | $ 172 | $ 53 | 817 | (277) | (615) | ||||
Unrecognized tax benefits | 42 | 34 | 42 | 34 | 28 | $ 49 | ||||||||||
Unrecognized tax benefits, amount that if recognized would affect the effective rate on continuing operations | 30 | 30 | ||||||||||||||
Unrecognized tax benefits, amount that is reasonably possible that it will be recognized in 2017 | 25 | 25 | ||||||||||||||
Unrecognized tax benefits, interest and penalties (expense) | 1 | 1 | 1 | |||||||||||||
Maximum | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Unrecognized tax benefits, accrued interest and penalties | 1 | 1 | 1 | $ 1 | 1 | |||||||||||
U.S. Jurisdiction | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Gross deferred income tax assets | 477 | 477 | ||||||||||||||
Foreign Tax Credit | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Valuation allowance | $ 258 | |||||||||||||||
Section 338 Election | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Tax matters agreement obligation related to Section 338 election, period of repayment, years | 6 years | |||||||||||||||
Maximum deferred tax assets related to Section 338 election deduction | 640 | $ 640 | ||||||||||||||
Percentage of tax savings associated with Section 338 deductions | 80.00% | |||||||||||||||
SAB 118 Disclosures | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
TCJA, impact from change in tax rate, percent | 21.00% | |||||||||||||||
TCJA, impact from change in tax rate | $ 154 | |||||||||||||||
2017 Tax Act, income tax provision due to one-time transition tax related to foreign earnings | 63 | |||||||||||||||
2017 Tax Act, income tax provision due to one-time transition tax related to insurance policyholders reserves | 134 | |||||||||||||||
Tax Matters Agreement | ||||||||||||||||
Income Taxes [Line Items] | ||||||||||||||||
Interest expense related to tax matters agreement | 7 | $ 10 | $ 11 | |||||||||||||
Accretion rate for tax matters agreement | 5.72% | |||||||||||||||
Liability for estimated present value of tax payments to former parent | $ 119 | $ 173 | $ 119 | $ 173 | ||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Reconciliation of Federal Statu
Reconciliation of Federal Statutory Tax Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | ||||
Pre-tax income (loss) | $ 729 | $ 320 | $ (15) | |
Statutory U.S. federal income tax rate | 255 | 112 | (5) | |
State income tax, net of federal income tax effect | 5 | 3 | 2 | |
Tax favored investments | (3) | (4) | (14) | |
Effect of foreign operations | 0 | (5) | (20) | |
Net impact of repatriating foreign earnings | 0 | 9 | 0 | |
Non-deductible expenses | 2 | 1 | (3) | |
Stock-based compensation | 3 | 5 | 5 | |
Loss on sale of business | 0 | (1) | 0 | |
Other, net | 7 | 5 | 1 | |
Valuation allowance | (258) | 233 | 25 | |
TCJA, impact from change in tax rate | (154) | 0 | 0 | |
TCJA, impact on foreign operations | (64) | 0 | 0 | |
Total provision (benefit) for income taxes | $ 456 | $ (207) | $ 358 | $ (9) |
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% | |
State income tax, net of federal income tax effect | 0.70% | 1.00% | (18.00%) | |
Tax favored investments | (0.40%) | (1.30%) | 93.30% | |
Effect of foreign operations | 0.00% | (1.60%) | 129.20% | |
Net impact of repatriating foreign earnings | 0.00% | 2.80% | 0.00% | |
Non-deductible expenses | 0.30% | 0.30% | 22.00% | |
Stock-based compensation | 0.40% | 1.60% | (31.70%) | |
Loss on sale of business | 0.00% | (0.30%) | 0.00% | |
Other, net | 0.90% | 1.60% | (6.80%) | |
Valuation allowance | (35.40%) | 72.80% | (165.00%) | |
TCJA, impact from change in tax rate | (21.10%) | 0.00% | 0.00% | |
TCJA, impact on foreign operations | (8.80%) | 0.00% | 0.00% | |
Effective rate | (28.40%) | 111.90% | 58.00% |
Components Net Deferred Income
Components Net Deferred Income Tax Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [Abstract] | ||
Foreign tax credit carryforwards | $ 603 | $ 690 |
Net operating loss carryforwards | 499 | 906 |
State income taxes | 347 | 329 |
Accrued commission and general expenses | 127 | 208 |
Investments | 27 | 0 |
Insurance reserves | 146 | 0 |
Other | 34 | 58 |
Gross deferred income tax assets | 1,783 | 2,191 |
Valuation allowance | (363) | (601) |
Total deferred income tax assets | 1,420 | 1,590 |
Investments | 2 | |
Net unrealized gains on investment securities | 325 | 644 |
Net unrealized gains on derivatives | 28 | 18 |
Insurance reserves transition adjustment | 134 | 0 |
Insurance reserves | 0 | 58 |
DAC | 396 | 748 |
PVFP and other intangibles | 38 | 55 |
Investment in foreign subsidiaries | 0 | 48 |
Other | 22 | 70 |
Total deferred income tax liabilities | 943 | 1,643 |
Net deferred income tax asset | $ 477 | |
Net deferred income tax liability | $ (53) |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Balance as of January 1 | $ 34 | $ 28 | $ 49 |
Gross additions, current period | 2 | 6 | 5 |
Gross reductions, current period | (1) | 0 | 0 |
Gross additions, prior years | 13 | 0 | 0 |
Gross reductions, prior years | (6) | 0 | (26) |
Balance as of December 31 | $ 42 | $ 34 | $ 28 |
Supplemental Cash Flow Infor127
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |||
Net cash paid for taxes | $ 151 | $ 203 | $ 153 |
Cash paid for interest | $ 318 | $ 381 | $ 424 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | $ 42 | $ 32 | $ 16 | ||
Granted, shares subject to option | 0 | 0 | 0 | ||
Unrecognized stock-based compensation expense | $ 13 | $ 19 | |||
Unrecognized stock-based compensation expense, expected weighted-average period of recognition (years) | 1 year | 1 year | |||
Amounts received from option exercises | $ 1 | $ 1 | |||
Tax benefit realized from the exercise of share based awards | 2 | 1 | |||
Genworth Canada | |||||
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | 11 | 8 | $ (3) | ||
Unrecognized stock-based compensation expense | 4 | 3 | 2 | ||
Genworth Australia | |||||
Share Based Employee Compensation [Line Items] | |||||
Stock-based compensation expense | 1 | 1 | 2 | ||
Unrecognized stock-based compensation expense | $ 1 | $ 1 | $ 4 | ||
Vested restricted share rights | 0 | 0 | |||
Performance Stock Units ("PSUs") | |||||
Share Based Employee Compensation [Line Items] | |||||
Average vesting period | 3 years | 3 years | |||
Granted stock options, fair value | $ 4.01 | $ 2.81 | |||
Vesting percentage | 33.33% | 25.00% | |||
Cash Awards | |||||
Share Based Employee Compensation [Line Items] | |||||
Granted stock options, fair value | $ 1 | $ 1 | |||
Time Based Cash Awards | |||||
Share Based Employee Compensation [Line Items] | |||||
Vested restricted share rights | 9,000,000 | 4,000,000 | |||
Time Based Cash Awards | Vesting Option 1 | |||||
Share Based Employee Compensation [Line Items] | |||||
Average vesting period | 2 years | 2 years | |||
Time Based Cash Awards | Vesting Option 2 | |||||
Share Based Employee Compensation [Line Items] | |||||
Average vesting period | 3 years | 3 years | |||
Performance Based Cash Awards | |||||
Share Based Employee Compensation [Line Items] | |||||
Average vesting period | 3 years | 3 years | |||
Vested restricted share rights | 0 | 0 | |||
Stock Appreciation Rights | |||||
Share Based Employee Compensation [Line Items] | |||||
Granted stock options, exercise price range, lower limit | $ 4.96 | ||||
Granted stock options, exercise price range, upper limit | $ 7.99 | ||||
Granted stock options, exercise term (years) | 10 years | ||||
Average vesting period | 3 years | ||||
Granted stock options, fair value | $ 0 | $ 0 | |||
Vested restricted share rights | 0 | 0 | |||
Stock Appreciation Rights Cap Price | |||||
Share Based Employee Compensation [Line Items] | |||||
Maximum share value at exercise of SARs | $ 75 | ||||
Restricted Stock Units | |||||
Share Based Employee Compensation [Line Items] | |||||
Average vesting period | 3 years | 3 years | |||
Granted stock options, fair value | $ 4.01 | $ 2.04 | |||
Vested restricted share rights | 918,000 | 818,000 | |||
Black-Scholes Model | Stock Appreciation Rights (SARs) | |||||
Share Based Employee Compensation [Line Items] | |||||
Granted, shares subject to option | 0 | 0 | 1,378,000 | ||
Maximum share value at exercise of SARs | $ 75 | ||||
Omnibus Incentive Plan | |||||
Share Based Employee Compensation [Line Items] | |||||
Equity awards, total amount of shares authorized to be outstanding | 25,000,000 | ||||
Equity awards, amount of shares authorized to grant | 16,000,000 | ||||
Stock-based compensation expense | $ 30 | $ 23 | $ 17 |
Stock Option and SAR Weighted-A
Stock Option and SAR Weighted-Average Grant-Date Fair Value Information and Related Valuation Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, shares subject to option | 0 | 0 | 0 |
Black-Scholes Model | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | ||
Expected volatility | 66.00% | ||
Expected dividend yield | 0.00% | ||
Risk-free interest rate | 1.90% | ||
Black-Scholes Model | Stock Appreciation Rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, shares subject to option | 0 | 0 | 1,378,000 |
Maximum share value at exercise of SARs | $ 75 | ||
Fair value per options and SARs | $ 3.43 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Cash Award Activity (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Performance Based Cash Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 4 | 0 |
Granted, number of awards | 4 | 4 |
Vested, number of awards | 0 | 0 |
Forfeited, number of awards | 0 | 0 |
Balance as of December 31, number of awards | 8 | 4 |
Time Based Cash Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 16 | 9 |
Granted, number of awards | 13 | 14 |
Vested, number of awards | (9) | (4) |
Forfeited, number of awards | (2) | (3) |
Balance as of December 31, number of awards | 18 | 16 |
Rollforward of Share-Based Comp
Rollforward of Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |||
Beginning balance, shares subject to option | 1,814 | 2,140 | |
Granted, shares subject to option | 0 | 0 | 0 |
Exercised, shares subject to option | (8) | (46) | |
Expired and forfeited, shares subject to option | (226) | (280) | |
Ending balance, shares subject to option | 1,580 | 1,814 | 2,140 |
Beginning balance, weighted-average exercise price | $ 11.83 | $ 12.34 | |
Exercisable as of December 31, shares subject to option | 1,580 | ||
Granted, weighted-average exercise price | $ 0 | 0 | |
Exercised, weighted-average exercise price | 2.46 | 2.46 | |
Expired and forfeited, weighted-average exercise price | 15.32 | 17.24 | |
Ending balance, weighted-average exercise price | 11.38 | $ 11.83 | $ 12.34 |
Exercisable as of December 31, weighted-average exercise price | $ 11.38 |
Information about Stock Options
Information about Stock Options Outstanding (Detail) shares in Thousands | 12 Months Ended | |
Dec. 31, 2017$ / sharesshares | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Outstanding, shares | shares | 1,580 | |
Outstanding, average exercise price | $ 11.38 | |
Exercise Price Range, $ 2.00 - $ 2.46 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit | 2 | [1] |
Exercise price range, upper limit | $ 2.46 | [1] |
Outstanding, shares | shares | 308 | |
Outstanding, average life (years) | 1 year 1 month 2 days | [2] |
Outstanding, average exercise price | $ 2.43 | |
Exercise Price Range, $ 7.80 - $ 12.75 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit | 7.80 | |
Exercise price range, upper limit | $ 12.75 | |
Outstanding, shares | shares | 233 | |
Outstanding, average life (years) | 7 months 17 days | [2] |
Outstanding, average exercise price | $ 8.07 | |
Exercise Price Range, $ 14.18 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Deferred Compensation Arrangement with Individual, Exercise Price | $ 14.18 | |
Outstanding, shares | shares | 956 | |
Outstanding, average life (years) | 1 year 11 months 23 days | [2] |
Outstanding, average exercise price | $ 14.18 | |
Exercise Price Range, $14.92 - $22.80 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Exercise price range, lower limit | 14.92 | |
Exercise price range, upper limit | $ 22.80 | |
Outstanding, shares | shares | 83 | |
Outstanding, average life (years) | 5 months 20 days | [2] |
Outstanding, average exercise price | $ 21.62 | |
[1] | These shares have an aggregate intrinsic value of less than $1 million each for total options outstanding and exercisable. | |
[2] | Average contractual life remaining in years. |
Information about Stock Opti133
Information about Stock Options Outstanding (Parenthetical) (Detail) - Exercise Price Range, $ 2.00 - $ 2.46 - Maximum | Dec. 31, 2017USD ($) |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Aggregate intrinsic value, total options outstanding | $ 1,000,000 |
Aggregate intrinsic value, exercisable options | $ 1,000,000 |
Stock Option Activity and Other
Stock Option Activity and Other Equity-Based Awards (Detail) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance, shares subject to option | 1,814 | 2,140 |
Exercised, shares subject to option | (8) | (46) |
Terminated, shares subject to option | (226) | (280) |
Ending balance, shares subject to option | 1,580 | 1,814 |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 3,253 | 3,255 |
Granted, number of awards | 1,414 | 1,230 |
Exercised, number of awards | (918) | (818) |
Terminated, number of awards | (98) | (414) |
Balance as of December 31, number of awards | 3,651 | 3,253 |
Balance as of January 1, weighted-average grant date fair value | $ 6.19 | $ 9.22 |
Granted, weighted-average grant date fair value | 4.01 | 2.04 |
Exercised, weighted-average grant date fair value | 6.65 | 10.13 |
Terminated, weighted-average grant date fair value | 8.61 | 9.70 |
Balance as of December 31, weighted-average grant date fair value | $ 5.14 | $ 6.19 |
Performance Stock Units ("PSUs") | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 3,436 | 710 |
Granted, number of awards | 1,414 | 2,730 |
Exercised, number of awards | 0 | 0 |
Terminated, number of awards | (266) | (4) |
Balance as of December 31, number of awards | 4,584 | 3,436 |
Balance as of January 1, weighted-average grant date fair value | $ 4.41 | $ 10.63 |
Granted, weighted-average grant date fair value | 4.01 | 2.81 |
Exercised, weighted-average grant date fair value | 0 | 0 |
Terminated, weighted-average grant date fair value | 15.33 | 15.23 |
Balance as of December 31, weighted-average grant date fair value | $ 3.65 | $ 4.41 |
Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 1,164 | 880 |
Granted, number of awards | 295 | 284 |
Exercised, number of awards | (200) | 0 |
Terminated, number of awards | 0 | 0 |
Balance as of December 31, number of awards | 1,259 | 1,164 |
Balance as of January 1, weighted-average grant date fair value | $ 6.72 | $ 8.18 |
Granted, weighted-average grant date fair value | 2.67 | 2.14 |
Exercised, weighted-average grant date fair value | 7.25 | 0 |
Terminated, weighted-average grant date fair value | 0 | 0 |
Balance as of December 31, weighted-average grant date fair value | $ 5.70 | $ 6.72 |
Stock Appreciation Rights | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 10,840 | 12,148 |
Granted, number of awards | 0 | 0 |
Exercised, number of awards | 0 | 0 |
Terminated, number of awards | (539) | (1,308) |
Balance as of December 31, number of awards | 10,301 | 10,840 |
Balance as of January 1, weighted-average grant date fair value | $ 3.54 | $ 3.56 |
Granted, weighted-average grant date fair value | 0 | 0 |
Exercised, weighted-average grant date fair value | 0 | 0 |
Terminated, weighted-average grant date fair value | 5.21 | 3.72 |
Balance as of December 31, weighted-average grant date fair value | $ 3.45 | $ 3.54 |
Genworth MI Canada Inc. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning balance, shares subject to option | 957 | 955 |
Granted, shares subject to option | 70 | 95 |
Exercised, shares subject to option | (192) | (65) |
Terminated, shares subject to option | (10) | (28) |
Ending balance, shares subject to option | 825 | 957 |
Genworth MI Canada Inc. | Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 64 | 54 |
Granted, number of awards | 10 | 12 |
Exercised, number of awards | 0 | (2) |
Terminated, number of awards | 0 | 0 |
Balance as of December 31, number of awards | 74 | 64 |
Genworth MI Canada Inc. | Restricted Stock Units and Performance Stock Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 235 | 194 |
Granted, number of awards | 97 | 126 |
Exercised, number of awards | (92) | (77) |
Terminated, number of awards | (21) | (8) |
Balance as of December 31, number of awards | 219 | 235 |
Genworth MI Canada Inc. | Executive Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 45 | 31 |
Granted, number of awards | 2 | 14 |
Exercised, number of awards | 0 | 0 |
Terminated, number of awards | 0 | 0 |
Balance as of December 31, number of awards | 47 | 45 |
Genworth Australia | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercised, number of awards | 0 | 0 |
Genworth Australia | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 1,276 | 2,774 |
Granted, number of awards | 382 | 280 |
Exercised, number of awards | (633) | (894) |
Terminated, number of awards | (157) | (884) |
Balance as of December 31, number of awards | 868 | 1,276 |
Genworth Australia | Long-term Incentive Plan Shares subject to option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Balance as of January 1, number of awards | 920 | 526 |
Granted, number of awards | 721 | 742 |
Exercised, number of awards | 0 | 0 |
Terminated, number of awards | (154) | (348) |
Balance as of December 31, number of awards | 1,487 | 920 |
Fair Value Financial Instrument
Fair Value Financial Instruments Not Required to Be Carried at Fair Value (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans | $ 6,341 | $ 6,111 | |
Restricted commercial mortgage loans | 107 | 129 | |
Other invested assets | 1,813 | 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 | [1] | 0 | 0 |
Other invested assets | 0 | 0 | |
Long-term borrowings | [2] | 0 | 0 |
Non-recourse funding obligations | [2] | 0 | 0 |
Borrowings related to securitization entities | [1] | 0 | 0 |
Investment contracts | 0 | 0 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 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 | [1] | 0 | 0 |
Other invested assets | 0 | 352 | |
Long-term borrowings | [2] | 3,566 | 3,440 |
Non-recourse funding obligations | [2] | 0 | 0 |
Borrowings related to securitization entities | [1] | 41 | 65 |
Investment contracts | 5 | 5 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 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 | 6,573 | 6,247 | |
Restricted commercial mortgage loans | [1] | 116 | 141 |
Other invested assets | 299 | 121 | |
Long-term borrowings | [2] | 159 | 142 |
Non-recourse funding obligations | [2] | 201 | 186 |
Borrowings related to securitization entities | [1] | 0 | 0 |
Investment contracts | 15,118 | 16,988 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 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 | 6,341 | 6,111 | |
Restricted commercial mortgage loans | [1] | 107 | 129 |
Other invested assets | 277 | 459 | |
Long-term borrowings | [2] | 4,224 | 4,180 |
Non-recourse funding obligations | [2] | 310 | 310 |
Borrowings related to securitization entities | [1] | 40 | 62 |
Investment contracts | 14,700 | 16,437 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 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 | 6,573 | 6,247 | |
Restricted commercial mortgage loans | [1] | 116 | 141 |
Other invested assets | 299 | 473 | |
Long-term borrowings | [2] | 3,725 | 3,582 |
Non-recourse funding obligations | [2] | 201 | 186 |
Borrowings related to securitization entities | [1] | 41 | 65 |
Investment contracts | 15,123 | 16,993 | |
Commitments to fund limited partnerships | 0 | 0 | |
Commitments to fund bank loan investments | 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 | [3] | 0 | 0 |
Restricted commercial mortgage loans | [1],[3] | 0 | 0 |
Other invested assets | [3] | 0 | 0 |
Long-term borrowings | [2],[3] | 0 | 0 |
Non-recourse funding obligations | [2],[3] | 0 | 0 |
Borrowings related to securitization entities | [1],[3] | 0 | 0 |
Investment contracts | [3] | 0 | 0 |
Commitments to fund limited partnerships | 317 | 201 | |
Commitments to fund bank loan investments | 18 | ||
Ordinary course of business lending commitments | $ 168 | $ 73 | |
[1] | See note 17 for additional information related to consolidated securitization entities. | ||
[2] | See note 12 for additional information related to borrowings. | ||
[3] | These financial instruments do not have notional amounts. |
Fair Value of Financial Inst136
Fair Value of Financial Instruments - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 62,525 | $ 60,572 |
GMWB non-performance risk impact | $ 63 | $ 73 |
Period end valuation | 0 | 0 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,926 | $ 2,647 |
Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,233 | 2,107 |
Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 28,636 | 26,828 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 12,611 | 12,295 |
Level 2 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 58,575 | 56,271 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,889 | 2,610 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 2,233 | 2,107 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 26,484 | 24,341 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 11,195 | 10,762 |
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 | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 2,877 | |
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 | 2,217 | |
Level 2 | Fixed maturity securities | Third-Party Pricing Services | U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 25,414 | |
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 | 10,665 | |
Level 2 | Fixed maturity securities | Internal models | State and Political Subdivisions | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 12 | |
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 | 1,070 | |
Level 2 | Fixed maturity securities | Internal models | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 530 | |
Level 3 | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,950 | 4,301 |
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. 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 | 2,152 | 2,487 |
Level 3 | Fixed maturity securities | Non-U.S. corporate | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 1,416 | $ 1,533 |
Level 3 | Fixed maturity securities | Internal models | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | 3,335 | |
Level 3 | Fixed maturity securities | Broker Quotes | ||
Fair Value of Financial Instruments [Line Items] | ||
Available-for-sale debt securities | $ 615 |
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 | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 62,525 | $ 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 | 5,548 | 6,036 |
Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,926 | 2,647 |
Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,233 | 2,107 |
Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 28,636 | 26,828 |
Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 12,611 | 12,295 |
Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 4,057 | 4,379 |
Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,446 | 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 | 58,575 | 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 | 5,547 | 6,034 |
Level 2 | Fixed maturity securities | State and Political Subdivisions | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,889 | 2,610 |
Level 2 | Fixed maturity securities | Non-U.S. government | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,233 | 2,107 |
Level 2 | Fixed maturity securities | U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 26,484 | 24,341 |
Level 2 | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 11,195 | 10,762 |
Level 2 | Fixed maturity securities | Residential mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,980 | 4,336 |
Level 2 | Fixed maturity securities | Commercial mortgage-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 3,416 | 3,075 |
Level 2 | Fixed maturity securities | Other asset-backed | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | 2,831 | $ 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 | $ 5,547 | |
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 | $ 2,877 | |
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 | $ 2,217 | |
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 | $ 25,414 | |
Primary methodologies | Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, internal models, OAS-based models | |
Significant inputs | Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine ("TRACE") reports | |
Level 2 | Third-Party Pricing Services | Fixed maturity securities | Non-U.S. corporate | ||
Fair value measurements Significant unobservable inputs [Line Items] | ||
Available-for-sale debt securities | $ 10,665 | |
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 | $ 3,980 | |
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 | $ 3,416 | |
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 | $ 2,831 | |
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 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | $ 62,525 | $ 60,572 | ||
Restricted other invested assets related to securitization entities | [1] | 312 | ||
Available-for-sale equity securities | 820 | 632 | ||
Derivative assets, fair value | 290 | [2] | 724 | |
Total other invested assets | 1,813 | 2,071 | ||
Separate account assets | 7,230 | 7,299 | ||
Total assets | 72,035 | 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 | 276 | 708 | ||
Securities lending collateral | 268 | 534 | ||
Short-term investments | 902 | |||
Interest rate swaps | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | 74 | 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 | 80 | 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 | 110 | 35 | ||
GMWB embedded derivatives | Reinsurance recoverable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets, fair value | [3] | 14 | 16 | |
Fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other invested assets | 299 | 473 | ||
Fair value | Other invested assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total other invested assets | 1,446 | 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 | 5,548 | 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 | 2,926 | 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 | 2,233 | 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 | 28,636 | 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 | 4,998 | 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 | 2,458 | 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 | 6,528 | 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 | 4,831 | 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 | 2,845 | 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 | 2,355 | 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 | 1,605 | 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 | 1,291 | 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 | 379 | 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 | 12,611 | 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 | 1,017 | 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 | 1,490 | 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 | 2,735 | 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 | 712 | 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 | 982 | 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 | 1,044 | 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 | 645 | 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 | 540 | 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 | 721 | 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 | 2,725 | 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 | 4,057 | 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 | 3,446 | 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 | [1] | 0 | ||
Available-for-sale equity securities | 696 | 551 | ||
Total other invested assets | 0 | 0 | ||
Separate account assets | 7,230 | 7,299 | ||
Total assets | 8,033 | 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 | 107 | |||
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 | [3] | 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 | 107 | 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 | 58,575 | 56,271 | ||
Restricted other invested assets related to securitization entities | [1] | 181 | ||
Available-for-sale equity securities | 80 | 34 | ||
Total other invested assets | 0 | 352 | ||
Separate account assets | 0 | 0 | ||
Total assets | 59,914 | 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 | 196 | 633 | ||
Securities lending collateral | 268 | 534 | ||
Short-term investments | 795 | |||
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 | 74 | 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 | 110 | 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 | [3] | 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 | 1,259 | 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 | 5,547 | 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 | 2,889 | 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 | 2,233 | 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 | 26,484 | 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 | 4,424 | 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 | 2,311 | 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 | 5,902 | 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 | 4,750 | 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 | 2,772 | 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 | 1,307 | 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 | 2,234 | 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 | 1,343 | 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 | 1,231 | 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 | 11,195 | 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 | 674 | 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 | 1,314 | 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 | 2,574 | 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 | 588 | 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 | 953 | 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 | 928 | 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 | 454 | 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 | 486 | 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 | 551 | 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 | 2,673 | 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 | 3,980 | 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 | 3,416 | 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 | 2,831 | 3,006 | ||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities | 3,950 | 4,301 | ||
Restricted other invested assets related to securitization entities | [1] | 131 | ||
Available-for-sale equity securities | 44 | 47 | ||
Total other invested assets | 299 | 121 | ||
Separate account assets | 0 | 0 | ||
Total assets | 4,088 | 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 | 80 | 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 | 80 | 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 | [3] | 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 | 80 | 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 | 2,152 | 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 | 574 | 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 | 147 | 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 | 626 | 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 | 81 | 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 | 73 | 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 | 39 | 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 | 121 | 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 | 60 | 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 | 169 | 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 | 1,416 | 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 | 343 | 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 | 176 | 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 | 161 | 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 | 124 | 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 | 116 | 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 | 191 | 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 | 54 | 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 | 170 | 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 | 52 | 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 | 77 | 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 | 30 | 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 | $ 237 | $ 145 | ||
[1] | See note 17 for additional information related to consolidated securitization entities. | |||
[2] | 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 $473 million and $206 million, respectively, in 2017. | |||
[3] | Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities. |
Assets Measured at Fair Value o
Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | $ 4,570 | $ 5,501 | $ 6,051 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 89 | (26) | 10 | ||||
Total realized and unrealized gains (losses), Included in OCI | 94 | 40 | (127) | ||||
Purchases | 630 | 823 | 662 | ||||
Sales | (277) | (214) | (236) | ||||
Issuances | 2 | 2 | 3 | ||||
Settlements | (616) | (515) | (683) | ||||
Transfer into Level 3 | 223 | [1] | 461 | [2] | 415 | [3] | |
Transfer out of Level 3 | (627) | [1] | (1,502) | [2] | (594) | [3] | |
Ending balance | 4,088 | 4,570 | 5,501 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 51 | 17 | 24 | ||||
Other invested assets | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 75 | 34 | 20 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 54 | 9 | (26) | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 72 | 78 | 43 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (121) | (46) | (3) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 80 | 75 | 34 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 34 | 1 | (3) | ||||
Other invested assets | Derivative assets | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 75 | 34 | 20 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 54 | 9 | (26) | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 72 | 78 | 43 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (121) | (46) | (3) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 80 | 75 | 34 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 34 | 1 | (3) | ||||
Other invested assets | Derivative assets | Credit default swaps | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 0 | 1 | 3 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | (1) | (3) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 0 | 0 | 1 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 1 | ||||
Other invested assets | Derivative assets | Equity index options | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 72 | 30 | 17 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 57 | 10 | (25) | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 72 | 76 | 38 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (121) | (44) | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 80 | 72 | 30 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 36 | 2 | (3) | ||||
Other invested assets | Derivative assets | Other foreign currency contracts | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 3 | 3 | 0 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | (3) | (1) | (2) | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 0 | 2 | 5 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | (1) | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 0 | 3 | 3 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | (2) | (1) | (1) | ||||
Restricted other invested assets related to securitization entities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | [4] | 131 | 232 | 230 | |||
Total realized and unrealized gains (losses), Included in net income (loss) | [4] | 0 | (55) | 2 | |||
Total realized and unrealized gains (losses), Included in OCI | [4] | 0 | 0 | 0 | |||
Purchases | [4] | 0 | 0 | 0 | |||
Sales | [4] | (131) | 0 | 0 | |||
Issuances | [4] | 0 | 0 | 0 | |||
Settlements | [4] | 0 | (46) | 0 | |||
Transfer into Level 3 | [4] | 0 | [1] | 0 | [2] | 0 | [3] |
Transfer out of Level 3 | [4] | 0 | [1] | 0 | [2] | 0 | [3] |
Ending balance | [4] | 0 | 131 | 232 | |||
Total gains (losses) included in net income (loss) attributable to assets still held | [4] | 0 | 9 | 2 | |||
Reinsurance recoverable | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | [5] | 16 | 17 | 13 | |||
Total realized and unrealized gains (losses), Included in net income (loss) | [5] | (4) | (3) | 1 | |||
Total realized and unrealized gains (losses), Included in OCI | [5] | 0 | 0 | 0 | |||
Purchases | [5] | 0 | 0 | 0 | |||
Sales | [5] | 0 | 0 | 0 | |||
Issuances | [5] | 2 | 2 | 3 | |||
Settlements | [5] | 0 | 0 | 0 | |||
Transfer into Level 3 | [5] | 0 | [1] | 0 | [2] | 0 | [3] |
Transfer out of Level 3 | [5] | 0 | [1] | 0 | [2] | 0 | [3] |
Ending balance | [5] | 14 | 16 | 17 | |||
Total gains (losses) included in net income (loss) attributable to assets still held | [5] | (4) | (3) | 1 | |||
Fixed maturity securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 4,301 | 5,180 | 5,754 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 39 | 23 | 33 | ||||
Total realized and unrealized gains (losses), Included in OCI | 94 | 40 | (127) | ||||
Purchases | 557 | 732 | 618 | ||||
Sales | (145) | (210) | (230) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (495) | (423) | (680) | ||||
Transfer into Level 3 | 223 | [1] | 461 | [2] | 406 | [3] | |
Transfer out of Level 3 | (624) | [1] | (1,502) | [2] | (594) | [3] | |
Ending balance | 3,950 | 4,301 | 5,180 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 21 | 10 | 24 | ||||
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 | 2 | 3 | 4 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (1) | (1) | (1) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 1 | 2 | 3 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 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 | 35 | 30 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 3 | 2 | 3 | ||||
Total realized and unrealized gains (losses), Included in OCI | (3) | 0 | 7 | ||||
Purchases | 0 | 7 | 5 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | (7) | [2] | (10) | [3] | |
Ending balance | 37 | 37 | 35 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 3 | 2 | 3 | ||||
Fixed maturity securities | U.S. corporate | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 2,487 | 2,329 | 2,419 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 41 | 33 | 24 | ||||
Total realized and unrealized gains (losses), Included in OCI | 51 | 4 | (84) | ||||
Purchases | 232 | 439 | 294 | ||||
Sales | (67) | (53) | (16) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (342) | (208) | (191) | ||||
Transfer into Level 3 | 76 | [1] | 204 | [2] | 137 | [3] | |
Transfer out of Level 3 | (326) | [1] | (261) | [2] | (254) | [3] | |
Ending balance | 2,152 | 2,487 | 2,329 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 15 | 22 | 19 | ||||
Fixed maturity securities | U.S. corporate | Utilities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 576 | 449 | 444 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 24 | 1 | (14) | ||||
Purchases | 76 | 149 | 67 | ||||
Sales | 0 | (6) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (11) | (21) | (16) | ||||
Transfer into Level 3 | 30 | [1] | 73 | [2] | 10 | [3] | |
Transfer out of Level 3 | (121) | [1] | (70) | [2] | (42) | [3] | |
Ending balance | 574 | 576 | 449 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | ||||
Fixed maturity securities | U.S. corporate | Energy | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 210 | 253 | 285 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 5 | (2) | (13) | ||||
Purchases | 10 | 10 | 4 | ||||
Sales | (31) | 0 | (4) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (32) | (11) | (11) | ||||
Transfer into Level 3 | 1 | [1] | 7 | [2] | 0 | [3] | |
Transfer out of Level 3 | (16) | [1] | (47) | [2] | (8) | [3] | |
Ending balance | 147 | 210 | 253 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | (1) | 0 | 0 | ||||
Fixed maturity securities | U.S. corporate | Finance and insurance | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 786 | 715 | 616 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 20 | 16 | 16 | ||||
Total realized and unrealized gains (losses), Included in OCI | 5 | 9 | (28) | ||||
Purchases | 79 | 69 | 90 | ||||
Sales | (31) | (14) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (206) | (63) | (33) | ||||
Transfer into Level 3 | 8 | [1] | 72 | [2] | 97 | [3] | |
Transfer out of Level 3 | (35) | [1] | (18) | [2] | (43) | [3] | |
Ending balance | 626 | 786 | 715 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 11 | 15 | 14 | ||||
Fixed maturity securities | U.S. corporate | Consumer-non-cyclical | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 121 | 109 | 140 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 2 | ||||
Total realized and unrealized gains (losses), Included in OCI | 2 | 3 | (3) | ||||
Purchases | 4 | 30 | 29 | ||||
Sales | 0 | (18) | (9) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (8) | (3) | (40) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | (38) | [1] | 0 | [2] | (10) | [3] | |
Ending balance | 81 | 121 | 109 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 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 | 54 | 35 | 45 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 3 | 3 | 3 | ||||
Total realized and unrealized gains (losses), Included in OCI | 7 | (3) | (2) | ||||
Purchases | 31 | 30 | 0 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (1) | 0 | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | (21) | [1] | (11) | [2] | (11) | [3] | |
Ending balance | 73 | 54 | 35 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 3 | 3 | 3 | ||||
Fixed maturity securities | U.S. corporate | Industrial | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 48 | 61 | 36 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 5 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | (1) | 2 | (3) | ||||
Purchases | 13 | 0 | 28 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (8) | (32) | 0 | ||||
Transfer into Level 3 | 0 | [1] | 12 | [2] | 0 | [3] | |
Transfer out of Level 3 | (14) | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 39 | 48 | 61 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 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 | 152 | 180 | 166 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 1 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 3 | (2) | (6) | ||||
Purchases | 7 | 30 | 30 | ||||
Sales | 0 | (10) | (3) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (5) | 0 | (1) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | (37) | [1] | (47) | [2] | (6) | [3] | |
Ending balance | 121 | 152 | 180 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 1 | 0 | ||||
Fixed maturity securities | U.S. corporate | Consumer-cyclical | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 258 | 239 | 363 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 4 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | 9 | (1) | (8) | ||||
Purchases | 12 | 68 | 39 | ||||
Sales | 0 | (5) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (15) | (44) | (52) | ||||
Transfer into Level 3 | 0 | [1] | 19 | [2] | 11 | [3] | |
Transfer out of Level 3 | (2) | [1] | (22) | [2] | (115) | [3] | |
Ending balance | 262 | 258 | 239 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | ||||
Fixed maturity securities | U.S. corporate | Transportation | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 139 | 106 | 153 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 16 | 2 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | (5) | (1) | (5) | ||||
Purchases | 0 | 53 | 7 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (48) | (26) | (31) | ||||
Transfer into Level 3 | 0 | [1] | 5 | [2] | 0 | [3] | |
Transfer out of Level 3 | (42) | [1] | 0 | [2] | (19) | [3] | |
Ending balance | 60 | 139 | 106 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 1 | 2 | 1 | ||||
Fixed maturity securities | U.S. corporate | Other | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 143 | 182 | 171 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 1 | ||||
Total realized and unrealized gains (losses), Included in OCI | 2 | (2) | (2) | ||||
Purchases | 0 | 0 | 0 | ||||
Sales | (5) | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (8) | (8) | (7) | ||||
Transfer into Level 3 | 37 | [1] | 16 | [2] | 19 | [3] | |
Transfer out of Level 3 | 0 | [1] | (46) | [2] | 0 | [3] | |
Ending balance | 169 | 143 | 182 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 1 | 1 | ||||
Fixed maturity securities | Non-U.S. corporate | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 1,533 | 1,545 | 1,804 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 5 | 5 | 4 | ||||
Total realized and unrealized gains (losses), Included in OCI | 31 | 39 | (49) | ||||
Purchases | 126 | 195 | 100 | ||||
Sales | (34) | (86) | (24) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (126) | (170) | (208) | ||||
Transfer into Level 3 | 52 | [1] | 132 | [2] | 16 | [3] | |
Transfer out of Level 3 | (171) | [1] | (127) | [2] | (98) | [3] | |
Ending balance | 1,416 | 1,533 | 1,545 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 3 | 2 | 2 | ||||
Fixed maturity securities | Non-U.S. corporate | Utilities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 386 | 287 | 328 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 3 | (7) | (4) | ||||
Purchases | 30 | 126 | 18 | ||||
Sales | 0 | (5) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | (51) | (46) | ||||
Transfer into Level 3 | 0 | [1] | 46 | [2] | 0 | [3] | |
Transfer out of Level 3 | (76) | [1] | (10) | [2] | (9) | [3] | |
Ending balance | 343 | 386 | 287 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | ||||
Fixed maturity securities | Non-U.S. corporate | Energy | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 206 | 252 | 324 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | (1) | ||||
Total realized and unrealized gains (losses), Included in OCI | 5 | 30 | (21) | ||||
Purchases | 0 | 8 | 15 | ||||
Sales | (1) | (27) | (24) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (1) | (31) | (41) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | (33) | [1] | (26) | [2] | 0 | [3] | |
Ending balance | 176 | 206 | 252 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | (1) | ||||
Fixed maturity securities | Non-U.S. corporate | Finance and insurance | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 182 | 191 | 221 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 5 | 3 | 5 | ||||
Total realized and unrealized gains (losses), Included in OCI | 10 | (2) | (6) | ||||
Purchases | 5 | 11 | 21 | ||||
Sales | 0 | (1) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (32) | 0 | (26) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | (9) | [1] | (20) | [2] | (24) | [3] | |
Ending balance | 161 | 182 | 191 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 3 | 3 | 3 | ||||
Fixed maturity securities | Non-U.S. corporate | Consumer-non-cyclical | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 139 | 169 | 197 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 2 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 2 | 5 | (1) | ||||
Purchases | 5 | 3 | 15 | ||||
Sales | 0 | (3) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (22) | (49) | (41) | ||||
Transfer into Level 3 | 0 | [1] | 12 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | (1) | [3] | |
Ending balance | 124 | 139 | 169 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 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 | 67 | 62 | 42 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 1 | 3 | (4) | ||||
Purchases | 0 | 18 | 24 | ||||
Sales | (21) | (16) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (19) | 0 | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 29 | 67 | 62 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 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 | 109 | 84 | 131 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 3 | 4 | (4) | ||||
Purchases | 13 | 17 | 7 | ||||
Sales | 0 | (21) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | (18) | ||||
Transfer into Level 3 | 14 | [1] | 25 | [2] | 1 | [3] | |
Transfer out of Level 3 | (23) | [1] | 0 | [2] | (33) | [3] | |
Ending balance | 116 | 109 | 84 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 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 | 169 | 213 | 237 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 1 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 3 | 3 | (7) | ||||
Purchases | 52 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (25) | (15) | (17) | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 0 | [3] | |
Transfer out of Level 3 | (8) | [1] | (33) | [2] | 0 | [3] | |
Ending balance | 191 | 169 | 213 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 1 | 0 | ||||
Fixed maturity securities | Non-U.S. corporate | Consumer-cyclical | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 69 | 71 | 89 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | (2) | ||||
Purchases | 0 | 0 | 0 | ||||
Sales | 0 | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (17) | (2) | 0 | ||||
Transfer into Level 3 | 2 | [1] | 0 | [2] | 15 | [3] | |
Transfer out of Level 3 | 0 | [1] | 0 | [2] | (31) | [3] | |
Ending balance | 54 | 69 | 71 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 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 | 181 | 144 | 154 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 1 | 1 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 2 | 0 | (2) | ||||
Purchases | 6 | 12 | 0 | ||||
Sales | (10) | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (10) | (15) | (8) | ||||
Transfer into Level 3 | 11 | [1] | 39 | [2] | 0 | [3] | |
Transfer out of Level 3 | (11) | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 170 | 181 | 144 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 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 | 25 | 72 | 81 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | (2) | (2) | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 2 | 3 | 2 | ||||
Purchases | 15 | 0 | 0 | ||||
Sales | (2) | (13) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | (7) | (11) | ||||
Transfer into Level 3 | 25 | [1] | 10 | [2] | 0 | [3] | |
Transfer out of Level 3 | (11) | [1] | (38) | [2] | 0 | [3] | |
Ending balance | 52 | 25 | 72 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | (2) | 0 | ||||
Fixed maturity securities | Residential mortgage-backed | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 43 | 116 | 65 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 1 | (1) | ||||
Purchases | 35 | 51 | 58 | ||||
Sales | 0 | (45) | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (3) | (14) | (10) | ||||
Transfer into Level 3 | 26 | [1] | 22 | [2] | 76 | [3] | |
Transfer out of Level 3 | (24) | [1] | (88) | [2] | (72) | [3] | |
Ending balance | 77 | 43 | 116 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | ||||
Fixed maturity securities | Commercial mortgage-backed | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 54 | 10 | 5 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | (2) | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 4 | (7) | (1) | ||||
Purchases | 31 | 24 | 9 | ||||
Sales | (9) | 0 | 0 | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | (4) | (2) | ||||
Transfer into Level 3 | 0 | [1] | 37 | [2] | 13 | [3] | |
Transfer out of Level 3 | (48) | [1] | (6) | [2] | (14) | [3] | |
Ending balance | 30 | 54 | 10 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | 0 | 0 | ||||
Fixed maturity securities | Other asset-backed | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 145 | 1,142 | 1,420 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | (8) | (17) | 2 | ||||
Total realized and unrealized gains (losses), Included in OCI | 11 | 3 | 2 | ||||
Purchases | 133 | 16 | 152 | ||||
Sales | (35) | (26) | (190) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | (23) | (26) | (267) | ||||
Transfer into Level 3 | 69 | [1] | 66 | [2] | 164 | [3] | |
Transfer out of Level 3 | (55) | [1] | (1,013) | [2] | (141) | [3] | |
Ending balance | 237 | 145 | 1,142 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | (16) | 0 | ||||
Fixed maturity securities | Non-U.S. government | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 0 | 7 | |||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | ||||||
Total realized and unrealized gains (losses), Included in OCI | (1) | ||||||
Purchases | 0 | ||||||
Sales | 0 | ||||||
Issuances | 0 | ||||||
Settlements | (1) | ||||||
Transfer into Level 3 | [3] | 0 | |||||
Transfer out of Level 3 | [3] | (5) | |||||
Ending balance | 0 | ||||||
Total gains (losses) included in net income (loss) attributable to assets still held | 0 | ||||||
Equity Securities | |||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||||
Beginning balance | 47 | 38 | 34 | ||||
Total realized and unrealized gains (losses), Included in net income (loss) | 0 | 0 | 0 | ||||
Total realized and unrealized gains (losses), Included in OCI | 0 | 0 | 0 | ||||
Purchases | 1 | 13 | 1 | ||||
Sales | (1) | (4) | (6) | ||||
Issuances | 0 | 0 | 0 | ||||
Settlements | 0 | 0 | 0 | ||||
Transfer into Level 3 | 0 | [1] | 0 | [2] | 9 | [3] | |
Transfer out of Level 3 | (3) | [1] | 0 | [2] | 0 | [3] | |
Ending balance | 44 | 47 | 38 | ||||
Total gains (losses) included in net income (loss) attributable to assets still held | $ 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. Most significantly, the majority of the transfers out of Level 3 related to a reclassification of collateralized loan obligation securities previously valued using a broker priced source to now being valued using third-party pricing services. | ||||||
[2] | The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities. | ||||||
[3] | 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. | ||||||
[4] | See note 17 for additional information related to consolidated securitization entities. | ||||||
[5] | 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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income (loss), assets | $ 89 | $ (26) | $ 10 |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | 51 | 17 | 24 |
Net Investment Income | |||
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income (loss), assets | 26 | 44 | 42 |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | 22 | 30 | 33 |
Net Investment (Gains) Losses | |||
Fair value of financial instruments [Abstract] | |||
Total realized and unrealized gains (losses) included in net income (loss), assets | 63 | (70) | (32) |
Total gains (losses) included in net income (loss) attributable to assets still held, assets | $ 29 | $ (13) | $ (9) |
Summary of Significant Unobserv
Summary of Significant Unobservable Inputs Used for Fair Value Measurements Classified As Level 3 (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ 730 | [1] | $ 1,041 | |
Fixed maturity securities available-for-sale, at fair value | 62,525 | 60,572 | ||
Derivative assets, fair value | 290 | [1] | 724 | |
Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | 683 | 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] | 250 | 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 | 419 | 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 | $ 3,950 | 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 | |||
Derivative assets, fair value | $ 80 | |||
Fair value input, equity index volatility, lower limit | 6.00% | |||
Fair value input, equity index volatility, upper limit | 30.00% | |||
Fair value input, equity index volatility, weighted-average | 15.00% | |||
Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative liabilities, fair value | $ 683 | 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] | $ 250 | 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] | 0.19% | ||
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] | 0.65% | ||
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 | $ 419 | 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 | $ 1,971 | |||
Fair value input, credit spreads, lower limit | 0.52% | |||
Fair value input, credit spreads, upper limit | 3.64% | |||
Fair value input, credit spreads, weighted-average | 1.30% | |||
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 | $ 554 | |||
Fair value input, credit spreads, lower limit | 0.63% | |||
Fair value input, credit spreads, upper limit | 3.64% | |||
Fair value input, credit spreads, weighted-average | 1.19% | |||
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 | $ 95 | |||
Fair value input, credit spreads, lower limit | 0.70% | |||
Fair value input, credit spreads, upper limit | 1.82% | |||
Fair value input, credit spreads, weighted-average | 1.31% | |||
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 | $ 587 | |||
Fair value input, credit spreads, lower limit | 0.63% | |||
Fair value input, credit spreads, upper limit | 3.49% | |||
Fair value input, credit spreads, weighted-average | 1.55% | |||
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 | $ 81 | |||
Fair value input, credit spreads, lower limit | 0.75% | |||
Fair value input, credit spreads, upper limit | 1.35% | |||
Fair value input, credit spreads, weighted-average | 1.10% | |||
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 | $ 73 | |||
Fair value input, credit spreads, lower limit | 0.53% | |||
Fair value input, credit spreads, upper limit | 3.01% | |||
Fair value input, credit spreads, weighted-average | 2.50% | |||
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 | $ 12 | |||
Fair value input, credit spreads | 1.82% | |||
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 | $ 120 | |||
Fair value input, credit spreads, lower limit | 0.83% | |||
Fair value input, credit spreads, upper limit | 2.23% | |||
Fair value input, credit spreads, weighted-average | 1.26% | |||
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 | 0.59% | |||
Fair value input, credit spreads, upper limit | 1.86% | |||
Fair value input, credit spreads, weighted-average | 1.16% | |||
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 | 0.52% | |||
Fair value input, credit spreads, upper limit | 1.12% | |||
Fair value input, credit spreads, weighted-average | 0.78% | |||
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 | $ 159 | |||
Fair value input, credit spreads, lower limit | 0.56% | |||
Fair value input, credit spreads, upper limit | 0.99% | |||
Fair value input, credit spreads, weighted-average | 0.65% | |||
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 | $ 1,316 | |||
Fair value input, credit spreads, lower limit | 0.52% | |||
Fair value input, credit spreads, upper limit | 2.25% | |||
Fair value input, credit spreads, weighted-average | 1.10% | |||
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 | $ 343 | |||
Fair value input, credit spreads, lower limit | 0.65% | |||
Fair value input, credit spreads, upper limit | 1.38% | |||
Fair value input, credit spreads, weighted-average | 1.03% | |||
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 | 0.83% | |||
Fair value input, credit spreads, upper limit | 1.35% | |||
Fair value input, credit spreads, weighted-average | 1.00% | |||
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 | $ 152 | |||
Fair value input, credit spreads, lower limit | 0.59% | |||
Fair value input, credit spreads, upper limit | 1.75% | |||
Fair value input, credit spreads, weighted-average | 0.96% | |||
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 | $ 113 | |||
Fair value input, credit spreads, lower limit | 0.52% | |||
Fair value input, credit spreads, upper limit | 1.82% | |||
Fair value input, credit spreads, weighted-average | 1.04% | |||
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 | 1.12% | |||
Fair value input, credit spreads, upper limit | 2.13% | |||
Fair value input, credit spreads, weighted-average | 1.58% | |||
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 | $ 116 | |||
Fair value input, credit spreads, lower limit | 0.94% | |||
Fair value input, credit spreads, upper limit | 1.72% | |||
Fair value input, credit spreads, weighted-average | 1.25% | |||
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 | $ 162 | |||
Fair value input, credit spreads, lower limit | 0.75% | |||
Fair value input, credit spreads, upper limit | 2.23% | |||
Fair value input, credit spreads, weighted-average | 1.28% | |||
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 | $ 53 | |||
Fair value input, credit spreads, lower limit | 0.63% | |||
Fair value input, credit spreads, upper limit | 1.60% | |||
Fair value input, credit spreads, weighted-average | 0.91% | |||
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 | $ 150 | |||
Fair value input, credit spreads, lower limit | 0.69% | |||
Fair value input, credit spreads, upper limit | 1.82% | |||
Fair value input, credit spreads, weighted-average | 1.04% | |||
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 | $ 52 | |||
Fair value input, credit spreads, lower limit | 0.95% | |||
Fair value input, credit spreads, upper limit | 2.25% | |||
Fair value input, credit spreads, weighted-average | 1.49% | |||
[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 $473 million and $206 million, respectively, in 2017. | |||
[2] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities by Class of Instrum
Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | $ 730 | [1] | $ 1,041 | |
Borrowings related to securitization entities | [2] | 12 | ||
Total liabilities | 730 | 1,053 | ||
Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 47 | 383 | ||
Other liabilities | Interest rate swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 25 | 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 | 20 | 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 | [3] | 1 | ||
Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 683 | 658 | ||
Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | [3] | 250 | 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 | 419 | 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 | [2] | 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 | [3] | 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 | [3] | 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 | [2] | 0 | ||
Total liabilities | 47 | 383 | ||
Level 2 | Other liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 47 | 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 | 25 | 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 | 20 | 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 | [3] | 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 | [3] | 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 | [2] | 12 | ||
Total liabilities | 683 | 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 | [3] | 0 | ||
Level 3 | Policyholder account balances | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liabilities, fair value | 683 | 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 | [3] | 250 | 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 | 419 | 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 $473 million and $206 million, respectively, in 2017. | |||
[2] | See note 17 for additional information related to consolidated securitization entities. | |||
[3] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Liabilities Measured at Fair Va
Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 670 | $ 799 | $ 676 | |
Total realized and unrealized (gains) losses included in net (income) loss | (6) | (143) | 16 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 4 | |
Sales | 0 | 0 | 0 | |
Issuances | 40 | 53 | 109 | |
Settlements | (21) | (36) | (6) | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | (3) | 0 | |
Ending balance | 683 | 670 | 799 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (4) | (60) | 48 | |
Derivative liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 0 | 14 | 17 | |
Total realized and unrealized (gains) losses included in net (income) loss | (13) | (7) | ||
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | ||
Purchases | 0 | 4 | ||
Sales | 0 | 0 | ||
Issuances | 2 | 0 | ||
Settlements | 0 | 0 | ||
Transfer into Level 3 | 0 | 0 | ||
Transfer out of Level 3 | (3) | 0 | ||
Ending balance | 0 | 14 | ||
Total (gains) losses included in net (income) loss attributable to liabilities still held | 0 | 21 | ||
Credit default swaps related to securitization entities | Derivative liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [1] | 0 | 14 | 17 |
Total realized and unrealized (gains) losses included in net (income) loss | [1] | (13) | (7) | |
Total realized and unrealized (gains) losses included in OCI | [1] | 0 | 0 | |
Purchases | [1] | 0 | 4 | |
Sales | [1] | 0 | 0 | |
Issuances | [1] | 2 | 0 | |
Settlements | [1] | 0 | 0 | |
Transfer into Level 3 | [1] | 0 | 0 | |
Transfer out of Level 3 | [1] | (3) | 0 | |
Ending balance | [1] | 0 | 14 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | [1] | 0 | 21 | |
Policyholder account balances | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 658 | 704 | 574 | |
Total realized and unrealized (gains) losses included in net (income) loss | (6) | (67) | 27 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 40 | 51 | 109 | |
Settlements | (9) | (30) | (6) | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | |
Ending balance | 683 | 658 | 704 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (4) | (61) | 31 | |
Policyholder account balances | GMWB embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [2] | 303 | 352 | 291 |
Total realized and unrealized (gains) losses included in net (income) loss | [2] | (82) | (79) | 26 |
Total realized and unrealized (gains) losses included in OCI | [2] | 0 | 0 | 0 |
Purchases | [2] | 0 | 0 | 0 |
Sales | [2] | 0 | 0 | 0 |
Issuances | [2] | 29 | 30 | 35 |
Settlements | [2] | 0 | 0 | 0 |
Transfer into Level 3 | [2] | 0 | 0 | 0 |
Transfer out of Level 3 | [2] | 0 | 0 | 0 |
Ending balance | [2] | 250 | 303 | 352 |
Total (gains) losses included in net (income) loss attributable to liabilities still held | [2] | (80) | (73) | 30 |
Policyholder account balances | Fixed index annuity embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 344 | 342 | 276 | |
Total realized and unrealized (gains) losses included in net (income) loss | 84 | 22 | 7 | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 10 | 65 | |
Settlements | (9) | (30) | (6) | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | |
Ending balance | 419 | 344 | 342 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | 84 | 22 | 7 | |
Policyholder account balances | Indexed universal life embedded derivatives | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | 11 | 10 | 7 | |
Total realized and unrealized (gains) losses included in net (income) loss | (8) | (10) | (6) | |
Total realized and unrealized (gains) losses included in OCI | 0 | 0 | 0 | |
Purchases | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Issuances | 11 | 11 | 9 | |
Settlements | 0 | 0 | 0 | |
Transfer into Level 3 | 0 | 0 | 0 | |
Transfer out of Level 3 | 0 | 0 | 0 | |
Ending balance | 14 | 11 | 10 | |
Total (gains) losses included in net (income) loss attributable to liabilities still held | (8) | (10) | (6) | |
Borrowings related to securitization entities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | [1] | 12 | 81 | 85 |
Total realized and unrealized (gains) losses included in net (income) loss | [1] | 0 | (63) | (4) |
Total realized and unrealized (gains) losses included in OCI | [1] | 0 | 0 | 0 |
Purchases | [1] | 0 | 0 | 0 |
Sales | [1] | 0 | 0 | 0 |
Issuances | [1] | 0 | 0 | 0 |
Settlements | [1] | (12) | (6) | 0 |
Transfer into Level 3 | [1] | 0 | 0 | 0 |
Transfer out of Level 3 | [1] | 0 | 0 | 0 |
Ending balance | [1] | 0 | 12 | 81 |
Total (gains) losses included in net (income) loss attributable to liabilities still held | [1] | $ 0 | $ 1 | $ (4) |
[1] | See note 17 for additional information related to consolidated securitization entities. | |||
[2] | Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance. |
Gains and Losses Included in144
Gains and Losses Included in Net (Income) Loss from Liabilities Measured at Fair Value (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Total realized and unrealized (gains) losses included in net (income) loss, liabilities | $ (6) | $ (143) | $ 16 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | (4) | (60) | 48 |
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 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | 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 | (6) | (79) | 16 |
Total (gains) losses included in net (income) loss attributable to liabilities still held, liabilities | (4) | (60) | 48 |
Other 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 | $ (64) | $ 0 |
Variable Interest and Securi145
Variable Interest and Securitization Entities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Investments [Line Items] | |||||
Total assets | $ 105,297 | $ 104,658 | |||
Gains (losses) related to early extinguishment of debt | [1] | 0 | 48 | $ (2) | |
Total securitized assets | |||||
Schedule of Investments [Line Items] | |||||
Total assets | $ 107 | 129 | |||
Borrowings related to securitization entities | |||||
Schedule of Investments [Line Items] | |||||
Settlement of outstanding restricted debt | $ 70 | ||||
Gains (losses) related to early extinguishment of debt | 64 | $ 64 | |||
Residual Interest Related to Securitization Entities | |||||
Schedule of Investments [Line Items] | |||||
Realized investment losses related to the write-off of residual interest | $ (64) | ||||
[1] | For the year ended December 31, 2015, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million. |
Assets and Liabilities Recorded
Assets and Liabilities Recorded for Consolidated Securitization Entities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | ||||
Restricted commercial mortgage loans | $ 107 | $ 129 | ||
Total restricted other invested assets | 0 | 312 | ||
Total investments | 73,392 | 71,569 | ||
Cash and cash equivalents | 2,875 | 2,784 | $ 5,965 | |
Accrued investment income | 644 | 659 | ||
Other assets | 453 | 673 | ||
Derivative liabilities | 730 | [1] | 1,041 | |
Borrowings related to securitization entities | 40 | 74 | ||
Securitization entities | ||||
Variable Interest Entity [Line Items] | ||||
Restricted commercial mortgage loans | 107 | 129 | ||
Trading securities | 0 | 312 | ||
Total restricted other invested assets | 0 | 312 | ||
Total investments | 107 | 441 | ||
Cash and cash equivalents | 1 | 1 | ||
Accrued investment income | 0 | 1 | ||
Other assets | 0 | 1 | ||
Total assets | 108 | 444 | ||
Derivative liabilities | 0 | 1 | ||
Total other liabilities | 0 | 1 | ||
Borrowings related to securitization entities | 40 | 74 | ||
Total liabilities | $ 40 | $ 75 | ||
[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 $473 million and $206 million, respectively, in 2017. |
Activity Presented in Consolida
Activity Presented in Consolidated Statement of Income Related to Consolidated Securitization Entities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||
Net investment income | $ 3,200 | $ 3,159 | $ 3,138 | |||||||||||||||||
Derivatives | [1] | 97 | 20 | (76) | ||||||||||||||||
Total net investment gains (losses) | [2] | 7 | (50) | 5 | ||||||||||||||||
Total revenues | $ 1,686 | [3] | $ 2,215 | [3] | $ 2,223 | [3] | $ 2,171 | [3] | $ 2,198 | [4] | $ 2,150 | [4] | $ 2,236 | [4] | $ 1,785 | [4] | 8,295 | 8,369 | 8,548 | |
Interest expense | 284 | 337 | 419 | |||||||||||||||||
Income before income taxes | 729 | 320 | (15) | |||||||||||||||||
Provision (benefit) for income taxes | 456 | (207) | 358 | (9) | ||||||||||||||||
Net income | $ 265 | [5] | $ 175 | [5] | $ 271 | [5] | $ 216 | [5] | $ (63) | [6] | $ (332) | [6] | $ 220 | [6] | $ 108 | [6] | 927 | (67) | (413) | |
Securitization entities | ||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||
Net investment income | 10 | 13 | 19 | |||||||||||||||||
Derivatives | 7 | 8 | 3 | |||||||||||||||||
Trading securities | 0 | (57) | (2) | |||||||||||||||||
Borrowings related to securitization entities recorded at fair value | 0 | (1) | 4 | |||||||||||||||||
Total net investment gains (losses) | 7 | (50) | 5 | |||||||||||||||||
Other income | 0 | 64 | 0 | |||||||||||||||||
Total revenues | 17 | 27 | 24 | |||||||||||||||||
Interest expense | 6 | 7 | 9 | |||||||||||||||||
Total expenses | 6 | 7 | 9 | |||||||||||||||||
Income before income taxes | 11 | 20 | 15 | |||||||||||||||||
Provision (benefit) for income taxes | (6) | 7 | 5 | |||||||||||||||||
Net income | 17 | 13 | 10 | |||||||||||||||||
Securitization entities | Restricted commercial mortgage loans | ||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||
Net investment income | 9 | 10 | 14 | |||||||||||||||||
Securitization entities | Restricted other invested assets | ||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||
Net investment income | $ 1 | $ 3 | $ 5 | |||||||||||||||||
[1] | See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses). | |||||||||||||||||||
[2] | See note 17 for additional information related to consolidated securitization entities. | |||||||||||||||||||
[3] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. | |||||||||||||||||||
[4] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. | |||||||||||||||||||
[5] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | |||||||||||||||||||
[6] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. |
Borrowings Related to Securitiz
Borrowings Related to Securitization Entities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | |||
Principal amount | $ 40 | $ 74 | |
Borrowings related to securitization entities | 40 | 74 | |
GFCM LLC, due 2035, 5.7426% | |||
Variable Interest Entity [Line Items] | |||
Principal amount | 40 | 62 | |
Borrowings related to securitization entities | 40 | 62 | |
Marvel Finance 2007-4 LLC, due 2017 | |||
Variable Interest Entity [Line Items] | |||
Principal amount | [1],[2] | 0 | 12 |
Borrowings related to securitization entities | [1],[2] | $ 0 | $ 12 |
[1] | Accrual of interest based on three-month LIBOR that resets every three months plus a fixed margin. | ||
[2] | Carrying value represents fair value as a result of electing fair value option for these liabilities. |
Insurance Subsidiary Financi149
Insurance Subsidiary Financial Information and Regulatory Matters - Additional Information (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)State | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2017USD ($) | |
Statutory Accounting Practices [Line Items] | ||||
Amount of dividend our subsidiaries could pay in 2018 without obtaining regulatory approval | $ 500 | |||
Dividends received from insurance subsidiaries | $ 0 | $ 0 | $ 0 | |
Statutory contingency reserve, annual additions, percentage of earned premiums, minimum | 50.00% | |||
Minimum loss ratio requirement to hold statutory contingency reserve | 35.00% | |||
Period of time when statutory contingency reserve has to be held, in years | 10 years | |||
Statutory contingency reserve | $ 1,206 | $ 845 | ||
U.S. Mortgage Insurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum risk-to-capital ratio | 25 | |||
Number of states with risk-to-capital requirements | State | 15 | |||
U.S. Mortgage Insurance | ||||
Statutory Accounting Practices [Line Items] | ||||
Percentage of available assets to PMIERs required assets | 121.00% | 115.00% | ||
Assets in excess of PMIERs requirements | $ 550 | $ 350 | ||
Genworth Mortgage Insurance Corporation (GMICO)/PMIERs Capital Credit/2014 To 2017 Book Years [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Capital credit from reinsurance transaction | 525 | |||
Guarantees provided to third parties | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum potential amount of future obligation | 6 | 9 | ||
Mexico Guarantee | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum potential amount of future obligation | 175 | |||
Domestic insurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends received from insurance subsidiaries | 36 | 80 | 41 | |
Domestic insurance subsidiaries | Extraordinary Dividend | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends received from insurance subsidiaries | 0 | 0 | 0 | |
International insurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends received from insurance subsidiaries | 301 | 457 | 640 | |
Combined statutory capital and surplus | 5,034 | 4,457 | ||
Combined statutory net income (loss) | 548 | 536 | 511 | |
Surplus amount exceeding local solvency requirements | 988 | 576 | ||
Domestic subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory capital and surplus | 5,548 | 5,301 | ||
Combined statutory net income (loss) | 204 | (320) | (572) | |
Domestic subsidiaries | Captive life reinsurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory capital and surplus | 245 | 274 | ||
Combined statutory net income (loss) | (36) | (403) | $ (276) | |
Domestic subsidiaries | Life insurance | ||||
Statutory Accounting Practices [Line Items] | ||||
Impact of permitted practices on combined statutory capital and surplus | $ 0 | $ 7 | ||
Consolidated RBC ratio | 286.00% | 329.00% | ||
Insurance Subsidiaries | Universal and term universal life insurance contracts | Virginia | ||||
Statutory Accounting Practices [Line Items] | ||||
Additional statutory reserves | $ 284 | $ 76 | ||
Insurance Subsidiaries | Universal and term universal life insurance contracts | Virginia | 2018 [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Additional statutory reserves | 95 | |||
Insurance Subsidiary | Long-term Care Insurance | NEW YORK | ||||
Statutory Accounting Practices [Line Items] | ||||
Additional statutory reserves | 188 | $ 58 | ||
Insurance Subsidiary | Long-term Care Insurance | NEW YORK | To be recorded over the next two years | ||||
Statutory Accounting Practices [Line Items] | ||||
Additional statutory reserves | 302 | $ 110 | ||
Genworth Financial's Subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Restricted net assets | 13,100 | |||
Genworth Holdings' Subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Restricted net assets | $ 12,400 | |||
Genworth Mortgage Insurance Corporation (GMICO) | U.S. Mortgage Insurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Risk-to-capital ratio | 12.9 | 14.5 | ||
Rivermont Insurance Company I | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum potential amount of future obligation | $ 14 | |||
Limited Guarantee Provided to a subsidiary accounted for as a derivative | 4 | |||
Rivermont Insurance Company I | Guarantees provided to third parties | Maximum | ||||
Statutory Accounting Practices [Line Items] | ||||
Limited Guarantee Provided to a subsidiary accounted for as a derivative | $ 1 | |||
Genworth Holdings | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum potential amount of future obligation | $ 1,700 |
Schedule of Statutory Accountin
Schedule of Statutory Accounting Practices (Detail) - Domestic subsidiaries - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory net income (loss) | $ 204 | $ (320) | $ (572) | |
Combined statutory capital and surplus | 5,548 | 5,301 | ||
Life insurance subsidiaries, excluding captive life reinsurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory net income (loss) | [1] | (272) | (365) | (583) |
Combined statutory capital and surplus | 2,776 | 3,100 | ||
Mortgage insurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory net income (loss) | 512 | 448 | 287 | |
Combined statutory capital and surplus | 2,772 | 2,201 | ||
Combined statutory net income (loss), excluding captive reinsurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory net income (loss) | 240 | 83 | (296) | |
Captive life reinsurance subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Combined statutory net income (loss) | (36) | (403) | $ (276) | |
Combined statutory capital and surplus | $ 245 | $ 274 | ||
[1] | The combined statutory net loss for the year ended December 31, 2015 was re-presented as if the merger of BLAIC with and into GLIC discussed above occurred on January 1, 2015 in accordance with the statutory merger method. |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | Jun. 24, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
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 | $ 2 | $ 22 | $ 8 | |||||
Gain (loss) on sale of business, before taxes | 0 | 3 | (140) | |||||
Gains (losses) from life block transactions, pre-tax | 0 | (9) | (455) | |||||
Gains (losses) related to early extinguishment of debt | [1] | 0 | 48 | (2) | ||||
Fees associated with bond consent solicitation | $ 0 | 18 | 0 | |||||
Borrowings related to securitization entities | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gains (losses) related to early extinguishment of debt | $ 64 | 64 | ||||||
European Mortgage Insurance Business | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gain (loss) on sale of business, before taxes | (9) | (140) | ||||||
Term Life Insurance New Business Platform | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gain (loss) on sale of business, before taxes | $ 12 | 12 | ||||||
Genworth Holdings | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gains (losses) related to early extinguishment of debt | $ 4 | $ (1) | 4 | (1) | ||||
Pre-tax make-whole expense | 20 | |||||||
Principal amount of notes repurchased | 28 | $ 50 | 28 | 50 | ||||
Fees associated with bond consent solicitation | $ 18 | $ 18 | ||||||
Genworth Financial Mortgage Insurance Pty Limited | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Debt instrument, maturity year | 2,025 | |||||||
Genworth Financial Mortgage Insurance Pty Limited | Floating Rate Junior Notes, Due 2021 | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gains (losses) related to early extinguishment of debt | $ (1) | |||||||
Debt instrument, maturity year | 2,021 | |||||||
[1] | For the year ended December 31, 2015, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million. |
Summary of Segments and Corpora
Summary of Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | $ 4,004 | $ 4,160 | $ 4,579 | ||||||||||||||||
Net investment income | 3,200 | 3,159 | 3,138 | ||||||||||||||||
Net investment gains (losses) | 265 | 72 | (75) | ||||||||||||||||
Policy fees and other income | 826 | 978 | 906 | ||||||||||||||||
Total revenues | $ 1,686 | [1] | $ 2,215 | [1] | $ 2,223 | [1] | $ 2,171 | [1] | $ 2,198 | [2] | $ 2,150 | [2] | $ 2,236 | [2] | $ 1,785 | [2] | 8,295 | 8,369 | 8,548 |
Benefits and other changes in policy reserves | 5,179 | 5,245 | 5,149 | ||||||||||||||||
Interest credited | 646 | 696 | 720 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 1,022 | 1,273 | 1,309 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 435 | 498 | 966 | ||||||||||||||||
Interest expense | 284 | 337 | 419 | ||||||||||||||||
Total benefits and expenses | 1,976 | [3] | 1,929 | [3] | 1,822 | [3] | 1,839 | [3] | 2,254 | [4] | 2,275 | [4] | 1,885 | [4] | 1,635 | [4] | 7,566 | 8,049 | 8,563 |
Income (loss) from continuing operations before income taxes | 729 | 320 | (15) | ||||||||||||||||
Provision (benefit) for income taxes | 456 | (207) | 358 | (9) | |||||||||||||||
Income (loss) from continuing operations | 265 | [5] | 184 | [5] | 271 | [5] | 216 | [5] | (59) | [6] | (347) | [6] | 241 | [6] | 127 | [6] | 936 | (38) | (6) |
Loss from discontinued operations, net of taxes | 0 | (9) | 0 | 0 | (4) | 15 | (21) | (19) | (9) | (29) | (407) | ||||||||
Net income (loss) | 265 | [5] | 175 | [5] | 271 | [5] | 216 | [5] | (63) | [6] | (332) | [6] | 220 | [6] | 108 | [6] | 927 | (67) | (413) |
Less: net income (loss) attributable to noncontrolling interests | 110 | 210 | 202 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 353 | [5] | $ 107 | [5] | $ 202 | [5] | $ 155 | [5] | (122) | $ (380) | $ 172 | $ 53 | 817 | (277) | (615) | ||||
Total assets | 105,297 | 104,658 | 105,297 | 104,658 | |||||||||||||||
U.S. Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 3,273 | 2,674 | 3,273 | 2,674 | |||||||||||||||
U.S. Mortgage Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 695 | 660 | 602 | ||||||||||||||||
Net investment income | 73 | 63 | 58 | ||||||||||||||||
Net investment gains (losses) | 0 | (1) | 1 | ||||||||||||||||
Policy fees and other income | 4 | 4 | 4 | ||||||||||||||||
Total revenues | 772 | 726 | 665 | ||||||||||||||||
Benefits and other changes in policy reserves | 107 | 160 | 222 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 165 | 167 | 155 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 14 | 12 | 10 | ||||||||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||||||||
Total benefits and expenses | 286 | 339 | 387 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 486 | 387 | 278 | ||||||||||||||||
Provision (benefit) for income taxes | 175 | 138 | 99 | ||||||||||||||||
Income (loss) from continuing operations | 311 | 249 | 179 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 311 | 249 | 179 | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 311 | 249 | 179 | ||||||||||||||||
Canada Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 5,534 | 4,884 | 5,534 | 4,884 | |||||||||||||||
Canada Mortgage Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 519 | 481 | 466 | ||||||||||||||||
Net investment income | 132 | 126 | 130 | ||||||||||||||||
Net investment gains (losses) | 128 | 37 | (32) | ||||||||||||||||
Policy fees and other income | 1 | 1 | 0 | ||||||||||||||||
Total revenues | 780 | 645 | 564 | ||||||||||||||||
Benefits and other changes in policy reserves | 54 | 104 | 96 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 80 | 77 | 66 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 43 | 39 | 36 | ||||||||||||||||
Interest expense | 18 | 18 | 18 | ||||||||||||||||
Total benefits and expenses | 195 | 238 | 216 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 585 | 407 | 348 | ||||||||||||||||
Provision (benefit) for income taxes | 191 | 113 | 90 | ||||||||||||||||
Income (loss) from continuing operations | 394 | 294 | 258 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 394 | 294 | 258 | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 190 | 135 | 118 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 204 | 159 | 140 | ||||||||||||||||
Australia Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 2,973 | 2,619 | 2,973 | 2,619 | |||||||||||||||
Australia Mortgage Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | (140) | 337 | 357 | ||||||||||||||||
Net investment income | 75 | 94 | 114 | ||||||||||||||||
Net investment gains (losses) | 25 | 9 | 6 | ||||||||||||||||
Policy fees and other income | 0 | 0 | (3) | ||||||||||||||||
Total revenues | (40) | 440 | 474 | ||||||||||||||||
Benefits and other changes in policy reserves | 109 | 113 | 81 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 67 | 96 | 98 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 24 | 14 | 18 | ||||||||||||||||
Interest expense | 9 | 10 | 10 | ||||||||||||||||
Total benefits and expenses | 209 | 233 | 207 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (249) | 207 | 267 | ||||||||||||||||
Provision (benefit) for income taxes | (90) | 67 | 80 | ||||||||||||||||
Income (loss) from continuing operations | (159) | 140 | 187 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | (159) | 140 | 187 | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | (80) | 75 | 84 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (79) | 65 | 103 | ||||||||||||||||
U.S. Life Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 81,295 | 81,933 | 81,295 | 81,933 | |||||||||||||||
U.S. Life Insurance | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 2,922 | 2,670 | 3,128 | ||||||||||||||||
Net investment income | 2,755 | 2,726 | 2,701 | ||||||||||||||||
Net investment gains (losses) | 134 | 128 | (10) | ||||||||||||||||
Policy fees and other income | 660 | 726 | 726 | ||||||||||||||||
Total revenues | 6,471 | 6,250 | 6,545 | ||||||||||||||||
Benefits and other changes in policy reserves | 4,880 | 4,822 | 4,692 | ||||||||||||||||
Interest credited | 506 | 565 | 596 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 572 | 648 | 684 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 328 | 403 | 872 | ||||||||||||||||
Interest expense | 13 | 38 | 92 | ||||||||||||||||
Total benefits and expenses | 6,299 | 6,476 | 6,936 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 172 | (226) | (391) | ||||||||||||||||
Provision (benefit) for income taxes | 60 | (80) | (138) | ||||||||||||||||
Income (loss) from continuing operations | 112 | (146) | (253) | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 112 | (146) | (253) | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 112 | (146) | (253) | ||||||||||||||||
Runoff | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total assets | 10,907 | 11,352 | 10,907 | 11,352 | |||||||||||||||
Runoff | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 0 | 0 | 1 | ||||||||||||||||
Net investment income | 160 | 147 | 138 | ||||||||||||||||
Net investment gains (losses) | 16 | (14) | (69) | ||||||||||||||||
Policy fees and other income | 163 | 169 | 189 | ||||||||||||||||
Total revenues | 339 | 302 | 259 | ||||||||||||||||
Benefits and other changes in policy reserves | 26 | 42 | 44 | ||||||||||||||||
Interest credited | 140 | 131 | 124 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 61 | 68 | 76 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 24 | 29 | 29 | ||||||||||||||||
Interest expense | 2 | 1 | 1 | ||||||||||||||||
Total benefits and expenses | 253 | 271 | 274 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 86 | 31 | (15) | ||||||||||||||||
Provision (benefit) for income taxes | 25 | 6 | (10) | ||||||||||||||||
Income (loss) from continuing operations | 61 | 25 | (5) | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | 61 | 25 | (5) | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 61 | 25 | (5) | ||||||||||||||||
Corporate and Other | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Provision (benefit) for income taxes | 11 | ||||||||||||||||||
Total assets | $ 1,315 | $ 1,196 | 1,315 | 1,196 | |||||||||||||||
Corporate and Other | Segment, Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Premiums | 8 | 12 | 25 | ||||||||||||||||
Net investment income | 5 | 3 | (3) | ||||||||||||||||
Net investment gains (losses) | (38) | (87) | 29 | ||||||||||||||||
Policy fees and other income | (2) | 78 | (10) | ||||||||||||||||
Total revenues | (27) | 6 | 41 | ||||||||||||||||
Benefits and other changes in policy reserves | 3 | 4 | 14 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 77 | 217 | 230 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 2 | 1 | 1 | ||||||||||||||||
Interest expense | 242 | 270 | 298 | ||||||||||||||||
Total benefits and expenses | 324 | 492 | 543 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (351) | (486) | (502) | ||||||||||||||||
Provision (benefit) for income taxes | (568) | 114 | (130) | ||||||||||||||||
Income (loss) from continuing operations | 217 | (600) | (372) | ||||||||||||||||
Loss from discontinued operations, net of taxes | (9) | (29) | (407) | ||||||||||||||||
Net income (loss) | 208 | (629) | (779) | ||||||||||||||||
Less: net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 208 | $ (629) | $ (779) | ||||||||||||||||
[1] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. | ||||||||||||||||||
[3] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2017, which resulted in higher total benefits and expenses of $117 million in our universal and term universal life insurance products driven mostly by emerging mortality experience and from prolonged low interest rates. In addition, we recorded lower total benefits and expenses of $18 million in our Australian mortgage insurance business associated with changes to their premium earnings pattern, as described above. | ||||||||||||||||||
[4] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in higher total benefits and expenses of $307 million in our universal and term universal life insurance products. | ||||||||||||||||||
[5] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[6] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. |
Summary of Revenues for Segment
Summary of Revenues for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [2] | Sep. 30, 2016 | [2] | Jun. 30, 2016 | [2] | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | $ 1,686 | $ 2,215 | $ 2,223 | $ 2,171 | $ 2,198 | $ 2,150 | $ 2,236 | $ 1,785 | $ 8,295 | $ 8,369 | $ 8,548 | ||||||||
Segment, Continuing Operations | U.S. Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 772 | 726 | 665 | ||||||||||||||||
Segment, Continuing Operations | Canada Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 780 | 645 | 564 | ||||||||||||||||
Segment, Continuing Operations | Australia Mortgage Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | (40) | 440 | 474 | ||||||||||||||||
Segment, Continuing Operations | Long-term Care Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 4,062 | 4,037 | 3,752 | ||||||||||||||||
Segment, Continuing Operations | Life Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 1,591 | 1,381 | 1,902 | ||||||||||||||||
Segment, Continuing Operations | Fixed Annuities | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 818 | 832 | 891 | ||||||||||||||||
Segment, Continuing Operations | U.S. Life Insurance | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 6,471 | 6,250 | 6,545 | ||||||||||||||||
Segment, Continuing Operations | Runoff | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | 339 | 302 | 259 | ||||||||||||||||
Segment, Continuing Operations | Corporate and Other | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Revenues | $ (27) | $ 6 | $ 41 | ||||||||||||||||
[1] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. |
Summary of Net Operating Income
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 353 | [1] | $ 107 | [1] | $ 202 | [1] | $ 155 | [1] | $ (122) | $ (380) | $ 172 | $ 53 | $ 817 | $ (277) | $ (615) | |||||
Add: net income attributable to noncontrolling interests | (88) | [2] | 68 | [2] | 69 | [2] | 61 | [2] | 59 | 48 | 48 | 55 | 110 | 210 | 202 | |||||
Net income (loss) | 265 | [1] | 175 | [1] | 271 | [1] | 216 | [1] | (63) | [3] | (332) | [3] | 220 | [3] | 108 | [3] | 927 | (67) | (413) | |
Loss from discontinued operations, net of taxes | 0 | (9) | 0 | 0 | (4) | 15 | (21) | (19) | (9) | (29) | (407) | |||||||||
Income (loss) from continuing operations | $ 265 | [1] | $ 184 | [1] | $ 271 | [1] | $ 216 | [1] | $ (59) | [3] | $ (347) | [3] | $ 241 | [3] | $ 127 | [3] | 936 | (38) | (6) | |
Less: income from continuing operations attributable to noncontrolling interests | 110 | 210 | 202 | |||||||||||||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders | 826 | (248) | (208) | |||||||||||||||||
Net investment (gains) losses, net | [4] | (202) | (66) | 30 | ||||||||||||||||
(Gains) losses from sale of businesses | 0 | (3) | 140 | |||||||||||||||||
(Gains) losses on early extinguishment of debt, net | [5] | 0 | (48) | 2 | ||||||||||||||||
Losses from life block transactions | 0 | 9 | 455 | |||||||||||||||||
Expenses related to restructuring | 2 | 22 | 8 | |||||||||||||||||
Fees associated with bond consent solicitation | 0 | 18 | 0 | |||||||||||||||||
Taxes on adjustments | 70 | 0 | (172) | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 696 | (316) | 255 | |||||||||||||||||
Segment, Continuing Operations | U.S. Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 311 | 249 | 179 | |||||||||||||||||
Net income (loss) | 311 | 249 | 179 | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | 311 | 249 | 179 | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 311 | 250 | 179 | |||||||||||||||||
Segment, Continuing Operations | Canada Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 204 | 159 | 140 | |||||||||||||||||
Net income (loss) | 394 | 294 | 258 | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | 394 | 294 | 258 | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 190 | 135 | 118 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 157 | 146 | 152 | |||||||||||||||||
Segment, Continuing Operations | Australia Mortgage Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (79) | 65 | 103 | |||||||||||||||||
Net income (loss) | (159) | 140 | 187 | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | (159) | 140 | 187 | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | (80) | 75 | 84 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (88) | 62 | 102 | |||||||||||||||||
Segment, Continuing Operations | Long-term Care Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 59 | (200) | 29 | |||||||||||||||||
Segment, Continuing Operations | Life Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | (79) | (83) | (80) | |||||||||||||||||
Segment, Continuing Operations | Fixed Annuities | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 42 | 68 | 94 | |||||||||||||||||
Segment, Continuing Operations | U.S. Life Insurance | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 112 | (146) | (253) | |||||||||||||||||
Net income (loss) | 112 | (146) | (253) | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | 112 | (146) | (253) | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 22 | (215) | 43 | |||||||||||||||||
Segment, Continuing Operations | Runoff | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 61 | 25 | (5) | |||||||||||||||||
Net income (loss) | 61 | 25 | (5) | |||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | 0 | 0 | |||||||||||||||||
Income (loss) from continuing operations | 61 | 25 | (5) | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | 51 | 28 | 27 | |||||||||||||||||
Segment, Continuing Operations | Corporate and Other | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 208 | (629) | (779) | |||||||||||||||||
Net income (loss) | 208 | (629) | (779) | |||||||||||||||||
Loss from discontinued operations, net of taxes | (9) | (29) | (407) | |||||||||||||||||
Income (loss) from continuing operations | 217 | (600) | (372) | |||||||||||||||||
Less: income from continuing operations attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||
Adjusted operating income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 243 | $ (587) | $ (248) | |||||||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | |||||||||||||||||||
[2] | We completed a review of the premium earnings pattern in our Australian mortgage insurance business, as described above, which resulted in an unfavorable adjustment to net income (loss) attributable to noncontrolling interests of $151 million. | |||||||||||||||||||
[3] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. | |||||||||||||||||||
[4] | For the years ended December 31, 2017, 2016 and 2015, net investment (gains) losses were adjusted for DAC and other intangible amortization and certain benefit reserves of $(3) million, $(14) million and $(35) million, respectively, and adjusted for net investment (gains) losses attributable to noncontrolling interests of $66 million, $20 million and $(10) million, respectively. | |||||||||||||||||||
[5] | For the year ended December 31, 2015, (gains) losses on the early extinguishment of debt were adjusted for the portion attributable to noncontrolling interests of $1 million. |
Summary of Net Operating Inc155
Summary of Net Operating Income (Loss) for Segments and Corporate and Other Activities (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Adjustment to (gains) losses on extinguishment of debt for portion attributable to noncontrolling interests | $ 1 | ||
Net Investment (Gains) Losses | |||
Segment Reporting Information [Line Items] | |||
Adjustment for DAC and other intangibles and certain benefit reserves | $ (3) | $ (14) | (35) |
Adjustment for portion attributable to noncontrolling interests | $ 66 | $ 20 | $ (10) |
Schedule of Revenue, Net Income
Schedule of Revenue, Net Income and Assets by Geographic Location (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | $ 1,686 | [1] | $ 2,215 | [1] | $ 2,223 | [1] | $ 2,171 | [1] | $ 2,198 | [2] | $ 2,150 | [2] | $ 2,236 | [2] | $ 1,785 | [2] | $ 8,295 | $ 8,369 | $ 8,548 |
Income (loss) from continuing operations | 265 | [3] | 184 | [3] | 271 | [3] | 216 | [3] | (59) | [4] | (347) | [4] | 241 | [4] | 127 | [4] | 936 | (38) | (6) |
Net income (loss) | 265 | [3] | $ 175 | [3] | $ 271 | [3] | $ 216 | [3] | (63) | [4] | $ (332) | [4] | $ 220 | [4] | $ 108 | [4] | 927 | (67) | (413) |
Total assets | 105,297 | 104,658 | 105,297 | 104,658 | |||||||||||||||
Geographic Distribution, Domestic | United States | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 7,546 | 7,270 | 7,483 | ||||||||||||||||
Income (loss) from continuing operations | 704 | (447) | (430) | ||||||||||||||||
Net income (loss) | 695 | (494) | (430) | ||||||||||||||||
Total assets | 96,740 | 97,107 | 96,740 | 97,107 | |||||||||||||||
Geographic Distribution, Foreign | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 749 | 1,099 | 1,065 | ||||||||||||||||
Income (loss) from continuing operations | 232 | 409 | 424 | ||||||||||||||||
Net income (loss) | 232 | 427 | 17 | ||||||||||||||||
Total assets | 8,557 | 7,551 | 8,557 | 7,551 | |||||||||||||||
Geographic Distribution, Foreign | Canada | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 780 | 645 | 564 | ||||||||||||||||
Income (loss) from continuing operations | 394 | 294 | 258 | ||||||||||||||||
Net income (loss) | 394 | 294 | 258 | ||||||||||||||||
Total assets | 5,534 | 4,884 | 5,534 | 4,884 | |||||||||||||||
Geographic Distribution, Foreign | Australia | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | (40) | 440 | 474 | ||||||||||||||||
Income (loss) from continuing operations | (159) | 140 | 187 | ||||||||||||||||
Net income (loss) | (159) | 140 | 187 | ||||||||||||||||
Total assets | 2,973 | 2,619 | 2,973 | 2,619 | |||||||||||||||
Geographic Distribution, Foreign | Other Countries | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total revenues | 9 | 14 | 27 | ||||||||||||||||
Income (loss) from continuing operations | (3) | (25) | (21) | ||||||||||||||||
Net income (loss) | (3) | (7) | $ (428) | ||||||||||||||||
Total assets | $ 50 | $ 48 | $ 50 | $ 48 | |||||||||||||||
[1] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. | ||||||||||||||||||
[3] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[4] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. |
Quarterly Results of Operati157
Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
Quarterly Results Of Operations [Abstract] | ||||||||||||||||||||||
Total revenues | $ 1,686 | [1] | $ 2,215 | [1] | $ 2,223 | [1] | $ 2,171 | [1] | $ 2,198 | [2] | $ 2,150 | [2] | $ 2,236 | [2] | $ 1,785 | [2] | $ 8,295 | $ 8,369 | $ 8,548 | |||
Total benefits and expenses | 1,976 | [3] | 1,929 | [3] | 1,822 | [3] | 1,839 | [3] | 2,254 | [4] | 2,275 | [4] | 1,885 | [4] | 1,635 | [4] | 7,566 | 8,049 | 8,563 | |||
Income (loss) from continuing operations | 265 | [5] | 184 | [5] | 271 | [5] | 216 | [5] | (59) | [6] | (347) | [6] | 241 | [6] | 127 | [6] | 936 | (38) | (6) | |||
Income (loss) from discontinued operations, net of taxes | 0 | (9) | 0 | 0 | (4) | 15 | (21) | (19) | (9) | (29) | (407) | |||||||||||
Net income | 265 | [5] | 175 | [5] | 271 | [5] | 216 | [5] | (63) | [6] | (332) | [6] | 220 | [6] | 108 | [6] | 927 | (67) | (413) | |||
Net income (loss) attributable to noncontrolling interests | (88) | [7] | 68 | [7] | 69 | [7] | 61 | [7] | 59 | 48 | 48 | 55 | 110 | 210 | 202 | |||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 353 | [5] | $ 107 | [5] | $ 202 | [5] | $ 155 | [5] | $ (122) | $ (380) | $ 172 | $ 53 | $ 817 | $ (277) | $ (615) | |||||||
Income (loss) from continuing operations available to Genworth Financial, Inc.'s common stockholders per share: | ||||||||||||||||||||||
Basic | $ 0.71 | $ 0.23 | $ 0.40 | $ 0.31 | $ (0.24) | $ (0.79) | $ 0.39 | $ 0.14 | $ 1.66 | $ (0.50) | $ (0.42) | |||||||||||
Diluted | 0.70 | 0.23 | 0.40 | 0.31 | (0.24) | (0.79) | 0.39 | 0.14 | 1.65 | (0.50) | (0.42) | |||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders per share: | ||||||||||||||||||||||
Basic | 0.71 | 0.21 | 0.40 | 0.31 | (0.25) | (0.76) | 0.35 | 0.11 | 1.64 | (0.56) | (1.24) | |||||||||||
Diluted | $ 0.70 | $ 0.21 | $ 0.40 | $ 0.31 | $ (0.25) | $ (0.76) | $ 0.34 | $ 0.11 | $ 1.63 | $ (0.56) | $ (1.24) | |||||||||||
Weighted-average common shares outstanding: | ||||||||||||||||||||||
Basic | 499.2 | 499.1 | 499 | 498.6 | 498.4 | 498.3 | 498.5 | 498 | 499 | 498.3 | 497.4 | |||||||||||
Diluted | 502.1 | 501.6 | 501.2 | 501 | 498.4 | [8] | 498.3 | [8] | 500.4 | [8] | 499.4 | [8] | 501.4 | [9] | 498.3 | [9] | 497.4 | [9] | ||||
[1] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. | |||||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. | |||||||||||||||||||||
[3] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2017, which resulted in higher total benefits and expenses of $117 million in our universal and term universal life insurance products driven mostly by emerging mortality experience and from prolonged low interest rates. In addition, we recorded lower total benefits and expenses of $18 million in our Australian mortgage insurance business associated with changes to their premium earnings pattern, as described above. | |||||||||||||||||||||
[4] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in higher total benefits and expenses of $307 million in our universal and term universal life insurance products. | |||||||||||||||||||||
[5] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | |||||||||||||||||||||
[6] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. | |||||||||||||||||||||
[7] | We completed a review of the premium earnings pattern in our Australian mortgage insurance business, as described above, which resulted in an unfavorable adjustment to net income (loss) attributable to noncontrolling interests of $151 million. | |||||||||||||||||||||
[8] | 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 months ended September 30, 2016 and December 31, 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, RSUs and SARs of 2.2 million and 2.5 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 ended September 30, 2016 and December 31, 2016, dilutive potential weighted-average common shares outstanding would have been 500.5 million and 500.9 million, respectively. | |||||||||||||||||||||
[9] | 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 years ended December 31, 2016 and 2015, we were required to use basic weighted-average common shares outstanding as the inclusion of shares for stock options, restricted stock units ("RSUs") and stock appreciation rights ("SARs") of 2.0 million and 1.6 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 years ended December 31, 2016 and 2015, dilutive potential weighted-average common shares outstanding would have been 500.3 million and 499.0 million, respectively. |
Quarterly Results of Operati158
Quarterly Results of Operations (Parenthetical) (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Premiums | $ 4,004 | $ 4,160 | $ 4,579 | ||||||||||||||||
Total benefits and expenses | $ 1,976 | [1] | $ 1,929 | [1] | $ 1,822 | [1] | $ 1,839 | [1] | $ 2,254 | [2] | $ 2,275 | [2] | $ 1,885 | [2] | $ 1,635 | [2] | 7,566 | 8,049 | 8,563 |
Provision (benefit) for income taxes | 456 | (207) | 358 | (9) | |||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 353 | [3] | 107 | [3] | 202 | [3] | 155 | [3] | (122) | (380) | 172 | 53 | 817 | (277) | (615) | ||||
Valuation allowance | 258 | ||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | (88) | [4] | 68 | [4] | 69 | [4] | 61 | [4] | 59 | 48 | 48 | 55 | 110 | 210 | 202 | ||||
Total revenues | 1,686 | [5] | $ 2,215 | [5] | $ 2,223 | [5] | $ 2,171 | [5] | $ 2,198 | [6] | $ 2,150 | [6] | $ 2,236 | [6] | $ 1,785 | [6] | 8,295 | $ 8,369 | $ 8,548 |
Weighted-average diluted common shares outstanding, antidilutive securities (stock options, RSUs and SARs) | 2.5 | 2.2 | 2 | 1.6 | |||||||||||||||
Weighted-average number of diluted shares if not in a loss position | 500.9 | 500.5 | 500.3 | 499 | |||||||||||||||
Unlocking | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Total benefits and expenses | 117 | $ 307 | |||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | (74) | (196) | |||||||||||||||||
Total revenues | $ 6 | ||||||||||||||||||
Australian Mortgage Insurance [Member] | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Premiums | 468 | ||||||||||||||||||
Total benefits and expenses | 18 | ||||||||||||||||||
Unfavorable adjustment, net of taxes | 152 | $ 152 | |||||||||||||||||
Net income (loss) attributable to noncontrolling interests | (151) | ||||||||||||||||||
Corporate and Other | |||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||
Provision (benefit) for income taxes | $ 11 | ||||||||||||||||||
[1] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2017, which resulted in higher total benefits and expenses of $117 million in our universal and term universal life insurance products driven mostly by emerging mortality experience and from prolonged low interest rates. In addition, we recorded lower total benefits and expenses of $18 million in our Australian mortgage insurance business associated with changes to their premium earnings pattern, as described above. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in higher total benefits and expenses of $307 million in our universal and term universal life insurance products. | ||||||||||||||||||
[3] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[4] | We completed a review of the premium earnings pattern in our Australian mortgage insurance business, as described above, which resulted in an unfavorable adjustment to net income (loss) attributable to noncontrolling interests of $151 million. | ||||||||||||||||||
[5] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. | ||||||||||||||||||
[6] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - 12 months ended Dec. 31, 2017 £ in Millions, $ in Millions | USD ($)Company | GBP (£)Company |
Commitments and Contingencies Disclosure [Line Items] | ||
Indemnity limit | £ | £ 28 | |
Number of insurance company sold | Company | 2 | 2 |
Commitment to fund limited partnership investments | $ 317 | |
Commitment to fund U.S. commercial mortgage loan investments | 16 | |
Commitment to fund private placement investments | 152 | |
Notional amount | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Commitment to fund bank loan investments | 18 | |
Rivermont Insurance Company I | ||
Commitments and Contingencies Disclosure [Line Items] | ||
One time commitment fee | 2 | |
Maximum potential amount of future obligation before repayment | $ 14 | |
Margin rate | 1.20% | 1.20% |
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 | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances, beginning | $ 14,467 | $ 14,637 | $ 16,797 | |
OCI before reclassifications | 205 | 228 | (1,698) | |
Amounts reclassified from (to) OCI | (160) | (137) | (70) | |
Total other comprehensive income (loss) | 45 | 91 | (1,768) | |
Balances before nonnontrolling interests | 3,139 | 3,101 | 2,678 | |
Less: change in OCI attributable to noncontrolling interests | 112 | 7 | (332) | |
Balances, ending | 15,328 | 14,467 | 14,637 | |
Net unrealized investment (gains) losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances, beginning | [1] | 1,262 | 1,254 | 2,453 |
OCI before reclassifications | [1] | (84) | 54 | (1,218) |
Amounts reclassified from (to) OCI | [1] | (102) | (57) | 5 |
Total other comprehensive income (loss) | [1] | (186) | (3) | (1,213) |
Balances before nonnontrolling interests | [1] | 1,076 | 1,251 | 1,240 |
Less: change in OCI attributable to noncontrolling interests | [1] | (9) | (11) | (14) |
Balances, ending | [1] | 1,085 | 1,262 | 1,254 |
Derivatives qualifying as hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances, beginning | [2] | 2,085 | 2,045 | 2,070 |
OCI before reclassifications | [2] | 38 | 120 | 50 |
Amounts reclassified from (to) OCI | [2] | (58) | (80) | (75) |
Total other comprehensive income (loss) | [2] | (20) | 40 | (25) |
Balances before nonnontrolling interests | [2] | 2,065 | 2,085 | 2,045 |
Less: change in OCI attributable to noncontrolling interests | [2] | 0 | 0 | 0 |
Balances, ending | [2] | 2,065 | 2,085 | 2,045 |
Foreign currency translation and other adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances, beginning | (253) | (289) | (77) | |
OCI before reclassifications | 251 | 54 | (530) | |
Amounts reclassified from (to) OCI | 0 | 0 | 0 | |
Total other comprehensive income (loss) | 251 | 54 | (530) | |
Balances before nonnontrolling interests | (2) | (235) | (607) | |
Less: change in OCI attributable to noncontrolling interests | 121 | 18 | (318) | |
Balances, ending | (123) | (253) | (289) | |
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances, beginning | 3,094 | 3,010 | 4,446 | |
Total other comprehensive income (loss) | (67) | 84 | (1,460) | |
Balances, ending | $ 3,027 | $ 3,094 | $ 3,010 | |
[1] | Net of adjustments to DAC, PVFP, sales inducements and benefit reserves. See note 4 for additional information. | |||
[2] | See note 5 for additional information. |
Changes In Accumulated Other161
Changes In Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Line Items] | |||
Unrecognized postretirement benefit obligation, current period OCI | $ (13) | $ (11) | $ (5) |
Unrecognized postretirement benefit obligation, current period OCI, tax | 6 | 5 | 3 |
Foreign currency translation and other adjustments, current period OCI, tax | $ 0 | $ 19 | $ 63 |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income (Loss), Net of Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [2] | Sep. 30, 2016 | [2] | Jun. 30, 2016 | [2] | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||
Net investment income | $ (3,200) | $ (3,159) | $ (3,138) | |||||||||||||||||
Net investment (gains) losses | (265) | (72) | 75 | |||||||||||||||||
(Provision) benefit for income taxes | $ (456) | 207 | (358) | 9 | ||||||||||||||||
(Income) loss from continuing operations | $ (265) | [1] | $ (184) | $ (271) | $ (216) | $ 59 | $ 347 | $ (241) | $ (127) | (936) | 38 | 6 | ||||||||
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 | [3] | (157) | (88) | 7 | ||||||||||||||||
(Provision) benefit for income taxes | 55 | 31 | (2) | |||||||||||||||||
(Income) loss from continuing operations | (102) | (57) | 5 | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | ||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||
(Provision) benefit for income taxes | 81 | 43 | 43 | |||||||||||||||||
(Income) loss from continuing operations | (58) | (80) | (75) | |||||||||||||||||
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 | (131) | (112) | (85) | |||||||||||||||||
Net investment (gains) losses | (8) | (2) | 0 | |||||||||||||||||
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 | (2) | 0 | |||||||||||||||||
Net investment (gains) losses | 0 | (7) | 0 | |||||||||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | Derivatives qualifying as hedges | Forward bond purchase commitments | ||||||||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||||||||
Net investment income | 0 | 0 | (1) | |||||||||||||||||
Net investment (gains) losses | $ 0 | $ 0 | $ (32) | |||||||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | |||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. | |||||||||||||||||||
[3] | Amounts exclude adjustments to DAC, PVFP, sales inducements and benefit reserves. |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) AUD / shares in Units, CAD in Millions, AUD in Millions, $ in Millions | Jun. 01, 2016AUDAUD / shares | Jun. 01, 2016USD ($) | May 15, 2015USD ($) | May 11, 2015AUD / sharesshares | Sep. 30, 2017USD ($)shares | Sep. 30, 2017CADshares | Dec. 31, 2017AUDshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015AUDshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2015CADshares | Aug. 31, 2017AUD | May 31, 2017shares | May 31, 2014 | Jul. 31, 2009 |
Noncontrolling Interest [Line Items] | ||||||||||||||||
Dividend paid to noncontrolling interests | $ 107 | $ 138 | $ 157 | |||||||||||||
Proceeds from sale of subsidiary shares to noncontrolling interests | 0 | 0 | $ 226 | |||||||||||||
Genworth MI Canada Inc. | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Beneficial ownership percentage of ordinary shares | 57.10% | |||||||||||||||
Shares authorized to be repurchased | shares | 4,700,000 | 4,700,000 | 4,700,000 | 4,600,000 | ||||||||||||
Repurchase of subsidiary shares through issuer bid, number of shares | shares | 1,100,000 | 1,100,000 | 1,400,000 | 1,400,000 | 1,400,000 | |||||||||||
Common shares repurchased, value | CAD | CAD 40 | CAD 50 | ||||||||||||||
Amount received as a result of participation in Issuer Bid | $ 18 | $ 23 | ||||||||||||||
Amount received as a result of participation in issuer bid, paid as dividend | 12 | |||||||||||||||
Retained by GMICO | $ 6 | |||||||||||||||
Dividend paid to noncontrolling interests | $ 54 | 50 | $ 49 | |||||||||||||
Genworth MI Canada Inc. | IPO | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Beneficial ownership percentage of ordinary shares | 57.10% | 57.10% | 57.50% | |||||||||||||
Genworth Australia | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Beneficial ownership percentage of ordinary shares | 52.00% | 52.00% | 52.00% | 52.00% | 66.20% | |||||||||||
Repurchase of subsidiary shares through issuer bid, number of shares | shares | 17,000,000 | 17,000,000 | 54,600,000 | 54,600,000 | 54,600,000 | |||||||||||
Common shares repurchased, value | AUD | AUD 51 | AUD 150 | ||||||||||||||
Amount received as a result of participation in Issuer Bid | $ 20 | $ 55 | ||||||||||||||
Dividend paid to noncontrolling interests | $ 53 | $ 88 | $ 108 | |||||||||||||
Shares sold | shares | 92,300,000 | |||||||||||||||
Price per ordinary share | AUD / shares | AUD 0.34 | AUD 3.08 | ||||||||||||||
Proceeds from sale of subsidiary shares to noncontrolling interests | $ 226 | |||||||||||||||
Maximum aggregate amount of share buy-back program | AUD | AUD 100 | |||||||||||||||
Proceeds from capital reduction | $ 76 | |||||||||||||||
Share conversion ratio | 0.8555 | 0.8555 | ||||||||||||||
Capital reduction | AUD | AUD 202 |
Changes in Ownership Interests
Changes in Ownership Interests and Effect on Stockholders' Equity (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||||||||||||
Net loss available to Genworth Financial, Inc.'s common stockholders | $ 353 | $ 107 | $ 202 | $ 155 | $ (122) | $ (380) | $ 172 | $ 53 | $ 817 | $ (277) | $ (615) | ||||
Transfers to the noncontrolling interests: | |||||||||||||||
Decrease in Genworth Financial, Inc.'s additional paid-in capital for additional sale of Genworth Australia shares to noncontrolling interests | (65) | ||||||||||||||
Net transfers to noncontrolling interests | (65) | ||||||||||||||
Change from net loss available to Genworth Financial, Inc.'s common stockholders and transfers to noncontrolling interests | $ (680) | ||||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Sale of Businesses - Additional
Sale of Businesses - Additional Information (Detail) - USD ($) $ in Millions | Jun. 24, 2016 | May 09, 2016 | Dec. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||
Gain (loss) on sale of business, before taxes | $ 0 | $ 3 | $ (140) | |||
Gain (Loss) on sale of business, net of taxes | 0 | 26 | (141) | |||
Term Life Insurance New Business Platform | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||
Gain (loss) on sale of business, before taxes | $ 12 | 12 | ||||
Gain (loss) on sale of business, tax expense (benefit) | 4 | |||||
Proceeds from sale of business | $ 29 | |||||
European Mortgage Insurance Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||
Net proceeds from sale of business | $ 50 | |||||
Gain (loss) on sale of business, before taxes | (9) | (140) | ||||
Gain (loss) on sale of business, tax expense (benefit) | (27) | |||||
Gain (Loss) on sale of business, net of taxes | 18 | (141) | ||||
Fair value less closing costs impairment | 135 | |||||
Loss on sale of discontinued operations,taxes | 1 | |||||
Discontinued operations Closing costs | 5 | |||||
Lifestyle Protection Insurance | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Planned Disposal Groups [Line Items] | ||||||
Net proceeds from sale of business | $ 400 | |||||
Gain (loss) on sale of business, tax expense (benefit) | 155 | |||||
Proceeds from sale of business | $ 493 | |||||
Gain (loss) on sale of discontinued operations, net of taxes | $ (9) | $ (29) | $ (381) |
Summary of Operating Results of
Summary of Operating Results of Discontinued Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Revenues: | |||||||||||||||||||
Premiums | $ 4,004 | $ 4,160 | $ 4,579 | ||||||||||||||||
Net investment income | 3,200 | 3,159 | 3,138 | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 5,179 | 5,245 | 5,149 | ||||||||||||||||
Total benefits and expenses | $ 1,976 | [1] | $ 1,929 | [1] | $ 1,822 | [1] | $ 1,839 | [1] | $ 2,254 | [2] | $ 2,275 | [2] | $ 1,885 | [2] | $ 1,635 | [2] | 7,566 | 8,049 | 8,563 |
Loss from discontinued operations, net of taxes | $ 0 | $ (9) | $ 0 | $ 0 | $ (4) | $ 15 | $ (21) | $ (19) | (9) | (29) | (407) | ||||||||
Assets Held For Sale Discontinued Operations | Lifestyle Protection Insurance | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Premiums | 0 | 0 | 627 | ||||||||||||||||
Net investment income | 0 | 0 | 74 | ||||||||||||||||
Total revenues | 0 | 0 | 701 | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 0 | 0 | 182 | ||||||||||||||||
Acquisition and operating expenses | 0 | 0 | 396 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 83 | ||||||||||||||||
Interest expense | 0 | 0 | 29 | ||||||||||||||||
Total benefits and expenses | 0 | 0 | 690 | ||||||||||||||||
Income before income taxes and loss on sale | 0 | 0 | 11 | ||||||||||||||||
Provision for income taxes | 0 | 0 | 37 | ||||||||||||||||
Loss before loss on sale | 0 | 0 | (26) | ||||||||||||||||
Loss on sale, net of taxes | (9) | (29) | (381) | ||||||||||||||||
Loss from discontinued operations, net of taxes | $ (9) | $ (29) | $ (407) | ||||||||||||||||
[1] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2017, which resulted in higher total benefits and expenses of $117 million in our universal and term universal life insurance products driven mostly by emerging mortality experience and from prolonged low interest rates. In addition, we recorded lower total benefits and expenses of $18 million in our Australian mortgage insurance business associated with changes to their premium earnings pattern, as described above. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in higher total benefits and expenses of $307 million in our universal and term universal life insurance products. |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | $ 62,525 | $ 60,572 | ||
Equity securities available-for-sale, at fair value | 820 | 632 | ||
Commercial mortgage loans | 6,341 | 6,111 | ||
Restricted commercial mortgage loans related to securitization entities | 107 | 129 | ||
Policy loans | 1,786 | 1,742 | ||
Other invested assets | 1,813 | 2,071 | ||
Restricted other invested assets related to securitization entities, at fair value | 0 | 312 | ||
Investments in subsidiaries | 0 | 0 | ||
Total investments | 73,392 | 71,569 | ||
Cash and cash equivalents | 2,875 | 2,784 | $ 5,965 | |
Accrued investment income | 644 | 659 | ||
Deferred acquisition costs | 2,329 | 3,571 | 4,398 | |
Intangible assets and goodwill | 301 | 348 | ||
Reinsurance recoverable | 17,569 | 17,755 | ||
Other assets | 453 | 673 | ||
Intercompany notes receivable | 0 | 0 | ||
Deferred tax assets | 504 | 0 | ||
Separate account assets | 7,230 | 7,299 | ||
Total assets | 105,297 | 104,658 | ||
Liabilities and stockholders' equity | ||||
Future policy benefits | 38,472 | 37,063 | ||
Policyholder account balances | 24,195 | 25,662 | ||
Liability for policy and contract claims | 9,594 | 9,256 | ||
Unearned premiums | 3,967 | 3,378 | ||
Other liabilities | 1,910 | 2,916 | ||
Intercompany notes payable | 0 | 0 | ||
Borrowings related to securitization entities | 40 | 74 | ||
Non-recourse funding obligations | 310 | 310 | ||
Long-term borrowings | 4,224 | 4,180 | ||
Deferred tax liability | 27 | 53 | ||
Separate account liabilities | 7,230 | 7,299 | ||
Total liabilities | 89,969 | 90,191 | ||
Equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,977 | 11,962 | ||
Accumulated other comprehensive income (loss) | 3,027 | 3,094 | ||
Retained earnings | 1,113 | 287 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 13,418 | 12,644 | ||
Noncontrolling interests | 1,910 | 1,823 | ||
Total equity | 15,328 | 14,467 | 14,637 | $ 16,797 |
Total liabilities and equity | 105,297 | 104,658 | ||
Reportable Legal Entities | Parent Guarantor | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | 0 | 0 | ||
Equity securities available-for-sale, at fair value | 0 | 0 | ||
Commercial mortgage loans | 0 | 0 | ||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | ||
Policy loans | 0 | 0 | ||
Other invested assets | 0 | 0 | ||
Restricted other invested assets related to securitization entities, at fair value | 0 | 0 | ||
Investments in subsidiaries | 13,561 | 12,730 | ||
Total investments | 13,561 | 12,730 | ||
Cash and cash equivalents | 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 | 3 | 9 | ||
Intercompany notes receivable | 0 | 0 | ||
Deferred tax assets | 27 | 28 | ||
Separate account assets | 0 | 0 | ||
Total assets | 13,591 | 12,767 | ||
Liabilities and stockholders' equity | ||||
Future policy benefits | 0 | 0 | ||
Policyholder account balances | 0 | 0 | ||
Liability for policy and contract claims | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Other liabilities | 41 | 39 | ||
Intercompany notes payable | 132 | 84 | ||
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 | 173 | 123 | ||
Equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,977 | 11,962 | ||
Accumulated other comprehensive income (loss) | 3,027 | 3,094 | ||
Retained earnings | 1,113 | 287 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 13,418 | 12,644 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 13,418 | 12,644 | ||
Total liabilities and equity | 13,591 | 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 | 0 | ||
Investments in subsidiaries | 12,867 | 12,308 | ||
Total investments | 12,942 | 12,413 | ||
Cash and cash equivalents | 795 | 998 | 1,124 | |
Accrued investment income | 0 | 0 | ||
Deferred acquisition costs | 0 | 0 | ||
Intangible assets and goodwill | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Other assets | 54 | 134 | ||
Intercompany notes receivable | 155 | 84 | ||
Deferred tax assets | 0 | 0 | ||
Separate account assets | 0 | 0 | ||
Total assets | 13,946 | 13,629 | ||
Liabilities and stockholders' equity | ||||
Future policy benefits | 0 | 0 | ||
Policyholder account balances | 0 | 0 | ||
Liability for policy and contract claims | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Other liabilities | 119 | 301 | ||
Intercompany notes payable | 259 | 267 | ||
Borrowings related to securitization entities | 0 | 0 | ||
Non-recourse funding obligations | 0 | 0 | ||
Long-term borrowings | 3,724 | 3,716 | ||
Deferred tax liability | (807) | (816) | ||
Separate account liabilities | 0 | 0 | ||
Total liabilities | 3,295 | 3,468 | ||
Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 9,096 | 9,097 | ||
Accumulated other comprehensive income (loss) | 3,037 | 3,135 | ||
Retained earnings | (1,482) | (2,071) | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | 10,651 | 10,161 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 10,651 | 10,161 | ||
Total liabilities and equity | 13,946 | 13,629 | ||
Reportable Legal Entities | All Other Subsidiaries | ||||
Assets | ||||
Fixed maturity securities available-for-sale, at fair value | 62,725 | 60,772 | ||
Equity securities available-for-sale, at fair value | 820 | 632 | ||
Commercial mortgage loans | 6,341 | 6,111 | ||
Restricted commercial mortgage loans related to securitization entities | 107 | 129 | ||
Policy loans | 1,786 | 1,742 | ||
Other invested assets | 1,742 | 1,966 | ||
Restricted other invested assets related to securitization entities, at fair value | 0 | 312 | ||
Investments in subsidiaries | 0 | 0 | ||
Total investments | 73,521 | 71,664 | ||
Cash and cash equivalents | 2,080 | 1,786 | 4,841 | |
Accrued investment income | 647 | 663 | ||
Deferred acquisition costs | 2,329 | 3,571 | ||
Intangible assets and goodwill | 301 | 348 | ||
Reinsurance recoverable | 17,569 | 17,755 | ||
Other assets | 397 | 530 | ||
Intercompany notes receivable | 59 | 67 | ||
Deferred tax assets | 477 | (28) | ||
Separate account assets | 7,230 | 7,299 | ||
Total assets | 104,610 | 103,655 | ||
Liabilities and stockholders' equity | ||||
Future policy benefits | 38,472 | 37,063 | ||
Policyholder account balances | 24,195 | 25,662 | ||
Liability for policy and contract claims | 9,594 | 9,256 | ||
Unearned premiums | 3,967 | 3,378 | ||
Other liabilities | 1,759 | 2,581 | ||
Intercompany notes payable | 23 | 0 | ||
Borrowings related to securitization entities | 40 | 74 | ||
Non-recourse funding obligations | 310 | 310 | ||
Long-term borrowings | 500 | 464 | ||
Deferred tax liability | 834 | 869 | ||
Separate account liabilities | 7,230 | 7,299 | ||
Total liabilities | 86,924 | 86,956 | ||
Equity: | ||||
Common stock | 3 | 0 | ||
Additional paid-in capital | 18,420 | 20,252 | ||
Accumulated other comprehensive income (loss) | 3,051 | 3,116 | ||
Retained earnings | (5,998) | (8,792) | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | 15,476 | 14,576 | ||
Noncontrolling interests | 2,210 | 2,123 | ||
Total equity | 17,686 | 16,699 | ||
Total liabilities and equity | 104,610 | 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 | (4) | 0 | ||
Restricted other invested assets related to securitization entities, at fair value | 0 | 0 | ||
Investments in subsidiaries | (26,428) | (25,038) | ||
Total investments | (26,632) | (25,238) | ||
Cash and cash equivalents | 0 | 0 | $ 0 | |
Accrued investment income | (3) | (4) | ||
Deferred acquisition costs | 0 | 0 | ||
Intangible assets and goodwill | 0 | 0 | ||
Reinsurance recoverable | 0 | 0 | ||
Other assets | (1) | 0 | ||
Intercompany notes receivable | (214) | (151) | ||
Deferred tax assets | 0 | 0 | ||
Separate account assets | 0 | 0 | ||
Total assets | (26,850) | (25,393) | ||
Liabilities and stockholders' equity | ||||
Future policy benefits | 0 | 0 | ||
Policyholder account balances | 0 | 0 | ||
Liability for policy and contract claims | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Other liabilities | (9) | (5) | ||
Intercompany notes payable | (414) | (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 | (423) | (356) | ||
Equity: | ||||
Common stock | (3) | 0 | ||
Additional paid-in capital | (27,516) | (29,349) | ||
Accumulated other comprehensive income (loss) | (6,088) | (6,251) | ||
Retained earnings | 7,480 | 10,863 | ||
Treasury stock, at cost | 0 | 0 | ||
Total Genworth Financial, Inc.'s stockholders' equity | (26,127) | (24,737) | ||
Noncontrolling interests | (300) | (300) | ||
Total equity | (26,427) | (25,037) | ||
Total liabilities and equity | $ (26,850) | $ (25,393) |
Condensed Consolidating Income
Condensed Consolidating Income Statement (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Revenues: | |||||||||||||||||||
Premiums | $ 4,004 | $ 4,160 | $ 4,579 | ||||||||||||||||
Net investment income | 3,200 | 3,159 | 3,138 | ||||||||||||||||
Net investment gains (losses) | 265 | 72 | (75) | ||||||||||||||||
Policy fees and other income | 826 | 978 | 906 | ||||||||||||||||
Total revenues | $ 1,686 | [1] | $ 2,215 | [1] | $ 2,223 | [1] | $ 2,171 | [1] | $ 2,198 | [2] | $ 2,150 | [2] | $ 2,236 | [2] | $ 1,785 | [2] | 8,295 | 8,369 | 8,548 |
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 5,179 | 5,245 | 5,149 | ||||||||||||||||
Interest credited | 646 | 696 | 720 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 1,022 | 1,273 | 1,309 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 435 | 498 | 966 | ||||||||||||||||
Interest expense | 284 | 337 | 419 | ||||||||||||||||
Total benefits and expenses | 1,976 | [3] | 1,929 | [3] | 1,822 | [3] | 1,839 | [3] | 2,254 | [4] | 2,275 | [4] | 1,885 | [4] | 1,635 | [4] | 7,566 | 8,049 | 8,563 |
Income (loss) from continuing operations before income taxes | 729 | 320 | (15) | ||||||||||||||||
Provision (benefit) for income taxes | 456 | (207) | 358 | (9) | |||||||||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Income (loss) from continuing operations | 265 | [5] | 184 | [5] | 271 | [5] | 216 | [5] | (59) | [6] | (347) | [6] | 241 | [6] | 127 | [6] | 936 | (38) | (6) |
Income (loss) from discontinued operations, net of taxes | 0 | (9) | 0 | 0 | (4) | 15 | (21) | (19) | (9) | (29) | (407) | ||||||||
Net income (loss) | 265 | [5] | 175 | [5] | 271 | [5] | 216 | [5] | (63) | [6] | (332) | [6] | 220 | [6] | 108 | [6] | 927 | (67) | (413) |
Less: net income attributable to noncontrolling interests | (88) | [7] | 68 | [7] | 69 | [7] | 61 | [7] | 59 | 48 | 48 | 55 | 110 | 210 | 202 | ||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 353 | [5] | $ 107 | [5] | $ 202 | [5] | $ 155 | [5] | $ (122) | $ (380) | $ 172 | $ 53 | 817 | (277) | (615) | ||||
Reportable Legal Entities | Parent Guarantor | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Premiums | 0 | 0 | 0 | ||||||||||||||||
Net investment income | (3) | (3) | (3) | ||||||||||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||||||||||
Policy fees and other income | 0 | 0 | 0 | ||||||||||||||||
Total revenues | (3) | (3) | (3) | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 57 | 153 | 32 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | ||||||||||||||||
Interest expense | 1 | 1 | 0 | ||||||||||||||||
Total benefits and expenses | 58 | 154 | 32 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (61) | (157) | (35) | ||||||||||||||||
Provision (benefit) for income taxes | 0 | (47) | (8) | ||||||||||||||||
Equity in income (loss) of subsidiaries | 878 | (166) | (579) | ||||||||||||||||
Income (loss) from continuing operations | 817 | (276) | (606) | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 0 | (1) | (9) | ||||||||||||||||
Net income (loss) | 817 | (277) | (615) | ||||||||||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 817 | (277) | (615) | ||||||||||||||||
Reportable Legal Entities | Issuer | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Premiums | 0 | 0 | 0 | ||||||||||||||||
Net investment income | 8 | 2 | 1 | ||||||||||||||||
Net investment gains (losses) | (14) | (1) | 43 | ||||||||||||||||
Policy fees and other income | 5 | (8) | (32) | ||||||||||||||||
Total revenues | (1) | (7) | 12 | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | (2) | 38 | 2 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | ||||||||||||||||
Interest expense | 254 | 278 | 307 | ||||||||||||||||
Total benefits and expenses | 252 | 316 | 309 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (253) | (323) | (297) | ||||||||||||||||
Provision (benefit) for income taxes | (67) | 71 | (103) | ||||||||||||||||
Equity in income (loss) of subsidiaries | 771 | (53) | (463) | ||||||||||||||||
Income (loss) from continuing operations | 585 | (447) | (657) | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 4 | (12) | 0 | ||||||||||||||||
Net income (loss) | 589 | (459) | (657) | ||||||||||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 589 | (459) | (657) | ||||||||||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Premiums | 4,004 | 4,160 | 4,579 | ||||||||||||||||
Net investment income | 3,210 | 3,175 | 3,154 | ||||||||||||||||
Net investment gains (losses) | 279 | 73 | (118) | ||||||||||||||||
Policy fees and other income | 823 | 986 | 940 | ||||||||||||||||
Total revenues | 8,316 | 8,394 | 8,555 | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 5,179 | 5,245 | 5,149 | ||||||||||||||||
Interest credited | 646 | 696 | 720 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 967 | 1,082 | 1,275 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 435 | 498 | 966 | ||||||||||||||||
Interest expense | 46 | 73 | 128 | ||||||||||||||||
Total benefits and expenses | 7,273 | 7,594 | 8,238 | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 1,043 | 800 | 317 | ||||||||||||||||
Provision (benefit) for income taxes | (140) | 334 | 102 | ||||||||||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Income (loss) from continuing operations | 1,183 | 466 | 215 | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | (13) | (16) | (398) | ||||||||||||||||
Net income (loss) | 1,170 | 450 | (183) | ||||||||||||||||
Less: net income attributable to noncontrolling interests | 110 | 210 | 202 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 1,060 | 240 | (385) | ||||||||||||||||
Eliminations | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Premiums | 0 | 0 | 0 | ||||||||||||||||
Net investment income | (15) | (15) | (14) | ||||||||||||||||
Net investment gains (losses) | 0 | 0 | 0 | ||||||||||||||||
Policy fees and other income | (2) | 0 | (2) | ||||||||||||||||
Total revenues | (17) | (15) | (16) | ||||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Benefits and other changes in policy reserves | 0 | 0 | 0 | ||||||||||||||||
Interest credited | 0 | 0 | 0 | ||||||||||||||||
Acquisition and operating expenses, net of deferrals | 0 | 0 | 0 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | ||||||||||||||||
Interest expense | (17) | (15) | (16) | ||||||||||||||||
Total benefits and expenses | (17) | (15) | (16) | ||||||||||||||||
Income (loss) from continuing operations before income taxes | 0 | 0 | 0 | ||||||||||||||||
Provision (benefit) for income taxes | 0 | 0 | 0 | ||||||||||||||||
Equity in income (loss) of subsidiaries | (1,649) | 219 | 1,042 | ||||||||||||||||
Income (loss) from continuing operations | (1,649) | 219 | 1,042 | ||||||||||||||||
Income (loss) from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) | (1,649) | 219 | 1,042 | ||||||||||||||||
Less: net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (1,649) | $ 219 | $ 1,042 | ||||||||||||||||
[1] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. | ||||||||||||||||||
[3] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2017, which resulted in higher total benefits and expenses of $117 million in our universal and term universal life insurance products driven mostly by emerging mortality experience and from prolonged low interest rates. In addition, we recorded lower total benefits and expenses of $18 million in our Australian mortgage insurance business associated with changes to their premium earnings pattern, as described above. | ||||||||||||||||||
[4] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in higher total benefits and expenses of $307 million in our universal and term universal life insurance products. | ||||||||||||||||||
[5] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[6] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. | ||||||||||||||||||
[7] | We completed a review of the premium earnings pattern in our Australian mortgage insurance business, as described above, which resulted in an unfavorable adjustment to net income (loss) attributable to noncontrolling interests of $151 million. |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [2] | Sep. 30, 2016 | [2] | Jun. 30, 2016 | [2] | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | $ 265 | $ 175 | $ 271 | $ 216 | $ (63) | $ (332) | $ 220 | $ 108 | $ 927 | $ (67) | $ (413) | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (187) | 6 | (1,209) | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | (9) | (4) | ||||||||||||||||
Derivatives qualifying as hedges | (20) | 40 | (25) | ||||||||||||||||
Foreign currency translation and other adjustments | 251 | 54 | (530) | ||||||||||||||||
Total other comprehensive income (loss) | 45 | 91 | (1,768) | ||||||||||||||||
Total comprehensive income (loss) | 972 | 24 | (2,181) | ||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 222 | 217 | (106) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 750 | (193) | (2,075) | ||||||||||||||||
Reportable Legal Entities | Parent Guarantor | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 817 | (277) | (615) | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (178) | 17 | (1,181) | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | (9) | (4) | ||||||||||||||||
Derivatives qualifying as hedges | (20) | 40 | (25) | ||||||||||||||||
Foreign currency translation and other adjustments | 130 | 36 | (250) | ||||||||||||||||
Total other comprehensive income (loss) | (67) | 84 | (1,460) | ||||||||||||||||
Total comprehensive income (loss) | 750 | (193) | (2,075) | ||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 750 | (193) | (2,075) | ||||||||||||||||
Reportable Legal Entities | Issuer | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 589 | (459) | (657) | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (189) | 14 | (1,158) | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | (6) | (4) | ||||||||||||||||
Derivatives qualifying as hedges | (19) | 39 | (24) | ||||||||||||||||
Foreign currency translation and other adjustments | 109 | (28) | (171) | ||||||||||||||||
Total other comprehensive income (loss) | (98) | 19 | (1,357) | ||||||||||||||||
Total comprehensive income (loss) | 491 | (440) | (2,014) | ||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 491 | (440) | (2,014) | ||||||||||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | 1,170 | 450 | (183) | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (187) | 7 | (1,210) | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | (9) | (4) | ||||||||||||||||
Derivatives qualifying as hedges | (19) | 43 | (19) | ||||||||||||||||
Foreign currency translation and other adjustments | 252 | 54 | (530) | ||||||||||||||||
Total other comprehensive income (loss) | 47 | 95 | (1,763) | ||||||||||||||||
Total comprehensive income (loss) | 1,217 | 545 | (1,946) | ||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 222 | 217 | (106) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 995 | 328 | (1,840) | ||||||||||||||||
Eliminations | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) | (1,649) | 219 | 1,042 | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 367 | (32) | 2,340 | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | (2) | 15 | 8 | ||||||||||||||||
Derivatives qualifying as hedges | 38 | (82) | 43 | ||||||||||||||||
Foreign currency translation and other adjustments | (240) | (8) | 421 | ||||||||||||||||
Total other comprehensive income (loss) | 163 | (107) | 2,812 | ||||||||||||||||
Total comprehensive income (loss) | (1,486) | 112 | 3,854 | ||||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ (1,486) | $ 112 | $ 3,854 | ||||||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. |
Condensed Consolidating Stat170
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income (loss) | $ 265 | [1] | $ 175 | [1] | $ 271 | [1] | $ 216 | [1] | $ (63) | [2] | $ (332) | [2] | $ 220 | [2] | $ 108 | [2] | $ 927 | $ (67) | $ (413) |
Less (income) loss from discontinued operations, net of taxes | 0 | $ 9 | $ 0 | 0 | 4 | $ (15) | $ 21 | 19 | 9 | 29 | 407 | ||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Dividends from subsidiaries | 0 | 0 | 0 | ||||||||||||||||
(Gain) loss on sale of businesses | 0 | (26) | 141 | ||||||||||||||||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (147) | (138) | (106) | ||||||||||||||||
Net investment (gains) losses | (265) | (72) | 75 | ||||||||||||||||
Charges assessed to policyholders | (713) | (782) | (788) | ||||||||||||||||
Acquisition costs deferred | (88) | (150) | (293) | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 435 | 498 | 966 | ||||||||||||||||
Deferred income taxes | (368) | 145 | (196) | ||||||||||||||||
Trading securities, held-for-sale investments and derivative instruments | 703 | 709 | (239) | ||||||||||||||||
Stock-based compensation expense | 42 | 32 | 16 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 30 | (358) | (106) | ||||||||||||||||
Insurance reserves | 1,625 | 1,315 | 1,847 | ||||||||||||||||
Current tax liabilities | (4) | 32 | (15) | ||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 368 | 685 | 293 | ||||||||||||||||
Cash from operating activities-held for sale | 0 | 0 | 2 | ||||||||||||||||
Net cash from (used by) operating activities | 2,554 | 1,852 | 1,591 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Fixed maturity securities | 4,766 | 3,889 | 4,541 | ||||||||||||||||
Commercial mortgage loans | 579 | 700 | 882 | ||||||||||||||||
Restricted commercial mortgage loans related to securitization entities | 22 | 32 | 41 | ||||||||||||||||
Proceeds from sales of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 4,226 | 5,629 | 4,391 | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Fixed maturity and equity securities | (8,888) | (11,529) | (9,750) | ||||||||||||||||
Commercial mortgage loans | (806) | (649) | (956) | ||||||||||||||||
Other invested assets, net | (701) | (154) | 175 | ||||||||||||||||
Policy loans, net | 48 | (77) | 25 | ||||||||||||||||
Intercompany notes receivable | 0 | 0 | 0 | ||||||||||||||||
Capital contributions to subsidiaries | 0 | 0 | |||||||||||||||||
Payments for businesses purchased, net of cash acquired | (5) | 0 | 0 | ||||||||||||||||
Proceeds from sale of businesses, net of cash transferred | 0 | 39 | 273 | ||||||||||||||||
Cash used by investing activities-held for sale | 0 | 0 | (26) | ||||||||||||||||
Net cash from (used by) investing activities | (759) | (2,120) | (404) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Deposits to universal life and investment contracts | 857 | 1,349 | 2,257 | ||||||||||||||||
Withdrawals from universal life and investment contracts | (2,397) | (2,004) | (2,144) | ||||||||||||||||
Redemption and repurchase of non-recourse funding obligations | 0 | (1,620) | (61) | ||||||||||||||||
Proceeds from the issuance of long-term debt | 0 | 0 | 150 | ||||||||||||||||
Repayment and repurchase of long-term debt | 0 | (362) | (120) | ||||||||||||||||
Repayment of borrowings related to securitization entities | (34) | (42) | (36) | ||||||||||||||||
Intercompany notes payable | 0 | 0 | 0 | ||||||||||||||||
Return of capital to noncontrolling interests | 0 | (70) | 0 | ||||||||||||||||
Repurchase of subsidiary shares | (33) | 0 | (68) | ||||||||||||||||
Dividends paid to noncontrolling interests | (107) | (138) | (157) | ||||||||||||||||
Proceeds from the sale of subsidiary shares to noncontrolling interests | 0 | 0 | 226 | ||||||||||||||||
Other, net | (54) | (44) | (98) | ||||||||||||||||
Cash from financing activities-held for sale | 0 | 0 | 9 | ||||||||||||||||
Net cash from (used by) financing activities | (1,768) | (2,931) | (42) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 64 | (10) | (70) | ||||||||||||||||
Net change in cash and cash equivalents | 91 | (3,209) | 1,075 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 2,784 | 5,993 | 2,784 | 5,993 | 4,918 | ||||||||||||||
Cash and cash equivalents at end of period | 2,875 | 2,784 | 2,875 | 2,784 | 5,993 | ||||||||||||||
Less cash and cash equivalents held for sale at end of period | 0 | 0 | 0 | 0 | 28 | ||||||||||||||
Cash and cash equivalents at end of year | 2,875 | 2,784 | 2,875 | 2,784 | 5,965 | ||||||||||||||
Reportable Legal Entities | Parent Guarantor | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income (loss) | 817 | (277) | (615) | ||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | 0 | 1 | 9 | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | (878) | 166 | 579 | ||||||||||||||||
Dividends from subsidiaries | 0 | 0 | 0 | ||||||||||||||||
(Gain) loss on sale of businesses | 0 | 0 | 0 | ||||||||||||||||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 | 0 | ||||||||||||||||
Net investment (gains) losses | 0 | 0 | 0 | ||||||||||||||||
Charges assessed to policyholders | 0 | 0 | 0 | ||||||||||||||||
Acquisition costs deferred | 0 | 0 | 0 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | ||||||||||||||||
Deferred income taxes | 10 | (6) | (4) | ||||||||||||||||
Trading securities, held-for-sale investments and derivative instruments | 0 | 0 | 0 | ||||||||||||||||
Stock-based compensation expense | 30 | 23 | 21 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 5 | (9) | 3 | ||||||||||||||||
Insurance reserves | 0 | 0 | 0 | ||||||||||||||||
Current tax liabilities | 23 | 0 | (3) | ||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | (35) | 20 | 2 | ||||||||||||||||
Cash from operating activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) operating activities | (28) | (82) | (8) | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Fixed maturity securities | 0 | 0 | 0 | ||||||||||||||||
Commercial mortgage loans | 0 | 0 | 0 | ||||||||||||||||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | 0 | ||||||||||||||||
Proceeds from sales of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 0 | 0 | 0 | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 0 | 0 | 0 | ||||||||||||||||
Commercial mortgage loans | 0 | 0 | 0 | ||||||||||||||||
Other invested assets, net | 0 | 0 | 0 | ||||||||||||||||
Policy loans, net | 0 | 0 | 0 | ||||||||||||||||
Intercompany notes receivable | 0 | 0 | 9 | ||||||||||||||||
Capital contributions to subsidiaries | (12) | 0 | |||||||||||||||||
Payments for businesses purchased, net of cash acquired | (7) | 0 | |||||||||||||||||
Proceeds from sale of businesses, net of cash transferred | 0 | 0 | 0 | ||||||||||||||||
Cash used by investing activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) investing activities | (19) | 0 | 9 | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Deposits to universal life and investment contracts | 0 | 0 | 0 | ||||||||||||||||
Withdrawals from universal life and investment contracts | 0 | 0 | 0 | ||||||||||||||||
Redemption and repurchase of non-recourse funding obligations | 0 | 0 | 0 | ||||||||||||||||
Proceeds from the issuance of long-term debt | 0 | 0 | 0 | ||||||||||||||||
Repayment and repurchase of long-term debt | 0 | 0 | 0 | ||||||||||||||||
Repayment of borrowings related to securitization entities | 0 | 0 | 0 | ||||||||||||||||
Intercompany notes payable | 48 | 82 | 2 | ||||||||||||||||
Return of capital to noncontrolling interests | 0 | 0 | |||||||||||||||||
Repurchase of subsidiary shares | 0 | 0 | |||||||||||||||||
Dividends paid to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Proceeds from the sale of subsidiary shares to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Other, net | (1) | 0 | (3) | ||||||||||||||||
Cash from financing activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) financing activities | 47 | 82 | (1) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||||||||||||||||
Net change in cash and cash equivalents | 0 | 0 | 0 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Less cash and cash equivalents held for sale at end of period | 0 | ||||||||||||||||||
Cash and cash equivalents at end of year | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Reportable Legal Entities | Issuer | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income (loss) | 589 | (459) | (657) | ||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | (4) | 12 | 0 | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | (771) | 53 | 463 | ||||||||||||||||
Dividends from subsidiaries | 148 | 250 | 530 | ||||||||||||||||
(Gain) loss on sale of businesses | 0 | 1 | 0 | ||||||||||||||||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 5 | 4 | 0 | ||||||||||||||||
Net investment (gains) losses | 14 | 1 | (43) | ||||||||||||||||
Charges assessed to policyholders | 0 | 0 | 0 | ||||||||||||||||
Acquisition costs deferred | 0 | 0 | 0 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | ||||||||||||||||
Deferred income taxes | 7 | 233 | (65) | ||||||||||||||||
Trading securities, held-for-sale investments and derivative instruments | (44) | 5 | 41 | ||||||||||||||||
Stock-based compensation expense | 0 | 0 | 0 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | (41) | 98 | 13 | ||||||||||||||||
Insurance reserves | 0 | 0 | 0 | ||||||||||||||||
Current tax liabilities | (89) | 42 | 18 | ||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 80 | (63) | (38) | ||||||||||||||||
Cash from operating activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) operating activities | (106) | 177 | 262 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Fixed maturity securities | 0 | 150 | 1 | ||||||||||||||||
Commercial mortgage loans | 0 | 0 | 0 | ||||||||||||||||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | 0 | ||||||||||||||||
Proceeds from sales of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 0 | 0 | 0 | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 0 | 0 | 0 | ||||||||||||||||
Commercial mortgage loans | 0 | 0 | 0 | ||||||||||||||||
Other invested assets, net | 25 | 0 | (100) | ||||||||||||||||
Policy loans, net | 0 | 0 | 0 | ||||||||||||||||
Intercompany notes receivable | (71) | (82) | 265 | ||||||||||||||||
Capital contributions to subsidiaries | 0 | (25) | |||||||||||||||||
Payments for businesses purchased, net of cash acquired | 0 | (197) | |||||||||||||||||
Proceeds from sale of businesses, net of cash transferred | 0 | 1 | 0 | ||||||||||||||||
Cash used by investing activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) investing activities | (46) | 69 | (56) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Deposits to universal life and investment contracts | 0 | 0 | 0 | ||||||||||||||||
Withdrawals from universal life and investment contracts | 0 | 0 | 0 | ||||||||||||||||
Redemption and repurchase of non-recourse funding obligations | 0 | 0 | 0 | ||||||||||||||||
Proceeds from the issuance of long-term debt | 0 | 0 | 0 | ||||||||||||||||
Repayment and repurchase of long-term debt | 0 | (326) | (50) | ||||||||||||||||
Repayment of borrowings related to securitization entities | 0 | 0 | 0 | ||||||||||||||||
Intercompany notes payable | (8) | 0 | 54 | ||||||||||||||||
Return of capital to noncontrolling interests | 0 | 0 | |||||||||||||||||
Repurchase of subsidiary shares | 0 | 0 | |||||||||||||||||
Dividends paid to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Proceeds from the sale of subsidiary shares to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Other, net | (43) | (46) | (39) | ||||||||||||||||
Cash from financing activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) financing activities | (51) | (372) | (35) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||||||||||||||||
Net change in cash and cash equivalents | (203) | (126) | 171 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 998 | 1,124 | 998 | 1,124 | 953 | ||||||||||||||
Cash and cash equivalents at end of period | 795 | 998 | 795 | 998 | 1,124 | ||||||||||||||
Less cash and cash equivalents held for sale at end of period | 0 | ||||||||||||||||||
Cash and cash equivalents at end of year | 795 | 998 | 795 | 998 | 1,124 | ||||||||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income (loss) | 1,170 | 450 | (183) | ||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | 13 | 16 | 398 | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Dividends from subsidiaries | (148) | (250) | (530) | ||||||||||||||||
(Gain) loss on sale of businesses | 0 | (27) | 141 | ||||||||||||||||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | (152) | (142) | (106) | ||||||||||||||||
Net investment (gains) losses | (279) | (73) | 118 | ||||||||||||||||
Charges assessed to policyholders | (713) | (782) | (788) | ||||||||||||||||
Acquisition costs deferred | (88) | (150) | (293) | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 435 | 498 | 966 | ||||||||||||||||
Deferred income taxes | (385) | (82) | (127) | ||||||||||||||||
Trading securities, held-for-sale investments and derivative instruments | 747 | 704 | (280) | ||||||||||||||||
Stock-based compensation expense | 12 | 9 | (5) | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 66 | (445) | (123) | ||||||||||||||||
Insurance reserves | 1,625 | 1,315 | 1,847 | ||||||||||||||||
Current tax liabilities | 62 | (10) | (30) | ||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | 327 | 723 | 328 | ||||||||||||||||
Cash from operating activities-held for sale | 0 | 0 | 2 | ||||||||||||||||
Net cash from (used by) operating activities | 2,692 | 1,754 | 1,335 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Fixed maturity securities | 4,766 | 3,739 | 4,540 | ||||||||||||||||
Commercial mortgage loans | 579 | 700 | 882 | ||||||||||||||||
Restricted commercial mortgage loans related to securitization entities | 22 | 32 | 41 | ||||||||||||||||
Proceeds from sales of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 4,226 | 5,629 | 4,391 | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Fixed maturity and equity securities | (8,888) | (11,529) | (9,750) | ||||||||||||||||
Commercial mortgage loans | (806) | (649) | (956) | ||||||||||||||||
Other invested assets, net | (730) | (151) | 277 | ||||||||||||||||
Policy loans, net | 48 | (77) | 25 | ||||||||||||||||
Intercompany notes receivable | 8 | 0 | (63) | ||||||||||||||||
Capital contributions to subsidiaries | 12 | 25 | |||||||||||||||||
Payments for businesses purchased, net of cash acquired | 2 | 197 | |||||||||||||||||
Proceeds from sale of businesses, net of cash transferred | 0 | 38 | 273 | ||||||||||||||||
Cash used by investing activities-held for sale | 0 | 0 | (26) | ||||||||||||||||
Net cash from (used by) investing activities | (761) | (2,268) | (144) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Deposits to universal life and investment contracts | 857 | 1,349 | 2,257 | ||||||||||||||||
Withdrawals from universal life and investment contracts | (2,397) | (2,004) | (2,144) | ||||||||||||||||
Redemption and repurchase of non-recourse funding obligations | 0 | (1,620) | (61) | ||||||||||||||||
Proceeds from the issuance of long-term debt | 0 | 0 | 150 | ||||||||||||||||
Repayment and repurchase of long-term debt | 0 | (36) | (70) | ||||||||||||||||
Repayment of borrowings related to securitization entities | (34) | (42) | (36) | ||||||||||||||||
Intercompany notes payable | 23 | 0 | (267) | ||||||||||||||||
Return of capital to noncontrolling interests | 0 | (70) | |||||||||||||||||
Repurchase of subsidiary shares | (33) | (68) | |||||||||||||||||
Dividends paid to noncontrolling interests | (107) | (138) | (157) | ||||||||||||||||
Proceeds from the sale of subsidiary shares to noncontrolling interests | 0 | 0 | 226 | ||||||||||||||||
Other, net | (10) | 2 | (56) | ||||||||||||||||
Cash from financing activities-held for sale | 0 | 0 | 9 | ||||||||||||||||
Net cash from (used by) financing activities | (1,701) | (2,559) | (217) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 64 | (10) | (70) | ||||||||||||||||
Net change in cash and cash equivalents | 294 | (3,083) | 904 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 1,786 | 4,869 | 1,786 | 4,869 | 3,965 | ||||||||||||||
Cash and cash equivalents at end of period | 2,080 | 1,786 | 2,080 | 1,786 | 4,869 | ||||||||||||||
Less cash and cash equivalents held for sale at end of period | 28 | ||||||||||||||||||
Cash and cash equivalents at end of year | 2,080 | 1,786 | 2,080 | 1,786 | 4,841 | ||||||||||||||
Eliminations | |||||||||||||||||||
Cash flows from (used by) operating activities: | |||||||||||||||||||
Net income (loss) | (1,649) | 219 | 1,042 | ||||||||||||||||
Less (income) loss from discontinued operations, net of taxes | 0 | 0 | 0 | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | 1,649 | (219) | (1,042) | ||||||||||||||||
Dividends from subsidiaries | 0 | 0 | 0 | ||||||||||||||||
(Gain) loss on sale of businesses | 0 | 0 | 0 | ||||||||||||||||
Amortization of fixed maturity securities discounts and premiums and limited partnerships | 0 | 0 | 0 | ||||||||||||||||
Net investment (gains) losses | 0 | 0 | 0 | ||||||||||||||||
Charges assessed to policyholders | 0 | 0 | 0 | ||||||||||||||||
Acquisition costs deferred | 0 | 0 | 0 | ||||||||||||||||
Amortization of deferred acquisition costs and intangibles | 0 | 0 | 0 | ||||||||||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||||||||||
Trading securities, held-for-sale investments and derivative instruments | 0 | 0 | 0 | ||||||||||||||||
Stock-based compensation expense | 0 | 0 | 0 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 0 | (2) | 1 | ||||||||||||||||
Insurance reserves | 0 | 0 | 0 | ||||||||||||||||
Current tax liabilities | 0 | 0 | 0 | ||||||||||||||||
Other liabilities, policy and contract claims and other policy-related balances | (4) | 5 | 1 | ||||||||||||||||
Cash from operating activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) operating activities | (4) | 3 | 2 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Fixed maturity securities | 0 | 0 | 0 | ||||||||||||||||
Commercial mortgage loans | 0 | 0 | 0 | ||||||||||||||||
Restricted commercial mortgage loans related to securitization entities | 0 | 0 | 0 | ||||||||||||||||
Proceeds from sales of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 0 | 0 | 0 | ||||||||||||||||
Purchases and originations of investments: | |||||||||||||||||||
Fixed maturity and equity securities | 0 | 0 | 0 | ||||||||||||||||
Commercial mortgage loans | 0 | 0 | 0 | ||||||||||||||||
Other invested assets, net | 4 | (3) | (2) | ||||||||||||||||
Policy loans, net | 0 | 0 | 0 | ||||||||||||||||
Intercompany notes receivable | 63 | 82 | (211) | ||||||||||||||||
Capital contributions to subsidiaries | 0 | 0 | |||||||||||||||||
Payments for businesses purchased, net of cash acquired | 0 | 0 | |||||||||||||||||
Proceeds from sale of businesses, net of cash transferred | 0 | 0 | 0 | ||||||||||||||||
Cash used by investing activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) investing activities | 67 | 79 | (213) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Deposits to universal life and investment contracts | 0 | 0 | 0 | ||||||||||||||||
Withdrawals from universal life and investment contracts | 0 | 0 | 0 | ||||||||||||||||
Redemption and repurchase of non-recourse funding obligations | 0 | 0 | 0 | ||||||||||||||||
Proceeds from the issuance of long-term debt | 0 | 0 | 0 | ||||||||||||||||
Repayment and repurchase of long-term debt | 0 | 0 | 0 | ||||||||||||||||
Repayment of borrowings related to securitization entities | 0 | 0 | 0 | ||||||||||||||||
Intercompany notes payable | (63) | (82) | 211 | ||||||||||||||||
Return of capital to noncontrolling interests | 0 | 0 | |||||||||||||||||
Repurchase of subsidiary shares | 0 | 0 | |||||||||||||||||
Dividends paid to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Proceeds from the sale of subsidiary shares to noncontrolling interests | 0 | 0 | 0 | ||||||||||||||||
Other, net | 0 | 0 | 0 | ||||||||||||||||
Cash from financing activities-held for sale | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) financing activities | (63) | (82) | 211 | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||||||||||||||||
Net change in cash and cash equivalents | 0 | 0 | 0 | ||||||||||||||||
Cash and cash equivalents at beginning of period | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||||||||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | 0 | ||||||||||||||
Less cash and cash equivalents held for sale at end of period | 0 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. |
Schedule I Genworth Financia171
Schedule I Genworth Financial, Inc. Summary of Investments-Other than Investments in Related Parties (Detail) $ in Millions | Dec. 31, 2017USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | $ 68,067 | |
Fair value | 0 | |
Carrying value | 73,392 | |
Commercial mortgage loans | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 6,341 | |
Fair value | 0 | |
Carrying value | 6,341 | |
Restricted commercial mortgage loans related to securitization entities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 107 | |
Fair value | 0 | |
Carrying value | 107 | |
Policy Loans | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 1,786 | |
Fair value | 0 | |
Carrying value | 1,786 | |
Other invested assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 1,585 | [1] |
Fair value | 0 | [1] |
Carrying value | 1,813 | [1] |
Fixed maturity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 57,492 | |
Fair value | 62,525 | |
Carrying value | 62,525 | |
Fixed maturity securities | Bonds | U.S. government, agencies and authorities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 4,681 | |
Fair value | 5,548 | |
Carrying value | 5,548 | |
Fixed maturity securities | Bonds | State and Political Subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 2,678 | |
Fair value | 2,926 | |
Carrying value | 2,926 | |
Fixed maturity securities | Bonds | Non-U.S. government | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 2,147 | |
Fair value | 2,233 | |
Carrying value | 2,233 | |
Fixed maturity securities | Bonds | Public Utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 5,375 | |
Fair value | 6,015 | |
Carrying value | 6,015 | |
Fixed maturity securities | Bonds | All Other Corporate Bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 42,611 | |
Fair value | 45,803 | |
Carrying value | 45,803 | |
Equity Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amortized cost or cost | 756 | |
Fair value | 820 | |
Carrying value | $ 820 | |
[1] | The amount shown in the consolidated balance sheet for other invested assets differs from amortized cost or cost presented, as other invested assets include certain assets with a carrying amount that differs from amortized cost or cost. |
Schedule II Genworth Financi172
Schedule II Genworth Financial, Inc. (Parent Company Only) (Balance Sheets) (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Investments in subsidiaries | $ 0 | $ 0 | ||
Deferred tax asset | 1,420 | 1,590 | ||
Other assets | 453 | 673 | ||
Total assets | 105,297 | 104,658 | ||
Liabilities and stockholders' equity | ||||
Other liabilities | 1,910 | 2,916 | ||
Total liabilities | 89,969 | 90,191 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,977 | 11,962 | ||
Net unrealized investment gains (losses): | ||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 10 | 9 | ||
Net unrealized investment gains (losses) | 1,085 | 1,262 | $ 1,254 | $ 2,453 |
Derivatives qualifying as hedges | 2,065 | 2,085 | $ 2,045 | $ 2,070 |
Foreign currency translation and other adjustments | (123) | (253) | ||
Total accumulated other comprehensive income (loss) | 3,027 | 3,094 | ||
Retained earnings | 1,113 | 287 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 13,418 | 12,644 | ||
Total liabilities and equity | 105,297 | 104,658 | ||
Parent Company | ||||
Assets | ||||
Investments in subsidiaries | 13,561 | 12,730 | ||
Deferred tax asset | 27 | 28 | ||
Other assets | 3 | 9 | ||
Total assets | 13,591 | 12,767 | ||
Liabilities and stockholders' equity | ||||
Other liabilities | 41 | 39 | ||
Intercompany notes payable | 132 | 84 | ||
Total liabilities | 173 | 123 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock | 1 | 1 | ||
Additional paid-in capital | 11,977 | 11,962 | ||
Net unrealized investment gains (losses): | ||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | 1,075 | 1,253 | ||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 10 | 9 | ||
Net unrealized investment gains (losses) | 1,085 | 1,262 | ||
Derivatives qualifying as hedges | 2,065 | 2,085 | ||
Foreign currency translation and other adjustments | (123) | (253) | ||
Total accumulated other comprehensive income (loss) | 3,027 | 3,094 | ||
Retained earnings | 1,113 | 287 | ||
Treasury stock, at cost | (2,700) | (2,700) | ||
Total Genworth Financial, Inc.'s stockholders' equity | 13,418 | 12,644 | ||
Total liabilities and equity | $ 13,591 | $ 12,767 |
Schedule II Genworth Financi173
Schedule II Genworth Financial, Inc. (Parent Company Only) (Statements of Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Revenues: | |||||||||||||||||||
Net investment income | $ 3,200 | $ 3,159 | $ 3,138 | ||||||||||||||||
Total revenues | $ 1,686 | [1] | $ 2,215 | [1] | $ 2,223 | [1] | $ 2,171 | [1] | $ 2,198 | [2] | $ 2,150 | [2] | $ 2,236 | [2] | $ 1,785 | [2] | 8,295 | 8,369 | 8,548 |
Expenses: | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 1,022 | 1,273 | 1,309 | ||||||||||||||||
Interest expense | 284 | 337 | 419 | ||||||||||||||||
Loss before income taxes and equity in income (loss) of subsidiaries | 729 | 320 | (15) | ||||||||||||||||
Benefit from income taxes | 456 | (207) | 358 | (9) | |||||||||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | (9) | 0 | 0 | (4) | 15 | (21) | (19) | (9) | (29) | (407) | ||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 353 | [3] | $ 107 | [3] | $ 202 | [3] | $ 155 | [3] | $ (122) | $ (380) | $ 172 | $ 53 | 817 | (277) | (615) | ||||
Parent Company | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Net investment income | (3) | (3) | (3) | ||||||||||||||||
Total revenues | (3) | (3) | (3) | ||||||||||||||||
Expenses: | |||||||||||||||||||
Acquisition and operating expenses, net of deferrals | 57 | 153 | 32 | ||||||||||||||||
Interest expense | 1 | 1 | 0 | ||||||||||||||||
Total expenses | 58 | 154 | 32 | ||||||||||||||||
Loss before income taxes and equity in income (loss) of subsidiaries | (61) | (157) | (35) | ||||||||||||||||
Benefit from income taxes | 0 | (47) | (8) | ||||||||||||||||
Equity in income (loss) of subsidiaries | 878 | (166) | (579) | ||||||||||||||||
Loss from discontinued operations, net of taxes | 0 | (1) | (9) | ||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 817 | $ (277) | $ (615) | ||||||||||||||||
[1] | Our Australian mortgage insurance business completed a review of its premium earnings pattern in the fourth quarter of 2017 and recorded $468 million of lower earned premiums. The review indicated an observed and expected continuation of a longer duration between policy inception and first loss event. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016, which resulted in higher revenues of $6 million in our universal life insurance products. The updated assumptions reflected changes primarily to mortality experience in older age populations and modest updates related to long-term interest rates, lapses and other refinements. | ||||||||||||||||||
[3] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. |
Schedule II Genworth Financi174
Schedule II Genworth Financial, Inc. (Parent Company Only) (Statements of Comprehensive Income) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [2] | Sep. 30, 2016 | [2] | Jun. 30, 2016 | [2] | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 265 | $ 175 | $ 271 | $ 216 | $ (63) | $ (332) | $ 220 | $ 108 | $ 927 | $ (67) | $ (413) | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (187) | 6 | (1,209) | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | (9) | (4) | ||||||||||||||||
Derivatives qualifying as hedges | (20) | 40 | (25) | ||||||||||||||||
Foreign currency translation and other adjustments | 251 | 54 | (530) | ||||||||||||||||
Total other comprehensive income (loss) | 45 | 91 | (1,768) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | 750 | (193) | (2,075) | ||||||||||||||||
Parent Company | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 817 | (277) | (615) | ||||||||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||
Net unrealized gains (losses) on securities not other-than-temporarily impaired | (178) | 17 | (1,181) | ||||||||||||||||
Net unrealized gains (losses) on other-than-temporarily impaired securities | 1 | (9) | (4) | ||||||||||||||||
Derivatives qualifying as hedges | (20) | 40 | (25) | ||||||||||||||||
Foreign currency translation and other adjustments | 130 | 36 | (250) | ||||||||||||||||
Total other comprehensive income (loss) | (67) | 84 | (1,460) | ||||||||||||||||
Total comprehensive income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 750 | $ (193) | $ (2,075) | ||||||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. |
Schedule II Genworth Financi175
Schedule II Genworth Financial, Inc. (Parent Company Only) (Statements of Cash Flows) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Cash flows used by operating activities: | |||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | $ 265 | [1] | $ 175 | [1] | $ 271 | [1] | $ 216 | [1] | $ (63) | [2] | $ (332) | [2] | $ 220 | [2] | $ 108 | [2] | $ 927 | $ (67) | $ (413) |
Less loss from discontinued operations, net of taxes | 0 | $ 9 | $ 0 | 0 | 4 | $ (15) | $ 21 | 19 | 9 | 29 | 407 | ||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Deferred income taxes | (368) | 145 | (196) | ||||||||||||||||
Stock-based compensation expense | 42 | 32 | 16 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 30 | (358) | (106) | ||||||||||||||||
Current tax liabilities | (4) | 32 | (15) | ||||||||||||||||
Other liabilities and other policy-related balances | 368 | 685 | 293 | ||||||||||||||||
Net cash from operating activities | 2,554 | 1,852 | 1,591 | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Intercompany notes receivable | 0 | 0 | 0 | ||||||||||||||||
Capital contributions paid to subsidiaries | 0 | 0 | |||||||||||||||||
Net cash from (used by) investing activities | (759) | (2,120) | (404) | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Other, net | (54) | (44) | (98) | ||||||||||||||||
Intercompany notes payable | 0 | 0 | 0 | ||||||||||||||||
Net cash from (used by) financing activities | (1,768) | (2,931) | (42) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 64 | (10) | (70) | ||||||||||||||||
Cash and cash equivalents at beginning of year | 2,784 | 5,965 | 2,784 | 5,965 | |||||||||||||||
Cash and cash equivalents at end of year | 2,875 | 2,784 | 2,875 | 2,784 | 5,965 | ||||||||||||||
Parent Company | |||||||||||||||||||
Cash flows used by operating activities: | |||||||||||||||||||
Net income (loss) available to Genworth Financial, Inc.'s common stockholders | 817 | (277) | (615) | ||||||||||||||||
Less loss from discontinued operations, net of taxes | 0 | 1 | 9 | ||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from (used by) operating activities: | |||||||||||||||||||
Equity in (income) loss from subsidiaries | (878) | 166 | 579 | ||||||||||||||||
Deferred income taxes | 10 | (6) | (4) | ||||||||||||||||
Stock-based compensation expense | 30 | 23 | 21 | ||||||||||||||||
Change in certain assets and liabilities: | |||||||||||||||||||
Accrued investment income and other assets | 5 | (9) | 3 | ||||||||||||||||
Current tax liabilities | 23 | 0 | (3) | ||||||||||||||||
Other liabilities and other policy-related balances | (35) | 20 | 2 | ||||||||||||||||
Net cash from operating activities | (28) | (82) | (8) | ||||||||||||||||
Cash flows from (used by) investing activities: | |||||||||||||||||||
Intercompany notes receivable | 0 | 0 | 9 | ||||||||||||||||
Capital contributions paid to subsidiaries | (12) | 0 | 0 | ||||||||||||||||
Payments for business purchased | (7) | 0 | 0 | ||||||||||||||||
Net cash from (used by) investing activities | (19) | 0 | 9 | ||||||||||||||||
Cash flows from (used by) financing activities: | |||||||||||||||||||
Other, net | (1) | 0 | (3) | ||||||||||||||||
Intercompany notes payable | 48 | 82 | 2 | ||||||||||||||||
Net cash from (used by) financing activities | 47 | 82 | (1) | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||||||||||||||||
Cash and cash equivalents at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||||||||
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||
[1] | In the fourth quarter of 2017, we recorded $456 million of net tax benefits primarily from changes in U.S. tax legislation under the TCJA and other items. These tax benefits were mostly related to a $258 million release of a valuation allowance recorded in 2016, the impact from changes in the federal tax rate and the release of shareholder liability taxes, partially offset by higher transition taxes. Our valuation allowance was reduced by $258 million principally related to the TCJA and from improvements in business performance, mostly in our U.S. mortgage insurance business, as well as lower operating earnings volatility in our U.S. life insurance businesses. Our Australian mortgage insurance business completed a review of the premium earnings pattern, as described above, which resulted in an unfavorable adjustment of $152 million, net of taxes and noncontrolling interests. A portion of this loss, $11 million, was recorded in Corporate and Other activities in connection with our allocation methodology for income taxes. We also completed our annual review of assumptions in our life insurance business in the fourth quarter of 2017, as described above, which resulted in a $74 million unfavorable adjustment, net of taxes, in our universal and term universal life insurance products. | ||||||||||||||||||
[2] | Our life insurance business completed its annual review of assumptions in the fourth quarter of 2016 as described above, which resulted in $196 million, net of taxes, of charges in our universal and term universal life insurance products. |
Schedule II Genworth Financi176
Schedule II Genworth Financial, Inc. (Parent Company Only) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2017 | Oct. 21, 2016 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting for Stock Compensation | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Deferred tax asset | $ 9 | |||||
Parent Company | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Deferred tax assets related to tax elections | $ 27 | $ 28 | ||||
Current income tax payable | $ 23 | 23 | 0 | |||
Net cash received for taxes | 32 | $ 41 | $ 1 | |||
Deferred tax asset | $ 18 | |||||
TCJA, impact from change in tax rate, percent | 21.00% | |||||
Parent Company | Accounting for Stock Compensation | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Deferred tax asset | $ 9 | |||||
China Oceanwide Holdings Group Co., Ltd. | Definitive Acquisition Agreement | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Total transaction value to acquire all of our outstanding common stock | $ 2,700 | |||||
Per share amount to acquire all of our outstanding common stock | $ 5.43 |
Schedule III Genworth Financ177
Schedule III Genworth Financial, Inc. Supplemental Insurance Information (Schedule of Supplemental Insurance Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | $ 2,329 | $ 3,571 | |
Future Policy Benefits | 38,472 | 37,063 | |
Policyholder Account Balances | 24,195 | 25,662 | |
Liability for Policy and Contract Claims | 9,594 | 9,256 | |
Unearned Premiums | 3,967 | 3,378 | |
Premium Revenue | 4,004 | 4,160 | $ 4,579 |
Net Investment Income | 3,200 | 3,159 | 3,138 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 5,825 | 5,941 | 5,869 |
Amortization of Deferred Acquisition Costs | 342 | 481 | 902 |
Other Operating Expenses | 1,399 | 1,627 | 1,792 |
Premiums Written | 4,406 | 4,208 | 4,794 |
U.S. Mortgage Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 28 | 28 | |
Future Policy Benefits | 0 | 0 | |
Policyholder Account Balances | 0 | 0 | |
Liability for Policy and Contract Claims | 455 | 635 | |
Unearned Premiums | 404 | 342 | |
Premium Revenue | 695 | 660 | 602 |
Net Investment Income | 73 | 63 | 58 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 107 | 160 | 222 |
Amortization of Deferred Acquisition Costs | 10 | 9 | 7 |
Other Operating Expenses | 169 | 170 | 158 |
Premiums Written | 757 | 744 | 682 |
Canada Mortgage Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 131 | 121 | |
Future Policy Benefits | 0 | 0 | |
Policyholder Account Balances | 0 | 0 | |
Liability for Policy and Contract Claims | 87 | 112 | |
Unearned Premiums | 1,700 | 1,595 | |
Premium Revenue | 519 | 481 | 466 |
Net Investment Income | 132 | 126 | 130 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 54 | 104 | 96 |
Amortization of Deferred Acquisition Costs | 41 | 37 | 35 |
Other Operating Expenses | 100 | 97 | 85 |
Premiums Written | 509 | 576 | 641 |
Australia Mortgage Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 49 | 31 | |
Future Policy Benefits | 0 | 0 | |
Policyholder Account Balances | 0 | 0 | |
Liability for Policy and Contract Claims | 218 | 211 | |
Unearned Premiums | 1,299 | 850 | |
Premium Revenue | (140) | 337 | 357 |
Net Investment Income | 75 | 94 | 114 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 109 | 113 | 81 |
Amortization of Deferred Acquisition Costs | (5) | 13 | 16 |
Other Operating Expenses | 105 | 107 | 110 |
Premiums Written | 231 | 231 | 328 |
U.S. Life Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 1,908 | 3,149 | |
Future Policy Benefits | 38,469 | 37,060 | |
Policyholder Account Balances | 21,138 | 22,285 | |
Liability for Policy and Contract Claims | 8,816 | 8,276 | |
Unearned Premiums | 560 | 586 | |
Premium Revenue | 2,922 | 2,670 | 3,128 |
Net Investment Income | 2,755 | 2,726 | 2,701 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 5,386 | 5,387 | 5,288 |
Amortization of Deferred Acquisition Costs | 272 | 394 | 816 |
Other Operating Expenses | 641 | 695 | 832 |
Premiums Written | 2,902 | 2,644 | 3,115 |
Runoff | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 213 | 242 | |
Future Policy Benefits | 3 | 3 | |
Policyholder Account Balances | 3,057 | 3,377 | |
Liability for Policy and Contract Claims | 11 | 15 | |
Unearned Premiums | 4 | 5 | |
Premium Revenue | 0 | 0 | 1 |
Net Investment Income | 160 | 147 | 138 |
Interest Credited and Benefits and Other Changes in Policy Reserves | 166 | 173 | 168 |
Amortization of Deferred Acquisition Costs | 24 | 28 | 28 |
Other Operating Expenses | 63 | 70 | 78 |
Premiums Written | 0 | 0 | 1 |
Corporate and Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Acquisition Costs | 0 | 0 | |
Future Policy Benefits | 0 | 0 | |
Policyholder Account Balances | 0 | 0 | |
Liability for Policy and Contract Claims | 7 | 7 | |
Unearned Premiums | 0 | 0 | |
Premium Revenue | 8 | 12 | 25 |
Net Investment Income | 5 | 3 | (3) |
Interest Credited and Benefits and Other Changes in Policy Reserves | 3 | 4 | 14 |
Amortization of Deferred Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 321 | 488 | 529 |
Premiums Written | $ 7 | $ 13 | $ 27 |